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REORGANIZATION PLAN NO. 2 OF 1967, CONCERNING THE U.S. TARIFF COMMISSION AND WAYS TO PROMOTE ITS MORE EFFICIENT OPERATION

MARCH 9, 1967.-Referred to the Committee on Government Operations and ordered to be printed with accompanying papers

To the Congress of the United States:

I am transmitting Reorganization Plan No. 2 of 1967, concerning the U.S. Tariff Commission.

The plan is a step toward fulfilling my pledge to the American people that government must be reshaped to meet the tasks of today. It underscores my convicition that progress can be achieved by building upon what is strong and enduring, but that we shall never hesitate to discard what is inefficient or outmoded.

This plan has a single, clear objective-to strengthen the operations of the Tariff Commission by transferring to its Chairman certain routine executive and administrative functions now divided among its six Commissioners.

In taking this long overdue step, the plan adopts a proven concept of good management recommended by the first Hoover Commission: in the interests of efficiency purely administrative functions-budgeting, personnel supervision, and general management-should be vested in the chairman of a commission rather than diffused throughout the commission.

This principle was followed by each of my predecessors--Presidents Harry S. Truman, Dwight D. Eisenhower, and John F. Kennedy.

It has been applied successfully to most of our Commissions, including

The Federal Trade Commission.

The Securities and Exchange Commission.
The U.S. Civil Service Commission.

The Federal Home Loan Bank Board.

The reorganization plan I recommend will extend it to the Tariff Commission.

The Tariff Commission plays a key role in safeguarding the Nation's economic vitality. It reviews our commercial policies and studies how these policies affect competition between foreign and domestic products. Periodically, after public investigation, the Commission reports to Congress and the President concerning the effect of imports on our domestic industries and our workers.

The Commission's tasks are demanding and complex. They require skill and careful judgment. Often, the Commission must work under intense time pressure.

The plan forward today will promote efficient operation of the Tariff Commission by

Centralizing and consolidating in a single executive-the Chairman-the purely administrative functions of the Commission; and

Freeing the other Commissioners from these routine burdens so they can devote full time to investigative and advisory responsibilities.

Thus, the plan transfers, from the Commission as a whole to the Chairman of the Commission, these duties:

Overall management of the Commission's activities;

Direction and supervision of the employees of the Commission; Personnel actions, such as hiring, promotion, salary, transfer, removal of Commission employees; and

Allocation and use of funds appropriated to the Commission. This plan will allow the Nation's businessmen and workers-and indeed every citizen-to reap the benefits of modern and effective government.

As a result of this plan, the Tariff Commission will be managed more efficiently. It is too early, however, to estimate the exact dollar savings that will flow from these improved operations.

This plan was prepared in accordance with chapter 9 of title 5 of the United States Code.

After investigation I have found, and I hereby declare, that each reorganization included in the accompanying plan is necessary to accomplish one or more of the purposes set forth in section 901(a) of title 5.

I urge Congress to permit this reorganization plan to become effective. LYNDON B. JOHNSON.

THE WHITE HOUSE, March 9, 1967.

REORGANIZATION PLAN NO. 2 OF 1967

Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, March 9, 1967, pursuant to the provisions of chapter 9 of title 5 of the United States Code

UNITED STATES TARIFF COMMISSION

SECTION 1. Transfer of functions. Subject to the provisions of section 2(a) of this reorganization plan, the executive and administrative functions of the United States Tariff Commission (hereinafter referred to as the Commission), including the following-described functions of the Commission, are hereby transferred from the Commission to the Chairman of the Commission (hereinafter referred to as the Chairman):

(1) The appointment and removal of personnel employed under the Commission.

(2) The distribution of business among such personnel and among administrative units of the Commission.

(3) The direction of personnel who perform, or who supervise the performance of, any function of the Commission or of the Chairman or of any agency under the Commission.

(4) The communication to personnel employed under the Commission of applicable Commission policies to be followed by such personnel in the performance of their work and the subsequent enforcement of such policies.

(5) The overall management, functioning and organization of the Commission, including (i) the formulation and implementation of plans and policies designed to increase the effectiveness of the Commission in the administration of the laws it is charged with administering and the initiation of ways and means of correcting or preventing avoidable delays in the performance of any work or the disposition of any business before the Commission, and (ii) the development and improvement of staff support to carry out the functions of the Com

mission.

(6) The functions of the Commission under the Budget and Accounting Act, 1921, as amended.

(7) The allocation, use, and expenditure of funds available to the Commission.

(8) The calling of the Commission into special session whenever any matter or business of the Commission so requires, but in any event for the consideration of any matter or business upon request of not less than two other members of the Commission.

SEC. 2. Performance of transferred functions. (a) (1) In carrying out any of his functions under the provisions of section 1 hereof the Chairman shall be governed by general policies of the Commission.

(2) The appointment by the Chairman of the heads of major administrative units under the Commission shall be subject to the approval of the Commission.

(3) Personnel employed regularly and full time in the immediate offices of Commission members other than the Chairman shall not be affected by the provisions of this reorganization plan.

(4) Requests for regular, supplemental, or deficiency appropriations for the Commission (prepared by or under the Chairman in pursuance of section 214 of the Budget and Accounting Act, 1921, as amended (31 U.S.C. 22) and as affected by this reorganization plan) shall require the approval of the Commission prior to the submission of the requests to the Bureau of the Budget by the Chairman.

(b) The Chairman may from time to time make such provisions as he shall deem appropriate authorizing the performance by any officer, employee, or administrative unit under his jurisdiction of any function transferred to the Chairman by the provisions of this reorganization plan.

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Staff Memorandum No. 90-1-13.

APRIL 3, 1967.

Subject: Reorganization Plan No. 2 of 1967, Concerning the United States Tariff Commission and Ways To Promote Its More Efficient Operations. Reorganization Plan No. 2 of 1967 was submited by the President on March 9, 1967, and referred to the Subcommittee on Executive Reorganization on March 13. Hearings on Plan No. 2 have been scheduled for May 3, 1967. Unless disapproved by a majority vote of either House of the Congress, it will become effective on May 19, 1967. The original effective date, May 9, was extended for an additional 10 days pursuant to the provisions of the Reorganization Act of 1949, as amended, which requires the exclusion of any period of adjournment of either House in excess of three days.

Hearings on Plan No. 2 were held on March 21, 1967 by the Subcommittee on Executive and Legislative Reorganization of the House Committee on Government Operations. H. Res. 405, to disapprove Reorganization Plan No. 2, was introdeed in the House of Representatives by Representative Erlenborn on the same day.

PURPOSE OF THE PLAN

The purpose of Reorganization Plan No. 2 of 1967 is to strengthen the operations of the Tariff Commission by transferring to its Chairman certain executive and administrative functions which are now shared jointly among its six commissioners. The functions which would be transferred are (1) appointing, directing and removing personnel; (2) distributing business among, and communicating Commission policies to, the staff: (3) overall management, functioning and organization of the Commission; (4) carrying out Commission functions under the Budgeting and Accounting Act; and (5) allocating, using and expending funds available to the Commission. Under the provisions of the Plan, the Chairman would be governed by the general policies of the Commission in the performance of these functions.

According to the President's message tarnsmitting Plan No. 2, it "* * is a step toward fulfilling my pledge to the American people that government must be reshaped to meet the tasks of today. It underscores my conviction that progress can be achieved by building upon what is strong and enduring, but that we shall never hesitate to discard what is inefficient or outmoded."

Continuing further, the President said that “* * * in taking this long overdue step. the plan adopts a proven concept of good management recommended by the first Hoover Commission: in the interests of efficiency purely administrative functions-budgeting, personnel supervision, and general management—should be vested in the chairman of a commission rather than diffused throughout the commission."

After noting that this principle was followed by each of his predecessors in office since President Harry S. Truman, and that it has been applied successfully to the Federal Trade Commission, the Securities and Exchange Commission, the U.S. Civil Service Commission and the Federal Home Loan Bank Board, the President summed up the role of the Tariff Commission as follows:

The Tariff Commission plays a key role in safeguarding the Nation's economic vitality. It reviews our commercial policies and studies how these policies affect competition between foreign and domestic products. Pe78-826-67-2

riodicaly, after public investigation, the Commission reports to Congress and the President concerning the effect of imports on our domestic industries and our workers.

The Commission's tasks are demanding and complex. They require skill and careful judgment. Often the Commissioners must work under intense time pressure.

In concluding his message, the President said:

This plan will allow the Nation's businessmen and workers-and indeed every citizen-to reap the benefits of modern and effective government. As a result of this plan, the Tariff Commission will be managed more efficiently *

PROVISIONS OF THE PLAN

Section 1 transfers, subject to the limitations contained in section 2(a) of the plan, the executive and administrative functions of the United States Tariff Commission to the Chairman of the Commission, including the following specified functions:

(1) the appointment and removal of personnel employed under the Commission; (2) the distribution of business among such personnel and among administrative units of the Commission; (3) the direction of personnel who perform, or who supervise the performance of, any function of the Commission or of the Chairman or of any agency under the Commission; (4) the communication to personnel employed under the Commission of applicable Commission policies to be followed by such personnel in the performance of their work and the subsequent enforcement of such policies; (5) the overall management, functioning and organization of the Commission, including (i) the formulation and implementation of plans and policies designed to increase the effectiveness of the Commission in the administration of the laws it is charged with administering and the initiation of ways and means of correcting or preventing avoidable delays in the performance of any work or the disposition of any business before the Commission, and (ii) the development and improvement of staff support to carry out the functions of the Commission; (6) the functions of the Commission under the Budget and Accounting Act, 1921, as amended; (7) the allocation, use and expenditure of funds available to the Commission; and (8) the calling of the Commission into special session whenever any matter or business of the Commission so requires, but in any event for the consideration of any matter or business upon request of not less than two other members of the Commission.

Section 2(a) provides that (1) the Chairman shall be governed by general policies of the Commission, in carrying out any of his functions under the provisions of section 1 hereof; (2) the appointment by the Chairman of the heads of major administrative units under the Commission shall be subject to Commission approval; (3) personnel employed regularly and full time in the immediate offices of Commission members, other than the Chairman, shall not be affected by the provisions of this plan; and (4) requests for regular, supplemental or deficiency appropriations for the Commission (prepared by or under the Chairman pursuant to section 214 of the Budget and Accounting Act, 1921, as amended, and as affected by this reorganization plan) shall require approval of the Commission prior to the submission of the requests to the Bureau of the Budget by the Chairman.

Section 2(b) authorizes the Chairman to delegate, as he deems appropriate, any of the functions transferred to him by provisions of this plan.

PLAN NO. 2 AND RECOMMENDATIONS OF THE FIRST COMMISSION ON THE ORGANIZATION OF THE EXECUTIVE BRANCH OF THE GOVERNMENT (HOOVER COMMISSION)

In view of the reference by the President to the recommendations of the first Hoover Commission, in his message transmitting Plan No. 2, pertinent portions thereof are set forth below.

The first Hoover Commission in its report on Regulatory Commissions found that "*** purely executive duties—those that can be performed far better by a single administrative official-have been imposed upon these commissions with the result that these duties have sometimes been performed badly. The necessity for performing them has interfered with the performance of the strictly regulatory functions of the commissions. * * * Administrative direction has not developed within the commissions. Their chairmen are too frequently merely presiding officers at commission meetings. No one has been responsible for planning and guiding the general progress of commission activity."

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