B-173976, MAY 5, 1972, 51 COMP GEN 709

B-173976, MAY 5, 1972, 51 COMP GEN 709

BANKRUPTCY - REFEREES - COMPENSATION - LIMITATION ON SALARY CHANGES ACCEPTANCE BY FULL-TIME REFEREES IN BANKRUPTCY OF THE COMPARABILITY ADJUSTMENT IN RATES OF PAY AUTHORIZED FOR GOVERNMENT EMPLOYEES WOULD IN VIEW OF THE 2-YEAR LIMITATION ON SALARY CHANGES IN SECTION 40(B) OF THE BANKRUPTCY ACT, 11 U.S.C. 68(B), PRECLUDE ANY FURTHER ADJUSTMENTS IN REFEREE SALARIES BY THE JUDICIAL CONFERENCE UNTIL THE EXPIRATION OF THE 2- YEAR LIMITATION SINCE THE SALARIES OF REFEREES ARE ADMINISTRATIVELY FIXED AND, THEREFORE, ARE NOT WITHIN THE PURVIEW OF SECTION 3 OF THE ECONOMIC STABILIZATION ACT AMENDMENTS OF 1971 REQUIRING ADJUSTMENTS IN THE PAY OF EMPLOYEES SUBJECT TO A STATUTORY PAY SYSTEM, WHICH AS DEFINED IN THE FEDERAL PAY COMPARABILITY ACT OF 1970 EXCLUDES ADMINISTRATIVELY FIXED SALARIES. THEREFORE, SINCE ADMINISTRATIVE ACTION IS PREREQUISITE TO SALARY ADJUSTMENTS SIMILAR TO THOSE GRANTED BY SECTION 3 OF THE 1971 ACT, APPROVAL BY THE JUDICIAL CONFERENCE OF SALARY ADJUSTMENTS ARE SUBJECT TO THE SECTION 40(B) LIMITATION.

TO THE DIRECTOR, ADMINISTRATIVE OFFICE OF THE UNITED STATES COURTS, MAY 5, 1972:

WE REFER TO LETTER OF FEBRUARY 25, 1972, FROM YOUR GENERAL COUNSEL BY WHICH HE HAS REQUESTED OUR OPINION ON WHETHER ACCEPTANCE BY FULL-TIME REFEREES IN BANKRUPTCY OF THE COMPARABILITY ADJUSTMENT IN RATES OF PAY RECENTLY AUTHORIZED FOR ALL GOVERNMENT EMPLOYEES WOULD, IN VIEW OF THE PROVISO CONTAINED IN SUBSECTION 40(B) OF THE BANKRUPTCY ACT, 11 U.S.C. 68(B), PRECLUDE ANY FURTHER ADJUSTMENT IN THEIR SALARIES BY THE JUDICIAL CONFERENCE UNTIL THE EXPIRATION OF 2 YEARS.

THE SALARIES OF REFEREES IN BANKRUPTCY ARE ESTABLISHED, WITHIN STATUTORILY PRESCRIBED MAXIMA, BY THE JUDICIAL CONFERENCE OF THE UNITED STATES PURSUANT TO SECTION 40 OF THE BANKRUPTCY ACT, 11 U.S.C. 68, BASED ON THE VOLUME AND TYPES OF BUSINESS THAT THE INDIVIDUAL REFEREE HANDLES, AMOUNTS INVOLVED AND OTHER COGNATE CONSIDERATIONS ASSESSED IN CONNECTION WITH PERIODIC SURVEYS AND RECOMMENDATIONS MADE BY YOUR OFFICE AND RECOMMENDATIONS OF THE JUDICIAL COUNCILS AFTER CONSULTING WITH THE DISTRICT JUDGES. SUBSECTION B OF SECTION 40 OF THE BANKRUPTCY ACT INCLUDES THE FOLLOWING PROVISO:

*** AND PROVIDED FURTHER, THAT NO SALARY FIXED UNDER THE PROVISIONS OF THIS SECTION FOR A FULL-TIME REFEREE SHALL BE CHANGED MORE OFTEN THAN ONCE IN ANY TWO YEARS OR IN AN AMOUNT OF LESS THAN $250.

THE ARGUMENT HAS BEEN MADE THAT A PAY INCREASE TO THE REFEREE WHICH IS DERIVED FROM SECTION 3 OF THE ECONOMIC STABILIZATION ACT AMENDMENTS OF 1971, PUBLIC LAW 92-210, APPROVED DECEMBER 22, 1971, 5 U.S.C. 5305 NOTE, DOES NOT OPERATE TO FIX THE SALARY OF REFEREES UNDER THE PROVISIONS OF SECTION 40 OF THE BANKRUPTCY ACT, BUT IS A SALARY ADJUSTMENT DERIVED FROM ANOTHER STATUTORY SOURCE AND THUS WOULD NOT PRECLUDE ANOTHER SALARY INCREASE PREDICATED ON THE AUTHORITY IN THE BANKRUPTCY ACT IRRESPECTIVE OF THE 2-YEAR LIMITATION ALSO CONTAINED THEREIN.

IT HAS BEEN SUGGESTED ALSO THAT SUBSECTION 255(J) OF THE FEDERAL SALARY ACT OF 1967, PUBLIC LAW 90-206, 91 STAT. 613, 2 U.S.C. 360, MAY BE VIEWED AS, IN EFFECT, REPEALING OR RENDERING INAPPLICABLE THE PROVISO OF SUBSECTION 40(B) LIMITING SALARY ADJUSTMENTS TO A FREQUENCY OF EVERY 2 YEARS.

THE ECONOMIC STABILIZATION ACT AMENDMENTS OF 1971 PROVIDE AT SECTION 3 AS FOLLOWS:

SEC. 3. NOTWITHSTANDING ANY PROVISION OF SECTION 3(C) OF THE FEDERAL PAY COMPARABILITY ACT OF 1970 (PUBLIC LAW 91-656), OR OF SECTION 5305 OF TITLE 5, U.S.C. AS ADDED BY SECTION 3(A) OF PUBLIC LAW 91-656, AND THE PROVISIONS OF THE ALTERNATIVE PLAN SUBMITTED BY THE PRESIDENT TO THE CONGRESS PURSUANT THERETO ON AUGUST 31, 1971, SUCH COMPARABILITY ADJUSTMENTS IN THE RATES OF PAY OF EACH FEDERAL STATUTORY PAY SYSTEM AS MAY BE REQUIRED UNDER SUCH SECTIONS 5305 AND 3(C), BASED ON THE 1971 BUREAU OF LABOR STATISTICS SURVEY -

(1) SHALL NOT BE GREATER THAN THE GUIDELINES ESTABLISHED FOR THE WAGE AND SALARY ADJUSTMENTS FOR THE PRIVATE SECTOR THAT MAY BE AUTHORIZED UNDER AUTHORITY OF ANY STATUTE OF THE UNITED STATES, INCLUDING THE ECONOMIC STABILIZATION ACT OF 1970 (PUBLIC LAW 91-379; 84 STAT. 799), AS AMENDED, AND THAT MAY BE IN EFFECT ON DECEMBER 31, 1971; AND

(2) SHALL BE PLACED INTO EFFECT ON THE FIRST DAY OF THE FIRST PAY PERIOD THAT BEGINS ON OR AFTER JANUARY 1, 1972.

NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROVIDE ANY ADJUSTMENTS IN RATES OF PAY OF ANY FEDERAL STATUTORY PAY SYSTEM WHICH ARE GREATER THAN THE ADJUSTMENTS BASED ON THE 1971 BUREAU OF LABOR STATISTICS SURVEY.

IT HAS BEEN SUGGESTED FURTHER THAT THE EFFECT OF THIS PROVISION IS TO PRESCRIBE AN "ACROSS THE BOARD" ADJUSTMENT IN THE PAY SYSTEM FOR REFEREES ESTABLISHED BY SECTION 40 OF THE BANKRUPTCY ACT. IN SUPPORT THEREOF YOUR GENERAL COUNSEL QUOTES FROM PAGE 22 OF THE HOUSE CONFERENCE REPORT, NO. 92 -745, 92D CONGRESS, 1ST SESSION, WHEREIN THE FOLLOWING IS STATED:

THE SENATE BILL CONTAINED A PROVISION WHICH AUTHORIZES COMPARABILITY ADJUSTMENTS IN THE RATES OF PAY OF EACH FEDERAL PAY SYSTEM COVERED BY THE FEDERAL PAY COMPARABILITY ACT OF 1970, TO BE PLACED INTO EFFECT ON THE FIRST DAY OF THE FIRST PAY PERIOD THAT BEGINS ON OR AFTER JANUARY 1, 1972, NOTWITHSTANDING THE PROVISIONS OF THE ALTERNATIVE PAY PLAN SUBMITTED BY THE PRESIDENT TO THE CONGRESS ON AUGUST 31, 1971. THE AMOUNT OF SUCH INCREASES MAY NOT EXCEED THE 5.5 PERCENT CEILING ESTABLISHED AS A GUIDELINE BY THE PAY BOARD. THE HOUSE BILL CONTAINED NO SUCH PROVISION. THE CONFEREES ADOPTED THE SENATE PROVISION WITH A CLARIFYING AMENDMENT.

IT IS INTENDED THAT THE COMPARABILITY ADJUSTMENTS BE MADE NOT ONLY IN THE "STATUTORY PAY SYSTEM," AS THAT TERM IS DEFINED UNDER 5 U.S.C. 5301(C), TO INCLUDE THE GENERAL SCHEDULE, THE FOREIGN SERVICE, AND THE DEPARTMENT OF MEDICINE AND SURGERY, VETERANS ADMINISTRATION, BUT ALSO IN ALL OTHER FEDERAL PAY SYSTEMS COVERED BY THE FEDERAL PAY COMPARABILITY ACT OF 1970.

THE OTHER PAY SYSTEMS ARE THOSE UNDER WHICH RATES OF PAY ARE FIXED BY ADMINISTRATIVE ACTION UNDER 5 U.S.C. 5307, WHICH INCLUDES ALL SUCH EMPLOYEES IN THE EXECUTIVE, LEGISLATIVE, AND JUDICIAL BRANCHES (EXCEPT EMPLOYEES WHOSE PAY IS DISBURSED BY THE SECRETARY OF THE SENATE OR THE CLERK OF THE HOUSE OF REPRESENTATIVES) AND EMPLOYEES OF THE GOVERNMENT OF THE DISTRICT OF COLUMBIA. IN ADDITION, IT INCLUDES CERTAIN EMPLOYEES OF THE ARCHITECT OF THE CAPITOL, AND EMPLOYEES OF COUNTY COMMITTEES ESTABLISHED UNDER 16 U.S.C. 590HB).

COMPARABILITY ADJUSTMENTS ALSO ARE AUTHORIZED UNDER SECTIONS 4 AND 5 OF THE FEDERAL PAY COMPARABILITY ACT OF 1970 FOR EMPLOYEES WHOSE PAY IS DISBURSED BY THE SECRETARY OF THE SENATE OR THE CLERK OF THE HOUSE OF REPRESENTATIVES. THE JANUARY, 1972, ADJUSTMENT AUTHORIZED BY THE PROVISIONS OF THIS SECTION WILL APPLY ALSO TO THESE EMPLOYEES.

IN ADDITION TO COMPARABILITY ADJUSTMENTS IN RATES OF PAY, THE FEDERAL PAY COMPARABILITY ACT OF 1970 ALSO AUTHORIZES COMPARABLE ADJUSTMENTS IN MINIMUM AND MAXIMUM RATES OF PAY, AND IN MONETARY LIMITATIONS ON, OR MONETARY ALLOWANCES FOR, PAY APPLICABLE TO CERTAIN CLASSES OF EMPLOYEES. IT IS INTENDED THAT SUCH LIMITATIONS AND ALLOWANCES ALSO BE ADJUSTED UNDER THE AUTHORITY OF THIS SECTION.

THE PROVISION IN THE CONFERENCE REPORT REQUIRES THAT THE COMPARABILITY ADJUSTMENTS IN PAY, AND THE ADJUSTMENTS IN MONETARY LIMITATIONS OR ALLOWANCES, BE PLACED INTO EFFECT ON THE FIRST DAY OF THE FIRST PAY PERIOD THAT BEGINS ON OR AFTER JANUARY 1, 1972. IT IS INTENDED THAT THIS EFFECTIVE DATE WILL APPLY TO ALL EMPLOYEES WHO ARE ENTITLED TO RECEIVE COMPARABILITY ADJUSTMENTS UNDER THIS LEGISLATION, INCLUDING LEGISLATIVE EMPLOYEES COVERED BY SECTIONS 4 AND 5 OF THE FEDERAL PAY COMPARABILITY ACT OF 1970.

WE POINT OUT THAT THE ABOVE LANGUAGE REPRESENTED AN ATTEMPT BY THE CONFEREES ON THE PART OF THE HOUSE TO ADOPT A CLARIFYING AMENDMENT TO THE PROVISION OF THE SENATE BILL. THE SENATE BILL PROVIDED SUBSTANTIALLY AS DOES SECTION 3 OF THE ECONOMIC STABILIZATION ACT AMENDMENTS AS ENACTED. IN RESPONSE TO A POINT OF ORDER RAISED BY CONGRESSMAN GROSS, THE SPEAKER OF THE HOUSE RULED AT PAGE H12455 OF THE CONGRESSIONAL RECORD, DECEMBER 14, 1971, AS FOLLOWS:

THE GENTLEMAN FROM IOWA (MR. GROSS) MAKES A POINT OF ORDER AGAINST THE CONFERENCE REPORT ON THE BILL S. 2891 ON THE GROUND THAT THE CONFEREES ON THE PART OF THE HOUSE HAVE EXCEEDED THEIR AUTHORITY AS DEFINED IN CLAUSE 3 OF RULE XXVIII BY INCLUDING MATTER NOT SUBMITTED TO CONFERENCE BY EITHER HOUSE.

SPECIFICALLY, THE GENTLEMAN FROM IOWA ASSERTS THAT THE CONFEREES HAVE BROADENED THAT PROVISION OF THE SENATE BILL WHICH AUTHORIZES COMPARABILITY ADJUSTMENTS IN THE RATES OF PAY OF EACH FEDERAL STATUTORY PAY SYSTEM COVERED BY THE FEDERAL PAY COMPARABILITY ACT OF 1970 AT A RATE NOT IN EXCESS OF 5.5 PERCENT, EFFECTIVE AFTER JANUARY 1, 1972.

THE HOUSE AMENDMENT CONTAINED NO COMPARABLE PROVISION. AS STATED IN THE JOINT STATEMENT OF THE MANAGERS ON PAGE 22, THE CONFEREES HAVE ADOPTED THE SENATE PROVISION WITH A "CLARIFYING AMENDMENT" TO ASSURE THAT THE COMPARABILITY ADJUSTMENTS BE MADE NOT ONLY IN THE "STATUTORY PAY SYSTEMS" AS THAT TERM IS DEFINED IN 5 U.S.C. 5301(C), BUT ALSO IN "ALL OTHER FEDERAL PAY SYSTEMS" COVERED BY THE FEDERAL PAY COMPARABILITY ACT OF 1970; NAMELY, THOSE UNDER WHICH RATES OF PAY ARE FIXED BY ADMINISTRATIVE ACTION UNDER 5 U.S.C. 5307. THIS WOULD INCLUDE EMPLOYEES IN THE EXECUTIVE, LEGISLATIVE, AND JUDICIAL BRANCHES AND EMPLOYEES OF THE DISTRICT OF COLUMBIA WHOSE PAY IS DISBURSED BY ADMINISTRATIVE ACTION. IT WOULD ALSO INCLUDE EMPLOYEES WHOSE PAY IS DISBURSED BY THE SECRETARY OF THE SENATE OR THE CLERK OF THE HOUSE.

THE CHAIR IS COMPELLED TO HOLD THAT THE CONFEREES, BY DELETING THE WORD "STATUTORY" IN THE SENATE BILL, HAVE BROADENED THE COVERAGE OF THE COMPARABILITY ADJUSTMENTS BEYOND THE SCOPE OF THE SENATE BILL OR THE HOUSE AMENDMENT. THE CHAIR THEREFORE SUSTAINS THE POINT OF ORDER.

THUS, SECTION 3 WAS ENACTED WITHOUT ANY CHANGE IN THE LANGUAGE AS PROPOSED BY HOUSE CONFERENCE REPORT 92-745. THE LANGUAGE IN SECTION 3 AS ENACTED REQUIRED ADJUSTMENTS IN THE PAY OF EMPLOYEES SUBJECT TO A FEDERAL STATUTORY PAY SYSTEM WHICH IS DEFINED IN THE FEDERAL PAY COMPARABILITY ACT OF 1970, PUBLIC LAW 91-656, 5 U.S.C. 5301, AS RELATING TO THE GENERAL SCHEDULE PAY SYSTEM, THE FOREIGN SERVICE PAY SYSTEM AND THE PAY SYSTEM OF THE DEPARTMENT OF MEDICINE AND SURGERY, VETERANS ADMINISTRATION. MOREOVER, WE POINT OUT THAT THE FEDERAL PAY COMPARABILITY ACT OF 1970 DOES NOT PROVIDE FOR MANDATORY ADJUSTMENTS IN THE RATES OF COMPENSATION OF EMPLOYEES WHOSE PAY IS FIXED BY ADMINISTRATIVE ACTION, BUT PROVIDES THAT THEIR RATES OF PAY MAY BE ADJUSTED AS INDICATED BELOW:

SEC 5307. PAY FIXED BY ADMINISTRATIVE ACTION

(A) NOTWITHSTANDING SECTION 665 OF TITLE 31 -

(1) THE RATES OF PAY OF -

(A)EMPLOYEES IN THE LEGISLATIVE, EXECUTIVE, AND JUDICIAL BRANCHES OF THE GOVERNMENT OF THE UNITED STATES (EXCEPT EMPLOYEES WHOSE PAY IS DISBURSED BY THE SECRETARY OF THE SENATE OR THE CLERK OF THE HOUSE OF REPRESENTATIVES) AND OF THE GOVERNMENT OF THE DISTRICT OF COLUMBIA, WHOSE RATES OF PAY ARE FIXED BY ADMINISTRATIVE ACTION UNDER LAW AND ARE NOT OTHERWISE ADJUSTED UNDER THIS SUBCHAPTER;

(2) ANY MINIMUM OR MAXIMUM RATE OF PAY (OTHER THAN A MAXIMUM RATE EQUAL TO OR GREATER THAN THE MAXIMUM RATE THEN CURRENTLY BEING PAID UNDER THE GENERAL SCHEDULE AS A RESULT OF THE PAY ADJUSTMENT BY THE PRESIDENT), AND ANY MONETARY LIMITATION ON OR MONETARY ALLOWANCE FOR PAY, APPLICABLE TO EMPLOYEES DESCRIBED IN SUBPARAGRAPHS (A), (B), AND (C) OF PARAGRAPH (1) OF THIS SUBSECTION;

MAY BE ADJUSTED, BY THE APPROPRIATE AUTHORITY CONCERNED, EFFECTIVE AT THE BEGINNING OF THE FIRST APPLICABLE PAY PERIOD COMMENCING ON OR AFTER THE DAY ON WHICH A PAY ADJUSTMENT BECOMES EFFECTIVE UNDER SECTION 5305 OF THIS TITLE, BY WHICHEVER OF THE FOLLOWING METHODS THE APPROPRIATE AUTHORITY CONCERNED CONSIDERS APPROPRIATE -

(I) BY AN AMOUNT OR AMOUNTS NOT IN EXCESS OF THE PAY ADJUSTMENT PROVIDED UNDER SECTION 5305 OF THIS TITLE FOR CORRESPONDING RATES OF PAY IN THE APPROPRIATE SCHEDULE OR SCALE OF PAY;

(II) IF THERE ARE NO CORRESPONDING RATES OF PAY, BY AN AMOUNT OR AMOUNTS EQUAL OR EQUIVALENT, INSOFAR AS PRACTICABLE AND WITH SUCH EXCEPTIONS AND MODIFICATIONS AS MAY BE NECESSARY TO PROVIDE FOR APPROPRIATE PAY RELATIONSHIPS BETWEEN POSITIONS, TO THE AMOUNT OF THE PAY ADJUSTMENT PROVIDED UNDER SECTION 5305 OF THIS TITLE; OR

(III) IN THE CASE OF MINIMUM OR MAXIMUM RATES OF PAY, OR MONETARY LIMITATIONS OR ALLOWANCES WITH RESPECT TO PAY, BY AN AMOUNT ROUNDED TO THE NEAREST $100 AND COMPUTED ON THE BASIS OF A PERCENTAGE EQUAL OR EQUIVALENT, INSOFAR AS PRACTICABLE AND WITH SUCH VARIATIONS AS MAY BE APPROPRIATE, TO THE PERCENTAGE OF THE PAY ADJUSTMENT PROVIDED UNDER SECTION 5305 OF THIS TITLE.

(B) AN ADJUSTMENT UNDER SUBSECTION (A) OF THIS SECTION IN RATES OF PAY, MINIMUM OR MAXIMUM RATES OF PAY, AND MONETARY LIMITATIONS OR ALLOWANCES WITH RESPECT TO PAY, SHALL BE MADE IN SUCH MANNER AS THE APPROPRIATE AUTHORITY CONCERNED CONSIDERS APPROPRIATE.

(C) THIS SECTION DOES NOT AUTHORIZE ANY ADJUSTMENT IN THE RATES OF PAY OF EMPLOYEES WHOSE RATES OF PAY ARE FIXED AND ADJUSTED FROM TIME TO TIME AS NEARLY AS IS CONSISTENT WITH THE PUBLIC INTEREST IN ACCORDANCE WITH PREVAILING RATES OR PRACTICES.

(D) THIS SECTION DOES NOT IMPAIR ANY AUTHORITY UNDER WHICH RATES OF PAY MAY BE FIXED BY ADMINISTRATIVE ACTION.

AT PAGE 19 OF THE HOUSE CONFERENCE REPORT, NO. 91-1685, TO ACCOMPANY H.R. 13000, WHICH BECAME THE FEDERAL PAY COMPARABILITY ACT OF 1970, REFEREES IN BANKRUPTCY ARE SPECIFICALLY STATED TO BE INCLUDED IN THE CATEGORY OF THOSE EMPLOYEES WHOSE PAY IS FIXED BY ADMINISTRATIVE ACTION.

SECTION 5307 OF 5 U.S.C., AS ADDED BY THE FEDERAL PAY COMPARABILITY ACT OF 1970, CLEARLY REFLECTS THAT ADMINISTRATIVE ACTION IS PREREQUISITE TO ADJUSTMENTS IN THE PAY OF EMPLOYEES SUCH AS REFEREES IN BANKRUPTCY, THE PRIMARY PURPOSE OF SUCH ADDITION BEING TO PROVIDE AUTHORITY TO GRANT SALARY INCREASES RETROACTIVE TO THE SAME DATE AS MIGHT BE AUTHORIZED FOR EMPLOYEES SUBJECT TO STATUTORY PAY SYSTEMS. IT FOLLOWS THAT UNDER SECTION 40 OF THE BANKRUPTCY ACT ANY INCREASE SIMILAR TO THOSE GRANTED BY SECTION 3 OF THE ACT OF DECEMBER 22, 1971, WOULD HAVE TO BE APPROVED BY THE JUDICIAL CONFERENCE AND WOULD BE SUBJECT TO THE PROVISO OF SECTION 40 OF THE BANKURPTCY ACT LIMITING SALARY FIXING THEREUNDER TO INTERVALS OF 2 YEARS. WE DO NOT REGARD THE 2-YEAR PROVISO IN SECTION 40 OF THE BANKRUPTCY ACT AS HAVING BEEN REPEALED OR RENDERED INAPPLICABLE BY THE ACTION OF THE PRESIDENT IN TRANSMITTING HIS RECOMMENDATION TO THE CONGRESS IN JANUARY 1969 AS PROVIDED IN SECTION 225(J) OF THE FEDERAL SALARY ACT OF 1967, PUBLIC LAW 90-206, 81 STAT. 613, FOR THE REASON HEREINAFTER INDICATED. THE COMMISSION ON EXECUTIVE, LEGISLATIVE, AND JUDICIAL SALARIES WAS CREATED BY SECTION 225 OF THE FEDERAL SALARY ACT OF 1967, 2 U.S.C. 351, FOR THE PURPOSE OF REVIEWING THE RATES OF VARIOUS TOP RANKING POSITIONS IN THE EXECUTIVE, LEGISLATIVE, AND JUDICIAL BRANCHES TO DETERMINE AND PROVIDE THE APPROPRIATE PAY LEVELS AND RELATIONSHIPS BETWEEN AND AMONG THE RESPECTIVE OFFICES AND POSITIONS COVERED BY SUCH REVIEW, AND THEIR APPROPRIATE RELATIONSHIP TO PAY RATES IN THE GENERAL SCHEDULE. THE ACT PROVIDES FURTHER THAT THE COMMISSION SHALL SUBMIT TO THE PRESIDENT A REPORT OF THE RESULTS OF EACH REVIEW, WHICH SHALL BE INCLUDED BY THE PRESIDENT IN THE BUDGET TRANSMITTED TO CONGRESS. IN THAT REGARD SUBSECTION (J) PROVIDES AS FOLLOWS:

(J) EFFECT OF RECOMMENDATIONS OF THE PRESIDENT ON EXISTING LAW AND PRIOR PRESIDENTIAL RECOMMENDATIONS. - THE RECOMMENDATIONS OF THE PRESIDENT TRANSMITTED TO THE CONGRESS IMMEDIATELY FOLLOWING A REVIEW CONDUCTED BY THE COMMISSION IN ONE OF THE FISCAL YEARS REFERRED TO IN SUBSECTION (B)(2) AND (3) OF THIS SECTION SHALL BE HELD AND CONSIDERED TO MODIFY, SUPERSEDE, OR RENDER INAPPLICABLE, AS THE CASE MAY BE, TO THE EXTENT INCONSISTENT THEREWITH -

(A)ALL PROVISIONS OF LAW ENACTED PRIOR TO THE EFFECTIVE DATE OR DATES OF ALL OR PART (AS THE CASE MAY BE) OF SUCH RECOMMENDATIONS (OTHER THAN ANY PROVISION OF LAW ENACTED IN THE PERIOD SPECIFIED IN PARAGRAPH (1) OF SUBSECTION (I) OF THIS SECTION WITH RESPECT TO SUCH RECOMMENDATIONS) *** .

IN THE BUDGET FOR 1970, THE PRESIDENT INCLUDED A RECOMMENDATION FOR SALARIES OF VARIOUS OFFICIALS OF THE UNITED STATES, AMONG WHICH WAS A MAXIMUM SALARY OF $36,000 FOR FULL-TIME REFEREES IN BANKRUPTCY WHICH BECAME EFFECTIVE ON FEBRUARY 14, 1972. SEE NOTES UNDER 11 U.S.C. 68 AND 2 U.S.C. 358.

SINCE THE RECOMMENDATION OF THE PRESIDENT AFFECTED ONLY THE MAXIMUM SALARY LIMITATION CONTAINED IN SUBSECTION (A) OF SECTION 40 OF THE BANKRUPTCY ACT, OUR VIEW IS THAT NO BASIS EXISTS FOR CONCLUDING THAT THE 2 -YEAR PROVISO CONTAINED IN SUBSECTION 40(B) HAS BEEN MODIFIED, SUPERSEDED OR OTHERWISE RENDERED INAPPLICABLE. THE QUESTIONS PRESENTED ARE ANSWERED ACCORDINGLY.