A-43791, AUGUST 15, 1932, 12 COMP. GEN. 243

A-43791: Aug 15, 1932

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WHICH IS DERIVED ENTIRELY FROM TERRITORIAL SOURCES AND APPLIED SOLELY TO TERRITORIAL PROJECTS. ARE NOT PAID FROM THE FEDERAL TREASURY. ARE EXEMPTED FROM THE PROVISIONS OF TITLE I OF THE ECONOMY ACT. AS FOLLOWS: I HAVE TO INVITE YOUR ATTENTION TO THE U.S.C. THE SAME IS HEREBY. * * *" FUNDS FOR THE SUPPORT OF THE SCHOOLS ARE REQUISITIONED BY THE GOVERNOR OF THE TERRITORY OF ALASKA THROUGH THIS DEPARTMENT. IT IS UNDERSTOOD. THROUGH THE TREASURERS OF THE SCHOOL DISTRICTS OUTSIDE OF INCORPORATED TOWNS IN THE TERRITORY UNDER WHOSE SUPERVISION FUNDS ARE EXPENDED. THERE WERE 23 TEACHERS EMPLOYED AT MONTHLY RATES RANGING FROM $150.00 TO $215.00. I HAVE TO REQUEST THAT AT AS EARLY A DATE AS PRACTICABLE THE DEPARTMENT BE ADVISED WHETHER UNDER SECTION 105 OF THE SO- CALLED "ECONOMY ACT.

A-43791, AUGUST 15, 1932, 12 COMP. GEN. 243

ECONOMY ACT - ALASKA FUND EMPLOYEES PAID FROM THE ALASKA FUND, WHICH IS DERIVED ENTIRELY FROM TERRITORIAL SOURCES AND APPLIED SOLELY TO TERRITORIAL PROJECTS, ARE NOT PAID FROM THE FEDERAL TREASURY, AND, ACCORDINGLY, ARE EXEMPTED FROM THE PROVISIONS OF TITLE I OF THE ECONOMY ACT.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE INTERIOR, AUGUST 15, 1932:

THERE HAS BEEN RECEIVED YOUR LETTER OF AUGUST 1, 1932, AS FOLLOWS:

I HAVE TO INVITE YOUR ATTENTION TO THE U.S.C. TITLE 48, SECS. 41, 168, IN RELATION TO THE PUBLIC SCHOOLS OF ALASKA SPECIAL FUND, TO WIT:

"THAT SECTION 1 OF AN ACT ENTITLED "AN ACT TO PROVIDE FOR THE CONSTRUCTION AND MAINTENANCE OF ROADS, THE ESTABLISHMENT AND MAINTENANCE OF SCHOOLS, AND THE CARE AND SUPPORT OF INSANE PERSONS IN THE DISTRICT OF ALASKA, AND FOR OTHER PURPOSES," APPROVED JANUARY TWENTY-SEVENTH, NINETEEN HUNDRED AND FIVE, AS AMENDED BY AN ACT APPROVED MAY FOURTEENTH, NINETEEN HUNDRED AND SIX, AND AS FURTHER AMENDED BY AN ACT APPROVED FEBRUARY SIXTH, NINETEEN HUNDRED AND NINE, BE, AND THE SAME IS HEREBY, AMENDED SO AS TO READ AS FOLLOWS:

"SECTION 1. THAT ALL MONEYS DERIVED FROM AND COLLECTED FOR LIQUOR LICENSES, OCCUPATION OR TRADE LICENSES, OUTSIDE OF INCORPORATED TOWNS IN THE TERRITORY OF ALASKA, SHALL BE DEPOSITED IN THE TREASURY DEPARTMENT OF THE UNITED STATES, THERE TO REMAIN AS A SEPARATE AND DISTINCT FUND, TO BE KNOWN AS THE "ALASKA FUND," AND TO BE WHOLLY DEVOTED TO THE PURPOSES HEREINAFTER STATED IN THE TERRITORY OF ALASKA. TWENTY-FIVE PERCENTUM OF SAID FUND, OR SO MUCH THEREOF AS MAY BE NECESSARY, SHALL BE DEVOTED TO THE ESTABLISHMENT AND MAINTENANCE OF PUBLIC SCHOOLS IN SAID TERRITORY; * * *"

FUNDS FOR THE SUPPORT OF THE SCHOOLS ARE REQUISITIONED BY THE GOVERNOR OF THE TERRITORY OF ALASKA THROUGH THIS DEPARTMENT, AND THEREAFTER HANDLED BY HIM, IT IS UNDERSTOOD, THROUGH THE TREASURERS OF THE SCHOOL DISTRICTS OUTSIDE OF INCORPORATED TOWNS IN THE TERRITORY UNDER WHOSE SUPERVISION FUNDS ARE EXPENDED.

FROM PAPERS ON FILE IN THIS DEPARTMENT IT APPEARS THAT DURING THE SCHOOL TERM SEPTEMBER 15, 1931, TO JUNE 15, 1932, NINE MONTHS, THERE WERE 23 TEACHERS EMPLOYED AT MONTHLY RATES RANGING FROM $150.00 TO $215.00, AND 12 JANITORS AT MONTHLY RATES RANGING FROM $10.00 TO $90.00.

IN ORDER THAT THE GOVERNOR OF THE TERRITORY MAY BE PROPERLY ADVISED AS TO HIS DUTIES IN THE PREMISES, I HAVE TO REQUEST THAT AT AS EARLY A DATE AS PRACTICABLE THE DEPARTMENT BE ADVISED WHETHER UNDER SECTION 105 OF THE SO- CALLED "ECONOMY ACT," APPROVED JUNE 30, 1932, HE WILL BE REQUIRED TO DEDUCT 8 1/3 PERCENT FROM THE SALARIES OF THE SCHOOL TEACHERS AND JANITORS EMPLOYED IN CONNECTION WITH THE PUBLIC SCHOOLS OF ALASKA, AND PAID FROM THE ALASKA FUND.

SECTION 104 (A) DEFINES OFFICERS AND EMPLOYEES AS---

SEC. 104. WHEN USED IN THIS TITLE---

(A) THE TERMS "OFFICER" AND "EMPLOYEE" MEAN ANY PERSON RENDERING SERVICES IN OR UNDER ANY BRANCH OR SERVICE OF THE UNITED STATES GOVERNMENT OR THE GOVERNMENT OF THE DISTRICT OF COLUMBIA, BUT DO NOT INCLUDE * * * (7) PUBLIC OFFICIALS AND EMPLOYEES WHOSE COMPENSATION IS DERIVED FROM ASSESSMENTS ON BANKS AND/OR IS NOT PAID FORM THE FEDERAL TREASURY; * * *

THE SECTION OF THE U.S.C. QUOTED IN YOUR COMMUNICATION IS TAKEN FROM THE ACT OF MARCH 3, 1913, 37 STAT. 728, WHICH, IN ADDITION TO THE PORTION QUOTED IN YOUR SUBMISSION, CONTAINS THE FOLLOWING:

* * * TEN PERCENTUM OF SAID FUND SHALL BE, AND IS HEREBY, APPROPRIATED AND AUTHORIZED TO BE EXPENDED FOR THE RELIEF OF PERSONS IN ALASKA WHO ARE INDIGENT AND INCAPACITATED THROUGH NONAGE, OLD AGE, SICKNESS, OR ACCIDENT; AND ALL THE RESIDUE OF SAID FUND SHALL BE DEVOTED TO THE CONSTRUCTION AND MAINTENANCE OF WAGON ROADS, BRIDGES, AND TRAILS IN SAID TERRITORY: PROVIDED, THAT THE CLERK OF THE COURT OF EACH JUDICIAL DIVISION OF SAID TERRITORY IS AUTHORIZED, AND HE IS HEREBY DIRECTED, WHENEVER CONSIDERED NECESSARY, TO CALL UPON THE UNITED STATES MARSHAL OF SAID JUDICIAL DIVISION TO AID IN THE COLLECTION OF SAID LICENSE MONEYS BY DESIGNATING REGULAR OR SPECIAL DEPUTIES OF HIS OFFICE TO ACT AS TEMPORARY LICENSE INSPECTORS, AND IT SHALL BE THE DUTY OF SAID UNITED STATES MARSHAL TO RENDER SUCH AID; AND THE SAID REGULAR OR SPECIAL DEPUTIES WHILE ACTUALLY ENGAGED IN THE PERFORMANCE OF THIS DUTY SHALL RECEIVE THE SAME FEES AND ALLOWANCES AND BE PAID IN THE SAME MANNER AS WHEN PERFORMING THEIR REGULAR DUTIES.

THAT AT THE END OF EACH FISCAL QUARTER THE SECRETARY OF THE TREASURY OF THE UNITED STATES SHALL DIVIDE THE AMOUNT OF SAID TEN PERCENTUM OF SAID FUND SO RECEIVED DURING THE QUARTER JUST ENDED INTO FOUR EQUAL PARTS, AND TRANSMIT TO EACH OF THE FOUR UNITED STATES DISTRICT JUDGES IN ALASKA ONE OF SAID EQUAL AMOUNTS.

THAT EACH OF SAID JUDGES IS HEREBY AUTHORIZED TO EXPEND SO MUCH OF THE MONEY RECEIVED BY HIM UNDER THIS ACT AS MAY, IN HIS DISCRETION, BE REQUIRED FOR THE RELIEF OF THOSE PERSONS IN HIS DIVISION WHO ARE INCAPACITATED THROUGH NONAGE, OLD AGE, SICKNESS, OR ACCIDENT, AND WHO ARE INDIGENT AND UNABLE TO ASSIST AND PROTECT THEMSELVES:PROVIDED, THAT EACH JUDGE SHALL QUARTERLY SUBMIT TO THE SECRETARY OF THE TREASURY AN ITEMIZED STATEMENT, WITH PROPER VOUCHERS, OF ALL EXPENDITURES MADE BY HIM UNDER THIS ACT, AND HE SHALL AT THE TIME TRANSMIT A COPY OF SAID STATEMENT TO THE GOVERNOR OF THE TERRITORY: PROVIDED FURTHER, THAT ANY UNEXPENDED BALANCE REMAINING IN THE HANDS OF ANY JUDGE AT THE END OF ANY QUARTER SHALL BE RETURNED TO THE SECRETARY OF THE TREASURY OF THE UNITED STATES, AND BY HIM DEPOSITED IN THE SAID "ALASKA FUND," AND THE SAID SUM SHALL BE SUBSEQUENTLY DEVOTED, FIRST, TO MEETING ANY ACTUAL REQUIREMENTS FOR THE CARE AND RELIEF OF SUCH PERSONS AS ARE PROVIDED FOR IN THIS ACT IN ANY OTHER DIVISION IN SAID TERRITORY WHEREIN THE AMOUNT ALLOTTED FOR THAT PURPOSE HAS PROVED INSUFFICIENT; AND, SECOND, IF THERE SHALL BE ANY REMAINDER THEREOF, SAID REMAINDER SHALL BE DEVOTED TO THE CONSTRUCTION AND MAINTENANCE OF WAGON ROADS, BRIDGES, AND TRAILS IN SAID TERRITORY.

IT WILL THUS BE SEEN THAT THE ALASKA FUND IS DERIVED ENTIRELY FROM TERRITORIAL SOURCES AND IS TO BE APPLIED SOLELY TO TERRITORIAL PROJECTS. NO PORTION THEREOF EVER REVERTS TO THE FEDERAL GOVERNMENT. FURTHERMORE, IF ANY PART OF THE AMOUNT THEREOF AUTHORIZED TO BE DEVOTED TO THE ESTABLISHMENT AND MAINTENANCE OF PUBLIC SCHOOLS WERE TO BE IMPOUNDED UNDER THE ECONOMY ACT, THE AMOUNT SO IMPOUNDED WOULD, UNDER THE TERMS OF THE ACT, BE "RETURNED TO THE TREASURY," THAT IS, PUT BACK INTO THE "ALASKA FUND," AS THE MONEY NEVER HAD BEEN IN THE GENERAL FUND OF THE TREASURY. THEREFORE, THE APPLICATION OF TITLE I OF THE ECONOMY ACT TO THE EMPLOYEES HERE IN QUESTION WOULD NOT TEND IN ANY WAY TO FURTHER THE OBJECT OR PURPOSE OF SAID TITLE. ACCORDINGLY, NOTWITHSTANDING THAT THE FEDERAL TREASURY IS DESIGNATED AS A TEMPORARY DEPOSITORY FOR THE ALASKA FUND, I HAVE TO ADVISE THAT EMPLOYEES AND OFFICERS PAID FROM THAT FUND ARE NOT PAID FROM THE FEDERAL TREASURY WITHIN THE MEANING OF THE ECONOMY ACT AND, THEREFORE, ARE EXEMPTED FROM THE PROVISIONS OF TITLE I OF THE ECONOMY ACT.