155.40 PART 10.-SUGAR; Cocoa; CONFECTIONERY SUBPART A.-SUGARS, SIRUPS, AND MOLASSES Subpart A headnotes: 1. The term "degree", as used in the "Rates of Duty" columns of this subpart, means sugar degree as determined by polariscopic test. 2. The rates in column numbered 1 in items 155.20 and 155.30 on January 1, 1968, shall be effective only during such time as title II of the Sugar Act of 1948 or substantially equivalent legislation is in effect in the United States, whether or not the quotas, or any of them, authorized by such legislation, are being applied or are suspended: Provided, (i) That, if the President finds that a particular rate not lower than such January 1, 1968, rate, limited by a particular quota, may be established for any articles provided for in item 155.20 or 155.30, which will give due consideration to the interests in the United States sugar market of domestic producers and materially affected contracting parties to the General Agreement on Tariffs and Trade, he shall proclaim such particular rate and such quota limitation, to be effective not later than the 90th day following the termination of the effectiveness of such legislation; (ii) That any rate and quota limitation so established shall be modified if the President finds and proclaims that such modification is required or appropriate to give effect to the above considerations; and (iii) That the January 1, 1968, rates shall resume full effectiveness, subject to the provisions of this headnote, if legislation substantially equivalent to title II of the Sugar Act of 1948 should subsequently become effective. [Molasses, including dried molasses, imported for use other О 0.012e per lb. 2 0.03€ per lb. of total sugars. 90TH CONGRESS HOUSE OF REPRESENTATIVES 2d Session REPORT No. 1832 APPOINTMENTS TO BE MADE WITHOUT REGARD JULY 31, 1968.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. MILLS, from the Committee on Ways and Means, REPORT To accompany H.R. 18985] The Committee on Ways and Means, to whom was referred the bill (H.R. 18985) to amend the Revenue and Expenditure Control Act of 1968, to provide a pool of 14,000 additional appointments which may be made without regard to the employee ceilings of section. 201 of that act, having considered the same, report favorably thereon without amendment and recommend that the bill do pass. I. SUMMARY This bill modifies the employee limitation relating to full-time permanent civilian employees in the executive branch of the Government contained in section 201 of the Revenue and Expenditure Control Act of 1968. The modification permits the Director of the Bureau of the Budget to authorize the filling of up to 14,000 positions in addition to those which may be filled under section 201. This also is in addition to positions which may be filled under any other provision of law. This authority is intended to provide greater flexibility in the application of the employee limitation during the transition period and also to give Congress an opportunity later this fall to reconsider problems which have arisen under this provision. II. GENERAL STATEMENT Reasons for provision.-Section 201 of the Revenue and Expenditure Control Act of 1968 provides limitations as to the number of civilian employees in the executive branch of the Government which may be hired. One part of this provision relates to permanent, fulltime employees, and another part to temporary or part-time employees. In the case of full-time permanent employees, this section provides that on an agency-by-agency or department-by-department basis only 3 out of 4 vacancies which occur after June 30, 1968 may be filled until the overall level of this type of Government employment is reduced to the level of June 30, 1966. The June 30, 1966 level of employment was 2,366,317. The current employment level is 259,080 above the June 30, 1966 level. The temporary and part-time employment level provided by the act for each agency or department varies on a month-by-month basis so as not to exceed its employment level in the corresponding month in the calendar year 1967. Temporary and part-time employment during 1967 varied from 307,000 to 422,000. In the case of the employment limitation for both full-time permanent employees, and also temporary and part-time employees, the Director of the Bureau of the Budget is given the authority to reassign vacancies which could be filled from one department or agency to another when in his opinion this reassignment is necessary or appropriate because of the creation of a new department or agency, or because of a change in functions, or in order to obtain the more efficient operation of the Government. Since these employee limitations have come into effect, problems have arisen as to their application, particularly as to the application of the provision relating to permanent full-time employees. This is reflected, for example, in the requests which the Director of the Bureau of the Budget has received from various agencies for reassignment of vacancies to them because of what the agencies view as a critical or emergency need. As of July 30, the Director had received requests from specific agencies for the reassignment of approximately 20,000 vacancies. Some of these requests were of an emergency nature in which immediate action was requested, while others were to fulfill needs, as the agency saw them, over the entire fiscal year 1969. In addition, other agencies have sought congressional assistance in obtaining exemption from the employee ceiling. This has occurred in the case of TVA power employees, FAA air traffic employees, Post Office field service employees, FBI employees and assistant U.S. attorneys, naval shipyard construction employees, and, most recently, social security and medical care employees of HEW. Your committee has been informed that these agencies involve approximately 30 percent of the total Federal permanent full-time employment. Your committee, in sessions on 4 different days in recent weeks, has considered the problems presented by the employee ceiling provision and the reaction to it by various Federal agencies. However, it has been difficult to reach any final conclusions as yet on modifications which may be needed in the employee ceiling. To date it has been impossible to obtain statistical information with respect to employment needs in the various agencies on any comprehensive basis, and the opportunity to analyze any such information has, of course, not been available. Moreover, since the limitations have been in effect only 1 month, neither your committee nor the executive agencies have had an adequate opportunity to examine the impact of the limitation. Of course, any limitation on employment probably will be viewed by some executive agencies as undesirable. Your committee believes, however, that there are places in the executive branch where employment can be reduced without disruption of the Federal Government, and that modifications of the limitation may be in order as a means of achieving this end. Your committee concluded that it would be desirable to have more time to consider the impact of the employee ceiling before it becomes fully effective. This will give the committee an opportunity to consider modifications which may be needed with respect to it. In addition, it is clear, based upon testimony presented to your committee that there are a number of transitional problems which arise in connection with this employee limitation. Many agencies, for example, traditionally hire graduates to begin work in July. In many of these cases commitments were outstanding before the first of July which under the employee limitation could not be honored. In other cases, agencies had deferred June hiring and found as a result that they could not regain their normal employment level after the first of July. Moreover, some agencies are engaged in priority functions which must be carried out. The employee limitation may be impeding work of these agencies. The extent to which the above factors require temporary, emergency relief from the employee limitation has been difficult to determine. However, it has been possible for the committee to analyze this problem by considering it from another point of view. The Director of the Bureau of the Budget informed your committee that the rule permitting the filling of only three out of four vacancies would, if carried out without exemption, in the fiscal year 1969 result in a reduction in civilian permanent full-time employment of about 120,000 or an average of 10,000 a month. In addition, he informed your committee that the increase in this type of employment called for in the 1969 budget amounted to approximately 45,000 positions. However, it is assumed that the expenditure reduction of $6 billion provided in section 202 of the Revenue and Expenditure Control Act of 1968 will reduce this figure by something like 15,000 positions. As a result, the total number of positions called for in the budget, as reduced by the $6 billion expenditure cut, which cannot be filled under present law is expected to amount to approximately 150,000 on an annual basis. Your committee concluded that, in order both to meet the transitional problem and also to provide more time to reconsider problems which arise under the employee limitation, it would be desirable to provide a pool of positions which the Budget Director could use primarily in July, August, and September to meet immediate needs as they arise. In September, after the congressional recess, it is anticipated that more information will be available to the Congress as to the impact of the employee ceiling and the problems arising under this provision. At that time the employee ceiling may be reconsidered and modifications in it developed if Congress should consider this desirable. In the interim, your committee's bill will provide a degree of flexibility in the administration of the employee limitation which is consistent with the basic purpose of the limitation. It also will fulfill the need for a transitional rule to meet temporary emergency problems arising in the first quarter of the fiscal year 1969. The pool of positions which this bill provides is, therefore, intended primarily to relieve the transitional and emergency situation arising in the first 3 months of the fiscal year. Your committee believes that this approach represents a much better temporary solution to the current problem than the piecemeal removal of agencies from the employee ceiling. The latter course is inconsistent with the basic purpose of the limitation and may well more than meet the needs of some agencies by in effect giving them unneeded positions, but not meet the needs of other agencies at all. The size of the pool of positions provided in the bill to the Budget Director is 14,000. This figure represents slightly more than half of the vacancies which it is expected cannot be filled during the first 3 months of the fiscal year under the rule relating to the filling of only three out of four vacancies. This does not take into account vacancies in the postal field service where Congress appears likely to exempt those employees from the employment ceiling. Explanation of provision. Your committee's bill adds a new subsection to section 201 of the Revenue and Expenditure Control Act of 1968, the provision providing limitations on the number of civilian officers and employees in the executive branch. Under this provision, during any period when appointments are limited because of the June 30, 1966 ceiling, the Director of the Bureau of the Budget nevertheless may permit any department or agency head to appoint persons to full-time permanent civilian positions in the executive branch without regard to either the June 30, 1966 limitation or the requirement that only three out of four vacancies may be filled. The Director's authority in this regard is limited in that he may authorize the appointment of no more than 14,000 persons in this manner. These appointments are in addition to any appointments authorized under any other provision of law. Vacancies which subsequently occur with regard to positions filled pursuant to this authority are, of course, to be taken into account in applying the limitation that only three out of four vacancies may be filled. As previously indicated, it is expected that the Director of the Budget will authorize the use of these appointments in the first quarter of the fiscal year 1969 to the extent he believes they are needed although there is no limitation of the period over which these positions may be filled. It is recognized, of course, that the Director in evaluating requests for positions cannot, in the short period of time available, examine in detail the operations of each department or agency and must, therefore, make general judgments in his allocations. It is expected that the Director of the Bureau of the Budget will stay in close contact with your committee as to the use of the authority provided under this provision as well as to inform the committee as to the development of any new problems under the employee limitation. III. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED In compliance with clause 3 of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as reported, are shown as follows (new matter is printed in italic, existing law in which no change is proposed is shown in roman): |