B-4464, JUNE 24, 1939, 18 COMP. GEN. 976

B-4464: Jun 24, 1939

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WHICH RELATE SPECIFICALLY TO "ANY TRANSFER OF PERSONNEL" HAVE NO APPLICATION TO THE PERSONNEL OF THE FEDERAL HOUSING ADMINISTRATION. SAID SECTION WILL NOT PRECLUDE CHANGES IN SALARY RATES OF SUCH PERSONNEL DURING THE FISCAL YEAR 1940. 1939: I HAVE YOUR LETTER OF JUNE 13. 76TH CONGRESS) PROVIDES THAT THE TRANSFER OF PERSONNEL UNDER THE ACT SHALL BE WITHOUT CHANGE IN CLASSIFICATION OR COMPENSATION FOR THE REMAINDER OF THE FISCAL YEAR DURING WHICH THE TRANSFER IS MADE. WE ARE. I HAVE SUBMITTED THE QUESTION TO MR. I UNDERSTAND THAT THIS OPINION IS CONCURRED IN BY THE GENERAL COUNSEL FOR THE RECONSTRUCTION FINANCE CORPORATION AND THE GENERAL COUNSEL FOR THE FEDERAL HOME LOAN BANK BOARD. WILL YOU PLEASE BE GOOD ENOUGH TO ADVISE ME AS PROMPTLY AS POSSIBLE AS TO WHETHER OR NOT.

B-4464, JUNE 24, 1939, 18 COMP. GEN. 976

COMPENSATION - SALARY CHANGES - "LENDING AGENCIES" REORGANIZATION PLAN PERSONNEL THE PURPOSE OF SECTION 402 OF THE PRESIDENT'S REORGANIZATION PLAN NO. 1, MADE EFFECTIVE JULY 1, 1939, BY ACT OF CONGRESS, BEING TO EFFECT A COORDINATION RATHER THAN A TRANSFER OR CONSOLIDATION OF THE FUNCTIONS AND ACTIVITIES OF THE ESTABLISHMENTS, INCLUDING THE FEDERAL HOUSING ADMINISTRATION, IN THE "LENDING AGENCIES" PLACED UNDER THE SUPERVISION OF THE FEDERAL LOAN ADMINISTRATOR, THE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF APRIL 3, 1939, 53 STAT. 563, WHICH RELATE SPECIFICALLY TO "ANY TRANSFER OF PERSONNEL" HAVE NO APPLICATION TO THE PERSONNEL OF THE FEDERAL HOUSING ADMINISTRATION, AND SAID SECTION WILL NOT PRECLUDE CHANGES IN SALARY RATES OF SUCH PERSONNEL DURING THE FISCAL YEAR 1940.

COMPTROLLER GENERAL BROWN TO THE ADMINISTRATOR, FEDERAL HOUSING ADMINISTRATION, JUNE 24, 1939:

I HAVE YOUR LETTER OF JUNE 13, 1939, AS FOLLOWS:

SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939 (PUBLIC, NO. 19, 76TH CONGRESS) PROVIDES THAT THE TRANSFER OF PERSONNEL UNDER THE ACT SHALL BE WITHOUT CHANGE IN CLASSIFICATION OR COMPENSATION FOR THE REMAINDER OF THE FISCAL YEAR DURING WHICH THE TRANSFER IS MADE.

CONGRESS HAS APPROVED THE PRESIDENT'S REORGANIZATION PLAN NO. 1 SUBMITTED UNDER THE ACT AND HAS MADE IT EFFECTIVE JULY 1, 1939.

WE ARE, THEREFORE, FACED WITH THE PROBLEM AS TO WHETHER OR NOT THIS SECTION APPLIES TO OUR PERSONNEL IN VIEW OF THE PECULIAR LANGUAGE OF SECTION 402 OF THE PRESIDENT'S PLAN, WHICH GROUPS THE FEDERAL HOUSING ADMINISTRATION AND A NUMBER OF OTHER AGENCIES UNDER THE SUPERVISION OF A NEW AGENCY KNOWN AS THE FEDERAL LOAN AGENCY.

I HAVE SUBMITTED THE QUESTION TO MR. ABNER H. GERGUSON, MY GENERAL COUNSEL, WHO HAS GIVEN ME HIS OPINION ON THE SUBJECT. I AM ENCLOSING HEREWITH A COPY OF THIS OPINION FOR SUCH USE AS YOU DESIRE TO MAKE OF IT. I UNDERSTAND THAT THIS OPINION IS CONCURRED IN BY THE GENERAL COUNSEL FOR THE RECONSTRUCTION FINANCE CORPORATION AND THE GENERAL COUNSEL FOR THE FEDERAL HOME LOAN BANK BOARD.

WILL YOU PLEASE BE GOOD ENOUGH TO ADVISE ME AS PROMPTLY AS POSSIBLE AS TO WHETHER OR NOT, IN VIEW OF THE ABOVE-MENTIONED ORDER, I WILL BE PREVENTED FROM GRANTING INCREASES IN SALARIES DURING THE FISCAL YEAR ENDING JUNE 30, 1940.

SECTION 10 (B) OF THE REORGANIZATION ACT OF APRIL 3, 1939, PUBLIC, NO. 19, 53 STAT. 563, IS AS FOLLOWS:

ANY TRANSFER OF PERSONNEL UNDER THIS TITLE SHALL BE WITHOUT CHANGE IN CLASSIFICATION OR COMPENSATION, EXCEPT THAT THIS REQUIREMENT SHALL NOT OPERATE AFTER THE END OF THE FISCAL YEAR DURING WHICH THE TRANSFER IS MADE TO PREVENT THE ADJUSTMENT OF CLASSIFICATION OR COMPENSATION TO CONFORM TO THE DUTIES TO WHICH SUCH TRANSFERRED PERSONNEL MAY BE ASSIGNED.

IN PART 4, ENTITLED "LENDING AGENCIES," OF REORGANIZATION PLAN NO. 1, APPEARS THE FOLLOWING:

SEC. 402. (A) FEDERAL LOAN AGENCY.--- THERE SHALL BE AT THE SEAT OF THE GOVERNMENT A FEDERAL LOAN AGENCY, WITH A FEDERAL LOAN ADMINISTRATOR AT THE HEAD THEREOF. THE FEDERAL LOAN ADMINISTRATOR SHALL BE APPOINTED BY THE PRESIDENT BY AND WITH THE ADVICE AND CONSENT OF THE SENATE, AND SHALL RECEIVE A SALARY AT THE RATE OF $12,000 PER ANNUM.

(B) ASSISTANT FEDERAL LOAN ADMINISTRATOR.--- THE FEDERAL LOAN ADMINISTRATOR SHALL APPOINT AN ASSISTANT FEDERAL LOAN ADMINISTRATOR, WHO SHALL RECEIVE A SALARY AT THE RATE OF $9,000 PER ANNUM. THE ASSISTANT ADMINISTRATOR SHALL ACT AS ADMINISTRATOR DURING THE ABSENCE OR DISABILITY OF THE ADMINISTRATOR, OR IN THE EVENT OF A VACANCY IN THAT OFFICE, AND SHALL PERFORM SUCH OTHER DUTIES AS THE ADMINISTRATOR SHALL DIRECT.

(C) POWERS AND DUTIES OF ADMINISTRATOR.--- THE ADMINISTRATOR SHALL SUPERVISE THE ADMINISTRATION, AND SHALL BE RESPONSIBLE FOR THE COORDINATION OF THE FUNCTIONS AND ACTIVITIES, OF THE FOLLOWING AGENCIES: RECONSTRUCTION FINANCE CORPORATION, ELECTRIC HOME AND FARM AUTHORITY, RFC MORTGAGE COMPANY, DISASTER LOAN CORPORATION, FEDERAL NATIONAL MORTGAGE ASSOCIATION, FEDERAL HOME LOAN BANK BOARD, HOME OWNERS' LOAN CORPORATION, FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION, FEDERAL HOUSING ADMINISTRATION, AND EXPORT-IMPORT BANK OF WASHINGTON. THE ADMINISTRATOR MAY APPOINT SUCH OFFICERS AND EMPLOYEES AND MAKE SUCH EXPENDITURES AS MAY BE NECESSARY.

(D) ADMINISTRATIVE FUNDS.--- THE DIRECTOR OF THE BUREAU OF THE BUDGET, SHALL ALLOCATE TO THE FEDERAL LOAN AGENCY, FROM APPROPRIATIONS, ALLOCATIONS, OR OTHER FUNDS AVAILABLE (INCLUDING THOSE AVAILABLE FOR THE FISCAL YEAR ENDING JUNE 30, 1940) FOR THE ADMINISTRATIVE EXPENSES OF THE AGENCIES NAMED IN THIS SECTION, SUCH SUMS, AND IN SUCH PROPORTION, AS HE MAY FIND NECESSARY FOR THE ADMINISTRATIVE EXPENSES OF THE FEDERAL LOAN AGENCY.

THERE IS NOTHING IN ANY OF THESE PROVISIONS PURPORTING TO CONSOLIDATE THE FUNCTIONS OF THE FEDERAL HOUSING ADMINISTRATION WITH THE FUNCTIONS OF THE OTHER LENDING AGENCIES REFERRED TO THEREIN OR TO TRANSFER THE PERSONNEL OF THE FEDERAL HOUSING ADMINISTRATION OR OF THE OTHER LENDING AGENCIES TO THE NEW FEDERAL LOAN AGENCY, CREATED BY REORGANIZATION PLAN NO. 1. THESE PROVISIONS ARE DIFFERENT FROM THOSE APPEARING IN THE REORGANIZATION PLAN NO. 1 UNDER PART 2, ENTITLED,"FEDERAL SECURITY AGENCY," AND PART 3, ENTITLED,"FEDERAL WORKS AGENCY," AS TO WHICH SEE SECTION 201 (D) 211, 301 (D), AND 310.

THE APPARENT PURPOSE OF SECTION 402, SUPRA, IS TO EFFECT A COORDINATION RATHER THAN A TRANSFER OR CONSOLIDATION OF THE FUNCTIONS AND ACTIVITIES OF THE ESTABLISHMENTS, INCLUDING THE FEDERAL HOUSING ADMINISTRATION, MENTIONED IN SUBSECTION (C) OF SAID SECTION. TO SUCH END THE SAID ESTABLISHMENTS ARE MERELY GROUPED AND PLACED UNDER THE SUPERVISION OF THE FEDERAL LOAN ADMINISTRATOR.

ACCORDINGLY, YOU ARE ADVISED THAT SECTION 10 (B) OF THE REORGANIZATION ACT, SUPRA, WHICH RELATES SPECIFICALLY TO "ANY TRANSFER OF PERSONNEL" HAS NO APPLICATION TO THE PERSONNEL OF THE FEDERAL HOUSING ADMINISTRATION, AND, THEREFORE, THAT SAID SECTION WILL NOT PRECLUDE CHANGES IN SALARY RATES OF EMPLOYEES OF THE FEDERAL HOUSING ADMINISTRATION, AND, THEREFORE, THAT SAID SECTION WILL NOT PRECLUDE CHANGES IN SALARY RATES OF EMPLOYEES OF THE FEDERAL HOUSING ADMINISTRATION DURING THE FISCAL YEAR 1940.