About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-204699 1 (1981-10-30)

handle is hein.gao/gaobabkfw0001 and id is 1 raw text is: COM4PTRO LER GENERAL OF THE UNtTED STATES WASHINGTON D.C 20548 B-204699 October 30, 1981 The Honorable Bob Packwood Chairman, Committee on Commerce, Science, and Transportation United States Senate Dear Mr. Chairman: We have considered Senate bill 1462, (97th Congress, 1st Session), a bill To establish the Arid Lands Renewable Resources Corporation, and are pleased to offer the following comments. 1. We question whether a Government corporation is the proper form to achieve the purposes of the act. Historically, use of the Government corporate form to meet public enterprise goals was inconsistently applied and often not appropriate. After passage of the Government Corporation Control Act (GCCA) in 1945 (31 U.S.C. 841-849), and throughout the Truman and Eisenhower administrations, the President and the Bureau of the Budget (now Office of Management and Budget) resisted attempts to establish Government corporations and enterprises unless each pro- posal met four criteria: (a) The proposed function was predominately of a business or commercial nature. (b) It was revenue producing and potentially self-sustaining. (c) It involved a large number of business transactions with the public. (d) It required greater financial flexibility than the appro- priations budget ordinarily permits. We believe these criteria are valid today and should be re- .affirmed by the administration. Accordingly, we think that em- ploying the corporate form to achieve the objective of your bill (to bring about commercial production of renewable resources on arid-land by providing financial incentives) is inappropriate because such a corporation would (1) not be revenue producing and potentially self-sustaining, (2) not involve a large number of business transactions with the public, and (3) not require greater financial flexibility than the appropriations budget ordinarily permits. We recommend that use of the corporate form be discarded in favor of a separate program or fund administered by an appropri- ate department or agency.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most