Legislative Summary: Government Reorganization


Civil Aeronautics Board 
Reorganization Plan No. 3 — Effective July 3, 1961
To relieve the members of the Civil Aeronautics Board from the necessity of dealing with many matters of lesser importance and thus conserve their time for the consideration of major matters of policy and planning.

S. 2034 — Public Law 87-192, approved August 31, 1961 
As a substitute for Reorganization Plan No. II, this bill provides for facilitating the work of the FCC and improving its administrative process.

Federal Trade Commission 
Reorganization Plan No. 4 of 1961 — Effective July 9, 1961 
To provide flexibility in handling the business before the Federal Trade Commission and to permit its disposition at different levels to promote greater efficiency. 


Interstate Commerce Reorganization 
H.R. 8033 — Public Law 87-247, approved September 14, 1961 
Grants the ICC Commissioners the authority to establish boards of three or more qualified employees for reviewing recommended orders entered in cases in which hearings have been held.

Maritime Commission 
Organization Plan No. 7 — Effective August 12, 1961 
This reorganization plan establishes a five-member Federal Maritime Commission. The members are to be appointed by the President and confirmed by the Senate, and are subject to removal by the President for inefficiency, neglect of duty, and malfeasance in office. The President will designate the Chairman. As Chairman, he will receive $500 a year more than the $20,000 yearly salary provided for the other commissioners.

The plan abolishes the present three-member Maritime Board, and separates its functions between the Department of Commerce and the new statutory commission.

The Department of Commerce is to be charged with the award of subsidies and promotional functions of the old board, and the new Commission is to be responsible for the regulatory functions of the old board.

Reorganization Authority 
S. 153 — Public Law 87-18, approved April 7, 1961 
To continue the practice established by the Hoover Commission, this measure reinstates the authority granted to the President by the Reorganization Act of 1949, to submit reorganization plans to the Congress for reorganizations in the executive branch of the Government. This authority will expire on June 1, 1963.

As provided in the act of 1949, the plans will become law unless disapproved by a majority of either the House or Senate by adopting a resolution of disapproval within 60 calendar days after the plan is submitted to Congress.


Army Department Reorganization 
Effective February 17, 1962 
Congress by unanimous approval permitted the Department of the Army to reorganize the command and management structures of the Army. The reorganization abolished certain command offices established by law; improved the organizational structure so it will respond quickly and effectively to varied threats across the whole spectrum of conflict from cold to limited to general war.

The reorganization plan was submitted to the Armed Services Committees of Congress on January 17, 1962, subject to disapproval by Congress within 30 days. No disapproval resolutions were introduced.

Office of Science and Technology 
Reorganization Plan No. II — Became effective June 8, 1962  
This plan, as approved unanimously by Congress, establishes the Office of Science and Technology as a new unit within the Executive Office of the President to be headed by a Director appointed by the President and confirmed by the Senate, with a deputy appointed in the same manner.

Under this arrangement the President will have permanent staff resources capable of advising and assisting him on matters of national policy affected by or pertaining to science and technology such as —

Major policies, plans, and programs of science and technology of the various agencies of the Federal Government giving appropriate emphasis to the relationship of science and technology to national security and foreign policy.

Assessment of selected scientific and technical developments and programs in relation to their impact on national policies.

Review, integration, and coordination of major Federal activities in science and technology.

Assuring that good and close relations exist with the Nation's scientific and engineering communities so as to further in every appropriate way their participation in strengthening science and technology in the United States and the free world.

The plan also prides for certain reorganizations within the National Science Foundation to strengthen the capability of the Director of the Foundation to exert leadership and otherwise further the effectiveness of administration of the Foundation. Specifically it

Establishes a new Office of Director of the National Science Foundation.

Substitutes for the now existing Executive Committee of the National Science Board a new Executive Committee, consisting of the Director of the Foundation, ex officio, as a voting member and Chairman of the Committee, and of four other members elected by the Board from among its appointive members.

Requires the advisory committees to each of the divisions of the Foundation to make their recommendations only to the Director rather than to both the Director and the National Science Board.

SEC Reorganization 
S. 2135 — Public Law 87-592, approved August 20, 1962
As a substitute for Reorganization Plan No. 1 of 1961, this bill authorizes the Securities and Exchange Commission to delegate any of its functions by published order or rule to a division of the Commission, an individual Commissioner, a hearing examiner, or an employee or employee board except rulemaking functions as defined in the Administrative Procedure Act.


SEC Reforms 
S. 1642 — Passed Senate July 30; pending in House Interstate and Foreign Commerce Committee 
Extends to approximately 5,600 industrial, utility, and banking concerns whose stocks are traded over the counter, the financial disclosure, proxy and insider-trading requirements that have applied since 1934 to companies listed on stock exchanges.

The second major objective of the bill is to strengthen the standards of entrance into the securities business, enlarge the scope of self-regulation, and strengthen Commission disciplinary controls over brokers, dealers, and their employees.

Specifically the bill extends the reporting rules to over-the-counter companies with gross assets of $1 million or more with at least 750 stockholders on enactment of the legislation and 2 years later to those with at least 500 holders.

The bill also provides that present Federal banking regulators, rather than the SEC, will supervise the new reporting provisions when banks are involved.