B-103682, JUNE 15, 1951, 30 COMP. GEN. 516

B-103682, JUNE 15, 1951, 30 COMP. GEN. 516

LEAVES OF ABSENCE - ANNUAL - STATUTORY PAYMENT RESTRICTIONS - ECONOMIC STABILIZATION AGENCY WHILE THE PROHIBITION IN SECTION 1212 OF THE GENERAL APPROPRIATION ACT, 1951, UPON THE EXPENDITURE OF FUNDS FOR THE PAYMENT OF 1950 ANNUAL LEAVE ACCRUALS UNUSED BY JULY 1, 1951, MAY NOT BE SAID TO BE LEGALLY APPLICABLE TO ECONOMIC STABILIZATION AGENCY FUNDS WHICH WERE NOT APPROPRIATED BY SAID ACT, AN ADMINISTRATIVE REQUIREMENT FOR EMPLOYEE'S USE OF LEAVE SIMILAR TO THAT OF AGENCIES SUBJECT TO THE ACT WOULD APPEAR TO BE IN KEEPING WITH THE SPIRIT OF THE ACT AND THE PURPOSE OF CONGRESS WHICH WAS TO RESTRICT GENERALLY PAYMENT TO GOVERNMENT EMPLOYEES FOR ANY ANNUAL LEAVE EARNED DURING THE CALENDAR YEAR 1950 AND UNUSED AT THE CLOSE OF BUSINESS ON JUNE 30, 1951. AN EMPLOYEE WHO TRANSFERS ON OR BEFORE JUNE 30, 1951, FROM THE ECONOMIC STABILIZATION AGENCY TO AN AGENCY SUBJECT TO THE PROVISIONS OF SECTION 1212 OF THE GENERAL APPROPRIATION ACT, 1951, PROHIBITING THE PAYMENT FOR ANNUAL LEAVE ACCUMULATED BY AN EMPLOYEE DURING THE CALENDAR YEAR 1950 AND UNUSED AT THE CLOSE OF BUSINESS ON JUNE 30, 1951, MAY NOT BE PAID BY THE NEW AGENCY FOR ANY ANNUAL LEAVE ACCRUED DURING THE CALENDAR YEAR 1950 AND UNUSED AT THE CLOSE OF BUSINESS ON JUNE 30, 1951. AN EMPLOYEE WHO TRANSFERS TO THE ECONOMIC STABILIZATION AGENCY AFTER JULY 1, 1951, FROM AN AGENCY SUBJECT TO THE PROVISIONS OF SECTION 1212 OF THE GENERAL APPROPRIATION ACT, 1951, PROHIBITING THE PAYMENT FOR ANNUAL LEAVE ACCUMULATED BY AN EMPLOYEE DURING THE CALENDAR YEAR 1950 AND UNUSED AT THE CLOSE OF BUSINESS ON JUNE 30, 1951, MAY NOT BE PAID BY THE ECONOMIC STABILIZATION AGENCY FOR ANY UNUSED 1950 LEAVE. A LUMP-SUM PAYMENT FOR ACCRUED ANNUAL LEAVE UPON AN EMPLOYEE'S TRANSFER BETWEEN AGENCIES SUBJECT TO THE SAME LEAVE SYSTEM IS UNAUTHORIZED, SO THAT AN EMPLOYEE WHO TRANSFERS FROM THE ECONOMIC STABILIZATION AGENCY ON OR AFTER JULY 1, 1951, TO AN AGENCY UNDER THE SAME LEAVE SYSTEM BUT SUBJECT TO THE PROVISIONS OF SECTION 1212 OF THE GENERAL APPROPRIATION ACT, 1951, MAY NOT BE PAID BY THE NEW AGENCY FOR ANNUAL LEAVE ACCUMULATED DURING THE CALENDAR YEAR 1950 NOR MAY A LUMP SUM PAYMENT BE MADE BY THE ECONOMIC STABILIZATION AGENCY FOR SUCH LEAVE.

COMPTROLLER GENERAL WARREN TO THE ADMINISTRATION, ECONOMIC STABILIZATION AGENCY, JUNE 15, 1951:

REFERENCE IS MADE TO YOUR LETTER OF MAY 23, 1951, REQUESTING A DECISION AS TO WHETHER THE ECONOMIC STABILIZATION AGENCY AND ITS COMPONENT OFFICERS ARE SUBJECT TO THE RESTRICTIONS CONTAINED IN SECTION 1212 OF THE GENERAL APPROPRIATION ACT, 1951, 64 STAT. 768, WHICH SECTION PROVIDES IN PERTINENT PART AS FOLLOWS:

NO PART OF THE FUNDS OF, OR AVAILABLE FOR EXPENDITURE BY ANY CORPORATION OR AGENCY INCLUDED IN THIS ACT, INCLUDING THE GOVERNMENT OF THE DISTRICT OF COLUMBIA, SHALL BE AVAILABLE TO PAY FOR ANNUAL LEAVE ACCUMULATED BY ANY CIVILIAN OFFICER OR EMPLOYEE DURING THE CALENDAR YEAR 1950 AND UNUSED AT THE CLOSE OF BUSINESS ON JUNE 30, 1951 * * *.

IT IS POINTED OUT IN YOUR LETTER THAT THE ECONOMIC STABILIZATION AGENCY WAS ESTABLISHED UNDER AUTHORITY OF THE DEFENSE PRODUCTION ACT OF 1950 ( PUBLIC LAW 774, 81ST CONGRESS) 64 STAT. 798, AND THAT FUNDS THEREFOR WERE APPROPRIATED IN THE SUPPLEMENTAL APPROPRIATION ACT, 1951 ( PUBLIC LAW 843, 81ST CONGRESS), 64 STAT. 1044. THEREFORE, SINCE THE SAID AGENCY WAS NOT INCLUDED IN THE GENERAL APPROPRIATION ACT, 1951, AND SINCE THE RESTRICTIONS IN SECTION 1212 THEREOF APPEAR TO BE LIMITED TO CORPORATIONS OR AGENCIES INCLUDED IN THE SAID ACT, THE FOLLOWING QUESTIONS ARE PRESENTED FOR DECISION:

(1) ARE THE PROVISIONS OF SECTION 1212 OF THE GENERAL APPROPRIATION ACT PROHIBITING PAYMENT FOR ANNUAL LEAVE ACCUMULATED BY AN EMPLOYEE DURING THE CALENDAR YEAR 1950 AND UNUSED AT THE CLOSE OF BUSINESS ON JUNE 30, 1951, APPLICABLE TO THE OFFICE OF PRICE STABILIZATION, WHICH WAS CREATED PURSUANT TO THE DEFENSE PRODUCTION ACT?

ASSUMING THAT THE ANSWER TO THE ABOVE QUESTION IS IN THE NEGATIVE, AND THAT THE ECONOMIC STABILIZATION AGENCY IS NOT SUBJECT TO THE RESTRICTIONS CONTAINED IN SECTION 1212 OF THE GENERAL APPROPRIATION ACT, ANSWERS TO THE FOLLOWING QUESTIONS ARE IMPORTANT TO THE INTERNAL ADMINISTRATION OF THE ECONOMIC STABILIZATION AGENCY:

(1) MAY AN EMPLOYEE WHO TRANSFERS ON OR AFTER JULY 1, 1951, FROM THE ECONOMIC STABILIZATION AGENCY TO AN AGENCY SUBJECT TO THE PROVISIONS OF SECTION 1212, BE PAID BY HIS NEW AGENCY FOR ANNUAL LEAVE ACCUMULATED BY HIM DURING THE CALENDAR YEAR 1950 AND UNUSED BY HIM AT THE CLOSE OF BUSINESS ON JUNE 30, 1951?

(2) MAY AN EMPLOYEE WHO TRANSFERS ON OR BEFORE JUNE 30, 1951, FROM THE ECONOMIC STABILIZATION AGENCY TO AN AGENCY SUBJECT TO THE PROVISIONS OF SECTION 1212, BE PAID BY HIS NEW AGENCY FOR ANNUAL LEAVE ACCUMULATED BY HIM DURING THE CALENDAR YEAR 1950 AND UNUSED BY HIM AT THE CLOSE OF BUSINESS ON JUNE 30, 1951?

(3) MAY AN EMPLOYEE WHO TRANSFERS TO THE ECONOMIC STABILIZATION AGENCY AFTER JULY 1, 1951, FROM AN AGENCY SUBJECT TO THE PROVISIONS OF SECTION 1212, BE PAID BY THE ECONOMIC STABILIZATION AGENCY FOR ANNUAL LEAVE ACCUMULATED BY HIM DURING THE CALENDAR YEAR 1950 AND UNUSED AT THE CLOSE OF BUSINESS ON JUNE 30, 1951?

(4) IS THE ECONOMIC STABILIZATION AGENCY AUTHORIZED TO MAKE A LUMP SUM PAYMENT FOR ALL ACCUMULATED AND CURRENT ACCRUED ANNUAL LEAVE CREDITED TO AN EMPLOYEE WHO TRANSFERS ON OR AFTER JULY 1, 1951, FROM THE ECONOMIC STABILIZATION AGENCY TO AN AGENCY SUBJECT TO THE PROVISIONS OF SECTION 1212?

SINCE THE PROHIBITION CONTAINED IN SECTION 1212, SUPRA, BY ITS TERMS IS APPLICABLE ONLY TO THE FUNDS OF CORPORATIONS OR AGENCIES INCLUDED IN THE GENERAL APPROPRIATION ACT, 1951, AND AS FUNDS FOR THE ECONOMIC STABILIZATION AGENCY WERE NOT CONTAINED IN THE SAID ACT, THE PROHIBITION LEGALLY MAY NOT BE SAID TO BE APPLICABLE TO FUNDS OF THE SAID AGENCY. HOWEVER, HAVING IN MIND THAT, BY THE ENACTMENT OF SAID PROVISION, THE PURPOSE OF THE CONGRESS WAS TO RESTRICT GENERALLY PAYMENT TO GOVERNMENT EMPLOYEES FOR ANY ANNUAL LEAVE EARNED DURING THE CALENDAR YEAR 1950 AND UNUSED AT THE CLOSE OF BUSINESS ON JUNE 30, 1951, IT WOULD APPEAR TO BE IN KEEPING WITH THE SPIRIT OF THE ACT IF YOU RECOMMENDED TO EMPLOYEES OF YOUR AGENCY THAT THEIR 1950 ANNUAL LEAVE BE USED BY JUNE 30, 1951. SUCH RECOMMENDATION WOULD APPEAR TO BE PARTICULARLY IN ORDER IN VIEW OF THE FACT THAT THE CONGRESS MIGHT VERY WELL PROHIBIT THE USE OF 1952 FISCAL YEAR FUNDS APPROPRIATED TO YOUR AGENCY FOR THE PAYMENT OF ANY LEAVE WHICH WAS EARNED DURING THE CALENDAR YEAR 1950 AND HAD NOT BEEN USED AT THE CLOSE OF BUSINESS ON JUNE 30, 1951. THE PRINCIPAL QUESTION SUBMITTED IS ANSWERED ACCORDINGLY.

WITH RESPECT TO ADDITIONAL QUESTIONS 1 AND 2, YOU ARE ADVISED THAT SINCE THE FUNDS OF THE AGENCY TO WHICH THE EMPLOYEES TRANSFERRED WOULD BE CHARGEABLE WITH ANY ANNUAL LEAVE ACCRUED DURING THE CALENDAR YEAR 1950 AND UNUSED AT THE CLOSE OF BUSINESS ON JUNE 30, 1951, THE PROVISIONS OF SECTION 1212, SUPRA, WOULD PROHIBIT PAYMENT BY THE NEW AGENCY TO EMPLOYEES OF THE AMOUNT OF ANY UNUSED LEAVE.

WITH RESPECT TO QUESTION 3 IT WAS STATED IN DECISION OF SEPTEMBER 29, 1950, B-98189, (30 COMP. GEN. 128) THAT---

THE PURPOSE SOUGHT TO BE ACCOMPLISHED BY THE ABOVE-QUOTED PROVISION OF LAW IS "TO PREVENT THE ACCUMULATION OF ANNUAL LEAVE DURING THE PRESENT CALENDAR YEAR," QUOTING FROM PAGE 10 OF HOUSE REPORT NO. 1797, ACCOMPANYING H.R. 7786, WHICH BECAME THE PRESENT LAW. FROM A STUDY OF THE LEGISLATIVE HISTORY THERE IS NOT REASONABLE BASIS FOR ANY CONCLUSION OTHER THAN THAT THE CONGRESS INTENDED TO PREVENT GOVERNMENT EMPLOYEES FROM INCREASING THE AMOUNT OF ANNUAL LEAVE THAT HAD ACCUMULATED TO THEM ON JANUARY 1, 1950, BY ANY ANNUAL LEAVE WHICH ACCRUED TO THEM DURING THE CALENDAR YEAR 1950. APPLYING THAT PURPOSE TO QUESTION NO. 3 IT MUST BE CONCLUDED THAT FOR ALL PRACTICAL PURPOSES UNDER EXISTING LAW, FROM THE STANDPOINT OF PAY, THE UNUSED 1950 LEAVE IS LOST TO EMPLOYEES TO WHOM THE PROHIBITION APPLIES, AFTER THE CLOSE OF BUSINESS JUNE 30, 1951, AND IT MAY NOT BE RESTORED BY THE EXPEDIENT OF TRANSFERRING THEREAFTER TO AN AGENCY TO WHICH SECTION 1212 IS NOT APPLICABLE. QUESTION 3, THEREFORE, IS ANSWERED IN THE NEGATIVE.

ADDITIONAL QUESTION NO. 4 IS ANSWERED IN THE NEGATIVE, THERE BEING NO AUTHORITY FOR THE MAKING OF A LUMP-SUM PAYMENT FOR ACCUMULATED AND CURRENT ACCRUED ANNUAL LEAVE UPON THE TRANSFER OF AN EMPLOYEE TO AN AGENCY WHICH IS SUBJECT TO THE SAME LEAVE SYSTEM AS THE ECONOMIC STABILIZATION AGENCY.