TEXT OF PUBLIC LAW 19, 76TH CONGRESS

(REORGANIZATION ACT OF 1939)

AN ACT

To provide for reorganizing agencies of the Government, and for other purposes,

April 3, Iska M. R. 4425] Public, No. 1]

Reorganization Act

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may of 1939. be cited as the "Reorganization Act of 1939".

TITLE I-REORGANIZATION

PART I

SECTION 1. (a) The Congress hereby declares that by reason of continued national deficits beginning in 1931 it is desirable to reduce substantially Government expenditures and that such reduction may be accomplished in some measure by proceeding immediately under the provisions of this Act. The President shall investigate the organization of all agencies of the Government and shall determine what changes therein are necessary to accomplish the following

purposes:

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

(2) To increase the efficiency of the operations of the Government to the fullest extent practicable within the revenues;

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

(4) To reduce the number of agencies by consolidating those having similar functions under a single head, and to abolish such agencies as may not be necessary for the efficient conduct of the Government; and

(5) To eliminate overlapping and duplication of effort.

(b) The Congress declares that the public interest demands the carrying out of the purposes specified in subsection (a) and that such purposes may be accomplished in great measure by proceeding immediately under the provisions of this title, and can be accomplished more speedily thereby than by the enactment of specific legislation.

SEC. 2. When used in this title, the term "agency" means any executive department, commission, independent establishment, corporation owned or controlled by the United States, board, bureau, division, service, office, authority, or administration, in the executive branch of the Government.

Post, pp. 1423, 1431.

Provisions prohibited in reorganization

SEC. 3. No reorganization plan under section 4 shall provide(a) For the abolition or transfer o an executive department or plans. all the functions thereof or for the establishment of any new executive department;

Abolition or transfer of an executive department, etc.

Transfer, abolition, eto., of designated

(b) In the case of the following agencies, for the transfer, consolidation, or abolition of the whole or any part of such agency or agencies. of its head, or of all or any of the functions of such agency or of its head: Civil Service Commission, Coast Guard, Engineer Corps of the United States Army, Mississippi River Commission, Federal Communications Commission, Federal Power Commission, Federal Trade Commission, General Accounting Office, Interstate Commerce Commission, National Labor Relations Board, Securities and Exchange Commission, Board of Tax Appeals, United States Employees' Compensation Commission, United States Maritime Commission, United States Tariff Commission, Veterans' Administration, National Mediation Board, National Railroad Adjustment Board, Railroad Retirement Board, the Federal Deposit Insurance Corporation, or the Board of Governors of the Federal Reserve System; or

Changing name or title of head of any executive department.

Continuation of agency or functions

(c) For changing the name of any executive department or the title of its head, or for designating any agency as "Department" or its head as "Secretary"; or

(d) For the continuation of any agency beyond the period author

beyond authorized pe- ized by law for the existence of such agency; or

riod.

of

Authorization functions not express

by authorized by law. not expressly authorized by law.

Findings by the President.

Preparation of reor ganization plan by President; provisions.

Designation, if neoessary, of name of agency, etc., affected.

Transfer, etc., of records, property, and personnel.

Transfer of appropriations.

Restriction.

Provision for winding up affairs of abol jabed agency.

Transmittal of plan to Congress.

Delivery to both

Houses on same day while in session.

Statement of prob

penditures.

(e) For the continuation of any function of any agency beyond the period authorized by law for the exercise of such function; or (f) For authorizing any agency to exercise any function which is SEO. 4. Whenever the President, after investigation, finds that(a) the transfer of the whole or any part of any agency or the functions thereof to the jurisdiction and control of any other agency; or

(b) the consolidation of the functions vested in any agency; or (c) the abolition of the whole or any part of any agency which agency or part (by reason of transfers under this Act or otherwise, or by reason of termination of its functions in any manner) does not have, or upon the taking effect of the reorganizations specified in the reorganization plan will not have, any functions,

is necessary to accomplish one or more of the purposes of section 1 (a), he shall

(d) prepare a reorganization plan for the making of the transfers, consolidations, and abolitions, as to which he has made findings and which he includes in the plan. Such plan shall also

(1) designate, in such cases as he deems necessary, the name of any agency affected by a reorganization and the title of its head;

(2) make provision for the transfer or other disposition of the records, property (including office equipment), and personnel affected by such transfer, consolidation, or abolition;

(3) 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 functions, or for the use of the agency to which the transfer is made, but such unexpended balances so transferred shall be used only for the purposes for which such appropriation is originally made; (4) make provision for winding up the affairs of the agency abolished; and

(e) transmit such plan (bearing an identifying number) to the Congress, together with a declaration that, with respect to each transfer, consolidation, or abolition referred to in paragraph (a), (b), or (c) of this section and specified in the plan, he has found that such transfer, consolidation, or abolition is necessary to accomplish one or more of the purposes of section 1 (a). The delivery to both Houses shall be on the same day and shall be made to each House while it is in session.

The President, in his message transmitting a reorganization plan, able reduction of ex- shall state the reduction of expenditures which it is probable will be brought about by the taking effect of the reorganizations specified in the plan.

Effective dates of reorganizations. Post, p. 813.

After sixty-day period; exception.

SEC. 5. The reorganizations specified in the plan shall take effect in accordance with the plan:

(a) Upon the expiration of sixty calendar days after the date on which the plan is transmitted to the Congress, but only if during such sixty-day period there has not been passed by the two Houses a con

current resolution stating in substance that the Congress does not favor the reorganization plan.

Effect of sine die adJournment before ex

(b) If the Congress adjourns sine die before the expiration of the sixty-day period, a new sixty-day period shall begin on the opening piration of period. day of the next succeeding regular or special session. A similar rule shall be applicable in the case of subsequent adjournments sine die before the expiration of sixty days.

Limitation on continuing any agency of

SEC. 6. No reorganization under this title shall have the effect(a) of continuing any agency or function beyond the time function beyond term. when it would have terminated if the reorganization had not been made; or

(b) of continuing any function beyond the time when the agency in which it was vested before the reorganization would have terminated if the reorganization had not been made; or

(c) of authorizing any agency to exercise any function which is not expressly authorized by law.

Exercise of any unauthorised function.

"Reorganization"

SEC. 7. For the purposes of this title any transfer, consolidation, defined. abolition, designation, disposition, or winding up of affairs, referred to in section 4 (d), shall be deemed a "reorganization".

Continuation of

SEC. 8. (a) All orders, rules, regulations, permits, or other privileges rules, privileges, etc. made, issued, or granted by or in respect of any agency or function transferred to, or consolidated with, any other 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 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 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 preceeding to obtain a settlement of the questions involved, may allow the same to be maintained by or against the head of the agency or other officer of the United States to whom the authority, powers, and duties are transferred.

(c) All laws relating to any agency or function transferred to, or consolidated with, any other agency or function under the provisions of this title, shall, insofar as such laws are not inapplicable, remain in full force and effect.

No proceeding to abate by reason of any transfer of authority,

etc.

Applicable laws to remain in force.

Unexpended appro

ury.

Separations resulting from personnel re

SEC. 9. The appropriations or portions of appropriations unex-priations, impounding pended by reason of the operation of this title shall not be used for and return to Treas any purpose, but shall be impounded and returned to the Treasury. SEC. 10. (a) Whenever the employment of any person is terminated by a reduction of personnel as a result of a reorganization effected under this title, such person shall thereafter be given preference, when qualified, whenever an appointment is made in the executive branch of the Government, but such preference shall not be effective for a period longer than twelve months from the date the employment of such person is so terminated.

duction; preferential status.

Duration.

Transfers without change in classifica

(b) Any transfer of personnel under this title shall be without change in classification or compensation, except that this require- tion, etc.; exception. ment shall not operate after the end of the fiscal year during which the transfer is made to prevent the adjustment of classification or compensation to conform to the duties to which such transferred personnel may be assigned.

Printing of reorgani

zation plan in Statutes

SEC. 11. If the reorganizations specified in a reorganization plan at Large and Federal take effect, the reorganization plan shall be printed in the Statutes at Large in the same volume as the public laws, and shall be printed in the Federal Register.

Register.

Time limitation for transmittal of plans.

Congressional rules for consideration of reorganization plans. Application.

Modification.

"Resolution"

fined.

Reference of resolution to committee.

Procedure for discharge of committee.

Motion to discharge, privileged status, debate, etc.

SEC. 12. No reorganization specified in a reorganization plan shall take effect unless the plan is transmitted to the Congress before January 21, 1941.

PART 2

SEC. 21. The following sections of this part are enacted by the Congress:

(a) As an exercise of the rule-making power of the Senate and the House of Representatives, respectively, and as such they shall be considered as part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in such House in the case of resolutions (as defined in section 22); and such rules shall supersede other rules only to the extent that they are inconsistent therewith; and

(b) With full recognition of the constitutional right of either House to change such rules (so far as relating to the procedure in such House) at any time, in the same manner and to the same extent as in the case of any other rule of such House.

SEC. 22. As used in this part, the term "resolution" means only a concurrent resolution of the two Houses of Congress, the matter after the resolving clause of which is as follows: "That the Congress does not favor the reorganization plan numbered transmitted to Congress by the President on 19", the blank spaces therein being appropriately filled; and does not include a concurrent resolution which specifies more than one reorganization plan. SEC. 23. A resolution with respect to a reorganization plan shall be referred to a committee (and all resolutions with respect to the same plan shall be referred to the same committee) by the President of the Senate or the Speaker of the House of Representatives, as the case may be.

SEO. 24. (a) If the committee to which has been referred a resolution with respect to a reorganization plan has not reported it before the expiration of ten calendar days after its introduction (or, in the case of a resolution received from the other House, ten calendar days after its receipt), it shall then (but not before) be in order to move either to discharge the committee from further consideration of such resolution, or to discharge the committee from further consideration of any other resolution with respect to such reorganization plan which has been referred to the committee.

(b) Such motion may be made only by a person favoring the resolution, shall be highly privileged (except that it may not be made after the committee has reported a resolution with respect to the same reorganization plan), and debate thereon shall be limited to not to exceed one hour, to be equally divided between those favoring to and those opposing the resolution. No amendment to such motion shall be in order, and it shall not be in order to move to reconsider the vote by which such motion is agreed to or disagreed to.

Not subject amendment or reconsideration.

Restriction on renewal after motion

(c) If the motion to discharge is agreed to or disagreed to, such agreed to or disagreed motion may not be renewed, nor may another motion to discharge the committees be made with respect to any other resolution with respect to the same reorganization plan.

to.

Procedure for consideration of resolu tion.

SEO. 25. (a) When the committee has reported, or has been dis charged from further consideration of, a resolution with respect to a reorganization plan, it shall at any time thereafter be in order (even though a previous motion to the same effect has been disagreed to)

26-364 0-698

to move to proceed to the consideration of such resolution. Such nction shall be highly privileged and shall not be debatable. No amendment to such motion shall be in order and it shall not be in order to move to reconsider the vote by which such moton is agreed to or disagreed to.

(b) Debate on the resolution shall be limited to not to exceed ten hours, which shall be equally divided between those favoring and those opposing the resolution. A motion further to limit debate shall not be debatable. No amendment to, or motion to recommit, the resolution shall be in order, and it shall not be in order to move to reconsider the vote by which the resolution is agreed to or disagreed to.

SEC. 26. (a) All motions to postpone, made with respect to the discharge from committee, or the consideration of, a resolution with respect to a reorganization plan, and all motions to proceed to the consideration of other business, shall be decided without debate.

(b) All appeals from the decisions of the Chair relating to the application of the rules of the Senate or the House of Representatives, as the case may be, to the procedure relating to a resolution with respect to a reorganization plan shall be decided without debate.

Procedure when resolution received from

SEC. 27. If, prior to the passage by one House of a resolution of that House with respect to a reorganization plan, such House receives other House. from the other House a resolution with respect to the same plan,

then

If no resolution of Arst House has been

(a) If no resolution of the first House with respect to such plan has been referred to committee, no other resolution with respect to the referred to committee. same plan may be reported or (despite the provisions of section 24 (a)) be made the subject of a motion to discharge.

(b) If a resolution of the first House with respect to such plan has been referred to committee

(1) the procedure with respect to that or other resolutions of such House with respect to such plan which have been referred to committee shall be the same as if no resolution from the other House with respect to such plan had been received; but

(2) on any vote on final passage of a resolution of the first House with respect to such plan the resolution from the other House with respect to such plan shall be automatically substituted for the resolution of the first House.

TITLE II-BUDGETARY CONTROL

If resolution been so referred.

Budget and Ac counting Act, 1921, Definitions. 42 Stat. 20. 31 U. 8. O. 2

SEC. 201. Section 2 of the Budget and Accounting Act, 1921 (U. S. C., 1934 edition, title 31, sec. 2), is amended by inserting after amendment. the word "including" the words "any independent regulatory commission or board and".

TITLE III-ADMINISTRATIVE ASSISTANTS

Administrative as sistants to the Presi

SEO. 301. The President is authorized to appoint not to exceed six administrative assistants and to fix the compensation of each at dent, appelntment, the rate of not more than $10,000 per annum. Each such administrative assistant shall perform such duties as the President may prescribe.

Approved, April 3, 1939.

compensation, etc. Post, p. 981.