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JOHN L . M C C L E L L A N , A R K . , C H A I R M A N JOSEPH R . M C C A R T H Y , W I S . K A R L E. M U N D T , S . D A K . MARGARET CHASE SMITH, MAINE ANDREW F . SCHOEPPEL, KANS. HENRY C. D W O R S H A K , IDAHO RICHARD M . NIXON, CALIF. C L Y D E R . HOEY, N i C . H E R B E R T R . O'CONOR, M D . HUBERT H. HUMPHREY, MINN. W I L L I A M BENTON, CONN. A. W I L L I S R O B E R T S O N , V A . MIKE MONRONEY, OKLA. WALTER L . REYNOLDS, CHIEF CLERK J£>{cAe& Veneris COMMITTEE ON E X P E N D I T U R E S IN T H E E X E C U T I V E DEPARTMENTS February 22, lg>l Hon* Marriner S# Eccles Board of Governors Federal Reserve System Washington, D* C* Dear Mr. Eccles: The attached b i l l , S# 913, would amend the Legislative Reorganization Act of 19h6 to provide for more effective evaluation of the fiscal requirements of the executive agencies of the Government of the tfiiited States* I t closely resembles S* 28$>8, introduced in the 8lst Congress• Hearings are planned on this proposed legislation i n the near future• W i l l you please therefore send the Committee your views and recommendations, i n triplicate, at the earliest possible date? Thanking you for your attention to this matter, I am Sincerely yours, Chairman Attachment JIM:rb ACONGRESS 1ST SESSION C F A J ^ A I N T H E SENATE OF T H E U N I T E D STATES FEBRUARY 19 (legislative day, JANUARY 2 9 ) , 1951 Mr. M C C L E I X A N introduced the following bill; which was read twice and referred to the Committee on Expenditures in the Executive Departments A BILL To amend the Legislative Reorganization Act of 1946 to provide for more effective evaluation of the fiscal requirements of the executive agencies of the Government of the United States. 1 Be it enacted by the Senate and House of Represent®~ 2 tives of the United States of America in Congress assembled, 3 That section 138 of the Legislative Reorganization Act of 4 1946, as amended, is hereby amended to read as follows: 5 "JOINT COMMITTEE oar THE BUDGET 6 "SEC. 138. (a) There is hereby created a joint service 7 committee, to be known as the Joint Committee on the 8 Budget (hereinafter in this section called the 'joint commit- 9 tee'jT^ncQo be composed of ten members as follows: 2 " (1) Tive Members who are members of the Commit- 1 2 tee on Appropriations of the Senate, three from the majority 3 party and two from the minority party, to be chosen by 4 such committee; and 5 " (2) Five Members who are members of the Commit- 6 tee on Appropriations of the House of Representatives, 7 three from the majority party and two from the minority 8 party, to be chosen by such committee. 9 " (b) No person shall continue to serve as a member 10 of the joint committee after he has ceased to be a member 11 of the committee from which he was chosen, except that 12 the members chosen by the Committee on Appropriations 13 of the House of Representatives who have been reelectedjto 14 the House of Representatives^ may continue to serve as 15 members of the joint committee notwithstanding the expira- 16 tion of the Congress. A vacancy in the joint committee 17 shall not affect the power of the remaining members to 18 execute the functions of the joint committee, and shall be 19 filled in the same manner as the original selection, except 20 that (1) in case of a vacancy during an adjournment or 21 recess of Congress for a period of more than two weeks, 22 the members of the joint committee who are members of 23 the committee entitled to fill such vacancy may designate 24 a member of such committee to serve until his successor 25 is chosen by such committee, and (2) in the case of a 3 1 vacancy after the expiration of a Congress which would 2 be filled from the Committee on Appropriations of the 3 House of Representatives, the members of such committee 4 who are continuing to serve as members of the joint com- 5 mittee, may designate a person who, immediately prior to 6 such expiration, was a member of such committee and who 7 is reelected to the House of Representatives, to serve until 8 his successor is chosen by such committee. 9 "(c) The joint committee shall elect a chairman and 10 vice chairman from among its members at the first regular 11 meeting of each session: Provided, however, That during 12 even years the chairman shall be selected from among the 13 members who are Members of the House of Eepresentatives 14 and the vice chairman shall be selected from among the 15 members who are Members of the Senate, and during odd 16 years the chairman shall be selected from among the mem17 bers who are Members of the Senate and the vice chairman 18 shall be selected from among the members who are Members 19 of the House of Representatives. 20 " ( d ) A majority of the Members of each House who 21 are members of the joint committee shall together con- 22 stitute a quorum for the transaction of business, but a lesser 23 number, as determined by the joint committee, may con- 24 stitute a subcommittee and be authorized to conduct hear- 25 ings and make investigations. Any member of a sub- 4 1 committee so designated shall constitute a quorum for the 2 conduct of any hearing or investigation, but the concurrence 3 of a majority of the members of such subcommittee shall 4 be necessary before any report or findings may be siib- 5 mitted to the joint committee. 6 7 "(e) It shall be the duty of the joint committee— "(1) (A) to inform itself on all matters relating 8 to the annual budget of the agencies of the United 9 States Government, during and after the preparation 10 thereof; (B) to provide the Committee on Appropria- 11 tions of the House of Representatives and the Com- 12 mittee on Appropriations of the Senate with such in- 13 formation on items contained in such budget, and the 14 justifications submitted in support thereof, as may be 15 necessary to enable said committees to give adequate 16 consideration thereto; and (C) to consider all available 117 information relating to estimated revenues,[hicluding J.8 revenue estimates of the Joint Committee on Internal 19 Revenue TaxationTjessential programs, and changing 20 economic conditions, and, on the basis thereof, report to 21 said committees findings relating televisions in apprp- 22 priations required to hold expenditures to the minimum , 23 consistent with the requirements of Government opera- 24 tions and national security^ 25 "(2) to recommend to the appropriate standing 5 1 committees of the House of Representatives and the 2 Senate such changes in existing laws as may effect 3 greater efficiency and economy in government; 4 " ( 3 ) to make such reports and recommendations 5 to any standing committee of either House of Congress 6 or any subcommittee thereof on matters within the 7 jurisdiction of such standing committee relating to devia- 8 tions from basic legislative authorization, or in relation 9 to appropriations approved by Congress which are not 10 consistent with such basic legislative authorization, as 11 may be deemed necessary or advisable by the joint 12 committee, or as may be requested by any standing 13 committee of either House of Congress or by any sub- 14 committee thereof. 15 The j 0 i n t committee, or any subcommittee thereof, 1® shall have power to hold hearings and to sit and a€t any17 where within or without the District of Columbia whether 1® the Congress is in session or has adjourned or is in recess; to require by subpena or otherwise the attendance of wit20 nesses and the production of books, papers, and documents; 21 to administer oaths; to take testimony; to have printing 22 and binding done; and to make such expenditures as it deems advisable within the amount appropriated therefor. 24 Sub- penas shall be issued under the signature of the chairman or S. 913 2 6 1 vice chairman of the committee and shall be served by Any 2 person designated by them. The provisions of sections 102 3 to 104, inclusive, of the Revised Statutes (U. S. 0., title 2, 4 sees. 192-194) 5 any witness to comply with any subpena or to testify when 6 summoned under authority-^f-this section. C^l 7 8 9 10 11 12 13 14 15 j / 16 17 18 19 20 21 / "(g) ;25 — ~ The joint committee shall, without regard to the civil-service laws or the Classification Act of 1949, as amended, employ and fix the compensation of a staff director and such other professional, technical, clerical, and other employees, temporary or permanent, as may be necessary to carry out the duties of the joint committee, and all such employees shall be appointed without regard to political affiliation and solely on the ground of fitness to perform the duties to which they may be assigned: Provided, however, That/the services of any such employee/may be terminated by the concurrence of a majority of the members of the joint committee. No person shall be employed by the joint com- mittee until a thorough investigation as to loyalty and security shall have been made by the Federal Bureau of Investigation and a favorable report on said investigation submitted to the chairman or vice chairman. ) 23 24 — shall apply in the case of any failure of J^h) The joint committee shall assign members of its staff (1) to assist the staff of the Committee on Appropriations of the House of Representatives and the several sub- 7 1 committees thereof during the periods when appropriation 2 bills are pending in the House of Representatives, and (2) to 3 assist the staff of the Committee on Appropriations of the 4 Senate and the several subcommittees thereof during the 5 periods when appropriation bills are pending in the Senate. 6 At other times the staff of the joint committee shall serve the 7 joint committee directly. (jf) 8 " (i) Employees of the joint committee, upon the writ- 9 ten authority of the chairman or vice chairman, shall have 10 the right to examine the books, documents, papers, reports, 11 preliminary and other estimates of budget requirements, or 12 other records of any agency of the United States Govern- 13 ment within or without the District of Columbia: Provided, 14 however, That such employees shall not be permitted access 15 to books, documents, papers, reports, estimates, records, or 16 any other thing containing information classified for security 17 purposes unless specifically authorized by the joint com18 mittee to receive such types of classified information. 19 " (j ) It shall be the duty of each agency of the Govern- 20 ment to supply to the joint committeeman^)copies of any 21 budgetary request submitted to the Bureau of the Budget, 22 |which the joint committee or any subcommittee thereof may 23 request^ either for regular or supplemental appropriations 24 required for each fiscal year, with the detailed justifications 25 in support thereof. ^Members of the staff of the joint com 8 1 mittee are authorized to attend hearings of the Bureau of 2 the Budget at which representatives of agencies justify their 3 budgetary requests.^J " (k) Qualified members of the staff of the Bureau of 4 5 the Budget shall, at the request of the Committee on Ap6 propriations of the House of Representatives or the Senate, ! 1 ^ or any subcommittee thereof, be assigned to attend executive ! 8 sessions of the subcommittees of the Appropriations Com- 9 mittees and to explain the content and basis of proposed 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 appropriations. CM r (tyyWhen used in this section, the term 'agency' means any executive department, commission, council, independent establishment, Government corporation, board, bureau, division, service, office, officer, authority, administration, or other establishment, in the executive branch of the Government. Such term includes the Comptroller General of the United States and the General Accounting Office, and includes any and all parts of the municipal government of the District of Columbia except the courts thereof. ^(mpThere are hereby authorized to be appropriated such sums as may be necessary to carry out the purposes of this section. Appropriations for the expenses of the joint committee shall be disbursed by the Secretary of the Senate upon vouchers signed by the chairman or vice chairman." Jfcroh 8, 1951. HonoraDI* Jahm U ;«Cl*ilan# United - t a t - e n a t a , Washington C« j*slr : «aiitor .cOIslien: tbis will «cknowledge your letter of February 1/5>1, *itn which wa® attached youi olLl yl3 wbich would attend ti® Legislative heor^enlsatioa Act ax lyU6 to provide for trie sore effective evaluation the fiscal requirement* of tow ej&ecutive agencies of jovirB»s(« i f youFTUV# is similar In t r a y :*tb~taaUai respect to introduced in the dint usogroas. Icu nay recall taat at your request 1 soon!tted ay views on * • by latter dated February i j f copies oi wslch 1 an enclosing for /our ready reference, rjy vieva «ith reference to i • yl3 are genera 1.1/ eisLlar to tfcote *hich I &*prs&sed eith reference to • 1 fc*l t&at son* legislation of fcbis *ind i* aeede-2 and tact you arc to fee contended for your S3&& tractive efforts in UiU direction, The b i l l pro* videt for an organisation and adequate procedures vhicn snoul4 enable the Con&resirecurs information estential to proper consideration jf the complex problem Involved in tee appropriation requests of the various executive agencies. If 1 canfeeof an/ further aseist&nce to you in connection with tbi* natter, please let m know, *ita kindest personal regards, I an incerel/ yours. .v. eccles* iitto«igw WHTsclh 2/28/51