B-235945, Sep 16, 1991, 70 Comp.Gen. 705

B-235945, Sep 16, 1991, 70 Comp.Gen. 705

APPROPRIATIONS/FINANCIAL MANAGEMENT - Appropriation Availability - Specific purpose restrictions 1. Railroad Unemployment Insurance Act (RUIA), 45 U.S.C. Secs. 351 369, and expenses incurred by the Railroad Retirement Board in administering RUIA are subject to the check cancellation and disposition procedures in 31 U.S.C. Sec. 3334(b), as added by section 1003 of the Competitive Equality Banking Act of 1987, by virtue of the comprehensive language "all Treasury checks" in section 3334(b). APPROPRIATIONS/FINANCIAL MANAGEMENT - Appropriation Availability - Specific purpose restrictions - Account balances - Canceled checks - Statutory interpretation 2. The operative language of 31 U.S.C. Sec. 3334(b), as added by section 1003 of the Competitive Equality Banking Act of 1987, and statutory provisions governing the use of funds in accounts established by the Railroad Unemployment Insurance Act (RUIA), 45 U.S.C. Secs. 351 369, are not irreconcilable. The provisions of RUIA do not address the cancellation and disposition of uncashed Treasury checks issued against the RUIA accounts and hence, under applicable canons of statutory construction, the procedures specified in section 3334(b), the general law on the subject, apply.

Applicability of 31 U.S.C. Sec. 3334(b) to Canceled Checks Previously Issued for Payments under the Railroad Unemployment Insurance Act:

The Deputy General Counsel of the Railroad Retirement Board (Board) has asked whether 31 U.S.C. Sec. 3334(b)(1988), as added by section 1003 of the Competitive Equality Banking Act of 1987, Pub.L. No. 100 86, 101 Stat. 552, 658, supersedes restrictions that the Railroad Unemployment Insurance Act (RUIA), 45 U.S.C. Secs. 351-369, places on the use of funds appropriated to the accounts established under RUIA. /1/ For the reasons stated below, we conclude that 31 U.S.C. Sec. 3334(b) applies to uncashed Treasury checks issued to pay RUIA benefits.

BACKGROUND

Section 3334(b) requires that proceeds of all Treasury checks issued before that provision's effective date of October 1, 1989, be applied to clear Treasury's uncollectible accounts receivable and other accounts associated with payment of checks and claims by Treasury on behalf of all payment certifying agencies, with any remaining funds to be deposited to Treasury's miscellaneous receipts account. Section 3334(c) preserves the underlying obligation represented by those Treasury checks issued before October 1, 1989. /2/

Sections 10(a) and 11(a) of RUIA, 45 U.S.C. Secs. 360(a) and 361(a), establish, respectively, the Railroad Unemployment Insurance Account (RUI Account) to pay unemployment and sickness benefits to U.S. railroad employees, and the Railroad Unemployment Insurance Administration Fund (RUI Administration Fund) to pay the expenses of administering RUIA. Sections 10(a), 10(b), and 11(c) of RUIA, 45 U.S.C. Secs. 360(a), 360(b), and 361(c), restrict the use of funds in the two RUIA accounts to the purposes for which those accounts were established, and prohibits the transfer of funds in those accounts to any other fund or account. /3/

Treasury takes the position that 31 U.S.C. Sec. 3334(b) is applicable to all Treasury checks without exception, including those issued for paying RUIA benefits and the Board's expenses in administering RUIA, since the language of section 3334(b) provides no basis for treating one check any differently from another based on the origin or nature of the underlying funds. The Board disagrees with Treasury's position, and argues that the language of sections 10(a), 10(b), and 11(c) of RUIA indicates that Congress intended that funds in the RUIA accounts only be used for the purposes for which they were established. It relies on the rule of statutory construction that where a general statute and a specific statute dealing with the same subject matter cannot be harmonized, the specific statute will control and be considered an exception to the general statute, absent a clear expression by Congress to the contrary. See 82 C.J.S. Statutes 369. The Board concludes that 31 U.S.C. Sec. 3334(b) and the cited RUIA provisions cannot be harmonized, and therefore the proceeds from any such canceled Treasury checks representing payments under RUIA should be returned to their respective RUIA accounts. The Board also contends that Treasury's interpretation of section 3334(b) would cause the unintended result of the RUIA accounts incurring double liability; they would be charged when checks are first issued and would be charged again upon reissuance when requested by a claimant, since 31 U.S.C. Sec. 3334(c), as added by section 1003 of CEBA, preserves the underlying obligation on such claims.

Analysis

We agree with Treasury that the language of section 3334(b) evidences a clear and unambiguous intent by Congress that the requirements of that provision apply to all Treasury checks without regard to the source or nature of the underlying funds. Such an intention we think is evident from Congress's choice of the comprehensive, all-inclusive language, "all Treasury checks." Based on the well-established principle that words or phrases in a statute should be given their ordinary and commonly understood meaning absent explicit indications or compelling reasons to the contrary, the only rational construction which can be placed on the operative language of section 3334(b) is that it applies to all Treasury checks without exception. American Tobacco Co. v. Patterson, 456 U.S. 63, 68 (1982); United States v. Turkette, 452 U.S. 576, 580 (1981); Consumer Product Safety Commission v. GTE Sylvania, Inc., 447 U.S. 102, 108 (1980). There is nothing in the legislative history of CEBA indicating that the language should be construed otherwise. Therefore, based on the plain language of section 3334(b), the check cancellation and disposition procedures established therein apply to pre-October 1, 1989, Treasury checks issued to pay benefits authorized under RUIA and expenses incurred by the Board in the administration of that act.

We recognize, as the Board points out, that such a literal interpretation of section 3334(b) could lead to double liability for the RUIA accounts, but this is a result that could occur for virtually every agency in government. In the absence of compelling legislative history on this point, we have no basis from which to derive an alternative interpretation of that provision. In this regard, we cannot assume that Congress, while considering enactment of CEBA, was not aware of this potential impact on agencies' operations. Further, we do not view the specific impact of section 3334(b) on RUIA accounts to be so peculiar, when compared to the impact on the myriad government accounts affected, so as to represent the type of absurd consequence that would argue against a reading of the statute consistent with its plain meaning. See Crooks v. Harrelson, 282 U.S. 55, 60 (1930). See also TVA v. Hill, 437 U.S. 153, 187, n. 33 (1978).

In addition, we have considered the Board's argument regarding the asserted conflict between 31 U.S.C. Sec. 3334(b) and sections 10(a), 10(b), and 11(c) of RUIA and do not find it to be persuasive. While we agree that section 3334(b) is a general, comprehensive statute and sections 10(a), 10(b), and 11(c) are specific provisions enacted to further specific congressional objectives, they do not cover the same subject matter. Section 3334(b) deals only with procedures for the cancellation of uncashed Treasury checks and the disposition of their proceeds. Sections 10(a), 10(b), and 11(c) of RUIA deal exclusively with the appropriations of moneys credited to the RUIA accounts and limit the use of such funds to RUIA benefits and refunds. Neither these nor any other provisions of RUIA address the disposition of proceeds from uncashed Treasury checks issued against those accounts.

We see no irreconcilable conflict between these statutory provisions. See 82 C.J.S. Statutes 291, 366. Under established principles of statutory construction, the disposition of such proceeds would be governed by 31 U.S.C. Sec. 3334(b), which provides the general law on the subject, since no check cancellation and disposition procedures are provided in RUIA. See 82 C.J.S. Statutes 369, p. 840, n. 20; 2A Sutherland Statutory Construction 23.15 (4th ed. 1984), pp. 370-371, n. 3. We do not believe the overall purposes of the RUIA provisions would be thwarted by such a construction since a diversion of only a limited amount of funds from the RUIA accounts would be effected by section 3334(b). Moreover, there is no basis to believe that applying section 3334(b) would impact the RUIA accounts either to such an extent as to impair the Board's ability to meet its obligations under RUIA or in a manner or fashion different than the myriad other similarly situated agency accounts. Thus, such a construction reconciles those provisions by allowing them to operate while giving reasonable effect to their respective congressional purposes.

Based on these considerations, we believe that any uncashed Treasury checks which were issued prior to October 1, 1989, for payment of RUIA benefits or Board expenses should be canceled by Treasury and their proceeds disposed of in accordance with 31 U.S.C. Sec. 3334(b) rather than returned to their respective RUIA accounts. It should be noted that there is no authority to charge the General Fund of the Treasury upon reissuance of a Treasury check in satisfaction of the underlying obligations or entitlement of such payments.

/1/ We were subsequently asked whether Treasury checks issued for salaries of Board employees and to vendors for services rendered to the Board in its administration of RUIA also are subject to 31 U.S.C. Sec. 3334(b). Our opinion deals with the applicability of section 3334(b) to all Treasury checks issued pursuant to RUIA, and therefore is equally applicable to Treasury checks issued to Board employees and vendors.

/2/ 31 U.S.C. Sec. 3334(b) and (c) read as follows:

"(b) CHECKS ISSUED BEFORE EFFECTIVE DATE.--

(1) Not later than 18 months after the effective date of this section, the Secretary shall identify and cancel all Treasury checks issued before such effective date that have not been paid in accordance with section 3328 of this title.

"(2) The proceeds from checks canceled pursuant to paragraph (1) shall be applied to eliminate the balances in accounts that represent uncollectible accounts receivable and other costs associated with the payment of checks and check claims by the Department of the Treasury on behalf of all payment certifying agencies. Any remaining proceeds shall be deposited to the miscellaneous receipts of the Treasury.

"(c) NO EFFECT ON UNDERLYING OBLIGATION.-- Nothing in this section shall be construed to affect the underlying obligation of the United States, or any agency thereof, for which a Treasury check was issued."

/3/ Sections 10(a) and (b) of RUIA provide:

"(a) Notwithstanding any other provision of law, all moneys credited to the RUI Account shall be mingled and undivided, and are hereby permanently appropriated to the Board to be continuously available to the Board without further appropriation, for the payment of benefits and refunds under RUIA, and no part thereof shall lapse at any time, or be carried to the surplus fund or any other fund."

(b) All moneys in the RUI Account shall be used solely for the payment of benefits and refunds provided for by RUIA."

45 U.S.C. Sec. 360(a), (b). Section 11(c) of RUIA provides:

"Notwithstanding any other provision of law, all moneys at any time credited to the RUI Administration Fund are permanently appropriated to the Board to be continuously available to the Board without further appropriation for any expenses necessary or incidental to administering RUIA. ..." 45 U.S.C. Sec. 361(c).