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The original documents are located in Box 67, folder "1976/10/19 HR10133 Department of
Agriculture Positions" of the White House Records Office: Legislation Case Files at the
Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
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copyright claim, please contact the Gerald R. Ford Presidential Library.
Exact duplicates within this folder were not digitized.
Digitized from Box 67 of the White House Records Office Legislation Case Files 8/0/19/76 at the Gerald R. Ford Presidential Library
OCT 19
THE WHITE HOUSE
ACTION
WASHINGTON
Last Day: October 20
October 19, 1976
MEMORANDUM FOR
THE PRESIDENT
hosted 10/20/76
FROM:
JIM CANNON HiDDuern
SUBJECT:
H.R. 10133 - Department of Agriculture
Positions
archies
11/20/16
Attached for your consideration is H.R. 10133, sponsored by
Representative Foley.
H.R. 10133 incorporates the provisions of an Administration
proposal to upgrade top staff positions of USDA. Specifically,
the bill:
-- upgrades the position of Under Secretary of Agriculture
from Executive Level III to Level II and changes the
title to Deputy Secretary;
-- establishes an additional position of Assistant Secretary
of Agriculture at Executive Level IV;
-- raises the position of the Administrator, Animal and
Plant Health Inspection Service from GS-18 to Executive
Level V:
-- increases the membership of the Board of Directors of
the Commodity Credit Corporation from six to seven;
-- removes from Executive Level V the position of Director
of Agricultural Economics.
The bill also contains a nongermane rider, added by the Senate
Committee on Agriculture and Forestry, to exempt custom poultry
operations from the requirements of the Farm Labor Contractor
Registration Act of 1963, provided the employees of the operations
are not regularly required to be away from their homes other
than during their normal working hours.
A detailed discussion of the provisions of the enrolled bill
is provided in OMB's enrolled bill report at Tab A.
2
Agency Recommendations
The Department of Labor recommends veto of the bill unless the
need for executive level changes in USDA outweighs the
Department's concerns about the exemption of poultry workers
from FLCRA.
The Department of Agriculture recommends approval of the bill
and has no objection to the FLCRA exemption amendment.
OMB recommends approval of the bill.
Staff Recommendations
Max Friedersdorf, Counsel's Office (Lazarus) and I recommend
approval of the enrolled bill.
RECOMMENDATION
That you sign H.R. 10133 at Tab B.
PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
OCT 14 1976
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 10133 - Department of
Agriculture Executive Positions
Sponsor - Rep. Foley (D) Washington
Last Day for Action
October 20, 1976 - Wednesday
Purpose
Upgrades the top-level policy positions of the U.S.
Department of Agriculture (USDA) and exempts certain
custom poultry operations from the provisions of the
Farm Labor Contractor Registration Act (FLCRA).
Agency Recommendations
Office of Management and Budget
Approval
Department of Agriculture
Approval
Department of Labor
Disapproval
Discussion
H.R. 10133 incorporates the provisions of an Administra-
tion proposal to upgrade top staff positions of USDA.
Specifically, the bill upgrades the position of Under
Secretary of Agriculture from Executive Level III to
Level II and changes the title to Deputy Secretary;
establishes an additional position of Assistant Secretary
of Agriculture at Executive Level IV; raises the position
of the Administrator, Animal and Plant Health Inspection
Service from GS-18 to Executive Level V; increases the
membership of the Board of Directors of the Commodity
Credit Corporation from six to seven; and removes from
Executive Level V the position of Director of Agricultural
Economics.
2
H.R. 10133 also contains a nongermane rider, added by
Senate Committee on Agriculture and Forestry, to exempt
custom poultry operations (i.e., harvesting, breeding,
debeaking, sexing, and health service) from the require-
ments of the Farm Labor Contractor Registration Act of
1963, provided the employees of the operations are not
regularly required to be away from their homes other
than during their normal working hours. The FLCRA was
amended in 1974 to cover all types of agricultural contract
labor, regardless of the number of workers involved or
whether the workers were recruited for interstate or intra-
state agricultural employment. As a result, contractors
performing poultry service operations, who are not in
interstate commerce and who typically operate with small
crews, must meet certain working and living standards
requirements, maintain records and comply with other
provisions of the act.
In recommending the exemption of poultry service operations,
the Senate Agriculture and Labor Committee stated in its
report, "The poultry service operations, now being subjected
to the Farm Labor Contractor Registration Act requirements,
are not within the general ambit of 'migrant' labor, but
are subject to the Act because of the technical scope of
the statutory definitions after the 1974 amendments
The Committee believes that such custom poultry service
operations--where the workers are clearly not migrant workers-
should not be subject to the provisions of the Farm Labor
Contractor Registration Act."
This would be the second time since the 1974 amendments
that Congress has exempted a group from FLCRA coverage.
P.L. 94-259, which you approved on April 15, 1976, exempted
custom combine operators, hay harvesters and sheep shearers.
That exemption, sponsored by Senator Robert Dole (Kansas),
was approved on the grounds that the class of workers
exempted did not fall within the general ambit of unskilled
migrant farm workers that the FLCRA is intended to protect.
The Administration did not have an opportunity to comment
on the exemption amendment in the enrolled bill.
Agency Recommendations
Labor recommends a veto of the bill unless the need for
executive level changes in USDA outweighs the Department's
concerns about the exemption of poultry workers from FLCRA.
3
In its views letter, Labor states that it is not convinced
that the poultry workers affected do not need the pro-
tections which the FLCRA affordsthem and is concerned that
this provision might be viewed as a precedent for further
erosion of FLCRA coverage.
Agriculture recommends approval of H.R. 10133 and has no
objection to the FLCRA exemption amendment.
*******
The Department of Labor has no evidence that there have
been, in poultry service operations, the farm labor con-
tractor abuses that FLCRA is designed to prevent. In the
absence of such evidence, we see no justification for over-
turning the Congressional determination that the proposed
exemption is warranted. While Labor's concern about the
possible precedential effect of the FLCRA exemption is
not without merit, we do not believe it warrants dis-
approval of H.R. 10133. Accordingly, we concur in
Agriculture's recommendation that you approve H.R. 10133.
Jonh James T. Lynn
Director
Enclosures
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date: October 15
Time: 200pm
FOR ACTION:
Paul Leach on
CC (for information):
Jack Marsh
Max Friedersdorf MR
Ed Schmults
Bobbie Kilberg an
Steve McConahey days
David Lissy ak
FROM THE STAFF SECRETARY
DUE: Date:
October 18
Time: 200pm
SUBJECT:
H.R.10133-Departmant of Agriculutre Executive
Positions
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X
For Your Comments
Draft Remarks
REMARKS:
please return to judy johnston,ground floor west wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
K. R. COLE, JR.
telephone the Staff Secretary immediately.
For the President
STATES DEPARTMENTOR
DEPARTMENT OF AGRICULTURE
OFFICE OF THE SECRETARY
WASHINGTON, D. C. 20250
October 1 2, 1976
Honorable James T. Lynn
Director
Office of Management and Budget
Washington, D. C.
Dear Mr. Lynn:
This is in reply to your request for our report on the enrolled enactment
of H.R. 10133.
This Department recommends that the President approve the Act.
This enactment upgrades the position of Under Secretary of Agriculture
(Executive Level III) to a Level II Deputy Secretary, establishes a new
position of Assistant Secretary of Agriculture at Executive Level IV,
raises the position of Administrator of the Animal and Plant Health
Inspection Service from GS-18 to Executive Level V, increases the
membership of the Board of the Commodity Credit Corporation from six
to seven, and removes from Executive Level V the position of Director of
Agricultural Economics (whose duties will be assumed by the new Assistant
Secretary). The Act also excludes from the requirements of the Farm
Labor Contractor Registration Act custom poultry harvesting, breeding,
debeaking, sexing, and health service operations provided the employees
of such operations are not regularly required to be away from their homes
other than during normal working hours.
This legislation will bring the top-level staff of this Department in line
with other departments and recognize the tremendous growth in USDA programs
since 1953, the last time such adjustment occurred. The scope, magnitude,
and complexity of the Department's operations have increased substantially
since 1953, while the only additional top-level policy position approved
since that time has been the additional Assistant Secretary position which
was included in the Rural Development Act of 1972.
We have no objection to the amendment to the Farm Labor Contractor
Registration Act.
2.
We estimate the cost of H.R. 10133 to be about $5,000 for fiscal year
1977. However, no additional appropriations would be required since
this cost could be absorbed within current appropriations.
Sincerely,
you I. Day
John A. Knebel
Acting Secretary
U.S. DEPARTMENT OF LABOR
OFFICE OF THE SECRETARY
WASHINGTON
OCT 7 1976
Honorable James T. Lynn
Director
Office of Management and Budget
Washington, D. C. 20503
Dear Mr. Lynn:
This is in response to your request for our views on
H.R. 10133, an enrolled enactment "To upgrade the position
of Under Secretary of Agriculture to Deputy Secretary of
Agriculture; to provide for an additional Assistant
Secretary of Agriculture; to increase the compensation of
certain officials of the Department of Agriculture; to
provide for an additional member of the Board of Directors,
Commodity Credit Corporation; and for other purposes."
With respect to most of the provisions of this Act, we
defer to the views of the Department of Agriculture, which
would be primarily affected. However, we do oppose the
provision which would amend the Farm Labor Contractor
Registration Act (FLCRA), as amended, which is administered
by this Department.
The proposed amendment to the Farm Labor Contractor
Registration Act provides that the term "farm labor con-
tractor," as defined in section 3 (b) of the Act, shall not
include custom poultry harvesting, breeding, debeaking,
sexing, and health service operations, provided that employees
engaged in these operations are not regularly required to be
away from their homes other than during normal working hours.
The effect of this provision will be to exempt these poultry
service operations from the requirements of the Act.
- 2 -
Available data indicates that over 4,000 employee-years are
devoted annually to activities involved in poultry service
operations. However, since individuals employed for these
activities are almost always part-time workers, considerably
more individuals than the employee-years figure indicates
would be affected by the loss of FLCRA protections.
We are not convinced that this group of workers is not in
need of the protections which the Act affords them. For
example, the vehicle insurance and safety requirements are
important to these workers in view of the fact that many
poultry service contractors do transport workers. We
believe the protection of the Act is needed and we are not
aware of any justification for denying these workers this
protection. Moreover, while the protections for workers
under the Act are substantial, the requirements of the Act
are no different for poultry contractors than for any other
farm labor contractor. There is no charge for registration
although there may be some cost implication. Section 5 of
the Act requires applicants for certificates to obtain
minimum amounts of liability insurance on vehicles which
will be used to transport workers. Proof must also be
provided that each vehicle meets applicable safety and
health standards. If the insurance coverage specified
exceeds the amount the contractor would ordinarily carry, or
if the vehicle does not meet safety and health standards,
there would be added costs involved.
The records required to be kept by contractors under the Act
are similar to those payroll records kept by a prudent
business person. In addition to the usual payroll records,
a contractor is required to provide each worker with a
statement showing all sums paid to the contractor from
monies received on account of the labor of such workers.
Finally, we are very much concerned that this provision,
if enacted, might be viewed as a precedent for further
erosion of FLCRA coverage.
For these reasons, we recommend that the President veto
this legislation unless it is determined that the need for
the Act's other provisions relating to the organization of
the Agriculture Department outweighs our concerns.
Sincerely,
W Juany Jr.
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF management AND BUDGET
WASHINGTON, D.C. 20503
11:30pm.
OCT 14 1976
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 10133 - Department of
Agriculture Executive Positions
Sponsor - Rep. Foley (D) Washington
Last Day for Action
October 20, 1976 - Wednesday
Purpose
Upgrades the top-level policy positions of the U.S.
Department of Agriculture (USDA) and exempts certain
custom poultry operations from the provisions of the
Farm Labor Contractor Registration Act (FLCRA).
Agency Recommendations
Office of Management and Budget
Approval
Department of Agriculture
Approval
Department of Labor
Disapproval
Discussion
H.R. 10133 incorporates the provisions of an Administra-
tion proposal to upgrade top staff positions of USDA.
Specifically, the bill upgrades the position of Under
Secretary of Agriculture from Executive Level III to
Level II and changes the title to Deputy Secretary;
establishes an additional position of Assistant Secretary
of Agriculture at Executive Level IV; raises the position
of the Administrator, Animal and Plant Health Inspection
Service from GS-18 to Executive Level V; increases the
membership of the Board of Directors of the Commodity
Credit Corporation from six to seven; and removes from
Executive Level V the position of Director of Agricultural
Economics.
THE WHITE HOUSE
ACTIO MEMORANDUM
WASHINGTON
LOG NO.:
Date: (
ber 15
Time: 200pm
FOR ACTION:
Paul Leach
CC (for information):
Jack Marsh
Max Friedersdorf
Ed Schmults
Bobbie Kilberg
Steve McConahey
David Lissy
FROM THE STAFF SECRETARY
DUE: Date:
October 18
Time: 200pm
SUBJECT:
H.R. 10133-Department of Agriculutre Executive
Positions
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X
For Your Comments
Draft Remarks
REMARKS:
please return to judy johnston, ground floor west wing
No objection -- Ken Lazarus 10/15/76
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delav in submitting the required material, please
K. R. COLE, JR.
THE WHITE HOUSE
AC' ON MEMORANDUM
WASHINGTON
LOG NO.:
Da
october 15
Time: 200pm
FOR ACTION:
Paul Leach
CC (for information):
Jack Marsh
Max Friedersdorf
Ed Schmults
Bobbie Kilberg
Steve McConahey
David Lissy
FROM THE STAFF SECRETARY
DUE: Date:
October 18
Time: 200pm
SUBJECT:
H.R. 10133- Department of Agriculutre Executive
Positions
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X
For Your Comments
Draft Remarks
REMARKS:
please return to judy johnston, ground floor west wing
Recommend approval my
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delav in submitting the required material, please
K. R. COLE, JR.
94TH CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
2d Session
No. 94-1156
USDA EXECUTIVE ADJUSTMENTS
MAY 15, 1976.-Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. FOLEY, from the Committee on Agriculture, submitted the
following
REPORT
together with
DISSENTING VIEWS
[Including the Congressional Budget Office cost estimates]
[To accompany H.R. 10133]
The Committee on Agriculture, to whom was referred the bill (H.R.
10133), to upgrade the position of Under Secretary of Agriculture to
Deputy Secretary of Agriculture; to provide for two additional As-
sistant Secretaries of Agriculture; to increase the compensation of cer-
tain officials of the Department of Agriculture; to provide for an ad-
ditional member of the Board of Directors, Commodity Credit Cor-
poration; and for other purposes, having considered the same, report
favorably thereon with amendments and recommend that the bill as
amended do pass.
The amendments are as follows:
Page 1, line 6, strike (22) and insert " (23)
Page 2, line 19, strike the clause "two additional Assistant Secre-
taries" and insert in lieu thereof "one additional Assistant Secretary".
Page 3, lines 2 and 3, strike all of the sentence after the words "is
amended" and insert in lieu thereof "by striking the number which ap-
pears in the parenthesis at the end of paragraph (11) and by inserting
in lieu thereof the next higher number."
Page 3, strike lines 5, 11 and 12 inclusive.
Page 3, line 6, strike "(2)" and insert in lieu thereof "(1)".
Page 3, line 7, strike "(3)" and insert in lieu thereof "(2)".
Page 3, immediately after line 10, insert the following: " (3) By in-
serting a new paragraph (64) as follows: (64) Administrator, Food
and Nutrition Service'."
(1)
2
3
Page 3, strike lines 22 through 25, and insert in lieu thereof: "(b)
Subsections (b) (2) and (3) shall become effective January 21, 1977.
that carries out its many complex programs at over 10,000 locations,
Page 4, line 1, strike (b) (2)" and insert in lieu thereof (b) (1)
in every one of the 50 States, in over 3,000 counties, in every major
Amend the title to read as follows:
metropolitan area, and in many foreign countries.
Many new programs have been enacted by the Congress since 1953,
To upgrade the position of Under Secretary of Agriculture
such as watershed protection, mandatory poultry inspection, National
to Deputy Secretary of Agriculture; to provide for an addi-
Wool Act, Food Stamp Program, Child Nutrition Act, Agricultural
tional Assistant Secretary of Agriculture; to increase the
Fair Trade Practices Act, water and sewer program, cooperative
compensation of certain officials of the Department of Agri-
forestry research program, and programs for the disposition of com-
culture; to provide for an additional member of the Board of
modities under the Agricultural Trade Development and Assistance
Directors, Commodity Credit Corporation; and for other
Act (Public Law 480), and resource conservation and development
purposes.
program. Existing programs have been expanded in the areas of meat
inspection, marketing, food distribution, nutrition, consumer services,
BRIEF EXPLANATION OF THE LEGISLATION
research, education, forest land management, timber sales, rural hous-
H.R. 10133 was introduced by the Chairman of the Committee on
ing, technical assistance by the Soil Conservation Service to farmers
and soil conservation districts, and rural area development activities.
Agriculture, Honorable Thomas S. Foley, at the request of the Secre-
tary of Agriculture. It has been amended by the Committee, with the
The relationships between these programs and other Government
concurrence of the Secretary. H.R. 10133 would accommodate the tre-
programs are becoming more and more complex. This has resulted,
mendous increase in the scope and complexity of the programs ad-
for example, in designation of the Secretary of Agriculture as a mem-
ber of the Council on International Economic Policy, the Cost of Liv-
ministered by the United States Department of Agriculture over the
past quarter century by upgrading and augmenting the top-level policy
ing Council, the Water Resources Council and other groups.
staff of the Department. This legislation:
Net budgetary expenditures for all activities of the Department in-
creased from about $4.7 billion in 1953 to an estimate of about $10.7
Upgrades the position of Under Secretary to Deputy Secretary
of Agriculture;
billion in 1977. During this same period the man-years (average an-
Establishes a new position of Assistant Secretary of Agricul-
nual employment increased from 62,479 to 105,752.
ture at Executive Level IV;
The need for adequate staffing of the several Departments at the
Raises the positions of Administrator, Animal and Plant Health
Deputy Secretary and Assistant Secretary level has been recognized in
Inspection Service, and Administrator, Food and Nutrition Serv-
most of the other cabinet-level agencies of the Government. The Com-
ice, from GS-18 to Executive Level V;
mittee believes the magnitude and scope of the activities which the
Increases the membership of the board of the Commodity Credit
Congress has authorized and directed the Department of Agriculture
Corporation from six to seven; and
to carry out are as great as, or greater than, those of most other civilian
Removes from Executive Level V. the position of Director of
cabinet-level agencies.
Agricultural Economics (whose duties will be assumed by the
Four Departments of Government now have Deputy or Under Sec-
new Assistant Secretary) and the position of Director of Science
retaries at the Executive Level II, including the Departments of State,
and Education (which has not been filled for several years).
Treasury, Defense (2), and Transportation. The Department of Agri-
culture, in terms of budget, numbers of employees, breadth of program,
PURPOSE AND NEED FOR LEGISLATION
and general responsibility is sufficiently important to merit a Deputy
Secretary at the Executive Level II. In addition, changing the clas-
The purpose of this legislation is to bring the USDA top-level staff
sification of this position from Under Secretary to Deputy Secretary
in line with other departments and to recognize the tremendous growth
will give the incumbent additional influence as he deals with other De-
in the scope and complexity of USDA programs since 1953, the last
partments of Government and with agencies outside Government.
time such legislation was enacted. The scope, magnitude, and com-
USDA, with but four Assistant Secretaries at Executive Level IV
plexity of the Department's operations have increased substantially
ranks low among the Executive Departments. By comparison, the De-
since 1953, while the only additional top-level policy position approved
fense Department and its service departments have a total of 22; the
since that time has been the position of Assistant Secretary for Rural
Department of Housing and Urban Development has 8; the Depart-
Development which was included in the Rural Development Act of
ment of State has 12; the Department of Justice has 9; the Depart-
1972.
ment of the Treasury has 5; the Department of the Interior has 6; and
At present the Secretary of Agriculture has available to assist him
the Department of Labor has 6.
in managing and directing the complex and far-reaching programs of
The position of Director of Agricultural Economics was established
the Department of Agriculture a top-level staff consisting of one Under
in the Office of the Secretary of Agriculture on October 13, 1961. This
Secretary, four program Assistant Secretaries, an Assistant Secretary
position has as high a level of responsibility as have Assistant Secre-
for Administration, and the Director of Agricultural Economics. This
taries of Agriculture and, therefore, should be accorded the same rank.
small group of top policy officials is responsible for developing the
The positions of Administrator, Animal and Plant Health Inspection
policies and directing and managing the operations of a Department
Service (APHIS) and of Administrator, Food and Nutrition Service
(FNS) should be upgraded to Executive Level V.
4
5
APHIS is one of the largest and most complex agencies in the De-
tive Schedule ($37,800 per annum) the positions of Director of Agri-
partment of Agriculture. It has overall responsibility for the meat and
cultural Economics and Director of Science and Education, but would
poultry inspection programs as well as the many programs in the areas
add to that list the positions of Administrator, Animal and Plant
of plant and animal disease and pest control. The agency employs over
Health Inspection Service, and of Administrator, Food and Nutrition
15,000 people and administers a budget of over $400 million. With the
Service, both of which presently call for the salary of a GS-18 ($37,800
exception of the Forest Service, no agency in the Department employs
per annum).
more people, and none has a greater diversity of responsibilities. How-
Section 4. This section amends section 9 (a) of the Commodity Credit
ever, seven agencies that are smaller than this one have Level V
Corporation Charter Act, as amended, to increase the number of posi-
administrators. It should be noted that the Food and Drug Adminis-
tions on the Board of Directors of the Commodity Credit Corporation
tration, which has comparable responsibilities, has a Level V com-
from six to seven.
missioner even though its employment (6,763) and budget ($252
Section 5. This section provides that this legislation shall take effect
million) are less than half of those of the Animal and Plant Health
upon its date of enactment, except that (1) the removal of the position
Inspection Service.
of Director of Agricultural Economics from level V of the Executive
The main functions of the Commodity Credit Corporation have
Schedule shall not take effect until the new Assistant Secretary is
been in those areas pertaining to the production of commodities, and
appointed; and (2) the upgrading of the positions of Administrator,
the stabilization of prices thereof in line, with the objective of improv-
Animal and Plant Health Inspection Service, and Administrator, Food
ing net farm income. Of recent years, greater public and governmental
and Nutrition Service, becomes effective January 21, 1977.
attention has been focused on the stabilization of the rural population
and toward this end, major emphasis has been directed to those pro-
COMMITTEE CONSIDERATION
grams which enhance rural development. In this regard the basic eco-
nomic decisions of the CCC Board need to be further correlated with
The Subcommittee on Department Operations, Investigations and
the administration of Rural Development programs. We believe this
Oversight held a public hearing on March 29, 1976, at which James D.
proposal to provide an additional member to the CCC Board of Direc-
Keast, General Counsel of the Department of Agriculture, testified
tors will strengthen this relationship.
and presented a letter dated March 23, 1976, from the Secretary of
The growth in importance and in budgetary impact of the pro-
Agriculture. In that letter (which is set forth below under "Adminis-
grams of FNS since it came into existence in 1969 probably has no
tration Position"), the Secretary requested two changes in the bill.
peacetime parallel among federal agencies. In fiscal year 1970, FNS
First, the Secretary requested that, due to provision in H.R. 11743 for
had a staff of 1,747 to administer programs with outlays of approxi-
a new position of Assistant Secretary whose duties would include super-
mately $1 billion. By fiscal year 1976, the FNS staff had grown to
vision and coordination of agricultural research, this bill should be
2,534 and its budget, due in large measure to the tremendous expan-
amended to provide for one new Assistant Secretary rather than two.
sion in the numbers of people served by the Food Stamp Program,
Secondly, the Secretary requested deletion of the provisions in this
had jumped to $7.9 billion. The heroic mission of this agency to bring
bill which would have up-graded the position of Assistant Secretary
to as yet uncounted millions of impoverished and malnourished Amer-
for Administration from level V of the Executive Schedule to level
icans a nutritious and adequate diet, demands that the prestige and
IV. With these changes, the Secretary strongly urged approval of the
compensation of its chief executive officer be such as to attract able
bill by the Subcommittee.
men and women.
Upon completion of the General Counsel's testimony, the Subcom-
SECTION-BY-SECTION ANALYSIS
mittee discussed the provision of H.R. 11743 providing for a new As-
sistant Secretary and agreed to adopt the amendment suggested by
Section 1. This section elevates the position of the officer who is
the Department to provide only one new Assistant Secretary in H.R.
second in command at the United States Department of Agriculture
10133. Congressman Richmond focused the Subcommittee's attention
from Under Secretary, at pay level III on the Executive Schedule
on the provision of this bill which upgrades the Administrator of the
($42,000 per annum), to Deputy Secretary, at pay level II on that
Animal and Plant Health Inspection Service from GS-18 to level V
Schedule ($44,600). The section also provides that the incumbent on
of the Executive Schedule. He urged that the bill be amended to simi-
the date of enactment of this legislation, who was appointed by the
larly upgrade from GS-18 to level V the Administrator of the Food
President with the advice and consent of the Senate, may assume the
and Nutrition Service, who administers the multi-billion dollar Food
duties of the new position and shall not be required to be reappointed.
Stamp Program. Congressman Thone objected to Mr. Richmond's pro-
Section 2. This section adds one new position of Assistant Secre-
posal unless the Department of Agriculture was accorded an opportu-
tary of Agriculture, to be appointed by the President with the advice
nity to consider Mr. Richmond's suggestion and to present its views
and consent of the Senate, who shall perform such duties as the Sec-
thereon to the Subcommittee. The Subcommittee agreed with Con-
retary of Agriculture shall prescribe. The Department of Agricul-
gressman Thone and, accordingly, adjourned to permit USDA time
'ture presently has four Assistant Secretaries.
to consider Congressman Richmond's amendment.
Section 3. This section adds the new Assistant Secretary of Agri-
By letter dated April 1, 1976 (which is also set forth below under
culture to the category of persons who by law are compensated at
"Administration Position"), the Department responded that it con-
Executive Level IV ($39,900 per annum). This section would also
sidered upgrading the position of the Administrator of the Food and
delete from the list of positions compensated at level V of the Execu-
6
7
Nutrition Service to be justified and offered no objection to Mr. Rich-
in Fiscal Year 1976. And, in this period employment has increased
mond's amendment. Accordingly, on May 6, 1976, the Subcommittee
from 1,747 to 2,534. Thus, we would agree that there is justification
met in a business session and, after a brief discussion, agreed to the
for upgrading the position of Administrator of the Food and Nutri-
amendments proposed by the Secretary in his letter of March 23, 1976,
tion Service.
and also to the amendment proposed by Mr. Richmond. Upon motion
While we would prefer that any change with regard to this matter
of the Subcommittee Chairman, Mr. de la Garza, the Subcommittee
agreed to make the upgrading of the positions of Administrator of
be delayed until all questions concerning proposed food stamp legis-
both APHIS and FNS effective January 1, 1977. By a roll call vote
lation are resolved, we would not object to including a provision in
of 6 yeas to 1 nay the Subcommittee ordered H.R. 10133, as amended,
H.R. 10133 to establish this position of Administrator of the Food
and Nutrition Service at Executive Level V.
reported favorably to the full Committee.
The Committee on Agriculture met in a business session on May 11,
The Office of Management and Budget advises that there is no ob-
1976. After the Subcommittee amendments had been properly placed
jection to the presentation of this report from the standpoint of the
before the Committee, Mr. Moore of Louisiana offered an amend-
Administration's program.
ment to strike from those amendments the provision upgrading the
Sincerely,
Office of Administrator of the Food and Nutrition Service. Mr. Moore
JOHN A. KNEBEL,
urged that, in his view, the incumbent in that office had performed
Under Secretary.
poorly, particularly in connection with the Food Stamp Program, and
that it would be improper to reward such performance with a promo-
DEPARTMENT OF AGRICULTURE,
tion. Mr. Moore's amendment was supported by Congressman Kelly
OFFICE OF THE SECRETARY,
of Florida. However, it was opposed by Committee Chairman Foley
Washington, D.C., March 23, 1976.
and by Congressmen McHugh and Richmond of New York on the
Hon. E DE LA GARZA.
grounds that the question should be decided on the basis of the merit
Chairman, Subcommittee on Department Operations, Investigations
of the proposal to upgrade the position rather than on the basis of the
and Oversight, Committee on Agriculture, House of Representa-
performance of any particular incumbent. In an effort to avoid cloud-
tives, Washington, D.C.
ing the issue with any question of personalities, the Subcommittee
DEAR KIKA: In view of the hearing scheduled by your subcommittee
Chairman, Mr. de la Garza, requested and received unanimous con-
for March 29 on H.R. 10133, I would like to take this opportunity to
sent to amend the effective date of the upgrading of the Adminis-
set forth our latest thinking on this bill. As you know the Department
trators of both APHIS and FNS to January 21, 1977. Thereupon, the
of Agriculture transmitted this proposal to the Congress on May 30,
full Committee proceeded to vote on the Moore amendment and it was
1975. We recommend that your Committee approve H.R. 10133 with
rejected by a roll call vote of 9 yeas-16 nays. The Committee then in
the changes noted below.
the presence of a quorum by voice vote ordered the bill H.R. 10133, as
The purpose of this legislation is to bring the top-level staff of the
amended by the Subcommittee, reported to the House with a recom-
Department of Agriculture in line with other departments and to
mendation that it do pass.
recognize the tremendous growth in USDA programs since 1953, the
ADMINISTRATION POSITION
last time such adjustments occurred. The scope, magnitude, and com-
plexity of the Department's operations have increased substantially
The Administration position is set forth in the following letters
since 1953, while the only additional top-level policy position approved
submitted prior to and after the public hearings:
since that time has been the additional Assistant Secretary position
which was included in the Rural Development Act of 1972.
DEPARTMENT OF AGRICULTURE,
Thus, the bill
OFFICE OF THE SECRETARY,
-Upgrades the position of Under Secretary to Deputy Secretary
Washington, D.C., April 1, 1976.
of Agriculture;
Hon. E DE LA GARZA,
-Establishes two new positions as Assistant Secretary of Agricul-
Chairman, Subcommittee on Department Operations, Investigation
ture at Executive Level IV;
and Oversight, Committee on Agriculture, House of Representa-
-Raises the position of Administrator, Animal and Plant Health
tives, Washington, D.C.
Inspection Service, from GS-18 to Executive Level V; and
DEAR MR. CHAIRMAN At the hearing before your Subcommittee on
-Increases the membership of the Board of the Commodity Credit
March 29 concerning H.R. 10133 you requested that we provide the
Corporation from six to seven.
Department's views on the proposal of Mr. Richmond to raise the posi-
The reasons for these changes are adequately set forth in our trans-
tion of Administrator of the Food and Nutrition Service from GS-18
mittal letter SO I will not repeat them. We would, however, like to
to Executive Level V.
recommend the following changes.
We recognize that there has been an increase in the scope and mag-
We requested two additional Assistant Secretaries of Agriculture
nitude of the various food programs administered by the Food and
at Executive Level IV. However, if the intent of the Committee on
Nutrition Service of this Department. Since the Food and Nutrition
Agriculture is to include one additional Assistant Secretary position
Service came into existence on August 8, 1969, its total program out-
in H.R. 11743, the bill dealing with agricultural research, only one
lays have risen from $1.0 billion in Fiscal Year 1970 to $7.9 billion
8
9
is needed in H.R. 10133. Furthermore, in any event, we recommend
that the provisions in H.R. 10133 relating to the Assistant Secretary
conducted by the Committee within the definition of clause 2(b) (1)
for Administration be deleted from the bill. As you may recall, the bill
of rule X of the Rules of the House of Representatives.
as submitted contemplates upgrading the positions of Director of
CHANGES IN EXISTING LAW
Agricultural Economics and Assistant Secretary for Administration
to Executive Level IV Assistant Secretary positions. The Department
In compliance with clause 3 of rule XIII of the Rules of the House
no longer feels that any change is necessary with respect to the posi-
of Representatives, changes in existing law made by the bill are
tion of the Assistant Secretary for Administration.
shown as follows (existing law proposed to be omitted is enclosed in
With these changes I strongly urge your approval of H.R. 10133.
black brackets, new matter is printed in italic, and existing law in
Sincerely,
which no change is proposed is shown in roman) :
EARL L. BUTZ,
Secretary of Agriculture.
TITLE 5, UNITED STATES CODE
CURRENT AND FIVE SUBSEQUENT FISCAL YEAR COST ESTIMATE
Pursuant to clause 7 of rule XIII of the Rules of the House of Rep-
SEC. 5313. Positions at level II.
resentatives, the Committee estimates the cost to be incurred by the
Federal Government during the current and the five subsequent fiscal
years as a result of the enactment of this legislation would be no more
(23) Deputy Secretary of Agriculture.
SEC. 5314. Positions at level III.
than $5,000 in each of the five subsequent fiscal years; and one-quarter
of that amount for the transition quarter.
On the basis of an assumed effective date of June 1, 1976, the Depart-
ment of Agriculture estimated the total cost, including the period to
[(3) Under Secretary of Agriculture.]
October 1, 1976, and five full fiscal years thereafter, at $26,667.
SEC. 5315. Positions at level V.
INFLATIONARY IMPACT STATEMENT
Pursuant to clause 2(1) (4) of rule XI of the Rules of the House of
(11) Assistant Secretaries of Agriculture [(4)] (5) 1
Representatives, the Committee estimates that enactment of H.R.
10133, as amended, will have no inflationary impact on the national
economy.
SEC. 5316. Positions at level V.
BUDGET ACT COMPLIANCE (SECTION 308 AND SECTION 403)
(55) Director of Agricultural Economics, Department of Agri-
The provisions of clause 2(1) (3) (B) of rule XI of the Rules of the
culture."
House of Representatives and section 308 (a) of the Congressional
Budget Act of 1974 (relating to estimates of new budget authority or
new or increased tax expenditures) are not considered applicable. The
[(63) Director of Science and Education, Department of Agricul-
ture.
estimate and comparison required to be prepared by the Director of
the Congressional Budget Office under clause 2(1) (3) (C) of rule XI
(63) Administrator, Animal and Plant Health Inspection Service.
of the Rules of the House of Representatives and section 403 of the
(64) Administrator, Food and Nutrition Service.
Congressional Budget Act of 1974 had not been received by the Com-
mittee prior to the filing of this report. The Committee was advised
that it is anticipated that such an estimate and comparison will be
ACT OF MARCH 26, 1934
[CHAPTER 89.]
available prior to consideration of the bill on the Floor of the House.
AN ACT Making appropriations for the Department of Agriculture and for the
OVERSIGHT STATEMENT
Farm Credit Administration for the fiscal year ending June 30, 1935, and for
other purposes
No summary of oversight findings and recommendations made by
Be it enacted by the Senate and House of Representatives of the
the Committee on Government Operations under clause 2(b) (2) of
United States of America in Congress assembled, That the following
rule X of the Rules of the House of Representatives was available to
sums are appropriated, out of any money in the Treasury not other-
the Committee with reference to the subject matter specifically ad-
wise appropriated, for the Department of Agriculture and for the
dressed by H.R. 10133, as amended.
No specific oversight activities, other than the hearing accompany-
1 The text of H.R. 10133, as amended, provides that this number be the "next higher
ing the Committee's consideration of H.R. 10133, as amended, were
number" in order to accommodate the possibility that H.R. 11743. which also adds an
additional Assistant Secretary may become law prior to the enactment of this bill.
10
11
Farm Credit Administration for the fiscal year ending June 30, 1935,
behalf of the Department or any division, commission, or bureau
namely:
thereof, issues, or causes to be issued, any prediction, oral or written,
or forecast with respect to future prices of cotton or the trend of
TITLE I-DEPARTMENT OF AGRICULTURE
same.
OFFICE OF THE SECRETARY
ACT OF JUNE 5, 1939
SALARIES
For the Secretary of Agriculture, [Under Secretary of Agriculture]
Deputy Secretary of Agriculture, $10,000, and there is hereby estab-
Resolved by the Senate and House of Representatives of the United
lished in the Department of Agriculture the position of [Under Secre-
States of America in Congress assembled, That the Under Secretary
tary of Agriculture] Deputy Secretary of Agriculture, to be ap-
of Agriculture] Deputy Secretary of Agriculture is authorized to
pointed by the President, by and with the advice and consent of the
exercise the functions and perform the duties of the first assistant of
Senate, and whose compensation shall be at the rate of $10,000 per
the Secretary of Agriculture within the meaning of section 177 of the
annum, Assistant Secretary, and for other personal services in the
Revised Statutes of the United States (U.S.C., title 5, sec. 4) and shall
District of Columbia, and elsewhere, $548,560: Provided, That in
perform such other duties as may be required by law or prescribed by
expending appropriations or portions of appropriations contained in
the Secretary of Agriculture.
this Act for the payment for personal services in the District of
Approved, June 5, 1939.
Columbia in accordance with the Classification Act of 1923, as
amended, with the exception of the Assistant Secretary, the average
COMMODITY CREDIT CORPORATION CHARTER ACT
of the salaries of the total number of persons under any grade in any
bureau, office, or other appropriation until shall not at any time exceed
SEC. 9. DIRECTORS, ADVISORY BOARD: (a) The management of the
the average of the compensation rates specified for the grade by such
Corporation shall be vested in a board of directors (hereinafter re-
Act as amended Provided further, That this restriction shall not
ferred to as the "Board"), subject to the general supervision and di-
apply (1) to grades 1, 2, 3, and 4 of the clerical-mechanical service, or
rection of the Secretary. The Secretary shall be an ex officio director
(2) to require the reduction in salary of any person whose compensa-
and shall serve as Chairman of the Board. [The Board shall consist of
tion was fixed as of July 1, 1924, in accordance with the rules of section
six members (in addition to the Secretary), who shall be appointed by
6 of such Act, (3) to require the reduction in salary of any person
the President by and with the advice and consent of the Senate. The
who is transferred from one position to another position in the same
Board shall consist of seven members (in addition to the Secretary),
or different grade, in the same or different bureau, office, or other
who shall be appointed by the President by and with the advice and
appropriation unit, (4) to prevent the payment of a salary under
consent of the Senate. In addition to their duties as members of the
any grade at a rate higher than the maximum rate of the grade when
Board such appointed members shall perform such other duties as
such higher rate is permitted by the Classification Act of 1923 as
may be prescribed by the Secretary. Each appointed member of the
amended, and is specifically authorized by other law, or (5) to reduce
Board shall receive compensation at such rate not in excess of the
the compensation of any person in a grade in which only one position
maximum then payable under the Classification Act of 1923, as
is allocated: Provided further, That the Secretary of Agriculture
amended, as may be fixed by the Secretary, except that any such mem-
is authorized to contract for stenographic reporting services, and the
ber who holds another office or position under the Federal Government
appropriations made in this Act shall be available for such purposes:
the compensation for which exceeds such rate may elect to receive
Provided further, That the Secretary of Agriculture is authorized
compensation at the rate provided for such other office or position in
to expend from appropriations available for the purchase of lands
lieu of the compensation provided by this section. A majority of the
not to exceed $1 for each option to purchase any particular tract or
directors shall constitute a quorum of the Board and action shall be
tracts of land Provided further, That not to exceed $22,990 of the
taken only by a majority votes of those present.
appropriations available for salaries and expenses of officers and
employees of the Department of Agriculture permanently stationed
in foreign countries may be used for payment of allowances for liv-
ing quarters, including heat, fuel, and light, as authorized by the
Act approved June 26, 1930 (U.S.C. Supp. VI, title 5, sec. 118a),
but the amount SO used for any one person shall not exceed the
amount permitted by law to be SO used, during the fiscal year 1935,
for any one person in the foreign service of the Department of Com-
merce: Provided further, That no part of the funds appropriated by
This Act shall be used for the payment of any officer or employee of
the Department of Agriculture who, as such officer or employee, or on
DISSENTING VIEWS OF HON. FLOYD J. FITHIAN, JOHN
W. JENRETTE, JR., KEITH G. SEBELIUS, STEVEN D.
SYMMS, RICHARD KELLY, CHARLES E. GRASSLEY,
TOM HAGEDORN, AND W. HENSON MOORE
The undersigned respectfully dissent from the passage of H.R.
10133 for one specific reason. In Section 3 of the bill, there exists in
Paragraph (64) a provision providing for the promotion of the
Administrator of the Food and Nutrition Service (FNS) of USDA
from his current level of GS-18 to Executive Level V, a more pres-
tigious position.
It is strongly believed for the following reasons that such a pro-
vision is unjustified and premature at the present time.
First, according to the latest USDA Quality Control Report for
the Food Stamp Program dated February 1976, there was found to
be a 46.6% error rate in almost 37,000 food stamp cases reviewed for
the time period of January through June, 1975. This is certainly an
intolerable error factor.
Second, Assistant Secretary Richard L. Feltner of USDA testified
before the Senate Agriculture Committee on January 21, 1976, that a
review of FNS service records from July 1, 1974, to September 1975,
showed that there were delayed or late deposits of funds of approxi-
mately $11,000,000.00 and unconfirmed or missing deposits of funds
of $6,000,000.00, totaling in excess of $17,000,000.00 in funds due
USDA for the food stamp program which were not in hand for un-
explained or unsatisfactory reasons. Again, this is certainly an un-
acceptable fund accountability performance by FNS.
Third, Assistant Secretary Feltner testified before the House Agri-
culture Committee on February 11, 1976, that FNS did not have any
reliable figures as to the extent of the recipient fraud rate and that
FNS had no overall coordinated data collection system on illegal activ-
ities in the food stamp program. FNS is charged with the adminis-
tration of the food stamp program which in FY 1976 will cost the
taxpayers $5.75 billion and is the largest item in the USDA budget
(39% of it).
Fourth, the problems of the administration of the food stamp pro-
gram by FNS has caused the General Accounting Office to currently
have underway four separate investigations of FNS, including the
recovery of losses procedures, implementation and enforcement of the
work registration requirement, vendor accountability, and supervision
of state and local food stamp activities. Several of these reports should
be available in the near future, although none are available at the
present time. All four of these investigations are serious and point to-
wards significant failures of FNS.
Fifth, Mr. Gene Senat, formerly Louisiana manager for FNS for
eleven years, testified before the House Agriculture Committee on
March 23, 1976, concerning numerous failures by FNS to investigate
violations of the food stamp law and regulations, delaying investiga-
(13)
14
15
tions undertaken for as long as three years and geenrally a lack of
trators do better. After a sufficient period of time, and if the food
enforcement resulting in fraud and errors. Mr. Senat testified that he
stamp program is being administered far better than presently, we
believed the federal government was losing about $46,000,000.00 per
could then consider the elevation of the position of Administrator
year in Louisiana alone based on a USDA audit dated June 25, 1975,
from General Schedule 18 to the more prestigious Executive Schedule
showing the error rate within that state.
V.
Sixth, the existing evidence of poor job performance by FNS and
An effort will be made on the floor to strike this provision from
specific investigations of GAO into aspects of it have caused a num-
the bill. You are urged to support it.
ber of Members of the Committee to request on May 13, 1976, a full
FLOYD J. FITHIAN.
KEITH G. SEBELIUS.
and complete investigation by GAO of the overall administration of
JOHN W. JENRETTE, Jr.
STEVEN D. SYMMS.
the food stamp program by FNS.
RICHARD KELLY.
Seventh, there were no hearings held before the Subcommittee on
CHARLES E. GRASSLEY.
Department Operations, Investigations and Oversight of the Agricul-
ToM HAGEDORN.
ture Committee concerning the advisability of promoting the Admin-
W. HENSON MOORE.
istrator of FNS. The request from USDA for this legislation did not
include this promotion. At the hearings before the Subcommittee held
o
on March 29, 1976, Mr. Jim Keast, General Counsel of USDA, testi-
fied in response to a question from a Member concerning the possible
promotion of the Administrator of FNS that USDA did not feel at
the present time that there should be an upgrading. Subsequently, in
a letter dated April 1, 1976, Mr. John A. Knebel, Under Secretary of
USDA, replied to a request from the Chairman of the Subcommittee
that the Department would not object to the promotion of the Admin-
istrator of FNS, but would prefer that it be delayed until after all
questions concerning proposed food stamp legislation be resolved.
The point is that USDA did not ask for this promotion. believes it
to be premature at the present time, and there was no evidence taken
before the Subcommittee or the full Committee justifying the change
or showing that either the Administrator or FNS have performed in
such a fashion as to merit this promotion. The provision for this pro-
motion came in Subcommittee markup after the hearings had been
held and with no evidence before the Subcommittee to warrant it.
Eighth, it is premature and illogical to call for a promotion or up-
grading before the House and Senate complete work on food stamp
legislation which is presently actively being considered by each and
before the existing four GAO investigations underway are complete
with the possibility of a fifth in the offing. This legislation and these
investigations may well recommend the abolition or restructuring of
FNS or that drastic changes be made in the operations of FNS and
may well provide additional evidence establishing the failure of FNS
to satisfactorily perform its function. Any promotion or upgrading
of the Administrator under those circumstances is indeed premature.
Considering the foregoing points, it would appear to be Indicrous
to reward an individual who has been Administrator since Septem-
ber, 1969 (six and one-half years), for having done a poor job or
reward the Department he heads. This would be evidence to the pub-
lic that poor administration is the way to get ahead in the bureauc-
acy and would be a slap in th face of those administrators who are
trying to do a good job. There is no evidence establishing that a pro-
motion or a reward should be in the offing and ample evidence present
and more possibly forthcoming to establish the contrary. Many of the
problems with the food stamp program are directly due to its poor
administration. Those problems will not be solved until the adminis-
94TH CONGRESS
HOUSE OF REPRESENTATIVES
REPT. 94-
2d Session
1156 Part 2
USDA EXECUTIVE ADJUSTMENTS
JUNE 3, 1976.-Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. Foley, from the Committee on Agriculture,
submits the following
SUPPLEMENTAL REPORT
(Including the Congressional Budget Office cost estimate and comparison)
[To accompany H.R. 10133]
The Committee on Agriculture, to whom was referred the bill
(H.R. 10133), to upgrade the position of Under Secretary of Agricul-
ture to Deputy Secretary of Agriculture; to provide for two additional
Assistant Secretaries of Agriculture; to increase the compensation of
certain officials of the Department of Agriculture; to provide for an
additional member of the Board of Directors, Commodity Credit
Corporation; and for other purposes, hereby submits a supplemental
report to its report, No. 94-1156, filed May 15, 1976. This supple-
mental report contains the estimate and comparison prepared by the
Director of the Congressional Budget Office under clause 2(1) (3) (C)
of rule XI of the Rules of the House of Representatives and section
403 of the Congressional Budget Act of 1974 which were submitted to
the Committee subsequent to the filing of its report.
The estimate and comparison are set forth below:
CONGRESS OF THE UNITED STATES,
CONGRESSIONAL BUDGET OFFICE,
Washington, D.C., May 26, 1976.
Hon. THOMAS S. FOLEY,
Chairman, Committee on Agriculture,
U.S. House of Representatives, Washington, D.C.
DEAR MR. CHAIRMAN: Pursuant to Section 403 of the Congressional
Budget Act of 1974, the Congressional Budget Office has prepared
the attached cost estimate for H.R. 10133, a bill concerning adjust-
ments in USDA executive staff.
57-006
2
3
Should the Committee SO desire, we would be pleased to provide
assumed further that the pay increase would become effective during
further details on the attached cost estimate.
the transition quarter.
Sincerely,
A similar procedure was employed in calcualting the cost of the new
ALICE M. RIVLIN, Director.
Assistant Secretary. The current salary base for Level IV positions
Attachment.
was inflated to show expected increases in salaries during the five-year
period and then augmented by the benefit factor. The estimates in the
CONGRESSIONAL BUDGET OFFICE-COST ESTIMATE
table represent the compensation cost only. Nothing was added for
supporting staff and overhead because it was assumed that the new
1. Bill number: H.R. 10133.
position would be filled by the current Director for Agricultural
2. Bill title: Adjustments in USDA Executive Staff.
Economics. His present staff and office expenses would not be affected
3. Purpose of bill: H.R. 10133 would upgrade certain executive
by the promotion.
positions within the Department of Agriculture. The position of
These increases in costs would be more than offset, at least after the
Under Secretary would be upgraded to Deputy Secretary, which would
transition quarter, by the cost-savings arising from the elimination of
raise the level of compensation for the number two position from
the two Level V jobs. These savings were estimated by simply calcu-
Executive Level III ($42,000 per year) to Level II ($44,600 per year).
lating the future costs of two Level V positions.
The legislation would also create a position for an additional Assistant
The upgrading of the two GS-18 positions to the Level V rank
Secretary who would be paid at Level IV ($39,900 per year). Two
would have no impact on costs because the salary levels are the same
Level V positions, the Director of Agricultural Economics and the
($37,800 per year). The addition of one seat to the Commodity Credit
Director of Science and Education, would be eliminated. Persons
Corporation Board would also have no cost effects. This provision
holding these posts receive $37,800 per year. Two other positions
simply adds one more assignment to an existing position.
would be upgraded. The Administrator of the Animal and Plant
6. Estimate comparison: None available.
Inspection Service and the Director of the Food and Nutrition
7. Previous CBO estimate: None.
Service would be raised from GS-18 to Level V. This adjustment does
8. Estimate prepared by: Robert M. Gordon.
not involve a salary increase because positions at both levels receive
9. Estimate approved by:
$37,800. The bill would also increase the size of the Commodity
C. G. NUCKOLS,
Credit Corporation Board by one.
Deputy Assistant Director for Budget Estimates.
According to the Secretary of Agriculture, these changes are needed
to make the executive positions of the Department comparable to
o
those of other agencies.
4. Cost estimate: Upgrading the position of Under Secretary and
establishing a new Assistant Secretary would result in additional
costs. These increases, however, would be more than offset after the
transition quarter by the savings associated with the elimination of
the two Level V positions. Estimates of the net impact on costs are
shown in the table below.
Fiscal year-
Transition
quarter
1977
1978
1979
1980
1981
Upgrade Under Secretary
$709
$3,018
$3,284
$3,557
$3,802
$4,063
Create new Assistant Secretary
10,873
46,318
50,394
54,576
58,342
62,368
Eliminate 2 level IV positions
-10,301
-76,790
-83,549
-90,483
-96,727
-103,401
Upgrade 2 GS-18 positions to level V
Total
+1,281
-27,454
-29,871
-32,350
-34,583
-36,970
5. Basis for estimate: The estimates reflect changes in expenditures
for salaries and benefits. The impact of upgrading the position of
Under Secretary was estimated by projecting the future salary and
benefits costs of a Level II and Level III position and by calculating
the net increases in expenditures. Estimates of future costs were based
on the current salary levels and CBO projections of future increases in
federal salaries. A sum equivalent to 9 percent of the salary base was
added to the annual earnings to reflect the associated benefits. It was
H.R. 1156
H.R. 1156
94TH CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
2d Session
No. 94-1206
PROVIDING FOR THE CONSIDERATION OF H.R. 10133
JUNE 2, 1976.-Referred to the House Calendar and ordered to be printed
Mr. SISK, from the Committee on Rules,
submitted the following
REPORT
[To accompany H. Res. 1243]
The Committee on Rules, having had under consideration House
Resolution 1243, by a nonrecord vote, report the same to the House
with the recommendation that the resolution do pass.
57-008
94TH CONGRESS
SENATE
REPORT
2d Session
No. 94-1377
USDA EXECUTIVE ADJUSTMENTS
SEPTEMBER 30, 1976.-Ordered to be printed
Mr. ALLEN, from the Committee on Agriculture and Forestry,
submitted the following
REPORT
[To accompany H.R. 10133]
The Committee on Agriculture and Forestry, to which was referred
the bill (H.R. 10133) to upgrade the position of Under Secretary of
Agriculture to Deputy Secretary of Agriculture; to provide for an
additional Assistant Secretary of Agriculture; to increase the compen-
sation of certain officials of the Department of Agriculture; to provide
for an additional member of the Board of Directors, Commodity
Credit Corporation; and for other purposes, having considered the
same, reports favorably thereon with amendments and recommends
that the bill as amended do pass.
SHORT EXPLANATION
H.R. 10133 would-
(1) upgrade the position of Under Secretary to Deputy Secre-
tary of Agriculture;
(2) establish a new position of Assistant Secretary of Agri-
culture at Executive Level IV;
(3) remove from Executive Level V the position of Director of
Agricultural Economics (whose duties will be assumed by the
new Assistant Secretary);
(4) change the positions of Administrator, Animal and Plant
Health Inspection Service, and Administrator, Food and Nutri-
tion Service, from GS-18 to Executive Level V;
(5) increase the membership of the Board of Directors of the
Commodity Credit Corporation from six to seven; and
(6) exempt custom poultry harvesting, breeding, debeaking,
sexing, and health service operations from the provisions of the
Farm Labor Contractor Registration Act of 1963 where the
employees are not migrant workers.
57-010-76-1
2
3
COMMITTEE AMENDMENTS
Many new agricultural programs affecting both farmers and con-
On page 2, beginning with line 23, strike out all down through line
sumers have been authorized by Congress since 1953. Other programs
6 on page 3, and insert in lieu thereof the following:
have been greatly expanded. The duties of the-Department relate to
a wide variety of programs-regulatory and nonregulatory. They
SEC. 3. (a) Section 5315 of title 5 of the United States Code
include major programs with respect to poultry and meat inspection,
is amended by striking out "(4)" at the end of paragraph
agricultural credit, conservation, price support, surplus removal, crop
(11) and by inserting in lieu thereof "(5)".
insurance, research, family feeding, child nutrition, and numerous
(b) Section 5316 of title 5 of the United States Code is
other regulatory measures designed to effectuate production adjust-
amended—
ment, parity prices, orderly marketing, or other statutory goals.
(1) by striking out paragraph (55) and
Net budgetary expenditures for all activities of the Department
(2) by adding at the end thereof new paragraphs
increased from about $4.7 billion in 1953 to an estimated $10.7 billion
(137) and (138) as follows:
in 1977. During this same period, the man-years (average annual
"(137) Administrator, Animal and Plant Health Inspec-
employment) increased from 62,479 to 105,752.
tion Service, Department of Agriculture.
At present, the Secretary of Agriculture has available to assist him
"(138) Administrator, Food and Nutrition Service, De-
in managing and directing the programs of the Department a top-level
partment of Agriculture."
staff consisting of one Under Secretary, four program Assistant
The Committee amendment retains at the Executive Level V the
Secretaries, one Assistant Secretary for Administration, and the
Director of Science and Education, Department of Agriculture, and
Director of Agricultural Economics. This group of officials is re-
changes the Administrator, Food and Nutrition Service, Department
sponsible for developing the policies and directing and managing the
of Agriculture, to an Executive Level V position from a position which
operations of a Department that carries out programs at over 10,000
presently calls for the salary of a GS-18. In addition, the Committee
locations, in every one of the 50 States, in over 3,000 counties, in
amendment makes a technical change in the language which provides
every major metropolitan area, and in many foreign countries.
that the new Assistant Secretary shall be compensated at Executive
Level IV.
II
On page 3, after line 18, add a new section 6 as follows:
The need for adequate staffing of the several departments at the
SEC. 6. Section 3(b) of the Farm Labor Contractor Regis-
Deputy Secretary and Assistant Secretary level has been recognized
tration Act of 1963, as amended (78 Stat. 920, as amended;
in most of the other cabinet level agencies. Four Departments of
7 U.S.C. 2042), is amended—
Government now have Deputy or Under Secretaries at Executive
(a) by striking out the period at the end of paragraph
Level II, including the Departments of State, Treasury, Defense
(8) and inserting in lieu thereof a semicolon and the
(which has two), and Transportation. The magnitude and scope of the
word 'or'; and
activities which Congress has authorized and directed the Department
(b) by adding at the end thereof a new paragraph
to carry out are as great as, or greater than, the activities of most
(9) as follows:
other cabinet level agencies.
"(9) any custom poultry harvesting, breeding, debeaking,
The Department of Agriculture has but four Assistant Secretaries
sexing, or health service operation, provided the employees
at Executive Level IV. These four positions rank low compared to
of the operation are not regularly required to be away from
other executive departments. The Defense Department and its
their domicile other than during their normal working hours."
service departments have a total of 22; the Department of Housing
The Committee amendment amends the Farm Labor Contractor
and Urban Development has eight; the Department of State has 12;
Act of 1963 to exempt custom poultry harvesting, breeding, debeaking,
the Department of Justice has nine; the Department of Treasury has
sexing, and health service operations from the provisions of that
five; the Department of the Interior has six; and the Department of
Act where the employees are clearly not migrant workers.
Labor has six. In terms of its budget, number of employees, pro-
grams, and general responsibilities, the Department merits a Deputy
BACKGROUND AND NEED FOR LEGISLATION
Secretary at Executive Level II.
In addition, the Department should have an additional Assistant
I
Secretary of Agriculture at Executive Level IV. The position of
Director of Agricultural Economics was established in the Office of
The major purpose of this legislation is to upgrade the top-level
the Secretary of Agriculture on October 13, 1961. This position has
staff of the United States Department of Agriculture. The scope,
as high a level of responsibility as have Assistant Secretaries of
magnitude, and complexity of the Department's operations have
Agriculture and, therefore, should be accorded the same rank.
increased substantially since 1953. However, the only additional top-
level policy position established since that time has been the position
of Assistant Secretary for Rural Development.
4
5
III
contractors not only keep such records, but also the producers and
processors would be required to obtain and retain copies of the
The positions of Administrator of the Animal and Plant Health
contractors' records in their own files. The poultry service operations,
Inspection Service and the Food and Nutrition Service should be
now being subjected to the Farm Labor Contractor Registration Act
upgraded to Executive Level V.
requirements, are not within the general ambit of "migrant" labor,
The Animal and Plant Health Inspection Service is one of the
but are subject to the Act because of the technical scope of the statu-
largest agencies in the Department of Agriculture. It has overall
tory definitions after the 1974 amendments.
responsibility for the meat and poultry inspection programs as well as
Poultry catching is performed on a contract basis, typically by the
the many programs in the areas of plant and animal disease and pest
company which hauls the poultry from growing house to processing
control. The agency employs over 15,000 people and administers
plant. The workers who catch poultry are residents in the area where
a budget of over $400 million. With the exception of the Forest Service,
they work and have stable employment ties with their contractor.
no agency in the Department employs more people, and none has a
The workers are not migrant, and the work is not seasonal.
greater diversity of responsibilities. However, seven agencies that are
There are many different patterns of contract poultry catching-a
smaller than this one have Level V administrators. The Food and
single contractor may serve only one large poultry producer/proc-
Drug Administration, which has comparable responsibilities, has a
essor or a catching contractor may serve several smaller producer/
Level V commissioner even though its employment (6,763) and
processors.
budget ($252 million) are less than half of those of the Animal and
Poultry breeding is performed on a contract basis similar to poultry
Plant Health Inspection Service.
catching. The contractor brings his crew to the poultry breeding
The growth in importance and in budgetary impact of the programs
farm and performs artificial insemination services at that location.
of the Food and Nutrition Service probably has no peacetime parallel
The same situation exists with respect to poultry sexing, debeaking,
among Federal agencies. In fiscal year 1970, the agency had a staff of
and health service operations.
1,747 to administer programs with outlays of approximately $1
The Committee believes that such custom poultry service opera-
billion. By fiscal year 1976, the staff had grown to 2,534 and its
tions-where the workers are clearly not migrant workers-should
budget had increased to $7.9 billion, due in large measure to the
not be subject to the provisions of the Farm Labor Contractor Regis-
scope and magnitude of the various food programs administered
tration Act.
by the Food and Nutrition Service.
The Committee recognizes that the Senate Committee on Labor
and Public Welfare has legislative jurisdiction of the Farm Labor
IV
Contractor Registration Act, and the Committee amendment to that
The main functions of the Commodity Credit Corporation have
Act is in no way meant to infringe on the jurisdiction of that Com-
been in areas pertaining to the production of commodities and the
mittee. The Committee believes, however, the amendment is meritori-
stabilization of prices thereof in line with the objective of improving
ous and should be enacted in order to provide necessary relief to the
net farm income. In recent years, greater public and Governmental
poultry industry.
COMMITTEE CONSIDERATION
attention has been focused on the stabilization of the rural popula-
tion and programs which enhance rural development. The basic
The provisions of H.R. 10133 which upgrade the top-level staff
economic decisions of the CCC Board of Directors need to be further
of the Department of Agriculture are similar to the provisions con-
correlated with the administration of rural development programs.
tained in S. 3031, a bill which was reported by the Committee and
An additional member on the CCC Board of Directors will strengthen
passed by the Senate during the 93rd Congress.
this relationship.
When the Committee met on September 1, 1976, to consider H.R.
V
10133, it agreed to strike from the bill a provision which would
The Farm Labor Contractor Registration Act was amended in 1974
eliminate the position of the Director of Science and Education from
to cover all types of agricultural contract labor, regardless of the
the list of Executive Level V positions. The members were informed
number of workers involved or whether the workers were recruited
by a Departmental representative that the functions of the Director
for interstate or intrastate agricultural employment. As a result of
of Science and Education are presently being performed by the
the 1974 amendments, contractors performing certain poultry service
Assistant Secretary for Conservation, Research, and Education.
operations, who are not in interstate commerce and who typically
However, the Committee believes that these functions are so important
operate with small crews, are not subject to the requirements of the
that the position should remain available for a possible future
appointment.
Act. These poultry service operations are poultry harvesting; breed-
ing services, such as artificial insemination; poultry sexing; debeaking;
The Committee also agreed to change the position of the Admin-
and health services such as vaccination.
istrator, Food and Nutrition Service from a GS-18 to Executive
The 1974 amendments require these contractors to compile and
Level V. This change was included in the version of the bill reported
retain extensive personnel records. Poultry producers and processors
by the House Committee on Agriculture. The functions of the Ad-
contracting for these services would be required to ascertain that their
ministrator, Food and Nutrition Service are significant. The programs
6
7
he is responsible for administering represent a substantial portion of
Section 6. Farm Labor Contractor Registration Act
the Department's appropriations.
Section 6 amends subsection 3(b) of the Farm Labor Contractor
The Committee also agreed to amend the Farm Labor Contractor
Registration Act of 1963, as amended, to exempt from the provisions
Registration Act to exempt from the provisions of that Act custom
poultry harvesting, breeding, debeaking, sexing, and health service
of that Act, custom poultry harvesting, breeding, debeaking, sexing,
operations, provided the employees are not regularly required to be
and health service operations, provided the employees of the operations
away from their domicile other than during their normal working
are not regularly required to be away from their domicile other than
hours. The Committee, while recognizing that the Senate Labor Com-
during their normal working hours.
mittee has legislative jurisdiction of the Farm Labor Contractor
DEPARTMENTAL VIEWS
Registration Act, believes that such exemptions would be in accord
with the basic purpose of that Act.
I
SECTION-BY-SECTION ANALYSIS
In a letter to the President of the Senate dated May 30, 1975, the
Secretary of Agriculture requested enactment of legislation upgrading
Section 1. Under Secretary to Deputy Secretary
the top-level staff of the Department of Agriculture. The Secretary's
Section 1 elevates the position of the officer who is second in com-
letter reads as follows:
mand at the United States Department of Agriculture from Under
DEPARTMENT OF AGRICULTURE,
Secretary, at pay level III of the Executive Schedule ($42,000 per
OFFICE OF THE SECRETARY,
annum), to Deputy Secretary, at pay level II of that schedule
Washington, D.C., May 30, 1975.
($44,600). Section 1 also provides that the incumbent Under Secre-
Hon. NELSON A. ROCKEFELLER,
tary on the date of enactment of the bill, who was appointed by the
President of the Senate,
President with the advice and consent of the Senate, may assume the
Washington, D.C.
duties of the new position and shall not be required to be reappointed.
DEAR MR. PRESIDENT: Enclosed is a draft of a bill to provide the
Section 2. New Assistant Secretary
following adjustments in the top-level policy staff of the Department
Section 2 adds one new position of Assistant Secretary of Agricul-
of Agriculture:
ture, to be appointed by the President, by and with the advice and
Upgrade the position of Under Secretary to Deputy Secretary
consent of the Senate, who shall perform such duties as the Secretary
of Agriculture;
of Agriculture shall prescribe. The Department of Agriculture pres-
Establish two new positions as Assistant Secretary of Agri-
ently has four program Assistant Secretaries and an Assistant Secre-
culture at Executive Level IV;
tary for Administration.
Raise the position of Administrator, Animal and Plant Health
Inspection Service, from GS-18 to Executive Level V; and
Section 3. Pay Schedule
Increase the membership of the board of the Commodity
Section 3 adds the new Assistant Secretary of Agriculture to the
Credit Corporation from six to seven.
category of persons who are compensated at Executive Level IV
The purpose of this legislation is to bring the USDA top-level staff
($39,900 per annum). Section 3 also deletes from the list of positions
in line with other departments and to recognize the tremendous
compensated at Executive Level V ($37,800 per annum) the position
growth in the scope and complexity of USDA programs since 1953,
of Director of Agricultural Economics, and adds to that list the posi-
the last time such legislation was enacted.
tions of Administrator, Animal and Plant Health Inspection Service,
The scope, magnitude, and complexity of the Department's opera-
and Administrator, Food and Nutrition Service, which presently calls
tions have increased substantially since 1953, while the only additional
for the salary of a GS-18 ($37,800 per annum).
top-level policy position approved since that time has been the position
Section 4. CCC Board of Directors
of Assistant Secretary for Rural Development which was included in
Section 4 amends section 9(a) of the Commodity Credit Corporation
the Rural Development Act of 1972.
Charter Act, as amended, to increase the number of positions on the
At present the Secretary of Agriculture has available to assist him in
Board of Directors of the Commodity Credit Corporation from six to
managing and directing the complex and far-reaching programs of the
Department of Agriculture a top-level staff consisting of one Under
seven.
Secretary, four program Assistant Secretaries, an Assistant Secretary
Section 5. Effective date of the bill
for Administration, and the Director of Agricultural Economics. This
Section 5 provides that the provisions of the bill shall take effect
small group of top policy officials is responsible for developing the
upon the date of enactment, except that the removal of the position
policies and directing and managing the operations of a Department
of Director of Agricultural Economics from level V of the Executive
that carries out its many complex programs at over 10,000 locations, in
Schedule shall not take effect until the new Assistant Secretary is
every one of the 50 states, in over 3,000 counties, in every major
appointed.
metropolitan area, and in many foreign countries.
8
9
Many new programs have been enacted by the Congress since 1953,
We are also proposing that the position of Administrator, Animal
such as watershed protection, mandatory poultry inspection, National
and Plant Health Inspection Service, be established at Executive
Wool Act, Food Stamp Program, Child Nutrition Act, Agricultural
Level V. This agency is one of the largest and most complex in this
Fair Trade Practices Act, water and sewer program, cooperative
Department. It has overall responsibility for the meat and poultry
forestry research program, and programs for the disposition of com-
inspection programs as well as the many programs in the areas of
modities under the Agricultural Trade Development and Assistance
plant and animal disease and pest control. The agency employs over
Act (Public Law 480), and resource conservation and development
15,000 people and administers a budget of over $400 million. With
program.
the exception of the Forest Service, no agency in the Department
Existing programs have been expanded in the areas of meat inspec-
employs more people, and none has a greater diversity of responsi-
tion, marketing, food distribution, nutrition, consumer services, re-
bilities. However, seven agencies that are smaller than this one have
search, education, forest land management, timber sales, rural housing,
Level V administrators. It should also be noted that the Food and
technical assistance by the Soil Conservation Service to farmers and
Drug Administration, which has comparable responsibilities, has a
soil conservation districts, and rural area development activities.
Level V commissioner even though its employment (6,200) and budget
The relationship between these programs and other Government
($160 million) are less than half of those administered by the Animal
programs are becoming more and more complex. This has resulted, for
and Plant Health Inspection Service.
example, in designation of the Secretary of Agriculture as a member of
The main functions of the Commodity Credit Corporation have
the Council on International Economic Policy, the Cost of Living
been in those areas pertaining to the production of commodities, and
Council, the Water Resources Council and other groups.
the stabilization of prices thereof in line with the objective of im-
Net budgetary expenditures for all activities of the Department in-
proving net farm income. Of recent years, greater public and govern-
creased from about $4.7 billion in 1953 to an estimate of about $8.9
mental attention has been focused on the stabilization of the rural
billion in 1975. During this same period the man-years (average
population and toward this end, major emphasis has been directed to
annual employment) increased from 62,479 to 100,497.
those programs which enhance rural development. In this regard the
The need for adequate staffing of the several Departments at the
basic economic decisions of the CCC Board need to be further corre-
Deputy Secretary and Assistant Secretary level has been recognized in
lated with the administration of Rural Development programs. We
most of the other cabinet-level agencies of the Government. We
believe this proposal to provide an additional member to the CCC
believe the magnitude and scope of the activities which the Congress
Board of Directors will strengthen this relationship.
has authorized and directed this Department to carry out are as great
The Office of Management and Budget advises that there is no
as, or greater than, those of most other civilian cabinet-level agencies.
objection to the presentation of this proposed legislation from the
Four Departments of Government now have Deputy or Under
standpoint of the Administration's program.
Secretaries at the Executive Level II, including the Departments of
Sincerely,
State, Treasury, Defense (2), and Transportation. The Department
EARL L. BUTZ, Secretary.
of Agriculture, in terms of budget, numbers of employees, breadth
Enclosure.
of program, and general responsibility is sufficiently important to
merit a Deputy Secretary at the Executive Level II. In addition,
A BILL To upgrade the position of Under Secretary of Agriculture to
Deputy Secretary of Agriculture; to provide for two additional Assist-
changing the classification of this position from Under Secretary to
ant Secretaries of Agriculture; to increase the compensation of certain
Deputy Secretary will give the incumbent additional influence as he
officials of the Department of Agriculture; to provide for an additional
deals with other Departments of Government and with agencies
member of the Board of Directors, Commodity Credit Corporation;
outside Government.
and for other purposes.
This Department with four Executive Level IV Assistant Secre-
Be it enacted by the Senate and House of Representatives of the
taries ranks low among the Executive Departments. Compared with
United States of America in Congress assembled, That (a)
four such positions in this Department, the Defense Department and
section 5313 of title 5 of the United States Code is amended
its service departments have 22; the Department of Housing and
by adding at the end thereof the following new paragraph:
Urban Development has eight; the Department of State has 12; the
"(22) Deputy Secretary of Agriculture.".
Department of Justice has nine; the Department of Treasury has
(b) Section 5314 of such title 5 is amended by striking out
five; the Department of the Interior has six; and the Department of
paragraph (3).
Labor has SIX. The position of Director of Agricultural Economics
(c) The Acts listed in paragraphs (1) and (2) of this sub-
was established in the Office of the Secretary of Agriculture on
section are amended by striking out the words "Under
October 13, 1961. The position of Assistant Secretary for Admin-
Secretary of Agriculture" wherever they appear and by insert-
istration was established in the Office of the Secretary of Agriculture
ing culture": in lieu thereof the words "Deputy Secretary of Agri-
by the Reorganization Plan of 1953. Both of these positions have as
high a level of responsibility as Assistant Secretaries of Agriculture
(1) The Act of March 26, 1934 (48 Stat. 467; 7 U.S.C. 2210).
have, and, therefore, should be accorded the same rank.
(2) The Act of June 5, 1939 (53 Stat. 809; 7 U.S.C. 2211).
S. 1377-2
10
11
(d) The officer occupying the position of Under Secretary
DEPARTMENT OF AGRICULTURE,
of Agriculture, on the date of enactment of this Act, may
OFFICE OF THE SECRETARY,
assume the duties of the Deputy Secretary of Agriculture.
Washington, D.C., March 23, 1976.
The individual assuming such duties shall not be required
Hon. E DE LA GARZA,
to be reappointed by reason of the enactment of this Act.
Chairman, Subcommittee on Department Operations, Investigations and
SEC. 2. There shall be hereafter in the Department of
Oversight, Committee on Agriculture, House of Representatives,
Agriculture, in addition to the Assistant Secretaries now
Washington, D.C.
provided for by law, two additional Assistant Secretaries of
Agriculture who shall be appointed by the President, by and
DEAR KIKA: In view of the hearing scheduled by your subcommittee
with the advice and consent of the Senate, shall be responsi-
for March 29 on H.R. 10133, I would like to take this opportunity to
ble for such duties as the Secretary of Agriculture shall
set forth our latest thinking on this bill. As you know the Department
prescribe, and shall receive compensation at the rate now
of Agriculture transmitted this proposal to the Congress on May 30,
or hereafter prescribed by law for Assistant Secretaries of
1975. We recommend that your Committee approve H.R. 10133 with
the changes noted below.
Agriculture.
SEC. 3. (a) Section 5315 of title 5 of the United States
The purpose of this legislation is to bring the top-level staff of the
Department of Agriculture in line with other departments and to
Code is amended by striking out "(4)" at the end of para-
recognize the tremendous growth in USDA programs since 1953, the
graph (11) and by inserting in lieu thereof "(6)".
(b) Section 5316 of such title 5 is amended as follows:
last time such adjustments occurred. The scope, magnitude, and com-
plexity of the Department's operations have increased substantially
(1) By striking out paragraph (23).
since 1953, while the only additional top-level policy position approved
(2) By striking out paragraph (55).
since that time has been the additional Assistant Secretary position
(3) By striking out paragraph (63) and inserting in lieu
which was included in the Rural Development Act of 1972.
thereof:
Thus, the bill
"(63) Administrator, Animal and Plant Health Inspection
Service, Department of Agriculture."
Upgrades the position of Under Secretary to Deputy Secretary
of Agriculture;
(c) Section 3 of Reorganization Plan Numbered 2 of 1953
Establishes two new positions as Assistant Secretary of Agricul-
(67 Stat. 633) is hereby repealed.
ture at Executive Level IV;
SEC. 4. Section 9(a) of the Commodity Credit Corporation
Raises the position of Administrator, Animal and Plant Health
Charter Act, as amended (62 Stat. 1072, as amended, 15
Inspection Service, from GS-18 to Executive Level V; and
U.S.C. 714g (a)), is amended by striking out the third sen-
Increases the membership of the Board of the Commodity
tence and inserting in lieu thereof: "The Board shall consist
Credit Corporation from six to seven.
of seven members (in addition to the Secretary), who shall
The reasons for these changes are adequately set forth in our trans-
be appointed by the President by and with the advice and
mittal letter SO I will not repeat them. We would, however, like to
consent of the Senate."
recommend the following changes.
SEC. 5. (a) Except as otherwise provided in this section,
We requested two additional Assistant Secretaries of Agriculture
this Act shall take effect on its date of enactment.
at Executive Level IV. However, if the intent of the Committee on
(b) Subsection (b) (1) and subsection (c) of section 3 of
Agriculture is to include one additional Assistant Secretary position
this Act shall take effect upon appointment of a Presidential
in H.R. 11743, the bill dealing with agricultural research, only one
appointee to fill the successor position created by section 2
is needed in H.R. 10133. Furthermore, in any event, we recommend
of this Act.
that the provisions in H.R. 10133 relating to the Assistant Secretary
(c) Subsection (b) (2) of section 3 of this Act shall take
for Administration be deleted from the bill. As you may recall, the bill
effect upon appointment of a Presidential appointee to fill the
as submitted contemplates upgrading the positions of Director of
successor position created by section 2 of this Act.
Agricultural Economics and Assistant Secretary for Administration
to Executive Level IV Assistant Secretary positions. The Department
II
no longer feels that any change is necessary with respect to the position
of the Assistant Secretary for Administration.
In letters to the Honorable E. de la Garza, Chairman, Subcommittee
With these changes I strongly urge your approval of H.R. 10133.
on Department Operations, Investigations and Oversight, Com-
Sincerely,
mittee on Agriculture, House of Representatives, dated March 23,
EARL L. BUTZ,
1976, and April 1, 1976, the Secretary of Agriculture and the Under
Secretary of Agriculture.
Secretary of Agriculture recommended that H.R. 10133 be enacted
with changes. The letters read as follows:
12
13
DEPARTMENT OF AGRICULTURE,
The Committee's estimate is based on the cost estimate of H.R.
OFFICE OF THE SECRETARY,
10133 prepared by the Congressional Budget Office pursuant to the
Washington, D.C., April 1, 1976.
Congressional Budget Act of 1974. The principal difference between the
Hon. E DE LA GARZA,
Committee's estimate and the estimate prepared by the Congressional
Chairman, Subcommittee on Department Operations, Investigation and
Budget Office arises from the fact that H.R. 10133, as amended by
Oversight, Committee on Agriculture, House of Representatives,
the Committee, only eliminates one level V position.
Washington, D.C.
Representatives of the Department of Agriculture have informally
DEAR MR. CHAIRMAN: At the hearing before your Subcommittee on
advised the Committee that the increased costs for fiscal year 1977
March 29 concerning H.R. 10133 you requested that we provide the
would be absorbed within existing appropriations.
Department's views on the proposal of Mr. Richmond to raise the posi-
tion of Administrator of the Food and Nutrition Service from GS-18
II
to Executive Level V.
We recognize that there has been an increase in the scope and mag-
The cost estimate prepared by the Congressional Budget Office
nitude of the various food programs administered by the Food and
reads as follows:
Nutrition Service of this Department. Since the Food and Nutrition
CONGRESS OF THE UNITED STATES,
Service came into existence on August 8, 1969, its total program out-
CONGRESSIONAL BUDGET OFFICE,
lays have risen from $1.0 billion in Fiscal Year 1970 to $7.9 billion
Washington, D.C., May 26, 1976.
in Fiscal Year 1976. And, in this period employment has increased
Hon. THOMAS S. FOLEY,
from 1,747 to 2,534. Thus, we would agree that there is justification
Chairman, Committee on Agriculture,
for upgrading the position of Administrator of the Food and Nutri-
U.S. House of Representatives, Washington, D.C.
tion Service.
DEAR MR. CHAIRMAN: Pursuant to Section 403 of the Congressional
While we would prefer that any change with regard to this matter
Budget Act of 1974, the Congressional Budget Office has prepared
be delayed until all questions concerning proposed food stamp legis-
the attached cost estimate for H.R. 10133, a bill concerning adjust-
lation are resolved, we would not object to including a provision in
ments in USDA executive staff.
H.R. 10133 to establish this position of Administrator of the Food
Should the Committee SO desire, we would be pleased to provide
and Nutrition Service at Executive Level V.
further details on the attached cost estimate.
The Office of Management and Budget advises that there is no ob-
Sincerely,
jection to the presentation of this report from the standpoint of the
ALICE M. RIVLIN, Director.
Administration's program.
Attachment.
Sincerely,
JOHN A. KNEBEL,
CONGRESSIONAL BUDGET OFFICE-COST ESTIMATE
Under Secretary.
1. Bill number: H.R. 10133.
2. Bill title: Adjustments in USDA Executive Staff.
COST ESTIMATE
3. Purpose of bill: H.R. 10133 would upgrade certain
executive positions within the Department of Agriculture.
I
The position of Under Secretary would be upgraded to
Deputy Secretary, which would raise the level of compensa-
In accordance with section 252 of the Legislative Reorganization
tion for the number two position from Executive Level III
Act of 1970, the following is the Committee's estimate of the increased
($42,000 per year) to Level II ($44,600 per year). The legisla-
costs which would be incurred in carrying out the provisions of
tion would also create a position for an additional Assistant
H.R. 10133.
Secretary who would be paid at Level IV ($39,900 per year).
Two Level V positions, the Director of Agricultural Eco-
Fiscal year-
nomics and the Director of Science and Education, would
1977
1978
1980
be eliminated. Persons holding these posts receive $37,800
1979
1981
per year. Two other positions would be upgraded. The Ad-
Upgrade Under Secretary
$2,600
$3,284
$3,557
$3,802
$4,063
ministrator of the Animal and Plant Inspection Service and
Create new Assistant Secretary
39,900
50,394
54,576
58,342
62,368
the Director of the Food and Nutrition Service would be
Eliminate 1 level V position
-37,800
-41,774
-45,241
-48,363
-51,700
Upgrade 2 GS-18 positions to level V.
raised from GS-18 to Level V. This adjustment does not
Total increase
+4,700
+11,904
+12,892
+13,781
+14,731
involve a salary increase because positions at both levels.
receive $37,800. The bill would also increase the size of the
Commodity Credit Corporation Board by one.
14
15
According to the Secretary of Agriculture, these changes
6. Estimate comparison: None available.
are needed to make the executive positions of the Department
7. Previous CBO estimate: None.
comparable to those of other agencies.
8. Estimate prepared by: Robert M. Gordon.
4. Cost estimate: Upgrading the position of Under Secre-
9. Estimate approved by:
tary and establishing a new Assistant Secretary would result
C. G. NUCKOLS,
in additional costs. These increases, however, would be more
Deputy Assistant Director for Budget Estimates.
than offset after the transition quarter by the savings as-
sociated with the elimination of the two Level V positions.
CHANGES IN EXISTING LAW
Estimates of the net impact on costs are shown in the table
below.
In compliance with subsection (4) of rule XXIX of the Standing
Rules of the Senate, changes in existing law made by the bill are
shown as follows (existing law proposed to be omitted is enclosed in
Fiscal year-
black brackets, new matter is printed in italic, existing law in which
Transition
quarter
1977
1978
1979
1980
1981
no change is proposed is shown in roman):
Upgrade Under Secretary
$709
$3,018
$3,284
$3,557
$3,802
$4,063
TITLE 5, UNITED STATES CODE
Create new Assistant Secretary
10,873
46,318
5, 0394
54,576
58,342
62,368
Eliminate 2 level IV positions
-10,301
-76,790
-83,549
-90,483
-96,727
-103,401
Upgrade 2 GS-18 positions to level V
Total
+1,281
-27,454
-29,871
-32,350
-34,583
-36,970
§ 5313. Positions at level II.
Level II of the Executive Schedule applies to the following positions,
5. Basis for estimate: The estimates reflect changes in ex-
for which the annual rate of basic pay shall be the rate determined
penditures for salaries and benefits. The impact of upgrading
with respect to such level under chapter 11 of title 2, as adjusted by
the position of Under Secretary was estimated by projecting
section 5318 of this title:
the future salary and benefits costs of a Level II and Level
III position and by calculating the net increases in ex-
penditures. Estimates of future costs were based on the
current salary levels and CBO projections of future increases
(23) Deputy Secretary of Agriculture.
in federal salaries. A sum equivalent to 9 percent of the salary
§ 5314. Positions at level III.
base was added to the annual earnings to reflect the associated
benefits. It was assumed further that the pay increase
Level III of the Executive Schedule applies to the following posi-
tions, for which the annual rate of basic pay shall be the rate deter-
would become effective during the transition quarter.
mined with respect to such level under chapter 11 of title 2, as ad-
A similar procedure was employed in calculating the cost
justed by section 5318 of this title:
of the new Assistant Secretary. The current salary base for
Level IV positions was inflated to show expected increases in
salaries during the five-year period and then augmented by
the benefit factor. The estimates in the table represent the
(3) Under Secretary of Agriculture.]
compensation cost only. Nothing was added for supporting
staff and overhead because it was assumed that the new posi-
tion would be filled by the current Director for Agricultural
Economics. His present staff and office expenses would not
§ 5315. Positions at level IV.
be affected by the promotion.
Level IV of the Executive Schedule applies to the following posi-
These increases in costs would be more than offset, at least
tions, for which the annual rate of basic pay shall be the rate deter-
after the transition quarter, by the cost-savings arising from
mined with respect to such level under chapter 11 of title 2, as adjusted
the elimination of the two Level V jobs. These savings were
by section 5318 of this title:
estimated by simply calculating the future costs of two Level
V positions.
The upgrading of the two GS-18 positions to the Level V
rank would have no impact on costs because the salary levels
(11) Assistant Secretaries of Agriculture [(4)] (5):
are the same ($37,800 per year). The addition of one seat to
the Commodity Credit Corporation Board would also have
no cost effects. This provision simply adds one more assign-
ment to an existing position.
16
17
§ 5316. Positions at level V.
and shall perform such other duties as may be required by law or
Level V of the Executive Schedule applies to the following positions,
prescribed by the Secretary of Agriculture.
for which the annual rate of basic pay shall be the rate determined
*
with respect to such level under chapter 11 of title 2, as adjusted by
COMMODITY CREDIT CORPORATION CHARTER Act
section 5318 of this title:
SEC. 9. DIRECTORS, ADVISORY BOARD: (a) The management of the
[(55) Director of Agricultural Economics, Department of Agri-
Corporation shall be vested in a board of directors (hereinafter re-
culture.
ferred to as the "Board"), subject to the general supervision and di-
rection of the Secretary. The Secretary shall be an ex officio director
and shall serve as Chairman of the Board. The Board shall consist of
six members (in addition to the Secretary), who shall be appointed by
(137) Administrator, Animal and Plant Health Inspection Service,
the President by and with the advice and consent of the Senate. The
Department of Agriculture.
Board shall consist of seven members (in addition to the Secretary),
(138) Administrator, Food and Nutrition Service, Department of
who shall be appointed by the President by and with the advice and
Agriculture.
consent of the Senate. In addition to their duties as members of the
Board such appointed members shall perform such other duties as
may be prescribed by the Secretary. Each appointed member of the
ACT OF MARCH 26, 1934
Board shall receive compensation at such rate not in excess of th
maximum then payable under the Classification Act of 1923, as
AN ACT Making appropriations for the Department of Agriculture and for the
amended, as may be fixed by the Secretary, except that any such mem-
Farm Credit Administration for the fiscal year ending June 30, 1935, and for
other purposes
ber who holds another office or position under the Federal Government
the compensation for which exceeds such rate may elect to receive
Be it enacted by the Senate and House of Representatives of the United
compensation at the rate provided for such other office or position in
States of America in Congress assembled, That the following sums are
lieu of the compensation provided by this section. A majority of the
appropriated, out of any money. in the Treasury not otherwise appro-
directors shall constitute a quorum of the Board and action shall be
priated, for the Department of Agriculture and for the Farm Credit
taken only by a majority votes of those present.
Administration for the fiscal year ending June 30, 1935, namely:
TITLE I-DEPARTMENT OF AGRICULTURE
FARM LABOR CONTRACTOR REGISTRATION ACT OF 1963, AS AMENDED
OFFICE OF THE SECRETARY
AN ACT To provide for the registration of contractors of migrant agricultural
workers, and for other purposes.
SALARIES
Be it enacted by the Senate and House of Representatives of the United
For the Secretary of Agriculture, Under Secretary of Agriculture]
States of America in Congress assembled, That this Act may be cited as
Deputy Secretary of Agriculture, $10,000, and there is hereby estab-
the "Farm Labor Contractor Registration Act of 1963".
lished in the Department of Agriculture the position of [Under
CONGRESSIONAL FINDINGS AND DECLARATION OF POLICY
Secretary of Agriculture] Deputy Secretary of Agriculture, to be
appointed by the President, by and with the advice and consent of
SEC. 2. (a) The Congress hereby finds that the channels and instru-
the Senate
mentalities of interstate commerce are being used by certain irresponsi-
ble contractors for the services of the migrant agricultural laborers
who exploit producers of agricultural products, migrant agricultural
Act OF JUNE 5, 1939
laborers, and the public generally, and that, as a result of the use of
Resolved by the Senate and House of Representatives of the United
the channels and instrumentalities of interstate commerce by such
States of America in Congress assembled, That the Under Secretary
irresponsible contractors, the flow of interstate commerce has, been
of Agriculture: Deputy Secretary of Agriculture is authorized to
impeded, obstructed, and restrained.
exercise the functions and perform the duties of the first assistant of
(b) It is therefore the policy of this Act to remove the impediments,
the Secretary of Agriculture within the meaning of section 177 of
obstructions, and restraints occasioned to the flow of interstate com-
the Revised Statutes of the United States (U.S.C., title 5, sec. 4)
merce by the activities of such irresponsible contractors by requiring
that all persons engaged in the activity of contracting for the services
1 Section 177 of the Revised Statutes was repealed by Public Law 89-554. The provi-
of workers for interstate agricultural employment comply with the
sions were replaced with 5 U.S.C. 3345.
18
provisions of this Act and all regulations prescribed hereunder by
the Secretary of Labor!
DEFINITIONS
SEC. 3. As used in this Act-
(a) The term "person" includes any individual, partnership, asso-
ciation, joint stock company, trust, or corporation.
(b) The term "farm labor contractor" means any person, who,
for a fee, either for himself or on behalf of another person, recruits,
solicits, hires, furnishes, or transports migrant workers (excluding
members of his immediate family) for agricultural employment.
Such term shall not include-
(1) any nonprofit charitable organization, public or nonprofit
private educational institution, or similar organization;
(2) any farmer, processor, canner, ginner, packing shed oper-
ator, or nurseryman who personally engages in any such activity
for the purpose of supplying migrant workers solely for his own
operation;
(3) any full-time or regular employee of any entity referred
to in (1) or (2) above who engages in such activity solely for
his employer on no more than an incidental basis;
(4) any person who engages in any such activity (A) solely
within a twenty-five mile intrastate radius of his permanent place
of residence and (B) for not more than thirteen weeks per year;
(5) any person who engages in any such activity for the pur-
pose of obtaining migrant workers of any foreign nation for
employment in the United States if the employment is subject
to—
(A) an agreement between the United States and such
foreign nation; or
(B) an arrangement with the government of any foreign
nation under which written contracts for the employment
of such workers are provided for and the enforcement there-
of is provided for through the United States by an instru-
mentality of such foreign nation;
(6) any full-time or regular employee of any person holding
a certificate of registration under this Act;
(7) any common carrier or any full-time regular employee
thereof engaged solely in the transportation of migrant workers;
(8) any custom combine, hay harvesting, or sheep shearing
operation ; or
(9) any custom poultry harvesting, breeding, debeaking, sexing [or
health service operation, provided the employees of the operation are
not regularly required to be away from their domicile other than
during their normal working hours.
*
*
*
CORRECTED
SHEET
H. R. 10133
Minety-fourth Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday, the nineteenth day of January,
one thousand nine hundred and seventy-six
An Act
To upgrade the position of Under Secretary of Agriculture to Deputy Secretary
of Agriculture; to provide for an additional Assistant Secretary of Agriculture;
to increase the compensation of certain officials of the Department of Agricul-
ture; to provide for an additional member of the Board of Directors,
Commodity Credit Corporation; and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That (a) section
5313 of title 5 of the United States Code is amended by adding at the
end thereof the following new paragraph:
"(23) Deputy Secretary of Agriculture.".
(b) Section 5314 of such title 5 is amended by striking out para-
graph (3).
(c) The Acts listed in paragraphs (1) and (2) of this subsection are
amended by striking out the words "Under Secretary of Agriculture"
wherever they appear and by inserting in lieu thereof the words
"Deputy Secretary of Agriculture":
(1) The Act of March 26, 1934 (48 Stat. 467; 7 U.S.C. 2210).
(2) The Act of June 5, 1939 (53 Stat. 809; 7 U.S.C. 2211).
(d) The officer occupying the position of Under Secretary of Agri-
culture, on the date of enactment of this Act, may assume the duties of
the Deputy Secretary of Agriculture. The individual assuming such
duties shall not be required to be reappointed by reason of the enact-
ment of this Act.
SEC. 2. There shall be hereafter in the Department of Agriculture,
in addition to the Assistant Secretaries now provided for by law, one
additional Assistant Secretary of Agriculture who shall be appointed
by the President, by and with the advice and consent of the Senate,
shall be responsible for such duties as the Secretary of Agriculture
shall prescribe, and shall receive compensation at the rate now or
hereafter prescribed by law for Assistant Secretaries of Agriculture.
SEC. 3. (a) Section 5315 of title 5 of the United States Code is
amended by striking out "(4)" at the end of paragraph (11) and by
inserting in lieu thereof (5)
(b) Section 5316 of title 5 of the United States Code is amended-
(1) by striking out paragraph (55) ; and
(2) by adding at the end thereof a new paragraph (137) as
follows:
(137) Administrator, Animal and Plant Health Inspection
Service, Department of Agriculture.".
SEC. 4. Section 9(a) of the Commodity Credit Corporation Charter
Act, as amended (62 Stat. 1072, as amended, 15 U.S.C. 714g(a)), is
amended by striking out the third sentence and inserting in lieu
thereof: "The Board shall consist of seven members (in addition to
the Secretary), who shall be appointed by the President by and with
the advice and consent of the Senate.".
SEC. 5. (a) Except as otherwise provided in this section, this Act
shall take effect on its date of enactment.
H. R. 10133-2
(b) Subsection (b) (1) of section 3 of this Act shall take effect
upon appointment of a Presidential appointee to fill the successor
position created by section 2 of this Act.
SEC. 6. Section 3(b) of the Farm Labor Contractor Registration
Act of 1963, as amended (78 Stat. 920, as amended; 7 U.S.C. 2042), is
amended—
(a) by striking out the period at the end of paragraph (8) and
inserting in lieu thereof a semicolon and the word "or"; and
(b) by adding at the end thereof a new paragraph (9) as
follows:
"(9) any custom poultry harvesting, breeding, debeaking, sex-
ing, or health service operation, provided the employees of the
operation are not regularly required to be away from their domi-
cile other than during their normal working hours.".
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.