Reorganization Plan


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Reorganization Plan

A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions.

A reorganization plan must specify the reorganizations that the president deems to be necessary after making an investigation. A plan may provide for

  1. the transfer of the whole or a part of an agency, or of the whole or a part of the functions thereof, to the jurisdiction and control of another agency;
  2. the abolition of all or a part of the functions of an agency, except that no enforcement function or statutory program shall be abolished by the plan;
  3. the consolidation or coordination of the whole or a part of an agency, or of the whole or a part of the functions thereof, with the whole or a part of another agency or the functions thereof;
  4. the consolidation or coordination of a part of an agency or the functions thereof with another part of the same agency or the functions thereof;
  5. the authorization of an officer to delegate any of his or her functions; or
  6. the abolition of the whole or a part of an agency that does not have, or on the taking effect of the reorganization plan will not have, any functions.

No more than three plans may be pending before Congress at one time. In the message conveying a reorganization plan, the president must specify, with respect to each abolition of a function encompassed in the plan, the statutory authority for the exercise of the function. The message must also estimate any reduction or increase in expenditures, itemized whenever practicable, and describe in detail any improvements in management, delivery of federal services, execution of the laws, and increases in efficiency of government operations that, it is expected, will ensue from the reorganization plan.

The president can withdraw the plan at any time prior to the conclusion of 60 calendar days of a continuous session of Congress, following the date on which the plan is submitted to Congress.

Additional contents of a reorganization plan are permitted by federal law. A reorganization plan submitted by the president

  1. may change, in such cases as the president considers necessary, the name of an agency affected by a reorganization and the title of its head and shall designate the name of an agency resulting from a reorganization and the title of its head;
  2. may provide for the appointment and pay of the head and one or more officers of any agency (including an agency resulting from a consolidation or other type of reorganization), if the president finds and, in the message transmitting the plan, declares that by reason of a reorganization made by the plan, the provisions are necessary;
  3. shall provide for the transfer or other disposition of the records, property, and personnel affected by a reorganization;
  4. shall provide for the transfer of such unexpended balances of appropriations, and of other funds, available for use in connection with a function or agency affected by a reorganization, as the president considers necessary by reason of the reorganization for use in connection with the functions affected by the reorganization, or for the use of the agency that shall have the functions after the reorganization plan is effective; and
  5. shall provide for terminating the affairs of an abolished agency.

A reorganization plan can neither provide for nor have the effect of

  1. creating a new executive department, abolishing or transferring an executive department or independent regulatory agency, or all the functions thereof, or consolidating two or more executive departments or two or more independent regulatory agencies, or all the functions thereof;
  2. continuing an agency beyond the period authorized by law for its existence or beyond the time when it would have terminated if the reorganization had not been made;
  3. continuing a function beyond the period authorized by law for its exercise or beyond the time when it would have terminated if the reorganization had not been made;
  • authorizing an agency to exercise a function that is not expressly authorized by law at the time the plan is transmitted to Congress;
  • increasing the term of an office beyond that provided by law for the office; or
  • dealing with more than one logically consistent subject matter.

A reorganization plan ordinarily is effective at the conclusion of the first period of 60 calendar days of continuous session of Congress after the date on which the plan is transmitted to it, unless, between the transmittal date and the end of the 60-day period, either house passes a resonlution declaring that the house does not favor the reorganization plan. A reorganization plan can prescribe that its provisions will be effective at a time later than the date on which the plan otherwise would be effective. In addition, if both houses of Congress have defeated a resolution of disapproval, the provisions can be effective at a time earlier than the expiration of the 60-day period.

An effective reorganization plan is published in the statutes at large, in the same volume as the public laws, and in the Federal Register.

If a statute is enacted, an action taken, a regulation promulgated by an agency, or a function affected by a reorganization before the effective date of the reorganization, it has, except to the extent rescinded, modified, superseded, or made inapplicable by or under authority of law, or by the abolition of a function, the same effect as if the reorganization had not been made. If, however, the statute, regulation, or other action has vested the functions in the agency from which it is removed under the reorganization plan, the function, insofar as it is to be exercised after the plan becomes effective, is regarded as vested in the agency under which the function is placed by the plan.

A suit, action, or other proceeding lawfully instituted by or against the head of an agency or other officer of the United States, in his official capacity, or in relation to the performance of his official duties, does not abate because a reorganization plan becomes effective. If a motion, an application for a court order, or a supplemental petition showing a necessity for a survival of the suit, action, or proceeding is filed at any time within 12 months after the reorganization plan takes effect, the court may allow the suit, action, or proceeding to be maintained by or against the successor of the head or officer under the reorganization achieved by the plan or, if there is no successor, against such agency or officer as the president designates.

The appropriations or portions thereof unexpended because of the operation of the reorganization plan revert to the Treasury Department.

Further readings

Gilmour, Robert S., and Alexis A. Halley. 1994. Who Makes Public Policy?: The Struggle Between Congress and the Executive. New York: Seven Bridges.

Cross-references

Administrative Agency; Administrative Law and Procedure; Executive Branch.

References in periodicals archive ?
It was given 120 days to submit a reorganization plan. But as is common in bankruptcies, it received extensions of the 120-day period.
ETERNIT S.A.--under court-supervised reorganization (B3: ETER3; "Company"), in compliance with Article 157, Paragraph 4 of Federal Law 6,404/76 ("Brazilian Corporation Law") and CVM Instruction 358/2002, and in reference to the Material Facts disclosed by the Company on April 25 and 29, 2019, hereby informs its shareholders and the market that it presented, on the date hereof, in connection with the court-supervised reorganization process of the Company and its subsidiaries as plaintiff in the Court-Supervised Reorganization Process ("Eternit Group"), a new version of its Court-Supervised Reorganization Plan in order to accommodate and meet, as much as possible, the requests for adjustments submitted by bankruptcy creditors during the negotiations.
In connection with the Reorganization Plan, the Company intends to reduce its workforce by approximately 10%.
The Senate Homeland Security and Governmental Affairs Subcommittee on Regulatory Affairs and Federal Management, under the chairmanship of Senator James Lankford (R-OK), today held a hearing on the challenges and opportunities of the proposed government reorganization plan involving the Office of Personnel Management (OPM) and General Services Administration (GSA).
The court has also scheduled a confirmation hearing with regard to the company's reorganization plan for September 30, 2013.
The companies say that if purchase negotiations "are not concluded in a timely manner," Hawker will proceed with its bankruptcy reorganization plan, through which the company hopes to emerge "as a standalone entity with a more focused portfolio of aircraft."
Facing a deadline next week for a reorganization plan to emerge from bankruptcy, Tribune Co.
The Archdiocese of Portland will end up paying more than $104 million to settle 386 clergy sexual abuse claims filed since 1984 if its bankruptcy reorganization plan is approved after hearings that begin Tuesday in Portland.
Delta Sets Hearing On Reorganization Plan. Delta Air Lines set a February 7 hearing to begin seeking approval from creditors to exit bankruptcy as a stand-alone carrier, according to a court document.
-- Winn-Dixie Stores Inc., which has been operating under bankruptcy protection, has won a 70-day extension to file a reorganization plan without interference from creditors.
368(a)(1)(D) reorganization plan, if the liabilities assumed exceed the adjusted basis of the property transferred pursuant to such exchange, such excess is a gain from the sale or exchange of a capital asset or of property that is not a capital asset, as the case may be.
Having been cleared in April of claims that a 4-year-old reorganization plan constituted age discrimination against long-time employee-agents, personal-lines insurer Allstate faces a new suit filed by the U.S.