B-125979, JUN. 14, 1957

B-125979, JUN. 14, 1957

TO HONORABLE H. V. HIGLEY, ADMINISTRATOR, VETERANS ADMINISTRATION:

ON APRIL 17, 1957, YOU REQUESTED OUR DECISION AS TO WHETHER APPROPRIATED FUNDS MAY BE USED TO MAKE ADVANCE PAYMENTS ON A SUBSCRIPTION BASIS FOR THE PURCHASE OF PHONOGRAPH RECORDS, TOGETHER WITH PRINTED ANNOUNCER SCRIPTS.

AS AN ILLUSTRATION OF THE SAVINGS WHICH WOULD RESULT FROM ADVANCE PAYMENTS ON A SUBSCRIPTION BASIS FOR THE PURCHASE OF RECORDINGS YOU REFER TO THE FOLLOWING RECENT OFFERS FROM THREE MAJOR MANUFACTURERS:

"RCA VICTOR. YEAR'S SUBSCRIPTION FOR 108 ALBUMS COMPLETE WITH ANNOUNCER SCRIPTS AT A TOTAL PRICE OF $60. THE SAME ALBUMS--- WITHOUT THE ANNOUNCER SCRIPTS--- RETAILS FOR $429.84.

"CAMDEN RECORDS. 32 ALBUMS OF 12 INCH LONG PLAYING RECORDS PLUS SIX ALBUMS OF EXTENDED PLAY RECORDS AND OCCASIONAL OTHER EXTRAS FOR A TOTAL YEAR SUBSCRIPTION OF $20. THIS SAME SET WOULD RETAIL FOR $98.30 OR WHOLESALE FOR $58.98.

"MAKER NOT GIVEN. COMPLETE LIBRARY OF 100 ALBUMS OF LONG PLAYING RECORDS COMPLETE WITH ANNOUNCER SCRIPT SERVICE FOR $125 THE FIRST YEAR AND $65 FOR EACH YEAR THEREAFTER.'

YOU REFER TO OUR DECISION OF JANUARY 17, 1956, B-125979, 35 COMP. GEN. 404, TO YOU, IN WHICH WE HELD THAT A BOOK FALLS WITHIN THE MEANING OF THE TERM "PUBLICATIONS" AS USED IN 31 U.S.C. 530, WHICH AUTHORIZES YOUR ADMINISTRATION TO MAKE ADVANCE PAYMENTS FOR SUBSCRIPTIONS FOR PUBLICATIONS. YOU SAY THAT WHILE IT IS RECOGNIZED THAT PHONOGRAPH RECORDS ARE NOT "PRINTED" IN THE SAME SENSE THAT A BOOK IS PRINTED, THEY ARE NEVERTHELESS A PRINTED IMPRESSION OF A MASTER RECORD AND MAY BE REPRODUCED TO EFFECT SOUND IN THE FORM OF MUSIC OR NARRATIVE BY USE OF AN ELECTRONIC DEVICE. YOU ADVISE THAT MANUFACTURERS HAVE IN RECENT YEARS ADOPTED THE SUBSCRIPTION PLAN, BOTH WITH REGARD TO THE GENERAL PUBLIC AND TO OTHERS, IN MUCH THE SAME MANNER AS PUBLISHERS OFFER BOOKS AND PERIODICALS. YOUR LETTER DISCLOSES THAT HOSPITALS IN THE VETERANS ADMINISTRATION RELY ON PERSONNEL OTHER THAN TRAINED ANNOUNCERS FOR THE BROADCASTING OF RECORDED PROGRAMS OVER SPEAKERS AND HEADSET CIRCUITS AND THE SCRIPTS PREPARED FOR US BY COMMERCIAL BROADCASTERS WOULD BE OF MATERIAL ASSISTANCE TO THOSE EMPLOYEES WHO ARE REQUIRED TO ANNOUNCE PROGRAMS IN ADDITION TO THEIR REGULAR DUTIES.

SECTION 3648, REVISED STATUTES, 31 U.S.C. 529, PROVIDES, IN PART THAT:

"NO ADVANCE OF PUBLIC MONEY SHALL BE MADE IN ANY CASE UNLESS AUTHORIZED BY THE APPROPRIATION CONCERNED OR OTHER LAW. AND IN ALL CASES OF CONTRACTS FOR THE PERFORMANCE OF ANY SERVICE, OR THE DELIVERY OF ARTICLES OF ANY DESCRIPTION, FOR THE USE OF THE UNITED STATES, PAYMENT SHALL NOT EXCEED THE VALUE OF THE SERVICE RENDERED, OR OF THE ARTICLES DELIVERED PREVIOUSLY TO SUCH YMENT.'

SECTION 530, OF TITLE 31, U.S.C. PROVIDES, IN PERTINENT PART, AS FOLLOWS:

"* * * SUBSCRIPTIONS FOR PUBLICATIONS FOR THE VETERANS' ADMINISTRATION, TO BE PAID FOR BY THE DIRECTOR * * * TO BE PAID FROM APPROPRIATIONS AVAILABLE THEREFOR, MAY BE PAID IN ADVANCE.'

THE QUOTED PORTION OF 31 U.S.C. 530 WAS DERIVED FROM THE INDEPENDENT OFFICES APPROPRIATION ACT, 1925, 43 STAT. 533. THE PROVISION WAS SUGGESTED IN OUR DECISION OF MARCH 12, 1924, A-138, TO THE DIRECTOR, UNITED STATES VETERANS BUREAU WHICH HELD THAT THE ACT OF MARCH 4, 1915, 38 STAT. 1049, AUTHORIZING ADVANCE PAYMENT FOR SUBSCRIPTIONS TO PERIODICALS DID NOT PERMIT PAYMENT IN ADVANCE FOR NEWSPAPERS. SEE PAGE 14, HOUSE REPORT 380, 68TH CONGRESS, 1ST SESSION, ON THE INDEPENDENT OFFICES APPROPRIATION BILL, 1925. THERE IS NOTHING IN THE LEGISLATIVE HISTORY OF THAT PROVISION TO SUGGEST THAT THE CONGRESS THEREBY INTENDED TO AUTHORIZE ADVANCE PAYMENT OTHER THAN FOR PUBLICATIONS IN THE CUSTOMARY AND USUALLY UNDERSTOOD SENSE OF THAT WORD, THAT IS, AS ENCOMPASSING BOOKS, PAMPHLETS, NEWSPAPERS, PERIODICALS OR PRINTS, ETC. SEE UNITED STATES V. CHASE, 135 U.S. 255. ALSO, WE HAVE HELD THAT THE WORD "PUBLICATIONS," WHEN USED IN A SOMEWHAT SIMILAR STATUTE, DOES NOT ENCOMPASS PHONOGRAPH RECORDS, RADIO TRANSCRIPTIONS OR MOTION PICTURE FILM. 21 COMP. GEN. 524.

WE RECOGNIZE FROM THE INFORMATION FURNISHED THAT SAVINGS THROUGH ADVANCE PAYMENT FOR SUBSCRIPTIONS TO PHONOGRAPH RECORDINGS MIGHT BE POSSIBLE, BUT THE ADVANCE PAYMENT FOR SUBSCRIPTION TO SUCH RECORDINGS IS PRECLUDED BY SECTION 3648, REVISED STATUTES, 31 U.S.C. 529, BECAUSE SUCH RECORDINGS ARE NOT "PUBLICATIONS" WITHIN THE MEANING OF THE EXCEPTION MADE TO SUCH SECTION OF THE REVISED STATUTES BY 31 U.S.C. 530.