B-114827, MAY 20, 1966, 45 COMP. GEN. 713

B-114827, MAY 20, 1966, 45 COMP. GEN. 713

APPROPRIATIONS - FISCAL YEAR - AVAILABILITY BEYOND - AUTHORIZATION V. APPROPRIATION THE PROVISION UNDER THE HEADING "FEDERAL HOME LOAN BANK BOARD" IN THE SECOND SUPPLEMENTAL APPROPRIATION ACT, 1966, PROVIDING THAT THE $13,155,000 MADE AVAILABLE IN THE INDEPENDENT OFFICES APPROPRIATION ACT, 1966, FOR THE NONADMINISTRATIVE EXPENSES OF SUPERVISING AND EXAMINING FEDERAL AND STATE CHARTERED BANKS DURING FISCAL YEAR 1966 SHALL INCLUDE NONADMINISTRATIVE EXPENSES NOT TO EXCEED $500,000 TO CONDUCT SPECIAL STUDIES OF ANY TIME DURATION BUT NOT BEYOND DECEMBER 31, 1968 OF THE SAVINGS AND LOAN INDUSTRY HAD THE EFFECT OF MAKING THE $500,000 FOR THE SPECIAL STUDIES AVAILABLE FOR OBLIGATION AFTER 1966, SUBJECT TO THE DECEMBER 31, 1968 TIME LIMITATION, OUT OF THE $13,155,000 APPROPRIATED TO THE BOARD FOR FISCAL YEAR 1966 NONADMINISTRATIVE EXPENSES, EXPENDITURES FOR THE SPECIAL STUDIES TO BE LIMITED TO THE AMOUNT PROVIDED, AND THE DOLLAR LIMITATION UNDER THE INDEPENDENT OFFICES APPROPRIATION ACT, 1966, TO BE APPLICABLE TO THE STUDY PROVISION.

TO THE CHAIRMAN, FEDERAL HOME LOAN BANK BOARD, MAY 20, 1966:

YOUR LETTER OF MAY 17, 1966, PRESENTS CERTAIN QUESTIONS, WHICH ARE SET FORTH BELOW, WITH RESPECT TO THE FOLLOWING PROVISION APPEARING UNDER THE HEADING "FEDERAL HOME LOAN BANK BOARD," SUBHEADING "LIMITATION ON ADMINISTRATIVE AND NONADMINISTRATIVE EXPENSES," IN THE SECOND SUPPLEMENTAL APPROPRIATION ACT, 1966, PUBLIC LAW 89-426, 80 STAT. 141, 143, APPROVED MAY 13, 1966:

INCLUDED IN THE EXPENSES OF ANY FUNCTIONS OF SUPERVISION WHICH SHALL BE CONSIDERED AS NONADMINISTRATIVE EXPENSES, AS STATED IN THE THIRD PROVISO UNDER THIS HEAD IN THE INDEPENDENT OFFICES APPROPRIATION ACT, 1966, ARE EXPENSES (NOT TO EXCEED $500,000) NECESSARY FOR SPECIAL STUDIES OF THE SAVINGS AND LOAN INDUSTRY TO BE COMPLETED BY DECEMBER 31, 1968, INCLUDING SERVICES AS AUTHORIZED BY SECTION 15 OF THE ACT OF AUGUST 2, 1946 (5 U.S.C. 55A), WHICH MAY BE OF ANY DURATION NOT BEYOND SUCH COMPLETION DATE.

THE THIRD AND LAST PROVISOS APPEARING UNDER THE HEADING "FEDERAL HOME LOAN BOARD," SUBHEADING ,LIMITATION ON ADMINISTRATIVE AND NONADMINISTRATIVE EXPENSES, FEDERAL HOME LOAN BANK BOARD," IN THE INDEPENDENT OFFICES APPROPRIATION ACT, 1966, PUBLIC LAW 89-128, 79 STAT. 520, 540, READ AS FOLLOWS:

PROVIDED FURTHER, THAT EXPENSES OF ANY FUNCTIONS OF SUPERVISION (EXCEPT OF FEDERAL HOME-LOAN BANKS) VESTED IN OR EXERCISABLE BY THE BOARD SHALL BE CONSIDERED AS NONADMINISTRATIVE EXPENSES: * * * PROVIDED FURTHER, THAT THE NONADMINISTRATIVE EXPENSES (EXCEPT THOSE INCLUDED IN THE FIRST PROVISO HEREOF) FOR THE SUPERVISION AND EXAMINATION OF FEDERAL AND STATE CHARTERED INSTITUTIONS (OTHER THAN SPECIAL EXAMINATIONS DETERMINED BY THE BOARD TO BE NECESSARY) SHALL NOT EXCEED $13,155,000 FOR NOT TO EXCEED 1,000 POSITIONS.

UNDER THIS PROVISION OF LAW THE BOARD MAY NOT EXPEND MORE THAN $13,155,000 FOR NONADMINISTRATIVE EXPENSES DURING FISCAL YEAR 1966.

YOU ASK WHETHER OBLIGATIONS MAY BE INCURRED UNDER THE STUDY PROVISION OF PUBLIC LAW 89-426 AFTER THE CLOSE OF THE FISCAL YEAR 1966, SUBJECT OF COURSE TO THE LIMITATION THAT THE STUDY BE COMPLETED BY DECEMBER 31, 1968. YOU STATE THAT OBVIOUSLY THE FEDERAL HOME LOAN BANK BOARD (BOARD) COULD NOT DO MORE THAN GET THE STUDY UNDER WAY IN THE SHORT PERIOD REMAINING OF THE FISCAL YEAR 1966, AND THE BOARD BELIEVES THAT THIS IS A PERTINENT FACTOR FOR CONSIDERATION IN THE INTERPRETATION OF THE STUDY PROVISION.

IF OUR ANSWER TO THE ABOVE QUESTION IS IN THE AFFIRMATIVE, YOU ASK TO WHAT EXTENT THE DOLLAR LIMITATION OF $13,155,000 IN THE LAST PROVISO IN THE PROVISION OF THE INDEPENDENT OFFICES APPROPRIATION ACT, 1966, SET FORTH ABOVE, IS APPLICABLE WITH RESPECT TO THIS STUDY PROVISION. IF WE CONCLUDE THAT THIS DOLLAR LIMITATION IS APPLICABLE TO THE STUDY PROVISION, YOU ASK WHETHER IT IS APPLICABLE TO OBLIGATIONS INCURRED AFTER (AS WELL AS BEFORE) THE CLOSE OF THE FISCAL YEAR 1966. IF NOT, YOU INQUIRE AS TO WHETHER THE CORRESPONDING LIMITATION IN THE INDEPENDENT OFFICES APPROPRIATION ACT, 1967, IF ENACTED IN THE FORM NOW PENDING IN H.R. 14921, 89TH CONGRESS, WOULD BE AVAILABLE FOR OBLIGATIONS SO INCURRED DURING THE FISCAL YEAR 1967.

YOU STATE THAT UNLESS WE ADVISE THAT THE STUDY PROVISION IS AVAILABLE FOR OBLIGATION AFTER THE CLOSE OF THE FISCAL YEAR 1966, AND FURTHER ADVISE EITHER THAT THE $13,155,000 LIMITATION AFORESAID IS NOT APPLICABLE TO SAID PROVISION OR THAT IT IS AVAILABLE FOR ALL OBLIGATIONS INCURRED UNDER THE STUDY PROVISION, IT WILL BE NECESSARY FOR THE BOARD TO SEEK, WITH APPROPRIATE EXECUTIVE CLEARANCE, AN AMENDMENT TO H.R. 14921 AFORESAID.

AS A MATTER OF INFORMATION YOU POINT OUT THAT RECEIPTS OF THE FEDERAL HOME LOAN BANK BOARD, WITH CERTAIN EXCEPTIONS NOT HERE MATERIAL, WERE FORMERLY REQUIRED, BY A PROVISION WHICH WAS ADDED TO SECTION 19 OF THE FEDERAL HOME LOAN BANK ACT BY SECTION 9 OF THE ACT OF MAY 28, 1935, 49 STAT. 293, 295, 12 U.S.C. 1439, TO BE DEPOSITED IN THE TREASURY OF THE UNITED STATES.

HOWEVER, YOU STATE THAT PERMANENT LEGISLATION ENACTED AS THE THIRD PROVISION OF THE ITEM UNDER THE HEAD "FEDERAL HOME LOAN BANK ADMINISTRATION" IN THE INDEPENDENT OFFICES APPROPRIATION ACT, 1944, APPROVED JUNE 26, 1943, 57 STAT. 169, 186, 12 U.S.C. 1439A, PROVIDED THAT SUCH FUNDS "SHALL BE DEPOSITED WITH THE TREASURER OF THE UNITED STATES IN A SPECIAL DEPOSIT ACCOUNT AND SHALL BE AVAILABLE FOR EXPENDITURE FOR ALL PURPOSES OF THE FEDERAL HOME LOAN BANK BOARD, SUBJECT TO SUBSECTIONS (A) AND (B) OF SECTION 7 OF THE FIRST DEFICIENCY APPROPRIATION ACT, FISCAL YEAR 1936, 49 STAT. 1597, 1647, 15 U.S.C. 712A (A) AND (B), AND THAT SAID SUBSECTIONS (A) AND (B) PROVIDED THAT THE FEDERAL HOME LOAN BANK BOARD (AND OTHER NAMED AGENCIES) SHOULD NOT, AFTER JUNE 30, 1937, INCUR ANY OBLIGATIONS FOR ADMINISTRATIVE EXPENSES EXCEPT PURSUANT TO AN ANNUAL APPROPRIATION SPECIFICALLY THEREFORE, BUT IMPOSED NO CORRESPONDING LIMITATION WITH RESPECT TO NONADMINISTRATIVE EXPENSES. YOU ADVISE THAT THE ACTUAL PRACTICE AS TO ALL RECENT FISCAL YEARS HAS BEEN FOR THE CONGRESS TO ENACT (ORDINARILY IN THE INDEPENDENT OFFICES APPROPRIATION ACT FOR THE PARTICULAR FISCAL YEAR) A PROVISION WHICH CONSTITUTES AN AUTHORIZATION AND LIMITATION (AS DISTINGUISHED FROM AN APPROPRIATION) FOR ADMINISTRATIVE EXPENSES OF THE BOARD FOR THE FISCAL YEAR, APPENDING TO SUCH PROVISION VARIOUS PROVISOS PROVIDING THAT SPECIFIED CATEGORIES OF EXPENDITURES SHALL BE CONSIDERED AS NONADMINISTRATIVE EXPENSES.

THE LEGISLATIVE HISTORY OF THE QUOTED APPROPRIATION PROVISION FROM PUBLIC LAW 89-426 DISCLOSES THAT IT RESULTED FROM A FLOOR AMENDMENT MADE IN THE SENATE IN THE PASSAGE OF THE BILL (H.R. 14012) WHICH BECAME PUBLIC LAW 89- 426 (89 CONG. REC. 8681 (APRIL 27, 1966). THE FLOOR AMENDMENT READ AS ABOVE, EXCEPT THAT THE LANGUAGE "/NOT EXCEEDING $500,000)" DID NOT APPEAR THEREIN. IN PRESENTING THE AMENDMENT, SENATOR PASTORE, THE FLOOR MANAGER OF THE BILL, SUBMITTED (AS APPEARS AT THE ABOVE-CITED PAGE OF THE CONGRESSIONAL RECORD) A MEMORANDUM OF THE BOARD STATING, AMONG OTHER THINGS, THAT NO APPROPRIATION OF FUNDS WAS INVOLVED "BUT SIMPLY THE INCLUSION OF THIS STUDY UNDER EXISTING LIMITATIONS ON EXPENDITURES OF FUNDS AVAILABLE TO THE BOARD FOR NONADMINISTRATIVE EXPENSES.' ALSO, IN PRESENTING THE AMENDMENT, SENATOR PASTORE STATED ON THE FLOOR OF THE SENATE THAT:

MR. PRESIDENT, THIS AMENDMENT DOES NOT PROVIDE FOR ADDITIONAL MONEY. THE FEDERAL HOME LOAN BANK BOARD ASKED THAT IT BE AUTHORIZED, WITHIN THE LAW, TO USE $500,000 FOR A STUDY OF THE SAVINGS AND LOAN INDUSTRY. * * *

IT WAS STATED BY THE DIRECTOR OF THE BUREAU OF THE BUDGET IN HIS LETTER TO THE PRESIDENT DATED MARCH 25, 1966, WHICH WAS TRANSMITTED TO THE PRESIDENT OF THE SENATE BY THE LETTER OF THE PRESIDENT DATED MARCH 29, 1966 (S.DOC. NO. 85, 89TH CONG., 2D SESS.), THAT THE PROPOSED STUDY WILL COVER MORE THAN 1 FISCAL YEAR. MOREOVER, THE CHAIRMAN OF THE BOARD, AT PAGE 577 OF THE HEARINGS, PUBLIC LAW 89-426, BEFORE THE SENATE COMMITTEE ON APPROPRIATIONS, INFORMED THE COMMITTEE THAT THE BOARD THOUGHT IT WOULD TAKE AT LEAST 2 YEARS TO COMPLETE THE STUDY.

THE ABOVE-QUOTED APPROPRIATION PROVISION FROM THE SECOND SUPPLEMENTAL APPROPRIATION ACT, 1966, PUBLIC LAW 89-426, HAD THE EFFECT OF MAKING AVAILABLE TO THE BOARD FOR THE SPECIAL STUDIES AUTHORIZED THEREIN NOT TO EXCEED $500,000 OUT OF THE $13,155,000 MADE AVAILABLE IN THE INDEPENDENT OFFICES APPROPRIATION ACT, 1966, TO THE BOARD FOR THE FISCAL YEAR 1966 FOR NONADMINISTRATIVE EXPENSES. IT IS OUR VIEW IN LIGHT OF THE LEGISLATIVE HISTORY OF THE SAID PROVISION, AND THE SPECIFIC LANGUAGE USED THEREIN TO THE EFFECT THAT THE STUDIES MAY BE OF ANY DURATION NOT BEYOND THE COMPLETION DATED FIXED THEREIN, THAT THE $500,000 IS AVAILABLE FOR OBLIGATION AFTER JUNE 30, 1966, FOR EXPENSES OF THE AUTHORIZED STUDIES, SUBJECT TO THE LIMITATION THAT THE STUDIES BE COMPLETED BY DECEMBER 31, 1968. FURTHER, IN LIGHT OF THE LANGUAGE OF THE APPROPRIATION PROVISION AND ITS LEGISLATIVE HISTORY IT IS OUR VIEW THAT THE $500,000 LIMITATION IS A LIMITATION ON THE TOTAL AMOUNT THAT MAY BE EXPENDED FOR THE SPECIAL STUDIES PROVIDED THEREIN AND THAT THE $13,155,000 DOLLAR LIMITATION IN THE ABOVE-QUOTED PROVISION OF THE INDEPENDENT OFFICES APPROPRIATION ACT, 1966, IS APPLICABLE WITH RESPECT TO THE STUDY PROVISION.