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B-221498.2 1 (1986-02-03)

handle is hein.gao/gaobachbv0001 and id is 1 raw text is: 


   PTWC*(8 On-ly              -YD DISTRIBUTION - C- 6- M
                 COMPTROLLER GENERAL OF THE UNITED STATES       38
 an                       WASHINGTON D.C. 2MS




 B-221498.2

                                     February 3, 1986

The Honorable Dick Cheney       N0t    AVAILE TO PUBLI   G

House of Representatives      -         FOR 30           .

Dear Mr. Cheney:                                  RELEASED

     This is in response to your January 14, 1986 letter,
cosigned by Senator Alan Simpson and Senator Malcolm Wallop,
concerning the applicability of the Balanced Budget and
Emergency Deficit Control Act of 1985 (Public Law 99-177) to
payments made to states from royalties collected as a result of
mineral development activities on federally-owned lands. You
requested that we determine such payments to be exempt from
sequestration under the Act, based on the intragovernmental
fund exemption of section 255(g).

     The January 15, 1986, OMB/CBO report to the Comptroller
General included the account entitled Payments to States from
Receipts under Mineral Leasing Act as subject to sequestration
under Public Law 99-177. 51 Fed. Reg. 2012 (January 15,
1986). Because we could find no legal basis under the Act for
exempting this account, we concurred with the OMB/CBO deter-
mination.

     The account in question is comprised of receipts from
sales, bonuses, royalties, and rentals resulting front develop-
ment of mineral resour es on public domain and acquired lands.
Under 30 U.S.C. S 191 each state is paid 50 percent of the
receipts collected from lands within its boundaries (90 percent
in the case of Alaska). Payments are made on a monthly basis
as funds are received.

     As is the case with any other permape nt appropriation,
payments to states under 30 U.S.C. S 191V~are subject to
Sequester under Public Law 99-177 unless they fall within any
Of the specific exemptions, exceptions, or special rules con-
tainea therein. The fact that the funas are intended to com-
pensate states for their inability to tax federally-ownea lands
and minerals within their borders is not a sufficient ground to
Consider the payments exempt from sequestration. The Act is
mechanical in nature, and applies to a variety of payments
intended to compensate states, territories, and private
Parties, regardless of the rationale behind such payments.

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