[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1401 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1401

  To amend the Federal Reserve Act to alter the terms and conditions 
applicable to members of the Board of Governors of the Federal Reserve 
                    System, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 6, 2011

  Ms. Kaptur introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To amend the Federal Reserve Act to alter the terms and conditions 
applicable to members of the Board of Governors of the Federal Reserve 
                    System, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Democratizing the Federal Reserve 
System Act of 2011''.

SEC. 2. AMENDMENTS TO FEDERAL RESERVE ACT.

    (a) Reduction in Length of Terms.--
            (1) The first sentence of the first undesignated paragraph 
        of section 10 of the Federal Reserve Act (12 U.S.C. 241) is 
        amended by striking ``fourteen years'' and inserting ``7 
        years''.
            (2) The 2nd sentence of the 2nd undesignated paragraph of 
        section 10 of the Federal Reserve Act (12 U.S.C. 242) is 
        amended by striking ``fourteen years'' the 2nd place such term 
        appears and inserting ``7 years''.
            (3) The ultimate sentence of the 2nd undesignated paragraph 
        of section 10 of the Federal Reserve Act (12 U.S.C. 242) is 
        amended by striking ``fourteen years'' and inserting ``7 
        years''.
    (b) Increase in Post-Service Restriction.--The first sentence of 
the 2nd undesignated paragraph of section 10 of the Federal Reserve Act 
(12 U.S.C. 242) is amended by striking ``two years'' and inserting ``4 
years''.
    (c) Ongoing Service on Board Requirement for Chairman and Vice 
Chairman.--
            (1) Chairman.--The 3rd sentence of the 2nd undesignated 
        paragraph of section 10 of the Federal Reserve Act (12 U.S.C. 
        242) is amended by striking ``1 shall be designated'' and 
        inserting ``a member who is currently serving on the Board and 
        has already served at least 2 consecutive years on the Board 
        shall be designated''.
            (2) Vice chairman.--The 3rd sentence of the 2nd 
        undesignated paragraph of section 10 of the Federal Reserve Act 
        (12 U.S.C. 242) is amended by striking ``2 shall be 
        designated'' and inserting ``2 members who are currently 
        serving on the Board and have already served at least 1 year on 
        the Board, shall be designated''.
    (d) Limitation on Continuing Vacancies.--The 4th undesignated 
paragraph of section 10 of the Federal Reserve Act (12 U.S.C. 244) is 
amended--
            (1) in the ultimate sentence, by inserting ``, before the 
        end of the 90-day period beginning on the date such vacancy 
        occurs,'' after ``shall be appointed''; and
            (2) by adding at the end the following new sentences: ``If, 
        as of 30 days after the end of such 90-day period, no 
        nomination has been made by the President, the chairperson and 
        ranking Member of the Committees of the House of 
        Representatives and the Senate which have jurisdiction over 
        this Act, under the rules of the respective House, the Speaker 
        and the minority leader of the House of Representatives, and 
        the majority leader and minority leader of the Senate shall 
        jointly create a list of 5 candidates in rank order to present 
        to the President for consideration for the vacancy. Not later 
        than 30 days after the transmittal of such list to the 
        President, the President shall nominate a person, whether from 
        such list or another person, to fill the vacancy.''.
    (e) Amendments Relating to Federal Open Market Committee.--
            (1) Increase in federal reserve bank representation.--The 
        1st sentence of section 12A(a) of the Federal Reserve Act (12 
        U.S.C. 263) is amended by striking ``five'' and inserting 
        ``6''.
            (2) Distribution of federal reserve bank membership.--
        Section 12A(a) of the Federal Reserve Act (12 U.S.C. 263) is 
        amended by striking the 2nd sentence and inserting the 
        following: ``Such representatives shall be presidents or first 
        vice presidents of Federal reserve banks and shall be elected 
        annually as follows: In even numbered calendar years, from 
        among the presidents and first vice presidents of the Federal 
        Reserve Banks of Boston, Kansas City, Philadelphia, San 
        Francisco, Richmond, and St. Louis and in odd numbered calendar 
        years from among the presidents and first vice presidents of 
        the Federal Reserve Banks of New York, Dallas, Chicago, 
        Cleveland, Atlanta, and Minneapolis.''.
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