[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2335 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  1st Session
                                S. 2335

 To establish within the Department of the Treasury the Office of the 
     Special Inspector General for Financial Regulatory Abuses and 
                  Misconduct, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 18, 2023

 Mr. Vance (for himself, Ms. Lummis, and Mr. Marshall) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To establish within the Department of the Treasury the Office of the 
     Special Inspector General for Financial Regulatory Abuses and 
                  Misconduct, 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 ``Financial Regulatory Accountability 
Act of 2023''.

SEC. 2. SPECIAL INSPECTOR GENERAL FOR FINANCIAL REGULATORY ABUSES AND 
              MISCONDUCT.

    (a) Definitions.--In this section:
            (1) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs of the Senate;
                    (B) the Subcommittee on Financial Services and 
                General Government of the Committee on Appropriations 
                of the Senate;
                    (C) the Committee on Financial Services of the 
                House of Representatives; and
                    (D) the Subcommittee on Financial Services and 
                General Government of the Committee on Appropriations 
                of the House of Representatives.
            (2) Covered agencies.--The term ``covered agencies'' 
        means--
                    (A) the Securities and Exchange Commission;
                    (B) the Board of Governors of the Federal Reserve 
                System;
                    (C) the Office of the Comptroller of the Currency;
                    (D) the Federal Deposit Insurance Corporation;
                    (E) the Commodity Futures Trading Commission;
                    (F) the Federal Housing Finance Agency;
                    (G) the Bureau of Consumer Financial Protection; 
                and
                    (H) the National Credit Union Administration.
    (b) Office of Inspector General.--There is hereby established 
within the Department of the Treasury the Office of the Special 
Inspector General for Financial Regulatory Abuses and Misconduct.
    (c) Appointment of Inspector General; Removal; Basic Pay.--
            (1) In general.--The head of the Office of the Special 
        Inspector General for Financial Regulatory Abuses and 
        Misconduct shall be the Special Inspector General for Financial 
        Regulatory Abuses and Misconduct (referred to in this section 
        as the ``Special Inspector General''), who shall be appointed 
        by the President, by and with the advice and consent of the 
        Senate.
            (2) Nomination.--The nomination of the Special Inspector 
        General shall be made on the basis of integrity and 
        demonstrated familiarity with the financial sector and 
        industry, in addition to an ability in accounting, auditing, 
        financial analysis, law, management analysis, securities 
        regulation, prudential banking regulation, derivatives 
        regulation, public administration, or investigations.
            (3) Removal.--The Special Inspector General shall be 
        removable from office in accordance with the provisions of 
        section 403(b) of title 5, United States Code.
            (4) Basic pay.--The annual rate of basic pay of the Special 
        Inspector General shall be the annual rate of basic pay for an 
        Inspector General under section 403(e) of title 5, United 
        States Code.
    (d) Duties.--
            (1) In general.--It shall be the duty of the Special 
        Inspector General to, in accordance with section 404(b)(1) of 
        title 5, United States Code--
                    (A) receive, review, and investigate allegations 
                from entities regulated by the covered agencies 
                regarding supervisory, regulatory, and examination 
                abuses and misconduct at any of the covered agencies 
                with respect to the industry overseen by the applicable 
                covered agency, including any ideological bias 
                demonstrated by the covered agency or any employee of 
                the covered agency; and
                    (B) make recommendations to the applicable covered 
                agency and to the appropriate committees of Congress 
                regarding--
                            (i) measures that the covered agency should 
                        take to remedy any abuses or misconduct 
                        described in subparagraph (A); and
                            (ii) any employee of the covered agency 
                        that the Special Inspector General determines, 
                        after a review or investigation described in 
                        subparagraph (A), should face disciplinary 
                        action (including removal) as a result of 
                        abuses or misconduct described in that 
                        subparagraph.
            (2) Maintenance of systems.--The Special Inspector General 
        shall establish, maintain, and oversee such systems, 
        procedures, and controls as the Special Inspector General 
        considers appropriate to discharge the duties of the Special 
        Inspector General under paragraph (1).
            (3) Additional duties and responsibilities.--In addition to 
        the duties described in paragraphs (1) and (2), the Special 
        Inspector General shall also have the duties and 
        responsibilities of inspectors general under chapter 4 of title 
        5, United States Code.
            (4) Confidentiality of information.--The Special Inspector 
        General shall maintain the confidentiality of the identity of 
        any person, employing entity, or regulated entity submitting 
        information to the Special Inspector General for the purposes 
        of carrying out the duties of the Special Inspector General 
        under this section, including in any report submitted under 
        subsection (g).
    (e) Powers and Authorities.--
            (1) In general.--In carrying out the duties of the Special 
        Inspector General under subsection (d), the Special Inspector 
        General shall have the authorities provided in section 406 of 
        title 5, United States Code.
            (2) Treatment of office.--The Office of the Special 
        Inspector General shall be considered to be an office described 
        in section 406(f)(3) of title 5, United States Code, and shall 
        be exempt from an initial determination by the Attorney General 
        under section 406(f)(2) of that title.
    (f) Personnel, Facilities, and Other Resources.--
            (1) Appointment of officers and employees.--
                    (A) In general.--The Special Inspector General may 
                select, appoint, and employ such officers and employees 
                as may be necessary for carrying out the duties of the 
                Special Inspector General.
                    (B) Status.--The positions to which officers and 
                employees are appointed under subparagraph (A) shall be 
                positions in schedule C of subpart C of part 213 of 
                title 5, Code of Federal Regulations, or any successor 
                regulations.
            (2) Experts and consultants.--The Special Inspector General 
        may obtain services as authorized under section 3109 of title 
        5, United States Code, at daily rates not to exceed the 
        equivalent rate prescribed for grade GS-15 of the General 
        Schedule by section 5332 of that title.
            (3) Contracts.--The Special Inspector General may enter 
        into contracts and other arrangements for audits, studies, 
        analyses, and other services with public agencies and with 
        private persons, and make such payments as may be necessary to 
        carry out the duties of the Special Inspector General.
            (4) Requests for information.--
                    (A) In general.--Upon request of the Special 
                Inspector General for information or assistance from 
                any department, agency, or other entity of the Federal 
                Government, including from any covered agency, the head 
                of that department, agency, or entity shall, to the 
                extent practicable and not in contravention of any 
                existing law, furnish that information or assistance to 
                the Special Inspector General, or an authorized 
                designee.
                    (B) Refusal to provide requested information.--
                Whenever information or assistance requested by the 
                Special Inspector General is, in the judgment of the 
                Special Inspector General, unreasonably refused or not 
                provided, the Special Inspector General shall report 
                the circumstances to the appropriate committees of 
                Congress without delay.
                    (C) Congressional access.--The Special Inspector 
                General may provide any record or other piece of 
                information obtained under this paragraph to the 
                appropriate committees of Congress.
    (g) Reports.--
            (1) Quarterly reports.--
                    (A) In general.--Not later than 60 days after the 
                date on which the Special Inspector General is 
                confirmed, and once every calendar quarter thereafter, 
                the Special Inspector General shall submit to the 
                appropriate committees of Congress a report summarizing 
                the activities of the Special Inspector General during 
                the 3-month period ending on the date on which the 
                Special Inspector General submits the report.
                    (B) Contents.--Each report submitted under 
                subparagraph (A) shall include, for the period covered 
                by the report, the following:
                            (i) A general description of the 
                        allegations received and reviewed by the 
                        Special Inspector General under subsection 
                        (d)(1)(A).
                            (ii) Recommendations of the Special 
                        Inspector General regarding reforms that the 
                        Special Inspector General believes should be 
                        undertaken with respect to the authority of the 
                        Special Inspector General and matters within 
                        the authority of the Special Inspector General 
                        to review and investigate, including the 
                        authority described in subsection (d)(1)(B).
                            (iii) For a covered agency with respect to 
                        which an allegation submitted under this 
                        section applies, the steps that the covered 
                        agency has taken, and has yet to take, to 
                        remedy the issues outlined in the allegation.
                            (iv) Data regarding the number of 
                        allegations received and reviewed by the 
                        Special Inspector General under this section 
                        that document legitimate acts of abuse or 
                        misconduct, as determined by the Special 
                        Inspector General, which shall--
                                    (I) be disaggregated by the number 
                                of acts of abuse or misconduct 
                                committed by each covered agency; and
                                    (II) contain a separate provision 
                                listing the number of those acts that 
                                relate to ideological bias, which shall 
                                be disaggregated as described in 
                                subclause (I).
                            (v) Commentary by the Special Inspector 
                        General regarding the level of cooperation by 
                        each covered agency with respect to reviews and 
                        investigations performed by the Special 
                        Inspector General, including, with respect to 
                        each covered agency, whether the covered agency 
                        has implemented recommendations made by the 
                        Special Inspector General and whether the 
                        covered agency has provided information or 
                        access requested by the Special Inspector 
                        General.
            (2) Rule of construction.--Nothing in this subsection may 
        be construed to authorize the public disclosure of information 
        that is--
                    (A) specifically prohibited from disclosure by any 
                other provision of law;
                    (B) specifically required by Executive order to be 
                protected from disclosure in the interest of national 
                defense or national security or in the conduct of 
                foreign affairs; or
                    (C) a part of an ongoing criminal investigation.
    (h) Funding.--There are authorized to be appropriated $25,000,000 
to carry out this section, which shall remain available until expended.
    (i) Council of the Inspectors General on Integrity and 
Efficiency.--The Special Inspector General shall be a member of the 
Council of the Inspectors General on Integrity and Efficiency 
established under section 424 of title 5, United States Code.
    (j) Corrective Responses to Audit Problems.--A covered agency 
shall--
            (1) take action to address deficiencies identified by a 
        report or investigation of the Special Inspector General; or
            (2) with respect to a deficiency identified under paragraph 
        (1), certify to the appropriate committees of Congress that no 
        action is necessary or appropriate.
    (k) Rule of Construction.--Nothing in this section may be construed 
as limiting the authority of the Inspector General of the Federal 
Deposit Insurance Corporation, the Inspector General of the Federal 
Housing Finance Agency, or the Inspector General of the National Credit 
Union Administration.

SEC. 3. LIMITATION ON REGULATORY AUTHORITY.

    (a) Definitions.--In this section:
            (1) Covered action.--The term ``covered action'' means--
                    (A) the initiation by a covered agency of an 
                enforcement action, including the issuance of a cease 
                and desist order; or
                    (B) the issuance by a covered agency of a matter 
                requiring attention, a matter requiring immediate 
                attention, or a matter requiring board attention with 
                respect to a supervisory activity conducted by the 
                covered agency.
            (2) Covered agencies.--The term ``covered agencies'' has 
        the meaning given the term in section 2(a).
    (b) Prohibition.--Notwithstanding any other provision of law or 
regulation, no covered agency may take any covered action against an 
entity supervised by the covered agency, or require such an entity to 
take any action, based on considerations of reputational risk.
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