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TITLE 31-MONEY AND FINANCE

This title was enacted by Pub. L. 97-258, §1, Sept. 13, 1982, 96 Stat. 877

TITLE REFERRED TO IN OTHER SECTIONS

This title is referred to in title 12 sections 93, 1464, 1722d, 1786, 1818; title 26 section 60501; title 40 section 490b; title 49 section 24301.

SUBTITLE I-GENERAL

CHAPTER 1-DEFINITIONS

§ 101. Agency

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3332 of this title.

CHAPTER 3-DEPARTMENT OF THE TREASURY

SUBCHAPTER I-ORGANIZATION

§301. Department of the Treasury

OFFICE OF SECRETARY OF THE TREASURY;
COMPENSATION

Pub. L. 105-61, title I, §116, Oct. 10, 1997, 111 Stat. 1284, provided that:

"(a)(1) Effective beginning on the date determined under paragraph (2), the compensation and other emoluments attached to the Office of Secretary of the Treasury shall be those that would then apply if Public Law 103-2 (107 Stat. 4; 31 U.S.C. 301 note) had never been enacted.

"(2) Paragraph (1) shall become effective on the later of

"(A) the day after the date on which the individual holding the Office of Secretary of the Treasury on January 1, 1997, ceases to hold that office; or

"(B) the date of the enactment of this Act [Oct. 10, 1997].

"(3) Nothing in this subsection shall be considered to affect the compensation or emoluments due to any individual in connection with any period preceding the date determined under paragraph (2).

"(b) Subsection (b) of the first section of the public law referred to in subsection (a)(1) of this section shall not apply in the case of any appointment the consent of the Senate to which occurs on or after the date of the enactment of this Act.

"(c) This section shall not be limited (for purposes of determining whether a provision of this section applies or continues to apply) to fiscal year 1998."

CROSS REFERENCES

Appointment of Chief Counsel of Internal Revenue Service, see section 7803 of Title 26, Internal Revenue Code.

§306. Fiscal Service

REIMBURSEMENT OF FINANCIAL MANAGEMENT SERVICE AND BUREAU OF THE PUBLIC DEBT

Pub. L. 105-277, div. A, §101(h) [title I], Oct. 21, 1998, 112 Stat. 2681-480, 2681-486, provided in part: "That notwithstanding any other provisions of law, effective

Page 23

upon enactment [Oct. 21, 1998] and thereafter, the Bureau of the Public Debt shall be fully and directly reimbursed by the funds described in section 104 of Public Law 101-136 (103 Stat. 789) [set out below] for costs and services performed by the Bureau in the administration of such funds."

Similar provisions were contained in Pub. L. 105-61, title I, Oct. 10, 1997, 111 Stat. 1279.

SUBCHAPTER II-ADMINISTRATIVE

§ 321. General authority of the Secretary [See main edition for text of (a)]

(b) The Secretary may

[See main edition for text of (1) to (4)]

(5) authorize, at rates and under conditions prescribed by the Secretary, the private use of telephone lines controlled by the Department when the use does not interfere with Department business;

(6) buy arms and ammunition required by officers and employees of the Department in carrying out their duties and powers; and

(7) notwithstanding any other provision of law, fulfill any requirement to issue a report on the financial condition of any fund on the books of the Treasury by including the required information in a consolidated report, except that information with respect to a specific fund shall be separately reported if the Secretary determines that the consolidation of such information would result in an unwarranted delay in the availability of such information.

[See main edition for text of (c) to (e)] (As amended Pub. L. 104-66, title I, § 1132(b), Dec. 21, 1995, 109 Stat. 725.)

AMENDMENTS

1995 Subsec. (b)(7). Pub. L. 104-66 added par. (7). USE OF AIRCRAFT IN EMERGENCY LAW ENFORCEMENT SUPPORT

Pub. L. 104-52, title I, § 107, Nov. 19, 1995, 109 Stat. 476, provided that: "The Secretary of the Treasury is authorized in fiscal year 1996 and hereafter, to use Treasury Department aircraft, with or without reimbursement, to assist bureaus within the Department of the Treasury or other Federal agencies, Departments or offices outside of the Department of the Treasury to provide emergency law enforcement support to protect human life, property, public health, or safety."

§ 330. Practice before the Department

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in title 26 sections 6103, 7525.

CHAPTER 5-OFFICE OF MANAGEMENT AND

BUDGET

SUBCHAPTER I-ORGANIZATION

§ 501. Office of Management and Budget

TRANSFER OF FUNCTIONS

Pub. L. 104-53, title II, §211, Nov. 19, 1995, 109 Stat. 535, as amended by Pub. L. 104-316, title II, §203, Oct. 19, 1996, 110 Stat. 3845, provided that: "Personnel transferred pursuant to this section, as in effect immediately before the effective date of section 303 [203] of the General Accounting Office Act of 1996 [Pub. L. 104-316, Oct. 19, 1996], shall not be separated or reduced in classification or compensation for one year after any such transfer, except for cause."

USE OF PRIVATE ENTERPRISES

Pub. L. 106-53, title II, § 227, Aug. 17, 1999, 113 Stat. 298, provided that:

"(a) IN GENERAL.-The Secretary [of the Army] shall comply with the requirements of the Federal Activities Inventory Reform Act of 1998 (31 U.S.C. 501 note; Public Law 105-270).

"(b) COMPLIANCE WITH OTHER LAW.—

"(1) INVENTORY AND REVIEW.-In carrying out this section, the Secretary shall inventory and review all activities that are not inherently governmental in nature in accordance with the Federal Activities Inventory Reform Act of 1998.

"(2) ARCHITECTURAL AND ENGINEERING SERVICES.Any review and conversion by the Secretary to performance by private enterprise of an architectural or engineering service (including a surveying or mapping service) shall be carried out in accordance with title IX of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 541 et seq.)."

FEDERAL ACTIVITIES INVENTORY REFORM

Pub. L. 105-270, Oct. 19, 1998, 112 Stat. 2382, provided that:

"SECTION 1. SHORT TITLE.

"This Act may be cited as the 'Federal Activities Inventory Reform Act of 1998'.

"SEC. 2. ANNUAL LISTS OF GOVERNMENT ACTIVITIES NOT INHERENTLY GOVERNMENTAL IN NATURE.

"(a) LISTS REQUIRED.-Not later than the end of the third quarter of each fiscal year, the head of each executive agency shall submit to the Director of the Office of Management and Budget a list of activities performed by Federal Government sources for the executive agency that, in the judgment of the head of the executive agency, are not inherently governmental functions. The entry for an activity on the list shall include the following:

"(1) The fiscal year for which the activity first appeared on a list prepared under this section.

"(2) The number of full-time employees (or its equivalent) that are necessary for the performance of the activity by a Federal Government source.

"(3) The name of a Federal Government employee responsible for the activity from whom additional information about the activity may be obtained. "(b) OMB REVIEW AND CONSULTATION.-The Director of the Office of Management and Budget shall review the executive agency's list for a fiscal year and consult with the head of the executive agency regarding the content of the final list for that fiscal year. "(c) PUBLIC AVAILABILITY OF LISTS.

"(1) PUBLICATION.-Upon the completion of the review and consultation regarding a list of an executive agency

"(A) the head of the executive agency shall promptly transmit a copy of the list to Congress and make the list available to the public; and

"(B) the Director of the Office of Management and Budget shall promptly publish in the Federal

Register a notice that the list is available to the public.

"(2) CHANGES.-If the list changes after the publication of the notice as a result of the resolution of a challenge under section 3, the head of the executive agency shall promptly

"(A) make each such change available to the public and transmit a copy of the change to Congress; and

"(B) publish in the Federal Register a notice that the change is available to the public.

"(d) COMPETITION REQUIRED.-Within a reasonable time after the date on which a notice of the public availability of a list is published under subsection (c), the head of the executive agency concerned shall review the activities on the list. Each time that the head of the executive agency considers contracting with a private sector source for the performance of such an activity, the head of the executive agency shall use a competitive process to select the source (except as may otherwise be provided in a law other than this Act, an Executive order, regulations, or any executive branch circular setting forth requirements or guidance that is issued by competent executive authority). The Director of the Office of Management and Budget shall issue guidance for the administration of this subsection.

"(e) REALISTIC AND FAIR COST COMPARISONS.-For the purpose of determining whether to contract with a source in the private sector for the performance of an executive agency activity on the list on the basis of a comparison of the costs of procuring services from such a source with the costs of performing that activity by the executive agency, the head of the executive agency shall ensure that all costs (including the costs of quality assurance, technical monitoring of the performance of such function, liability insurance, employee retirement and disability benefits, and all other overhead costs) are considered and that the costs considered are realistic and fair.

"SEC. 3. CHALLENGES TO THE LIST.

"(a) CHALLENGE AUTHORIZED.-An interested party may submit to an executive agency a challenge of an omission of a particular activity from, or an inclusion of a particular activity on, a list for which a notice of public availability has been published under section 2. "(b) INTERESTED PARTY DEFINED.-For the purposes of this section, the term 'interested party', with respect to an activity referred to in subsection (a), means the following:

"(1) A private sector source that

"(A) is an actual or prospective offeror for any contract, or other form of agreement, to perform the activity; and

"(B) has a direct economic interest in performing the activity that would be adversely affected by a determination not to procure the performance of the activity from a private sector source.

"(2) A representative of any business or professional association that includes within its membership private sector sources referred to in paragraph (1).

"(3) An officer or employee of an organization within an executive agency that is an actual or prospective offeror to perform the activity.

"(4) The head of any labor organization referred to in section 7103(a)(4) of title 5, United States Code, that includes within its membership officers or employees of an organization referred to in paragraph (3).

"(c) TIME FOR SUBMISSION.-A challenge to a list shall be submitted to the executive agency concerned within 30 days after the publication of the notice of the public availability of the list under section 2.

"(d) INITIAL DECISION.-Within 28 days after an executive agency receives a challenge, an official designated by the head of the executive agency shall"(1) decide the challenge; and

"(2) transmit to the party submitting the challenge a written notification of the decision together with a

discussion of the rationale for the decision and an explanation of the party's right to appeal under subsection (e).

"(e) APPEAL.

"(1) AUTHORIZATION OF APPEAL.-An interested party may appeal an adverse decision of the official to the head of the executive agency within 10 days after receiving a notification of the decision under subsection (d).

"(2) DECISION ON APPEAL.-Within 10 days after the head of an executive agency receives an appeal of a decision under paragraph (1), the head of the executive agency shall decide the appeal and transmit to the party submitting the appeal a written notification of the decision together with a discussion of the rationale for the decision.

"SEC. 4. APPLICABILITY.

"(a) EXECUTIVE AGENCIES COVERED.-Except as provided in subsection (b), this Act applies to the following executive agencies:

"(1) EXECUTIVE DEPARTMENT.-An executive department named in section 101 of title 5. United States Code.

*(2) MILITARY DEPARTMENT.-A military department named in section 102 of title 5, United States Code.

"(3) INDEPENDENT ESTABLISHMENT.-An independent establishment, as defined in section 104 of title 5, United States Code.

"(b) EXCEPTIONS.-This Act does not apply to or with respect to the following:

"(1) GENERAL ACCOUNTING OFFICE.-The General Accounting Office.

"(2) GOVERNMENT CORPORATION.-A Government corporation or a Government controlled corporation, as those terms are defined in section 103 of title 5. United States Code.

"(3) NONAPPROPRIATED FUNDS INSTRUMENTALITY.—A part of a department or agency if all of the employees of that part of the department or agency are employees referred to in section 2105(c) of title 5. United States Code.

"(4) CERTAIN DEPOT-LEVEL MAINTENANCE AND REPAIR.-Depot-level maintenance and repair of the Department of Defense (as defined in section 2460 of title 10, United States Code).

"SEC. 5. DEFINITIONS. "In this Act:

"(1) FEDERAL GOVERNMENT SOURCE.-The term 'Federal Government source', with respect to performance of an activity, means any organization within an executive agency that uses Federal Government employees to perform the activity.

"(2) INHERENTLY GOVERNMENTAL FUNCTION.—

"(A) DEFINITION.-The term 'inherently governmental function' means a function that is so intimately related to the public interest as to require performance by Federal Government employees.

"(B) FUNCTIONS INCLUDED.-The term includes activities that require either the exercise of discretion in applying Federal Government authority or the making of value judgments in making decisions for the Federal Government, including judgments relating to monetary transactions and entitlements. An inherently governmental function involves, among other things, the interpretation and execution of the laws of the United States so as

"(i) to bind the United States to take or not to take some action by contract, policy, regulation. authorization, order, or otherwise;

"(ii) to determine, protect, and advance United States economic, political, territorial, property, or other interests by military or diplomatic action, civil or criminal judicial proceedings, contract management, or otherwise;

"(iii) to significantly affect the life, liberty, or property of private persons;

"(iv) to commission, appoint, direct, or control officers or employees of the United States; or

"(v) to exert ultimate control over the acquisition, use, or disposition of the property, real or personal, tangible or intangible, of the United States, including the collection, control, or disbursement of appropriated and other Federal funds.

"(C) FUNCTIONS EXCLUDED.-The term does not normally include

“(i) gathering information for or providing advice, opinions, recommendations, or ideas to Federal Government officials; or

"(ii) any function that is primarily ministerial and internal in nature (such as building security, mail operations, operation of cafeterias, housekeeping, facilities operations and maintenance, warehouse operations, motor vehicle fleet management operations, or other routine electrical or mechanical services).

"SEC. 6. EFFECTIVE DATE.

"This Act shall take effect on October 1, 1998."

PURPOSE OF AMENDMENTS BY PUB. L. 104-316 Pub. L. 104-316, title II, §201, Oct. 19, 1996, 110 Stat. 3842, provided that: "The purpose of this title [see Tables for classification] is to amend provisions of law to reflect, update, and enact transfers and subsequent delegations of functions made under section 211 of the Legislative Branch Appropriations Act, 1996 (Public Law 104-53, 109 Stat. 535) [see Transfer of Functions note above], as in effect immediately before this title takes effect [Oct. 19, 1996]."

DEPARTMENT OF COMMERCE FRANCHISE FUND PILOT

Pub. L. 106-113, div. B, §1000(a)(1) [title II, § 209], Nov. 29, 1999, 113 Stat. 1535, 1501A-33, provided in part: "That an amount not to exceed 4 percent of the total annual income to such fund [Commerce Franchise Fund] may be retained in the fund for fiscal year 2000 and each fiscal year thereafter, to remain available until expended, to be used for the acquisition of capital equipment, and for the improvement and implementation of department financial management, ADP, and other support systems: Provided further, That such amounts retained in the fund for fiscal year 2000 and each fiscal year thereafter shall be available for obligation and expenditure only in accordance with section 605 of this Act [113 Stat. 1535, 1501A-52]: Provided further, That no later than 30 days after the end of each fiscal year, amounts in excess of this reserve limitation shall be deposited as miscellaneous receipts in the Treasury: Provided further, That such franchise fund pilot program shall terminate pursuant to section 403(f) of Public Law 103-356 [set out below]."

Similar provisions were contained in the following prior appropriation act:

Pub. L. 105-277, div. A. §101(b) [title II, § 209], Oct. 21, 1998, 112 Stat. 2681-50, 2681-87.

DEPARTMENT OF THE INTERIOR FRANCHISE FUND PILOT

Pub. L. 104-208, div. A, title I. §101(d) [title I, § 113], Sept. 30, 1996, 110 Stat. 3009-181, 3009-200, provided that: "There is hereby established in the Treasury a franchise fund pilot, as authorized by section 403 of Public Law 103-356 [set out below], to be available as provided in such section for costs of capitalizing and operating administrative services as the Secretary determines may be performed more advantageously as central services: Provided, That any inventories, equipment, and other assets pertaining to the services to be provided by such fund, either on hand or on order, less the related liabilities or unpaid obligations, and any appropriations made prior to the current year for the purpose of providing capital shall be used to capitalize such fund: Provided further, That such fund shall be paid in advance from funds available to the Department and other Federal agencies for which such centralized services are performed, at rates which will return in full all expenses of operation, including accrued leave, depre

ciation of fund plant and equipment, amortization of automatic data processing (ADP) software and systems (either acquired or donated) and an amount necessary to maintain a reasonable operating reserve, as determined by the Secretary: Provided further, That such fund shall provide services on a competitive basis: Provided further, That an amount not to exceed four percent of the total annual income to such fund may be retained in the fund for fiscal year 1997 and each fiscal year thereafter, to remain available until expended, to be used for the acquisition of capital equipment, and for the improvement and implementation of Department financial management, ADP, and other support systems: Provided further. That no later than thirty days after the end of each fiscal year amounts in excess of this reserve limitation shall be transferred to the Treasury: Provided further, That such franchise fund pilot shall terminate pursuant to section 403(f) of Public Law 103–356."

DEPARTMENT OF THE TREASURY FRANCHISE FUND

PILOT

Pub. L. 104-208, div. A, title I, § 101(f) [title I], Sept. 30, 1996, 110 Stat. 3009-314, 3009-316, provided in part that: "There is hereby established in the Treasury a franchise fund pilot, as authorized by section 403 of Public Law 103-356 [set out below], to be available as provided in such section for expenses and equipment necessary for the maintenance and operation of such financial and administrative support services as the Secretary determines may be performed more advantageously as central services: Provided, That any inventories, equipment, and other assets pertaining to the services to be provided by such fund, either on hand or on order, less the related liabilities or unpaid obligations, and any appropriations made for the purpose of providing capital, shall be used to capitalize such fund: Provided further, That such fund shall be reimbursed or credited with the payments, including advanced payments, from applicable appropriations and funds available to the Department and other Federal agencies for which such administrative and financial services are performed, at rates which will recover all expenses of operation, including accrued leave, depreciation of fund plant and equipment, amortization of Automatic Data Processing (ADP) software and systems, and an amount necessary to maintain a reasonable operating reserve, as determined by the Secretary: Provided further. That such fund shall provide services on a competitive basis: Provided further, That an amount not to exceed 4 percent of the total annual income to such fund may be retained in the fund for fiscal year 1997 and each fiscal year thereafter, to remain available until expended, to be used for the acquisition of capital equipment and for the improvement and implementation of Treasury financial management, ADP, and other support systems: Provided further, That no later than 30 days after the end of each fiscal year, amounts in excess of this reserve limitation shall be deposited as miscellaneous receipts in the Treasury: Provided further, That such franchise fund pilot shall terminate pursuant to section 403(f) of Public Law 103–356."

DEPARTMENT OF VETERANS AFFAIRS FRANCHISE FUND

PILOT

Pub. L. 104-204, title I, Sept. 26, 1996, 110 Stat. 2880, provided in part that: "There is hereby established in the Treasury a franchise fund pilot, as authorized by section 403 of Public Law 103-356 [set out below], to be available as provided in such section for expenses and equipment necessary for the maintenance and operation of such administrative services as the Secretary determines may be performed more advantageously as central services: Provided, That any inventories, equipment and other assets pertaining to the services to be provided by the franchise fund, either on hand or on order, less the related liabilities or unpaid obligations, and any appropriations made hereafter for the purpose of providing capital, shall be used to capitalize the

franchise fund: Provided further, That the franchise fund may be paid in advance from funds available to the Department and other Federal agencies for which such centralized services are performed, at rates which will return in full all expenses of operation, including accrued leave, depreciation of fund plant and equipment, amortization of automated data processing (ADP) software and systems (either acquired or donated), and an amount necessary to maintain a reasonable operating reserve, as determined by the Secretary: Provided further, That the franchise fund shall provide services on a competitive basis: Provided further, That an amount not to exceed four percent of the total annual income to such fund may be retained in the fund for fiscal year 1997 and each fiscal year thereafter, to remain available until expended, to be used for the acquisition of capital equipment and for the improvement and implementation of Departmental financial management, ADP, and other support systems: Provided further, That no later than thirty days after the end of each fiscal year amounts in excess of this reserve limitation shall be transferred to the Treasury: Provided further, That such franchise fund pilot shall terminate pursuant to section 403(f) of Public Law 103-356."

ENVIRONMENTAL PROTECTION AGENCY FRANCHISE FUND

PILOT

Pub. L. 104-204, title III, Sept. 26, 1996, 110 Stat. 2912, as amended, formerly set out as a note under this section, was transferred and is classified to section 4370e of Title 42, The Public Health and Welfare. FEDERAL EMERGENCY MANAGEMENT AGENCY FRANCHISE FUND PILOT

Pub. L. 104-204, title III, Sept. 26, 1996, 110 Stat. 2915, provided in part: "For the establishment of a working capital fund for the Federal Emergency Management Agency, to be available without fiscal year limitation, for expenses and equipment necessary for maintenance and operations of such administrative services as the Director determines may be performed more advantageously as central services: Provided, That any inventories, equipment, and other assets pertaining to the services to be provided by such fund, either on hand or on order, less the related liabilities or unpaid obligations, and any appropriations made hereafter for the purpose of providing capital, shall be used to capitalize such fund: Provided further, That such fund shall be reimbursed or credited with advance payments from applicable appropriations and funds of the Federal Emergency Management Agency, other Federal agencies, and other sources authorized by law for which such centralized services are performed, including supplies, materials, and services, at rates that will return in full all expenses of operation, including accrued leave, depreciation of fund plant and equipment, amortization of automated data processing (ADP) software and systems (either acquired or donated), and an amount necessary to maintain a reasonable operating reserve as determined by the Director: Provided further, That income of such fund may be retained, to remain available until expended, for purposes of the fund: Provided further, That fees for services shall be established by the Director at a level to cover the total estimated costs of providing such services, such fees to be deposited in the fund shall remain available until expended for purposes of the fund: Provided further, That such fund shall terminate in a manner consistent with section 403(f) of Public Law 103-356 [set out below]."

FRANCHISE FUND PILOT PROGRAMS

Pub. L. 103-356, title IV, §403, Oct. 13, 1994, 108 Stat. 3413, as amended by Pub. L. 104-208, div. A, title I, § 101(f) [title VI, §627], Sept. 30, 1996, 110 Stat. 3009-314, 3009-360, provided that:

[See main edition for text of (a) to (e)]

"(f) TERMINATION.-The provisions of this section shall expire on October 1, 2001."

SIMPLIFICATION OF MANAGEMENT REPORTING PROCESS

Pub. L. 103-356, title IV, §404, Oct. 13, 1994, 108 Stat. 3414, as amended by Pub. L. 104-208, div. A, title I, §101(f) [title VI, §646], Sept. 30, 1996, 110 Stat. 3009-314, 3009-366; Pub. L. 106-113, div. B, §1000(a)(5) [title II, §241], Nov. 29, 1999, 113 Stat. 1536, 1501A-303, provided that:

[See main edition for text of (a)]

"(b) APPLICATION.-The authority provided in subsection (a) shall apply only to reports of agencies to the Office of Management and Budget or the President and of agencies or the Office of Management and Budget to the Congress required by statute to be submitted between January 1, 1995, and April 30, 2000.

[See main edition for text of (c)]

EXECUTIVE ORDER NO. 12301

Executive Order No. 12301, Mar. 26, 1981, 46 F.R. 19211, as amended by Ex. Ord. No. 13118. § 10(5), Mar. 31, 1999, 64 F.R. 16598, which established the President's Council on Integrity and Efficiency in Federal programs, was revoked by Ex. Ord. No. 12625, Jan. 27, 1988, 53 F.R. 2812, formerly set out below.

EXECUTIVE ORDER NO. 12552

Ex. Ord. No. 12552, Feb. 25, 1986, 51 F.R. 7041, which provided for establishment of a comprehensive program for improvement of productivity throughout all Executive departments and agencies, was superseded by Ex. Ord. No. 12637, Apr. 27, 1988, 53 F.R. 15349, formerly set out below, and was revoked by Ex. Ord. No. 13048, §5, June 10, 1997, 62 F.R. 32469, set out below.

EXECUTIVE ORDER NO. 12637

Ex. Ord. No. 12637, Apr. 27, 1988, 53 F.R. 15349, which established a productivity improvement program for the Federal Government, was revoked by Ex. Ord. No. 13048, §5. June 10, 1997, 62 F.R. 32469, set out below.

EXECUTIVE ORDER NO. 12816

Ex. Ord. No. 12816, Oct. 14, 1992, 57 F.R. 47562, which established the President's Council on Management Improvement and provided for its membership, functions, etc., was revoked by Ex. Ord. No. 13048, §5, June 10, 1997, 62 F.R. 32469, set out below.

EX. ORD. NO. 13048. IMPROVING ADMINISTRATIVE
MANAGEMENT IN THE EXECUTIVE BRANCH

Ex. Ord. No. 13048, June 10, 1997, 62 F.R. 32467, provided:

Improvement of Government operations is a continuing process that benefits from interagency activities. One group dedicated to such activities is the President's Council on Management Improvement (PCMI), established by Executive Order 12479 in 1984, reestablished by Executive Order 12816 in 1992. In the intervening years, some activities of the PCMI have been assumed by the President's Management Council, the Chief Financial Officers Council, and the Chief Information Officers Council. These organizations are also focussed on improving agencies' use of quality management principles. Other functions have been assigned to individual agencies. Nonetheless, remaining administrative management matters deserve attention across agency lines.

By the authority vested in me as President by the Constitution and the laws of the United States of America and in order to improve agency administrative and management practices throughout the executive branch, I hereby direct the following:

SECTION 1. Interagency Council on Administrative Management.

(a) Purpose and Membership. An Interagency Council on Administrative Management ("Council") is established as an interagency coordination mechanism. The Council shall be composed of the Deputy Director for

Management of the Office of Management and Budget, who shall serve as Chair, and one senior administrative management official from each of the following agen

cies:

1. Department of State;

2. Department of the Treasury;
3. Department of Defense;
4. Department of Justice;
5. Department of the Interior;
6. Department of Agriculture;
7. Department of Commerce;
8. Department of Labor;

9. Department of Health and Human Services;
10. Department of Housing and Urban Development;
11. Department of Transportation;
12. Department of Energy;

13. Department of Education;

14. Department of Veterans Affairs;

15. Environmental Protection Agency;

16. Federal Emergency Management Agency;
17. Central Intelligence Agency;

18. Small Business Administration;
19. Department of the Army;
20. Department of the Navy;

21. Department of the Air Force;

22. National Aeronautics and Space Administration; 23. Agency for International Development; 24. General Services Administration; 25. National Science Foundation; and 26. Office of Personnel Management.

Department and agency heads shall advise the Chair of their selections for membership on the Council. Council membership shall also include representatives of the Chief Financial Officers Council, the Chief Information Officers Council, the Federal Procurement Council, the Interagency Advisory Group of Federal Personnel Directors, and the Small Agency Council, as well as at-large members appointed by the Chair, as he deems appropriate. The Chair shall invite representatives of the Social Security Administration to participate in the Council's work, as appropriate. The Council shall select a Vice Chair from among the Council's membership.

(b) The Council shall plan, promote, and recommend improvements in Government administration and operations and provide advice to the Chair on matters pertaining to the administrative management of the Federal Government. The Council shall:

(1) explore opportunities for more effective use of Government resources;

(2) support activities and initiatives of the President's Management Council, the Chief Financial Officers Council, the Chief Information Officers Council, the Federal Procurement Council, and the Interagency Advisory Group of Federal Personnel Directors designed to develop, review, revise, and implement Governmentwide administrative management policies; and

(3) identify successful administrative management practices, including quality management practices, and assist in their Governmentwide dissemination and implementation.

SEC. 2. Responsibilities of the Chair. The Chair or, if the Chair chooses, the Vice Chair shall:

(1) convene meetings of the Council;
(2) preside at formal council meetings;

(3) establish committees or working groups of the Council, as necessary for efficient conduct of Council functions; and

(4) appoint, to the extent permitted by law and consistent with personnel practices, other full-time officers or employees of the Federal Government to the Council as at-large members for specific terms, not exceeding 2 years, to provide expertise to the Council. SEC. 3. Responsibilities of Agency Heads. To the extent permitted by law, heads of departments or agencies represented on the Council shall provide their representatives with administrative support needed to support Council activities.

SEC. 4. Judicial Review. This order is for the internal management of the executive branch and does not cre

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