B-138729, APR 10, 1959
B-138729: Apr 10, 1959
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IS A HEAVY ENVELOP IN WHICH AN EXPOSED KODACHROME FILM IS MAILED TO THE KODAK PROCESSING LABORATORY FOR PROCESSING. THE USER OF THE ENVELOP IS ENTITLED. THE PRICE OF THE MAILER INCLUDES THE COST OF PROCESSING THE FILM - THE PRINCIPLE ITEM OF EXPENSE - THE QUESTION PRESENTED IS WHETHER THE PURCHASE OF A MAILER INVOLVES AN ADVANCE PAYMENT IN VIOLATION OF 31 U.S.C. 529. OR OF THE ARTICLES DELIVERED PREVIOUSLY TO SUCH PAYMENT. ***" IT DOES NOT APPEAR FROM YOUR LETTER THAT THE ONLY METHOD OF PROCURING THE PROCESSING OF KODACHROME FILM IS BY THE USE OF THE PREPAID MAILERS. WE ARE OF THE VIEW THAT PAYMENT FOR PHOTOGRAPHER PROCESSING PRIOR TO RETURN OF THE PROCESSED FILM CONSTITUTES A VIOLATION OF SECTION 529.
B-138729, APR 10, 1959
PRECIS-UNAVAILABLE
H. L. WALL UNITED STATES DEPARTMENT OF AGRICULTURE:
YOUR LETTER DATED JANUARY 26, 1959, REQUESTS A DECISION WHETHER YOU MAY CERTIFY FOR PAYMENT AN ATTACHED INVOICE OF NEPHO INCORPORATED, LINCOLN, NEBRASKA, IN THE AMOUNT OF $1.40, THE COST OF A KODAK PREPAID PROCESSING MAILER SUPPLIED THE SOIL CONSERVATION SERVICE.
THE KODAK PROCESSING MAILER, OBTAINABLE AT VARIOUS OUTLETS, IS A HEAVY ENVELOP IN WHICH AN EXPOSED KODACHROME FILM IS MAILED TO THE KODAK PROCESSING LABORATORY FOR PROCESSING. THE USER OF THE ENVELOP IS ENTITLED, WITHOUT FURTHER COST, TO THE PROCESSING OF ONE ROLL OF KODACHROME COLOR REVERSAL FILM INCLUDING MOUNTING IN 2" X 2" SLIDES. THE PRICE OF THE MAILER INCLUDES THE COST OF PROCESSING THE FILM - THE PRINCIPLE ITEM OF EXPENSE - THE QUESTION PRESENTED IS WHETHER THE PURCHASE OF A MAILER INVOLVES AN ADVANCE PAYMENT IN VIOLATION OF 31 U.S.C. 529, WHICH STATES:
"NO ADVANCE OF PUBLIC MONEY SHALL BE MADE IN ANY CASE UNLESS AUTHORIZED BY THE APPROPRIATION CONCERNED OR OTHER LAW. AND IN ALL CASES OF CONTRACTS FOR THE PERFORMANCE OF ANY SERVICE, OR THE DELIVERY OF ARTICLES OF ANY DESCRIPTION, FOR THE USE OF THE UNITED STATES, PAYMENT SHALL NOT EXCEED THE VALUE OF THE SERVICE RENDERED, OR OF THE ARTICLES DELIVERED PREVIOUSLY TO SUCH PAYMENT. ***"
IT DOES NOT APPEAR FROM YOUR LETTER THAT THE ONLY METHOD OF PROCURING THE PROCESSING OF KODACHROME FILM IS BY THE USE OF THE PREPAID MAILERS, NOR DO WE UNDERSTAND THAT TO BE THE CASE. YOUR LETTER MERELY STATES THAT THE PURCHASE OF THESE PROCESSING MAILERS IN LARGER QUANTITIES WOULD SIMPLIFY PAYMENT FOR FILM PROCESSING AND ELIMINATE THE HANDLING OF NUMEROUS VOUCHERS.
WE ARE OF THE VIEW THAT PAYMENT FOR PHOTOGRAPHER PROCESSING PRIOR TO RETURN OF THE PROCESSED FILM CONSTITUTES A VIOLATION OF SECTION 529, AND THAT THE PURCHASE OF PREPAID PROCESSING MAILERS IS WITHIN THE PURVIEW OF THE PROHIBITION.
THE INVOICE OF NEPHO INCORPORATED, FORWARDED WITH YOUR LETTER, IS RETURNED AND MAY NOT BE CERTIFIED FOR PAYMENT UNTIL RECEIPT OF THE PROCESSED FILM.
