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DEFINITIONS

SEC. 402. When used in this title

(1) The term "executive agency” means any commission, board, bureau, division, service, or office in the executive branch of the Government, but does not include the executive departments mentioned in title 5, section 1, United States Code.

(2) The term "independent executive agency” means any executive agency not under the jurisdiction or control of any executive department.

POWER OF PRESIDENT

SEC. 403. For the purpose of carrying out the policy of Congress as declared in section 401 of this title, the President is authorized by Executive order

(1) To transfer the whole or any part of any independent executive agency, and/or the functions thereof, to the jurisdiction and control of an executive department or another independent executive agency ;

(2) To transfer the whole or any part of any executive agency, and/or the functions thereof; from the jurisdiction and control of one executive department to the jurisdiction and control of another executive department; or

(3). To consolidate or redistribute the functions vested in any executive department or in the executive agencies included in any executive department; and

(4) To designate and fix the name and functions of any consolidated activity or executive agency and the title, powers, and duties of its executive head.

SEC. 404. The President's order directing any transfer or consolidation under the provisions of this title shall also designate the records, property (including office equipment), personnel, and unexpended balances of appropriations to be transferred.

SAVING PROVISIONS

SEC. 405. (a) All orders, rules, regulations, permits, or other privileges made, issued, or granted by or in respect of any executive agency or function transferred or consolidated with any other executive agency or function under the provisions of this title, and in effect at the time of the transfer or consolidation, shall continue in effect to the same extent as if such transfer or consolidation had not occurred, until modified, superseded, or repealed.

(b) No suit, action, or other proceeding lawfully commenced by or against the head of any department or executive agency or other officer of the United States, in his official capacity or in relation to the discharge of his official duties, shall abate by reason of any transfer of authority, powers, and duties from one officer or executive agency of the Government to another under the provisions of this title, but the court, on motion or supplemental petition filed at any time within twelve months after such transfer takes effect, showing a necessity for a survival of such suit, action, or other proceeding to obtain a settlement of the questions involved, may allow the same to be maintained by or against the head of the department or executive agency or other officer of the United States to whom the authority, powers, and duties are transferred.

(c) All laws relating to any executive agency or function transferred or consolidated with any other executive agency or function under the provisions of this title, shall, insofar as such laws are not inapplicable, remain in full force and effect, and shall be administered by the head of the executive agency to which the transfer is made or with which the consolidation is effected.

STATUTORY AGENCIES

SEC. 406. Whenever, in carrying out the provisions of this title, the President concludes that any executive department or agency created by statute should be abolished and the functions thereof transferred to another executive department or agency or eliminated entirely, the authority granted in this title shall not apply, and he shall report his conclusions to Congress, with such recommendations as he may deem proper.

DISAPPROVAL OF EXECUTIVE ORDER

SEC. 407. Whenever the President makes an Executive order under the provisions of this title, such Executive order shall be transmitted to the Congress

while in session and shall not become effective until after the expiration of sixty calendar days after such transmission, unless Congress shall sooner approve of such Executive order or orders, by concurrent resolution, in which case said order or orders shall become effective as of the date of the adoption of the resolution; Provided, That if Congress shall adjourn before the expiration of sixty calendar days from the date of such transmission, such Executive order shall not become effective until after the expiration of sixty calendar days from the opening day of the next succeeding regular or special session : Provided further, That if either branch of Congress within such sixty days shall pass a resolution disapproving of such Executive order, or any part thereof, such Executive order shall become null and void to the extent of such disapproval: Provided further, That in order to expedite the merging of certain activities, the President is authorized and requested to proceed, without the application of this section, with setting up consolidations of the following governmental activities: Public health (except that the provisions hereof shall not apply to hospitals now under the jurisdiction of the Veterans' Administration), personnel administration, education (except the Board of Vocational Education shall not be abolished), and Mexican Water and Boundary Commission, and to merge such activities, except those of a purely military nature, of the War and Navy Departments as, in his judgment, may be common to both and where the consolidation thereof in either one of the departments will effect economies in Federal expenditures, except that this section shall not apply to the United States Employees' Compensation Commission.

REPORT TO CONGRESS

SEO. 408. The President shall report specially to Congress at the beginning of each regular session any action taken under the provisions of this title, with the reasons therefor.

{PUBLIC_No. 428—72D CONGRESS, 2D SESSION-CHAPTER 212—MARCH 3, 1933]

[H. R. 13520)

AN ACT Making appropriations for the Treasury and Post Office Departments for the

fiscal year ending June 30, 1934, and for other purposes

TITLE IV. REORGANIZATION OF EXECUTIVE DEPARTMENTS

DECLARATION OF STANDARD

SEO. 401. The Congress hereby declares that a serious emergency exists by reason of the general economic depression; that it is imperative to reduce drastically governmental expenditures; and that such reduction may be accomplished in great measure by proceeding immediately under the provisions of this title.

Accordingly, the President shall investigate the present organization of all executive and administrative agencies of the Government and shall determine what changes therein are necessary to accomplish the following purposes:

(a) To reduce expenditures to the fullest extent consistent with the efficient operation of the Government;

(b) To increase the efficiency of the operation of the Government to the fullest extent practicable within the revenues;

(c) To group, coordinate, and consolidate executive and administrative agencies of the Government, as nearly as may be, according to major purposes;

(d) To reduce the number of such agencies by consolidating those having similar functions under a single head, and by abolishing such agencies and/or such functions thereof as may not be necessary for the efficient conduct of the Government;

(e) To eliminate overlapping and duplication of effort; and

(f) To segregate regulatory agencies and functions from those of an administrative and executive character.

DEFINITION OF EXECUTIVE AGENCY

SEC. 402. When used in this title, the term "executive agency” means any commission, independent establishment, board, bureau, division, service, or office in the executive branch of the Government and, except as provided in section 403, includes the executive departments.

POWER OF PRESIDENT

SEC. 403. Whenever the President, after investigation, shall find and declare that any regrouping, consolidation, transfer, or abolition of any executive agency or agencies and/or the functions thereof is necessary to accomplish any of the purposes set forth in section 401 of this title, he may, by Executive order

(a) Transfer the whole or any part of any executive agency and/or the functions thereof to the jurisdiction and control of any other executive agency;

(b) Consolidate the functions vested in any executive agency; or

(c) Abolish the whole or any part of any executive agency and/or the funetions thereof; and

(d) Designate and fix the name and functions of any consolidated activity or executive agency and the title, powers, and duties of its executive head; except that the President shall not have authority under this title to abolish or transfer an executive department and/or all the functions thereof.

SEC. 404. The President's order directing any transfer, consolidation, or elimination under the provisions of this title shall also make provision for the transfer or other disposition of the records, property (including office equipment), and personnel affected by such transfer, consolidation, or elimination. In any case of a transfer or consolidation under the provisions of this title, the President's order shall also make provision for the transfer of such unexpended balances of appropriations available for use in connection with the function or agency transferred or consolidated, as he deems necessary by reason of the transfer or consolidation, for use in connection with the transferred or consolidated function or for the use of the agency to which the transfer is made or of the agency resulting from such consolidation.

SAVING PROVISIONS

SEC. 405. (a) All orders, rules, regulations, permits, or other privileges made, issued, or granted by or in respect of any executive agency or function transferred or consolidated with any other executive agency or function under the provisions of this title, and in effect at the time of the transfer or consolidation, shall continue in effect to the same extent as if such transfer or consolidation had not occurred, until modified, superseded, or repealed.

(b) No suit, action, or other proceeding lawfully commenced by or against the head of any executive agency or other officer of the United States, in his official capacity or in relation to the discharge of his official duties, shall abate by reason of any transfer of authority, power, and duties from one officer or executive agency of the Government to another under the provisions of this title, but the court, on motion or supplemental petition filed at any time within twelve months after such transfer takes effect, showing a necessity for a survival of such suit, action, or other proceeding to obtain a settlement of the questions involved, may allow the same to be maintained by or against the head of the executive agency or other officer of the United States to whom the authority, powers, and duties are transferred.

(c) All laws relating to any executive agency or function transferred or consolidated with any other executive agency or function under the provisions of this title shall, insofar as such laws are not inapplicable, remain in full force and effect, and shall be administered by the head of the executive agency to which the transfer is made or with which the consolidation is effected.

WINDING UP AFFAIRS OF AGENCIES

SEC. 406. In the case of the elimination of any executive agency or function, the President's order pr iding for such elimination shall make provision for winding up the affairs of the executive agency eliminated or the affairs of the executive agency with respect to the functions eliminated, as the case may be.

EFFECTIVE DATE OF EXECUTIVE ORDER

SEC. 407. Whenever the President makes an Executive order under the provisions of this title, such Executive order shall be submitted to the Congress while in session and shall not become effective until after the expiration of sixty calendar days after such transmission, unless Congress shall by law provide for an earlier effective date of such Executive order or orders: Provided, That if Congress shall adjourn before the expiration of sixty calendar days from the date of such transmission such Executive order shall not become effective until after the expiration of sixty calendar days from the opening day of the next succeeding regular or special session.

APPROPRIATIONS IMPOUNDED

SEC. 408. The appropriations or po ons of appropriations unexpended by reason of the operation of this title shall not be used for any purpose but shall be impounded and returned to the Treasury.

TERMINATION OF POWER

SEC. 409. The authority granted to the President under section 403 shall terminate upon the expiration of two years after the date of enactment of this Act unless otherwise provided by Congress.

[PUBLIC—No. 2—73D CONGRESS]

[H. R, 2820]

AN ACT To maintain the credit of the United States Government

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

TITLE III. AMENDMENTS TO LEGISLATIVE APPROPRIATION ACT, FISCAL YEAR 1933

SECTION 1. Sections 407 and 409 of title IV of part II of the Legislative Appropriations Act, fiscal year 1933, as amended by section 17 of the Treasury and Post Office Appropriation Act, approved March 3, 1933, are amended to read as follows:

"SEC. 407. Whenever the President makes an Executive order under the provisions of this title, such Executive order shall be submitted to the Congress while in session and shall not become effective until after the expiration of sixty calendar days after such transmission, unless Congress shall by law provide for an earlier effective date of such Executive order or orders.

"SEC. 409. No executive order issued by the President in pursuance of the provisions of section 403 of this title shall become effective unless transmitted to the Congress within two years from the date of the enactment of this Act.” Approved March 20, 1933.

Senator HARRISON. May I ask you in that connection if you have looked over the former acts that have been passed which created new departments and transferred certain functions from one department to the new departments!

Mr. GULICK. Yes, sir.

Senator HARRISON. And do they carry out the same general idea as this law ?

Mr. GULICK. Since 1913 there have been two departments created, Commerce and Labor. In 1903 there was set up the Department of Commerce and Labor, and then they split that; they put Commerce in one Department and Labor in another Department in 1913.

The Overman Act, which was passed during the war, when President Wilson was in office, was another act dealing with the broad problem of reorganization. As you remember, a great many emergency agencies had been set up at that time. The problem arose as to what could be done with those, in fitting them into a more orderly structure.

Senator HARRISON. That was a war measure, was it not?

Mr. GULICK. That was a war measure, with a limited term of application. Now, in the Overman Act, the first effort was made to give the President general authority to make reorganizations. Before that his powers of transfers had been attached to a specific department or a specific division.

Senator HARRION. What was the limitation of time? For the duration of the war?

Mr. GULICK. Yes; and that was terminated with the passage of a resolution by Congress officially setting a final date to the war condition.

In the Overman bill the language was as follows: The President is hereby authorized to make such redistribution of functions among executive agencies as he may deem necessary, including any functions, duties, and powers hitherto by law conferred upon any executive department, commission, bureau, agency, office, or officer, in such manner as in his judg. ment shall seem best fitted to carry out the purposes of this Act, and to this end is authorized to make such regulations and to issue such orders as he may deem necessary.

In presenting this bill it was rather interesting that Senator Overman, who handled the matter in the Senate, made the statement nat he felt that though the action was couched in emergency terms it represented a type of legislation that could be permanently on the statute books. He said in the Senate:

So far as I am concerned, even if these were not wartimes, I would be in favor of this bill. Everybody familiar with the history of this country knows, and especially those 18 members on the Appropriations Committee with whom I have the honor to serve, that there is the most utter confusion and great duplication of work among the departments of government. Anyone knows, or should know it, that during the term of former President Taft, in time of peace, a resolution was introduced which the Senate passed, which practically gave him the authority now sought by the pending measure, but in relation to one subject only. Time and again Congress has acted on this question and given its authority for special objects.

Then he said:

From time to time we have been passing little popgun bills that ought to have been settled without coming to Congress. Eight or ten times Congress has been called upon to pass through the Senate and House bills which, if the President had the authority that this bill proposed to give him, we would have done without the delay always caused.

Senator HARRISON. What is the date of that resolution?

Mr. GULICK. The date of that resolution is let me see. Was that 1917 or 1918? I have the text of the bill here.

Senator HARRISON. My recollection is that the purpose of that legislation was not so much the reorganization of departments; it was to cut out the red tape in the conduct of the war.

Mr. GULICK. I think that was advanced as well, but the powers given went beyond that to the more orderly reorganization. It came just at the end of the war period.

Senator TOWNSEND. It was termed “a war measure", was it not?

Mr. GULICK. It was termed "a war measure", there is no question about it.

Mr. BROWNLOW. It was approved May 20, 1918.

Representative VINSON. Now, you stated that there were some restrictions in that act. What were they?

Mr. GULICK. Well, the only restriction in that act had to do with the general purpose of the bill. As a matter of fact, I think that students of constitutional law today would say that the standards which were set in that bill were somewhat inadequate; that there

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