A-60551, MARCH 20, 1935, 14 COMP. GEN. 703

A-60551: Mar 20, 1935

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IT IS UNDERSTOOD AND ASSUMED THAT SUCH ACTION WAS TO GIVE EFFECT TO THE PERCENTAGE REDUCTION REQUIRED BY THE ECONOMY ACT. THE RATE OF RENTAL AND SUBSISTENCE ALLOWANCES WILL BE SUBJECT TO EXECUTIVE ORDER UNDER THE JOINT SERVICE PAY ACT. REQUESTING DECISION WHETHER RENTAL ALLOWANCE OF $20 PER ROOM PER MONTH AND SUBSISTENCE ALLOWANCE AT THE RATE OF 60 CENTS PER ALLOWANCE PER DAY IN THE CASE OF COMMISSIONED OFFICERS WILL BE APPROVED FOR THE PERIOD APRIL 1. THERE SHALL BE NO SUCH REDUCTION" WILL BE CONSIDERED PERMANENT LEGISLATION. IS LOWER THAN SUCH INDEX FOR THE BASE PERIOD. OR SUCH PORTION THEREOF DURING WHICH THIS TITLE IS IN EFFECT: PROVIDED. THE FOREGOING SECTION WAS AMENDED BY SECTION 21 (A) (2).

A-60551, MARCH 20, 1935, 14 COMP. GEN. 703

RENTAL AND SUBSISTENCE ALLOWANCES - NAVY AS EXECUTIVE ORDER 6769 OF JUNE 30, 1934, FIXING THE RENTAL AND SUBSISTENCE ALLOWANCES FOR COMMISSIONED OFFICERS FOR THE FISCAL YEAR 1935 CITED BOTH THE JOINT SERVICE PAY ACT AND THE ECONOMY ACTS, AS AMENDED, AND FIXED THE ALLOWANCE AT 5 PERCENT LESS THAN THE MAXIMUM, IT IS UNDERSTOOD AND ASSUMED THAT SUCH ACTION WAS TO GIVE EFFECT TO THE PERCENTAGE REDUCTION REQUIRED BY THE ECONOMY ACT, AS AMENDED, AND AS PUBLIC RESOLUTION NO. 3 OF FEBRUARY 13, 1935, PROHIBITS ANY PERCENTAGE REDUCTION IN COMPENSATION OR ALLOWANCES AFTER APRIL 1, 1935, THE MAXIMUM RENTAL AND SUBSISTENCE ALLOWANCES MAY BE PAID FROM APRIL 1 TO JUNE 30, 1935. AFTER JUNE 30, 1935, THE RATE OF RENTAL AND SUBSISTENCE ALLOWANCES WILL BE SUBJECT TO EXECUTIVE ORDER UNDER THE JOINT SERVICE PAY ACT.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE NAVY, MARCH 20, 1935:

THERE HAS BEEN RECEIVED YOUR LETTER OF FEBRUARY 26, 1935, REQUESTING DECISION WHETHER RENTAL ALLOWANCE OF $20 PER ROOM PER MONTH AND SUBSISTENCE ALLOWANCE AT THE RATE OF 60 CENTS PER ALLOWANCE PER DAY IN THE CASE OF COMMISSIONED OFFICERS WILL BE APPROVED FOR THE PERIOD APRIL 1, 1935, TO JUNE 30, 1935, AND ALSO WHETHER THAT PROVISION IN SECTION 2 OF THE JOINT RESOLUTION OF FEBRUARY 13, 1934,"AND AFTER MARCH 31, 1935, THERE SHALL BE NO SUCH REDUCTION" WILL BE CONSIDERED PERMANENT LEGISLATION.

YOUR SUBMISSION RAISES THE QUESTION OF THE EFFECT OF THE ECONOMY ACT UPON SECTIONS 5 AND 6 OF THE ACT OF JUNE 10, 1922, 42 STAT. 628, WHICH AUTHORIZED THE PRESIDENT OF THE UNITED STATES TO FIX THE VALUE OF RENTAL AND SUBSISTENCE ALLOWANCES FOR COMMISSIONED OFFICERS EACH FISCAL YEAR AT RATES NOT IN EXCESS OF THE MAXIMUM RATES OF $20 PER ROOM PER MONTH AND 60 CENTS PER ALLOWANCE PER DAY FOR SUBSISTENCE. SECTION 3 (B), TITLE II, OF THE ACT OF MARCH 20, 1933, 48 STAT. 13, ROVIDES:

THE PRESIDENT SHALL ANNOUNCE BY EXECUTIVE ORDER THE INDEX FIGURE FOR THE BASE PERIOD AND FOR EACH SUBSEQUENT PERIOD DETERMINED BY HIM UNDER PARAGRAPH (A) OF THIS SECTION. THE PERCENTAGE, IF ANY, BY WHICH THE COST OF LIVING INDEX FOR ANY SIX MONTHS' PERIOD, AS PROVIDED IN PARAGRAPH (A) OF THIS SECTION, IS LOWER THAN SUCH INDEX FOR THE BASE PERIOD, SHALL BE THE PERCENTAGE OF REDUCTION APPLICABLE UNDER SECTION 2 (B) OF THIS TITLE IN DETERMINING COMPENSATION TO BE PAID DURING THE FOLLOWING SIX MONTHS' PERIOD, OR SUCH PORTION THEREOF DURING WHICH THIS TITLE IS IN EFFECT: PROVIDED, THAT SUCH PERCENTAGE OF REDUCTION (INCLUDING REDUCTIONS MADE UNDER ANY EXISTING LAW, REGULATION, OR EXECUTIVE ORDER, IN THE BASE OF SUBSISTENCE AND RENTAL ALLOWANCES FOR THE SERVICES MENTIONED IN THE PAY ACT OF JUNE 10, 1922) SHALL NOT EXCEED 15 PERCENTUM.

THE FOREGOING SECTION WAS AMENDED BY SECTION 21 (A) (2), TITLE II, OF THE ACT OF MARCH 28, 1934, 48 STAT. 521, BY STRIKING OUT THE 15 PERCENTUM AND SUBSTITUTING THEREFOR "10 PERCENTUM DURING THE PORTION OF THE FISCAL YEAR 1934, BEGINNING FEBRUARY 1, 1934, AND ENDING JUNE 30, 1934, AND SHALL NOT EXCEED 5 PERCENTUM DURING THE FISCAL YEAR ENDING JUNE 30, 1935.'

SECTION 2 OF PUBLIC RESOLUTION NO. 3, FEBRUARY 13, 1935, 49 STAT.-- , FURTHER AMENDED SECTION 3 (B) OF THE ACT OF MARCH 20, 1933, BY STRIKING OUT THE WORDS "SHALL NOT EXCEED 5 PERCENTUM DURING THE FISCAL YEAR ENDING JUNE 30, 1935," AND INSERTING IN LIEU THEREOF "SHALL NOT DURING THE PORTION OF THE FISCAL YEAR PRIOR TO APRIL 1, 1935, EXCEED 5 PERCENTUM AND AFTER MARCH 31, 1935, THERE SHALL BE NO SUCH REDUCTION.'

EXECUTIVE ORDER NO. 6769 OF JUNE 30, 1934, PROVIDES:

BY VIRTUE OF AND PURSUANT TO THE AUTHORITY VESTED IN ME BY SECTIONS 5 AND 6 OF THE ACT OF JUNE 10, 1922 (CH. 212, 42 STAT. 628) AS AMENDED BY SECTION 3 OF THE ACT OF MARCH 20, 1933 (CH. 3, 48 STAT. 13) AS AMENDED BY SECTION 21 OF THE ACT OF MARCH 28, 1934 (PUBLIC NO. 141, 73D CONG.), IT IS ORDERED THAT THE FOLLOWING RATES BE, AND THEY ARE HEREBY, MADE EFFECTIVE FOR THE FISCAL YEAR ENDING JUNE 30, 1935, FOR THE RENTAL AND SUBSISTENCE ALLOWANCES OF OFFICERS OF THE VARIOUS SERVICES ENTITLED THERETO:

FOR ONE SUBSISTENCE ALLOWANCE, 57 CENTS PER DAY.

FOR ONE RENTAL ALLOWANCE FOR ONE ROOM, $19 PER MONTH.

THE RATES HAVING THUS BEEN FIXED AT 5 PERCENT BELOW THE STATUTORY MAXIMUM, IT IS UNDERSTOOD AND ASSUMED THE ACTION WAS TO GIVE EFFECT TO THE REQUIREMENTS OF SECTION 3 (B), TITLE II, OF THE ACT OF MARCH 20, 1933, AS AMENDED AND EFFECTIVE FOR THE FISCAL YEAR 1935, AND INASMUCH AS SAID SECTION AS AMENDED BY SECTION 2 OF PUBLIC RESOLUTION NO. 3, OF FEBRUARY 13, 1935, PROHIBITS ANY REDUCTION IN RENTAL OR SUBSISTENCE ALLOWANCES DURING THE FISCAL YEAR 1935 AFTER MARCH 31, 1935, IT WILL BE PROPER FOR THE PERIOD FROM APRIL 1, TO JUNE 30, 1935, TO PAY THE MAXIMUM RENTAL AND SUBSISTENCE ALLOWANCE PRESCRIBED BY SECTIONS 5 AND 6 OF THE JOINT SERVICE PAY ACT OF JUNE 10, 1922.

WITH RESPECT TO YOUR SECOND QUESTION, THE WORDS "AND AFTER MARCH 31, 1935, THERE SHALL BE NO SUCH REDUCTION" RELATE TO THE PERCENTAGE REDUCTION PRESCRIBED BY THE ECONOMY ACT, AS AMENDED, AND, ACCORDINGLY, DO NOT PROHIBIT THE PRESIDENT PRESCRIBING RATES OF RENTAL AND SUBSISTENCE ALLOWANCES BEGINNING JULY 1, 1935, IN ACCORDANCE WITH SECTIONS 5 AND 6 OF THE JOINT SERVICE PAY ACT, THE PROVISIONS OF THE ECONOMY ACT BEING LIMITED TO THE FISCAL YEAR 1935.