ing an interim period, transfers of Federal property to the State, and other measures required to facilitate orderly transition; (d) clarify the applicability of certain laws to Alaska; and (e) eliminate inappropriate references to the "Territory of Alaska" in Federal statutes. Early enactment is required to assure continuity of a number of essential public services in Alaska and to provide for the orderly transition of Alaska to statehood. Drafting has been substantially completed and a bill will be submitted to the Bureau of the Budget shortly. Bill will authorize transitional grants as follows: $10.5 million for fiscal year 19, $6 million for 19-- and 19_-, and $2.5 million for 19 and 19-. Amounts appropriated for grants for a number of activities would be offset to a large extent by elimination of appropriations for a number of activities which the Federal Government would have continued to finance had Alaska remained a territory. 2. * Part II-All other proposals 3. Unemployment insurance for ex-servicemen.-Would extend unemployment insurance provisions of the Social Security Act for Federal civilian employment to cover service in the armed forces. Program would be administered by States under agreements with Federal Government. Purpose is to insure individuals leaving the armed forces the same income protection enjoyed by Federal civilian employees and most industry employees. H.R. 10000 and S. 5000 were introduced in the first session of the 8-th Congress as departmental proposals. H.R. 10000 was reported July 1, 19__ (House Report No. 888). No action on S. 5000. Benefit costs for 19-- are estimated at $50 million. There will be offsetting savings of about $10 million since some individuals qualified under existing law will seek benefits under the new law. Administrative costs are estimated at approximately $3.2 million in 19. Benefit and administrative costs for the four years after 19__ will be dependent on employment conditions then prevailing but are not expected to exceed the cost estimates for 19_.. (a) Items still under consideration will be listed in approximate order of priority and each briefly described in terms of subject matter and status. (b) Expiring laws will be described in terms of (1) the subject, (2) the citation, (3) the date of expiration, and (4) a brief explanation including the agency's views as to whether the law should be extended or permitted to expire. If an agency recommends extension, the proposal will be included in Part I or Part II (see 1 above), as appropriate. 5. The statement will be prepared on 8 by 101⁄2 size paper. General conformance to the format of the attached exhibit will greatly facilitate the use of these programs. Attachment. ACT OF JULY 25, 1956, 70 STAT. 852 (5 U.S.C. 6428) "(a) Each report, recommendation, or other communication, of an official nature, of any department, agency, or independent establishment of the execu tive branch of the Federal Government (including any corporation wholly owned by the United States) which— "(1) relates to pending or proposed legislation which, if enacted, will entail an estimated annual expenditure of appropriated funds in excess of $1,000,000, "(2) is submitted or transmitted to the Congress or any committee thereof in compliance with law or on the initiative of the appropriate authority of the executive branch, and “(3) officially proposes or recommends the creation or expansion, either by action of the Congress or by administrative action, of any function, activity, or authority of any such department, agency, independent estab lishment, or corporation, to be in addition to those functions, activities, and authorities thereof existing at the time such report, recommendation, or communication is submitted or transmitted to the Congress or any com mittee thereof, shall contain a statement, with respect to such department, agency, independent establishment, or corporation, for each of the first five fiscal years during which each such additional or expanded function, activity, or authority so proposed or recommended is to be in effect, disclosing the following information: "(A) The estimated maximum additional— "(i) man-years of civilian employment, by general categories of positions, "(ii) expenditures for personal services, and "(iii) expenditures for all purposes other than personal services, which are attributable to such function, activity, or authority and which will be required to be effected by such department, agency, independent establishment, or corporation in connection with the performance of such function, activity, or authority, and "(B) such other statement, discussion, explanation, or other information as may be deemed advisable by the appropriate authority of the executive branch or which may be required by the Congress or a committee thereof. "(b) Subsection (a) of this section shall not apply to the Central Intelligence Agency." has been requested to submit a report of the 8-th on the subject bill, which is identical with Congress. Will you please advise whether there is objection to submitting the same report on subject bill as was prepared on clearance on and submitted to you for -, except for the following modifications: EXECUTIVE OFFICE OF THE PRESIDENT, BUREAU OF THE BUDGET, Washington, D.C., February 8, 1963. MEMORANDUM FOR LIAISON OFFICERS OF THE DEPARTMENTS AND AGENCIES Subject: Additional copies of draft bills. Circular A-19 provides that agencies shall furnish at least four legible copies of proposed legislation to us in the clearance process. It is our usual practice to send only one copy of a draft bill to each interested agency asked to comment on the draft. The larger departments and agencies, particularly those with mixed functions, find that a single copy of a draft bill and related justification material is not adequate for their needs. To do a thorough staff job, they require more copies, particularly in cases where comments are requested with a short deadline. Accordingly, we would appreciate your observing the following procedure to satisfy the above need: When a department or agency desires expedited clearance of a draft bill, it should informally inquire of the analyst in the Office of Legislative Reference who normally handles its legislation how many copies of the draft bill and supporting material are needed. It is anticipated that his estimate will be made available with little or no delay. The submitting agency will then be responsible for preparing-in whatever form it chooses-sufficient legible copies to meet the estimated requirement. In addition, we encourage agencies to make similar inquiries in advance of the submission of significant or controversial draft bills for which expedited clearance is not requested, since similar benefits to them can be anticipated in these cases as well. Through this procedure, we anticipate that there will be mutual benefit to all agencies over a period of time in expediting the clearance process and facilitating more thorough comments on draft legislation. PHILLIP S. HUGHES, Assistant Director for Legislative Reference. Hon. GEORGE P. SHULTZ, CONGRESS OF THE UNITED STATES, Director, Office of Management and Budget, Washington, D.C. HOUSE OF REPRESENTATIVES, Washington, D.C., October 20, 1971. DEAR MR. SHULTZ: I am informed that the Securities and Exchange Commission submits to your office all proposed legislation, legislative comments and Congressional testimony prior to or simultaneously with submitting such material to the Congress. I am informed that this is done pursuant to OMB Budget Circular A-19, as revised. Would you please inform me as to the statutory basis for the OMB's request that the Commission, an independent regulatory agency established as an arm of the Congress, submit this material to you. Sincerely, JOHN E. Moss, Chairman, Subcommittee on Commerce and Finance. EXECUTIVE OFFICE OF THE PRESIDENT, OFFICE OF MANAGEMENT AND BUDGET, Hon. JOHN E. Moss, Chairman, Subcommittee on Commerce and Finance, House of Representatives, Washington, D.C. DEAR MR. CHAIRMAN: This is in response to your letter of October 20, 1971, requesting information as to the statutory basis for the requirement that the Securities and Exchange Commission submit proposed legislation, and comments and testimony thereon, to this Office prior to submitting such material to the Congress. As your letter indicates, the requirements of this Office with respect to such matters are set forth in Bureau of the Budget Circular No. A-19, Revised, of June 19, 1964. The bases for that Circular are contained in various provisions of the Constitution, statutes, and reorganization plans, and in Executive orders issued thereunder. The most significant of these are listed below. Article 2, Section 3, of the Constitution requires that the President from time to time give to the Congress information of the state of the union, and "recommend to their Consideration such Measures as he shall judge necessary and expedient; .. Article 1, section 7, of the Constitution provides that every bill which shall have passed the House of Representatives and the Senate be presented to the President for his approval or disapproval. Article 2, section 1, of the Constitution provides that the executive power shall be vested in the President, and Article 2, section 3, provides that the President shall take care that the laws be faithfully executed. The Budget and Accounting Act, 1921, provides in section 209 (31 U.S.C. 18) that the President may direct the Bureau of the Budget (now the Office of Management and Budget) to make studies of the departments and establishments to enable him to determine what changes should be made in organization, activities, and methods of business of the departments and establishments, with a view to securing greater economy and efficiency in the conduct of the public service. Section 2 of that Act (31 U.S.C. 2) defines the term "department and establishment" as used therein to mean "any executive department, independent commission, board, bureau, office, agency, or other establishment of the Government, including any independent regulatory commission or board . . .”. (See also section 104 of the Budget and Accounting Procedures Act of 1950 for a similar provision authorizing and directing the President, through the Director of the Bureau of the Budget, to evaluate and develop improved plans for the organization, coordination, and management of the Executive Branch of the Government with a view to efficient and economical service. 31 U.S.C. 18a.) Reorganization Plan No. 1 of 1939, 53 Stat. 1423, transferred the Bureau of the Budget (which originally had been established in the Treasury Department) to the Executive Office of the President. Pursuant to the Constitutional and statutory provisions cited above, President Roosevelt issued Executive Order No. 8248 of September 8, 1939, outlining the functions and duties of the several divisions of the Executive Office of the President. Section 2, part II, of that Order assigned to the Bureau of the Budget the functions of assisting the President in the preparation of the Budget and the formulation of the fiscal program of the Government. The Bureau was directed (1) to conduct research on improved plans of administrative management, and to advise the departments and agencies on improved organization and practice (section 2(c)); and (2) to assist the President by clearing and coordinating departmental advice on proposed legislation in accordance with practices theretofore existing under the Budget and Accounting Act (section 2(e)). Bureau of the Budget Circular No. A-19, Revised, was issued by direction of President Johnson, pursuant to the authorities cited above. It superseded a similar Circular which had been issued by direction of President Eisenhower on June 16, 1960, and which in turn had superseded earlier Executive issuances on the subject of legislative clearance going back as far as the enactment of the Budget and Accounting Act in 1921. With respect to the authority for the performance by the Office of Management and Budget of the functions vested in the President and the Bureau of the Budget by the various Constitutional and statutory provisions and the Executive Order cited above, please see Reorganization Plan No. 2 of 1970 and Executive Order No. 11541 of July 1, 1970. I trust the foregoing information will meet the needs of your Subcommittee. Sincerely, GEORGE P. SHULTZ, Director. CONGRESS OF THE UNITED STATES, HOUSE OF REPRESENTATIVES, Washington, D.C., October 20, 1971. The CHIEF JUSTICE OF THE UNITED STATES, DEAR MR. CHIEF JUSTICE: The Subcommittee on Commerce and Finance is conducting hearings on the problems of the securities industry and the role of the Securities and Exchange Commission. We understand that while the Commission conducts all district court and appellate court litigation on its own authority, it clears all Supreme Court matters with the Office of the Solicitor General. The Subcommittee is concerned that the Commission, an independent regulatory agency established as an arm of the Congress, must clear its Supreme Court matters through the Executive Department. We are aware of the heavy burden and the increasing work load of your Court. We would, therefore, appreciate your views as to what effect there would be on the Court's work load if the Commission were empowered to conduct its Supreme Court litigation independently of the Solicitor General's Office. Sincerely, JOHN E. Moss, Chairman, Subcommittee on Commerce and Finance. SUPREME COURT OF THE UNITED STATES, Hon. JOHN E. Moss, Chairman, Subcommittee on Commerce and Finance, House of Representatives, Rayburn House Office Building, Washington, D.C. DEAR MR. CHAIRMAN: I was not able to present the matter of your October 20 letter to the Conference until last Friday. It is the unanimous view of the Justices that it would be unwise to dilute the authority of the Solicitor General as to Supreme Court jurisdiction in cases arising within the Executive Branch and independent agencies. It is very likely that there would be an increase in the work load of the Supreme Court if matters could be brought here without the concurrence of the Solicitor General. Even more important, perhaps, the Solicitor General exercises a highly important role in the selection of cases to be brought here in terms of the long-range public interest. Cordially, WARREN E. BURGER. |