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B-189652 1 (1979-07-17)

handle is hein.gao/gaobadhkj0001 and id is 1 raw text is: 





                             THE  COMPTROLLER GENERAL
DECISIDN~l                .I OF   THE    UNITED      STATES
                             WASHINGTON, D. C. 20548




FILE:   B-189652               ppVcC-e b44{ 0! DATE: July 1-, 1979

MATTER OF        aska Railroad - administrativ, settlement of
               tort claims            a; Alaqr

DIGEST:  ---    4ssed Tort Claims Act (FTCA), as amended, repealed
              Act of June 24, 1946, 60 Stat. 304, insofar as it
              authorized Alaska Railroad (ARR) to settle tort
              claims cognizable under FTCA. Tort claims arising
              from 1975 train collision which were administratively
              settled by ARR for amounts greater than $2,500 but
              less than $100,000 are therefore payable from per-
              manent appropriation established by 31 U.S.C. § 724a
              rather than from ARR funds.

          2.  Although ARR did not follow procedures set forth in
              28 C.F.R. Part 14 for a number of claims arising from
              1975 railroad collision and paid several from its own
              funds, since the claims could have been paid from
              pqrmanent appropriation if properly presented, in
              this instance reimbursement will be permitted, except
              for payments in excess of $100,000. Since permanent
              appropriation contained in 31 U.S.C. § 724a was not
              available for payments in excess of $100,000 at time
              awards were made, reimbursement for these payments,
              if desired, must be obtained from Congress.

     This decision to the Secretary of Transportation concerns the
 source of funds for payment of tort claims administratively settled
 by the Alaska Railroad (ARR). The question is whether these claims
 are payable from the permanent indefinite appropriation established
 by 31 U.S.C. § 724a or from ARR funds. For the reasons that follow,
 we conclude that awards in excess of $2,500 are payable from the
 permanent appropriation.

     Federal agencies are authorized to settle tort claims adminis-
 tratively under the Federal Tort Claims Act. 28 U.S.C. § 2672 (1976).
 Awards of $2,500 or less must be paid by the agency involved from
 its own appropriations. Awards greater than $2,500 are paid pursuant
 to 31 U.S.C. § 724a, which provides in pertinent part:

          There are appropriated, out of any money in
      the Treasury not otherwise appropriated, such sums
      as may be necessary for the payment, not otherwise


                                 -1-Z

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