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B-193573 1 (1979-12-19)

handle is hein.gao/gaobadhuw0001 and id is 1 raw text is: Th . DE.MPTROLLER GENERAL DECISION OF THE UNITED STATES WASHINGTON, D. C. 20548 NrITE 193573 DATE: December 19, 1979 MATTER DIGE OF: Saint Lawrence Seaway Development Corporation - DStatus of Funds as 'Appropriate 57Z ST: Saint Lawrence Seaway Development Corporation requests that GAO reverse its holding (B-193573, January 8, 1979), that user fees derived from its corporate activities are appropriated funds. Based on its interpretation of language in its annual appropriation act, its enabling legislation, and the Government Corporation Control Act, the Seaway Cor- poration contends that funds available to the Corporation are non-appropriated funds. GAO concludes that the Corporation's funds are appropriated but by virtue of the Corporation's enabling legislation, are exempt from many statutory restrictions on the use of appropriated funds. B-193573, January 8, 1979, affirmed, as modified. This decision is in response to a request by the General Counsel of the Saint Lawrence Seaway Development Corporation for review and reconsideration of our decision, Matter of Applicability of FY 1979 5. 5 percent pay increase ceiling to employees of Saint Lawrence Seaway Development Corporation (B-193573, January 8, 1979), in which we held that the Corporation's funds are appropriated funds, despite the fact that the source of such funds is user fees. (The General Counsel agrees with the result of the decision, that Corporation employees are not subject to the 5. 5 percent pay in- crease ceiling, and that holding is not here at issue.) Professor Harold Seidman, Department of Political Science, University of Connecticut, has also offered his views in support of the position that the Corporation is not subject to the laws applicable to appro- priated funds. The General Counsel, supported in general by Professor Seidman, contends that our holding is in direct conflict with the underlying principles of the Saint Lawrence Seaway Act (33 U.S.C. 5 981 et seq.), the Government Corporation Control Act (31 U.S.C. § 841 et seT.T hd the purposes which a Government corporation is designed fT serve. He further contends that our holding is contrary to the plain language of the provisions of the annual Department of Transportation Appro- priations Act. -1- 11112)CO FILE:

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