A-63485, SEPTEMBER 20, 1935, 15 COMP. GEN. 226

A-63485: Sep 20, 1935

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SALARY PAYMENTS TO EMPLOYEES SO APPOINTED ARE NOT AUTHORIZED. THERE WAS RECEIVED A REPORT GIVING THE TITLE OF THE APPOINTING OFFICER AS "DIRECTOR OF EMPLOYMENT RESEARCH.'. PROVIDES AS FOLLOWS: (B) THE COMMISSION IS AUTHORIZED TO APPOINT AND FIX THE COMPENSATION OF SUCH OFFICERS. APPOINT SUCH OTHER OFFICERS AND EMPLOYEES AS ARE NECESSARY IN THE EXECUTION OF ITS FUNCTIONS AND FIX THEIR SALARIES IN ACCORDANCE WITH THE CLASSIFICATION ACT OF 1923. IT IS A WELL-SETTLED RULE THAT IN THE ABSENCE OF SPECIFIC STATUTORY AUTHORITY THEREFOR. CREDIT WILL BE ALLOWED IN THE ACCOUNTS FOR SALARY PAYMENTS MADE TO EMPLOYEES IN THE DISTRICT OF COLUMBIA HERETOFORE APPOINTED BY A SUBORDINATE IF AND WHEN THERE BE FILED IN THIS OFFICE AN ORDER SIGNED BY THE COMMISSION.

A-63485, SEPTEMBER 20, 1935, 15 COMP. GEN. 226

DELEGATION OF APPOINTING POWER - SALARIES OF EMPLOYEES APPOINTED BY A SUBORDINATE THE AUTHORIZATION TO APPOINT PERSONNEL TO POSITIONS IN THE DISTRICT OF COLUMBIA, VESTED IN THE SECURITIES AND EXCHANGE COMMISSION BY SECTION 4 (B) OF THE SECURITIES AND EXCHANGE ACT OF JUNE 6, 1934, 48 STAT. 885, MAY NOT BE DELEGATED TO A SUBORDINATE IN THE ABSENCE OF SPECIFIC AUTHORITY OF LAW, AND SALARY PAYMENTS TO EMPLOYEES SO APPOINTED ARE NOT AUTHORIZED.

COMPTROLLER GENERAL MCCARL TO THE CHAIRMAN, SECURITIES AND EXCHANGE COMMISSION, SEPTEMBER 20, 1935:

IN RESPONSE TO A REQUEST BY THIS OFFICE FOR CERTAIN INFORMATION FOR USE IN CONNECTION WITH THE AUDIT OF PAY ROLLS OF EMPLOYEES OF THE SECURITIES AND EXCHANGE COMMISSION IN THE DISTRICT OF COLUMBIA, THERE WAS RECEIVED A REPORT GIVING THE TITLE OF THE APPOINTING OFFICER AS "DIRECTOR OF EMPLOYMENT RESEARCH.'

SECTION 4 (B) OF THE SECURITIES AND EXCHANGE ACT OF JUNE 6, 1934, 48 STAT. 885, PROVIDES AS FOLLOWS:

(B) THE COMMISSION IS AUTHORIZED TO APPOINT AND FIX THE COMPENSATION OF SUCH OFFICERS, ATTORNEYS, EXAMINERS, AND OTHER EXPERTS AS MAY BE NECESSARY FOR CARRYING OUT ITS FUNCTIONS UNDER THIS ACT, WITHOUT REGARD TO THE PROVISIONS OF OTHER LAWS APPLICABLE TO THE EMPLOYMENT AND COMPENSATION OF OFFICERS AND EMPLOYEES OF THE UNITED STATES, AND THE COMMISSION MAY, SUBJECT TO THE CIVIL-SERVICE LAWS, APPOINT SUCH OTHER OFFICERS AND EMPLOYEES AS ARE NECESSARY IN THE EXECUTION OF ITS FUNCTIONS AND FIX THEIR SALARIES IN ACCORDANCE WITH THE CLASSIFICATION ACT OF 1923, AS AMENDED.

IT IS A WELL-SETTLED RULE THAT IN THE ABSENCE OF SPECIFIC STATUTORY AUTHORITY THEREFOR, THE APPOINTING POWER VESTED BY LAW IN THE HEADS OF EXECUTIVE DEPARTMENTS AND INDEPENDENT ESTABLISHMENTS MAY NOT BE DELEGATED TO A SUBORDINATE WITHOUT SPECIFIC AUTHORITY OF LAW FOR SUCH DELEGATION. SEE 9 COMP. GEN. 20 AND DECISIONS THEREIN CITED. SEE ALSO DECISION OF JULY 29, 1930, A-32461, AS TO FEDERAL RADIO COMMISSION; DECISION OF OCTOBER 21, 1930, A-33778, AS TO FEDERAL POWER COMMISSION; DECISION OF OCTOBER 29, 1931, A-39122, AS TO BOARD OF MEDIATION; AND THE DECISION OF NOVEMBER 1, 1934, 14 COMP. GEN. 345, AS TO FARM CREDIT ADMINISTRATION, THE LAST CITED DECISION STATING THE RULE APPLICABLE BOTH TO DEPARTMENTAL AND FIELD SERVICE AS FOLLOWS (QUOTING FROM THE SYLLABUS):

UNDER THE TERMS OF SECTION 169, REVISED STATUTES, THE GOVERNOR OF THE FARM CREDIT ADMINISTRATION MAY NOT DELEGATE TO A SUBORDINATE THE POWER OF APPOINTMENT OF DEPARTMENTAL EMPLOYEES, BUT UNDER THE TERMS OF SAID REVISED STATUTES AS AMENDED BY THE ACT OF JUNE 26, 1930 (46 STAT. 817), THE GOVERNOR OF THE FARM CREDIT ADMINISTRATION MAY DELEGATE TO A SUBORDINATE THE POWER OF APPOINTMENT OF ALL FIELD EMPLOYEES. * * *

AS NEITHER THE SECURITIES AND EXCHANGE ACT NOR ANY OTHER STATUTE PROVIDES FOR THE DELEGATION TO THE DIRECTOR OF EMPLOYMENT RESEARCH--- A SUBORDINATE OF THE COMMISSION--- OR TO ANY OTHER SUBORDINATE, OF THE AUTHORITY VESTED BY LAW IN THE COMMISSION TO APPOINT EMPLOYEES OF THE COMMISSION, THIS OFFICE MAY NOT ALLOW CREDIT IN THE ACCOUNTS OF THE DISBURSING OFFICER FOR SALARY PAYMENTS TO EMPLOYEES APPOINTED BY A SUBORDINATE OF THE COMMISSION TO POSITIONS IN THE DISTRICT OF COLUMBIA.

IN VIEW OF THE APPARENT ADMINISTRATIVE MISUNDERSTANDING IN THIS MATTER, CREDIT WILL BE ALLOWED IN THE ACCOUNTS FOR SALARY PAYMENTS MADE TO EMPLOYEES IN THE DISTRICT OF COLUMBIA HERETOFORE APPOINTED BY A SUBORDINATE IF AND WHEN THERE BE FILED IN THIS OFFICE AN ORDER SIGNED BY THE COMMISSION, OR BY ITS CHAIRMAN, CONFIRMING ALL SUCH APPOINTMENTS.

CREDIT WILL NOT BE ALLOWED IN THE ACCOUNTS FOR SALARY PAYMENTS TO EMPLOYEES HEREAFTER APPOINTED TO POSITIONS IN THE DISTRICT OF COLUMBIA BY A SUBORDINATE OF THE COMMISSION.