B-199450 L/M, JUL 24, 1980

B-199450 L/M, JUL 24, 1980

PRECIS-UNAVAILABLE

GERRY E. STUDDS, HOUSE OF REPRESENTATIVES:

THIS RESPONDS TO YOUR LETTER DATED JUNE 26, 1980, IN WHICH YOU EXPRESSED CONCERN ABOUT THE LEGALITY OF THE RESCISSION AND DEFERRAL PROPOSED BY THE ADMINISTRATION AFFECTING THE COASTAL ENERGY IMPACT FUND. YOU ASKED US TO UNDERTAKE A LEGAL ANALYSIS OF RESCISSION PROPOSAL R80-11 AND DEFERRAL PROPOSAL D80-49, SPECIFICALLY REFERRING TO SECTION 308(H) OF THE COASTAL ZONE MANAGEMENT ACT, 16 U.S.C. 1456AH).

WE CONTACTED MR. JEFFREY PIKE OF YOUR STAFF AND HAVE REFINED THE QUESTION AS FOLLOWS:

SECTION 308(H) OF THE COSTAL ZONE MANAGEMENT ACT PROVIDES FOR ESTABLISHING A COASTAL ENERGY IMPACT FUND IN THE TREASURY AS A REVOLVING FUND AND REQUIRES, IN PART, THAT SUMS IN THE FUND WHICH ARE NOT NEEDED FOR PURPOSES IDENTIFIED IN THE ACT BE KEPT ON DEPOSIT (OR, ALTERNATIVELY, INVESTED IN OBLIGATIONS OF, OR GUARANTEED BY, THE UNITED STATES). SPECIFYING WHAT IS TO BE DONE WITH UNNEEDED FUNDS, DOES SECTION 308(H) PRECLUDE THE ADMINISTRATION FROM IMPOUNDING SUCH UNNEEDED FUNDS EITHER BY PROPOSING A RESCISSION PURSUANT TO 31 U.S.C. 1402 (AND, THEREBY, IMPOUNDING THE FUNDS FOR 45 DAYS OF CONTINUOUS SESSION WHILE AWAITING CONGRESSIONAL ACTION ON A RESCISSION BILL) OR BY PROPOSING A DEFERRAL PURSUANT TO 31 U.S.C. 1403?

THE PART OF SECTION 308(H) TO WHICH YOU REFER PROVIDES CONTROL OVER INCOMING RECEIPTS TO THE COASTAL ENERGY IMPACT FUND THAT ARE NOT PRESENTLY NEEDED FOR OBLIGATION OR EXPENDITURE FOR THE PURPOSES OF THE FUND. REQUIRING UNNEEDED FUNDS TO BE KEPT ON DEPOSIT OR INVESTED IN CERTAIN OBLIGATIONS, SECTION 308(H) PROTECTS AGAINST THE USE OF INCOMING MONEYS FOR UNAUTHORIZED PURPOSES AND SPECIFIES THE SCOPE OF AUTHORIZED INVESTMENTS. OF COURSE, THE PROTECTION PROVIDED BY SECTION 308(H) IS NOT NEEDED FOR MONEYS IN THE FUND WHICH HAVE NOT BEEN DRAWN UPON AND, THUS, ARE ALREADY ON DEPOSIT.

PROVISIONS SIMILAR TO THE PART OF SECTION 308(H) TO WHICH YOU REFER ARE FAIRLY COMMON IN STATUTES ESTABLISHING SPECIAL FUNDS WHICH RECEIVE MONEYS FROM SOURCES OTHER THAN DIRECT APPROPRIATION. FOR EXAMPLE, SEE 7 U.S.C. 1929(B), 12 U.S.C. 1712, 12 U.S.C. 1715E (O), AND 12 U.S.C. 1725(D). THERE IS NOTHING IN THE STATUTE OR THE LEGISLATIVE HISTORY TO SUGGEST THAT SECTION 308(H) WAS INTENDED TO AFFECT THE EXECUTIVE BRANCH'S AUTHORITY TO UTILIZE THE IMPOUNDMENT CONTROL ACT.

AS A REVOLVING FUND ESTABLISHED IN THE TREASURY, THE MONEYS PRESENTLY COMPRISING THE FUND ARE ALREADY ON DEPOSIT. COMPLIANCE WITH SECTION 308(H) WOULD REQUIRE THAT INCOMING MONEYS BE SIMILARLY TREATED. OUR DISCUSSIONS WITH REPRESENTATIVES OF THE OFFICE OF MANAGEMENT AND BUDGET AND THE DEPARTMENT OF THE TREASURY DID NOT UNCOVER ANY IMPROPER HANDLING OF THE COASTAL ENERGY IMPACT FUND, AND FUNDS NOT BEING USED BY THE AGENCY REMAIN ON DEPOSIT. THE ADMINISTRATION'S PROPOSED IMPOUNDMENTS DID NOT AFFECT THIS SITUATION.

AS A POINT OF INFORMATION, CONGRESS FAILED TO PASS A RESCISSION BILL WITHIN THE AUTHORIZED WITHHOLDING PERIOD ENDING ON JUNE 4, 1980, APPROVING THE PROPOSAL IN R80-11 TO RESCIND $50 MILLION. WE REPORTED TO THE CONGRESS ON JUNE 23, 1980, THAT THE BUDGET AUTHORITY INVOLVED WAS APPORTIONED ON JUNE 5, 1980. SUBSEQUENTLY, HOWEVER, THE 1980 SUPPLEMENTAL APPROPRIATIONS AND RESCISSION BILL WAS ENACTED INTO LAW ON JULY 8, 1980, AS PUB. L. NO. 96-304 AND RESCINDED $35.4 MILLION FROM THE COASTAL ENERGY IMPACT FUND.

I HOPE THAT THE FOREGOING SATISFIES THE CONCERNS EXPRESSED IN YOUR LETTER. IF WE CAN BE OF FURTHER ASSISTANCE ON THIS MATTER, PLEASE CONTACT MR. JEFFREY JACOBSON (275-3140) OF MY STAFF.