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

(g) To segregate in any agency of the Government regulatory functions from those of an administrative and executive character, and to transfer any such functions from one agency to another and segregate such functions in the receiving agency.

POWER OF THE PRESIDENT

SEC. 2. Whenever the President, after investigation, shall find and declare that any transfer, retransfer, regrouping, coordination, consolidation, reorganization, segregation, or abolition of the whole or any part of any agency, or the functions thereof, is necessary to accomplish any of the purposes set forth in section 1 of this Title, he may by Executive order:

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

(b) Establish any agency to receive the whole or any part of any other agency, or the functions thereof, and this shall include the power to establish Federal corporations and direct that such action be taken as may be necessary to effect the transfer to any such corporation of the assets and liabilities of any federally owned and controlled corporation or corporations and empower any such Federal corporation to exercise such functions as may be necessary to effectuate the purposes for which the federally owned and controlled corporation or corporations were established ;

(c) Regroup, coordinate, consolidate, reorganize, or segregate the whole or any part of any agency, or the functions thereof; or

(a) Abolish the whole or any part of any agency, or the functions thereof, and this shall include the liquidation and dissolution of any federally owned and controlled corporation in accordance with the laws of the United States, or of any State, Territory, or possession of the United States (including the Philippine Islands), or the District of Columbia, under which such corporation was organized ; and

(e) Prescribe the name and functions of any agency transferred, retransferred, established, regrouped, coordinated, consolidated, reorganized or segregated under this title, and the title, functions, tenure, and method of the appointment of its head, or of any of its officers or employees.

TITLE II

REORGANIZATION AND EXTENSION OF MERIT SYSTEM

PART 1. THE CIVIL SERVICE ADMINISTRATION

SECTION 201. (a) There is established in the executive branch of the Government an organization to be known as the Civil Service Administration (hereinafter referred to as the "Administration”), at the head of which shall be a Civil Service Administrator (hereinafter referred to as the “Administrator"), who shall be appointed by the President, by and with the advice and consent of the Senate, from a list of the three highest candidates certified as a result of an open competitive examination, as hereinafter provided, and shall receive a salary at the rate of $15,000 per annum. The Administrator shall be selected without regard to any political qualifications, and shall be a person specially qualified for the office of Administrator by reason of his executive and administrative qualifications, with particular reference to his actual experience in, or his knowledge of, accepted practices in respect to the functions vested in and imposed upon that office by law. He shall be subject to the provisions of the Civil Service Retirement Act of May 22, 1920, as amended, but he shall not by virtue of his appointment as Administrator acquire an eligibility status for appointment, transfer, promotion, or reinstatement to a position in the classified civil service.

(b) There shall be in the Administration a Deputy Civil Service Administrator who shall be appointed by the Administrator, subject to the civil service laws, and his salary shall be fixed in accordance with the Classification Act of 1923, as amended. The Deputy Civil Service Administrator shall perform such functions as the Administrator may prescribe, and shall act as Administrator in the absence of the Administrator or in the event of a vacancy in that office.

SEC. 202. (a) The United States Civil Service Commission, the three offices of Civil Service Commissioners, and all other offices of such Commission, are abolished and all functions vested in and imposed upon such Commission or such offices or officers by law are conferred and imposed upon the Administrator.

(b) The provisions of this Act shall be construed as supplementing, and not superseding, the laws relating to the civil service of the United States, by or under which functions are vested in and imposed upon the President, except as such provisions may be directly in conflict with any such laws: Provided, That the President shall not be authorized to cover into the classified civil service any office, position, or incumbent thereof, or to remove any office or position from such service, except as hereinafter provided.

SEC. 203. In addition to the functions vested in and imposed upon the Administrator by section 202 of this title

(a) The Administrator shall prepare and effect plans for the development and maintenance of a career service in the Federal Government.

(b) The Administrator is authorized to

(i) Plan, establish, supervise or coordinate employee training programs and similar activities of the agencies of the Government, and make available to such agencies employee training facilities at his disposal ;

(ii) Obtain information, through the Administration, or in cooperation with other agencies, organizations, or groups, concerning personnel standards, practices, or policies in other governmental jurisdictions (whether a foreign country, State, Territory, or possesison of the United States, including the Philippine Islands, or any political subdivision thereof, or the District of Columbia), or in private industry, and make such information available to the agencies of the United States ;

(iii) Cooperate generally with the public personnel agencies of States, Territories, or possessions of the United States (including the Philippine Islands), or political subdivisions thereof, or the District of Columbia, in the adoption, development, or extension of the merit system in their respective jurisdiction, and upon the request of any such agency render advisory or consultative personnel service or establish eligible registers for such agency or establish or assist in the establishment of joint eligible registers;

(iv) At the direction of the President, or upon the request of the head of any agency of the Government, cooperate or assist in the installation or devel. opment of personnel standards, practices, or policies for any agency of the Government, or review and investigate personnel standards, practices, or policies of such agency, and report thereon to the President or the officer making the request. Cooperation or assistance by the Administrator under paragraphs (iii) and (iv) of subsection (b) of this section may be made on the condition that the agencies for the benefit of which such cooperation or assistance is rendered shall reimburse the administration for all necessary expenses incurred in connection therewith, and the payments representing such reimbursements shall be deposited as refunds to the appropriations from which such expenses were originally paid, instead of being covered into the Treasury as miscellaneous receipts ;

(v) Request persons not in the service of the Federal Government who are experts in some aspect of personnel administration to attend conferences with representatives of the Administration or to consult or advise with them, in the District of Columbia or elsewhere, and reimburse such experts for their subsistence and other expenses at a rate not to exceed $25 per day for time spent in attending and traveling to and from such conferences, or in consulting or advising with such representatives, plus the actual cost of transportation ;

(vi) Purchase manuscripts from, or meet the costs of special studies made by, private persons, corporations, or other organizations, at the request of, or in cooperation with, the Administration; and

(vii) Pay membership fees or dues in personnel associations, or in organizations which issue publications to members only or to members at a lower price than to others, payment for which may be made in advance.

SEC. 204. (a) The Administrator is authorized to delegate to any officer or employee of the Administration any functions vested in and imposed upon the Administrator or the Administration by law.

(b) The Administrator shall supervise such clerical and other work of the Civil Service Board, established by section 205 of this title, as the Board may request and shall provide the Board with such clerical and other services as it may require by assignment from the Administration, and furnish the Board with stationery and other necessary articles.

(c) The Administrator shall cause a seal of office to be made for the Administration, of such device as the President shall approve, and judiciál' notice shall be taken of such seal.

PART 2. THE CIVIL SERVICE BOARD

Sec. 205. There is established in the Administration a board to consist of seven members and to be known as the Civil Service Board (hereinafter referred to in this title as the “Board"). No person shall be eligible for membership on the Board if, at any time within five years preceding the date of his appointment, he has been a member or officer of any local, State, or National committee of a political party, or during such period has held, or been a candidate for, any elective public office.

SEC. 206. The members of the Board shall be appointed by the President, by and with the advice and consent of the Senate. One of the members of the Board shall be designated by the President as Chairman, and one shall be designated by the President as Vice Chairman and shall act as Chairman in the absence of the Chairman or in the event of a vacancy in that office.

SEC. 207. The terms of office of the members of the Board first taking office shall expire, as designated by the President at the time of nomination, one at the end of the first year, one at the end of the second year, and one at the end of each succeeding year up to and including the seventh year, after the enactment of this Act. A successor shall have a term of office expiring seven years from the date of expiration of the term for which his predecessor was appointed except that a person appointed to fill a vacancy occurring prior to the expiration of such term shall be appointed for the remainder of such term.

Sec. 208. (a) The members of the Board shall be reimbursed for their subsistence and other expenses at the rate of $50 per day for time spent in attending and traveling to and from meetings, or in otherwise exercising the functions of the Board, plus the actual cost of transportation: Provided, That no member shall be so reimbursed in an amount to exceed $1,500 per annum exclusive of transportation.

(b) The Board shall not meet less than four times a year. Meetings may be called by the President or the Chairman and shall be called by the Chairman upon the petition of any four members of the Board.

(c) The Board shall determine the rules of its own proceedings and a majority of its members in office shall constitute a quorum for the transaction of business, but the Board may function notwithstanding vacancies.

SEC. 209. The Board shall

(a) Represent the public interest in the improvement of personnel administration in the service of the Federal Government and in the protection of the merit system;

(b) Make annual reports to the President and the Congress on the quality and status of the personnel administration of the Federal Government;

(c) Study and report to the President from time to time the relation of the Civil Service of the Federal Government to the merit system in States, Territories, or possessions of the United States (including the Philippine Islands), or political subdivisions thereof, or the District of Columbia, particularly with reference to activities in such jurisdictions in which there is a participation by the Federal Government by way of assistance in the program or by grants-in-aid ;

(d) Make recommendations to the President on possible improvements in the laws or the administration of matters affecting personnel of the Federal Government, and to this end the Board is authorized to make such special investigations as it deems necessary;

(e) Make such special reports to the President or the Congress as either may request or the Board deems advisable;

(f) Act in an advisory capacity, upon request of the President or the Administrator, on matters concerning personnel administration in the service of the Federal Government;

(g) Advise and assist the Administrator in fostering the interest of institutions of learning, civic and professional organization, and labor and employees' organization in the improvement of personnel standards, practices, or policies in the service of the Federal Government;

(h) Appoint five specially qualified examiners, without regard to the civil service laws, who shall, consistent with the provisions of this title, determine the necessary qualifications for appointment to the office of Administrator.

152419-37-3

The examiners shall formulate and hold an open competitive examination (which may be written, oral or based on education and experience) whenever a vacancy shall occur in the office of Administrator, and shall certify to the Board an eligible register of those passing such examination. The Board shall certify to the President the three highest eligible on such register: Provided, That if any vacancy or vacancies shall occur among the three highest eligibles so certified to the President, the Board may fill such vacancy or vacancies from the next highest on the eligible register, to be selected in the order of their standing on such eligible register. A new examining board shall be appointed and a new examination shall be held each time a vacancy in the office of Administrator occurs. Nothwithstanding the provisions of any other Act, or any rules prescribed pursuant thereto, no person taking the examination for the office of Administrator shall receive any preference or precedence whatsoever, insofar as his appointment or eligibility for appointment to that office is concerned, except by reason of his actual earned rating on such examination. The examiners shall be reimbursed for their subsistence and other expenses at a rate not to exceed $25 per day for time spent in carrying out the provisions of this subsection, plus the actual cost of transportation ;

(i) Propose to the President and the Administrator new or amended rules for the administration of personnel matters in the service the Federal Government and review and comment upon such proposed rules or regulations as may be submitted to the Board by the Administrator; and

(j) Propose to the President plans and procedures dealing with Federal employment problems. If the President, or the head of any executive department or independent agency finds it necessary to constitute special boards to deal with such problems, the President or such officer is authorized, subject to such regulations as the President may prescribe, to appoint, without regard to the civil service laws, the members of such special boards, and, except in the case of officers or employees of the United States, to fix their compensation without regard to the Classification Act of 1923, as amended : Provided, That the agency of the United States, for the benefit of which any such special board is appointed, shall reimburse agencies of the Government for the salaries and necessary expenses of officers or employees of such agencies while serving on any such special board, and when so reimbursed such funds shall be deposited as refunds to the appropriations from which such payments were originally made, instead of being covered into the Treasury as miscellaneous receipts. Such special board shall as soon as practicable report their findings to the President or other appointing officer.

SEC. 210. The Chairman of the Board shall cause a seal of office to be made for the Board, or such device as the President shall approve, and judicial notice shall be taken of such seal.

PART 3. METHOD OF APPOINTMENT

SEC. 211. (a) All offices or positions in the agencies of the Government to which appointments are authorized to be made by the President alone, or by the President, by and with the advice and consent of the Senate, shall, when hereafter filled, be filled by appointment without term by the heads of the executive departments or independent agencies in or under the jurisdiction of which such officers or positions are located, except the following:

(i) Heads of executive departments and independent agencies;

(ii) Ambassadors, Ministers, consul, and officers and employees in the Foreign Service of the United States;

(iii) Undersecretaries of executive departments; (iv) The Director of the Bureau of the Budget;

(v) Members of the Civil Service Board, and members of the special boards appointed under subsection (j) of section 209 of this Title;

(vi) Commissioned officers and enlisted personnel in the military and naval services; and

(vii) Commissioned officers and enlisted personnel in the Coast Guard, and commissioned officers in the Public Health Service, and the Coast and Geodetic Survey.

(b) The provisions of subsection (a) shall not be construed (1) to cover any offices or positions into the classified civil service except as hereinafter provided, or (2) to limit the power of the President to prescribe the method of appointment of the head of any agency under the provisions of title I of this Act.

PART 4. EXTENSION OF CIVIL SERVICE LAWS

SEC. 212. Upon the expiration of one year after the enactment of this Act, all offices or positions in the agencies of the Government, other than federally owned and controlled corporations and temporary agencies, and except the offices or positions designated in paragraphs (i) to (vii) inclusive of subsection (a) of section 211 of this title, the offices or positions expressly excepted from the civil service laws by this act, and such other offices or positions as the President may find and declare to be policy-determining in character and so designate by Executive order, shall be covered into the classified civil service: Provided, That the President is authorized at any time within such year to cover into the classified civil service any such offices or positions as he may find and declare by Executive order are not policy-determining in character, if, under the provisions of this section, such offices or positions would otherwise be covered into the classified civil service upon the expiration of such year.

SEO. 213. The President is authorized to cover into the classified civil service such offices or positions in federally owned and controlled corporations as he may find and declare by Executive order are not policy-determining in character: Provided, That in the case of any such corporation organized under the laws of any State, territory, or possessions of the United States (including the Philippine Islands), or the District of Columbia, the President is authorized to direct that such action be taken as will permit appointments to such offices or positions in any such corporation to be made in accordance with the civil service laws, consistently with the laws of any such State, Territory, or possession, or the District of Columbia, or with the charter or articles of incorporation of any such corporation.

SEC. 214. Incumbents of offices or positions which are covered into the classified civil service under the provisions of part 4 or this title, shall not thereby acquire a classified civil service status, except (a) upon recommendation by the head of the agency concerned within one year after such offices or positions have been covered into the classified civil service, and certification within such period by such head to the Administrator that such incumbents have served with merit for not less than six months prior to the enactment of this act in the case of incumbents of offices or positions covered into the classified civil service under the provisions of section 212 of this title, or six months prior to the date of the appropriate Executive order in the case of incumbents of offices or positions covered into the classified civil service under the provisions of sections 213 and 216 of this title, and (b) upon passing such suitable noncompetitive examinations as, the Administrator may prescribe.

SEC. 215. (a) Whenever the President finds and declares that an office or position is not policy-determining in character, he is authorized by Executive order to cover such office or position into the classified civil service: Provided, That the incumbent of any such office or position which has been previously excepted from the classified civil service as policy-determining in character, shall not acquire a classified civil service status except by appointment as the result of an open competitive examination.

(b) Whenever the President finds and declares that an office or position in the classified civil service is policy-determining in character, he is authorized by Executive order to except such office or position from the classified civil service.

(c) The provisions of this title relating to the covering into and excepting from the classified civil service of offices or positions or the incumbents thereof, and the method of appointment to offices or positions shall, in addition to being applicable to existing offices and positions and the incumbents thereof, be applicable to all offices, positions, and incumbents, created, authorized, or appointed under this Act, and under all Acts enacted subsequent to the enactment of this Act, unless the Congress specifically provides otherwise.

Sec. 216. In addition to all other functions vested in and imposed upon him under this title, the President is authorized by Executive order to except from, or cover into, the classified civil service any office or position, whenever he finds and declares that good administration of the Government will be facilitated thereby.

PART 5. EXTENSION OF CLASSIFICATION ACT

SEC. 217. (a) Subject to the limitations contained in this section, whenever the President, after such classification and compensation surveys or investi

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