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REORGANIZATION PLAN NO. 2 OF 1962 Prepared by the President and transmitted to the Senate and the House of Representa

tives in Čongress assembled, March 29, 1962, pursuant to the provisions of the Reorganization Act of 1949, 63 Stat. 203, as amended

CERTAIN SCIENCE AGENCIES AND FUNCTIONS

PART I. OFFICE OF SCIENCE AND TECHNOLOGY

SECTION 1. Office of Science and Technology. There is hereby established in the Executive Office of the Presideat the Office of Science and Technology, hereafter in this part referred to as the Office.

SEC. 2. Director and deputy. (a) There shall be at the head of the Office the Director of the Office of Science and Technology, hereafter in this Part referred to as the Director. The Director shall be appointed by the President by and with the advice and consent of the Senate and shall receive compensation at the rate of $22,500 per annum.

(b) There shall be in the Office a Deputy Director of the Office of Science and Technology, who shall be appointed by the President by and with the advice and consent of the Senate and receive compensation at the rate of $20,500 per annum. The Deputy Director shall perform such functions as the Director may from time to time prescribe and shall act as Director during the absence or disability of the Director or in the event of vacancy in the office of Director.

(C) No person shall while holding office as Director or Deputy Director engage in any other business, vocation, or employment.

SEC. 3. Transfer and performance of functions. (a) There are hereby transferred from the National Science Foundation to the Director:

(1) So much of the functions conferred upon the Foundation by the provisions of section 3(a) (1) of the National Science Foundation Act of 1950 (42 U.S.C. 1862 (a) (1)) as will enable the Director to advise and assist the President in achieving coordinated Federal policies for the promotion of basic research and education in the sciences.

(2) The functions conferred upon the Foundation by that part of section 3 (a) (6) of the National Science Foundation Act of 1950 (42 U.S.C. 1862 (a) (6)) which reads as follows: "to evaluate scientific research programs undertaken by agencies of the Federal Government."

(b) In carrying out the functions transferred by the provisions of section 3(a) of this reorganization plan, the Director shall assist the President as he may request with respect to the coordination of Federal scientific and technological functions and agencies.

(c) The Director may from time to time make such provisions as he deems appropriate authorizing the performance of any of his functions by any other officer, or by any employee or agency, of the Office.

SEC. 4. Personnel. The Director may appoint employees necessary for the work of the Office under the classified civil service and fix their compensation in accordance with the classification laws.

PART II. NATIONAL SCIENCE FOUNDATION

SEC. 21. Erecutive Committee. (a) There is hereby established the Executive Committee of the National Science Board, hereafter in this Part referred to as the Executive Committee, which shall be composed of five voting members. Four of the members shall be elected as hereinafter provided. The Director provided for in section 22 of this reorganization plan, ex officio, shall be the fifth member and the chairman of the Executive Committee.

(b) At its annual meeting held in 1964 and at each of its succeeding annual meetings the National Science Board, hereafter in this Part referred to as the Board, shall elect two of its members as members of the Executive Committee, and the Executive Committee members so elected shall hold office for two years from the date of their election. Any person who has been a member of the Executive Committee (established by this reorganization plan) for six consecutive years shall thereafter be ineligible for service as a member thereof during the two-year period following the expiration of such sixth year. For the purposes of this subsection, the period between any two consecutive annual meetings of the Board shall be deemed to be one year.

(c) At its first meeting held after the effective date of this section the Board shall elect four of its members as members of the Executive Committee. As designated by the Board, two of the Executive Committee members so elected shall hold office as such members until the date of the annual meeting of the Board held in 1964 and the other two members so elected shall hold such office until the annual meeting of the Board held in 1965.

(d) Any person elected as a member of the Executive Committee to fill a vacancy occurring prior to the expiration of the term for which his predecessor was elected shall be elected for the remainder of such term.

(e) The functions conferred upon the Executive Committee now existing under the provisions of the National Science Foundation Act of 1950, by the provisions of section 6 of the National Science Foundation Act of 1950 (42 U.S.C. 1865) or otherwise, are hereby transferred to the Executive Committee established by the provisions of this Part; and the authority of the National Science Board to assign its powers and functions to the now-existing Executive Committee, and statutory limitations upon such assignment, shall hereafter be applicable to the Executive Committee established by the provisions of this Part.

Sec. 22. Director. (a) There is hereby established in the National Science Foundation a new office with the title of Director of the National Science Foundation. The Director of the National Science Foundation, hereafter in this Part referred to as the Director, shall be appointed by the President by and with the advice and consent of the Senate. Before any person is appointed as Director the President shall afford the Board an opportunity to make recommendations to him with respect to such appointment. The Director shall receive compensation at the rate of $21,000 per annum and shall serve for a term of six years unless sooner removed by the President. The Director shall not engage in any business, vocation or employment other than that of serving as such Director, nor shall he, except with the approval of the Board, hold any office in, or act in any capacity for, any organization, agency, or institution with which the Foundation makes any contract or other arrangement under the National Science Foundation Act of 1950.

(b) Except to the extent inconsistent with the provisions of section 23(b) (2) of this reorganization plan, all functions of the office of Director of the National Science Foundation abolished by the provisions of 23(a) (2) hereof are hereby transferred to the office of Director established by the provisions of subsection (a) of this section.

(c) The Director, ex officio, shall be an additional member of the Board and, except in respect of compensation and tenure, shall be coordinate with other members of the Board. He shall be a voting member of the Board and shall be eligible for election by the Board as chairman or vice chairman of the Board.

SEC. 23. Abolitions. (a) The following agencies, now existing under the National Science Foundation Act of 1950, are hereby abolished :

(1) The Executive Committee of the National Science Board (section 6 of Act; 42 U.S.C. 1865).

(2) The office of Director of the National Science Foundation (sections 2 and 5 of Act; 42 U.S.C. 1861; 1864).

(b) There are also hereby abolished:

(1) The functions conferred upon the National Science Board by that part of section 6(a) of the National Science Foundation Act of 1950 (42 U.S.C. 1865(a)) which reads: "The Board is authorized to appoint from among its members an Executive Committee”.

(2) The functions of the Director of the National Science Foundation provided for in sections 4(a) and 5(a) of the National Science Foundation Act of 1950 (42 U.S.C. 1863(a) ; 1864 (a)) with respect to serving as a nonvoting member of the Board and his functions with respect to serving as a nonvoting member of the Executive Committee provided for in section 6(b) of that Act (42 U.S.C. 1865 (b)).

(3) So much of the functions conferred upon divisional committees by the provisions of section 8(d) of the National Science Foundation Act of 1930 (42 U.S.C. 1867 (d)) as consists of making recommendations to, and advising and consulting with, the Board.

(c) The provisions of sections 23 (a) (1) and 23 (b) (1) hereof shall become effective on the date of the first meeting of the Board held after the effective date of the other provisions of this reorganization plan.

83254-62- -2

PART III. TRANSITIONAL PROVISIONS SEC. 31. Incidental transfers. (a) So much of the personnel, property, records, and unexpended balances of appropriations, allocations, and other funds employed, held, used, available, or to be made available, in connection with the functions transferred by the provisions of section of this reorganization plan as the Director of the Bureau of the Budget shall determine shall be transferred to the Office of Science and Technology at such time or times as the said Director shall direct.

(b) Such further measures and dispositions as the Director of the Bureau of the Budget shall deem to be necessary in order to effectuate the transfers provided for in subsection (a) of this section shall be carried out in such manner as he shall direct and by such agencies as he shall designate.

SEC. 32. Interim officers. (a) The President may authorize any person who immediately prior to the effective date of Part I of this reorganization plan holds a position in the Executive Office of the President to act as Director of the Office of Science and Technology until the office of Director is for the first time filled pursuant to the provisions of this reorganization plan or by recess appointment, as the case may be.

(b) The President may authorize any person who immediately prior to the effective date of section 22 of this reorganization plan holds any office existing under the provisions of the National Science Foundation Act of 1950 to act as Director of the National Science Foundation until the Office of Director is for the first time filled pursuant to the provisions of this reorganization plan or by recess appointment, as the case may be.

(c) The President may authorize any person who serves in an acting capacity under the foregoing provisions of this section to receive the compensation attached to the office in respect of which he so serves. Such compensation, if authorized, shall be in lieu of, but not in addition to, other compensation from the United States to which such person may be entitled.

(H. Res. 595, 87th Cong., 2d sess.)

RESOLUTION

Resolved, That the House of Representatives does not favor the Reorganization Plan Numbered 2 of 1962 transmitted to Congress by the President on March 29, 1962.

Our first witness will be Mr. Elmer Staats, Deputy Director of the Bureau of the Budget. Mr. Staats, will you introduce the gentlemen who are with you?

STATEMENT OF ELMER B. STAATS, DEPUTY DIRECTOR, BUREAU

OF THE BUDGET; ACCOMPANIED BY HAROLD SEIDMAN, ACTING ASSISTANT DIRECTOR, OFFICE OF MANAGEMENT AND ORGANIZATION; AND CLIFFORD BERG, OFFICE OF MANAGEMENT AND ORGANIZATION

Mr. STAATS. Mr. Seidman at my right is the Acting Director of our Office of Management and Organization; and Mr. Clifford Berg, next to him, is on his staff and has spent a great deal of time on this problem.

I would like to say, Mr. Chairman, at the outset, it is always a pleasure for me personally and for the Bureau to have the opportunity to appear before this committee, with which we have had such very long and cordial relationships.

I have a fairly brief prepared statement, Mr. Chairman. With permission, I will read this and then stand ready to answer any questions the committee may have.

your

The CHAIRMAN. I would like to introduce the Members of Congress who are here. Mr. Anderson just came in. He is the author of the resolution. Mr. Brown. And Mr. Smith of Iowa.

Mr. Staats.

Mr. STAATS. Thank you. I am pleased to appear before your committee in support of Reorganization Plan No. 2 of 1962, to establish an Office of Science and Technology in the Executive Office of the President and to make certain reorganizations within the National Science Foundation.

The plan was transmitted by the President to the House of Representatives and the Senate on March 29, 1962, pursuant to the provisions of the Reorganization Act of 1949, as amended.

The basic purposes of the reorganization plan are to (1) provide the President with the permanent staff resources which he believes are necessary to advise and assist him on matters of national policy affected by or pertaining to science and technology; and (2) strengthen the administration of the National Science Foundation.

The principal provisions of Reorganization Plan No. 2 of 1962 may be summarized as follows:

Part I of the reorganization plan establishes the Office of Science and Technology as a new unit within the Executive Office of the President. Provision is made for appointment by the President, by and with the advice and consent of the Senate, of a Director, who would head the Office, and a Deputy Director.

There would be transferred to the Director, in whole or in part, certain functions now vested by law in the National Science Foundation, namely (1) to develop and encourage the pursuit of a national policy for the promotion of basic research and education in the sciences- I would like to point out at this juncture, Mr. Chairman, to emphasize that “in part” here is important with respect to this first item because here we are dealing with a policy function which is now vested by law in the National Science Foundation.

This, we see, is being transferred, such part of it as is worded in section 3(a) (1) of the plan to enable the Director of this Office to advise the President in the formulation of policies in the field of science and technology.

It is not transferred, in other words, in toto in this particular item. (2) To evaluate scientific research programs undertaken by agencies of the Federal Government.

These functions can be carried out more appropriately and effectively at the Executive Office level since they involve a number of agencies. The National Science Foundation, of course, would continue to be responsible for developing and proposing national policies concerning matters for which it has primary concern.

In carrying out the functions transferred to him by part I of the plan, the Director shall assist the President as he may request with respect to the coordination of Federal scientific and technological functions and agencies.

Part II of the reorganization plan provides for certain reorganizations designed to enhance the administrative effectiveness of the Director of the National Science Foundation. The new office of Director established under the plan is strengthened by (1) making the Director, ex officio, a member of the National Science Board

he is not now a member-on a basis coordinate with that of other Board members; (2) substituting for the now-existing Executive Committee of the National Science Board a new executive committee composed of the Director, ex officio, as a voting member and chairman, and of four other members elected by the National Science Board from among its appointive members; and (3) providing that committees advisory to each of the divisions of the Foundation shall make their recommendations only to the Director, rather than to both the Director and the National Science Board.

The new arrangements incorporated in part I of the reorganization plan will enable the President to deal more effectively with the varied and increasingly complex problems which confront the Government in an era of scientific and technological revolution.

It is not necessary to dwell upon the impact of science and technology on our lives and the programs of our Government. The evidence is all around us. Federal expenditures for research and development, for example, have been increasing at a phenomenal rate--from $100 million per year in the late 1930's—this was as late as 1940– to over $12 billion per year at present.

The exact figure here, Mr. Chairman, is $12.3 billion for the entire Federal Government.

Science and technology have entered into our national life in a pervasive way, creating new relationships and dependencies between Government and private educational and industrial organizations. These influences have made themselves felt in the framing of national and international policies and have become a matter of major importance to Gorernment administrators and the Congress. Correspondingly, new and unprecedented demands have been placed on public officials to understand and deal with science and technology effectively in its new dimensions.

A number of significant steps have been taken in recent years by the President and the Congress to make those adjustments in organizational arrangements required by the rapid and far-reaching changes in the nature and size of Federal scientific and technological programs. These steps include

(1) Establishment of the National Science Foundation in 1950, which many members of this committee had an interest in and participated in.

(2) Creation of the Office of Special Assistant to the President for Science and Technology in 1957 by President Eisenhower.

(3) Transfer of the Science Advisory Committee, composed of eminent non-Government scientists and engineers, from the Office of Defense Mobilization to the White House Office in 1957. The Committee was reconstituted as the President's Science Advisory Committee and would continue in the White House Oflice under the current proposal.

(4) Establishment of the Federal Council for Science and Technology, composed of policy officials of the principal agencies engaged in scientific and technical activities in 1959. This is an interdepartmental coordinating committee made up of the principal policy and scientific officers of the Government.

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