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Board to serve as chairman and one of the members to serve as vice chairman, who shall act as chairman in the absence or incapacity of the chairman.

(b) Qualifications of members

The members of the Board shall be appointed with due regard to their fitness for the efficient dispatch of the powers and duties vested in and imposed upon the Board by this chapter. Each member of the Board shall be a citizen of the United States and no member of the Board shall have any pecuniary interest in or own any stock in or bonds of any civil aeronautics enterprise. No member of the Board shall engage in any other business, vocation, or employment. (c) Quorum; principal office; seal

Three of the members shall constitute a quorum of the Board. The principal office of the Board shall be in the District of Columbia where its general sessions shall be held, but whenever the convenience of the public or of the parties may be promoted, or delay or expense may be prevented, the Board may hold hearings or other proceedings at any other place. The Board shall have an official seal which shall be judicially noticed and which shall be preserved in the custody of the secretary of the Board.

(Pub. L. 85-726, title II, § 201, Aug. 23, 1958, 72 Stat. 741; Pub. L. 88-426, title III, § 305(16)(A), Aug. 14, 1964, 78 Stat. 424.)

EXPIRATION OF SUBCHAPTER IN CONJUNCTION WITH TERMINATION OF CIVIL AERONAUTICS BOARD

All functions, powers, and duties of the Civil Aeronautics Board were terminated or transferred by section 1551 of this Appendix, effective in part on Dec. 31, 1981, in part on Jan. 1, 1983, and in part on Jan. 1, 1985.

Section 1551(a)(4) of this Appendix provided that this subchapter shall cease to be in effect on Jan. 1, 1985.

REFERENCES IN TEXT

Section 421 of this Appendix, referred to in subsec. (a)(1), was repealed by Pub. L. 85-726, title XIV, § 1401(b), Aug. 23, 1958, 72 Stat. 806.

Reorganization Plan No. IV of 1940, referred to in subsec. (a)(1), is set out in the Appendix to Title 5, Government Organization and Employees.

This chapter, referred to in subsec. (b), was in the original "this Act", meaning Pub. L. 85-726, Aug. 23, 1958, 72 Stat. 731, as amended, known as the Federal Aviation Act of 1958. For complete classification of this Act to the Code, see Short Title note set out under section 1301 of this Appendix and Tables.

AMENDMENTS

1964-Subsec. (a). Pub. L. 88-426 repealed provisions in par. (2) which prescribed the salaries of the Chairman and members of the Board.

EFFECTIVE DATE OF 1964 AMENDMENT Amendment by Pub. L. 88-426 effective the first day of the first pay period which begins on or after July 1, 1964, except to the extent provided in section 501(c) of Pub. L. 88-426, see section 501 of Pub. L. 88-426.

EFFECTIVE DATE

Subchapter effective on the 60th day following the date on which the Administrator of the Federal Avi

ation Agency [now the Federal Aviation Administrator] first appointed under this chapter, qualified and took office [Oct. 31, 1958], see section 1505(2) of Pub. L. 85-726, set out as a note under section 1301 of this Appendix.

TRANSFER OF FUNCTIONS

All functions, powers, and duties of the Civil Aeronautics Board and the Chairman, members, offices, and officers thereof under subchapters VI and VII of this chapter, were transferred to the Secretary of Transportation by Pub. L. 89-670, § 6(d), Oct. 15, 1966, 80 Stat. 937, to be exercised by the National Transportation Safety Board. See sections 1655(d) and 1903(a)(1)(A), (9) of this Appendix.

STATUS OF Members, OFFICERS, AND EMPLOYEES OF CIVIL AERONAUTICS BOARD

Section 1503 of Pub. L. 85-726 provided that: "Nothing in this Act [see Short Title note set out under section 1301 of this Appendix] (1) shall affect the tenure of office of any individual who is a member of the Civil Aeronautics Board at the time title IV of this Act [subchapter IV of this chapter] takes effect, or to nullify any action theretofore taken by the President in designating any such person as chairman or vice chairman of the Board, or (2) subject to section 1502(a) [set out as a note under section 1341 of this Appendix], change the status of the officers and employees under the jurisdiction of the Board at that time."

CROSS REFERENCES

Compensation of chairman and members of Board, see sections 5314 and 5315 of Title 5, Government Organization and Employees.

§ 1322. Officers and employees

(a) Secretary of Board; secretaries and administrative assistants for members; other personnel

The Board is authorized, without regard to the civil-service and classification laws, to appoint and prescribe the duties and fix the compensation of a secretary of the Board, and to fix the compensation of a secretary and an administrative assistant for each member, and subject to the civil-service and classification laws, to select, employ, appoint, and fix the compensation of such officers, employees, attorneys, and agents as shall be necessary to carry out the provisions of this chapter, and to define their authority and duties.

(b) Repealed. Pub. L. 87-367, title I, § 103(2), Oct. 4, 1961, 75 Stat. 787

(c) Temporary personnel

The Board may, from time to time, without regard to the provisions of the civil-service laws, engage for temporary service such duly qualified consulting engineers or agencies, or other qualified persons as are necessary in the exercise and performance of the powers and duties of each, and fix the compensation of such engineers, agencies, or persons without regard to chapter 51 and subchapter III of chapter 53 of title 5, and the expenses of such employment shall be paid out of sums appropri ated for the expenses of the Board.

(d) Cooperation with other Federal agencies

The Board is authorized to use, with their consent, the available services, equipment, personnel, and facilities of other civilian or military agencies and instrumentalities of the Fed

eral Government, on a reimbursable basis when appropriate, and on a similar basis to cooperate with such other agencies and instrumentalities in the establishment and use of services, equipment, and facilities of the Board.

(Pub. L. 85-726, title II, § 202, Aug. 23, 1958, 72 Stat. 741; Pub. L. 87-367, title I, § 103(2), Oct. 4, 1961, 75 Stat. 787.)

EXPIRATION OF SUBCHAPTER IN CONJUNCTION WITH TERMINATION OF CIVIL AERONAUTICS BOARD

All functions, powers, and duties of the Civil Aeronautics Board were terminated or transferred by section 1551 of this Appendix, effective in part on Dec. 31, 1981, in part on Jan. 1, 1983, and in part on Jan. 1, 1985.

Section 1551(a)(4) of this Appendix provided that this subchapter shall cease to be in effect on Jan. 1, 1985.

REFERENCES IN TEXT

The civil-service laws, referred to in subsecs. (a) and (c), are set out in Title 5, Government Organization and Employees. See, particularly, section 3301 et seq. of Title 5.

The classification laws, referred to in subsec. (a), are classified generally to chapter 51 (§ 5101 et seq.) and to subchapter III (§ 5331 et seq.) of chapter 53 of Title 5.

CODIFICATION

"Chapter 51 and subchapter III of chapter 53 of title 5" were substituted, in subsec. (c), for "the Classification Act of 1949, as amended" on authority of Pub. L. 89-554, § 7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5, Government Organization and Employees.

AMENDMENTS

1961-Subsec. (b). Pub. L. 87-367 repealed provision which authorized the Civil Aeronautics Board to place eight additional positions in grades 16, 17, and 18 of the General Schedule of the Classification Act of 1949.

SAVINGS CLAUSE

Positions existing prior to Oct. 4, 1961, compensation and appointments thereto unaffected by changes made by Pub. L. 87-367, and positions in grades 16, 17, and 18 of the General Schedule of the Classification Act of 1949 prior to Oct. 4, 1961, to remain in respective grades, until appropriate action was taken under title I of Pub. L. 87-367, see section 104 of Pub. L. 87-367.

PLACEMENT IN SALARY GRADE OF CERTAIN POSITIONS

Section 103(6) of Pub. L. 87-367 repealed such part of section 301 of Pub. L. 85-469, title III, June 25, 1958, 72 Stat. 237, which authorized the Chairman of the Civil Aeronautics Board to place one additional position in grade 18, two in grade 17 and seven in grade 16 of the General Schedule of the Classification Act of 1949.

§ 1323. Authorization of expenditures and travel (a) Expenditures

The Board is empowered to make such expenditures at the seat of government and elsewhere as may be necessary for the exercise and performance of the powers and duties vested in and imposed upon the Board by law, and as from time to time may be appropriated for by Congress, including expenditures for (1) rent

and personal services at the seat of government and elsewhere; (2) travel expenses; (3) office furniture, equipment and supplies, lawbooks, newspapers, periodicals, and books of reference (including the exchange thereof); (4) printing and binding; (5) membership in and cooperation with such organizations as are related to, or are part of, the civil-aeronautics industry or the art of aeronautics in the United States or in any foreign country; (6) making investigations and conducting studies in matters pertaining to aeronautics; and (7) acquisition (including exchange), operation, and maintenance of passen. ger-carrying automobiles and aircraft, and such other property as is necessary in the exercise and performance of the powers and duties of the Board: Provided, That no aircraft or motor vehicle purchased under the provisions of this section, shall be used otherwise than for official business.

(b) Travel

Travel by personnel of the United States Government on commercial aircraft, domestic or foreign, including travel between airports and centers of population or posts of duty when incidental to travel on commercial aircraft, shall be allowed at public expense when authorized or approved by competent authority, and transportation requests for such travel may be issued upon such authorizations. Such expense shall be allowed without regard to comparative costs of transportation by aircraft with other modes of transportation.

(c) Acceptance and disposal of gifts and donations

The Board, on behalf of the United States, is authorized to accept any gift or donation of money or personal property, or of services, where appropriate, for the purposes of its functions under subchapter VII of this chapter. For adequate compensation, by sale, lease, or otherwise, the Board, on behalf of the United States, is authorized to dispose of any such personal property or interest therein: Provided, That such disposition shall be made in accordance with the Federal Property and Administrative Services Act of 1949, as amended [40 U.S.C. 471 et seq.).

(Pub. L. 85-726, title II, § 203, Aug. 23, 1958, 72 Stat. 742; Pub. L. 87-810, § 5, Oct. 15, 1962, 76 Stat. 921.)

EXPIRATION OF SUBCHAPTER IN CONJUNCTION WITH TERMINATION OF CIVIL AERONAUTICS BOARD

All functions, powers, and duties of the Civil Aeronautics Board were terminated or transferred by section 1551 of this Appendix, effective in part on Dec. 31, 1981, in part on Jan. 1, 1983, and in part on Jan. 1, 1985.

Section 1551(a)(4) of this Appendix provided that this subchapter shall cease to be in effect on Jan. 1, 1985.

REFERENCES IN TEXT

The Federal Property and Administrative Services Act of 1949, as amended, referred to in subsec. (c), is act June 30, 1949, ch. 288, 63 Stat. 377, as amended. Provisions of that act relating to disposal of government property are classified to chapter 10 (§ 471 et

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seq.) of Title 40. Public Buildings, Property, and Works. For complete classification of this Act to the Code, see Short Title note set out under section 471 of Title 40 and Tables.

AMENDMENTS

1962-Subsec. (c). Pub. L. 87-810 added subsec. (c).

§ 1324. General powers and duties of the Board (a) Performance of acts; conduct of investigations; orders, rules, regulations, and procedure

The Board is empowered to perform such acts, to conduct such investigations, to issue and amend such orders, and to make and amend such general or special rules, regulations, and procedure, pursuant to and consistent with the provisions of this chapter, as it shall deem necessary to carry out the provisions of, and to exercise and perform its powers and duties under, this chapter.

(b) Cooperation with State aeronautical agencies

The Board is empowered to confer with or to hold joint hearings with any State aeronautical agency, or other State agency, in connection with any matter arising under this chapter within its jurisdiction, and to avail itself of the cooperation, services, records, and facilities of such State agencies as fully as may be practicable in the administration and enforcement of this chapter.

(c) Exchange of information with foreign governments

The Board is empowered to exchange with foreign governments, through appropriate agencies of the United States, information pertaining to aeronautics.

(d) Report of proceedings and investigations; publication; evidence

Except as may be otherwise provided in this chapter, the Board shall make a report in writing in all proceedings and investigations under this chapter in which formal hearings have been held, and shall state in such report its conclusions together with its decision, order, or requirement in the premises. All such reports shall be entered of record and a copy thereof shall be furnished to all parties to the proceeding or investigation. The Board shall provide for the publication of such reports, and all other reports, orders, decisions, rules, and regulations issued by it under this chapter in such form and manner as may be best adapted for public information and use. Publications purporting to be published by the Board shall be competent evidence of the orders, decisions, rules, regulations, and reports of the Board therein contained in all courts of the United States, and of the several States, Territories, and possessions thereof, and the District of Columbia, without further proof or authentication thereof.

(Pub. L. 85-726, title II, § 204, Aug. 23, 1958, 72 Stat. 743.)

EXPIRATION OF SUBCHAPTER IN CONJUNCTION WITH TERMINATION OF CIVIL AERONAUTICS BOARD

All functions, powers, and duties of the Civil Aeronautics Board were terminated or

transferred by section 1551 of this Appendix, effective in part on Dec. 31, 1981, in part on Jan. 1, 1983, and in part on Jan. 1, 1985.

Section 1551(a)(4) of this Appendix provided that this subchapter shall cease to be in effect on Jan. 1, 1985.

TRANSFER OF FUNCTIONS

All functions, powers, and duties of the Civil Aeronautics Board and the Chairman, members, offices, and officers thereof under subchapters VI and VII of this chapter, were transferred to the Secretary of Transportation by Pub. L. 89-670, § 6(d), Oct. 15, 1966, 80 Stat. 937, to be exercised by the National TransporSee tation Safety Board. sections 1655(d) and 1903(a)(1)(A), (9) of this Appendix.

GUARANTY OF LOANS FOR PURCHASE OF AIRCRAFT AND EQUIPMENT

Pub. L. 85-307, Sept. 7, 1957, 71 Stat. 629, as amended by Pub. L. 86-3, § 21, Mar. 18, 1959, 73 Stat. 13; Pub. L. 86-70, § 39, June 25, 1959, 73 Stat. 150; Pub. L. 86-624, § 37, July 12, 1960, 74 Stat. 421; Pub. L. 87-820, §§ 1-7, Oct. 15, 1962, 76 Stat. 936; Pub. L. 90-568, §§ 1, 2, Oct. 12, 1968, 82 Stat. 1003; Pub. L. 92-556, Oct. 25, 1972, 86 Stat. 1170; Pub. L. 95-504, § 42, Oct. 24, 1978, 92 Stat. 1748, provided:

"[SEC. 1. DECLARATION OF POLICY]. That it is hereby declared to be the policy of Congress, in the interests of the commerce of the United States, the postal service [now United States Postal Service], and the national defense to promote the development of local, feeder, and short-haul air transportation and to promote the development of local, feeder, and short-haul charter air transportation of cargo. In furtherance of this policy it is deemed necessary and desirable that provision be made to assist certain air carriers, charter air carriers, commuter air carriers, and intrastate air carriers engaged in such air transportation by providing governmental guaranties of loans to enable them to purchase aircraft suitable for such transportation on reasonable terms.

"SEC. 2. [DEFINITIONS). As used in this Act

"(1) aircraft purchase loan' means any loan, or commitment in connection therewith, made for the purchase of commercial transport aircraft, including spare parts normally associated therewith;

"(2) 'air carrier' means any air carrier holding a certificate of public convenience and necessity issued by the Civil Aeronautics Board under section 401(d)(1) of the Federal Aviation Act of 1958 [49 App. U.S.C. 1371(d)(1)];

"(3) 'charter air carrier' has the meaning given such term in section 101(14) of the Federal Aviation Act of 1958 [49 App. U.S.C. 1301(14)];

"(4) 'charter air transportation' has the meaning given such term in section 101(15) of the Federal Aviation Act of 1958 [49 App. U.S.C. 1301(15)];

"(5) 'commuter air carrier' means any air carrier operating pursuant to section 416(b)(3)[(4)] of the Federal Aviation Act of 1958 [49 App. U.S.C. 1386(b)(4)] who operates at least five round trip flights per week between one pair of points in accordance with published flight schedules;

"(6) 'intrastate air carrier' means any citizen of the United States who undertakes, whether directly or indirectly or by a lease or any other arrangement, to engage primarily in intrastate air transportation (as such term is defined in section 101(26) of the Federal Aviation Act of 1958) [49 App. U.S.C. 1301(26)]; and

"(7) 'Secretary' means the Secretary of Transportation.

"SEC. 3. [ELIGIBLE LENDERS]. The Secretary is authorized to guarantee any lender against loss of principal or interest on any aircraft purchase loan made by such lender to

"(1) any air carrier whose certificate (A) authorizes such air carrier to provide local or feeder air service, (B) authorizes scheduled passenger operations the major portion of which are conducted within the State of Hawaii, (C) authorizes operations (the major portion of which is conducted either within Alaska or between Alaska and the forty-eight contiguous States), within the State of Alaska (including service between Alaska and the forty-eight contiguous States, and between Alaska and adjacent Canadian territory), or (D) authorizes metropolitan helicopter service,

"(2) any charter air carrier for the purchase of any all-cargo nonconvertible aircraft,

"(3) any commuter air carrier, or

"(4) any intrastate air carrier.

Such guarantee shall be made in such form, on such terms and conditions, and pursuant to such regulations, as the Secretary deems necessary and which are not inconsistent with the provisions of this Act.

"SEC. 4. [RESTRICTIONS]. (a) Subject to subsection (b) of this section, no guaranty shall be made

"(1) extending to more than the unpaid interest and 90 percent of the unpaid principal of any loan; "(2) on any loan or combination of loans for more than 90 percent of the purchase price of the aircraft, including spare parts, to be purchased therewith;

"(3) on any loan whose terms permit full repayment more than 15 years after the date thereof;

"(4) wherein the total face amount of such loan, and of any other loans to the same air carrier, charter air carrier, commuter air carrier, or intrastate air carrier or corporate predecessor of such air carrier, charter air carrier, commuter air carrier, or intrastate air carrier guaranteed and outstanding under the terms of this Act exceeds $100,000,000;

"(5) unless the Secretary finds that, without such guaranty, in the amount thereof, the air carrier, charter air carrier, commuter air carrier, or intrastate air carrier would be unable to obtain necessary funds for the purchase of needed aircraft on reasonable terms;

"(6) unless the Secretary finds that the aircraft to be purchased with the guaranteed loan is needed to improve the service and efficiency of operation of the air carrier, charter air carrier, commuter air carrier, or intrastate air carrier;

"(7) unless the Secretary finds that the prospective earning power

"(A) of the applicant air carrier or charter air carrier, together with the character and value of the security pledged, furnish (i) reasonable assurances of the applicant's ability to repay the loan within the time fixed therefor, and (ii) reasonable protection to the United States; and

"(B) of the applicant commuter air carrier or intrastate air carrier, together with the character and value of the security pledged, furnish (i) reasonable assurances of the applicant's ability and intention to repay the loan within the time fixed therefor, to continue its operations as a commuter air carrier or intrastate air carrier, and to the extent found necessary by the Secretary, to continue its operations as a commuter air carrier or intrastate air carrier between the same route or routes being operated by such applicant at the time of the loan guarantee, and (ii) reasonable protection to the United States; and

"(8) on any loan or combination of loans for the purchase of any new turbojet-powered aircraft which does not comply with the noise standards prescribed for new subsonic aircraft in regulations issued by the Secretary acting through the Administrator of the Federal Aviation Administration (14) CFR part 36), as such regulations were in effect on January 1, 1977.

"(b) No guaranty shall be made by the Secretary under subsection (a) of this section on any loan for the purchase of any all-cargo nonconvertible aircraft by any charter air carrier in an amount which, togeth

er with any other loans guaranteed and outstanding under this Act to such charter air carrier, or corporate predecessor of such charter air carrier, would result in the ratio of the total face amount of such loans to $100,000,000 exceeding the ratio of the amount of charter air transportation of such charter air carrier provided to medium, small, and non-hub airports during the twelve-month period preceding the date on which the application for such guaranty is made by such charter air carrier to the total amount of charter air transportation of such charter air carrier during such twelve-month period.

"SEC. 5. [FEE]. The Secretary shall prescribe and collect from the lending institution a reasonable guaranty fee in connection with each loan guaranteed under this Act.

"SEC. 6. [COOPERATION WITH OTHER AGENCIES). (a) To permit him to make use of such expert advice and services as he may require in carrying out the provisions of this Act, the Secretary may use available services and facilities of other agencies and instrumentalities of the Federal Government with their consent and on a reimbursable basis.

"(b) Departments and agencies of the Federal Government shall exercise their powers, duties, and func tions in such manner as will assist in carrying out the objectives of this Act.

"(c) The Secretary shall make available to the Comptroller General of the United States such information with respect to the loan guaranty program under this Act as the Comptroller General may require to carry out his duties under the Budget and Accounting Act, 1921 [31 U.S.C. 1101 et seq.).

"SEC. 7. [RECEIPTS, AUTHORIZATION OF APPROPRIATION, EXPENSES). (a) Receipts under this Act shall be credited to miscellaneous receipts of the Treasury.

"(b) Payments to lenders required as a consequence of any guaranty under this Act may be made from funds which are hereby authorized to be appropriated to the Department of Commerce for that purpose. "(c) Administrative expenses under this Act shall be paid from appropriations to the Department of Commerce for administrative expenses.

"SEC. 8. [TERMINATION DATE]. The authority of the Secretary under section 3 of this Act shall terminate five years after the date of enactment of this section [Oct. 24, 1978]."

Provisions respecting loans and financial aid inapplicable to guaranty of loans by the Secretary under Pub. L. 85-307, set out above, but consultation of the Secretary with and consideration of views and recom. mendations of the Board in making the guarantees, see section 1380 of this Appendix.

GUARANTY OF LOANS FOR PURCHASE OF AIRCRAFT AND
EQUIPMENT; ORDERS, ETC., EFFECTIVE UNTIL TERMI
NATED; PENDING PROCEEDINGS AND PRIOR SUITS UN-
AFFECTED; TRANSFER OF PERSONNEL AND EQUIPMENT
Pub. L. 87-820, §§ 9, 10, Oct. 15, 1962, 76 Stat. 936,
provided:

"SEC. 9. (a) All orders, determinations, rules, regulations, permissions, approvals, agreements, rulings, directives, and privileges which have been issued, made, or granted, or allowed to become effective, by the Civil Aeronautics Board, or any court of competent jurisdic tion, under any provision of law amended by this Act [amending note set out above and section 1380 of this Appendix], or in the exercise of duties, powers, or functions which, under this Act, are vested in the Secretary of Commerce [now Secretary of Transportation], and which are in effect on the date of enactment of this Act [Oct. 15, 1962] shall continue in effect according to their terms until modified, termi nated, superseded, set aside, or repealed by the Secre tary of Commerce [now Secretary of Transportation] or by any court of competent jurisdiction, or by oper ation of law.

"(b) The provisions of this Act [amending note set out above and section 1380 of this Appendix] shall not

affect any proceedings pending before the Civil Aeronautics Board on the date of enactment of this Act [Oct. 15, 19621; but any such proceedings shall be continued before the Secretary of Commerce [now Secretary of Transportation], orders issued therein, and payments made pursuant to such orders, as if this Act had not been enacted; and orders issued in any such proceedings shall continue in effect until modified, terminated, superseded, or repealed by the Secretary of Commerce, or by operation of law.

"(c) The provisions of this Act [amending note set out above and section 1380 of this Appendix] shall not affect suits commenced prior to the date of its enactment [Oct. 15, 1962]; and all such suits shall be continued by the Secretary of Commerce [now Secretary of Transportation], proceedings therein had, appeals therein taken, and judgments therein rendered, in the same manner and with the same effect as if this Act had not been enacted. No suit, action, or other proceeding lawfully commenced by or against the Civil Aeronautics Board or officer of the United States, in relation to the discharge of official duties, shall abate by reason of any transfer of authority, power, or duties from the Board or officer to the Secretary of Commerce [now Secretary of Transportation], under the provisions of this Act, but the court upon a motion or a supplemental petition filed at any time within twelve months after such transfer, showing the necessity for a survival of such suit, action, or other proceeding to obtain a settlement of the questions involved, may allow the same to be maintained by or against the Secretary of Commerce (now Secretary of Transportation].

"SEC. 10. (a) The officers, employees, and property (including office equipment and official records) of the Civil Aeronautics Board which the Bureau of the Budget [now Office of Management and Budget], after consultation with the Board, shall determine to have been employed by the Board in the exercise and performance of those powers and duties vested in and imposed upon it by the Act of September 7, 1957 (71 Stat. 629), as in effect on the day before the date of enactment of this Act [Oct. 15, 1962], and which are vested by this Act [amending note set out above and section 1380 of this Appendix] in the Secretary of Commerce [now Secretary of Transportation], shall be transferred to the Department of Commerce [now Department of Transportation] upon such date or dates as the Bureau of the Budget [now Office of Management and Budget] shall specify. The transfer of personnel under this section shall be without reduction in classified or compensation, except that this requirement shall not operate after the end of the fiscal year during which such transfer is made to prevent the adjustment of classification or compensation to conform to the duties to which such transferred personnel may be assigned.

"(b) All records transferred to the Secretary of Commerce [now Secretary of Transportation] under this Act [amending note set out above and section 1380 of this Appendix] shall be available for use by him to the same extent as if such records were originally records of the Secretary."

REORGANIZATION PLAN NO. 3 OF 1961

Eff. July 3, 1961, 26 F.R. 5989, 75 Stat. 837 Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, May 3, 1961, pursuant to the provisions of the Reorganization Act of 1949, as amended [see 5 U.S.C. 901 et seq.).

CIVIL AERONAUTICS BOARD

SECTION 1. AUTHORITY TO DELEGATE

(a) In addition to its existing authority, the Civil Aeronautics Board, hereinafter referred to as the "Board", shall have the authority to delegate, by published order or rule, any of its functions to a division

11-617 VOL. 18 0-84-74

of the Board, an individual Board member, a hearing examiner, or an employee or employee board, including functions with respect to hearing, determining, ordering, certifying, reporting or otherwise acting as to any work, business, or matter: Provided, however, That nothing herein contained shall be deemed to supersede the provisions of section 7(a) of the Administrative Procedure Act (60 Stat. 241), as amended [see 5 U.S.C. 556].

(b) With respect to the delegation of any of its functions, as provided in subsection (a) of this section, the Board shall retain a discretionary right to review the action of any such division of the Board, individual Board member, hearing examiner, employee or employee board, upon its own initiative or upon petition of a party to or an intervenor in such action, within such time and in such manner as the Board shall by rule prescribe: Provided, however, That the vote of a majority of the Board less one member thereof shall be sufficient to bring any such action before the Board for review.

(c) Should the right to exercise such discretionary review be declined, or should no such review be sought within the time stated in the rules promulgated by the Board, then the action of any such division of the Board, individual Board member, hearing examiner, employee or employee board, shall, for all purposes, including appeal or review thereof, be deemed to be the action of the Board.

SEC. 2. TRANSFER OF FUNCTIONS TO THE CHAIRMAN

In addition to the functions transferred by the provisions of Reorganization Plan No. 13 of 1950 (64 Stat. 1266) [5 App. U.S.C.], there are hereby transferred from the Board to the Chairman of the Board the functions of the Board with respect to the assignment of Board personnel, including Board members, to perform such functions as may have been delegated by the Board to Board personnel, including Board members, pursuant to section 1 of this reorganization plan.

MESSAGE OF THE PRESIDENT

To the Congress of the United States:

I transmit herewith Reorganization Plan No. 3 of 1961, prepared in accordance with the Reorganization Act of 1949, as amended, and providing for reorganization in the Civil Aeronautics Board.

This Reorganization Plan No. 3 of 1961 follows upon my message of April 13, 1961, to the Congress of the United States. It is believed that the taking effect of the reorganizations included in this plan will provide for greater efficiency in the dispatch of the business of the Civil Aeronautics Board.

The plan provides for greater flexibility in the handling of the business before the Board, permitting its disposition at different levels so as better to promote its efficient dispatch. Thus matters both of an adjudicatory and regulatory nature may, depending upon their importance and their complexity, be finally consummated by divisions of the Board, individual Board members, hearing examiners, and, subject to the provisions of section 7(a) of the Administrative Procedure Act of 1946 (60 Stat. 241), by other employees. This will relieve the Board members from the necessity of dealing with many matters of lesser importance and thus conserve their time for the consideration of major matters of policy and planning. There is, however, reserved to the Board as a whole the right to review any such decision, report, or certification either upon its own initiative or upon the petition of a party or intervenor demonstrating to the satisfaction of the Board the desirability of having the matter reviewed at the top level.

Provision is also made, in order to maintain the fundamental bipartisan concept explicit in the basic statute creating the Board, for mandatory review of any such decision, report, or certification upon the vote of a majority of the Board less one member.

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