The Montana Commission on Executive Reorganization was created by the 41st Montana Legislative Assembly in 1969. During the session the legislature also passed a bill proposing an amendment to the state's Constitution to be submitted to the electorate which would permit the reorganization of executive agencies from the then unknown number to not more than 20. It then became the primary function to the Commission on Executive Reorganization to develop a plan for a more streamlined executive branch, yet one which would remain flexible enough to adjust to future exigencies.

The Commission was composed of Governor Forrest H. Anderson (and, following the 1970 gubernatorial election, Governor Thomas L. Judge) four senators and four representatives. Chaired by the governor, the Commission held its first meeting on April 28, 1969, though a staff was not selected until late August. The Commission hired William F. "Duke" Crowley as its director, George L. Bousliman as deputy director, and Evan D. Barrett as administrative assistant. The Commission's staff immediately set out to compile, assisted by a contracted computer search of Montana codes, the first comprehensive listing of executive agencies since statehood. It was discovered that there existed a total of 161 active or inactive independent executive agencies. The governor was then able to abolish by executive order those agencies which had been given no definite term of existence, had performed the functions for which they were created, and had exhausted their reason for being.

A chart of the executive branch was created, demonstrating, among other things, that there were only ten agencies headed by single executives appointed by the governor. The staff carried out a survey of all executive branch agencies to discover their actual functions and responsibilities. After the completion of the survey it was then possible to devise an executive branch composed of only 19 departments, 13 of which were to be headed by single executives appointed by, responsible to, and serving at the pleasure of the governor. The Commission then constructed a plan of implementation and recodification necessary to make the reorganization a reality. A final report was submitted to the 42nd Montana Legislative Assembly in November 1970. After extensive testimony and debate the Executive Reorganization Act of 1971 (Chapter 272, Laws of Montana, 1971; Title 82A, R.C.M. 1947) was passed abolishing certain agencies and transferring their powers and duties. In addition the recodification of statutes to conform with the executive reorganization changes were contained in a total of 18 bills (of about 2500 pages) introduced in both the House and the Senate.

This effort was the result of two years of work and an expenditure of $150,000. The Commission on Executive Reorganization continued its work into 1972. Following the passage of the Executive Reorganization Act it was yet necessary to amend numerous statutes to accurately reflect departmental changes as, in some cases, the names of agencies appeared in statute even though the act effectively abolished those agencies. This work was carried out under the auspices of the Executive Reorganization Office through June 1973, at which time the staff was transferred to the Government Operations Unit directed by Richard L. Llewellyn. The job of recodification was completed in 1974.