[House Report 106-432]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    106-432

======================================================================



 
AMENDING THE PRESIDENTIAL TRANSITION ACT OF 1963 TO PROVIDE FOR 
  TRAINING OF INDIVIDUALS A PRESIDENT-ELECT INTENDS TO NOMINATE AS 
  DEPARTMENT HEADS OR APPOINT TO KEY POSITIONS IN THE EXECUTIVE OFFICE OF 
  THE PRESIDENT

                                _______
                                

November 1, 1999.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______


    Mr. Burton of Indiana, from the Committee on Government Reform, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 3137]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Government Reform, to whom was referred 
the bill (H.R. 3137) to amend the Presidential Transition Act 
of 1963 to provide for training of individuals a President-
elect intends to nominate as department heads or appoint to key 
positions in the Executive Office of the President, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose..........................................................2
 II. Background and Need for the Legislation..........................2
III. Legislative Hearings and Committee Actions.......................4
 IV. Committee Hearings and Written Testimony.........................4
  V. Explanation of the Bill..........................................4
 VI. Committee Oversight Findings.....................................5
VII. Budget Analysis and Projections..................................5
VIII.Cost Estimate of the Congressional Budget Office.................5

 IX. Statement of Constitutional Authority............................6
  X. Committee Recommendation.........................................6
 XI. Congressional Accountability Act; P.L. 104-1.....................6
XII. Unfunded Mandates Reform Act; P.L. 104-4, Section 423............6
XIII.Federal Advisory Committee Act (5 U.S.C. App.) Section 5(b)......6

XIV. Changes in Existing Law..........................................6

                               I. Purpose

    H.R. 3137, the ``Presidential Transition Act Amendment of 
1999'' would amend the Presidential Transition Act of 1963 to 
provide for training of individuals a President-elect intends 
to nominate as department heads or appoint to key positions in 
the Executive Office of the President.

                II. Background and Need for Legislation

    H.R. 3137, the ``Presidential Transition Act Amendment of 
1999'' would allow transition funds to be used for orientations 
of high-level, incoming White House appointees, including 
Cabinet members. The bill stresses the need for these 
orientations to occur between the general election and 30 days 
after the incoming President's inauguration. A structured 
orientation process would assist new, high-level appointees in 
their new capacities. In addition, it is the Committee's 
expectation that the President will provide similar 
orientations to larger groups of lower level appointees at the 
start of the Administration.
    Over the years, there have been many examples of missteps 
and outright errors made by newly appointed officials at 
executive branch agencies and in the White House. However 
capable and well-intentioned, new and unseasoned appointees are 
especially susceptible to misjudgments that, at a minimum, can 
be politically embarrassing, but can also have serious 
consequences for a new Administration's credibility.
    As we have seen, sometimes the errors tumble out in 
misstatements or ill-advised recommendations; other times, they 
have resulted in ethical lapses by an appointee who was unaware 
of the ethical standards required by Federal law. These errors 
could have been avoided if these appointees had properly 
understood the scope of their responsibilities. But White House 
orientations are virtually non-existent during the transition 
period. There has not been enough emphasis on the orientation 
process in either Democratic or Republican administrations.
    Providing timely orientations to new appointees helps 
smooth the transition between Administrations and ensure 
continuity in the conduct of business within the Federal 
Government. Establishing a formal transition process, however, 
requires money. Prior to 1963, the primary source of transition 
funding came from the incoming President's political party and 
contributions from a volunteer staff.\1\
---------------------------------------------------------------------------
    \1\ CRS Report for Congress: Presidential Transitions, An Overview 
and Bibliography, 1960-1992, Stephanie Smith, Analyst in American 
National Government Division, and George Walsher, Senior Bibliographer, 
Government and Law Library Services Division, November 17, 1992
---------------------------------------------------------------------------
    Following a national debate over campaign financing, which 
included presidential transition activities, President John F. 
Kennedy established the President's Commission on Campaign 
Costs in November 1961. The commission was established to make 
recommendations on financing the expenses of nominees for the 
offices of President and Vice President and other relevant 
costs associated with presidential campaigns.\2\
---------------------------------------------------------------------------
    \2\ Establishing the President's Commission on Campaign Costs. 
Executive Order 10974, November 8, 1961. 3 C.F.R. 496 (1959-1963)
---------------------------------------------------------------------------
    The Commission's final report entitled, ``Financing 
Presidential Campaigns'' included a recommendation to publicly 
fund presidential transitions. Shortly thereafter, legislation 
was approved to provide Federal financial support for the 
transition period.\3\
---------------------------------------------------------------------------
    \3\ U.S. President's Commission on Campaign Costs. Financing 
Presidential Campaigns. Washington, U.S. Government Printing Office, 
April 1962. p 36.
---------------------------------------------------------------------------
    The Presidential Transition Act of 1963, signed into law on 
March 7, 1964, authorized Federal funding and assistance for 
incoming Presidents. The Act authorized the Administrator of 
the General Services to provide office space, detail of 
personnel, consultant fees, and travel expenses for the 
incoming President and Vice President. It also authorized the 
outgoing President and Vice President to use transition funds 
for a period of up to seven months. The Act authorized an 
appropriation of $900,000, to be divided equally between 
incoming and outgoing Administrations.
    In 1970, the General Accounting Office filed a report 
recommending that the $900,000 limit be increased due to the 
escalating costs associated with the transition period.\4\ The 
Act was amended in 1976 to increase the transition funds to $2 
million for the incoming President and Vice President and to $1 
million for the outgoing President and Vice President. The 
Amendment also provided that the incoming Administration could 
use Federal employees as White House detailees on a 
reimbursable basis.
---------------------------------------------------------------------------
    \4\ U.S. General Accounting Office. Federal Assistance for 
Presidential Transitions. Washington, U.S. Government Printing Office, 
November 16, 1970.
---------------------------------------------------------------------------
    Again concerned that future Presidents would have to raise 
private funds to finance the transition period, Congress passed 
the Presidential Transitions Effectiveness Act of 1988. This 
law increased transition funding to $3.5 million for the 
incoming President and Vice President and $1.5 million for the 
outgoing President and Vice President.
    The legislation provided that the incoming President and 
Vice President could use the funds from the day after the 
general election to 30 days after inauguration. The outgoing 
President and Vice President could use the funds for a 6 to 7 
month period, beginning one month prior to inauguration. In 
years that a Vice-President is elected President, the funding 
level was set at $1.25 million. Again, these figures were to be 
adjusted for inflation. The 1988 Act also included a provision 
requiring public disclosure of the names of all transition 
personnel and private contributors. In addition, the 
legislation required that all pre-election transition funds 
must be acquired privately.
    The 1999 amendment to the Presidential Transition Act of 
1963 would authorize the use of transition funds for the 
purpose of providing formal orientations for individuals the 
President-elect plans to nominate and appoint to top White 
House positions, including Cabinet positions. This legislation 
only affects the top political appointments in the White House, 
and it would give greater assurance that the orientation 
process would take place before or shortly after the incoming 
President assumes office. It would also increase the time and 
likelihood that a larger orientation process would be put in 
place for lower level political appointments.

            III. Legislative Hearings and Committee Actions

    H.R. 3137, the ``Presidential Transition Act Amendment of 
1999,'' was introduced October 25, 1999, by Representative 
Stephen Horn of California. On October 13, 1999, the 
Subcommittee on Government Management, Information, and 
Technology held a legislative hearing on the bill, which was 
still in draft form. After the bill's introduction, the 
subcommittee held a business meeting on October 26, 1999, to 
mark up H.R. 3137. The legislation passed unanimously by voice 
vote and was reported to the full Committee on Government 
Reform. H.R. 3137 was considered by the full Committee on 
Government Reform on October 28, 1999, and was passed 
unanimously by voice vote.

              IV. Committee Hearings and Written Testimony

    On October 13, 1999, the Subcommittee on Government 
Management, Information, and Technology conducted a legislative 
hearing on H.R. 3137 while the bill was still in its draft 
form. The hearing examined various issues involving 
presidential transitions. Witnesses testified regarding the 
intent of the bill, the bill's objectives and provisions, and 
suggested changes.
    A number of distinguished witnesses testified in support of 
the legislation, including the Honorable Elliot Richardson, 
former Attorney General to President Nixon, and the Honorable 
Lee White, former Assistant Counsel to President Kennedy and 
Counsel to President Lyndon Johnson. Each of these witnesses 
presented a unique perspective of the presidency and the 
transition period. Both said that the legislation is an 
important step toward preventing future missteps by political 
appointees.
    In addition, the subcommittee heard from three other 
witnesses who supported the legislation: Dwight Ink, former 
Acting Director of the Office of Management and Budget; Paul 
Light, Director of the Center for Public Service at The 
Brookings Institution; and Norman J. Ornstein, Resident Scholar 
at the American Enterprise Institute for Policy Research.
    Additional written testimony supporting the legislation was 
submitted for the record by General Andrew Goodpastor, Staff 
Secretary to President Eisenhower, the Honorable John Gardner, 
Secretary of Health, Education, and Welfare for President 
Lyndon Johnson, and the Honorable Pendleton James, Director of 
Presidential Personnel for President Reagan.

                       V. Explanation of the Bill

    The 1999 amendment to the Presidential Transition Act of 
1963 would authorize the use of transition funds for the 
purpose of providing orientations for individuals the 
President-elect plans to nominate and appoint to top White 
House positions, including Cabinet positions. This legislation 
only affects the top political appointments in the executive 
branch agencies and in the Executive Office of the President, 
and it would give greater assurance that the orientation 
process would take place before or shortly after the incoming 
President assumes office. It is the Committee's expectation 
that this would also lead to a larger orientation process for 
lower level political appointments.

                    VI. Committee Oversight Findings

    Pursuant to rule XIII, clause 3(c)(1), of the Rules of the 
House of Representatives, the results and findings for those 
oversight activities are incorporated in the recommendations 
found in the bill and in this report.

                  VII. Budget Analysis and Projections

    Clause 3(c)(2) of rule XIII, of the Rules of the House of 
Representatives, is inapplicable because the bill does not 
provide new budget authority, new spending authority, new 
credit authority, or an increase or decrease in revenues or tax 
expenditures.

         VIII. Cost Estimate of the Congressional Budget Office

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, October 29, 1999.
Hon. Dan Burton,
Chairman, Committee on Government Reform,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3137, a bill to 
amend the Presidential Transition Act of 1963 to provide for 
training of individuals a President-elect intends to nominate 
as department heads or appoint to key positions in the 
Executive Office of the President.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is John R. 
Righter.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 3137--A bill to amend the Presidential Transition Act of 1963 to 
        provide for training of individuals a President-elect intends 
        to nominate as department heads or appoint to key positions in 
        the Executive Office of the President

    H.R. 3137 would clarify that a newly elected President may 
use funds authorized under the Presidential Transition Act of 
1963 to provide training to individuals that he or she intends 
to nominate as department heads or appoint to key positions in 
the Executive Office of the President. Because any additional 
training would apply to relatively few individuals, CBO 
estimates that implementing the bill would not significantly 
affect the costs of Presidential transitions. Any increase in 
costs would be subject to the availability of appropriated 
funds. Because the bill would not affect direct spending or 
receipts, pay-as-you-go procedures would not apply. H.R. 3137 
contains no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act and would not 
affect the budgets of state, local, or tribal governments.
    The CBO staff contact is John R. Righter. This estimate was 
approved by Peter H. Fontaine, Deputy Assistant Director for 
Budget Analysis.

               IX. Statement of Constitutional Authority

    Pursuant to rule XIII, clause 3(d)(1), the Committee finds 
that clauses 1 and 18 of Article I, Section 8 of the U.S. 
Constitution grant Congress the power to enact this law.

                      X. Committee Recommendation

    On October 28, 1999, a quorum being present, the Committee 
on Government Reform ordered the bill favorably reported by 
voice vote to the House for consideration.

         XI. Congressional Accountability Act; Public Law 104-1

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of Section 
102(B)(3) of the Congressional Accountability Act (P.L. 104-1).

    XII. Unfunded Mandates Reform Act; Public Law 104-4, Section 423

    The Committee finds that the legislation does not impose 
any Federal mandates within the meaning of Section 423 of the 
Unfunded Mandates Reform Act (P.L. 104-4).

   XIII. Federal Advisory Committee Act (5 U.S.C. App.) Section 5(b)

    The Committee finds that the legislation does not establish 
or authorize establishment of an advisory committee within the 
definition of 5 U.S.C. App., Section 5(b).

       XIV. Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                 PRESIDENTIAL TRANSITION ACT OF 1963

           *       *       *       *       *       *       *


  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That this 
Act may be cited as the ``Presidential Transition Act of 
1963.''

           *       *       *       *       *       *       *


 services and facilities authorized to be provided to presidents-elect 
                       and vice-presidents-elect

  Sec. 3. (a) The Administrator of General Services, referred 
to hereafter in this Act as ``the Administrator,'' is 
authorized to provide, upon request, to each President-elect 
and each Vice-President-elect, for use in connection with his 
preparations for the assumption of official duties as President 
or Vice President necessary services and facilities, 
[including--] including the following:
          (1) Suitable office space appropriately equipped with 
        furniture, furnishings, office machines and equipment, 
        and office supplies, as determined by the 
        Administrator, after consultation with the President-
        elect, the Vice-President-elect, or their designee 
        provided for in subsection (e) of this section, at such 
        place or places within the United States as the 
        President-elect or Vice-President-elect shall 
        designate[;].
          (2) Payment of the compensation of members of office 
        staffs designated by the President-elect or Vice-
        President-elect at rates determined by them not to 
        exceed the rate provided by the Classification Act of 
        1949, as amended, for grade GS-18: Provided, That any 
        employee of any agency of any branch of the Government 
        may be detailed to such staffs on a reimbursable basis 
        with the consent of the head of the agency; and while 
        so detailed such employee shall be responsible only to 
        the President-elect or Vice-President-elect for the 
        performance of his duties: Provided further, That any 
        employee so detailed shall continue to receive the 
        compensation provided pursuant to law for his regular 
        employment, and shall retain the rights and privileges 
        of such employment without interruption. 
        Notwithstanding any other law, persons receiving 
        compensation as members of office staffs under this 
        subsection, other than those detailed from agencies, 
        shall not be held or considered to be employees of the 
        Federal Government except for purposes of the Civil 
        Service Retirement Act, the Federal Employees' 
        Compensation Act, the Federal Employees' Group Life 
        Insurance Act of 1954, and the Federal Employees Health 
        Benefits Act of 1959[;].
          (3) Payment of expenses for the procurement of 
        services of experts or consultants or organizations 
        thereof for the President-elect or Vice-President-
        elect, as authorized for the head of any department by 
        section 15 of the Administrative Expenses Act of 1946, 
        as amended (5 U.S.C. 55a),[;].
          (4)(A) Payment of travel expenses and subsistence 
        allowances, including rental of Government or hired 
        motor vehicles, found necessary by the President-elect 
        or Vice-President-elect, as authorized for persons 
        employed intermittently or for persons serving without 
        compensation by section 5 of the Administrative 
        Expenses Act of 1946, as amended (5 U.S.C. 73b-2), as 
        may be appropriate[;].
          (B) When requested by the President-elect or Vice-
        President-elect or their designee, and approved by the 
        President, Government aircraft may be provided for 
        transition purposes on a reimbursable basis; when 
        requested by the President-elect, the Vice-President-
        elect, or the designee of the President-elect or Vice-
        President-elect, aircraft may be chartered for 
        transition purposes; and any collections from the 
        Secret Service, press, or other occupying space on 
        chartered aircraft shall be deposited to the credit of 
        the appropriations made under section 6 of this Act[;].
          (5) Communications services found necessary by the 
        President-elect or Vice-President-elect[;].
          (6) Payment of expenses for necessary printing and 
        binding, notwithstanding the Act of January 12, 1895, 
        and the Act of March 1, 1919, as amended (44 U.S.C. 
        111)[;].

           *       *       *       *       *       *       *

          (8)(A) Payment of expenses during the transition for 
        briefings, workshops, or other activities to acquaint 
        key prospective Presidential appointees with the types 
        of problems and challenges that most typically confront 
        new political appointees when they make the transition 
        from campaign and other prior activities to assuming 
        the responsibility for governance after inauguration, 
        including interchange with individuals who held similar 
        leadership roles in prior administrations, agency or 
        department experts from the Office of Management and 
        Budget or an Office of Inspector General of an agency 
        or department, and relevant staff from the General 
        Accounting Office.
          (B) Activities funded under this paragraph shall be 
        conducted primarily for individuals the President-elect 
        intends to nominate as department heads or appoint to 
        key positions in the Executive Office of the President.