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B-114824, NOV 27, 1973, 53 COMP GEN 364

B-114824 Nov 27, 1973
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REGULATIONS - RETROACTIVE - ADMINISTRATIVE POLICY REVISION UNDER THE WELL ESTABLISHED RULE THAT SUBSTANTIVE STATUTORY REGULATIONS HAVE THE EFFECT OF LAW AND CANNOT BE WAIVED. THERE IS NO OBJECTION TO THE PROSPECTIVE ADOPTION AND APPLICATION OF A PROVISION FOR VARYING THE ACTUAL NET SALES PROCEEDS REQUIREMENT UNDER LIMITED AND CLEARLY DEFINED CIRCUMSTANCES AND SUBJECT TO A DETERMINATION THAT THE PROVISION IS CONSISTENT WITH THE PURPOSES OF THE ACT. THE CURRENT REGULATIONS FOR THIS PROGRAM ARE PUBLISHED IN PART 1472 OF TITLE 7. THAT "IF PAYMENTS ARE UTILIZED AS A MEANS OF PRICE SUPPORT. THE NATIONAL WOOL ACT WAS ENACTED AS THE BEST WAY TO PROVIDE INCOME PROTECTION TO WOOL GROWERS WHILE AT THE SAME TIME LEAVING THE MARKETING PROCESS IN THE HANDS OF WOOL GROWERS AND THE TRADE WITHOUT GOVERNMENT INVOLVEMENT.

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B-114824, NOV 27, 1973, 53 COMP GEN 364

REGULATIONS - RETROACTIVE - ADMINISTRATIVE POLICY REVISION UNDER THE WELL ESTABLISHED RULE THAT SUBSTANTIVE STATUTORY REGULATIONS HAVE THE EFFECT OF LAW AND CANNOT BE WAIVED, THE COMMODITY CREDIT CORPORATION LACKS AUTHORITY TO ADOPT A PROPOSED AMENDMENT TO REGULATIONS PROMULGATED UNDER THE NATIONAL WOOL ACT TO THE EXTENT THAT WOULD PERMIT RETROACTIVE WAIVER OF THE REGULATORY REQUIREMENT THAT WOOL PRICE SUPPORT PAYMENTS BE BASED ON ACTUAL NET SALES PROCEEDS. HOWEVER, IN VIEW OF THE BROAD ADMINISTRATIVE DISCRETION AFFORDED BY SECTION 706 OF THE ACT IN FORMULATING PROGRAM TERMS AND CONDITIONS, THERE IS NO OBJECTION TO THE PROSPECTIVE ADOPTION AND APPLICATION OF A PROVISION FOR VARYING THE ACTUAL NET SALES PROCEEDS REQUIREMENT UNDER LIMITED AND CLEARLY DEFINED CIRCUMSTANCES AND SUBJECT TO A DETERMINATION THAT THE PROVISION IS CONSISTENT WITH THE PURPOSES OF THE ACT.

TO THE SECRETARY OF AGRICULTURE, NOVEMBER 27, 1973:

BY LETTER DATED JULY 6, 1973, THE ASSISTANT SECRETARY OF AGRICULTURE FOR INTERNATIONAL AFFAIRS AND COMMODITY PROGRAMS REQUESTED OUR OPINION WHETHER A PROPOSED AMENDMENT AS HEREINAFTER DESCRIBED MAY BE MADE TO THE REGULATIONS GOVERNING THE COMMODITY CREDIT CORPORATION'S PROGRAM FOR PRICE SUPPORT PAYMENTS ON MARKETINGS OF SHORN WOOL AND UNSHORN LAMBS PURSUANT TO THE AUTHORITY CONTAINED IN THE NATIONAL WOOL ACT OF 1954, AS AMENDED, 7 U.S.C. 1781-1787. THE CURRENT REGULATIONS FOR THIS PROGRAM ARE PUBLISHED IN PART 1472 OF TITLE 7, CODE OF FEDERAL REGULATIONS.

THE ASSISTANT SECRETARY'S LETTER READS, IN PART, AS FOLLOWS:

THE (NATIONAL WOOL) ACT PROVIDES IN PERTINENT PART THAT "THE SECRETARY OF AGRICULTURE SHALL, THROUGH THE COMMODITY CREDIT CORPORATION, SUPPORT THE PRICES OF WOOL AND MOHAIR, RESPECTIVELY, TO PRODUCERS THEREOF BY MEANS OF LOANS, PURCHASES, PAYMENTS, OR OTHER OPERATIONS" (7 U.S.C. 1782(A)), AND THAT "IF PAYMENTS ARE UTILIZED AS A MEANS OF PRICE SUPPORT, THE PAYMENTS SHALL BE SUCH AS THE SECRETARY OF AGRICULTURE DETERMINES TO BE SUFFICIENT, WHEN ADDED TO THE NATIONAL AVERAGE PRICE RECEIVED BY PRODUCERS, TO GIVE PRODUCERS A NATIONAL AVERAGE RETURN FOR THE COMMODITY EQUAL TO THE SUPPORT PRICE LEVEL THEREFOR ***" (7 U.S.C. 1783). THE ACT FURTHER PROVIDES THAT "THE AMOUNTS, TERMS, AND CONDITIONS OF THE PRICE SUPPORT OPERATIONS *** SHALL BE DETERMINED OR APPROVED BY THE SECRETARY OF AGRICULTURE" (7 U.S.C. 1785).

PRIOR TO 1954, CCC SUPPORTED WOOL PRICES THROUGH LOANS AND PURCHASES, AS A RESULT OF WHICH CCC TOOK INTO INVENTORY A CONSIDERABLE PART OF OUR DOMESTIC WOOL PRODUCTION. THE NATIONAL WOOL ACT WAS ENACTED AS THE BEST WAY TO PROVIDE INCOME PROTECTION TO WOOL GROWERS WHILE AT THE SAME TIME LEAVING THE MARKETING PROCESS IN THE HANDS OF WOOL GROWERS AND THE TRADE WITHOUT GOVERNMENT INVOLVEMENT. AS WAS POINTED OUT DURING COMMITTEE HEARINGS ON THE LEGISLATION, IT WAS PROPOSED, IN ORDER TO PROVIDE AN INCENTIVE TO EACH PRODUCER TO OBTAIN THE MAXIMUM PRICE FOR HIS WOOL AND THEREBY REDUCE THE GOVERNMENT COST OF THE PROGRAM, TO BASE EACH GROWER'S PAYMENT ON THE AMOUNT REALIZED FROM THE MARKETING OF HIS WOOL. ACCORDINGLY, THE PROGRAM REGULATIONS FOR THE MARKETING YEARS FROM 1955 THROUGH 1973 HAVE PROVIDED THAT THE WOOL PAYMENTS WILL BE BASED ON THE NET PROCEEDS REALIZED BY EACH GROWER FROM THE SALE OF HIS WOOL (7 CFR 1472.1308), AT A RATE OF PAYMENT WHICH IS THE PERCENTAGE OF THE NATIONAL AVERAGE PRICE PER POUND RECEIVED BY PRODUCERS IN THE SAME MARKETING YEAR WHICH IS REQUIRED TO BRING SUCH NATIONAL AVERAGE PRICE UP TO THE SUPPORT PRICE FOR THE WOOL (7 CFR 1472.1305(B)). IN ORDER TO DETERMINE THE NET SALES PROCEEDS, THE REGULATIONS REQUIRE THE PRODUCER'S APPLICATION TO BE SUPPORTED BY A FINAL ACCOUNTING FOR THE WOOL, EVIDENCED BY SALES DOCUMENTS WHICH MAY NOT INCLUDE CONTRACTS TO SELL OR TENTATIVE OR PRO FORMA SETTLEMENTS (7 CFR 1472.1310), AND THE SUPPORTING SALES DOCUMENT TO SHOW, AMONG OTHER THINGS, THE NET AMOUNT RECEIVED BY THE PRODUCER FOR THE WOOL (7 CFR 1472.1310(B)).

A PROMISE TO PAY, EVEN THOUGH SUPPORTED BY A PROMISSORY NOTE OR A POSTDATED CHECK, HAS NOT BEEN ACCEPTED AS THE EQUIVALENT OF A PAYMENT WITHIN THE MEANING OF THE REGULATIONS GOVERNING THE COMPUTATION OF INCENTIVE PAYMENTS. IN CERTAIN SITUATIONS BEYOND A PRODUCER'S CONTROL, THIS POLICY CAN, AND IN FACT RECENTLY DID, LEAD TO INEQUITIES IN THE PROGRAM WHICH WOULD RESULT IN A FRUSTRATION OF THE PURPOSE OF THE PROGRAM. FOR EXAMPLE, DURING 1969 AND EARLY 1970, A NUMBER OF WOOL PRODUCERS IN COLORADO, IDAHO AND WYOMING DELIVERED WOOL TO A MARKETING AGENCY UNDER ONE OF SEVERAL TYPES OF AGREEMENTS WHEREBY THE PRODUCER DELIVERED HIS CROP OF WOOL TO THE AGENCY, RELINQUISHED TITLE TO THE WOOL, AND RECEIVED AN ADVANCE AGAINST EITHER A SPECIFIED PRICE, OR A PRICE TO BE AGREED TO AT A LATER DATE, OR THE MARKET VALUE AT THE TIME OF RECEIPT OF THE WOOL. THE BALANCE WAS TO BE PAID ON DELIVERY, UNDER ONE TYPE OF CONTRACT, OR WHEN THE AGENCY SOLD THE WOOL, UNDER THE OTHERS. ADDITION, IN SOME INSTANCES THE WOOL WAS TURNED OVER TO THE AGENCY UNDER A MARKETING AGREEMENT PURSUANT TO WHICH AN INITIAL ADVANCE WAS MADE AND THE PROCEEDS FROM THE SALE OF THE WOOL WERE TO BE ACCOUNTED FOR AFTER THE WOOL WAS SOLD. UNDER SUCH AN AGREEMENT, TITLE TO THE WOOL DID NOT PASS AT TIME OF DELIVERY. FOR ALL 1970 TRANSACTIONS, THE BALANCE WAS PAID BY NOTE IN DECEMBER OF 1970, TRANSMITTED WITH A FINAL ACCOUNTING ON THE WOOL AND AN EXPLANATION THAT ALTHOUGH THE AGENCY WAS UNABLE TO SELL A CONSIDERABLE PROPORTION OF THE WOOL, IT WAS COMPLETING THE PURCHASE IN ORDER THAT THE PRODUCERS MIGHT APPLY FOR THEIR INCENTIVE PAYMENTS. EACH OF THE STATEMENTS OF ACCOUNT INDICATED FINAL PAYMENT BY CHECK, HOWEVER, RATHER THAN BY NOTE AND AS A RESULT INCENTIVE PAYMENTS WERE MADE ON THE NET PROCEEDS SET FORTH IN THE STATEMENTS OF ACCOUNT. IN ALL CASES, THE NOTES WERE UNPAID AND UNCOLLECTIBLE AT AND SUBSEQUENT TO MATURITY. BECAUSE OF THE ADMINISTRATIVE POLICY IN INTERPRETING THE COMPUTATION PROVISIONS OF THE REGULATIONS DESCRIBED HEREINABOVE, IT WAS DETERMINED THAT INCENTIVE PAYMENTS PROPERLY SHOULD HAVE BEEN MADE ONLY ON THAT PART OF THE PURCHASE PRICE WHICH WAS RECEIVED IN THE FORM OF A CASH ADVANCE AND THE UNCOLLECTIBLE NOTES SHOULD NOT HAVE BEEN CONSIDERED A PART OF THE NET SALES PROCEEDS. CONSEQUENTLY, ON LEARNING THE FACTS IN THESE CASES, CLAIM WAS MADE AGAINST EACH OF THESE PRODUCERS FOR REPAYMENT OF THE AMOUNTS IMPROPERLY PAID. THIS HAS RESULTED IN MANY INSTANCE IN CONSIDERABLE HARDSHIP FOR THE PRODUCERS.

IN VIEW OF THE FOREGOING, IT IS PROPOSED TO AMEND THE REGULATIONS TO PERMIT THE COMPUTATION OF INCENTIVE PAYMENTS, UNDER 7 CFR 1472.1208 (APPLICABLE TO THE MARKETING YEARS 1966-1970) AND 7 CFR 1472.1308 (APPLICABLE TO THE MARKETING YEARS 1971-1973), TO BE BASED ON EITHER THE NET SALES PROCEEDS RECEIVED BY THE PRODUCER OR, IN THE EVENT THE PRODUCER DOES NOT REALIZE THE AMOUNT PROVIDED FOR IN THE SALES DOCUMENT, AS FOR EXAMPLE WHERE THE PURCHASER HAS BECOME INSOLVENT BETWEEN THE TIME ALL THE CONDITIONS OF A MARKETING AS PRESCRIBED BY 7 CFR 1472.1307 HAVE BEEN MET AND THE TIME PAYMENT IS DUE (UNDER A NOTE, CHECK OR SOME OTHER CONTRACTUAL ARRANGEMENT), THE LOWER OF (1) THE NET SALES PROCEEDS BASED ON THE PRICE THE PRODUCER SHOULD HAVE RECEIVED HAD THERE BEEN NO DEFAULT OR (2) THE FAIR MARKET VALUE AT THE TIME OF SALE OF THE WOOL. IT IS FURTHER PROPOSED TO AMEND THE REGULATIONS TO PERMIT RECONSIDERATION, UNDER THE AMENDED SECTIONS GOVERNING COMPUTATION OF PAYMENTS, OF ANY APPLICATION PREVIOUSLY FILED WITH RESPECT TO A MARKETING WHICH TOOK PLACE WITHIN THE CURRENT MARKETING YEAR OR THE THREE MARKETING YEARS PRIOR THERETO.

THE COMMODITY CREDIT CORPORATION (CCC) REGULATIONS GOVERNING THE WOOL PRICE SUPPORT PROGRAMS, AS PUBLISHED IN THE CODE OF FEDERAL REGULATIONS, RECITE AS AUTHORITY FOR THEIR ISSUANCE SECTIONS 4 AND 5 OF THE COMMODITY CREDIT CORPORATION CHARTER ACT, AS AMENDED, 15 U.S.C. 714B, 714C, AND THE NATIONAL WOOL ACT. SECTION 4(D) OF THE CHARTER ACT, 15 U.S.C. 714BD), AUTHORIZES THE CORPORATION TO "ADOPT, AMEND, AND REPEAL BY LAWS, RULES, AND REGULATIONS GOVERNING THE MANNER IN WHICH ITS BUSINESS MAY BE CONDUCTED AND THE POWERS VESTED IN IT MAY BE EXERCISED." SECTION 706 OF THE NATIONAL WOOL ACT, 7 U.S.C. 1785, PROVIDES IN PART, QUOTING FROM THE U.S. CODE:

EXCEPT AS OTHERWISE PROVIDED IN THIS CHAPTER, THE AMOUNTS, TERMS, AND CONDITIONS OF THE PRICE SUPPORT OPERATIONS AND THE EXTENT TO WHICH SUCH OPERATIONS ARE CARRIED OUT SHALL BE DETERMINED OR APPROVED BY THE SECRETARY OF AGRICULTURE. *** THE FACTS CONSTITUTING THE BASIS FOR ANY OPERATION, PAYMENT, OR AMOUNT THEREOF WHEN OFFICIALLY DETERMINED IN CONFORMITY WITH APPLICABLE REGULATIONS PRESCRIBED BY THE SECRETARY SHALL BE FINAL AND CONCLUSIVE AND SHALL NOT BE REVIEWABLE BY ANY OTHER OFFICER OR AGENCY OF THE GOVERNMENT.

UNDER WELL-ESTABLISHED PRINCIPLES APPLIED IN NUMEROUS DECISIONS OF OUR OFFICE, REGULATIONS PROMULGATED PURSUANT TO EXPRESS STATUTORY AUTHORITY, SUCH AS THE CCC REGULATIONS HERE INVOLVED, HAVE THE FORCE AND EFFECT OF LAW AND CANNOT BE RETROACTIVELY WAIVED. SEE, E.G., 51 COMP. GEN. 162, 166 (1971); 43 ID. 31, 33 (1963); 37 ID. 820 (1958), AND DECISIONS CITED THEREIN.

OF PARTICULAR INTEREST HERE IS OUR 1958 DECISION TO THE SECRETARY OF AGRICULTURE, 37 COMP. GEN. 820, WHEREIN WE CONCLUDED THAT THERE WAS NO AUTHORITY TO WAIVE SUBSTANTIVE REGULATIONS GOVERNING THE SOIL BANK ACREAGE RESERVE PROGRAM, NOTWITHSTANDING THAT SECTION 485.240 OF THE SOIL BANK REGULATIONS PURPORTED TO AUTHORIZE WAIVER OF ANY PROVISION OF SUCH REGULATIONS. OUR DECISION STATED:

WHILE SECTION 124 (OF THE SOIL BANK ACT) GRANTS BROAD DISCRETIONARY AUTHORITY FOR PRESCRIBING REGULATIONS, IT IS NOT DISSIMILAR TO NUMEROUS PROVISIONS IN OTHER LEGISLATIVE ACTS AUTHORIZING THE ISSUANCE OF REGULATIONS. IT IS WELL ESTABLISHED IN ADMINISTRATIVE LAW THAT VALID STATUTORY REGULATIONS HAVE THE FORCE AND EFFECT OF LAW, ARE GENERAL IN THEIR APPLICATION, AND MAY NO MORE BE WAIVED THAN PROVISIONS OF THE STATUTES THEMSELVES. REGULATIONS MUST CONTAIN A GUIDE OR STANDARD ALIKE TO ALL INDIVIDUALS SIMILARLY SITUATED, SO THAT ANYONE INTERESTED MAY DETERMINE HIS OWN RIGHTS OR EXEMPTIONS THEREUNDER. THE ADMINISTRATIVE AGENCY MAY NOT EXERCISE DISCRETION TO ENFORCE THEM AGAINST SOME AND TO REFUSE TO ENFORCE THEM AGAINST OTHERS. SEE UNITED STATES V. RIPLEY, 7 PET. 18; UNITED STATES V. DAVIS, 132 U.S. 334; FEDERAL CROP INSURANCE CORPORATION V. MERRILL, 332 U.S. 380; SHERIDAN WYOMING COAL CO. V. KRUG, 172 F.2D 282, 31 COMP. GEN. 193, AND DECISIONS CITED THEREIN.

SECTION 485.240 OF THE REGULATIONS UNDER CONSIDERATION ATTEMPTS TO CREATE IN THE ADMINISTRATOR, COMMODITY STABILIZATION SERVICE, THE RIGHT TO WAIVE THE REQUIREMENTS OF ANY PROVISION OF THE REGULATIONS OR THE AGREEMENTS IN HARDSHIP CASES EVEN THOUGH SUCH ACTION MIGHT GIVE UP VESTED RIGHTS OF THE GOVERNMENT; MIGHT PERMIT PAYMENTS CONTRARY TO THE REGULATIONS OR AGREEMENT; WOULD BE TAKEN ON A CASE-BY-CASE BASIS; AND WOULD BE RETROACTIVE RATHER THAN PROSPECTIVE IN THAT THE ADMINISTRATOR, AFTER NONCOMPLIANCE, WOULD DETERMINE WHETHER TO WAIVE THE PERTINENT REGULATION. SUCH AUTHORITY IS SO CONTRARY TO THE PRINCIPLES REFERRED TO ABOVE AND NORMALLY ASSOCIATED WITH STATUTORY REGULATIONS THAT WE ARE CONVINCED THAT SUCH DISCRETIONARY AUTHORITY WAS NOT CONTEMPLATED BY THE CONGRESS IN ENACTING SECTION 124 OF THE SOIL BANK ACT AND NUMEROUS SIMILAR PROVISIONS IN OTHER LAWS. WHILE SECTION 103 OF THE SOIL BANK ACT, 7 U.S.C. 1821, AUTHORIZES YOU TO INCLUDE IN THE ACREAGE RESERVE PROGRAM SUCH "TERMS AND CONDITIONS" AS YOU DEEM DESIRABLE TO EFFECTUATE THE PURPOSES OF THE SOIL BANK ACT AND TO FACILITATE THE PRACTICAL ADMINISTRATION OF THE ACREAGE RESERVE PROGRAM, WE DO NOT BELIEVE IT AUTHORIZES YOU TO INCLUDE IN THE REGULATIONS A FURTHER PROVISION AUTHORIZING THE WAIVER ON AN INDIVIDUAL CASE BASIS OF ANY "TERMS AND CONDITIONS" PRESCRIBED IN THE REGULATIONS. IN OUR VIEW, THE AUTHORITY TO REGULATE AND TO INCLUDE IN THE PROGRAM SUCH TERMS AND CONDITIONS AS THE ADMINISTRATOR DEEMS DESIRABLE FOR THE SPECIFIED PURPOSES DOES NOT NECESSARILY IMPLY AUTHORITY TO DISREGARD THOSE TERMS AND CONDITIONS THEREBY CREATING AN UNREGULATED AREA SUBJECT ONLY TO HIS DISCRETION. IF ANY AGENCY REQUIRES AUTHORITY TO WAIVE ITS STATUTORY REGULATIONS, WE BELIEVE THAT SPECIFIC STATUTORY AUTHORITY THEREFOR *** SHOULD BE REQUESTED FROM THE CONGRESS.

SEE ALSO 15 COMP. GEN. 869 (1936), WHEREIN WE DECLINED TO GIVE EFFECT TO A PROVISION IN REGULATIONS IMPLEMENTING THE NATIONAL HOUSING ACT (12 U.S.C. 1701 ET SEQ.) WHICH PURPORTED TO RESERVE AUTHORITY TO WAIVE ANY OTHER PROVISION OF SUCH REGULATIONS. AS NOTED IN OUR 1958 DECISION, SUPRA, THE NATIONAL HOUSING ACT WAS SUBSEQUENTLY AMENDED TO AUTHORIZE WAIVER OF REGULATIONS THEREUNDER.

TURNING TO THE INSTANT MATTER, IT IS PROPOSED TO AMEND THE WOOL PRICE SUPPORT REGULATIONS GOVERNING PAST MARKETING YEARS AND THE PRESENT MARKETING YEAR SO AS TO PERMIT UNDER CERTAIN CIRCUMSTANCES PAYMENTS ON A BASIS OTHER THAN ACTUAL NET SALES PROCEEDS. PROVISION WOULD THEN BE MADE FOR RECONSIDERATION UNDER THE AMENDED REGULATIONS OF APPLICATIONS PREVIOUSLY FILED AND PRESUMABLY REJECTED FOR THE PRESENT MARKETING YEAR AND 3 YEARS PRIOR.

WHATEVER MAY BE THE REASONS FOR THE PARTICULAR APPROACH THUS SUGGESTED, ITS PURPOSE AND EFFECT IS CLEARLY TO PROVIDE FOR WAIVER OF REGULATORY REQUIREMENTS APPLICABLE AT THE TIME TRANSACTIONS WERE CONSUMMATED. ACCORDINGLY, WE MUST CONCLUDE THAT THIS PROPOSAL IS SUBJECT TO THE PRINCIPLES DISCUSSED HEREIN PRECLUDING RETROACTIVE WAIVER. THE INSTANT PROPOSAL IS, IF ANYTHING, MORE TENUOUS THAN THOSE DISAPPROVED IN OUR 1958 AND 1937 DECISIONS, SUPRA, SINCE THERE IS NOTHING IN THE PRESENT WOOL REGULATIONS WHICH EVEN PURPORTS TO RESERVE WAIVER AUTHORITY. OBVIOUSLY THE REQUIREMENT THAT PAYMENTS BE BASED ON ACTUAL NET SALES PROCEEDS IS A SUBSTANTATIVE ELEMENT IN THE PRESENT REGULATIONS. CF. 37 COMP. GEN. 820, 823. THUS, IN ADDITION TO THE DETAILED REQUIREMENTS SET FORTH IN THE REGULATIONS CONCERNING DOCUMENTATION OF NET SALES PROCEEDS, IT IS SPECIFICALLY STATED THAT "CONTRACTS TO SELL AS WELL AS TENTATIVE OR PRO FORMA SETTLEMENTS WILL NOT BE ACCEPTABLE AS SALES DOCUMENTS." 7 CFR SEC 1472.1310. FOR THE FOREGOING REASONS, IT IS OUR OPINION THAT THE PROPOSED REGULATIONS MAY NOT LEGALLY BE ADOPTED TO THE EXTENT THAT THEY WOULD PERMIT RETROACTIVE WAIVER OF THE REQUIREMENT THAT PAYMENTS BE BASED ON ACTUAL NET SALES PROCEEDS. WE MIGHT POINT OUT, HOWEVER, THAT IN VIEW OF THE BROAD ADMINISTRATIVE DISCRETION AFFORDED BY SECTION 706 OF THE NATIONAL WOOL ACT IN FORMULATING PROGRAM TERMS AND CONDITIONS, WE WOULD NOT OBJECT TO PROSPECTIVE ADOPTION (I.E., FOR MARKETING YEARS SUBSEQUENT TO 1973) AND APPLICATION OF A PROVISION FOR VARYING THE ACTUAL NET SALES PROCEEDS REQUIREMENT UNDER LIMITED AND CLEARLY DEFINED CIRCUMSTANCES AND SUBJECT TO A DETERMINATION THAT SUCH PROVISION IS CONSISTENT WITH THE PURPOSES OF THE ACT. SEE 37 COMP. GEN. 820, 822-23; 17 ID. 566, 568 (1938).

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