B-128746, AUGUST 8, 1956, 36 COMP. GEN. 100

B-128746: Aug 8, 1956

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ON BONDED INDEBTEDNESS FOR ALASKA PUBLIC WORKS CONSTRUCTION IS NOT APPLICABLE TO CONSTRUCTION UNDER THE ALASKA PUBLIC WORKS ACT OF AUGUST 24. 1956: REFERENCE IS MADE TO LETTER DATED JULY 26. THE CONCERN OF YOUR DEPARTMENT IS WHETHER THE ABOVE LIMITATION ON BONDED INDEBTEDNESS IS APPLICABLE TO THE FINANCING OF WORKS CONSTRUCTED UNDER THE LATER ALASKA PUBLIC WORKS ACT. THE SALE OF SUCH PUBLIC WORKS TO THE APPLICANTS AT A PRICE WHICH IS. ANY APPLICANT HEREUNDER IS AUTHORIZED TO ENTER INTO AGREEMENTS WITH THE UNITED STATES. IS BY ITS TERMS APPLICABLE TO THE BONDED INDEBTEDNESS INCURRED. THIS VIEW IS CONFIRMED BY THE LAST SENTENCE OF SECTION 6 WHICH SPECIFICALLY STATES THAT THE POWERS GRANTED IN THAT SECTION SHALL BE IN ADDITION TO POWERS PREVIOUSLY GRANTED AND MAY BE EXERCISED NOTWITHSTANDING ANY OTHER PROVISION OF LAW.

B-128746, AUGUST 8, 1956, 36 COMP. GEN. 100

ALASKA - PUBLIC WORKS CONSTRUCTION - LIMITATION ON BONDED INDEBTEDNESS THE LIMITATION IN THE ACT OF MAY 28, 1936, 48 U.S.C. 44A, ON BONDED INDEBTEDNESS FOR ALASKA PUBLIC WORKS CONSTRUCTION IS NOT APPLICABLE TO CONSTRUCTION UNDER THE ALASKA PUBLIC WORKS ACT OF AUGUST 24, 1949, 48 U.S.C. 486, AND, THEREFORE, APPROPRIATED FUNDS MAY BE EXPENDED FOR CONSTRUCTION UNDER THE 1949 ACT WITHOUT REGARD TO SUCH LIMITATION.

TO THE SECRETARY OF THE INTERIOR, AUGUST 8, 1956:

REFERENCE IS MADE TO LETTER DATED JULY 26, 1956, FROM THE ADMINISTRATIVE ASSISTANT SECRETARY OF THE INTERIOR, REQUESTING ADVICE AS TO THE LEGALITY OF EXPENDING APPROPRIATED FUNDS FOR THE CONSTRUCTION OF PUBLIC WORKS UNDER THE AUTHORIZATION OF THE ALASKA PUBLIC WORKS ACT OF AUGUST 24, 1949, 63 STAT. 627, 48 U.S.C. 486-486J, WHEN THE APPLICANTS FOR SUCH PUBLIC WORKS CONTEMPLATE FINANCING THE PURCHASE OF SUCH WORKS BY THE ISSUANCE OF BONDS WHICH CAUSE THE AGGREGATE OF THE OUTSTANDING BONDS OF SUCH APPLICANTS TO EXCEED 10 PERCENT OF THE ASSESSED VALUE OF THE TAXABLE PROPERTY WITHIN THE JURISDICTION OF SUCH APPLICANTS.

SECTION 1 OF THE ACT APPROVED MAY 28, 1936, 49 STAT. 1388, 48 U.S.C. 44A, AUTHORIZES MUNICIPAL CORPORATIONS IN THE TERRITORY OF ALASKA TO INCUR BONDED INDEBTEDNESS AND ISSUE NEGOTIABLE BONDS FOR PUBLIC WORKS OF A PERMANENT NATURE AND PROVIDES THAT "NO MUNICIPAL CORPORATION SHALL EXCEED 10 PERCENTUM OF THE AGGREGATE TAXABLE VALUE OF THE REAL AND PERSONAL PROPERTY WITHIN THE CORPORATE LIMITS OF SUCH MUNICIPAL CORPORATION.' ITALICS SUPPLIED.)

THE CONCERN OF YOUR DEPARTMENT IS WHETHER THE ABOVE LIMITATION ON BONDED INDEBTEDNESS IS APPLICABLE TO THE FINANCING OF WORKS CONSTRUCTED UNDER THE LATER ALASKA PUBLIC WORKS ACT. THE ALASKA PUBLIC WORKS ACT AUTHORIZED THE CONSTRUCTION BY THE UNITED STATES OF ESSENTIAL PUBLIC WORKS FOR THE TERRITORY OF ALASKA AND ANY CITY, TOWN, DISTRICT OR OTHER PUBLIC BODY IN SAID TERRITORY, ON APPLICATION OF SUCH BODIES; AND, THE SALE OF SUCH PUBLIC WORKS TO THE APPLICANTS AT A PRICE WHICH IS, IN EACH CASE, NOT LESS THAN 25 PERCENT AND NOT MORE THAN 75 PERCENT OF THE COST TO THE UNITED STATES. THE AUTHORITY GRANTED TO THE SECRETARY TO PROVIDE PUBLIC WORKS AND ENTER INTO AGREEMENTS WITH APPLICANTS EXPIRES UNDER THE PROVISION OF SECTION 12 OF THE ACT, AS AMENDED BY THE ACT APPROVED JULY 15, 1954, 68 STAT. 483, 48 U.S.C. 486J, NOT LATER THAN JUNE 30, 1959. SECTION 6 OF THE ACT PROVIDES:

TO FACILITATE CARRYING OUT THE PURPOSES OF THIS ACT, ANY APPLICANT HEREUNDER IS AUTHORIZED TO ENTER INTO AGREEMENTS WITH THE UNITED STATES, PERFORM THE OBLIGATIONS ASSUMED THEREUNDER, PAY TO THE UNITED STATES THE AMOUNT AGREED UPON FOR THE PUBLIC WORKS, OUT OF ANY FUNDS AVAILABLE TO THE APPLICANT NOT OTHERWISE APPROPRIATED, AND, IN CONNECTION WITH ANY PROJECT DESCRIBED IN ANY SUCH AGREEMENT, INCUR INDEBTEDNESS, ISSUE GENERAL OBLIGATION OR REVENUE BONDS, LEVY TAXES WHICH SHALL BE UNIFORM UPON THE SAME CLASS OF SUBJECTS, IMPOSE SPECIAL ASSESSMENTS, FIX AND COLLECT CHARGES FOR SERVICES RENDERED BY THE PUBLIC WORKS, OPERATE AND MAINTAIN PUBLIC WORKS INCLUDED IN SAID PROGRAM, ACQUIRE BY PURCHASE CONDEMNATION, DONATION, OR OTHERWISE SUCH INTERESTS IN LAND AS MAY BE NECESSARY TO PROVIDE PUBLIC WORKS HEREUNDER, AND GRANT TO THE UNITED STATES, WITHOUT REIMBURSEMENT, ANY PERMIT, LICENSE, OR RIGHT TO USE LAND AND OTHER PROPERTY IN THE POSSESSION OF THE APPLICANT AS MAY BE NECESSARY TO ENABLE THE ADMINISTRATOR (NOW SECRETARY OF THE INTERIOR) TO CARRY OUT HIS FUNCTIONS HEREUNDER. THE POWERS GRANTED UNDER THIS SECTION SHALL BE IN ADDITION TO THE POWERS THERETOFORE GRANTED AND MAY BE EXERCISED NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW. ( ITALICS SUPPLIED.)

THE 10 PERCENT LIMITATION CONTAINED IN THE ACT OF MAY 28, 1936, IS BY ITS TERMS APPLICABLE TO THE BONDED INDEBTEDNESS INCURRED, AND NEGOTIABLE INSTRUMENTS ISSUED UNDER AUTHORITY OF THAT ACT. SECTION 6 OF THE ALASKA PUBLIC ACT CONTAINS AUTHORITY FOR THE INCURRENCE OF BONDED INDEBTEDNESS AND THE ISSUANCE OF BONDS FOR THE FINANCING OF WORKS AUTHORIZED BY THAT ACT, AND THEREFORE ANY INDEBTEDNESS INCURRED OR BONDS ISSUED FOR SUCH PURPOSE WOULD NOT BE ISSUED UNDER AUTHORITY OF THE ACT OF MAY 28, 1936, SO AS TO BE SUBJECT TO THE LIMITATION. THIS VIEW IS CONFIRMED BY THE LAST SENTENCE OF SECTION 6 WHICH SPECIFICALLY STATES THAT THE POWERS GRANTED IN THAT SECTION SHALL BE IN ADDITION TO POWERS PREVIOUSLY GRANTED AND MAY BE EXERCISED NOTWITHSTANDING ANY OTHER PROVISION OF LAW.

IN VIEW OF THE FOREGOING, THE EXPENDITURE OF APPROPRIATED FUNDS UNDER THE AUTHORITY OF THE ALASKA PUBLIC WORKS ACT WHERE APPLICANTS CONTEMPLATE FINANCING WITHOUT REGARD TO THE LIMITATION IN THE ACT OF MAY 28, 1936, ON BONDED INDEBTEDNESS, APPEARS AUTHORIZED AND LEGALLY UNOBJECTIONABLE.