DUTIES OF THE COMMISSION

SEC. 3. (a) The Commission shall make a thorough study of present Federal policies and programs and their relationship to the problems of smalltown areas of the United States for the purpose of determining—

(1) such matters as may be of assistance in helping solve the various problems of, and promoting the economic and social well-being of the Nation's smalltown areas.

(2) investigate present and prospective needs of smalltown areas, with relation to public services, including but not limited to, planning, natural resources, school and recreational requirements, municipal financing, with particular attention given to business expansion, including ways and means of attracting new business to the smalltown areas, and accumulate such data from other agencies and commissions of the Federal Government necessary to expedite aid, to offer advice and research facilities to improve the needs of the said areas.

(3) the extent to which the Federal Government is at present assisting small towns in meeting such needs, and to establish effective liaison between the States' economic and industrial development planning commissions, and their local subdivisions.

(4) the extent to which the Federal Government can make available, through a wider dispersal of Government procurement operations and possible location of Federal facilities.

(5) to what extent a direct allocation of contracts for the component parts of items used in our defense program can be manufactured or fabricated in small towns, to take advantage of the skills and facilities of the small towns in order that their economy be strengthened by earmarking a definite proportion of the several billions of dollars that Congress has and will approve for our national defense program.

(6) together with other matters that may be of benefit to smalltown areas in helping promote their economic and social well-being.

SEC. 3. (b) The Commission shall submit to the President, the Congress, and the Governors of the respective States on or before July 1 of each year, commencing in 1961, its findings and recommendations. The Commission shall make such interim reports as the President from time to time may request, or as the Commission deems appropriate.

POWERS OF THE COMMISSION

SEC. 4. (a) The Commission, or on the authorization of the Commission, any two members thereof, may, for the purpose of carrying out the provisions of this Act, hold such hearings and sit and act at such times and places, administer such oaths, and require, by subpena or otherwise, the attendance and testimony of such witnesses and the production of such books, records, correspondence, memorandums, papers, and documents as the Commission or such subcommittee may deem advisable. Subpenas may be issued under the signature of the Chairman of the Commission, or any duly designated member, and may be served by any person designated by such Chairman or member. The provisions of sections 102 to 104, inclusive, of the Revised Statutes (2 U.S.C. 192-194) shall apply in the case of any failure of any witness to comply with any subpena or to testify when summoned under authority of this section.

(b) The Commission is authorized to receive from any department, agency, or independent instrumentality of the executive branch of the Government any information it deems necessary to carry out its functions under this Act; and each such department, agency, and instrumentality is authorized and directed to furnish such information to the Commission, upon request made by the Chairman, or the Vice Chairman when acting as Chairman.

APPROPRIATIONS, EXPENSES, AND PERSONNEL

SEC. 5. (a) The members of the Commission shall serve without compensation. (b) There are hereby authorized to be appropriated such amounts as may be necessary to carry out the provisions of this Act.

H.R. 6065 introduced by Congressman William Fitts Ryan, of New York, follows:)

[H.R. 6065, 87th Cong., 1st sess.]

A BILL To establish a Department of Urban Affairs and prescribe its functions

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

PURPOSE OF ACT

SECTION 1. (a) The Congress finds that the rapidly increasing urbanization of the United States, with its accompanying social and economic changes, creates new, and accentuates existing, problems in fields such as housing, urban renewal, slum clearance, prevention and elimination of urban blight, air and water pollution, water supply, sewage facilities, transportation and traffic control, and many others. As more and more people move to urban areas and the proportion of the population of the United States living in such areas increases, the needs of the urban population, especially in the field of housing, will become increasingly serious. The burdens placed on facilities and services in urban areas by their rapidly increasing population are such that existing facilities and services daily become more inadequate. Ever-increasing efforts are continually required in order to maintain such facilities at current levels, and still greater efforts are required to provide even minimal improvements therein. Further, the growth of urban areas across State lines and the increasing complexity of our society make the problems of urban areas increasingly interstate problems; and the manner in which such problems are dealt with affects the entire Nation.

(b) In view of the foregoing, the Congress finds that the needs of urban areas are so pressing, and have such an impact upon the Nation as a whole, that Federal action is required to assist in meeting the problems of urban areas through housing programs, and through education. research, technical services, and other programs designed to assist in meeting the needs of urban areas.

(c) It is therefore the purpose of this Act to provide for the establishment of a Federal department to represent the needs of urban areas, to act as spokesman for consumer interests, and to serve as a central place for the assessment of the overall results of Federal programs having an impact upon urban areas, and to coordinate such programs.

ESTABLISHMENT OF DEPARTMENT OF URBAN AFFAIRS

SEC. 2. (a) In order to carry out the purpose of this Act, there is hereby established an executive department to be known as the Department of Urban Affairs (hereinafter referred to as the "Department"), at the head of which shall be a Secretary of Urban Affairs (hereinafter referred to as the "Secretary") who shall be appointed by the Pesident, by and with the advice and consent of the Senate. Under the Secretary shall be an Under Secretary, three Assistant Secretaries, and a General Counsel, who shall perform such functions as the Secretary shall prescribe and who shall be appointed in the same manner as the Secretary.

(b) In the absence of the Secretary, or when he is unable to perform the duties of his office, the Under Secretary shall act as Secretary. In the event of the absence of both the Secretary and the Under Secretary, or in case both are unable to perform the duties of the office of Secretary, an Assistant Secretary to be designated by the Secretary shall act as Secretary; or in the absence of designation by the Secretary, the Assistant Secretary who is senior in office shall act as Secretary.

(c) The Secretary, Under Secretary, Assistant Secretaries, and General Counsel shall receive compensation at the rates prescribed for these positions in the other executive departments.

(d) Except to the extent inconsistent with this Act, all provisions of law applicable to executive departments generally shall apply to the Department.

(e) The Secretary is authorized to make such expenditures (including expenditures for personal services and rent at the seat of government and elsewhere and for books, periodicals, printing, and binding) as may be necessary to carry out this Act and as may be provided for by the Congress from time to time.

(f) The Secretary shall make at the close of each fiscal year a report to the Congress giving an account of all moneys received and disbursed by him and the Department, describing the work done by the Department, and making such recommendations as he shall deem necessary for the effective performance of the functions and duties of the Department.

(g) There are authorized to be appropriated such sums as may be necessary for the performance of the functions and duties of the Department.

(h) Section 158 of the Revised Statutes of the United States (5 U.S.C. 1) is amended by adding at the end thereof the following:

"Eleventh: The Department of Urban Affairs.”

FEDERAL URBAN AFFAIRS COUNCIL

SEC. 3. (a) There shall be in the Department an advisory council known as the Federal Urban Affairs Council. Members of the Council shall be appointed by the President upon nomination by the Secretary from among persons with broad experience and interest in urban and related problems, and may include persons outside the Federal service. The following are hereby designated as members ex officio of the Council: the Secretary of Labor; the Secretary of Commerce; the Secretary of Health, Education, and Welfare; the Secretary of the Treasury; and the Administrator of Veterans' Affairs; and the President may designate other Federal officials as ex officio members of the Council. Members of the Council shall receive no compensation for their services, but shall be reimbursed for necessary travel and subsistence expenses as provided in the Travel Expense Act of 1949. The Council shall meet at the call of the Secretary, but not less than twice a year. The Council shall be concerned with all the urban problems mentioned in this Act, including housing, air and water pollution, transportation, sewage, water supply, urban renewal, and problems of special concern to the consumer.

(b) The Secretary may establish such other advisory councils and committees on urban affairs as he may determine to be desirable and in furtherance of the purpose of this Act. The members of any such council or committee shall be reimbursed for actual travel and subsistence expenses incurred in attending the meetings thereof.

FUNCTIONS AND TRANSFERS

SEC. 4. (a) There are hereby transferred to the Secretary all of the functions of the Housing and Home Finance Agency and the constituent agencies thereof (including all functions of the Administrator and Deputy Administrator of such Agency, the Federal Housing Commissioner, the Public Housing Commissioner, the Urban Renewal Commissioner, the Community Facilities Commissioner, and the Federal National Mortgage Association), together with all personnel, property, records, obligations, commitments, and unexpended balances of apropriations, allocations, and other funds (available or to be made available) of such Agency and its constituent agencies.

(b) All laws relating to the Housing and Home Finance Agency or any of its constituent agencies shall, insofar as such laws are not inapplicable, remain in full force and effect. Any transfer of personnel pursuant to subsection (a) shall be without change in classification or compensation, except that this requirement shall not operate to prevent the adjustment of classification or compensation to conform with the duties to which such transferred personnel may be assigned. All orders, rules, regulations, permits, or other privileges made, issued. or granted in connection with any functions transferred pursuant to subsection (a), and in effect at the time of the transfer, shall continue in effect to the same extent as if such transfer had not occurred, until modified, superseded, or repealed. No suit, action, or other proceeding lawfully commenced by or against such Agency or the Administrator or any other officer thereof, or by or against any such constituent agency or any officer thereof, or by or against any other officer of the United States acting in his official capacity, shall abate by reason of any transfer made pursuant to subsection (a), but the court, on motion or supplemental petition filed at any time within twelve months after such transfer takes effect showing the necessity for a survival of such suit, action, or other proceeding to obtain a settlement of the questions involved, may allow such suit, action, or other proceeding to be maintained by or against the Department or the Secretary or an officer or organizational entity thereof, as may be appropriate.

(c) Notwithstanding any other provision of law

(1) all delegations of authority by the Housing and Home Finance Agency and its constituent agencies, as well as all licenses, orders, regulations, certificates, directives, issuances, and other official actions thereof which are in force on the effective date of this section, shall continue in full force and effect until modified, amended, superseded, or revoked by the Secretary;

(2) all boards, councils, committees, and similar organizations and groups established by such Agency or any such constituent agency or by any officer of either pursuant to law which are in being on the effective date of this section may be continued, abolished, or modified (within such limits as may be specifically prescribed by law) by the Secretary; and

(3) arrangements for representation of such Agency or any such constituent agency on any interagency committee, panel, or working group which is in being on the effective date of this section shall continue in effect until modified, amended, superseded, or revoked by the Secretary.

(d) The function of the President of appointing officers heretofore within the Housing and Home Finance Agency is transferred to the Secretary; except that pending the initial appointment of the officers of the Department, the functions of any such officer may be performed temporarily by such officer of the Housing and Home Finance Agency, including its constituent agencies, as the President shall designate.

(e) Any reference to the Housing and Home Finance Agency or the Administrator thereof, or to any constituent agency of the Housing and Home Finance Agency or any officer of such constituent agency, in any other law, rule, regulation, certificate, directive, instruction, license, or other official paper in force on the effective date of this section shall be deemed to refer and apply to the Department or the Secretary, as may be appropriate.

(f) As of the effective date of this section, the Housing and Home Finance Agency and its constituent agencies, and all offices therein, are abolished. The Secretary shall make such provisions as may be necessary (subject to the provisions of this Act) in order to terminate any outstanding affairs of the agencies and offices abolished by the proceeding sentence.

RESEARCH AND TECHNICAL ASSISTANCE

SEC. 5. (a) The Secretary shall (1) conduct a continuing study of problems peculiar to urban and metropolitan areas, including problems of coordinating Federal programs as they affect such areas, and (2) provide technical assistance to State and local governmental bodies in developing solutions to such problems. Such assistance shall include, whenever the Secretary deems it appropriate, the dissemination to interested bodies of the results of the studies undertaken pursuant to this section.

(b) The Secretary shall from time to time make such recommendations to the Congress, as a result of the studies to be undertaken under this section and after consultation with appropriate representatives of State and local governments, as he shall determine to be appropriate.

(c) As used in this section, the term "State" includes the District of Columbia and the Commonwealth of Puerto Rico.

STUDY OF FURTHER TRANSFERS OF FUNCTIONS

SEC. 6. (a) (1) There is hereby established a special commission (referred to in this section as the "Commission") to study the feasibility of making further transfers of functions to the Department. The Commission shall consist of twelve members appointed by the President from among individuals in private life having substantial knowledge of and experience in housing, urban affairs, mortgage financing, and related fields.

(2) The Commission may employ and pay the compensation of such staff as may be necessary to the performance of its functions.

(3) Members of the Commission shall be compensated at the rate of $50 a day while actually engaged in the business of the Commission, and shall be paid travel expenses and per diem in lieu of subsistence in accordance with the provisions of section 5 of the Administrative Expenses Act of 1946 relating to persons serving without compensation.

(b) The Commission shall conduct a thorough study and investigation of all functions relating to housing and urban affairs which on the date of the enactment of this Act are being performed by departments, agencies, and instrumen

talities of the Federal Government other than the Housing and Home Finance Agency and its constituent agencies, giving particular attention to (1) the distribution of such functions throughout the Government and the effectiveness with which they are being carried out by the departments, agencies, and instrumentalities in which they are respectively vested, and (2) the extent to which further coordination in the performance of such functions, with respect to each other as well as with respect to the functions transferred to the Department under section 4(a), would serve to increase the overall efficiency and effectiveness of the programs of the United States in the field of housing and urban affairs and thereby promote the achievement of the purpose of this Act. Upon the completion of its study and investigation, and in no event later than January 1, 1962, the Commission shall submit a full report thereon to the President, together with its findings and recommendations.

(c) The President, after receiving and considering the report of the Commission under subsection (b), shall prepare and submit to the Congress a proposal for the transfer to the Department from other departments, agencies, and instrumentalities of the Government of such additional functions relating to housing and urban affairs as he may deem necessary or appropriate to promote efficiency and to carry out the purpose of this Act. In addition, the President shall from time to time exercise such authority with respect to the reorganization of Federal departments and agencies as may be vested in him by law with a view to further transferring to the Department any functions and agencies of the Government the transfer of which he determines will further the purpose of this The President shall submit to the Congress, on or before July 1, 1962, a report setting forth any action which has been taken or is proposed to be taken by him in accordance with the provisions of this sentence and the reasons therefor.

Act.

EFFECTIVE DATE

SEC. 7. This Act shall take effect on the date of its enactment, except that section 4 shall take effect on the first day of the first month which begins more than sixty days after the date of the enactment of this Act.

DEPARTMENTAL SEAL

SEC. 8. The Secretary shall cause a seal of office to be made for the Depart ment, of such design as the President shall approve, and judicial notice shall be taken thereof.

DELEGATION OF FUNCTIONS AND INCIDENTAL TRANSFERS

SEC. 9. (a) The Secretary may from time to time make such provision as he deems appropriate authorizing the performance of any of his functions by any other officer, employee, or agency, of the Department, except as provided in section 2 and except functions which the Housing and Home Finance Administrator is expressly prohibited by law from delegating. No change in the organization or functions of the Federal National Mortgage Association in connection with its secondary market operations, under title III of the National Housing Act, shall be made under this Act unless the Secretary finds that the change will not adversely affect any rights of owners of outstanding common stock issued under this title III of such Act.

(b) To the extent that carrying out the provisions of subsection (a) of this section involves the assignment of major program functions or major groups of program functions to an organizational unit of the Department, the Secretary shall, to the extent he deems practicable, give appropriate advance public notice of the delegation of functions proposed to be made by him and shall afford appropriate opportunity for interested persons or groups to place before the Department their views with respect to such proposed delegations.

(c) The Secretary may from time to time effect, within the Department, such transfers of personnel, records, property, and unexpended balances (available or to be made available) of appropriations, allocations, or other funds of the Secretary as he deems necessary to carry out the provisions of this Act or transfers of functions hereunder, but such funds may be used only for the purposes for which they were originally made available.

SHORT TITLE

SEO. 10. This Act may be cited as the "Department of Urban Affairs Act”.