B-118276, FEBRUARY 16, 1954, 33 COMP. GEN. 360

B-118276: Feb 16, 1954

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IS NOT APPLICABLE TO STATE AGRICULTURAL EXPERIMENT STATIONS AND STATE EXTENSION DIRECTORS. ARE NOT AFFECTED BY THE ACT OF AUG. 15. THEREFORE THE DEPARTMENT OF AGRICULTURE APPROPRIATIONS FOR THE EXTENSION SERVICE ARE NOT AVAILABLE TO REIMBURSE THE POST OFFICE DEPARTMENT FOR THE COST OF MAIL. 1954: REFERENCE IS MADE TO LETTER DATED JANUARY 7. THERE WAS ENCLOSED WITH THE SAID LETTER. IN WHICH THE VIEW IS EXPRESSED THAT EVEN THOUGH THE FREE MAILING PRIVILEGES IN QUESTION WERE EXTENDED TO THE STATE ORGANIZATIONS. THE DEPARTMENT OF AGRICULTURE IS THE DEPARTMENT CONCERNED WITHIN THE MEANING OF PUBLIC LAW 286 AND AS SUCH SHOULD REIMBURSE THE POST OFFICE DEPARTMENT FROM ITS APPROPRIATIONS FOR SUCH MAILINGS.

B-118276, FEBRUARY 16, 1954, 33 COMP. GEN. 360

POST OFFICE DEPARTMENT - MAILS - PENALTY MAIL COSTS THE ACT OF AUG. 15, 1953, WHICH AMENDED THE PENALTY MAIL ACT OF 1948 BY REQUIRING ONLY DEPARTMENTS, AGENCIES, AND ESTABLISHMENTS OF THE GOVERNMENT TO REIMBURSE THE POST OFFICE DEPARTMENT WITH AN EQUIVALENT AMOUNT OF POSTAGE DUE THEREFOR, IS NOT APPLICABLE TO STATE AGRICULTURAL EXPERIMENT STATIONS AND STATE EXTENSION DIRECTORS, SO THAT THE FREE MAILING PRIVILEGES AUTHORIZED FOR SUCH ORGANIZATIONS BY THE ACTS OF MARCH 2, 1887, AND JUNE 30, 1914, ARE NOT AFFECTED BY THE ACT OF AUG. 15, 1953, AND THEREFORE THE DEPARTMENT OF AGRICULTURE APPROPRIATIONS FOR THE EXTENSION SERVICE ARE NOT AVAILABLE TO REIMBURSE THE POST OFFICE DEPARTMENT FOR THE COST OF MAIL.

COMPTROLLER GENERAL WARREN TO THE SECRETARY OF AGRICULTURE, FEBRUARY 16, 1954:

REFERENCE IS MADE TO LETTER DATED JANUARY 7, 1954, FROM THE ASSISTANT SECRETARY OF AGRICULTURE, REQUESTING A DECISION AS TO THE APPLICABILITY OF PUBLIC LAW 286, 83D CONGRESS, 67 STAT. 614, TO THE FREE MAILING PRIVILEGES HELD BY STATE EXTENSION SERVICE DIRECTORS UNDER THE ACT OF JUNE 30, 1914, 38 STAT. 438, 39 U.S.C. 330, AND BY STATE EXPERIMENT STATIONS UNDER SECTION 4 OF THE ACT OF MARCH 2, 1887, 24 STAT. 441, 7 U.S.C. 365. THERE WAS ENCLOSED WITH THE SAID LETTER, A COPY OF LETTER OF OCTOBER 29, 1953, FROM MR. CHARLES R. HOOK, JR., ACTING POSTMASTER GENERAL, TO THE ASSISTANT SECRETARY OF AGRICULTURE, IN WHICH THE VIEW IS EXPRESSED THAT EVEN THOUGH THE FREE MAILING PRIVILEGES IN QUESTION WERE EXTENDED TO THE STATE ORGANIZATIONS, THE DEPARTMENT OF AGRICULTURE IS THE DEPARTMENT CONCERNED WITHIN THE MEANING OF PUBLIC LAW 286 AND AS SUCH SHOULD REIMBURSE THE POST OFFICE DEPARTMENT FROM ITS APPROPRIATIONS FOR SUCH MAILINGS.

SECTION 301 OF THE PENALTY MAIL ACT OF 1948, 62 STAT. 1048, PROVIDES:

ALL ENVELOPES, LABELS, WRAPPERS, CARDS, AND OTHER ARTICLES, BEARING THE INDICIA PRESCRIBED BY LAW FOR MATTER MAILED FREE OF POSTAGE UNDER THE PENALTY PRIVILEGE BY ALL EXECUTIVE DEPARTMENTS AND AGENCIES, ALL INDEPENDENT ESTABLISHMENTS OF THE GOVERNMENT, AND ALL OTHER ORGANIZATIONS AND PERSONS AUTHORIZED BY LAW TO USE THE PENALTY PRIVILEGE, SHALL BE PROCURED OR ACCOUNTED FOR THROUGH THE POSTMASTER GENERAL UNDER SUCH REGULATIONS AS HE SHALL PRESCRIBE. THE HEAD OF SUCH DEPARTMENT, AGENCY, ESTABLISHMENT, OR OTHER ORGANIZATION, OR EACH SUCH PERSON, SHALL SUBMIT TO THE POSTMASTER GENERAL WITHIN SIXTY DAYS AFTER THE CLOSE OF EACH FISCAL YEAR A STATEMENT SHOWING THE NUMBER OF ENVELOPES, LABELS, WRAPPERS, CARDS, AND OTHER ARTICLES BEARING SUCH INDICIA ON HAND AT THE CLOSE OF SUCH FISCAL YEAR.

PUBLIC LAW 286 AMENDED SAID SECTION 301 BY THE ADDITION OF THE FOLLOWING SENTENCE:

BASED ON SUCH ACCOUNTINGS, THERE SHALL BE TRANSFERRED TO THE POST OFFICE DEPARTMENT AS POSTAL REVENUE, OUT OF ANY APPROPRIATIONS OR FUNDS AVAILABLE TO THE DEPARTMENTS, AGENCIES, AND ESTABLISHMENTS CONCERNED, THE EQUIVALENT AMOUNT OF POSTAGE DUE THEREFOR, AS DETERMINED PURSUANT TO REGULATIONS PRESCRIBED BY THE POSTMASTER GENERAL.

IT IS STATED IN THE LETTER OF THE ASSISTANT SECRETARY THAT THE STATE ORGANIZATIONS HERE INVOLVED COMPLY WITH THE INVENTORY REQUIREMENT OF SECTION 301 DIRECTED TO THE "HEAD OF EACH SUCH DEPARTMENT, AGENCY, ESTABLISHMENT, OR OTHER ORGANIZATION, OR EACH SUCH PERSON.' HOWEVER, INASMUCH AS THE NEW SENTENCE AS ADDED BY PUBLIC LAW 286 REQUIRES TRANSFER OF EQUIVALENT AMOUNT OF POSTAGE ONLY IN THE CASE OF "DEPARTMENTS, AGENCIES, AND ESTABLISHMENTS CONCERNED," IT IS STATED TO BE THE VIEW OF YOUR DEPARTMENT THAT THE STATE AGRICULTURAL EXPERIMENT STATIONS AND STATE EXTENSION SERVICE DIRECTORS FALL INTO THE CATEGORY OF "ALL OTHER ORGANIZATIONS AND PERSONS," AND ARE NOT INCLUDED WITHIN THE SCOPE OF PUBLIC LAW 286.

THE AUTHORITY TO MAIL FREE OF CHARGE FOR POSTAGE CORRESPONDENCE, REPORTS, AND BULLETINS RELATING TO AGRICULTURAL EXTENSION WORK WAS GRANTED UNDER THE PROVISIONS OF 39 U.S.C. 330 TO THE COLLEGE OFFICER OR OTHER PERSON CONNECTED WITH EXTENSION DEPARTMENTS OF AGRICULTURAL COLLEGES AS THE SECRETARY OF AGRICULTURE MAY DESIGNATE, AND BY 7 U.S.C. 365 TO STATE AGRICULTURAL EXPERIMENT STATIONS. THESE ORGANIZATIONS, WHILE FINANCED IN PART BY FEDERAL PAYMENTS TO STATES, ARE STATE ORGANIZATIONS AND AS SUCH MUST BE CONSIDERED "OTHER ORGANIZATIONS AND PERSONS," AS USED IN THE FIRST AND SECOND SENTENCES OF SECTION 301 OF THE PENALTY MAIL ACT OF 1948. SINCE THE NEW SENTENCE, AS ADDED BY PUBLIC LAW 286, IS BY ITS TERMS DIRECTED ONLY TO "DEPARTMENTS, AGENCIES, AND ESTABLISHMENTS" WHICH ARE MORE FULLY DESIGNATED IN THE FIRST SENTENCE OF SECTION 301 AS EXECUTIVE DEPARTMENTS AND AGENCIES AND INDEPENDENT ESTABLISHMENTS OF THE GOVERNMENT, REIMBURSEMENT FOR THE COST OF MAIL AUTHORIZED TO BE SENT FREE OF CHARGE OF POSTAGE IS NOT REQUIRED WITH RESPECT TO THE AFOREMENTIONED STATE ORGANIZATIONS. IT THEREFORE FOLLOWS, SINCE REIMBURSEMENT FOR SUCH MAILINGS IS NOT REQUIRED BY PUBLIC LAW 286, THAT APPROPRIATIONS OF THE DEPARTMENT OF AGRICULTURE MAY NOT BE USED TO REIMBURSE THE POST OFFICE DEPARTMENT FOR THE COST THEREOF.

THERE HAS NOT BEEN OVERLOOKED THE ORIGINAL DRAFT OF H.R. 6281 (NOW PUBLIC LAW 286) WHICH CONTAINED LANGUAGE SPECIFICALLY REPEALING THE SECTIONS OF THE ACT OF JUNE 30, 1914, AND THE ACT OF MARCH 2, 1887, HERE IN QUESTION. HOWEVER, H.R. 6281 AS REPORTED OUT BY THE HOUSE COMMITTEE ON POST OFFICE AND CIVIL SERVICE, REPORT NO. 1004, AND AS ENACTED, DID NOT CONTAIN THOSE REPEALING PROVISIONS AND IT IS WELL SETTLED THAT REPEALS BY IMPLICATION WILL NOT BE PRESUMED TO HAVE BEEN INTENDED UNLESS THERE IS A CLEAR INTENT ON THE PART OF THE LEGISLATIVE TO EFFECT SUCH A REPEAL. NO SUCH INTENT TO REPEAL THE FREE MAILING PRIVILEGES HERE INVOLVED IS EVIDENT BUT CONVERSELY IT APPEARS THAT THE INTENT TO REQUIRE REIMBURSEMENT WAS TO EXTEND ONLY TO FEDERAL DEPARTMENTS, AGENCIES, AND ESTABLISHMENTS. THIS INTENT IS INDICATED IN THE AFOREMENTIONED REPORT 1004, WHEREIN IT IS STATED THAT THE LANGUAGE "IN EFFECT REQUIRES ALL GOVERNMENT DEPARTMENTS, AGENCIES, AND ESTABLISHMENTS (INCLUDING GOVERNMENT CORPORATIONS) TO REIMBURSE THE POST OFFICE DEPARTMENT IN AMOUNTS EQUIVALENT TO THE AMOUNT OF POSTAGE ON THEIR PENALTY MAIL.'

FOR THE FOREGOING REASONS, IT IS CONCLUDED THAT PUBLIC LAW 286 IS INAPPLICABLE TO THE FREE MAILING PRIVILEGES HELD BY THE STATE EXTENSION SERVICE DIRECTORS AND THE STATE EXPERIMENT STATIONS, AND THAT NO BASIS EXISTS FOR THE USE OF APPROPRIATIONS OF YOUR DEPARTMENT FOR REIMBURSEMENT TO THE POST OFFICE DEPARTMENT OF THE COST OF MAILINGS BY SAID ORGANIZATIONS.

A COPY OF THIS DECISION IS BEING FORWARDED TODAY TO THE POSTMASTER GENERAL IN VIEW OF HIS INTEREST IN THE MATTER.