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Swc. 3. Other officers.--There are hereby established, in the Department, the offices of (P). Surgeon General of the Public Health Service, (2) Commissioner of Education, and (3) Commissioner of Social Security. The Surgeon General shall be the head of the Public Health Service and shall perform such other duties concerning health as may be required by law or as the Secretary may prescribe pursuant to law, The Commissioner of Education shall be the head of the Office of Education and shall perform such other duties concerning education as may be required by law or as the Secretary may prescribe pursuant to law. The Commissioner of Social Security shall be the head of the Social Security Administration and shall perform such other duties concerning social security and public we'fare as may be required by law or as the Secretary may prescribe pursuant to law There are hereby transferred to the Surgeon General and to the Commissioner of Education, provided for in this section, all of the functions of the heretofore existing Surgeon General of the Public Health Service and all of the functions of the heretofore existing Commissioner of Education, respectively. The Surgeon General, the Commissioner of Education, and the Commissioner of Social Security shall each report directly to the Secretary; have professional qualifications, experience, and training appropriate to the duties of his office; be appointed by the President, by and with the advice and consent of the Senate; and (except in the case of a Surgeon General who is a member of the commissioned Regular Corps of the Public Health Service) receive compensation at the rate of $14,000 per annum. The Surgeon General shall hold office for a term of four years, The Surgeon General may be appointed from the commissioned Regular Corps of the Public Health Service, and if so appointed (1) he shall not cease to be a member of such corps by reason of his appointment as Surgeon General, and (2) provisions of law applicable to the heretofore existing office of Surgeon General of the Public Health Service, including those with respect to pay and allowances, shall be applicable to him.

Sec. 6. Administrative services.—In the interest of economy and efficiency the Secretary may from time to time establish central administrative services in the Helds of procurement, budgeting, accounting, library, legal, and other services and activities common to the several agencies of the Department; and the Secrefary may effect such transfers within the Department of the personnel employed, the property and records used or held, and the funds available for use in connection with such administrative service activities as he may deem necessary for the conduct of any services so established: Provided, however, That nothing contamed in this section shall be deemed to authorize the Secretary to transfer or Fomove from the control of the Surgeon General, the Commissioner of Education, or the Commissioner of Social Security any professional or substantive functions vested in them respectively under the provisions of this reorganization plan or of law hereafter enacted.

Sec. 7. Abolitions.-There are hereby abolished (1) the Federal Security Agency (exclusive of the agencies transferred by the provisions of section 1 (b) of this Organization plan), (2) the office of Federal Security Administrator, (3) the office of Assistant Federal Security Administrator, (4) the two offices of assistant heads of the Federal Security Agency provided for in section 5 of Reorganization Plan No. 2 of 1946 (60 Stat. 1095), (5) the heretofore existing office of Surgeon General of the Public Health Service, and (6) the heretofore existing office of Commissioner of Education.

Sre. 8. Interim officers.-The President may designate and empower any person who is an officer of the Federal Security Agency immediately prior to the taking effect of the provisions of this reorganization plan to perform for a period not exceeding 60 days the functions of any office provided for by sections 2, 3, 4, or a of this reorganization plan pending the appointment of the first person appointed to such office. While so performing said functions any person designated hereunder shall have the title of the office concerned, with the prefix "Acting," and, if the President so directs, receive the compensation of such office. No person designated under this section shall by reason of such designation forfeit his rights with respect to his office held immediately prior to the taking effect of the proVisions of this reorganization plan.

[S. Res. 302, 81st Cong. 2d sess.]
RESOLUTION

Resolved, That the Senate does not favor the Reorganization Plan Numbered 27 of 1950 transmitted to Congress by the President on May 31, 1950.

SENATE COMMITTEE ON EXPENDITURES IN THE EXECUTIVE DEPARTMENTS,

June 3, 1950.

Staff Memorandum No. 81-2-62
Subject: Reorganization Plan No. 27 of 1950-To establish a Department of
Health, Education, and Security.

The President on May 31, 1950, submitted to the Congress Reorganization Plan No. 27 of 1950 which provides for the establishment of a new department of Government to be known as the Department of Health, Education, and Security

PROVISIONS OF PLAN NO. 27

To the Department would be transferred all components of the present Federal Security Agency, which would be abolished. Two of the three present major components of FSA, the Public Health Service and the Office of Education, would retain their independent statutory authority within the new department. Their relationship to the Secretary of Health, Education and Security would be the same as that to the Federal Security Administrator at the present time. Functions of the third major component, the Social Security Administration, now vested in the Federal Security Administrator, would be lodged in the new Secretary. No new functions or programs, other than those presently incorporated in the Federal Security Agency, are provided for by the plan.

In addition to the Secretary, the plan provides for an Under Secretary, an Assistant Secretary, an Administrative Assistant Secretary, the Office of Surgeon General, Commissioner of Education, and Commissioner of Social Security, all of whom would be appointed by the President subject to approval by the Senate, except the Administrative Assistant Secretary who would be appointed by the Secretary from the classified civil service, subject to the President's approval. The plan provides that the Surgeon General, Commissioner of Education, and Commissioner of Social Security shall have professional qualifications, experience, and training appropriate to their duties.

All present functions of the Federal Security Administrator are transferred to the Secretary. The plan provides that the Surgeon General shall be the head of the Public Health Service, the Commissioner of Education shall be head of the Office of Education, and the Commissioner of Social Security shall be head of the Social Security Administration. Each officer shall perform such other duties concerning his respective field as may be required by law or as the Secretary may prescribe pursuant to law. All functions of the heretofore existing Surgeon General are transferred to the new Surgeon General and all functions of the heretofore existing Commissioner of Education to the new Commissioner of Education. No transfer of functions of the heretofore existing Commissioner of Social Security is made since it appears that they would be lodged directly in the Secretary himself, on the same basis as they are in the Federal Security Agency Administrator at present. The Secretary is given authority to redelegate functions vested directly in him to any department agency, officer, or employee.

The Secretary is authorized to establish central administrative services for procurement, budgeting, accounting, and other activities common to the Department's several components, provided, however, that such authority does not permit of the transfer from the Surgeon General, the Commissioner of Education, or the Commissioner of Social Security professional or substantive functions vested in them by statute.

The President is authorized to designate any person who was an officer of the Federal Security Agency immediately prior to the taking effect of Reorganization Plan No. 27 to perform the functions of any office provided for by section 2, 3, 4, or 5 of the plan for 60 days, pending the appointment of the first person to be appointed to such office.

COMPARISON WITH REORGANIZATION PLAN NO. 1 OF 1949-TO ESTABLISH A DEPARTMENT OF WELFARE

The major difference between Reorganization Plan No. 1 of 1949 (creating a Department of Welfare), and Reorganization Plan No. 27 of 1950 is that the original plan centered all statutory authority for the proposed Department in the Secretary, while Reorganization Plan No. 27 of 1950 vests statutory authority in the Secretary for only those functions presently vested in the Federal Security Administrator, and retains the independent statutory authority of the Public Health Service and of the Office of Education.

1949 also provided for the appointment of three Assistant Secrewhereas plan No. 27 of 1950 provides for an Under Secretary, coenazy, and an Administrative Assistant Secretary, the latter to sauf services as recommended by the Commission on Organization scoate sich of the Government in its report on Social Security, end bican Us Plan No. 27 of 1950 also prescribes professional De Commissioner of Education and the Commissioner of which requirement was not contained in plan No. 1 of 1949. ALIYOR WITH RECOMMENDATIONS OF THE HOOVER COMMISSION

conforms in general to the Hoover Commission recommendations aachment of a cabinet department to administer welfare functions igortant deviations: The Hoover Commission recommended that Socid Security Administration, the Office of Education, and the Bureau ATRIS Crow in Department of Interior) be incorporated in a new Rene of Social Security and Education; and, (b) the Public Health Service Swed, along with all other major Government medical activities, in a Cited Medical Administration, an independent agency which the 2. Good roommended be created. Although legislation has been introduced soca sach & United Medical Administration, no action has been taken on ves by the Committee on Labor and Public Welfare, to which it

Toover Commission also recommended that the Secretary be given full ANY 42rity for the department he would head. Other major recommendaSade by the Hoover Commission, such as the transfer of the Bureau of Security, the Bureau of Unemployment Compensation and the Cover Compensation Appeals Board from the Federal Security Agency to evement of Labor have been effectuated by the Congress. (Reorganiza157 No. 2 of 1949 and Reorganization Plan No. 19 of 1950, respectively.)

CONCLUSION

organization Plan No. 27 of 1950, as the President pointed out in his acyeng message, is designed to meet the major objections to Reorganization Xst of 1949, disapproved by the Senate. It adheres generally to the sach incorporated in S. 140 (the Taft-Fulbright bill), reported favorably by this ce in the Eightieth Congress, which provided Under Secretaries for Health, rom, and Welfare with independent statutory authority, and prescribed the coral organisation of these separate bureaus, including transfer of applicable Coments thereto, with the functions thereof vested in the appropriate Under

In its report to the Senate on this bill (S. 140), on June 6, 1947, the Committee on Expenditures in the Executive Departments commented in Rept. No. 242, 80th Cong.), as follows:

The primary purpose of the legislation is to elevate the existing health, tion, and public-welfare agencies into a departmental status. In order that urpose be made clear and to insure that no additional authority is granted Che new department under the provisions of the act, the bill was amended to de that it does not give the new department any functions other than those Sarized by previous legislation affecting the Federal Security Agency or any of omponents thereof.

Therefore, it should be clearly understood that the purpose of the bill reported %swer in no way adds authority or contemplates additional appropriations in the Apment of services and facilities in the fields of activity as outlined."

Pat No. 27, in the opinion of the staff, adheres to these major purposes, and exhaustive hearings were conducted by the committee on S. 140 in the Creth Congress, and Reorganization Plan No. 1 of 1949, each of which had as por objective the establishment of a department for Federal health, educaand welfare activities, further hearings would be repetitious and unnecessary, whether or not a resolution of disapproval is filed.

Approved.

MILES SCULL, Jr.,

Professional Staff Member.

WALTER L. REYNOLDS,

Staff Director.

STAFF MEMORANDUM No. 81-2-67, SENATE COMMITTEE ON EXPENDITURES IN THE EXECUTIVE DEPARTMENTS, JUNE 23, 1950

1

Comparison of (A) Reorganization Plan No. 1 of 1949, to establish a Department of Welfare; (B) Reorganization Plan No. 27 of 1950, to establish a Department of Health, Education, and Security; 2 (C) S. 2060 (substitute) (81st Cong., 1st sess.), to establish a Department of Health, Education, and Security 3

Plan No. 1 of 1949

Sec. 1: Elevates the Federal Security Agency to the status of an executive department of Government to be known as Department of Welfare.

Sec. 2: (a) Creates a Secretary of Welfare to be appointed by the President subject to confirmation by the Senate at compensation of $15,000 per annum, or prevailing compensation for Cabinet members;

(b) Consolidates all functions of the Department, of all constituent agencies thereof and of the Federal Security Administrator in the Secretary of Welfare;

(c) Authorizes Secretary to delegate to any officer, employee or bureau of Department any function except that of promulgating regulations which may be delegated only to Secretary or Assistant Secretary.

Sec. 3: Creates Under Secretary and 3 Assistant Secretaries to be appointed by the President subject to confirmation by the Senate, each of whom shall perform such duties as Secretary shall direct.

Sec. 4: Abolishes Office of Federal Security Administrator, Assistant Federal Security Administrator, and 2 assistant heads of Federal Security Agency.

See footnotes at end of table, p. 8.

Plan No. 27 of 1950

Sec. 1: (a) Establishes a Department of Health, Education, and Security as an executive department;

(b) Transfers all agencies, functions, appropriations, personnel, property, records, etc., of the present Federal Security Agency to the Department.

Sec. 2: (a) Creates a Secretary of Health, Education, and Security to be appointed by the President with the consent of the Senate at the prevailing compensation for Cabinet members; (b) Transfers all functions of the Federal Security Administrator to the Secretary;

(c) Authorizes Secretary to delegate to any officer, employee or agency any function vested in him.

Sec. 3: Creates an Under Secretary and an Assistant Secretary, each of whom shall be appointed by the President with the consent of the Senate at prevailing compensation for such executive positions.

Sec. 4: Creates an Administrative Assistant Secretary to be appointed by the Secretary with the approval of the President from the classified civil service at compensation of $14,000 per

annum.

Sec. 5: Establishes the offices of (1) Surgeon General of Public Health Service; (2) Commissioner of Education; (3) Commissioner of Social Security. Provides that Surgeon General shall be head of Public Health Service, Commissioner of Education, head Office of Education, and Commissioner of Social Security, head of Social Security Administration, and that each officer shall perform such other duties concerning his respective field as may be required by law or as the Secretary may prescribe pursuant to law. Transfers to the Surgeon General all functions of heretofore existing Surgeon General, and to the Commissioner of Education all functions of the heretofore existing Commissioner of Education. The Surgeon General, Commissioner of Education, and Commissioner of Social Security shall (1) report directly to the Secretary, (2) possess appropriate professional qualifications, experience and training, and (3) be appointed by the President with the consent of the Senate and except for the Surgeon General receives com

S. 2060

Sec. 1: Establishes a Department of Health, Education, and Security, to be administered by a Secretary appointed by the President subject to confirmation by the Senate at a salary of $15,000 per year.

Sec. 2: Creates 3 Under Secretaries (for Health, Education, and Public Welfare) to be appointed by the President with consent of Senate at compensation of $12,000 per annum. Each officer shall perform such duties concerning his respective field as may be prescribed by the Secretary or required by law.

Sec. 4: Provides that no powers, functions, or duties shall be conferred upon the Department in addition to those vested in the Federal Security Agency and/or its constituent units upon the effective date of the act.

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(c) Authorizes Secretary to appoint advisory committees of qualified persons not otherwise employed by the Government to consult upon major policies in the fields of health, education and public welfare.

(d) Authorizes Secretary to delegate to any officer, board, or employee any functions vested in him except that promulgation of regulations may be delegated to an Under Secretary only.

Sec. 6: (a) Transfers the Office of Federal Security Administrator and the Federal Security Agency and its constituent units to the Department the functions of which shall be allocated, distributed and administered by the Secretary subject to sec. 5 above and subsecs. (b) and (c) which follow:

(b) The following agencies shall be transferred as indicated:

1

Comparison of (A) Reorganization Plan No. 1 of 1949, to establish a Department of Welfare; (B) Reorganization Plan No. 27 of 1950, to establish a Department of Health, Education, and Security; 2 (C) S. 2060 (substitute) (81st Cong., 1st sess.), to establish a Department of Health, Education, and Security 3—Continued

Plan No. 1 of 1949

Hee, 2: (d) Present Federal Security Administrator to serve as Acting Secretary of Welfare for not more than 60 days pending initial appointment of Secretary.

Plan No. 27 of 1950

pensation at $14,000 per annum.
The Surgeon General shall hold
office for 4 years; may be ap-
pointed from the Public Health
Service Commissioned Corps,
and if so appointed shall not
cease to be a member of such
corps and shall be compensated
by applicable law.

Sec. 6: Authorizes Secretary to
establish central supply, budget-
ing, accounting, etc., services
effecting such departmental
transfers deemed necessary, pro-
viding he neither transfers nor
removes from the Surgeon Gen-
eral, Commissioner of Educa-
tion, or Commissioner of Social
Security, any professional func-
tions vested directly in them.

Sec. 7: Abolishes Federal Security Agency, Federal Security administrator, Assistant Federal Security Administrator, 2 assistant heads of Federal Security Agency, heretofore existing Office of Surgeon General, and heretofore existing Commissioner of Education.

Sec. 8: Authorizes President to designate any officer of Federal Security Agency to head any office provided for by secs. 2, 3, 4, and 5 above for 60 days pending initial appointment to such offices.

S. 2060

To the Bureau of Health; Public Health Service, Food and Drug Administration, Freedmen's Hospital, and St. Elizabeths Hospital; to the Bureau of Education; the U. S. Office of Education; to the Bureau of Public Welfare; Social Security Administration.

(c) Federal Security Administration functions relating to administration of Howard University, American Printing House for the Blind, and the Columbia Institute for the Deaf, are transferred to the Bureau of Education.

Sec. 11: The act shall take effect 90 days after date of its enactment.

Approved.

MILES SCULL, Jr., Professional Staff Member.

WALTER L. REYNOLDS, Staff Director.

Rejected by the Senate Aug. 16, 1949 (S. Rept. No. 851). 28. Res. 302 (Taft, et al.) disapproving Reorganization Plan No. 27 of 1950, filed June 22, 1950. Identical to S. 140, 80th Cong., 1st sess. Reported favorably by Senate Committee on Expenditures in the Executive Departments (S. Rept. No. 242).

The CHAIRMAN. Some week or 10 days ago, as chairman of the committee, I called these hearings and announced that we would hold public hearings for 2 days, today and tomorrow. We are going to undertake to conclude hearings tomorrow.

So far there are 24 and possibly 25 witnesses who desire to testify on this resolution and reorganization plan. I want to give the sponsors of the resolution and the representatives of the executive departments who actually are interested in this and are involved in this proposed plan, ample time to thoroughly state their position, either in support of or in opposition to the plan. Thereafter I am going to ask witnesses to try to confine their testimony to 10 minutes. There is no use rehashing a lot of history about this. The history is a matter of record here, and we are pretty well familiar with it, and we are going to ask the witnesses, then, to just state categorically why they are for and why they are against, and let us confine this to the issue and try to expedite these hearings.

Senator Taft, we are very glad to have you with us this morning, and since you are the author of the resolution of disapproval, the com mittee will be glad to hear you in support of your resolution.

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