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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 Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections.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 remain with them. If you think any of the information displayed in the PDF is subject to a valid 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.

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    "ocrText": "The original documents are located in Box 67, folder \"1976/10/19 HR10133 Department of\nAgriculture Positions\" of the White House Records Office: Legislation Case Files at the\nGerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nExact duplicates within this folder were not digitized.\nDigitized from Box 67 of the White House Records Office Legislation Case Files 8/0/19/76 at the Gerald R. Ford Presidential Library\nOCT 19\nTHE WHITE HOUSE\nACTION\nWASHINGTON\nLast Day: October 20\nOctober 19, 1976\nMEMORANDUM FOR\nTHE PRESIDENT\nhosted 10/20/76\nFROM:\nJIM CANNON HiDDuern\nSUBJECT:\nH.R. 10133 - Department of Agriculture\nPositions\narchies\n11/20/16\nAttached for your consideration is H.R. 10133, sponsored by\nRepresentative Foley.\nH.R. 10133 incorporates the provisions of an Administration\nproposal to upgrade top staff positions of USDA. Specifically,\nthe bill:\n-- upgrades the position of Under Secretary of Agriculture\nfrom Executive Level III to Level II and changes the\ntitle to Deputy Secretary;\n-- establishes an additional position of Assistant Secretary\nof Agriculture at Executive Level IV;\n-- raises the position of the Administrator, Animal and\nPlant Health Inspection Service from GS-18 to Executive\nLevel V:\n-- increases the membership of the Board of Directors of\nthe Commodity Credit Corporation from six to seven;\n-- removes from Executive Level V the position of Director\nof Agricultural Economics.\nThe bill also contains a nongermane rider, added by the Senate\nCommittee on Agriculture and Forestry, to exempt custom poultry\noperations from the requirements of the Farm Labor Contractor\nRegistration Act of 1963, provided the employees of the operations\nare not regularly required to be away from their homes other\nthan during their normal working hours.\nA detailed discussion of the provisions of the enrolled bill\nis provided in OMB's enrolled bill report at Tab A.\n2\nAgency Recommendations\nThe Department of Labor recommends veto of the bill unless the\nneed for executive level changes in USDA outweighs the\nDepartment's concerns about the exemption of poultry workers\nfrom FLCRA.\nThe Department of Agriculture recommends approval of the bill\nand has no objection to the FLCRA exemption amendment.\nOMB recommends approval of the bill.\nStaff Recommendations\nMax Friedersdorf, Counsel's Office (Lazarus) and I recommend\napproval of the enrolled bill.\nRECOMMENDATION\nThat you sign H.R. 10133 at Tab B.\nPRESIDENT\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nOCT 14 1976\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 10133 - Department of\nAgriculture Executive Positions\nSponsor - Rep. Foley (D) Washington\nLast Day for Action\nOctober 20, 1976 - Wednesday\nPurpose\nUpgrades the top-level policy positions of the U.S.\nDepartment of Agriculture (USDA) and exempts certain\ncustom poultry operations from the provisions of the\nFarm Labor Contractor Registration Act (FLCRA).\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of Agriculture\nApproval\nDepartment of Labor\nDisapproval\nDiscussion\nH.R. 10133 incorporates the provisions of an Administra-\ntion proposal to upgrade top staff positions of USDA.\nSpecifically, the bill upgrades the position of Under\nSecretary of Agriculture from Executive Level III to\nLevel II and changes the title to Deputy Secretary;\nestablishes an additional position of Assistant Secretary\nof Agriculture at Executive Level IV; raises the position\nof the Administrator, Animal and Plant Health Inspection\nService from GS-18 to Executive Level V; increases the\nmembership of the Board of Directors of the Commodity\nCredit Corporation from six to seven; and removes from\nExecutive Level V the position of Director of Agricultural\nEconomics.\n2\nH.R. 10133 also contains a nongermane rider, added by\nSenate Committee on Agriculture and Forestry, to exempt\ncustom poultry operations (i.e., harvesting, breeding,\ndebeaking, sexing, and health service) from the require-\nments of the Farm Labor Contractor Registration Act of\n1963, provided the employees of the operations are not\nregularly required to be away from their homes other\nthan during their normal working hours. The FLCRA was\namended in 1974 to cover all types of agricultural contract\nlabor, regardless of the number of workers involved or\nwhether the workers were recruited for interstate or intra-\nstate agricultural employment. As a result, contractors\nperforming poultry service operations, who are not in\ninterstate commerce and who typically operate with small\ncrews, must meet certain working and living standards\nrequirements, maintain records and comply with other\nprovisions of the act.\nIn recommending the exemption of poultry service operations,\nthe Senate Agriculture and Labor Committee stated in its\nreport, \"The poultry service operations, now being subjected\nto the Farm Labor Contractor Registration Act requirements,\nare not within the general ambit of 'migrant' labor, but\nare subject to the Act because of the technical scope of\nthe statutory definitions after the 1974 amendments\nThe Committee believes that such custom poultry service\noperations--where the workers are clearly not migrant workers-\nshould not be subject to the provisions of the Farm Labor\nContractor Registration Act.\"\nThis would be the second time since the 1974 amendments\nthat Congress has exempted a group from FLCRA coverage.\nP.L. 94-259, which you approved on April 15, 1976, exempted\ncustom combine operators, hay harvesters and sheep shearers.\nThat exemption, sponsored by Senator Robert Dole (Kansas),\nwas approved on the grounds that the class of workers\nexempted did not fall within the general ambit of unskilled\nmigrant farm workers that the FLCRA is intended to protect.\nThe Administration did not have an opportunity to comment\non the exemption amendment in the enrolled bill.\nAgency Recommendations\nLabor recommends a veto of the bill unless the need for\nexecutive level changes in USDA outweighs the Department's\nconcerns about the exemption of poultry workers from FLCRA.\n3\nIn its views letter, Labor states that it is not convinced\nthat the poultry workers affected do not need the pro-\ntections which the FLCRA affordsthem and is concerned that\nthis provision might be viewed as a precedent for further\nerosion of FLCRA coverage.\nAgriculture recommends approval of H.R. 10133 and has no\nobjection to the FLCRA exemption amendment.\n*******\nThe Department of Labor has no evidence that there have\nbeen, in poultry service operations, the farm labor con-\ntractor abuses that FLCRA is designed to prevent. In the\nabsence of such evidence, we see no justification for over-\nturning the Congressional determination that the proposed\nexemption is warranted. While Labor's concern about the\npossible precedential effect of the FLCRA exemption is\nnot without merit, we do not believe it warrants dis-\napproval of H.R. 10133. Accordingly, we concur in\nAgriculture's recommendation that you approve H.R. 10133.\nJonh James T. Lynn\nDirector\nEnclosures\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.:\nDate: October 15\nTime: 200pm\nFOR ACTION:\nPaul Leach on\nCC (for information):\nJack Marsh\nMax Friedersdorf MR\nEd Schmults\nBobbie Kilberg an\nSteve McConahey days\nDavid Lissy ak\nFROM THE STAFF SECRETARY\nDUE: Date:\nOctober 18\nTime: 200pm\nSUBJECT:\nH.R.10133-Departmant of Agriculutre Executive\nPositions\nACTION REQUESTED:\nFor Necessary Action\nFor Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX\nFor Your Comments\nDraft Remarks\nREMARKS:\nplease return to judy johnston,ground floor west wing\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please\nK. R. COLE, JR.\ntelephone the Staff Secretary immediately.\nFor the President\nSTATES DEPARTMENTOR\nDEPARTMENT OF AGRICULTURE\nOFFICE OF THE SECRETARY\nWASHINGTON, D. C. 20250\nOctober 1 2, 1976\nHonorable James T. Lynn\nDirector\nOffice of Management and Budget\nWashington, D. C.\nDear Mr. Lynn:\nThis is in reply to your request for our report on the enrolled enactment\nof H.R. 10133.\nThis Department recommends that the President approve the Act.\nThis enactment upgrades the position of Under Secretary of Agriculture\n(Executive Level III) to a Level II Deputy Secretary, establishes a new\nposition of Assistant Secretary of Agriculture at Executive Level IV,\nraises the position of Administrator of the Animal and Plant Health\nInspection Service from GS-18 to Executive Level V, increases the\nmembership of the Board of the Commodity Credit Corporation from six\nto seven, and removes from Executive Level V the position of Director of\nAgricultural Economics (whose duties will be assumed by the new Assistant\nSecretary). The Act also excludes from the requirements of the Farm\nLabor Contractor Registration Act custom poultry harvesting, breeding,\ndebeaking, sexing, and health service operations provided the employees\nof such operations are not regularly required to be away from their homes\nother than during normal working hours.\nThis legislation will bring the top-level staff of this Department in line\nwith other departments and recognize the tremendous growth in USDA programs\nsince 1953, the last time such adjustment occurred. The scope, magnitude,\nand complexity of the Department's operations have increased substantially\nsince 1953, while the only additional top-level policy position approved\nsince that time has been the additional Assistant Secretary position which\nwas included in the Rural Development Act of 1972.\nWe have no objection to the amendment to the Farm Labor Contractor\nRegistration Act.\n2.\nWe estimate the cost of H.R. 10133 to be about $5,000 for fiscal year\n1977. However, no additional appropriations would be required since\nthis cost could be absorbed within current appropriations.\nSincerely,\nyou I. Day\nJohn A. Knebel\nActing Secretary\nU.S. DEPARTMENT OF LABOR\nOFFICE OF THE SECRETARY\nWASHINGTON\nOCT 7 1976\nHonorable James T. Lynn\nDirector\nOffice of Management and Budget\nWashington, D. C. 20503\nDear Mr. Lynn:\nThis is in response to your request for our views on\nH.R. 10133, an enrolled enactment \"To upgrade the position\nof Under Secretary of Agriculture to Deputy Secretary of\nAgriculture; to provide for an additional Assistant\nSecretary of Agriculture; to increase the compensation of\ncertain officials of the Department of Agriculture; to\nprovide for an additional member of the Board of Directors,\nCommodity Credit Corporation; and for other purposes.\"\nWith respect to most of the provisions of this Act, we\ndefer to the views of the Department of Agriculture, which\nwould be primarily affected. However, we do oppose the\nprovision which would amend the Farm Labor Contractor\nRegistration Act (FLCRA), as amended, which is administered\nby this Department.\nThe proposed amendment to the Farm Labor Contractor\nRegistration Act provides that the term \"farm labor con-\ntractor,\" as defined in section 3 (b) of the Act, shall not\ninclude custom poultry harvesting, breeding, debeaking,\nsexing, and health service operations, provided that employees\nengaged in these operations are not regularly required to be\naway from their homes other than during normal working hours.\nThe effect of this provision will be to exempt these poultry\nservice operations from the requirements of the Act.\n- 2 -\nAvailable data indicates that over 4,000 employee-years are\ndevoted annually to activities involved in poultry service\noperations. However, since individuals employed for these\nactivities are almost always part-time workers, considerably\nmore individuals than the employee-years figure indicates\nwould be affected by the loss of FLCRA protections.\nWe are not convinced that this group of workers is not in\nneed of the protections which the Act affords them. For\nexample, the vehicle insurance and safety requirements are\nimportant to these workers in view of the fact that many\npoultry service contractors do transport workers. We\nbelieve the protection of the Act is needed and we are not\naware of any justification for denying these workers this\nprotection. Moreover, while the protections for workers\nunder the Act are substantial, the requirements of the Act\nare no different for poultry contractors than for any other\nfarm labor contractor. There is no charge for registration\nalthough there may be some cost implication. Section 5 of\nthe Act requires applicants for certificates to obtain\nminimum amounts of liability insurance on vehicles which\nwill be used to transport workers. Proof must also be\nprovided that each vehicle meets applicable safety and\nhealth standards. If the insurance coverage specified\nexceeds the amount the contractor would ordinarily carry, or\nif the vehicle does not meet safety and health standards,\nthere would be added costs involved.\nThe records required to be kept by contractors under the Act\nare similar to those payroll records kept by a prudent\nbusiness person. In addition to the usual payroll records,\na contractor is required to provide each worker with a\nstatement showing all sums paid to the contractor from\nmonies received on account of the labor of such workers.\nFinally, we are very much concerned that this provision,\nif enacted, might be viewed as a precedent for further\nerosion of FLCRA coverage.\nFor these reasons, we recommend that the President veto\nthis legislation unless it is determined that the need for\nthe Act's other provisions relating to the organization of\nthe Agriculture Department outweighs our concerns.\nSincerely,\nW Juany Jr.\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF management AND BUDGET\nWASHINGTON, D.C. 20503\n11:30pm.\nOCT 14 1976\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 10133 - Department of\nAgriculture Executive Positions\nSponsor - Rep. Foley (D) Washington\nLast Day for Action\nOctober 20, 1976 - Wednesday\nPurpose\nUpgrades the top-level policy positions of the U.S.\nDepartment of Agriculture (USDA) and exempts certain\ncustom poultry operations from the provisions of the\nFarm Labor Contractor Registration Act (FLCRA).\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of Agriculture\nApproval\nDepartment of Labor\nDisapproval\nDiscussion\nH.R. 10133 incorporates the provisions of an Administra-\ntion proposal to upgrade top staff positions of USDA.\nSpecifically, the bill upgrades the position of Under\nSecretary of Agriculture from Executive Level III to\nLevel II and changes the title to Deputy Secretary;\nestablishes an additional position of Assistant Secretary\nof Agriculture at Executive Level IV; raises the position\nof the Administrator, Animal and Plant Health Inspection\nService from GS-18 to Executive Level V; increases the\nmembership of the Board of Directors of the Commodity\nCredit Corporation from six to seven; and removes from\nExecutive Level V the position of Director of Agricultural\nEconomics.\nTHE WHITE HOUSE\nACTIO MEMORANDUM\nWASHINGTON\nLOG NO.:\nDate: (\nber 15\nTime: 200pm\nFOR ACTION:\nPaul Leach\nCC (for information):\nJack Marsh\nMax Friedersdorf\nEd Schmults\nBobbie Kilberg\nSteve McConahey\nDavid Lissy\nFROM THE STAFF SECRETARY\nDUE: Date:\nOctober 18\nTime: 200pm\nSUBJECT:\nH.R. 10133-Department of Agriculutre Executive\nPositions\nACTION REQUESTED:\nFor Necessary Action\nFor Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX\nFor Your Comments\nDraft Remarks\nREMARKS:\nplease return to judy johnston, ground floor west wing\nNo objection -- Ken Lazarus 10/15/76\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelav in submitting the required material, please\nK. R. COLE, JR.\nTHE WHITE HOUSE\nAC' ON MEMORANDUM\nWASHINGTON\nLOG NO.:\nDa\noctober 15\nTime: 200pm\nFOR ACTION:\nPaul Leach\nCC (for information):\nJack Marsh\nMax Friedersdorf\nEd Schmults\nBobbie Kilberg\nSteve McConahey\nDavid Lissy\nFROM THE STAFF SECRETARY\nDUE: Date:\nOctober 18\nTime: 200pm\nSUBJECT:\nH.R. 10133- Department of Agriculutre Executive\nPositions\nACTION REQUESTED:\nFor Necessary Action\nFor Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX\nFor Your Comments\nDraft Remarks\nREMARKS:\nplease return to judy johnston, ground floor west wing\nRecommend approval my\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelav in submitting the required material, please\nK. R. COLE, JR.\n94TH CONGRESS\nHOUSE OF REPRESENTATIVES\nREPORT\n2d Session\nNo. 94-1156\nUSDA EXECUTIVE ADJUSTMENTS\nMAY 15, 1976.-Committed to the Committee of the Whole House on the State\nof the Union and ordered to be printed\nMr. FOLEY, from the Committee on Agriculture, submitted the\nfollowing\nREPORT\ntogether with\nDISSENTING VIEWS\n[Including the Congressional Budget Office cost estimates]\n[To accompany H.R. 10133]\nThe Committee on Agriculture, to whom was referred the bill (H.R.\n10133), to upgrade the position of Under Secretary of Agriculture to\nDeputy Secretary of Agriculture; to provide for two additional As-\nsistant Secretaries of Agriculture; to increase the compensation of cer-\ntain officials of the Department of Agriculture; to provide for an ad-\nditional member of the Board of Directors, Commodity Credit Cor-\nporation; and for other purposes, having considered the same, report\nfavorably thereon with amendments and recommend that the bill as\namended do pass.\nThe amendments are as follows:\nPage 1, line 6, strike (22) and insert \" (23)\nPage 2, line 19, strike the clause \"two additional Assistant Secre-\ntaries\" and insert in lieu thereof \"one additional Assistant Secretary\".\nPage 3, lines 2 and 3, strike all of the sentence after the words \"is\namended\" and insert in lieu thereof \"by striking the number which ap-\npears in the parenthesis at the end of paragraph (11) and by inserting\nin lieu thereof the next higher number.\"\nPage 3, strike lines 5, 11 and 12 inclusive.\nPage 3, line 6, strike \"(2)\" and insert in lieu thereof \"(1)\".\nPage 3, line 7, strike \"(3)\" and insert in lieu thereof \"(2)\".\nPage 3, immediately after line 10, insert the following: \" (3) By in-\nserting a new paragraph (64) as follows: (64) Administrator, Food\nand Nutrition Service'.\"\n(1)\n2\n3\nPage 3, strike lines 22 through 25, and insert in lieu thereof: \"(b)\nSubsections (b) (2) and (3) shall become effective January 21, 1977.\nthat carries out its many complex programs at over 10,000 locations,\nPage 4, line 1, strike (b) (2)\" and insert in lieu thereof (b) (1)\nin every one of the 50 States, in over 3,000 counties, in every major\nAmend the title to read as follows:\nmetropolitan area, and in many foreign countries.\nMany new programs have been enacted by the Congress since 1953,\nTo upgrade the position of Under Secretary of Agriculture\nsuch as watershed protection, mandatory poultry inspection, National\nto Deputy Secretary of Agriculture; to provide for an addi-\nWool Act, Food Stamp Program, Child Nutrition Act, Agricultural\ntional Assistant Secretary of Agriculture; to increase the\nFair Trade Practices Act, water and sewer program, cooperative\ncompensation of certain officials of the Department of Agri-\nforestry research program, and programs for the disposition of com-\nculture; to provide for an additional member of the Board of\nmodities under the Agricultural Trade Development and Assistance\nDirectors, Commodity Credit Corporation; and for other\nAct (Public Law 480), and resource conservation and development\npurposes.\nprogram. Existing programs have been expanded in the areas of meat\ninspection, marketing, food distribution, nutrition, consumer services,\nBRIEF EXPLANATION OF THE LEGISLATION\nresearch, education, forest land management, timber sales, rural hous-\nH.R. 10133 was introduced by the Chairman of the Committee on\ning, technical assistance by the Soil Conservation Service to farmers\nand soil conservation districts, and rural area development activities.\nAgriculture, Honorable Thomas S. Foley, at the request of the Secre-\ntary of Agriculture. It has been amended by the Committee, with the\nThe relationships between these programs and other Government\nconcurrence of the Secretary. H.R. 10133 would accommodate the tre-\nprograms are becoming more and more complex. This has resulted,\nmendous increase in the scope and complexity of the programs ad-\nfor example, in designation of the Secretary of Agriculture as a mem-\nber of the Council on International Economic Policy, the Cost of Liv-\nministered by the United States Department of Agriculture over the\npast quarter century by upgrading and augmenting the top-level policy\ning Council, the Water Resources Council and other groups.\nstaff of the Department. This legislation:\nNet budgetary expenditures for all activities of the Department in-\ncreased from about $4.7 billion in 1953 to an estimate of about $10.7\nUpgrades the position of Under Secretary to Deputy Secretary\nof Agriculture;\nbillion in 1977. During this same period the man-years (average an-\nEstablishes a new position of Assistant Secretary of Agricul-\nnual employment increased from 62,479 to 105,752.\nture at Executive Level IV;\nThe need for adequate staffing of the several Departments at the\nRaises the positions of Administrator, Animal and Plant Health\nDeputy Secretary and Assistant Secretary level has been recognized in\nInspection Service, and Administrator, Food and Nutrition Serv-\nmost of the other cabinet-level agencies of the Government. The Com-\nice, from GS-18 to Executive Level V;\nmittee believes the magnitude and scope of the activities which the\nIncreases the membership of the board of the Commodity Credit\nCongress has authorized and directed the Department of Agriculture\nCorporation from six to seven; and\nto carry out are as great as, or greater than, those of most other civilian\nRemoves from Executive Level V. the position of Director of\ncabinet-level agencies.\nAgricultural Economics (whose duties will be assumed by the\nFour Departments of Government now have Deputy or Under Sec-\nnew Assistant Secretary) and the position of Director of Science\nretaries at the Executive Level II, including the Departments of State,\nand Education (which has not been filled for several years).\nTreasury, Defense (2), and Transportation. The Department of Agri-\nculture, in terms of budget, numbers of employees, breadth of program,\nPURPOSE AND NEED FOR LEGISLATION\nand general responsibility is sufficiently important to merit a Deputy\nSecretary at the Executive Level II. In addition, changing the clas-\nThe purpose of this legislation is to bring the USDA top-level staff\nsification of this position from Under Secretary to Deputy Secretary\nin line with other departments and to recognize the tremendous growth\nwill give the incumbent additional influence as he deals with other De-\nin the scope and complexity of USDA programs since 1953, the last\npartments of Government and with agencies outside Government.\ntime such legislation was enacted. The scope, magnitude, and com-\nUSDA, with but four Assistant Secretaries at Executive Level IV\nplexity of the Department's operations have increased substantially\nranks low among the Executive Departments. By comparison, the De-\nsince 1953, while the only additional top-level policy position approved\nfense Department and its service departments have a total of 22; the\nsince that time has been the position of Assistant Secretary for Rural\nDepartment of Housing and Urban Development has 8; the Depart-\nDevelopment which was included in the Rural Development Act of\nment of State has 12; the Department of Justice has 9; the Depart-\n1972.\nment of the Treasury has 5; the Department of the Interior has 6; and\nAt present the Secretary of Agriculture has available to assist him\nthe Department of Labor has 6.\nin managing and directing the complex and far-reaching programs of\nThe position of Director of Agricultural Economics was established\nthe Department of Agriculture a top-level staff consisting of one Under\nin the Office of the Secretary of Agriculture on October 13, 1961. This\nSecretary, four program Assistant Secretaries, an Assistant Secretary\nposition has as high a level of responsibility as have Assistant Secre-\nfor Administration, and the Director of Agricultural Economics. This\ntaries of Agriculture and, therefore, should be accorded the same rank.\nsmall group of top policy officials is responsible for developing the\nThe positions of Administrator, Animal and Plant Health Inspection\npolicies and directing and managing the operations of a Department\nService (APHIS) and of Administrator, Food and Nutrition Service\n(FNS) should be upgraded to Executive Level V.\n4\n5\nAPHIS is one of the largest and most complex agencies in the De-\ntive Schedule ($37,800 per annum) the positions of Director of Agri-\npartment of Agriculture. It has overall responsibility for the meat and\ncultural Economics and Director of Science and Education, but would\npoultry inspection programs as well as the many programs in the areas\nadd to that list the positions of Administrator, Animal and Plant\nof plant and animal disease and pest control. The agency employs over\nHealth Inspection Service, and of Administrator, Food and Nutrition\n15,000 people and administers a budget of over $400 million. With the\nService, both of which presently call for the salary of a GS-18 ($37,800\nexception of the Forest Service, no agency in the Department employs\nper annum).\nmore people, and none has a greater diversity of responsibilities. How-\nSection 4. This section amends section 9 (a) of the Commodity Credit\never, seven agencies that are smaller than this one have Level V\nCorporation Charter Act, as amended, to increase the number of posi-\nadministrators. It should be noted that the Food and Drug Adminis-\ntions on the Board of Directors of the Commodity Credit Corporation\ntration, which has comparable responsibilities, has a Level V com-\nfrom six to seven.\nmissioner even though its employment (6,763) and budget ($252\nSection 5. This section provides that this legislation shall take effect\nmillion) are less than half of those of the Animal and Plant Health\nupon its date of enactment, except that (1) the removal of the position\nInspection Service.\nof Director of Agricultural Economics from level V of the Executive\nThe main functions of the Commodity Credit Corporation have\nSchedule shall not take effect until the new Assistant Secretary is\nbeen in those areas pertaining to the production of commodities, and\nappointed; and (2) the upgrading of the positions of Administrator,\nthe stabilization of prices thereof in line, with the objective of improv-\nAnimal and Plant Health Inspection Service, and Administrator, Food\ning net farm income. Of recent years, greater public and governmental\nand Nutrition Service, becomes effective January 21, 1977.\nattention has been focused on the stabilization of the rural population\nand toward this end, major emphasis has been directed to those pro-\nCOMMITTEE CONSIDERATION\ngrams which enhance rural development. In this regard the basic eco-\nnomic decisions of the CCC Board need to be further correlated with\nThe Subcommittee on Department Operations, Investigations and\nthe administration of Rural Development programs. We believe this\nOversight held a public hearing on March 29, 1976, at which James D.\nproposal to provide an additional member to the CCC Board of Direc-\nKeast, General Counsel of the Department of Agriculture, testified\ntors will strengthen this relationship.\nand presented a letter dated March 23, 1976, from the Secretary of\nThe growth in importance and in budgetary impact of the pro-\nAgriculture. In that letter (which is set forth below under \"Adminis-\ngrams of FNS since it came into existence in 1969 probably has no\ntration Position\"), the Secretary requested two changes in the bill.\npeacetime parallel among federal agencies. In fiscal year 1970, FNS\nFirst, the Secretary requested that, due to provision in H.R. 11743 for\nhad a staff of 1,747 to administer programs with outlays of approxi-\na new position of Assistant Secretary whose duties would include super-\nmately $1 billion. By fiscal year 1976, the FNS staff had grown to\nvision and coordination of agricultural research, this bill should be\n2,534 and its budget, due in large measure to the tremendous expan-\namended to provide for one new Assistant Secretary rather than two.\nsion in the numbers of people served by the Food Stamp Program,\nSecondly, the Secretary requested deletion of the provisions in this\nhad jumped to $7.9 billion. The heroic mission of this agency to bring\nbill which would have up-graded the position of Assistant Secretary\nto as yet uncounted millions of impoverished and malnourished Amer-\nfor Administration from level V of the Executive Schedule to level\nicans a nutritious and adequate diet, demands that the prestige and\nIV. With these changes, the Secretary strongly urged approval of the\ncompensation of its chief executive officer be such as to attract able\nbill by the Subcommittee.\nmen and women.\nUpon completion of the General Counsel's testimony, the Subcom-\nSECTION-BY-SECTION ANALYSIS\nmittee discussed the provision of H.R. 11743 providing for a new As-\nsistant Secretary and agreed to adopt the amendment suggested by\nSection 1. This section elevates the position of the officer who is\nthe Department to provide only one new Assistant Secretary in H.R.\nsecond in command at the United States Department of Agriculture\n10133. Congressman Richmond focused the Subcommittee's attention\nfrom Under Secretary, at pay level III on the Executive Schedule\non the provision of this bill which upgrades the Administrator of the\n($42,000 per annum), to Deputy Secretary, at pay level II on that\nAnimal and Plant Health Inspection Service from GS-18 to level V\nSchedule ($44,600). The section also provides that the incumbent on\nof the Executive Schedule. He urged that the bill be amended to simi-\nthe date of enactment of this legislation, who was appointed by the\nlarly upgrade from GS-18 to level V the Administrator of the Food\nPresident with the advice and consent of the Senate, may assume the\nand Nutrition Service, who administers the multi-billion dollar Food\nduties of the new position and shall not be required to be reappointed.\nStamp Program. Congressman Thone objected to Mr. Richmond's pro-\nSection 2. This section adds one new position of Assistant Secre-\nposal unless the Department of Agriculture was accorded an opportu-\ntary of Agriculture, to be appointed by the President with the advice\nnity to consider Mr. Richmond's suggestion and to present its views\nand consent of the Senate, who shall perform such duties as the Sec-\nthereon to the Subcommittee. The Subcommittee agreed with Con-\nretary of Agriculture shall prescribe. The Department of Agricul-\ngressman Thone and, accordingly, adjourned to permit USDA time\n'ture presently has four Assistant Secretaries.\nto consider Congressman Richmond's amendment.\nSection 3. This section adds the new Assistant Secretary of Agri-\nBy letter dated April 1, 1976 (which is also set forth below under\nculture to the category of persons who by law are compensated at\n\"Administration Position\"), the Department responded that it con-\nExecutive Level IV ($39,900 per annum). This section would also\nsidered upgrading the position of the Administrator of the Food and\ndelete from the list of positions compensated at level V of the Execu-\n6\n7\nNutrition Service to be justified and offered no objection to Mr. Rich-\nin Fiscal Year 1976. And, in this period employment has increased\nmond's amendment. Accordingly, on May 6, 1976, the Subcommittee\nfrom 1,747 to 2,534. Thus, we would agree that there is justification\nmet in a business session and, after a brief discussion, agreed to the\nfor upgrading the position of Administrator of the Food and Nutri-\namendments proposed by the Secretary in his letter of March 23, 1976,\ntion Service.\nand also to the amendment proposed by Mr. Richmond. Upon motion\nWhile we would prefer that any change with regard to this matter\nof the Subcommittee Chairman, Mr. de la Garza, the Subcommittee\nagreed to make the upgrading of the positions of Administrator of\nbe delayed until all questions concerning proposed food stamp legis-\nboth APHIS and FNS effective January 1, 1977. By a roll call vote\nlation are resolved, we would not object to including a provision in\nof 6 yeas to 1 nay the Subcommittee ordered H.R. 10133, as amended,\nH.R. 10133 to establish this position of Administrator of the Food\nand Nutrition Service at Executive Level V.\nreported favorably to the full Committee.\nThe Committee on Agriculture met in a business session on May 11,\nThe Office of Management and Budget advises that there is no ob-\n1976. After the Subcommittee amendments had been properly placed\njection to the presentation of this report from the standpoint of the\nbefore the Committee, Mr. Moore of Louisiana offered an amend-\nAdministration's program.\nment to strike from those amendments the provision upgrading the\nSincerely,\nOffice of Administrator of the Food and Nutrition Service. Mr. Moore\nJOHN A. KNEBEL,\nurged that, in his view, the incumbent in that office had performed\nUnder Secretary.\npoorly, particularly in connection with the Food Stamp Program, and\nthat it would be improper to reward such performance with a promo-\nDEPARTMENT OF AGRICULTURE,\ntion. Mr. Moore's amendment was supported by Congressman Kelly\nOFFICE OF THE SECRETARY,\nof Florida. However, it was opposed by Committee Chairman Foley\nWashington, D.C., March 23, 1976.\nand by Congressmen McHugh and Richmond of New York on the\nHon. E DE LA GARZA.\ngrounds that the question should be decided on the basis of the merit\nChairman, Subcommittee on Department Operations, Investigations\nof the proposal to upgrade the position rather than on the basis of the\nand Oversight, Committee on Agriculture, House of Representa-\nperformance of any particular incumbent. In an effort to avoid cloud-\ntives, Washington, D.C.\ning the issue with any question of personalities, the Subcommittee\nDEAR KIKA: In view of the hearing scheduled by your subcommittee\nChairman, Mr. de la Garza, requested and received unanimous con-\nfor March 29 on H.R. 10133, I would like to take this opportunity to\nsent to amend the effective date of the upgrading of the Adminis-\nset forth our latest thinking on this bill. As you know the Department\ntrators of both APHIS and FNS to January 21, 1977. Thereupon, the\nof Agriculture transmitted this proposal to the Congress on May 30,\nfull Committee proceeded to vote on the Moore amendment and it was\n1975. We recommend that your Committee approve H.R. 10133 with\nrejected by a roll call vote of 9 yeas-16 nays. The Committee then in\nthe changes noted below.\nthe presence of a quorum by voice vote ordered the bill H.R. 10133, as\nThe purpose of this legislation is to bring the top-level staff of the\namended by the Subcommittee, reported to the House with a recom-\nDepartment of Agriculture in line with other departments and to\nmendation that it do pass.\nrecognize the tremendous growth in USDA programs since 1953, the\nADMINISTRATION POSITION\nlast time such adjustments occurred. The scope, magnitude, and com-\nplexity of the Department's operations have increased substantially\nThe Administration position is set forth in the following letters\nsince 1953, while the only additional top-level policy position approved\nsubmitted prior to and after the public hearings:\nsince that time has been the additional Assistant Secretary position\nwhich was included in the Rural Development Act of 1972.\nDEPARTMENT OF AGRICULTURE,\nThus, the bill\nOFFICE OF THE SECRETARY,\n-Upgrades the position of Under Secretary to Deputy Secretary\nWashington, D.C., April 1, 1976.\nof Agriculture;\nHon. E DE LA GARZA,\n-Establishes two new positions as Assistant Secretary of Agricul-\nChairman, Subcommittee on Department Operations, Investigation\nture at Executive Level IV;\nand Oversight, Committee on Agriculture, House of Representa-\n-Raises the position of Administrator, Animal and Plant Health\ntives, Washington, D.C.\nInspection Service, from GS-18 to Executive Level V; and\nDEAR MR. CHAIRMAN At the hearing before your Subcommittee on\n-Increases the membership of the Board of the Commodity Credit\nMarch 29 concerning H.R. 10133 you requested that we provide the\nCorporation from six to seven.\nDepartment's views on the proposal of Mr. Richmond to raise the posi-\nThe reasons for these changes are adequately set forth in our trans-\ntion of Administrator of the Food and Nutrition Service from GS-18\nmittal letter SO I will not repeat them. We would, however, like to\nto Executive Level V.\nrecommend the following changes.\nWe recognize that there has been an increase in the scope and mag-\nWe requested two additional Assistant Secretaries of Agriculture\nnitude of the various food programs administered by the Food and\nat Executive Level IV. However, if the intent of the Committee on\nNutrition Service of this Department. Since the Food and Nutrition\nAgriculture is to include one additional Assistant Secretary position\nService came into existence on August 8, 1969, its total program out-\nin H.R. 11743, the bill dealing with agricultural research, only one\nlays have risen from $1.0 billion in Fiscal Year 1970 to $7.9 billion\n8\n9\nis needed in H.R. 10133. Furthermore, in any event, we recommend\nthat the provisions in H.R. 10133 relating to the Assistant Secretary\nconducted by the Committee within the definition of clause 2(b) (1)\nfor Administration be deleted from the bill. As you may recall, the bill\nof rule X of the Rules of the House of Representatives.\nas submitted contemplates upgrading the positions of Director of\nCHANGES IN EXISTING LAW\nAgricultural Economics and Assistant Secretary for Administration\nto Executive Level IV Assistant Secretary positions. The Department\nIn compliance with clause 3 of rule XIII of the Rules of the House\nno longer feels that any change is necessary with respect to the posi-\nof Representatives, changes in existing law made by the bill are\ntion of the Assistant Secretary for Administration.\nshown as follows (existing law proposed to be omitted is enclosed in\nWith these changes I strongly urge your approval of H.R. 10133.\nblack brackets, new matter is printed in italic, and existing law in\nSincerely,\nwhich no change is proposed is shown in roman) :\nEARL L. BUTZ,\nSecretary of Agriculture.\nTITLE 5, UNITED STATES CODE\nCURRENT AND FIVE SUBSEQUENT FISCAL YEAR COST ESTIMATE\nPursuant to clause 7 of rule XIII of the Rules of the House of Rep-\nSEC. 5313. Positions at level II.\nresentatives, the Committee estimates the cost to be incurred by the\nFederal Government during the current and the five subsequent fiscal\nyears as a result of the enactment of this legislation would be no more\n(23) Deputy Secretary of Agriculture.\nSEC. 5314. Positions at level III.\nthan $5,000 in each of the five subsequent fiscal years; and one-quarter\nof that amount for the transition quarter.\nOn the basis of an assumed effective date of June 1, 1976, the Depart-\nment of Agriculture estimated the total cost, including the period to\n[(3) Under Secretary of Agriculture.]\nOctober 1, 1976, and five full fiscal years thereafter, at $26,667.\nSEC. 5315. Positions at level V.\nINFLATIONARY IMPACT STATEMENT\nPursuant to clause 2(1) (4) of rule XI of the Rules of the House of\n(11) Assistant Secretaries of Agriculture [(4)] (5) 1\nRepresentatives, the Committee estimates that enactment of H.R.\n10133, as amended, will have no inflationary impact on the national\neconomy.\nSEC. 5316. Positions at level V.\nBUDGET ACT COMPLIANCE (SECTION 308 AND SECTION 403)\n(55) Director of Agricultural Economics, Department of Agri-\nThe provisions of clause 2(1) (3) (B) of rule XI of the Rules of the\nculture.\"\nHouse of Representatives and section 308 (a) of the Congressional\nBudget Act of 1974 (relating to estimates of new budget authority or\nnew or increased tax expenditures) are not considered applicable. The\n[(63) Director of Science and Education, Department of Agricul-\nture.\nestimate and comparison required to be prepared by the Director of\nthe Congressional Budget Office under clause 2(1) (3) (C) of rule XI\n(63) Administrator, Animal and Plant Health Inspection Service.\nof the Rules of the House of Representatives and section 403 of the\n(64) Administrator, Food and Nutrition Service.\nCongressional Budget Act of 1974 had not been received by the Com-\nmittee prior to the filing of this report. The Committee was advised\nthat it is anticipated that such an estimate and comparison will be\nACT OF MARCH 26, 1934\n[CHAPTER 89.]\navailable prior to consideration of the bill on the Floor of the House.\nAN ACT Making appropriations for the Department of Agriculture and for the\nOVERSIGHT STATEMENT\nFarm Credit Administration for the fiscal year ending June 30, 1935, and for\nother purposes\nNo summary of oversight findings and recommendations made by\nBe it enacted by the Senate and House of Representatives of the\nthe Committee on Government Operations under clause 2(b) (2) of\nUnited States of America in Congress assembled, That the following\nrule X of the Rules of the House of Representatives was available to\nsums are appropriated, out of any money in the Treasury not other-\nthe Committee with reference to the subject matter specifically ad-\nwise appropriated, for the Department of Agriculture and for the\ndressed by H.R. 10133, as amended.\nNo specific oversight activities, other than the hearing accompany-\n1 The text of H.R. 10133, as amended, provides that this number be the \"next higher\ning the Committee's consideration of H.R. 10133, as amended, were\nnumber\" in order to accommodate the possibility that H.R. 11743. which also adds an\nadditional Assistant Secretary may become law prior to the enactment of this bill.\n10\n11\nFarm Credit Administration for the fiscal year ending June 30, 1935,\nbehalf of the Department or any division, commission, or bureau\nnamely:\nthereof, issues, or causes to be issued, any prediction, oral or written,\nor forecast with respect to future prices of cotton or the trend of\nTITLE I-DEPARTMENT OF AGRICULTURE\nsame.\nOFFICE OF THE SECRETARY\nACT OF JUNE 5, 1939\nSALARIES\nFor the Secretary of Agriculture, [Under Secretary of Agriculture]\nDeputy Secretary of Agriculture, $10,000, and there is hereby estab-\nResolved by the Senate and House of Representatives of the United\nlished in the Department of Agriculture the position of [Under Secre-\nStates of America in Congress assembled, That the Under Secretary\ntary of Agriculture] Deputy Secretary of Agriculture, to be ap-\nof Agriculture] Deputy Secretary of Agriculture is authorized to\npointed by the President, by and with the advice and consent of the\nexercise the functions and perform the duties of the first assistant of\nSenate, and whose compensation shall be at the rate of $10,000 per\nthe Secretary of Agriculture within the meaning of section 177 of the\nannum, Assistant Secretary, and for other personal services in the\nRevised Statutes of the United States (U.S.C., title 5, sec. 4) and shall\nDistrict of Columbia, and elsewhere, $548,560: Provided, That in\nperform such other duties as may be required by law or prescribed by\nexpending appropriations or portions of appropriations contained in\nthe Secretary of Agriculture.\nthis Act for the payment for personal services in the District of\nApproved, June 5, 1939.\nColumbia in accordance with the Classification Act of 1923, as\namended, with the exception of the Assistant Secretary, the average\nCOMMODITY CREDIT CORPORATION CHARTER ACT\nof the salaries of the total number of persons under any grade in any\nbureau, office, or other appropriation until shall not at any time exceed\nSEC. 9. DIRECTORS, ADVISORY BOARD: (a) The management of the\nthe average of the compensation rates specified for the grade by such\nCorporation shall be vested in a board of directors (hereinafter re-\nAct as amended Provided further, That this restriction shall not\nferred to as the \"Board\"), subject to the general supervision and di-\napply (1) to grades 1, 2, 3, and 4 of the clerical-mechanical service, or\nrection of the Secretary. The Secretary shall be an ex officio director\n(2) to require the reduction in salary of any person whose compensa-\nand shall serve as Chairman of the Board. [The Board shall consist of\ntion was fixed as of July 1, 1924, in accordance with the rules of section\nsix members (in addition to the Secretary), who shall be appointed by\n6 of such Act, (3) to require the reduction in salary of any person\nthe President by and with the advice and consent of the Senate. The\nwho is transferred from one position to another position in the same\nBoard shall consist of seven members (in addition to the Secretary),\nor different grade, in the same or different bureau, office, or other\nwho shall be appointed by the President by and with the advice and\nappropriation unit, (4) to prevent the payment of a salary under\nconsent of the Senate. In addition to their duties as members of the\nany grade at a rate higher than the maximum rate of the grade when\nBoard such appointed members shall perform such other duties as\nsuch higher rate is permitted by the Classification Act of 1923 as\nmay be prescribed by the Secretary. Each appointed member of the\namended, and is specifically authorized by other law, or (5) to reduce\nBoard shall receive compensation at such rate not in excess of the\nthe compensation of any person in a grade in which only one position\nmaximum then payable under the Classification Act of 1923, as\nis allocated: Provided further, That the Secretary of Agriculture\namended, as may be fixed by the Secretary, except that any such mem-\nis authorized to contract for stenographic reporting services, and the\nber who holds another office or position under the Federal Government\nappropriations made in this Act shall be available for such purposes:\nthe compensation for which exceeds such rate may elect to receive\nProvided further, That the Secretary of Agriculture is authorized\ncompensation at the rate provided for such other office or position in\nto expend from appropriations available for the purchase of lands\nlieu of the compensation provided by this section. A majority of the\nnot to exceed $1 for each option to purchase any particular tract or\ndirectors shall constitute a quorum of the Board and action shall be\ntracts of land Provided further, That not to exceed $22,990 of the\ntaken only by a majority votes of those present.\nappropriations available for salaries and expenses of officers and\nemployees of the Department of Agriculture permanently stationed\nin foreign countries may be used for payment of allowances for liv-\ning quarters, including heat, fuel, and light, as authorized by the\nAct approved June 26, 1930 (U.S.C. Supp. VI, title 5, sec. 118a),\nbut the amount SO used for any one person shall not exceed the\namount permitted by law to be SO used, during the fiscal year 1935,\nfor any one person in the foreign service of the Department of Com-\nmerce: Provided further, That no part of the funds appropriated by\nThis Act shall be used for the payment of any officer or employee of\nthe Department of Agriculture who, as such officer or employee, or on\nDISSENTING VIEWS OF HON. FLOYD J. FITHIAN, JOHN\nW. JENRETTE, JR., KEITH G. SEBELIUS, STEVEN D.\nSYMMS, RICHARD KELLY, CHARLES E. GRASSLEY,\nTOM HAGEDORN, AND W. HENSON MOORE\nThe undersigned respectfully dissent from the passage of H.R.\n10133 for one specific reason. In Section 3 of the bill, there exists in\nParagraph (64) a provision providing for the promotion of the\nAdministrator of the Food and Nutrition Service (FNS) of USDA\nfrom his current level of GS-18 to Executive Level V, a more pres-\ntigious position.\nIt is strongly believed for the following reasons that such a pro-\nvision is unjustified and premature at the present time.\nFirst, according to the latest USDA Quality Control Report for\nthe Food Stamp Program dated February 1976, there was found to\nbe a 46.6% error rate in almost 37,000 food stamp cases reviewed for\nthe time period of January through June, 1975. This is certainly an\nintolerable error factor.\nSecond, Assistant Secretary Richard L. Feltner of USDA testified\nbefore the Senate Agriculture Committee on January 21, 1976, that a\nreview of FNS service records from July 1, 1974, to September 1975,\nshowed that there were delayed or late deposits of funds of approxi-\nmately $11,000,000.00 and unconfirmed or missing deposits of funds\nof $6,000,000.00, totaling in excess of $17,000,000.00 in funds due\nUSDA for the food stamp program which were not in hand for un-\nexplained or unsatisfactory reasons. Again, this is certainly an un-\nacceptable fund accountability performance by FNS.\nThird, Assistant Secretary Feltner testified before the House Agri-\nculture Committee on February 11, 1976, that FNS did not have any\nreliable figures as to the extent of the recipient fraud rate and that\nFNS had no overall coordinated data collection system on illegal activ-\nities in the food stamp program. FNS is charged with the adminis-\ntration of the food stamp program which in FY 1976 will cost the\ntaxpayers $5.75 billion and is the largest item in the USDA budget\n(39% of it).\nFourth, the problems of the administration of the food stamp pro-\ngram by FNS has caused the General Accounting Office to currently\nhave underway four separate investigations of FNS, including the\nrecovery of losses procedures, implementation and enforcement of the\nwork registration requirement, vendor accountability, and supervision\nof state and local food stamp activities. Several of these reports should\nbe available in the near future, although none are available at the\npresent time. All four of these investigations are serious and point to-\nwards significant failures of FNS.\nFifth, Mr. Gene Senat, formerly Louisiana manager for FNS for\neleven years, testified before the House Agriculture Committee on\nMarch 23, 1976, concerning numerous failures by FNS to investigate\nviolations of the food stamp law and regulations, delaying investiga-\n(13)\n14\n15\ntions undertaken for as long as three years and geenrally a lack of\ntrators do better. After a sufficient period of time, and if the food\nenforcement resulting in fraud and errors. Mr. Senat testified that he\nstamp program is being administered far better than presently, we\nbelieved the federal government was losing about $46,000,000.00 per\ncould then consider the elevation of the position of Administrator\nyear in Louisiana alone based on a USDA audit dated June 25, 1975,\nfrom General Schedule 18 to the more prestigious Executive Schedule\nshowing the error rate within that state.\nV.\nSixth, the existing evidence of poor job performance by FNS and\nAn effort will be made on the floor to strike this provision from\nspecific investigations of GAO into aspects of it have caused a num-\nthe bill. You are urged to support it.\nber of Members of the Committee to request on May 13, 1976, a full\nFLOYD J. FITHIAN.\nKEITH G. SEBELIUS.\nand complete investigation by GAO of the overall administration of\nJOHN W. JENRETTE, Jr.\nSTEVEN D. SYMMS.\nthe food stamp program by FNS.\nRICHARD KELLY.\nSeventh, there were no hearings held before the Subcommittee on\nCHARLES E. GRASSLEY.\nDepartment Operations, Investigations and Oversight of the Agricul-\nToM HAGEDORN.\nture Committee concerning the advisability of promoting the Admin-\nW. HENSON MOORE.\nistrator of FNS. The request from USDA for this legislation did not\ninclude this promotion. At the hearings before the Subcommittee held\no\non March 29, 1976, Mr. Jim Keast, General Counsel of USDA, testi-\nfied in response to a question from a Member concerning the possible\npromotion of the Administrator of FNS that USDA did not feel at\nthe present time that there should be an upgrading. Subsequently, in\na letter dated April 1, 1976, Mr. John A. Knebel, Under Secretary of\nUSDA, replied to a request from the Chairman of the Subcommittee\nthat the Department would not object to the promotion of the Admin-\nistrator of FNS, but would prefer that it be delayed until after all\nquestions concerning proposed food stamp legislation be resolved.\nThe point is that USDA did not ask for this promotion. believes it\nto be premature at the present time, and there was no evidence taken\nbefore the Subcommittee or the full Committee justifying the change\nor showing that either the Administrator or FNS have performed in\nsuch a fashion as to merit this promotion. The provision for this pro-\nmotion came in Subcommittee markup after the hearings had been\nheld and with no evidence before the Subcommittee to warrant it.\nEighth, it is premature and illogical to call for a promotion or up-\ngrading before the House and Senate complete work on food stamp\nlegislation which is presently actively being considered by each and\nbefore the existing four GAO investigations underway are complete\nwith the possibility of a fifth in the offing. This legislation and these\ninvestigations may well recommend the abolition or restructuring of\nFNS or that drastic changes be made in the operations of FNS and\nmay well provide additional evidence establishing the failure of FNS\nto satisfactorily perform its function. Any promotion or upgrading\nof the Administrator under those circumstances is indeed premature.\nConsidering the foregoing points, it would appear to be Indicrous\nto reward an individual who has been Administrator since Septem-\nber, 1969 (six and one-half years), for having done a poor job or\nreward the Department he heads. This would be evidence to the pub-\nlic that poor administration is the way to get ahead in the bureauc-\nacy and would be a slap in th face of those administrators who are\ntrying to do a good job. There is no evidence establishing that a pro-\nmotion or a reward should be in the offing and ample evidence present\nand more possibly forthcoming to establish the contrary. Many of the\nproblems with the food stamp program are directly due to its poor\nadministration. Those problems will not be solved until the adminis-\n94TH CONGRESS\nHOUSE OF REPRESENTATIVES\nREPT. 94-\n2d Session\n1156 Part 2\nUSDA EXECUTIVE ADJUSTMENTS\nJUNE 3, 1976.-Committed to the Committee of the Whole House on the State\nof the Union and ordered to be printed\nMr. Foley, from the Committee on Agriculture,\nsubmits the following\nSUPPLEMENTAL REPORT\n(Including the Congressional Budget Office cost estimate and comparison)\n[To accompany H.R. 10133]\nThe Committee on Agriculture, to whom was referred the bill\n(H.R. 10133), to upgrade the position of Under Secretary of Agricul-\nture to Deputy Secretary of Agriculture; to provide for two additional\nAssistant Secretaries of Agriculture; to increase the compensation of\ncertain officials of the Department of Agriculture; to provide for an\nadditional member of the Board of Directors, Commodity Credit\nCorporation; and for other purposes, hereby submits a supplemental\nreport to its report, No. 94-1156, filed May 15, 1976. This supple-\nmental report contains the estimate and comparison prepared by the\nDirector of the Congressional Budget Office under clause 2(1) (3) (C)\nof rule XI of the Rules of the House of Representatives and section\n403 of the Congressional Budget Act of 1974 which were submitted to\nthe Committee subsequent to the filing of its report.\nThe estimate and comparison are set forth below:\nCONGRESS OF THE UNITED STATES,\nCONGRESSIONAL BUDGET OFFICE,\nWashington, D.C., May 26, 1976.\nHon. THOMAS S. FOLEY,\nChairman, Committee on Agriculture,\nU.S. House of Representatives, Washington, D.C.\nDEAR MR. CHAIRMAN: Pursuant to Section 403 of the Congressional\nBudget Act of 1974, the Congressional Budget Office has prepared\nthe attached cost estimate for H.R. 10133, a bill concerning adjust-\nments in USDA executive staff.\n57-006\n2\n3\nShould the Committee SO desire, we would be pleased to provide\nassumed further that the pay increase would become effective during\nfurther details on the attached cost estimate.\nthe transition quarter.\nSincerely,\nA similar procedure was employed in calcualting the cost of the new\nALICE M. RIVLIN, Director.\nAssistant Secretary. The current salary base for Level IV positions\nAttachment.\nwas inflated to show expected increases in salaries during the five-year\nperiod and then augmented by the benefit factor. The estimates in the\nCONGRESSIONAL BUDGET OFFICE-COST ESTIMATE\ntable represent the compensation cost only. Nothing was added for\nsupporting staff and overhead because it was assumed that the new\n1. Bill number: H.R. 10133.\nposition would be filled by the current Director for Agricultural\n2. Bill title: Adjustments in USDA Executive Staff.\nEconomics. His present staff and office expenses would not be affected\n3. Purpose of bill: H.R. 10133 would upgrade certain executive\nby the promotion.\npositions within the Department of Agriculture. The position of\nThese increases in costs would be more than offset, at least after the\nUnder Secretary would be upgraded to Deputy Secretary, which would\ntransition quarter, by the cost-savings arising from the elimination of\nraise the level of compensation for the number two position from\nthe two Level V jobs. These savings were estimated by simply calcu-\nExecutive Level III ($42,000 per year) to Level II ($44,600 per year).\nlating the future costs of two Level V positions.\nThe legislation would also create a position for an additional Assistant\nThe upgrading of the two GS-18 positions to the Level V rank\nSecretary who would be paid at Level IV ($39,900 per year). Two\nwould have no impact on costs because the salary levels are the same\nLevel V positions, the Director of Agricultural Economics and the\n($37,800 per year). The addition of one seat to the Commodity Credit\nDirector of Science and Education, would be eliminated. Persons\nCorporation Board would also have no cost effects. This provision\nholding these posts receive $37,800 per year. Two other positions\nsimply adds one more assignment to an existing position.\nwould be upgraded. The Administrator of the Animal and Plant\n6. Estimate comparison: None available.\nInspection Service and the Director of the Food and Nutrition\n7. Previous CBO estimate: None.\nService would be raised from GS-18 to Level V. This adjustment does\n8. Estimate prepared by: Robert M. Gordon.\nnot involve a salary increase because positions at both levels receive\n9. Estimate approved by:\n$37,800. The bill would also increase the size of the Commodity\nC. G. NUCKOLS,\nCredit Corporation Board by one.\nDeputy Assistant Director for Budget Estimates.\nAccording to the Secretary of Agriculture, these changes are needed\nto make the executive positions of the Department comparable to\no\nthose of other agencies.\n4. Cost estimate: Upgrading the position of Under Secretary and\nestablishing a new Assistant Secretary would result in additional\ncosts. These increases, however, would be more than offset after the\ntransition quarter by the savings associated with the elimination of\nthe two Level V positions. Estimates of the net impact on costs are\nshown in the table below.\nFiscal year-\nTransition\nquarter\n1977\n1978\n1979\n1980\n1981\nUpgrade Under Secretary\n$709\n$3,018\n$3,284\n$3,557\n$3,802\n$4,063\nCreate new Assistant Secretary\n10,873\n46,318\n50,394\n54,576\n58,342\n62,368\nEliminate 2 level IV positions\n-10,301\n-76,790\n-83,549\n-90,483\n-96,727\n-103,401\nUpgrade 2 GS-18 positions to level V\nTotal\n+1,281\n-27,454\n-29,871\n-32,350\n-34,583\n-36,970\n5. Basis for estimate: The estimates reflect changes in expenditures\nfor salaries and benefits. The impact of upgrading the position of\nUnder Secretary was estimated by projecting the future salary and\nbenefits costs of a Level II and Level III position and by calculating\nthe net increases in expenditures. Estimates of future costs were based\non the current salary levels and CBO projections of future increases in\nfederal salaries. A sum equivalent to 9 percent of the salary base was\nadded to the annual earnings to reflect the associated benefits. It was\nH.R. 1156\nH.R. 1156\n94TH CONGRESS\nHOUSE OF REPRESENTATIVES\nREPORT\n2d Session\nNo. 94-1206\nPROVIDING FOR THE CONSIDERATION OF H.R. 10133\nJUNE 2, 1976.-Referred to the House Calendar and ordered to be printed\nMr. SISK, from the Committee on Rules,\nsubmitted the following\nREPORT\n[To accompany H. Res. 1243]\nThe Committee on Rules, having had under consideration House\nResolution 1243, by a nonrecord vote, report the same to the House\nwith the recommendation that the resolution do pass.\n57-008\n94TH CONGRESS\nSENATE\nREPORT\n2d Session\nNo. 94-1377\nUSDA EXECUTIVE ADJUSTMENTS\nSEPTEMBER 30, 1976.-Ordered to be printed\nMr. ALLEN, from the Committee on Agriculture and Forestry,\nsubmitted the following\nREPORT\n[To accompany H.R. 10133]\nThe Committee on Agriculture and Forestry, to which was referred\nthe bill (H.R. 10133) to upgrade the position of Under Secretary of\nAgriculture to Deputy Secretary of Agriculture; to provide for an\nadditional Assistant Secretary of Agriculture; to increase the compen-\nsation of certain officials of the Department of Agriculture; to provide\nfor an additional member of the Board of Directors, Commodity\nCredit Corporation; and for other purposes, having considered the\nsame, reports favorably thereon with amendments and recommends\nthat the bill as amended do pass.\nSHORT EXPLANATION\nH.R. 10133 would-\n(1) upgrade the position of Under Secretary to Deputy Secre-\ntary of Agriculture;\n(2) establish a new position of Assistant Secretary of Agri-\nculture at Executive Level IV;\n(3) remove from Executive Level V the position of Director of\nAgricultural Economics (whose duties will be assumed by the\nnew Assistant Secretary);\n(4) change the positions of Administrator, Animal and Plant\nHealth Inspection Service, and Administrator, Food and Nutri-\ntion Service, from GS-18 to Executive Level V;\n(5) increase the membership of the Board of Directors of the\nCommodity Credit Corporation from six to seven; and\n(6) exempt custom poultry harvesting, breeding, debeaking,\nsexing, and health service operations from the provisions of the\nFarm Labor Contractor Registration Act of 1963 where the\nemployees are not migrant workers.\n57-010-76-1\n2\n3\nCOMMITTEE AMENDMENTS\nMany new agricultural programs affecting both farmers and con-\nOn page 2, beginning with line 23, strike out all down through line\nsumers have been authorized by Congress since 1953. Other programs\n6 on page 3, and insert in lieu thereof the following:\nhave been greatly expanded. The duties of the-Department relate to\na wide variety of programs-regulatory and nonregulatory. They\nSEC. 3. (a) Section 5315 of title 5 of the United States Code\ninclude major programs with respect to poultry and meat inspection,\nis amended by striking out \"(4)\" at the end of paragraph\nagricultural credit, conservation, price support, surplus removal, crop\n(11) and by inserting in lieu thereof \"(5)\".\ninsurance, research, family feeding, child nutrition, and numerous\n(b) Section 5316 of title 5 of the United States Code is\nother regulatory measures designed to effectuate production adjust-\namended—\nment, parity prices, orderly marketing, or other statutory goals.\n(1) by striking out paragraph (55) and\nNet budgetary expenditures for all activities of the Department\n(2) by adding at the end thereof new paragraphs\nincreased from about $4.7 billion in 1953 to an estimated $10.7 billion\n(137) and (138) as follows:\nin 1977. During this same period, the man-years (average annual\n\"(137) Administrator, Animal and Plant Health Inspec-\nemployment) increased from 62,479 to 105,752.\ntion Service, Department of Agriculture.\nAt present, the Secretary of Agriculture has available to assist him\n\"(138) Administrator, Food and Nutrition Service, De-\nin managing and directing the programs of the Department a top-level\npartment of Agriculture.\"\nstaff consisting of one Under Secretary, four program Assistant\nThe Committee amendment retains at the Executive Level V the\nSecretaries, one Assistant Secretary for Administration, and the\nDirector of Science and Education, Department of Agriculture, and\nDirector of Agricultural Economics. This group of officials is re-\nchanges the Administrator, Food and Nutrition Service, Department\nsponsible for developing the policies and directing and managing the\nof Agriculture, to an Executive Level V position from a position which\noperations of a Department that carries out programs at over 10,000\npresently calls for the salary of a GS-18. In addition, the Committee\nlocations, in every one of the 50 States, in over 3,000 counties, in\namendment makes a technical change in the language which provides\nevery major metropolitan area, and in many foreign countries.\nthat the new Assistant Secretary shall be compensated at Executive\nLevel IV.\nII\nOn page 3, after line 18, add a new section 6 as follows:\nThe need for adequate staffing of the several departments at the\nSEC. 6. Section 3(b) of the Farm Labor Contractor Regis-\nDeputy Secretary and Assistant Secretary level has been recognized\ntration Act of 1963, as amended (78 Stat. 920, as amended;\nin most of the other cabinet level agencies. Four Departments of\n7 U.S.C. 2042), is amended—\nGovernment now have Deputy or Under Secretaries at Executive\n(a) by striking out the period at the end of paragraph\nLevel II, including the Departments of State, Treasury, Defense\n(8) and inserting in lieu thereof a semicolon and the\n(which has two), and Transportation. The magnitude and scope of the\nword 'or'; and\nactivities which Congress has authorized and directed the Department\n(b) by adding at the end thereof a new paragraph\nto carry out are as great as, or greater than, the activities of most\n(9) as follows:\nother cabinet level agencies.\n\"(9) any custom poultry harvesting, breeding, debeaking,\nThe Department of Agriculture has but four Assistant Secretaries\nsexing, or health service operation, provided the employees\nat Executive Level IV. These four positions rank low compared to\nof the operation are not regularly required to be away from\nother executive departments. The Defense Department and its\ntheir domicile other than during their normal working hours.\"\nservice departments have a total of 22; the Department of Housing\nThe Committee amendment amends the Farm Labor Contractor\nand Urban Development has eight; the Department of State has 12;\nAct of 1963 to exempt custom poultry harvesting, breeding, debeaking,\nthe Department of Justice has nine; the Department of Treasury has\nsexing, and health service operations from the provisions of that\nfive; the Department of the Interior has six; and the Department of\nAct where the employees are clearly not migrant workers.\nLabor has six. In terms of its budget, number of employees, pro-\ngrams, and general responsibilities, the Department merits a Deputy\nBACKGROUND AND NEED FOR LEGISLATION\nSecretary at Executive Level II.\nIn addition, the Department should have an additional Assistant\nI\nSecretary of Agriculture at Executive Level IV. The position of\nDirector of Agricultural Economics was established in the Office of\nThe major purpose of this legislation is to upgrade the top-level\nthe Secretary of Agriculture on October 13, 1961. This position has\nstaff of the United States Department of Agriculture. The scope,\nas high a level of responsibility as have Assistant Secretaries of\nmagnitude, and complexity of the Department's operations have\nAgriculture and, therefore, should be accorded the same rank.\nincreased substantially since 1953. However, the only additional top-\nlevel policy position established since that time has been the position\nof Assistant Secretary for Rural Development.\n4\n5\nIII\ncontractors not only keep such records, but also the producers and\nprocessors would be required to obtain and retain copies of the\nThe positions of Administrator of the Animal and Plant Health\ncontractors' records in their own files. The poultry service operations,\nInspection Service and the Food and Nutrition Service should be\nnow being subjected to the Farm Labor Contractor Registration Act\nupgraded to Executive Level V.\nrequirements, are not within the general ambit of \"migrant\" labor,\nThe Animal and Plant Health Inspection Service is one of the\nbut are subject to the Act because of the technical scope of the statu-\nlargest agencies in the Department of Agriculture. It has overall\ntory definitions after the 1974 amendments.\nresponsibility for the meat and poultry inspection programs as well as\nPoultry catching is performed on a contract basis, typically by the\nthe many programs in the areas of plant and animal disease and pest\ncompany which hauls the poultry from growing house to processing\ncontrol. The agency employs over 15,000 people and administers\nplant. The workers who catch poultry are residents in the area where\na budget of over $400 million. With the exception of the Forest Service,\nthey work and have stable employment ties with their contractor.\nno agency in the Department employs more people, and none has a\nThe workers are not migrant, and the work is not seasonal.\ngreater diversity of responsibilities. However, seven agencies that are\nThere are many different patterns of contract poultry catching-a\nsmaller than this one have Level V administrators. The Food and\nsingle contractor may serve only one large poultry producer/proc-\nDrug Administration, which has comparable responsibilities, has a\nessor or a catching contractor may serve several smaller producer/\nLevel V commissioner even though its employment (6,763) and\nprocessors.\nbudget ($252 million) are less than half of those of the Animal and\nPoultry breeding is performed on a contract basis similar to poultry\nPlant Health Inspection Service.\ncatching. The contractor brings his crew to the poultry breeding\nThe growth in importance and in budgetary impact of the programs\nfarm and performs artificial insemination services at that location.\nof the Food and Nutrition Service probably has no peacetime parallel\nThe same situation exists with respect to poultry sexing, debeaking,\namong Federal agencies. In fiscal year 1970, the agency had a staff of\nand health service operations.\n1,747 to administer programs with outlays of approximately $1\nThe Committee believes that such custom poultry service opera-\nbillion. By fiscal year 1976, the staff had grown to 2,534 and its\ntions-where the workers are clearly not migrant workers-should\nbudget had increased to $7.9 billion, due in large measure to the\nnot be subject to the provisions of the Farm Labor Contractor Regis-\nscope and magnitude of the various food programs administered\ntration Act.\nby the Food and Nutrition Service.\nThe Committee recognizes that the Senate Committee on Labor\nand Public Welfare has legislative jurisdiction of the Farm Labor\nIV\nContractor Registration Act, and the Committee amendment to that\nThe main functions of the Commodity Credit Corporation have\nAct is in no way meant to infringe on the jurisdiction of that Com-\nbeen in areas pertaining to the production of commodities and the\nmittee. The Committee believes, however, the amendment is meritori-\nstabilization of prices thereof in line with the objective of improving\nous and should be enacted in order to provide necessary relief to the\nnet farm income. In recent years, greater public and Governmental\npoultry industry.\nCOMMITTEE CONSIDERATION\nattention has been focused on the stabilization of the rural popula-\ntion and programs which enhance rural development. The basic\nThe provisions of H.R. 10133 which upgrade the top-level staff\neconomic decisions of the CCC Board of Directors need to be further\nof the Department of Agriculture are similar to the provisions con-\ncorrelated with the administration of rural development programs.\ntained in S. 3031, a bill which was reported by the Committee and\nAn additional member on the CCC Board of Directors will strengthen\npassed by the Senate during the 93rd Congress.\nthis relationship.\nWhen the Committee met on September 1, 1976, to consider H.R.\nV\n10133, it agreed to strike from the bill a provision which would\nThe Farm Labor Contractor Registration Act was amended in 1974\neliminate the position of the Director of Science and Education from\nto cover all types of agricultural contract labor, regardless of the\nthe list of Executive Level V positions. The members were informed\nnumber of workers involved or whether the workers were recruited\nby a Departmental representative that the functions of the Director\nfor interstate or intrastate agricultural employment. As a result of\nof Science and Education are presently being performed by the\nthe 1974 amendments, contractors performing certain poultry service\nAssistant Secretary for Conservation, Research, and Education.\noperations, who are not in interstate commerce and who typically\nHowever, the Committee believes that these functions are so important\noperate with small crews, are not subject to the requirements of the\nthat the position should remain available for a possible future\nappointment.\nAct. These poultry service operations are poultry harvesting; breed-\ning services, such as artificial insemination; poultry sexing; debeaking;\nThe Committee also agreed to change the position of the Admin-\nand health services such as vaccination.\nistrator, Food and Nutrition Service from a GS-18 to Executive\nThe 1974 amendments require these contractors to compile and\nLevel V. This change was included in the version of the bill reported\nretain extensive personnel records. Poultry producers and processors\nby the House Committee on Agriculture. The functions of the Ad-\ncontracting for these services would be required to ascertain that their\nministrator, Food and Nutrition Service are significant. The programs\n6\n7\nhe is responsible for administering represent a substantial portion of\nSection 6. Farm Labor Contractor Registration Act\nthe Department's appropriations.\nSection 6 amends subsection 3(b) of the Farm Labor Contractor\nThe Committee also agreed to amend the Farm Labor Contractor\nRegistration Act of 1963, as amended, to exempt from the provisions\nRegistration Act to exempt from the provisions of that Act custom\npoultry harvesting, breeding, debeaking, sexing, and health service\nof that Act, custom poultry harvesting, breeding, debeaking, sexing,\noperations, provided the employees are not regularly required to be\nand health service operations, provided the employees of the operations\naway from their domicile other than during their normal working\nare not regularly required to be away from their domicile other than\nhours. The Committee, while recognizing that the Senate Labor Com-\nduring their normal working hours.\nmittee has legislative jurisdiction of the Farm Labor Contractor\nDEPARTMENTAL VIEWS\nRegistration Act, believes that such exemptions would be in accord\nwith the basic purpose of that Act.\nI\nSECTION-BY-SECTION ANALYSIS\nIn a letter to the President of the Senate dated May 30, 1975, the\nSecretary of Agriculture requested enactment of legislation upgrading\nSection 1. Under Secretary to Deputy Secretary\nthe top-level staff of the Department of Agriculture. The Secretary's\nSection 1 elevates the position of the officer who is second in com-\nletter reads as follows:\nmand at the United States Department of Agriculture from Under\nDEPARTMENT OF AGRICULTURE,\nSecretary, at pay level III of the Executive Schedule ($42,000 per\nOFFICE OF THE SECRETARY,\nannum), to Deputy Secretary, at pay level II of that schedule\nWashington, D.C., May 30, 1975.\n($44,600). Section 1 also provides that the incumbent Under Secre-\nHon. NELSON A. ROCKEFELLER,\ntary on the date of enactment of the bill, who was appointed by the\nPresident of the Senate,\nPresident with the advice and consent of the Senate, may assume the\nWashington, D.C.\nduties of the new position and shall not be required to be reappointed.\nDEAR MR. PRESIDENT: Enclosed is a draft of a bill to provide the\nSection 2. New Assistant Secretary\nfollowing adjustments in the top-level policy staff of the Department\nSection 2 adds one new position of Assistant Secretary of Agricul-\nof Agriculture:\nture, to be appointed by the President, by and with the advice and\nUpgrade the position of Under Secretary to Deputy Secretary\nconsent of the Senate, who shall perform such duties as the Secretary\nof Agriculture;\nof Agriculture shall prescribe. The Department of Agriculture pres-\nEstablish two new positions as Assistant Secretary of Agri-\nently has four program Assistant Secretaries and an Assistant Secre-\nculture at Executive Level IV;\ntary for Administration.\nRaise the position of Administrator, Animal and Plant Health\nInspection Service, from GS-18 to Executive Level V; and\nSection 3. Pay Schedule\nIncrease the membership of the board of the Commodity\nSection 3 adds the new Assistant Secretary of Agriculture to the\nCredit Corporation from six to seven.\ncategory of persons who are compensated at Executive Level IV\nThe purpose of this legislation is to bring the USDA top-level staff\n($39,900 per annum). Section 3 also deletes from the list of positions\nin line with other departments and to recognize the tremendous\ncompensated at Executive Level V ($37,800 per annum) the position\ngrowth in the scope and complexity of USDA programs since 1953,\nof Director of Agricultural Economics, and adds to that list the posi-\nthe last time such legislation was enacted.\ntions of Administrator, Animal and Plant Health Inspection Service,\nThe scope, magnitude, and complexity of the Department's opera-\nand Administrator, Food and Nutrition Service, which presently calls\ntions have increased substantially since 1953, while the only additional\nfor the salary of a GS-18 ($37,800 per annum).\ntop-level policy position approved since that time has been the position\nSection 4. CCC Board of Directors\nof Assistant Secretary for Rural Development which was included in\nSection 4 amends section 9(a) of the Commodity Credit Corporation\nthe Rural Development Act of 1972.\nCharter Act, as amended, to increase the number of positions on the\nAt present the Secretary of Agriculture has available to assist him in\nBoard of Directors of the Commodity Credit Corporation from six to\nmanaging and directing the complex and far-reaching programs of the\nDepartment of Agriculture a top-level staff consisting of one Under\nseven.\nSecretary, four program Assistant Secretaries, an Assistant Secretary\nSection 5. Effective date of the bill\nfor Administration, and the Director of Agricultural Economics. This\nSection 5 provides that the provisions of the bill shall take effect\nsmall group of top policy officials is responsible for developing the\nupon the date of enactment, except that the removal of the position\npolicies and directing and managing the operations of a Department\nof Director of Agricultural Economics from level V of the Executive\nthat carries out its many complex programs at over 10,000 locations, in\nSchedule shall not take effect until the new Assistant Secretary is\nevery one of the 50 states, in over 3,000 counties, in every major\nappointed.\nmetropolitan area, and in many foreign countries.\n8\n9\nMany new programs have been enacted by the Congress since 1953,\nWe are also proposing that the position of Administrator, Animal\nsuch as watershed protection, mandatory poultry inspection, National\nand Plant Health Inspection Service, be established at Executive\nWool Act, Food Stamp Program, Child Nutrition Act, Agricultural\nLevel V. This agency is one of the largest and most complex in this\nFair Trade Practices Act, water and sewer program, cooperative\nDepartment. It has overall responsibility for the meat and poultry\nforestry research program, and programs for the disposition of com-\ninspection programs as well as the many programs in the areas of\nmodities under the Agricultural Trade Development and Assistance\nplant and animal disease and pest control. The agency employs over\nAct (Public Law 480), and resource conservation and development\n15,000 people and administers a budget of over $400 million. With\nprogram.\nthe exception of the Forest Service, no agency in the Department\nExisting programs have been expanded in the areas of meat inspec-\nemploys more people, and none has a greater diversity of responsi-\ntion, marketing, food distribution, nutrition, consumer services, re-\nbilities. However, seven agencies that are smaller than this one have\nsearch, education, forest land management, timber sales, rural housing,\nLevel V administrators. It should also be noted that the Food and\ntechnical assistance by the Soil Conservation Service to farmers and\nDrug Administration, which has comparable responsibilities, has a\nsoil conservation districts, and rural area development activities.\nLevel V commissioner even though its employment (6,200) and budget\nThe relationship between these programs and other Government\n($160 million) are less than half of those administered by the Animal\nprograms are becoming more and more complex. This has resulted, for\nand Plant Health Inspection Service.\nexample, in designation of the Secretary of Agriculture as a member of\nThe main functions of the Commodity Credit Corporation have\nthe Council on International Economic Policy, the Cost of Living\nbeen in those areas pertaining to the production of commodities, and\nCouncil, the Water Resources Council and other groups.\nthe stabilization of prices thereof in line with the objective of im-\nNet budgetary expenditures for all activities of the Department in-\nproving net farm income. Of recent years, greater public and govern-\ncreased from about $4.7 billion in 1953 to an estimate of about $8.9\nmental attention has been focused on the stabilization of the rural\nbillion in 1975. During this same period the man-years (average\npopulation and toward this end, major emphasis has been directed to\nannual employment) increased from 62,479 to 100,497.\nthose programs which enhance rural development. In this regard the\nThe need for adequate staffing of the several Departments at the\nbasic economic decisions of the CCC Board need to be further corre-\nDeputy Secretary and Assistant Secretary level has been recognized in\nlated with the administration of Rural Development programs. We\nmost of the other cabinet-level agencies of the Government. We\nbelieve this proposal to provide an additional member to the CCC\nbelieve the magnitude and scope of the activities which the Congress\nBoard of Directors will strengthen this relationship.\nhas authorized and directed this Department to carry out are as great\nThe Office of Management and Budget advises that there is no\nas, or greater than, those of most other civilian cabinet-level agencies.\nobjection to the presentation of this proposed legislation from the\nFour Departments of Government now have Deputy or Under\nstandpoint of the Administration's program.\nSecretaries at the Executive Level II, including the Departments of\nSincerely,\nState, Treasury, Defense (2), and Transportation. The Department\nEARL L. BUTZ, Secretary.\nof Agriculture, in terms of budget, numbers of employees, breadth\nEnclosure.\nof program, and general responsibility is sufficiently important to\nmerit a Deputy Secretary at the Executive Level II. In addition,\nA BILL To upgrade the position of Under Secretary of Agriculture to\nDeputy Secretary of Agriculture; to provide for two additional Assist-\nchanging the classification of this position from Under Secretary to\nant Secretaries of Agriculture; to increase the compensation of certain\nDeputy Secretary will give the incumbent additional influence as he\nofficials of the Department of Agriculture; to provide for an additional\ndeals with other Departments of Government and with agencies\nmember of the Board of Directors, Commodity Credit Corporation;\noutside Government.\nand for other purposes.\nThis Department with four Executive Level IV Assistant Secre-\nBe it enacted by the Senate and House of Representatives of the\ntaries ranks low among the Executive Departments. Compared with\nUnited States of America in Congress assembled, That (a)\nfour such positions in this Department, the Defense Department and\nsection 5313 of title 5 of the United States Code is amended\nits service departments have 22; the Department of Housing and\nby adding at the end thereof the following new paragraph:\nUrban Development has eight; the Department of State has 12; the\n\"(22) Deputy Secretary of Agriculture.\".\nDepartment of Justice has nine; the Department of Treasury has\n(b) Section 5314 of such title 5 is amended by striking out\nfive; the Department of the Interior has six; and the Department of\nparagraph (3).\nLabor has SIX. The position of Director of Agricultural Economics\n(c) The Acts listed in paragraphs (1) and (2) of this sub-\nwas established in the Office of the Secretary of Agriculture on\nsection are amended by striking out the words \"Under\nOctober 13, 1961. The position of Assistant Secretary for Admin-\nSecretary of Agriculture\" wherever they appear and by insert-\nistration was established in the Office of the Secretary of Agriculture\ning culture\": in lieu thereof the words \"Deputy Secretary of Agri-\nby the Reorganization Plan of 1953. Both of these positions have as\nhigh a level of responsibility as Assistant Secretaries of Agriculture\n(1) The Act of March 26, 1934 (48 Stat. 467; 7 U.S.C. 2210).\nhave, and, therefore, should be accorded the same rank.\n(2) The Act of June 5, 1939 (53 Stat. 809; 7 U.S.C. 2211).\nS. 1377-2\n10\n11\n(d) The officer occupying the position of Under Secretary\nDEPARTMENT OF AGRICULTURE,\nof Agriculture, on the date of enactment of this Act, may\nOFFICE OF THE SECRETARY,\nassume the duties of the Deputy Secretary of Agriculture.\nWashington, D.C., March 23, 1976.\nThe individual assuming such duties shall not be required\nHon. E DE LA GARZA,\nto be reappointed by reason of the enactment of this Act.\nChairman, Subcommittee on Department Operations, Investigations and\nSEC. 2. There shall be hereafter in the Department of\nOversight, Committee on Agriculture, House of Representatives,\nAgriculture, in addition to the Assistant Secretaries now\nWashington, D.C.\nprovided for by law, two additional Assistant Secretaries of\nAgriculture who shall be appointed by the President, by and\nDEAR KIKA: In view of the hearing scheduled by your subcommittee\nwith the advice and consent of the Senate, shall be responsi-\nfor March 29 on H.R. 10133, I would like to take this opportunity to\nble for such duties as the Secretary of Agriculture shall\nset forth our latest thinking on this bill. As you know the Department\nprescribe, and shall receive compensation at the rate now\nof Agriculture transmitted this proposal to the Congress on May 30,\nor hereafter prescribed by law for Assistant Secretaries of\n1975. We recommend that your Committee approve H.R. 10133 with\nthe changes noted below.\nAgriculture.\nSEC. 3. (a) Section 5315 of title 5 of the United States\nThe purpose of this legislation is to bring the top-level staff of the\nDepartment of Agriculture in line with other departments and to\nCode is amended by striking out \"(4)\" at the end of para-\nrecognize the tremendous growth in USDA programs since 1953, the\ngraph (11) and by inserting in lieu thereof \"(6)\".\n(b) Section 5316 of such title 5 is amended as follows:\nlast time such adjustments occurred. The scope, magnitude, and com-\nplexity of the Department's operations have increased substantially\n(1) By striking out paragraph (23).\nsince 1953, while the only additional top-level policy position approved\n(2) By striking out paragraph (55).\nsince that time has been the additional Assistant Secretary position\n(3) By striking out paragraph (63) and inserting in lieu\nwhich was included in the Rural Development Act of 1972.\nthereof:\nThus, the bill\n\"(63) Administrator, Animal and Plant Health Inspection\nService, Department of Agriculture.\"\nUpgrades the position of Under Secretary to Deputy Secretary\nof Agriculture;\n(c) Section 3 of Reorganization Plan Numbered 2 of 1953\nEstablishes two new positions as Assistant Secretary of Agricul-\n(67 Stat. 633) is hereby repealed.\nture at Executive Level IV;\nSEC. 4. Section 9(a) of the Commodity Credit Corporation\nRaises the position of Administrator, Animal and Plant Health\nCharter Act, as amended (62 Stat. 1072, as amended, 15\nInspection Service, from GS-18 to Executive Level V; and\nU.S.C. 714g (a)), is amended by striking out the third sen-\nIncreases the membership of the Board of the Commodity\ntence and inserting in lieu thereof: \"The Board shall consist\nCredit Corporation from six to seven.\nof seven members (in addition to the Secretary), who shall\nThe reasons for these changes are adequately set forth in our trans-\nbe appointed by the President by and with the advice and\nmittal letter SO I will not repeat them. We would, however, like to\nconsent of the Senate.\"\nrecommend the following changes.\nSEC. 5. (a) Except as otherwise provided in this section,\nWe requested two additional Assistant Secretaries of Agriculture\nthis Act shall take effect on its date of enactment.\nat Executive Level IV. However, if the intent of the Committee on\n(b) Subsection (b) (1) and subsection (c) of section 3 of\nAgriculture is to include one additional Assistant Secretary position\nthis Act shall take effect upon appointment of a Presidential\nin H.R. 11743, the bill dealing with agricultural research, only one\nappointee to fill the successor position created by section 2\nis needed in H.R. 10133. Furthermore, in any event, we recommend\nof this Act.\nthat the provisions in H.R. 10133 relating to the Assistant Secretary\n(c) Subsection (b) (2) of section 3 of this Act shall take\nfor Administration be deleted from the bill. As you may recall, the bill\neffect upon appointment of a Presidential appointee to fill the\nas submitted contemplates upgrading the positions of Director of\nsuccessor position created by section 2 of this Act.\nAgricultural Economics and Assistant Secretary for Administration\nto Executive Level IV Assistant Secretary positions. The Department\nII\nno longer feels that any change is necessary with respect to the position\nof the Assistant Secretary for Administration.\nIn letters to the Honorable E. de la Garza, Chairman, Subcommittee\nWith these changes I strongly urge your approval of H.R. 10133.\non Department Operations, Investigations and Oversight, Com-\nSincerely,\nmittee on Agriculture, House of Representatives, dated March 23,\nEARL L. BUTZ,\n1976, and April 1, 1976, the Secretary of Agriculture and the Under\nSecretary of Agriculture.\nSecretary of Agriculture recommended that H.R. 10133 be enacted\nwith changes. The letters read as follows:\n12\n13\nDEPARTMENT OF AGRICULTURE,\nThe Committee's estimate is based on the cost estimate of H.R.\nOFFICE OF THE SECRETARY,\n10133 prepared by the Congressional Budget Office pursuant to the\nWashington, D.C., April 1, 1976.\nCongressional Budget Act of 1974. The principal difference between the\nHon. E DE LA GARZA,\nCommittee's estimate and the estimate prepared by the Congressional\nChairman, Subcommittee on Department Operations, Investigation and\nBudget Office arises from the fact that H.R. 10133, as amended by\nOversight, Committee on Agriculture, House of Representatives,\nthe Committee, only eliminates one level V position.\nWashington, D.C.\nRepresentatives of the Department of Agriculture have informally\nDEAR MR. CHAIRMAN: At the hearing before your Subcommittee on\nadvised the Committee that the increased costs for fiscal year 1977\nMarch 29 concerning H.R. 10133 you requested that we provide the\nwould be absorbed within existing appropriations.\nDepartment's views on the proposal of Mr. Richmond to raise the posi-\ntion of Administrator of the Food and Nutrition Service from GS-18\nII\nto Executive Level V.\nWe recognize that there has been an increase in the scope and mag-\nThe cost estimate prepared by the Congressional Budget Office\nnitude of the various food programs administered by the Food and\nreads as follows:\nNutrition Service of this Department. Since the Food and Nutrition\nCONGRESS OF THE UNITED STATES,\nService came into existence on August 8, 1969, its total program out-\nCONGRESSIONAL BUDGET OFFICE,\nlays have risen from $1.0 billion in Fiscal Year 1970 to $7.9 billion\nWashington, D.C., May 26, 1976.\nin Fiscal Year 1976. And, in this period employment has increased\nHon. THOMAS S. FOLEY,\nfrom 1,747 to 2,534. Thus, we would agree that there is justification\nChairman, Committee on Agriculture,\nfor upgrading the position of Administrator of the Food and Nutri-\nU.S. House of Representatives, Washington, D.C.\ntion Service.\nDEAR MR. CHAIRMAN: Pursuant to Section 403 of the Congressional\nWhile we would prefer that any change with regard to this matter\nBudget Act of 1974, the Congressional Budget Office has prepared\nbe delayed until all questions concerning proposed food stamp legis-\nthe attached cost estimate for H.R. 10133, a bill concerning adjust-\nlation are resolved, we would not object to including a provision in\nments in USDA executive staff.\nH.R. 10133 to establish this position of Administrator of the Food\nShould the Committee SO desire, we would be pleased to provide\nand Nutrition Service at Executive Level V.\nfurther details on the attached cost estimate.\nThe Office of Management and Budget advises that there is no ob-\nSincerely,\njection to the presentation of this report from the standpoint of the\nALICE M. RIVLIN, Director.\nAdministration's program.\nAttachment.\nSincerely,\nJOHN A. KNEBEL,\nCONGRESSIONAL BUDGET OFFICE-COST ESTIMATE\nUnder Secretary.\n1. Bill number: H.R. 10133.\n2. Bill title: Adjustments in USDA Executive Staff.\nCOST ESTIMATE\n3. Purpose of bill: H.R. 10133 would upgrade certain\nexecutive positions within the Department of Agriculture.\nI\nThe position of Under Secretary would be upgraded to\nDeputy Secretary, which would raise the level of compensa-\nIn accordance with section 252 of the Legislative Reorganization\ntion for the number two position from Executive Level III\nAct of 1970, the following is the Committee's estimate of the increased\n($42,000 per year) to Level II ($44,600 per year). The legisla-\ncosts which would be incurred in carrying out the provisions of\ntion would also create a position for an additional Assistant\nH.R. 10133.\nSecretary who would be paid at Level IV ($39,900 per year).\nTwo Level V positions, the Director of Agricultural Eco-\nFiscal year-\nnomics and the Director of Science and Education, would\n1977\n1978\n1980\nbe eliminated. Persons holding these posts receive $37,800\n1979\n1981\nper year. Two other positions would be upgraded. The Ad-\nUpgrade Under Secretary\n$2,600\n$3,284\n$3,557\n$3,802\n$4,063\nministrator of the Animal and Plant Inspection Service and\nCreate new Assistant Secretary\n39,900\n50,394\n54,576\n58,342\n62,368\nthe Director of the Food and Nutrition Service would be\nEliminate 1 level V position\n-37,800\n-41,774\n-45,241\n-48,363\n-51,700\nUpgrade 2 GS-18 positions to level V.\nraised from GS-18 to Level V. This adjustment does not\nTotal increase\n+4,700\n+11,904\n+12,892\n+13,781\n+14,731\ninvolve a salary increase because positions at both levels.\nreceive $37,800. The bill would also increase the size of the\nCommodity Credit Corporation Board by one.\n14\n15\nAccording to the Secretary of Agriculture, these changes\n6. Estimate comparison: None available.\nare needed to make the executive positions of the Department\n7. Previous CBO estimate: None.\ncomparable to those of other agencies.\n8. Estimate prepared by: Robert M. Gordon.\n4. Cost estimate: Upgrading the position of Under Secre-\n9. Estimate approved by:\ntary and establishing a new Assistant Secretary would result\nC. G. NUCKOLS,\nin additional costs. These increases, however, would be more\nDeputy Assistant Director for Budget Estimates.\nthan offset after the transition quarter by the savings as-\nsociated with the elimination of the two Level V positions.\nCHANGES IN EXISTING LAW\nEstimates of the net impact on costs are shown in the table\nbelow.\nIn compliance with subsection (4) of rule XXIX of the Standing\nRules of the Senate, changes in existing law made by the bill are\nshown as follows (existing law proposed to be omitted is enclosed in\nFiscal year-\nblack brackets, new matter is printed in italic, existing law in which\nTransition\nquarter\n1977\n1978\n1979\n1980\n1981\nno change is proposed is shown in roman):\nUpgrade Under Secretary\n$709\n$3,018\n$3,284\n$3,557\n$3,802\n$4,063\nTITLE 5, UNITED STATES CODE\nCreate new Assistant Secretary\n10,873\n46,318\n5, 0394\n54,576\n58,342\n62,368\nEliminate 2 level IV positions\n-10,301\n-76,790\n-83,549\n-90,483\n-96,727\n-103,401\nUpgrade 2 GS-18 positions to level V\nTotal\n+1,281\n-27,454\n-29,871\n-32,350\n-34,583\n-36,970\n§ 5313. Positions at level II.\nLevel II of the Executive Schedule applies to the following positions,\n5. Basis for estimate: The estimates reflect changes in ex-\nfor which the annual rate of basic pay shall be the rate determined\npenditures for salaries and benefits. The impact of upgrading\nwith respect to such level under chapter 11 of title 2, as adjusted by\nthe position of Under Secretary was estimated by projecting\nsection 5318 of this title:\nthe future salary and benefits costs of a Level II and Level\nIII position and by calculating the net increases in ex-\npenditures. Estimates of future costs were based on the\ncurrent salary levels and CBO projections of future increases\n(23) Deputy Secretary of Agriculture.\nin federal salaries. A sum equivalent to 9 percent of the salary\n§ 5314. Positions at level III.\nbase was added to the annual earnings to reflect the associated\nbenefits. It was assumed further that the pay increase\nLevel III of the Executive Schedule applies to the following posi-\ntions, for which the annual rate of basic pay shall be the rate deter-\nwould become effective during the transition quarter.\nmined with respect to such level under chapter 11 of title 2, as ad-\nA similar procedure was employed in calculating the cost\njusted by section 5318 of this title:\nof the new Assistant Secretary. The current salary base for\nLevel IV positions was inflated to show expected increases in\nsalaries during the five-year period and then augmented by\nthe benefit factor. The estimates in the table represent the\n(3) Under Secretary of Agriculture.]\ncompensation cost only. Nothing was added for supporting\nstaff and overhead because it was assumed that the new posi-\ntion would be filled by the current Director for Agricultural\nEconomics. His present staff and office expenses would not\n§ 5315. Positions at level IV.\nbe affected by the promotion.\nLevel IV of the Executive Schedule applies to the following posi-\nThese increases in costs would be more than offset, at least\ntions, for which the annual rate of basic pay shall be the rate deter-\nafter the transition quarter, by the cost-savings arising from\nmined with respect to such level under chapter 11 of title 2, as adjusted\nthe elimination of the two Level V jobs. These savings were\nby section 5318 of this title:\nestimated by simply calculating the future costs of two Level\nV positions.\nThe upgrading of the two GS-18 positions to the Level V\nrank would have no impact on costs because the salary levels\n(11) Assistant Secretaries of Agriculture [(4)] (5):\nare the same ($37,800 per year). The addition of one seat to\nthe Commodity Credit Corporation Board would also have\nno cost effects. This provision simply adds one more assign-\nment to an existing position.\n16\n17\n§ 5316. Positions at level V.\nand shall perform such other duties as may be required by law or\nLevel V of the Executive Schedule applies to the following positions,\nprescribed by the Secretary of Agriculture.\nfor which the annual rate of basic pay shall be the rate determined\n*\nwith respect to such level under chapter 11 of title 2, as adjusted by\nCOMMODITY CREDIT CORPORATION CHARTER Act\nsection 5318 of this title:\nSEC. 9. DIRECTORS, ADVISORY BOARD: (a) The management of the\n[(55) Director of Agricultural Economics, Department of Agri-\nCorporation shall be vested in a board of directors (hereinafter re-\nculture.\nferred to as the \"Board\"), subject to the general supervision and di-\nrection of the Secretary. The Secretary shall be an ex officio director\nand shall serve as Chairman of the Board. The Board shall consist of\nsix members (in addition to the Secretary), who shall be appointed by\n(137) Administrator, Animal and Plant Health Inspection Service,\nthe President by and with the advice and consent of the Senate. The\nDepartment of Agriculture.\nBoard shall consist of seven members (in addition to the Secretary),\n(138) Administrator, Food and Nutrition Service, Department of\nwho shall be appointed by the President by and with the advice and\nAgriculture.\nconsent of the Senate. In addition to their duties as members of the\nBoard such appointed members shall perform such other duties as\nmay be prescribed by the Secretary. Each appointed member of the\nACT OF MARCH 26, 1934\nBoard shall receive compensation at such rate not in excess of th\nmaximum then payable under the Classification Act of 1923, as\nAN ACT Making appropriations for the Department of Agriculture and for the\namended, as may be fixed by the Secretary, except that any such mem-\nFarm Credit Administration for the fiscal year ending June 30, 1935, and for\nother purposes\nber who holds another office or position under the Federal Government\nthe compensation for which exceeds such rate may elect to receive\nBe it enacted by the Senate and House of Representatives of the United\ncompensation at the rate provided for such other office or position in\nStates of America in Congress assembled, That the following sums are\nlieu of the compensation provided by this section. A majority of the\nappropriated, out of any money. in the Treasury not otherwise appro-\ndirectors shall constitute a quorum of the Board and action shall be\npriated, for the Department of Agriculture and for the Farm Credit\ntaken only by a majority votes of those present.\nAdministration for the fiscal year ending June 30, 1935, namely:\nTITLE I-DEPARTMENT OF AGRICULTURE\nFARM LABOR CONTRACTOR REGISTRATION ACT OF 1963, AS AMENDED\nOFFICE OF THE SECRETARY\nAN ACT To provide for the registration of contractors of migrant agricultural\nworkers, and for other purposes.\nSALARIES\nBe it enacted by the Senate and House of Representatives of the United\nFor the Secretary of Agriculture, Under Secretary of Agriculture]\nStates of America in Congress assembled, That this Act may be cited as\nDeputy Secretary of Agriculture, $10,000, and there is hereby estab-\nthe \"Farm Labor Contractor Registration Act of 1963\".\nlished in the Department of Agriculture the position of [Under\nCONGRESSIONAL FINDINGS AND DECLARATION OF POLICY\nSecretary of Agriculture] Deputy Secretary of Agriculture, to be\nappointed by the President, by and with the advice and consent of\nSEC. 2. (a) The Congress hereby finds that the channels and instru-\nthe Senate\nmentalities of interstate commerce are being used by certain irresponsi-\nble contractors for the services of the migrant agricultural laborers\nwho exploit producers of agricultural products, migrant agricultural\nAct OF JUNE 5, 1939\nlaborers, and the public generally, and that, as a result of the use of\nResolved by the Senate and House of Representatives of the United\nthe channels and instrumentalities of interstate commerce by such\nStates of America in Congress assembled, That the Under Secretary\nirresponsible contractors, the flow of interstate commerce has, been\nof Agriculture: Deputy Secretary of Agriculture is authorized to\nimpeded, obstructed, and restrained.\nexercise the functions and perform the duties of the first assistant of\n(b) It is therefore the policy of this Act to remove the impediments,\nthe Secretary of Agriculture within the meaning of section 177 of\nobstructions, and restraints occasioned to the flow of interstate com-\nthe Revised Statutes of the United States (U.S.C., title 5, sec. 4)\nmerce by the activities of such irresponsible contractors by requiring\nthat all persons engaged in the activity of contracting for the services\n1 Section 177 of the Revised Statutes was repealed by Public Law 89-554. The provi-\nof workers for interstate agricultural employment comply with the\nsions were replaced with 5 U.S.C. 3345.\n18\nprovisions of this Act and all regulations prescribed hereunder by\nthe Secretary of Labor!\nDEFINITIONS\nSEC. 3. As used in this Act-\n(a) The term \"person\" includes any individual, partnership, asso-\nciation, joint stock company, trust, or corporation.\n(b) The term \"farm labor contractor\" means any person, who,\nfor a fee, either for himself or on behalf of another person, recruits,\nsolicits, hires, furnishes, or transports migrant workers (excluding\nmembers of his immediate family) for agricultural employment.\nSuch term shall not include-\n(1) any nonprofit charitable organization, public or nonprofit\nprivate educational institution, or similar organization;\n(2) any farmer, processor, canner, ginner, packing shed oper-\nator, or nurseryman who personally engages in any such activity\nfor the purpose of supplying migrant workers solely for his own\noperation;\n(3) any full-time or regular employee of any entity referred\nto in (1) or (2) above who engages in such activity solely for\nhis employer on no more than an incidental basis;\n(4) any person who engages in any such activity (A) solely\nwithin a twenty-five mile intrastate radius of his permanent place\nof residence and (B) for not more than thirteen weeks per year;\n(5) any person who engages in any such activity for the pur-\npose of obtaining migrant workers of any foreign nation for\nemployment in the United States if the employment is subject\nto—\n(A) an agreement between the United States and such\nforeign nation; or\n(B) an arrangement with the government of any foreign\nnation under which written contracts for the employment\nof such workers are provided for and the enforcement there-\nof is provided for through the United States by an instru-\nmentality of such foreign nation;\n(6) any full-time or regular employee of any person holding\na certificate of registration under this Act;\n(7) any common carrier or any full-time regular employee\nthereof engaged solely in the transportation of migrant workers;\n(8) any custom combine, hay harvesting, or sheep shearing\noperation ; or\n(9) any custom poultry harvesting, breeding, debeaking, sexing [or\nhealth service operation, provided the employees of the operation are\nnot regularly required to be away from their domicile other than\nduring their normal working hours.\n*\n*\n*\nCORRECTED\nSHEET\nH. R. 10133\nMinety-fourth Congress of the United States of America\nAT THE SECOND SESSION\nBegun and held at the City of Washington on Monday, the nineteenth day of January,\none thousand nine hundred and seventy-six\nAn Act\nTo upgrade the position of Under Secretary of Agriculture to Deputy Secretary\nof Agriculture; to provide for an additional Assistant Secretary of Agriculture;\nto increase the compensation of certain officials of the Department of Agricul-\nture; to provide for an additional member of the Board of Directors,\nCommodity Credit Corporation; and for other purposes.\nBe it enacted by the Senate and House of Representatives of the\nUnited States of America in Congress assembled, That (a) section\n5313 of title 5 of the United States Code is amended by adding at the\nend thereof the following new paragraph:\n\"(23) Deputy Secretary of Agriculture.\".\n(b) Section 5314 of such title 5 is amended by striking out para-\ngraph (3).\n(c) The Acts listed in paragraphs (1) and (2) of this subsection are\namended by striking out the words \"Under Secretary of Agriculture\"\nwherever they appear and by inserting in lieu thereof the words\n\"Deputy Secretary of Agriculture\":\n(1) The Act of March 26, 1934 (48 Stat. 467; 7 U.S.C. 2210).\n(2) The Act of June 5, 1939 (53 Stat. 809; 7 U.S.C. 2211).\n(d) The officer occupying the position of Under Secretary of Agri-\nculture, on the date of enactment of this Act, may assume the duties of\nthe Deputy Secretary of Agriculture. The individual assuming such\nduties shall not be required to be reappointed by reason of the enact-\nment of this Act.\nSEC. 2. There shall be hereafter in the Department of Agriculture,\nin addition to the Assistant Secretaries now provided for by law, one\nadditional Assistant Secretary of Agriculture who shall be appointed\nby the President, by and with the advice and consent of the Senate,\nshall be responsible for such duties as the Secretary of Agriculture\nshall prescribe, and shall receive compensation at the rate now or\nhereafter prescribed by law for Assistant Secretaries of Agriculture.\nSEC. 3. (a) Section 5315 of title 5 of the United States Code is\namended by striking out \"(4)\" at the end of paragraph (11) and by\ninserting in lieu thereof (5)\n(b) Section 5316 of title 5 of the United States Code is amended-\n(1) by striking out paragraph (55) ; and\n(2) by adding at the end thereof a new paragraph (137) as\nfollows:\n(137) Administrator, Animal and Plant Health Inspection\nService, Department of Agriculture.\".\nSEC. 4. Section 9(a) of the Commodity Credit Corporation Charter\nAct, as amended (62 Stat. 1072, as amended, 15 U.S.C. 714g(a)), is\namended by striking out the third sentence and inserting in lieu\nthereof: \"The Board shall consist of seven members (in addition to\nthe Secretary), who shall be appointed by the President by and with\nthe advice and consent of the Senate.\".\nSEC. 5. (a) Except as otherwise provided in this section, this Act\nshall take effect on its date of enactment.\nH. R. 10133-2\n(b) Subsection (b) (1) of section 3 of this Act shall take effect\nupon appointment of a Presidential appointee to fill the successor\nposition created by section 2 of this Act.\nSEC. 6. Section 3(b) of the Farm Labor Contractor Registration\nAct of 1963, as amended (78 Stat. 920, as amended; 7 U.S.C. 2042), is\namended—\n(a) by striking out the period at the end of paragraph (8) and\ninserting in lieu thereof a semicolon and the word \"or\"; and\n(b) by adding at the end thereof a new paragraph (9) as\nfollows:\n\"(9) any custom poultry harvesting, breeding, debeaking, sex-\ning, or health service operation, provided the employees of the\noperation are not regularly required to be away from their domi-\ncile other than during their normal working hours.\".\nSpeaker of the House of Representatives.\nVice President of the United States and\nPresident of the Senate."
}