A-84833, APRIL 17, 1937, 16 COMP. GEN. 940

A-84833: Apr 17, 1937

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ARE FOR DEPOSIT IN A SPECIAL DEPOSIT ACCOUNT AS DIRECTED BY THE STATUTE. ARE FOR PAYMENT THEREFROM ONLY UPON ORDER OF THE SECRETARY OF LABOR. IS AS FOLLOWS: PUBLIC ACT NO. 846. DIRECTLY TO THE EMPLOYEES WHO HAVE BEEN PAID LESS THAN MINIMUM RATES OF PAY AS SET FORTH IN SUCH CONTRACTS AND ON WHOSE ACCOUNTS SUCH SUMS WERE WITHHELD OR RECOVERED * * *.'. ALL AMOUNTS CREDITED TO SUCH TRUST FUND ACCOUNTS ARE HEREBY APPROPRIATED AND SHALL BE DISBURSED IN COMPLIANCE WITH THE TERMS OF THE TRUST: * * *.'. IN VIEW OF THE FACT THAT PAYMENTS ARE NOW BEING MADE BY EMPLOYERS TO THE SECRETARY OF LABOR. AN EARLY REPLY WILL BE APPRECIATED. YOU ARE ADVISED THAT THESE FUNDS SHOULD BE DEPOSITED AS DIRECTED BY THE STATUTE IN A SPECIAL DEPOSIT ACCOUNT OF THE DISBURSING OFFICER.

A-84833, APRIL 17, 1937, 16 COMP. GEN. 940

UNDERPAYMENTS OF WAGES - WALSH-HEALEY ACT - DEPOSIT AND DISPOSITION OF MONEYS WITHHELD OR RECOVERED MONEYS WITHHELD OR RECOVERED AS DEDUCTIONS, REBATES, REFUNDS, OR UNDERPAYMENTS OF WAGES, UNDER AUTHORITY OF SECTION 2 OF THE WALSH HEALEY ACT, 49 STAT. 2037, ARE FOR DEPOSIT IN A SPECIAL DEPOSIT ACCOUNT AS DIRECTED BY THE STATUTE, AND NOT AS TRUST FUNDS, AND ARE FOR PAYMENT THEREFROM ONLY UPON ORDER OF THE SECRETARY OF LABOR.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE SECRETARY OF LABOR, APRIL 17, 1937:

YOUR LETTER OF MARCH 30, 1937, IS AS FOLLOWS:

PUBLIC ACT NO. 846, 74TH CONGRESS, APPROVED JUNE 30, 1936, COMMONLY REFERRED TO AS THE WALSH-HEALEY ACT, PROVIDES IN SECTION 2:

"* * * ALL SUMS WITHHELD OR RECOVERED AS DEDUCTIONS, REBATES, REFUNDS, OR UNDERPAYMENTS OF WAGES SHALL BE HELD IN A SPECIAL DEPOSIT ACCOUNT AND SHALL BE PAID, ON ORDER OF THE SECRETARY OF LABOR, DIRECTLY TO THE EMPLOYEES WHO HAVE BEEN PAID LESS THAN MINIMUM RATES OF PAY AS SET FORTH IN SUCH CONTRACTS AND ON WHOSE ACCOUNTS SUCH SUMS WERE WITHHELD OR RECOVERED * * *.'

A QUESTION HAS ARISEN AS TO WHETHER SUCH SUMS WITHHELD OR RECOVERED BY THE SECRETARY OF LABOR SHALL BE DEPOSITED IN THE SPECIAL DEPOSIT ACCOUNT OF MR. GUY F. ALLEN, CHIEF DISBURSING OFFICER, OR SHALL BE DEPOSITED IN THE TREASURY AS TRUST FUNDS IN ACCORDANCE WITH SECTION 20 (A) OF THE PERMANENT APPROPRIATION REPEAL ACT, 1934, APPROVED JUNE 26, 1934, WHICH READS IN PART AS FOLLOWS:

"* * * HEREAFTER MONEYS RECEIVED BY THE GOVERNMENT AS TRUSTEE ANALOGOUS TO THE FUNDS NAMED IN SUBSECTIONS (B) AND (C) OF THIS SECTION, NOT OTHERWISE HEREIN PROVIDED FOR, EXCEPT MONEYS RECEIVED BY THE COMPTROLLER OF THE CURRENCY OF THE FEDERAL DEPOSIT INSURANCE CORPORATION, SHALL LIKEWISE BE DEPOSITED INTO THE TREASURY AS TRUST FUNDS WITH APPROPRIATE TITLE, AND ALL AMOUNTS CREDITED TO SUCH TRUST FUND ACCOUNTS ARE HEREBY APPROPRIATED AND SHALL BE DISBURSED IN COMPLIANCE WITH THE TERMS OF THE TRUST: * * *.'

IN VIEW OF THE FACT THAT PAYMENTS ARE NOW BEING MADE BY EMPLOYERS TO THE SECRETARY OF LABOR, PURSUANT TO THE REGULATIONS OF THE WALSH HEALEY ACT, AN EARLY REPLY WILL BE APPRECIATED.

THE EXPRESS TERMS OF THE WALSH-HEALEY ACT OF JUNE 30, 1936, THAT THE FUNDS BE DEPOSITED IN A ,SPECIAL DEPOSIT ACCOUNT," CONSTITUTES SPECIFIC LEGISLATION TAKING PRECEDENCE OVER THE GENERAL PROVISIONS OF SECTION 20 (A) OF THE PERMANENT APPROPRIATION REPEAL ACT OF JUNE 26, 1934, 48 STAT. 1233. ACCORDINGLY, YOU ARE ADVISED THAT THESE FUNDS SHOULD BE DEPOSITED AS DIRECTED BY THE STATUTE IN A SPECIAL DEPOSIT ACCOUNT OF THE DISBURSING OFFICER, TO BE PAID THEREFROM ONLY UPON YOUR ORDER.