NATIONAL COMMISSION ON INTERGOVERNMENTAL RELATIONS WEDNESDAY, MARCH 12, 1952 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON INTERGOVERNMENTAL RELATIONS OF THE COMMITTEE ON EXPENDITURES Washington, D. C. The subcommittee met, pursuant to call, in room 219, Old House Office Building, Hon. Herbert C. Bonner, chairman of the subcommittee, presiding. Present: Representatives Dawson, chairman; Bonner, chairman of the subcommittee; Shelley, Fine, and Brownson. Also present: Thomas A. Kennedy, general counsel of the Committee on Expenditures in the Executive Departments; Herbert Small, associate counsel; Hon. Adlai Stevenson, Governor of Illinois; Hon. Alfred Driscoll, Governor of New Jersey; Hon. Walter Kohler, Governor of Wisconsin; Robert Stedman, representing Hon. G. Mennen Williams, Governor of Michigan; Frank Bane, executive director, Council of State Governments; Ted G. Driscoll, assistant director, Council of State Governments; and Eugene G. Shaw, commissioner of revenue of North Carolina and secretary of National Association of Tax Administrators. Mr. BONNER. The subcommittee will come to order. This is the Subcommittee on Intergovernmental Relations of the Committee on Expenditures in the House. There has been pending before the subcommittee for some time several bills with respect to the relationship of the Federal Government with the State governments and the overlapping of jurisdiction and programs. The subcommittee will insert in the hearing at this point a copy of the various bills that have been introduced. The bills seem to be very similar. A similarity runs throughout the entire set of bills. (The bills, H. R. 3683, H. R. 5251, H. R. 3303, H. R. 391, and H. R. 13 are as follows:) [H. R. 3683, 82d Cong., 1st. sess.] A BILL To establish a temporary National Commission on Intergovernmental Relations Be it enacted by the Senate and the House of Representatives of the United States of America in Congress assembled, FINDINGS OF FACT SECTION 1. Since the establishment of the federal system of government, no comprehensive survey has been made by the Congress of the relationships existing among the National, State, and local governments of the United States; of the allocation of governmental functions and powers among these three governmental 1 Name changed to Committee on Government Operations, July 4, 1952. 1 levels, or of the distribution of jurisdiction of governmental functions and powers exercised by two or more governmental authorities. Prior to a determination of necessity of desirability of a reallocation of functions and powers or of redistribution of jurisdiction over them among the levels of the Federal system, it is necessary that such a study and survey be made. It is the belief of the Congress that such a study and survey of past and present conditions and the determination of what legislation should be proposed can best be accomplished through the cooperative efforts of officials of government and representatives of the people. ESTABLISHMENT OF THE NATIONAL COMMISSION ON INTERGOVERNMENTAL RELATIONS SEC. 2. (a) There is hereby established a temporary national bipartisan commission to be known as the National Commission on Intergovernmental Relations (hereinafter referred to as the "Commission"), which shall be composed of twelve members as follows: (1) Four appointed by the President of the United States, two of whom shall be officers of the executive branch of the Government, and two private citizens; (2) Four appointed by the President of the Senate, two of whom shall be Members of the Senate, and two private citizens; and (3) Four appointed by the Speaker of the House of Representatives, two of whom shall be Members of the House and two private citizens. (b) Each person appointed as a member shall be experienced with, or have knowledge of, the major problems in the field of intergovernmental relations. Of the members enumerated in paragraphs (1), (2), and (3) of subsection (a), not more than two members in each class shall be from any one political party. Any vacancy in the membership of the Commission shall not affect the Commission's powers, but shall be filled in the same manner in which the original appointment was made. (c) The Commission shall elect a Chairman and a Vice Chairman from among its members. (d) Four members of the Commission shall constitute a quorum. DUTIES OF THE COMMISSION SEC. 3. (a) It shall be the duty of the Commission to submit to the Congress specific recommendations based upon a study of— (1) (A) the past and present relations between the National, State, and local governments of the United States; (B) the past and present allocation of governmental functions and powers among the National, State, and local governments of the United States; (C) governmental functions and powers exercised by two or more such governments, and the distribution of jurisdiction over such functions exercised by each such government; (2) the fiscal relations among the National, State, and local governments with a view of determining the possibilities, and mechanism for achieving, on a continuous basis, consistency in the fiscal policies of the several levels of govermnents. In making such study the Commission shall give particular attention to (A) intergovernmental tax immunities in terms of the problems they create for governments and taxpayers, and means for resolving these problems; (B) revenue sources and means for reducing or eliminating intergovernmental tax competition; and (C) grants-in-aid, tax sharing, and other similar measures for adjusting financial resources to the needs of State and local governments, with a view to proposing guides to the use of such devices and improvements in their operation. (b) The Commission shall submit a final report of its activities, and the results of its studies to the Congress on or before the end of the second fiscal year which commences after the enactment of this Act, and shall cease to exist upon the submission of such final report. POWERS OF THE COMMISSION SEC. 4. (a) The Commission may, in carrying out this Act, hold such hearings, take such testimony, and sit and act at such times and places as the Commission deems advisable. Any member of the Commission may administer oaths or affirmations to witnesses appearing before the Commission. The Commission may delegate the powers conferred by this subsection to any member or to a group of members of the Commission. (b) The Commission is authorized to secure from any department, agency, or independent instrumentality of the executive branch of the Government any information it deems necessary to carry out its functions under this Act; and each such department, agency, and instrumentality is authorized and directed to furnish such information to the Commission, upon request made by the Chairman or Vice Chairman. (c) The Commission shall have the power, without regard to the civil-service laws, to appoint and fix the compensation of an executive secretary, who shall be the chief administrative officer of the Commission, and such other personnel as it deems advisable, but the rates of compensation of such personnel shall not exceed the rates prescribed in the Classification Act of 1949 for comparable duties. COMPENSATION OF MEMBERS OF THE COMMISSION SEC. 5. (a) Members of the Commission who are appointed from among Members of Congress or from the executive branch of the Government shall serve without compensation in addition to that received for their services as Members of Congress or in the executive branch, but shall be reimbursed for travel, subsistence, and other necessary expenses incurred by them in the performance of their duties as members of the Commission. (b) Members of the Commission, other than those to whom subsection (a) is applicable, shall receive compensation at the rate of $50 per day for each day they are engaged in the performance of their duties as members of the Commission and shall be reimbursed for travel, subsistence, and other necessary expenses incurred by them in the performance of their duties as members of the Commission. AUTHORIZATION FOR APPROPRIATIONS SEC. 6. There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this Act. [H. R. 5251, 82d Cong., 1st sess.] A BILL To establish a National Commission on Intergovernmental Relations Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, STATEMENT OF FINDINGS AND POLICY SECTION 1. The Congress hereby finds that in recent years there has been a rapid expansion of the powers, functions, and responsibilities of Federal, State, and local governments; that such expansion has taken place in response to circumstances, needs, and pressures both internal and international but unevenly and without relation to any orderly, integrated, or systematic plan, with the result that serious imbalances now exist with respect to the powers and responsibilities of the several levels of government; and that such imbalances have resulted in overlapping, duplication, inefficiency, and ineffectiveness among the__several levels of government. It is therefore declared to be the policy of the Congress and the purpose of this Act to provide for the restoration and effectuation of a proper balance and relationship among Federal, State, and local governments, in the interest of the people who live under and support them all. ESTABLISHMENT OF THE COMMISSION SEC. 2 In order to carry out the purpose of this Act there is hereby established a temporary national bipartisan commission to be known as the National Commission on Intergovernmental Relations (hereinafter referred to as the "Commission"). ORGANIZATION OF THE COMMISSION SEC. 3. (a) The Commission shall be composed of seventeen members, as follows: (1) Two appointed from the executive branch of the Government by the President of the United States. (2) Four appointed from the Senate by the President of the Senate. (3) Four appointed from the House of Representatives by the Speaker of the House. (4) Three appointed from among State officials by the President of the United States. (5) Two appointed from among county officials by the President of the United States. (6) Two appointed from among municipal officials by the President of the United States. (b) Not more than one from each class of members appointed under paragraphs (1), (5), and (6) shall be from any one political party; and not more than two from each class of members appointed under paragraphs (2), (3), and (4) shall be from the same political party. (c) Any vacancy in the Commission shall not affect its powers, but shall be filled in the same manner in which the original appointment was made. (d) The Commission shall elect a Chairman and a Vice Chairman from among its members. (e) Nine members of the Commission shall constitute a quorum. DUTIES OF THE COMMISSION SEC. 4. (a) It shall be the duty of the Commission (1) to make a comprehensive study, historic and contemporary, of the powers, functions, and jurisdiction of Federal, State, and local governments, and of their relationship to one another; (2) to make a comprehensive study, historic and contemporary, of the tax resources of Federal, State, and local governments, and of their relationship to one another; and (3) to correlate such studies, so as to provide a comprehensive, composite description of the powers, functions, and responsibilities of Federal, State, and local governments, and of their relationship to one another. (b) On the basis of such studies and findings, the Commission shall formulate recommendations designed to bring about— (1) the orderly elimination of overlapping powers, functions, and jurisdiction among the several levels of government; (2) the more orderly, systematic, and equitable allocation of tax resources among Federal, State, and local governments, with a view to providing the greatest possible liaison and correlation between revenue-raising and revenuespending agencies, and to ensure that fiscal resources at each level of government are commensurate with allocated responsibilities at such level; (3) an equitable system of tax immunities among the several levels of government; (4) an orderly, sound, and consistent system for tax-sharing and grant-inaid programs; and (5) a coordinated, efficient, and well-balanced relationship among Federal, State, and local governments which will more fully take into account the needs of the present and provide a flexible and valid framework for future development. (c) The Commission shall make such interim reports to the President and to the Congress as it deems advisable, and shall submit its final report to the Congress not later than March 1, 1953. The final report of the Commission shall propose such constitutional, legislative, and administrative measures as it deems necessary for the effective implementation of its recommendations with respect to each level of government. (d) The Commission shall transmit copies of its final report to the President of the United States, to the Members of Congress, and to the Governors of the several States. TERMINATION OF THE COMMISSION SEC. 5. The Commission shall cease to exist upon the filing of its final report. POWERS OF THE COMMISSION SEC. 6. (a) The Commission may, for the purpose of carrying out the provisions of this Act, hold such hearings and sit and act at such times and places, take such testimony, and require the attendance of such witnesses and the production of such correspondence, books, papers, and documents as it deems advisable. Any member of the Commission may administer oaths or affirmations to witnesses appearing before the Commission. The Commission may delegate the powers conferred by this subsection to any member or group of members of the Commission. |