I don't recall the particular circumstances.
I do recall reading that W was just too much of a nice guy to fight the situation.
Something about a re-appointment by Billy BlowJob Clintoon just prior to his departure, out of spite, to allow her to continue on through a Republican administration.
Her actual term ending was in question, putting the re-appointment in a grey area and there was a ruling by an appeals court that effectively allowed her to stay for another four years.
W has kept her pretty much under control for the four years, pointedly ignoring her on more than one occasion, according to some insiders.
I also recall she was pretty miffed about not getting an invitation to the Inaugural Ball, too and was excluded from some other minor functions that one would expect a person of her position to be included at.
All in all, she is nothing but a minor functionary, holding a position in a bureaucratic do-nothing "commission", created by Reagan, if memory serves, for no other reason than to shut a few select big mouths up.
Currently, her management (or mismanagement) of the 9-million dollar annual budget of the commission is being looked at.
Nasty woman probably stole it all.
Isn't she the one who rides in a limo to/from work every day, yet lives a couple of blocks from work?