B-126478, JANUARY 30, 1956, 35 COMP. GEN. 436

B-126478: Jan 30, 1956

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EVEN THOUGH MONIES ORIGINALLY PROVIDED FOR THE ESTABLISHMENT OF THE FUND HAVE BEEN RETURNED TO THE TREASURY AND ITS OPERATIONS HAVE SINCE THEN BEEN FINANCED EXCLUSIVELY BY COLLECTIONS FROM PRIVATE PARTIES WHO EMPLOY THE WORKERS. 1956: REFERENCE IS MADE TO LETTER OF DECEMBER 28. THE FUND WAS PROVIDED TO FINANCE CERTAIN EXPENDITURES INCURRED IN THE ADMINISTRATION OF TITLE V OF THE AGRICULTURAL ACT OF 1949. SECTION 322 OF THE ECONOMY ACT OF 1932 PROVIDES IN PART AS FOLLOWS: HEREAFTER NO APPROPRIATION BE OBLIGATED OR EXPENDED FOR THE RENT OF ANY BUILDING OR PART OF A BUILDING TO BE OCCUPIED FOR GOVERNMENT PURPOSES AT A RENTAL IN EXCESS OF THE PER ANNUM RATE OF 15 PER CENTUM OF THE FAIR MARKET VALUE OF THE RENTED PREMISES AT DATE OF THE LEASE UNDER WHICH THE PREMISES ARE TO BE OCCUPIED BY THE GOVERNMENT NOR FOR ALTERATIONS.

B-126478, JANUARY 30, 1956, 35 COMP. GEN. 436

REVOLVING FUNDS - "FARM LABOR SUPPLY REVOLVING FUND" - APPLICABILITY OF LIMITATIONS RESPECTING REPAIRS AND IMPROVEMENTS TO RENTED PREMISES THE " FARM LABOR SUPPLY REVOLVING FUND" ESTABLISHED BY THE SUPPLEMENTAL APPROPRIATION ACT, 1952, TO FINANCE EXPENDITURES FOR THE IMPORTATION OF MEXICAN AGRICULTURAL WORKERS INTO THE UNITED STATES, REPRESENTS AN "APPROPRIATION" WITHIN THE MEANING OF SECTION 322 OF THE ECONOMY ACT OF 1932 SO AS TO BE SUBJECT TO THE LIMITATIONS ON REPAIRS AND IMPROVEMENTS OF RENTED PREMISES, EVEN THOUGH MONIES ORIGINALLY PROVIDED FOR THE ESTABLISHMENT OF THE FUND HAVE BEEN RETURNED TO THE TREASURY AND ITS OPERATIONS HAVE SINCE THEN BEEN FINANCED EXCLUSIVELY BY COLLECTIONS FROM PRIVATE PARTIES WHO EMPLOY THE WORKERS.

TO THE SECRETARY OF LABOR, JANUARY 30, 1956:

REFERENCE IS MADE TO LETTER OF DECEMBER 28, 1955, FROM THE ACTING SECRETARY OF LABOR, REQUESTING A DECISION AS TO THE APPLICABILITY OF SECTION 322 OF THE ECONOMY ACT OF 1932, 47 STAT. 412 (40 U.S.C. 278A), TO THE " FARM LABOR SUPPLY REVOLVING FUND" ESTABLISHED BY THE SUPPLEMENTAL APPROPRIATION ACT, 1952, 65 STAT. 741. THE FUND WAS PROVIDED TO FINANCE CERTAIN EXPENDITURES INCURRED IN THE ADMINISTRATION OF TITLE V OF THE AGRICULTURAL ACT OF 1949, AS ADDED BY PUBLIC LAW 78, 82D CONGRESS, 65 STAT. 119, 7 U.S.C. 1461-1468, AUTHORIZING THE IMPORTATION OF MEXICAN AGRICULTURAL WORKERS INTO THE UNITED STATES.

SECTION 322 OF THE ECONOMY ACT OF 1932 PROVIDES IN PART AS FOLLOWS:

HEREAFTER NO APPROPRIATION BE OBLIGATED OR EXPENDED FOR THE RENT OF ANY BUILDING OR PART OF A BUILDING TO BE OCCUPIED FOR GOVERNMENT PURPOSES AT A RENTAL IN EXCESS OF THE PER ANNUM RATE OF 15 PER CENTUM OF THE FAIR MARKET VALUE OF THE RENTED PREMISES AT DATE OF THE LEASE UNDER WHICH THE PREMISES ARE TO BE OCCUPIED BY THE GOVERNMENT NOR FOR ALTERATIONS, IMPROVEMENTS, AND REPAIRS OF THE RENTED PREMISES IN EXCESS OF 25 PER CENTUM OF THE AMOUNT OF THE RENT FOR THE FIRST YEAR OF THE RENTAL TERM, OR FOR THE RENTAL TERM IF LESS THAN ONE YEAR * * *

IT APPEARS THAT IN THE ESTABLISHMENT OF THE SEVERAL RECEPTION CENTERS AT APPROPRIATE LOCATIONS ALONG THE MEXICAN BORDER, YOUR DEPARTMENT ENCOUNTERED CONSIDERABLE DIFFICULTY IN SECURING ADEQUATE FACILITIES. THE NATURE OF THE OPERATION REQUIRED THAT THE LOCALE BE ON THE OUTSKIRTS OF THE CITIES SELECTED. IT IS STATED THAT THIS CIRCUMSTANCE PRACTICALLY ELIMINATED ANY POSSIBILITY OF BEING SELECTIVE AND THAT, IN SOME CASES, YOUR DEPARTMENT WAS FORCED TO ACCEPT COMPLETELY INADEQUATE BUILDINGS AND FACILITIES. IT IS FURTHER STATED THAT IN ORDER TO MAINTAIN THESE RENTED PREMISES IN A HABITABLE AND SUITABLE CONDITION IT NOW IS EVIDENT THAT THE AMOUNT OF MONEY REQUIRED IS IN EXCESS OF 25 PER CENTUM OF THE FIRST YEAR'S RENT.

IT FURTHER APPEARS THAT THE APPROPRIATED MONEYS ORIGINALLY PROVIDED FOR THE ESTABLISHMENT OF THE FUND WERE RETURNED TO THE GENERAL FUND OF THE TREASURY ON APRIL 2, 1953, AND SINCE THAT DATE THE OPERATION HAS BEEN FINANCED EXCLUSIVELY THROUGH COLLECTIONS FROM THE GROWERS WHO MAKE USE OF THE WORKERS.

THE PERTINENT PROVISIONS OF TITLE V OF THE AGRICULTURAL ACT OF 1949 ( PUBLIC LAW 78), 7 U.S. CODE 1462, READ AS FOLLOWS:

SEC. 502. NO WORKERS SHALL BE MADE AVAILABLE UNDER THIS TITLE TO ANY EMPLOYER UNLESS SUCH EMPLOYER ENTERS INTO AN AGREEMENT WITH THE UNITED STATES---

(2) TO REIMBURSE THE UNITED STATES FOR ESSENTIAL EXPENSES, NOT INCLUDING SALARIES OR EXPENSES OF REGULAR DEPARTMENT OR AGENCY PERSONNEL, INCURRED BY IT FOR THE TRANSPORTATION AND SUBSISTENCE OF WORKERS UNDERTHIS TITLE IN AMOUNTS NOT TO EXCEED $15 PER WORKER * * *.

THE PERTINENT PROVISION OF THE SUPPLEMENTAL APPROPRIATION ACT, 1952 READS AS FOLLOWS:

FARM LABOR SUPPLY REVOLVING FUND:FOR WORKING CAPITAL FOR THE " FARM LABOR SUPPLY REVOLVING FUND," WHICH IS HEREBY ESTABLISHED TO PROVIDE FOR PAYMENT OF TRANSPORTATION, SUBSISTENCE, AND ALL OTHER EXPENSES, FOR WHICH THE UNITED STATES IS TO BE REIMBURSED PURSUANT TO PARAGRAPHS (1) AND (2) OF SECTION 502 OF THE ACT OF JULY 12, 1951 ( PUBLIC LAW 78), $1,000,000, TO REMAIN AVAILABLE UNTIL EXPENDED: PROVIDED, THAT SAID FUND SHALL BE CREDITED WITH ALL AMOUNTS RECEIVED BY THE UNITED STATES PURSUANT TO SAID PARAGRAPHS.

IN VIEW OF THE FACT THAT THE $1,000,000 ORIGINALLY PROVIDED FOR THE ESTABLISHMENT OF THE FUND WAS RETURNED TO THE GENERAL FUND OF THE TREASURY, AND THAT FROM THEN ON THE OPERATION HAS BEEN FINANCED EXCLUSIVELY THROUGH COLLECTIONS FROM THE GROWERS WHO MAKE USE OF THE WORKERS A DECISION IS REQUIRED AS TO WHETHER THE FUND IS TO BE CONSIDERED AN "APPROPRIATION" WITHIN THE MEANING OF SECTION 322 OF THE ECONOMY ACT SO AS TO BE SUBJECT TO THE LIMITATIONS THEREBY IMPOSED.

THE PAYMENTS RECEIVED FROM THE GROWERS WHO MAKE USE OF THE WORKERS REPRESENT MONEYS COLLECTED FOR THE USE OF THE UNITED STATES AND IN THE ABSENCE OF SPECIFIC STATUTORY AUTHORITY WOULD BE REQUIRED TO BE DEPOSITED INTO THE GENERAL FUND OF THE TREASURY AS MISCELLANEOUS RECEIPTS UNDER SECTION 3617, REVISED STATUTES. IN THIS CASE, THE SPECIFIC STATUTORY AUTHORITY TO USE THE MONEYS IS SUPPLIED BY THE REFERRED-TO LEGISLATION ESTABLISHING THE FUND. THE RESULT OF SUCH LEGISLATION IS TO CONTINUOUSLY APPROPRIATE SUCH COLLECTIONS FOR THE AUTHORIZED EXPENDITURES FOR WHICH THE FUND IS AVAILABLE. CF B-67175, JULY 16, 1947. THUS, WE CONCLUDE THAT THE " FARM LABOR SUPPLY REVOLVING FUND" DOES REPRESENT AN "APPROPRIATION" WITHIN THE MEANING OF SECTION 322 OF THE ECONOMY ACT.

ACCORDINGLY, IN THE ABSENCE OF SPECIFIC STATUTORY AUTHORITY, THE FUND MAY NOT BE CHARGED WITH THE COST OF REPAIRS AND IMPROVEMENTS TO THE RENTED PREMISES WHICH EXCEED THE LIMITATIONS IMPOSED BY SECTION 322 OF THE ECONOMY ACT.