Comments on S. 1462

Comments were presented on a bill to establish the Arid Lands Renewable Resources Corporation. GAO believes that employing the corporate form to achieve the objective of the bill is inappropriate because such a corporation would not: (1) be revenue-producing and potentially self-sustaining; (2) involve a large number of business transactions with the public; and (3) require greater financial flexibility than the appropriations budget ordinarily permits. GAO recommended that use of the corporate form be disregarded in favor of a separate program or fund administered by an appropriate department or agency. Nevertheless, if the corporate form is employed, GAO believes it should be designated a wholly owned Government corporation that is subject to the Government Corporation Control Act. In addition, GAO recommended several modifications to the bill before enactment.