A-61600, June 25, 1935, 14 COMP. GEN. 916

A-61600: Jun 25, 1935

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1935 are receipted for by the State they become State funds. The salary of which is paid from the funds loaned or granted by the Federal Government. Reference is made to the provisions of section 212 of the Economy Act of June 30. The majority of the stock of which is owned by the United States. May receive compensation for civil employment on a State project which is financed in whole or in part from funds allocated to the State by the Federal government under the recently enacted work-relief act. There is a doubt as to the similarity of circumstances. It is accordingly recommended that a decision by the Comptroller General be requested on the question presented. Is to be expended for work under each particular project.

A-61600, June 25, 1935, 14 COMP. GEN. 916

COMPENSATION-DOUBLE-RETIRED MARINE CORPS OFFICER HOLDING STATE OFFICE After the Federal funds loaned or granted to a State under authority of section 1 of the Emergency Relief Appropriation Act of 1935, dated April 8, 1935 are receipted for by the State they become State funds, and in the absence of a condition of the loan or grant specifically prescribed to the contrary there would be DO Federal law precluding a retired Marine Corps officer from holdling an office or position created by a State, the salary of which is paid from the funds loaned or granted by the Federal Government.

Comptroller General McCarl to the Secretary of the Navy, June 25, 1935:

There has been received your communication of April 23, 1935, forwarding for consideration the following request for decision dated April 16, 1935, from the Paymaster General of the United States Marine Corps:

1. Reference is made to the provisions of section 212 of the Economy Act of June 30, 1932 (47 Stat. 406), reading as follows:

"(a) After the date of the enactment of this act, no person holding a civilian office or position, appointive or elective, under the United States Government or the municipal government of the District of Columbia or under any corporation, the majority of the stock of which is owned by the United States, shall be entitled, during the period of such incumbency, to retired pay from the United States for or on account of services as a commissioned officer in any of the services mentioned in the Pay Adjustment Act of 1922 (U.S.C., title 37), at a rate in excess of an amount which when combined with the annual rate of compensation from such civilian office or position, makes the total rate from both sources more than $3,000; and when the retired pay amounts to or exceeds the rate of $3,000 per annum such person shall be entitled to the pay of civilian civilian office or position or the retired pay, whichever he may elect. As used in this section, the term 'retired pay' shall be construed to include credits for all service that lawfully may enter into the computation thereof.

"(b) This section shall not apply to any person whose retired pay plus civilian pay amounts to less than $3,000; Provided: That this section shall not apply to regular or emergency commissioned officers retired for disability incurred in combat with an enemy of the United States."

2. A question has been presented to this office as to whether a retired officer of the Marine Corps, retired for causes other than disability incurred in combat with an enemy of the United States, whose retired pay does not exceed $3,000, per annum, may receive compensation for civil employment on a State project which is financed in whole or in part from funds allocated to the State by the Federal government under the recently enacted work-relief act, to the extent that his retired" pay when added to his civil compensation may exceed $3,000, per annum.

3. The ruling of the Comptroller General, in decision of February 10, 1934 (A-53436), has been noted in this connection, but there is a doubt as to the similarity of circumstances. It is accordingly recommended that a decision by the Comptroller General be requested on the question presented.

Section 1 of the Emergency Relief Appropriation Act of 1935, dated April 8, 1935, 49 Stat. 115, provides in part as follows:

* * * this appropriation shall be available for the following classes of projects, * * * (g) loans or grants, or both, for projects of States, Territories, Possessions, including subdivisions and agencies thereof municipalities, and the District of Columbia, and self-liquidating projects of public bodies thereof, where, in the determination of the President, not less than twenty-five per centum of the loan or the grant, or the aggregate thereof, is to be expended for work under each particular project, $900,000,000; * * *

Whether the restrictions and limitations of Federal statutes, including section 212 of the Economy Act quoted in your letter, will apply to expenditures made by a State or other political subdivision from funds loaned or granted by the Federal Government under this statutory authority, will depend of course on the terms and conditions of the particular loan or grant. However, after the loaned or granted Federal funds are receipted for by the State or other political subdivision, they become State funds (decision of Jan. 2, 1935, A-56783), and in the absence of a condition of the loan or grant specifically prescribed to the contrary, there would be no Federal law precluding a retired Marine Corps officer from holding an office or position created by a State or other political subdivision, the salary of which is paid from the funds loaned or granted by the Federal Government under the authority of the said act. The question presented is answered accordingly.