A-49751, JULY 6, 1933, 13 COMP. GEN. 3

A-49751: Jul 6, 1933

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IS NOT SUBJECT TO THE PERCENTAGE REDUCTION REQUIRED BY SECTION 2. IT IS UNDERSTOOD YOUR QUESTION RELATES EXCLUSIVELY TO PERSONNEL EMPLOYED FOR SERVICE UNDER THE DIRECTION OF THE FEDERAL EMERGENCY ADMINISTRATOR OF PUBLIC WORKS AND NOT TO PERSONNEL OF OTHER FEDERAL AGENCIES WHO MAY BE EMPLOYED DIRECTLY OR INDIRECTLY IN CONNECTION WITH THE PUBLIC WORKS PROGRAM AND WHOSE COMPENSATION MAY BE PAID OUT OF FUNDS ALLOTTED FROM THE PUBLIC WORKS APPROPRIATIONS. THE PRESIDENT IS HEREBY AUTHORIZED TO CREATE A FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS. APPOINT AND FIX THE COMPENSATION OF SUCH EXPERTS AND SUCH OTHER OFFICERS AND EMPLOYEES AS ARE NECESSARY TO CARRY OUT THE PROVISIONS OF THIS TITLE.

A-49751, JULY 6, 1933, 13 COMP. GEN. 3

ECONOMY ACT, AMENDED - COMPENSATION REDUCTION - FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS THE COMPENSATION OF EMPLOYEES APPOINTED OR EMPLOYED FOR SERVICE UNDER THE DIRECTION OF THE FEDERAL EMERGENCY ADMINISTRATOR OF PUBLIC WORKS, PURSUANT TO SECTION 201 (A) (B) OF THE NATIONAL INDUSTRIAL RECOVERY ACT OF JUNE 16, 1933, 48 STAT. 200, 201, IS NOT SUBJECT TO THE PERCENTAGE REDUCTION REQUIRED BY SECTION 2, TITLE II OF THE ACT OF MARCH 20, 1933.

COMPTROLLER GENERAL MCCARL TO THE ADMINISTRATOR, FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS, JULY 6, 1933:

CONSIDERATION HAS BEEN GIVEN TO YOUR LETTER OF JUNE 29, 1933, AS FOLLOWS:

I WOULD VERY MUCH APPRECIATE A DECISION FROM YOUR OFFICE REGARDING THE APPLICATION OF THE FIFTEEN PERCENT CUT TO THE SALARIES PAID THE PERSONNEL EMPLOYED UNDER THE DIRECTION OF THE PUBLIC WORKS ADMINISTRATOR.

IT IS UNDERSTOOD YOUR QUESTION RELATES EXCLUSIVELY TO PERSONNEL EMPLOYED FOR SERVICE UNDER THE DIRECTION OF THE FEDERAL EMERGENCY ADMINISTRATOR OF PUBLIC WORKS AND NOT TO PERSONNEL OF OTHER FEDERAL AGENCIES WHO MAY BE EMPLOYED DIRECTLY OR INDIRECTLY IN CONNECTION WITH THE PUBLIC WORKS PROGRAM AND WHOSE COMPENSATION MAY BE PAID OUT OF FUNDS ALLOTTED FROM THE PUBLIC WORKS APPROPRIATIONS, AND THIS DECISION MUST BE REGARDED AS SO LIMITED.

SECTION 201 (A) (B) OF THE NATIONAL INDUSTRIAL RECOVERY ACT OF JUNE 16, 1933, 48 STAT. 200, 201, PROVIDES AS FOLLOWS:

(A) TO EFFECTUATE THE PURPOSES OF THIS TITLE, THE PRESIDENT IS HEREBY AUTHORIZED TO CREATE A FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS, ALL THE POWERS OF WHICH SHALL BE EXERCISED BY A FEDERAL EMERGENCY ADMINISTRATOR OF PUBLIC WORKS (HEREAFTER REFERRED TO AS THE "ADMINISTRATOR"), AND TO ESTABLISH SUCH AGENCIES, TO ACCEPT AND UTILIZE SUCH VOLUNTARY AND UNCOMPENSATED SERVICES, TO APPOINT, WITHOUT REGARD TO THE CIVIL SERVICE LAWS, SUCH OFFICERS AND EMPLOYEES, AND TO UTILIZE SUCH FEDERAL OFFICERS AND EMPLOYEES, AND, WITH THE CONSENT OF THE STATE, SUCH STATE AND LOCAL OFFICERS AND EMPLOYEES AS HE MAY FIND NECESSARY, TO PRESCRIBE THEIR AUTHORITIES, DUTIES, RESPONSIBILITIES, AND TENURE, AND, WITHOUT REGARD TO THE CLASSIFICATION ACT OF 1923, AS AMENDED, TO FIX THE COMPENSATION OF ANY OFFICERS AND EMPLOYEES SO APPOINTED. THE PRESIDENT MAY DELEGATE ANY OF HIS FUNCTIONS AND POWERS UNDER THIS TITLE TO SUCH OFFICERS, AGENTS, AND EMPLOYEES AS HE MAY DESIGNATE OR APPOINT.

(B) THE ADMINISTRATOR MAY, WITHOUT REGARD TO THE CIVIL SERVICE LAWS OR THE CLASSIFICATION ACT OF 1923, AS AMENDED, APPOINT AND FIX THE COMPENSATION OF SUCH EXPERTS AND SUCH OTHER OFFICERS AND EMPLOYEES AS ARE NECESSARY TO CARRY OUT THE PROVISIONS OF THIS TITLE; AND MAY MAKE SUCH EXPENDITURES (INCLUDING EXPENDITURES FOR PERSONAL SERVICES AND RENT AT THE SEAT OF GOVERNMENT AND ELSEWHERE, FOR LAW BOOKS AND BOOKS OF REFERENCE, AND FOR PAPER, PRINTING AND BINDING) AS ARE NECESSARY TO CARRY OUT THE PROVISIONS OF THIS TITLE.

SECTION 2, TITLE II OF THE ACT OF MARCH 20, 1933, 48 STAT. 12, PROVIDES:

FOR THAT PORTION OF THE FISCAL YEAR 1933 BEGINNING WITH THE FIRST DAY OF THE CALENDAR MONTH FOLLOWING THE MONTH DURING WHICH THIS ACT IS ENACTED, AND FOR THE FISCAL YEAR ENDING JUNE 30, 1934, THE COMPENSATION OF EVERY OFFICER OR EMPLOYEE SHALL BE DETERMINED AS FOLLOWS:

(A) THE COMPENSATION WHICH SUCH OFFICER OR EMPLOYEE WOULD RECEIVE UNDER THE PROVISIONS OF ANY EXISTING LAW, SCHEDULE, REGULATION, EXECUTIVE ORDER, OR DEPARTMENTAL ORDER SHALL FIRST BE DETERMINED AS THOUGH THIS TITLE (EXCEPT SECTION 4) HAD NOT BEEN ENACTED.

(B) THE COMPENSATION AS DETERMINED UNDER SUBPARAGRAPH (A) OF THIS SECTION SHALL BE REDUCED BY THE PERCENTAGE, IF ANY, DETERMINED IN ACCORDANCE WITH SECTION 3 OF THIS TITLE.

AS THE PROVISIONS OF SECTION 201 (A) AND (B) OF THE NATIONAL INDUSTRIAL RECOVERY ACT OF JUNE 16, 1933, SPECIFICALLY EXCEPT OFFICERS AND EMPLOYEES APPOINTED UNDER THE TERMS OF THAT ACT FROM THE CIVIL SERVICE LAWS AND THE CLASSIFICATION ACT OF 1923, AS AMENDED, AND AUTHORIZE THE PRESIDENT AND/OR THE ADMINISTRATOR OF PUBLIC WORKS TO FIX THE COMPENSATION OF SUCH OFFICERS AND EMPLOYEES, IT FOLLOWS THAT AT THE DATE OF THE APPROVAL OF THE ACT, JUNE 16, 1933, THERE WAS NO EXISTING LAW, SCHEDULE, EXECUTIVE ORDER, OR DEPARTMENTAL ORDER BY WHICH THE COMPENSATION OF SUCH OFFICERS AND EMPLOYEES COULD BE DETERMINED. ACCORDINGLY, THERE IS NO BASIC COMPENSATION UPON WHICH TO APPLY THE PERCENTAGE REDUCTION ESTABLISHED BY THE EXECUTIVE ORDER ISSUED UNDER SECTION 3, TITLE II, OF THE ACT OF MARCH 20, 1933. SEE DECISIONS OF JUNE 20, 1933, A-49565, 12 COMP. GEN. 655, AND JUNE 28, 1933, A-49652. I HAVE TO ADVISE, THEREFORE, THAT THE PERCENTAGE REDUCTIONS UNDER TITLE II OF THE ACT OF MARCH 20, 1933, ARE NOT APPLICABLE TO THE OFFICERS AND EMPLOYEES HERE IN QUESTION.