03 CFR Proc. 6310
03 CFR Proclamation 6310 of June 28, 1991
Proclamation 6310 of June 28, 1991
03 CFR To Make Changes to the Harmonized Tariff Schedule of the United States
By the President of the United States of America
A Proclamation
1. Section 1211(d)(2) of the Omnibus Trade and Competitiveness Act of 1988 (''1988 Act'') (19 U.S.C. 3011(d)(2)) requires the United States International Trade Commission (''Commission'') to recommend to the President and to the Congress those changes to the Harmonized Tariff Schedule of the United States (HTS) that the Commission would have recommended if certain final judicial decisions published during the 2-year period beginning on February 1, 1988, would have affected tariff treatment if the final decisions had been made before the conversion into the format of the International Convention on the Harmonized Commodity Description and Coding System, June 14, 1983, and the Protocol thereto, June 24, 1986. Section 1211(d)(3) of the 1988 Act (19 U.S.C. 3011(d)(3)) directs the President to review the recommended changes and to proclaim those changes, if any, which he decides are necessary or appropriate to conform the HTS to the pertinent final judicial decisions. This section further provides that any changes proclaimed by the President shall be effective both for entries made on or after the date of the proclamation and for entries made between January 1, 1989, and the date of the proclamation, upon request by the importer for liquidation or reliquidation thereof within 180 days after the effective date of the proclamation.
2. Pursuant to section 1211(d) of the 1988 Act, on September 1, 1990, the Commission reported its recommendations for changes to the HTS to the President in its report on Investigation No. 332-273 (USITC Publication No. 2309, August 1990). After reviewing all of the changes recommended by the Commission, I have decided that all such changes are necessary or appropriate in order to conform the HTS to the decisions identified in the Commission's report.
3. Section 604 of the Trade Act of 1974, as amended (''1974 Act'') (19 U.S.C. 2483), authorizes the President to embody in the HTS the substance of the provisions of that Act, of other acts affecting import treatment, and actions thereunder.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, acting under the authority vested in me by the Constitution and laws of the United States, including but not limited to section 604 of the 1974 Act and section 1211(d) of the 1988 Act, do proclaim that:
(1) In order to conform the HTS to certain final judicial decisions, the HTS is modified as set forth in Annex I to this proclamation.
(2) In order to provide for the continuation of previously proclaimed staged reductions on Canadian goods in the HTS provisions modified in Annex I to this proclamation, effective with respect to goods originating in the territory of Canada which are entered, or withdrawn from warehouse for consumption, on or after the dates specified in Annex II to this proclamation, the rate of duty in the HTS set forth in the Rates of Duty 1 Special subcolumn followed by the symbol ''CA'' in parentheses for each of the HTS subheadings enumerated in Annex II shall be deleted and the rate of duty provided in Annex II inserted in lieu thereof on the dates specified.
(3) Any provisions of previous proclamations and Executive orders inconsistent with the provisions of this proclamation are hereby superseded to the extent of such inconsistency.
(4)(a) The modifications made by paragraph (1) of this proclamation shall be effective with respect to:
(i) entries made on or after the date of signature of this
proclamation, and
(ii) entries made on or after January 1, 1989, if application for
liquidation or reliquidation thereof is made by the importer to the United States Customs Service within 180 days after the date of signature of this proclamation.
(b) The modifications made by paragraph (2) of this proclamation shall be effective with respect to goods originating in the territory of Canada entered, or withdrawn from warehouse for consumption, on or after the dates indicated in the respective columns for such goods in Annex II to this proclamation.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-eighth day of June, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and fifteenth.
GEORGE BUSH
ANNEX I
Notes
1. Bracketed matter is included to assist in the understanding of proclaimed modifications.
2. The following supersedes matter now in the Harmonized Tariff Schedule of the United States (HTS). The subheadings and superior descriptions are set forth in columnar format, and material in such columns is inserted in the columns of the HTS designated ''Heading/Subheading'', ''Article Description'', ''Rates of Duty 1 General'', ''Rates of Duty 1 Special'', and ''Rates of Duty 2'', respectively.
Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after the date of signature of this proclamation, and to entries of such articles made on or after January 1, 1989, if application for liquidation or reliquidation thereof is made by the importer within 180 days of the date of this proclamation:
(a) Subheading 8471.99.30 is superseded by:
Conforming change: General note 3(c)(ii)(D) to the HTS is
modified by striking out ''8471.99.30 Mexico'' and by inserting in lieu thereof ''8471.99.34 Mexico''.
(b) Subheading 9027.20.40 is superseded by:
(c) Subheading 9027.90.40 is superseded by:
ANNEX II
Effective with respect to goods originating in the territory of Canada entered, or withdrawn from warehouse for consumption, on or after the dates set forth in the following tabulation:
For each of the following subheadings created by Annex I(b) and (c) of this proclamation, on or after January 1 of each of the following years, the rate of duty in the Rates of Duty 1 Special subcolumn in the HTS that is followed by the symbol ''CA'' in parentheses is deleted and the following rates of duty inserted in lieu thereof on the date specified below.
03 CFR Proc. 6311
03 CFR Proclamation 6311 of June 28, 1991
Proclamation 6311 of June 28, 1991
03 CFR National Forest System Month, 1991
By the President of the United States of America
A Proclamation
This year we Americans proudly celebrate the 100th anniversary of our National Forest System, an unparalleled national resource. A century ago, the designation of the Yellowstone Park Timber Land Reserve marked the beginning of a great movement to conserve a portion of America's vast forests for all our people. Today the National Forest System -- 191 million acres of magnificent National Forests and National Grasslands -- stretches from Alaska to Puerto Rico and from Michigan to Texas.
This anniversary celebrates what many historians consider to have been the watershed event in American conservation history. With the first forest reserve, America made a fundamental change in its policies regarding the administration of public lands. As a Nation, we recognized that there are important public values, both environmental and economic, in holding public lands in trust and managing them for long-term public benefits. The National Forest System embodies this conservation ideal.
Our National Forest System provides an excellent example of efficient and responsible management of valuable natural resources. Indeed, the development of our National Forest System has introduced the world to new ideas for sound resource management -- including multiple-use, sustained yield and the preservation of wilderness areas and scenic rivers.
All Americans can be proud of the management of our National Forest System because it demonstrates how precious natural resources can be conserved while being used to meet a variety of public needs.
The Congress, by Senate Joint Resolution 159, has designated the month of June 1991 as ''National Forest System Month'' and has authorized and requested the President to issue a proclamation in observance of this month.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim June 1991 as National Forest System Month and encourage all Americans to join in celebrating the past 100 years of natural resource stewardship in the United States.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-eighth day of June, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and fifteenth.
GEORGE BUSH
03 CFR Proc. 6312
03 CFR Proclamation 6312 of July 2, 1991
Proclamation 6312 of July 2, 1991
03 CFR National Literacy Day, 1991
By the President of the United States of America
A Proclamation
The ability to read, write, and comprehend the written word is essential to full participation in our society. Literacy opens the door to the realm of ideas and enables us to enjoy the rewards of lifelong learning. It enables us to stay more fully informed about events of the day, it helps us to be better parents, and it gives us tools that we need to exercise our rights and responsibilities as citizens. That is why we will continue to reach out to the millions of Americans who remain encumbered by poor literacy skills.
During this 25th year of the Adult Education Act, we are embarked on a bold new campaign to build a nation of students. It is known as our AMERICA 2000 strategy. One of the six National Education Goals that this strategy has been designed to reach is full adult literacy by the turn of the century. As a Nation we are committed to ensuring that every citizen will be literate and possess the knowledge and skills -- including the technical skills -- that are needed to enjoy full, productive lives in an increasingly competitive world.
On this occasion, we commend the many educators, business leaders, and volunteers in communities across the Nation who have dedicated themselves to achieving the goal of full adult literacy. In addition, we celebrate the courage and the accomplishments of those adults who are working to achieve greater literacy and to reach their fullest potential -- as parents, employees, citizens, and neighbors.
In recognition of the vital importance of literacy to the personal well-being of every American and to the strength and productivity of our entire Nation, the Congress, by House Joint Resolution 259, has designated July 2, 1991, as ''National Literacy Day'' and has authorized and requested the President to issue a proclamation in observance of this occasion.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim July 2, 1991, as National Literacy Day. I call upon the people of the United States, government officials, and all Americans to observe this day with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this second day of July, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and fifteenth.
GEORGE BUSH
03 CFR Proc. 6313
03 CFR Proclamation 6313 of July 9, 1991
Proclamation 6313 of July 9, 1991
03 CFR To Modify Temporarily the Import Quota on Peanuts
By the President of the United States of America
A Proclamation
1. Heading 9904.20.20 of the Harmonized Tariff Schedule of the United States (HTS) provides that no more than 775,189 kilograms of peanuts described therein may be entered into the United States during any 12-month period beginning August 1 in any year. This limitation was proclaimed by the President in Proclamation No. 3019 of June 8, 1953 (18 FR 3361), and was modified in subsequent proclamations, under the authority of section 22 of the Agricultural Adjustment Act of 1933, as amended (the 1933 Act) (7 U.S.C. 624).
2. On the basis of the investigation and report of the United States International Trade Commission, which conducted an investigation into this matter pursuant to section 22 of the 1933 Act, I find and declare that changed circumstances require a quantity of 100 million pounds (45,359,702 kilograms) of peanuts to be permitted entry during the quota period ending July 31, 1991, as hereinafter proclaimed, to carry out the purposes of section 22. I also find and declare that the entry of such quantities of peanuts, under the conditions hereinafter proclaimed, will not render or tend to render ineffective, or materially interfere with, the price support program of the Department of Agriculture with respect to peanuts.
3. Section 604 of the Trade Act of 1974, as amended (the Trade Act) (19 U.S.C. 2483), requires the President, from time to time, as appropriate, to embody in the HTS the substance of the relevant provisions of that Act, and of other acts affecting import treatment, and actions taken thereunder, including the removal, modification, continuance, or imposition of any import restriction.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States, including but not limited to section 22 of the 1933 Act and section 604 of the Trade Act, do hereby proclaim:
(1) In order to modify temporarily the import quota on peanuts of the type described in HTS heading 9904.20.20 and to facilitate its administration:
(a) Heading 9904.20.20 of the HTS is modified by striking out the
quota quantity ''775,189'' and by inserting in lieu thereof ''45,359,702''; and
(b) The following new note 5 is added to the U.S. Notes to
subchapter IV of chapter 99 of the HTS:
''5. Peanuts. --
No peanuts provided for in heading 9904.20.20, other than peanuts blanched or otherwise prepared or preserved, shall be entered, or withdrawn from warehouse for consumption, through July 31, 1991, unless the following certificates (or a bond for their production) for such peanuts are filed with the appropriate customs officer at the time of such entry or withdrawal:
(a) A certificate issued by the U.S. Department of Agriculture attesting to the fact that the peanuts meet the requirements as to quality, size, and wholesomeness that are specified in the Outgoing Quality Regulation -- 1990 Crop Peanuts (7 CFR 998.200), and
(b) A certificate issued by a U.S. Department of Agriculture laboratory or a designated laboratory approved by the Peanut Administrative Committee attesting to the fact that the peanuts tested 'negative' as to aflatoxin.''.
(2) In order to restore the previous quota quantity for such peanuts, HTS heading 9904.20.20 is modified by striking out the quota quantity ''45,359,702'' and by inserting in lieu thereof ''775,189'', and U.S. note 5 to subchapter IV of chapter 99 of the HTS is deleted.
(3)(a) The modifications made by paragraph (1) of this proclamation shall be effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after the date of publication of this proclamation in the Federal Register.
(b) The modifications made by paragraph (2) of this proclamation
shall be effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after August 1, 1991.
IN WITNESS WHEREOF, I have hereunto set my hand this ninth day of July, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the White House statement on the import quota, see the Weekly Compilation of Presidential Documents (vol. 27, p. 897).
03 CFR Proc. 6314
03 CFR Proclamation 6314 of July 10, 1991
Proclamation 6314 of July 10, 1991
03 CFR Lyme Disease Awareness Week, 1991
By the President of the United States of America
A Proclamation
Lyme disease is a potentially debilitating bacterial infection, transmitted to humans by the bite of a very small tick, that merits the attention of all Americans. These ticks -- which frequently appear to be no larger than a freckle -- feed primarily on deer, but other hosts may include horses, dogs, cats, birds, and cattle. Although most cases are concentrated in the coastal Northeast, Wisconsin, Minnesota, northern California, and Oregon, Lyme disease has been reported in nearly all States, and the number of recorded cases has been increasing each year.
Fortunately, however, most persons with Lyme disease respond well to prompt treatment with antibiotics if the infection is detected early. Early symptoms of the disease may include a red, bull's-eye-shaped rash at the site of a tick bite, headache, fever, joint pain, and fatigue. Later symptoms may mimic those of arthritis and/or brain, nerve, and heart disease. If left untreated, Lyme disease can seriously damage the skin, joints, heart, and nervous system.
Because Lyme disease can pose a significant health threat, and because no completely reliable test for detection of the infection has been developed, prevention is very important. Hikers, outdoor workers, and other individuals who enter wooded, tick-infested areas should take precautions to avoid being bitten by the deer tick. These include staying away from long grass or brush, covering up well with light-colored slacks and long-sleeved shirts, using tick repellents, and carefully examining oneself afterwards for ticks.
In the Federal Government, physicians and scientists are working together with their colleagues and other concerned individuals in the private sector to advance research on Lyme disease and to promote public awareness of this complex and potentially dangerous infection.
In support of those efforts, the Congress, by House Joint Resolution 138, has designated the week beginning July 21, 1991, as ''Lyme Disease Awareness Week'' and has authorized and requested the President to issue a proclamation in observance of this week.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the week beginning July 21, 1991, as Lyme Disease Awareness Week. I encourage all Americans to observe this week with appropriate programs and activities to increase their knowledge of Lyme disease.
IN WITNESS WHEREOF, I have hereunto set my hand this tenth day of July, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6315
03 CFR Proclamation 6315 of July 12, 1991
Proclamation 6315 of July 12, 1991
03 CFR Captive Nations Week, 1991
By the President of the United States of America
A Proclamation
Each July 4, we Americans celebrate our Nation's Independence with a profound sense of gratitude for the blessings of liberty. Yet, as we rejoice in our freedom, we also remember our solemn obligation to speak out in behalf of those peoples who suffer under tyranny and oppression. Thus, this month we also observe Captive Nations Week.
Established at a time when Marxist-Leninist regimes had enslaved many nations of the world and overshadowed others with the very real threat of expansionism, our annual observance of Captive Nations Week has underscored our determination to defend the ideals of national sovereignty and individual liberty. It has also underscored our belief in the inevitable triumph of freedom and democratic ideals. Now, after more than three decades, we can see that our faith has been well founded; our vigilance and resolve have borne fruit.
The world has entered a promising new era. Communism has failed throughout Eastern Europe. The Soviet Union has taken important steps toward democracy and openness. More and more regimes that once ruled by terror and force have fallen, swept away by courageous peoples who are eager to take their rightful place in the community of free nations -- a community that is marked by respect for human rights and the rule of law.
Tragically, however, despite these welcome changes, there remain captive peoples whose sufferings cannot be overlooked. The United States is determined to keep faith with all oppressed peoples and to assist peaceful efforts to promote democracy and freedom. Indeed, until freedom and independence have been achieved for every captive nation, we shall continue to call on all governments and states to uphold both the letter and the spirit of international human rights agreements, including the Universal Declaration of Human Rights, the Final Act of the Conference on Security and Cooperation in Europe, and the more recent Charter of Paris.
The Congress, by Joint Resolution approved July 17, 1959 (73 Stat. 212), has authorized and requested the President to issue a proclamation designating the third week in July of each year as ''Captive Nations Week.''
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the week beginning July 14, 1991, as Captive Nations Week. I call upon the people of the United States to observe this week with appropriate ceremonies and activities, and I urge them to reaffirm their commitment to upholding the God-given right of all peoples to liberty, justice, and self-determination.
IN WITNESS WHEREOF, I have hereunto set my hand this twelfth day of July, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6316
03 CFR Proclamation 6316 of July 23, 1991
Proclamation 6316 of July 23, 1991
03 CFR Korean War Veterans Remembrance Week, 1991
By the President of the United States of America
A Proclamation
In 1950, while Americans were still enjoying a sense of pride and relief following the Allied victory in World War II, our Nation suddenly became engaged in another great struggle for freedom. On June 25 of that year, communist forces of the North launched a ruthless attack against the free Republic of Korea. The United Nations swiftly condemned the invasion and formed the UN Command to repel the aggressor. America's Armed Forces, many of whom had just served during World War II, joined with those of 17 other nations in the ensuing conflict. Forty years before the international effort to liberate Kuwait, these courageous individuals demonstrated the power of collective resolve in the face of lawless aggression.
Addressing the American troops serving in Korea, President Truman declared: ''You will go down in history as the first army to fight under a flag of a world organization in the defense of human freedom . . . . Victory may be in your hands, but you are winning a greater thing than military victory, for you are vindicating the idea of freedom under international law.'' By the time a cease-fire was negotiated at Panmunjom on July 27, 1953, more than 54,000 American servicemen had died to defend the lives and liberty of others. Some 103,000 were wounded, and today 8,000 are still listed as missing in action. This week, we honor our Nation's Korean War veterans and remember in prayer those heroes who made the ultimate sacrifice at places such as Inchon, the Pusan Perimeter, and the Chosin Reservoir.
Veterans of the Korean War can take pride in their legacy. These heroes and their fallen comrades not only helped to restore the freedom of South Korea but also won a decisive victory for the ideals of liberty and self-determination. Today there is hope for peace and reconciliation on the Korean Peninsula, and in just a few months the Republic of Korea will take its rightful place as a member of the United Nations. These promising developments are a monument to each of the brave and selfless Americans and other UN forces who fought in Korea four decades ago for the sake of peace and freedom.
In grateful recognition of our Nation's Korean War veterans, the Congress, by House Joint Resolution 255, has designated the week beginning July 21, 1991, as ''Korean War Veterans Remembrance Week'' and has authorized and requested the President to issue a proclamation in observance of this week.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the week beginning July 21, 1991, as Korean War Veterans Remembrance Week. I urge all Americans to observe this week with appropriate programs, ceremonies, and activities in honor of the Nation's Korean War veterans. I also ask all Federal departments and agencies, organizations, and individuals to fly the flag of the United States at half-staff on July 27, 1991, in honor of those Americans who died as a result of their service in Korea.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-third day of July, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6317
03 CFR Proclamation 6317 of July 24, 1991
Proclamation 6317 of July 24, 1991
03 CFR Women's Equality Day, 1991
By the President of the United States of America
A Proclamation
Each August 26 we commemorate the ratification of the 19th Amendment to our Constitution. This Amendment guaranteed for women the right to vote and gave them an equal voice in our Nation's system of self-government. Passed by the Congress in June of 1919, the proposed Amendment was ratified by the Tennessee Legislature on August 18, 1920, and declared part of our Constitution on August 26.
Although the woman's suffrage movement had gained ground in preceding years, and although women already enjoyed the right to vote in some States, the contributions of women during World War I contributed significantly to gathering the force of public opinion behind the proposed 19th Amendment to our Constitution. President Woodrow Wilson noted that the services of women during the war were ''of the most signal usefulness and distinction. The war could not have been fought without them, or its sacrifices endured.'' The achievements of women during that epic conflict underscored not only their desire but also their ability to act as full and equal partners in the life of our country.
Since the adoption of the 19th Amendment, as more and more legal and attitudinal barriers to their advancement have fallen, women have entered positions of leadership and responsibility in virtually every field of endeavor. For example, today women are not only providing support for our Nation's military personnel but also serving as members of the Armed Forces themselves. Through the workplace, through the ballot box, and, as ever, through their families and their communities, women are helping to shape America's future.
The anniversary of the ratification of the 19th Amendment reminds us of our obligation to ensure that every individual has the opportunity to participate fully in the social, political, and economic life of our country. It also underscores the importance of having the right to vote and of faithfully exercising that right, so that this Nation might always be true to the ideals enshrined in our Constitution and Declaration of Independence.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim August 26, 1991, as Women's Equality Day. I invite all Americans to observe this day with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-fourth day of July, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6318
03 CFR Proclamation 6318 of July 25, 1991
Proclamation 6318 of July 25, 1991
03 CFR National Juvenile Arthritis Awareness Week, 1991
By the President of the United States of America
A Proclamation
It is estimated that more than 250,000 children in the United States suffer from some form of arthritis. A chronic inflammatory disease of unknown cause, juvenile arthritis may attack the joints and major organs of the body, such as the heart, liver, spleen, and eyes. The disease, which can last a lifetime, often makes even simple tasks difficult and frustrating for its victims.
In addition to the physical pain and limitations that it imposes on its young victims, juvenile arthritis can inflict emotional and financial hardship on entire families. This week, as our Nation reaffirms its commitment to the fight against juvenile arthritis, we commend the courage of the children who cope with the disease from day to day. We also applaud the strength and the resourcefulness of their families in dealing with the disease.
Public awareness of juvenile arthritis and the importance of related scientific research is critical. Today the Federal Government and private voluntary organizations across the country are working together to educate Americans about juvenile arthritis while advancing studies of the disease. These cooperative efforts are evidence of our Nation's determination to conquer juvenile arthritis.
The Congress, by Senate Joint Resolution 142, has designated the week beginning July 28, 1991, as ''National Juvenile Arthritis Awareness Week'' and has authorized and requested the President to issue a proclamation in observance of this week.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the week beginning July 28, 1991, as National Juvenile Arthritis Awareness Week. I urge all Americans -- and, in particular, government agencies and health care organizations -- to observe this week with appropriate programs and activities designed to promote public awareness of juvenile arthritis.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-fifth day of July, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6319
03 CFR Proclamation 6319 of July 31, 1991
Proclamation 6319 of July 31, 1991
03 CFR Helsinki Human Rights Day, 1991
By the President of the United States of America
A Proclamation
In 1975, when the United States, Canada, and 33 European states joined in adopting the Helsinki Final Act of the Conference on Security and Cooperation in Europe, we affirmed ''the close link between peace and security in Europe and in the world as a whole.'' Signatories to the Helsinki accords also recognized that respect for human rights and fundamental freedoms is essential not only to achieving lasting peace among nations but also to promoting their social and economic development. During the past 16 years, the CSCE process begun at Helsinki has played a leading role in building mutual confidence, reducing the risk of conflict, and enhancing the growth of democracy and openness in Europe. This year we welcome Albania's entry into the CSCE community and its commitment to respect human rights and fundamental freedoms that this symbolizes.
The tremendous changes that have swept central and eastern Europe underscore the CSCE's effectiveness in advancing the goal of universal compliance with the Helsinki accords. At their meeting in Paris last November, CSCE members welcomed the emergence of a new transatlantic partnership of nations based on a mutual commitment to upholding human rights and the rule of law. In signing the Charter of Paris for a New Europe, members added to existing CSCE principles new and sweeping commitments to political pluralism, free elections, free enterprise, and the rule of law. New CSCE institutions established at the Paris summit -- such as the Office for Free Elections in Warsaw, the CSCE Secretariat in Prague, and the Conflict Prevention Center in Vienna -- strengthen the CSCE's ability to help consolidate and to build upon recent gains. The United States encouraged and welcomed these developments as evidence that the CSCE can serve not only as a catalyst for change but also itself change to reflect the demands of an evolving Europe.
During the June meeting of CSCE foreign ministers in Berlin, the Conference endorsed the report of the Valletta Meeting on the Peaceful Settlement of Disputes and agreed to designate the Conflict Prevention Center in Vienna as the nominating institution to help settle disputes. Members also agreed on a mechanism for holding emergency official-level meetings of the CSCE, which has first been called into action in the current Yugoslav crisis.
As the Yugoslav crisis demonstrates, major challenges remain. The United States will continue to suggest that the CSCE strengthen its capacity to address the political sources of conflict. One area of special concern to us is the persecution of ethnic minorities. Ethnic tensions in Europe provide a solemn and urgent reminder that we still have much work to do in achieving universal compliance with both the letter and the spirit of the Helsinki accords. The United States has sought to lead other member-states in exploring ways that the CSCE can help reduce those tensions and fulfill the promise of a Europe that is whole and free, and at peace with itself.
As an expression of the special importance that the United States continues to attach to the CSCE in a changing Europe, the Congress, by House Joint Resolution 264, has designated August 1, 1991, as ''Helsinki Human Rights Day'' and has authorized and requested the President to issue a proclamation in observance of this day.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim August 1, 1991, as Helsinki Human Rights Day and reaffirm the United States dedication to the principles of human dignity and freedom -- principles that are enshrined in the Helsinki Final Act. As we Americans observe this day with appropriate programs, ceremonies, and activities, let us call on all signatories of the Final Act to fulfill their obligation to respect the rights and dignity of all their citizens.
IN WITNESS WHEREOF, I have hereunto set my hand this thirty-first day of July, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6320
03 CFR Proclamation 6320 of August 2, 1991
Proclamation 6320 of August 2, 1991
03 CFR Agreement on Trade Relations Between the United States of America and the Union of Soviet Socialist Republics
By the President of the United States of America
A Proclamation
1. Pursuant to the authority vested in me by the Constitution and the laws of the United States, as President of the United States of America, I, acting through duly empowered representatives, entered into negotiations with representatives of the Union of Soviet Socialist Republics to conclude an agreement on trade relations between the United States of America and the Union of Soviet Socialist Republics.
2. These negotiations were conducted in accordance with the requirements of the Trade Act of 1974 (Public Law 93-618, January 3, 1975; 88 Stat. 1978), as amended (the ''Trade Act'').
3. As a result of these negotiations, an ''Agreement on Trade Relations Between the United States of America and the Union of Soviet Socialist Republics,'' including annexes and exchanges of letters which form an integral part of the Agreement, the foregoing in English and Russian, was signed on June 1, 1990, by duly empowered representatives of the two Governments and is set forth as an annex to this proclamation.
4. This Agreement conforms to the requirements relating to bilateral commercial agreements set forth in section 405(b) of the Trade Act (19 U.S.C. 2435(b)).
5. Article XVII of the Agreement provides that the Agreement shall enter into force on the date of exchange of written notices of acceptance by the two Governments.
6. Section 405(c) of the Trade Act (19 U.S.C. 2435(c)) provides that a bilateral commercial agreement providing nondiscriminatory treatment to the products of a country heretofore denied such treatment, and a proclamation implementing such agreement, shall take effect only if approved by the Congress under the provisions of that Act.
7. Section 604 of the Trade Act (19 U.S.C. 2483) authorizes the President to embody in the Harmonized Tariff Schedule of the United States the substance of the provisions of that Act, of other acts affecting import treatment, and actions taken thereunder.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States, including but not limited to sections 404, 405, and 604 of the Trade Act of 1974, as amended, do proclaim that:
(1) This proclamation shall become effective, said Agreement shall enter into force, and nondiscriminatory treatment shall be extended to the products of the Union of Soviet Socialist Republics, in accordance with the terms of said Agreement, on the date of exchange of written notices of acceptance in accordance with Article XVII of said Agreement. The United States Trade Representative shall publish notice of the effective date in the Federal Register. On such date, and without prejudice to the long-standing U.S. policy of not recognizing the forcible incorporation of Estonia, Latvia, and Lithuania into the Soviet Union, nondiscriminatory tariff treatment shall also be extended to the products of Estonia, Latvia, and Lithuania.
(2) Effective with respect to articles entered, or withdrawn from warehouse for consumption, into the customs territory of the United States on or after the date provided in paragraph (1) of this proclamation, general note 3(b) to the Harmonized Tariff Schedule of the United States, enumerating those countries whose products are subject to duty at the rates set forth in Rates of Duty Column 2 of the tariff schedule, is modified by striking out ''Estonia'', ''Latvia'', ''Lithuania'', and ''Union of Soviet Socialist Republics''.
IN WITNESS WHEREOF, I have hereunto set my hand this second day of August, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's letter to Congress on Soviet-United States trade, see the Weekly Compilation of Presidential Documents (vol. 27, pp. 1098, 1423). For a statement by Press Secretary Fitzwater on the trade agreement, see p. 1121.
AGREEMENT ON TRADE RELATIONS BETWEEN THE UNITED STATES OF AMERICA AND THE UNION OF SOVIET SOCIALIST REPUBLICS
The United States of America and the Union of Soviet Socialist Republics (hereinafter referred to collectively as ''Parties'' and individually as ''Party''),
Recognizing that the development of bilateral trade may contribute to better mutual understanding and cooperation,
Taking into account the favorable implications for trade expansion of the economic restructuring and the development of a market-based economy in the USSR,
Considering that expanded trade relations between the Parties will contribute to the general well-being of the peoples of each Party, and promote respect for internationally recognized rights of working people,
Acknowledging that the development of trade relations and direct contact between Soviet organizations and United States nationals and companies will promote openness and mutual understanding,
Considering that economic ties are an important and necessary element in the strengthening of their bilateral relations,
Reaffirming their desire to develop economic cooperation in accordance with the principles and provisions of the Final Act signed in Helsinki on the 1st of August, 1975, and other documents of the Conference on Security and Cooperation in Europe, and in accordance with the Document of the Conference on Economic Cooperation in Europe held in Bonn in March-April 1990,
Being convinced that an agreement on trade relations between the two Parties will best serve their mutual interests, and
Desiring to create a framework which will foster the development and expansion of commercial ties between Soviet organizations and United States nationals and companies,
Have agreed as follows:
Article I. -- Most Favored Nation and Nondiscriminatory Treatment
1. Each Party shall accord unconditionally to products originating in or exported to the territory of the other Party treatment no less favorable than that accorded to like products originating in or exported to the territory of any third country in all matters relating to:
(a) customs duties and charges of any kind imposed on or in connection with importation or exportation, including the method of levying such duties and charges;
(b) methods of payment for imports and exports, and the international transfer of such payments;
(c) rules and formalities in connection with importation and exportation, including those relating to customs clearance, transit, warehouses and transhipment;
(d) taxes and other internal charges of any kind applied directly or indirectly to imported products; and
(e) rules concerning sale, purchase, transport, distribution, storage and use of products on the domestic market.
2. Each Party shall accord to products originating in or exported to the territory of the other Party nondiscriminatory treatment with respect to the application of quantitative restrictions and the granting of licenses.
3. Each Party shall accord to imports of products and services originating in the territory of the other Party nondiscriminatory treatment with respect to the allocation of the currency needed to pay for such imports.
4. The provisions of paragraphs 1, 2 and 3 shall not apply to:
(a) advantages accorded by either Party by virtue of such Party's full membership in a customs union or free trade area;
(b) advantages accorded to third countries for the facilitation of frontier traffic;
(c) advantages accorded to third countries in accordance with the General Agreement on Tariffs and Trade (the ''GATT''), and advantages accorded to developing countries under the GATT and other international agreements; and
(d) actions taken under Article XI (Market Disruption) of this Agreement.
Article II. -- General Obligations With Respect to Market Access for Products and Services
1. Recognizing the mutual benefit to trade relations on the basis of this Agreement and consistent with the most favored nation principles expressed in Article I, the Parties shall, on the basis of reciprocity and without detriment to relations with third countries, improve market access for products and services of the other Party and optimize mutual commercial opportunities, including through the satisfactory reciprocation of market opening measures resulting from multilateral negotiations. Taking the above into account and resulting from the development of market mechanisms in the Soviet Union and its closer relationship with the GATT, opportunities shall be created to increase step by step national treatment for products and services of the United States.
2. Trade in products and services shall be effected by contracts between nationals and companies of the United States and organizations of the Soviet Union concluded in the exercise of their independent commercial judgment and on the basis of customary commercial considerations such as price, quality, delivery and terms of payment.
3. Neither Party shall require or encourage Soviet organizations or U.S. nationals or companies to engage in barter or countertrade transactions. Nevertheless, where nationals, companies or organizations decide to resort to countertrade operations, the Parties will encourage them to furnish to each other all necessary information to facilitate the transaction.
4. Each Party shall accord products imported from the territory of the other Party treatment no less favorable than that accorded to like products originating in any third country in relation to technical regulations and standards, including conformity testing and certification. Furthermore, the Parties shall ensure that such technical regulations and standards are not prepared, adopted, or applied in a discriminatory manner, with a view to creating obstacles to bilateral trade, or to protect domestic production.
Article III. -- Expansion and Promotion of Trade
1. The Parties affirm their desire to expand trade in products and services consistent with the terms of this Agreement. They shall take appropriate measures to encourage and facilitate the exchange of goods and services and to secure favorable conditions for long-term development of trade relations between Soviet organizations and United States nationals and companies.
2. The Parties shall take appropriate measures to encourage the expansion of commercial contacts with a view to increasing trade. In this regard, the Soviet Party expects that, during the term of this Agreement, Soviet organizations shall increase their orders in the United States for products and services, while the United States Party anticipates that the effect of this Agreement shall be to encourage increased purchases by United States nationals and companies of products and services from the Soviet Union. Toward this end, the Parties shall publicize this Agreement and ensure that it is made available to all interested parties.
3. The Parties shall encourage interested nationals, companies and organizations of both countries to look for opportunities to expand trade in machinery, equipment and technologies, including creation of favorable financial conditions to carry on trade in such products.
4. Each Party shall encourage and facilitate the holding of trade promotional events such as fairs, exhibitions, missions and seminars in its territory and in the territory of the other Party. Similarly, each Party shall encourage and facilitate the participation of its respective nationals, companies and organizations in such events. Subject to the laws in force within their respective territories, the Parties agree to allow the import and re-export on a duty free basis of all articles for use in such events, provided that such articles are not sold or otherwise transferred.
Article IV. -- Government Commercial Offices
1. Each Party shall allow government commercial offices to hire directly host country nationals and, subject to its laws and procedures on entry and residence of aliens, third country nationals.
2. Each Party shall ensure unhindered access of host country nationals to government commercial offices of the other Party.
3. Each Party shall encourage the participation of its nationals, companies and organizations in the activities of their respective government commercial offices, especially with respect to events held on the premises of such commercial offices.
4. Each Party shall create favorable conditions for access by government commercial office personnel of the other Party to host country officials at both the federal and other levels, representatives of state enterprises, institutes, foreign trade organizations, cooperatives, joint ventures and other organizations.
Article V. -- Business Facilitation
1. Each Party shall permit the establishment within its territory of commercial representations of companies and organizations of the other Party and shall accord such representations treatment at least as favorable as that accorded to commercial representations of companies and organizations of third countries. If either Party accredits commercial representations, that Party shall establish promptly an expedited accreditation procedure. Through this procedure, a central accrediting authority shall exercise its best efforts to consider an application for accreditation and, in the case of a positive decision, to issue a certificate of accreditation to commercial representations of the other Party all within 60 days of the submission of such application. The accreditation procedure shall be administered with a goal of maximizing the participation in the market of the accrediting Party of companies already operating in that market, new entrants and small companies. Commercial representations of a Party accredited through the above procedure shall be accorded treatment no less favorable than that accorded to accredited commercial representations of third countries, except that they shall not be entitled to the assistance of the accrediting Party in locating office and residential space.
2. Each Party shall afford commercial representations of the other Party fair and equitable treatment with respect to the conduct of their operations.
3. Each Party shall permit commercial representations of the other Party to import and use in accordance with normal commercial practices, office and other equipment, such as typewriters, photocopiers, computers and telefax machines in connection with the conduct of their activities in the territory of such Party.
4. Each Party shall permit on a nondiscriminatory basis, at nondiscriminatory prices (where such prices are set or controlled by the government), commercial representations of the other Party access to office space and living accommodations, whether or not designated for use by foreigners, as well as telecommunications, municipal and social services.
5. Each Party shall permit such commercial representations established in its territory to hire directly employees who are nationals of either Party or of third countries and to compensate such employees on terms and in a currency that is mutually agreed between the parties, consistent with such Party's minimum wage laws.
6. Each Party shall permit nationals, companies and organizations of the other Party to advertise their products and services (a) through direct agreement with the advertising media, including television, radio, print and billboard, and (b) by direct mail, including the use of enclosed envelopes and cards preaddressed to that national, company or organization.
7. Each Party shall permit nationals, companies and organizations of the other Party to conduct market studies, either directly or by contract, within its territory. To facilitate the conduct of market research, each Party, upon request of the other Party, shall make available to interested nationals, companies and organizations of that Party, non-confidential, non-proprietary market information within its possession.
8. Each Party shall permit commercial representations to stock and provide an adequate supply of samples and replacement parts for before and after sales service on a non-commercial basis.
9. Each Party shall facilitate direct contact between end-users in its territory and nationals, companies, and organizations of the other Party. Each Party shall create favorable conditions for direct contacts between its organizations and government institutions whose decisions affect potential sales and purchases of goods and services and nationals, companies, and organizations of the other Party. Each Party shall also encourage direct commercial transactions between Soviet organizations and U.S. nationals and companies, including those which act from either side as producers, end-users or buyers.
10. Each Party shall permit nationals, companies and organizations of the other Party to engage and serve as agents or consultants for nationals, companies or organizations of either Party and of third countries on prices and terms mutually agreed between the parties. Each Party shall permit nationals, companies and organizations of the other Party to engage its nationals, companies and organizations that act as distributors, provided that such nationals, companies or organizations are entitled to engage in such activities, on prices and terms mutually agreed between the parties.
11. Neither Party shall impose measures which unreasonably impair contractual or property rights or other interests acquired within its territory by nationals, companies and organizations of the other Party.
12. Nothing in paragraphs 1, 5 or 10 of this Article shall be interpreted to confer any rights under either Party's laws and procedures on entry and residence of aliens.
Article VI. -- Transparency
1. Each Party shall make available publicly on a timely basis all laws and regulations related to commercial activity, including trade, investment, taxation, banking, insurance and other financial services, transport and labor.
2. Each Party shall provide nationals, companies and organizations of the other Party with access to available non-confidential, non-proprietary data on the national economy and individual sectors, including information on foreign trade.
3. Each Party shall allow the other Party, when interested, the opportunity to consult on the formulation of rules and regulations which affect the conduct of business activities.
Article VII. -- Financial Provisions Relating to Trade in Products and Services
1. Unless otherwise agreed between the parties to individual transactions, all commercial transactions between Soviet organizations and United States nationals and companies shall be made in United States dollars or any other freely convertible currency that may be mutually agreed upon by such organizations, nationals and companies.
2. No restrictions shall be placed by either Party upon the export from its territory of freely convertible currencies, including deposits or instruments representative of such currencies, obtained in an authorized manner in connection with trade in products and services by nationals, companies and organizations of the other Party.
3. Nationals, companies and organizations of a Party holding currency of the other Party received in an authorized manner may deposit such currency in authorized financial institutions located in the territory of the other Party and may maintain and use such currency for local expenses in accordance with applicable laws and regulations of the other Party.
4. Without derogation from paragraph 2, in connection with trade in products and services, each Party shall grant to nationals, companies and organizations of the other Party most-favored-nation treatment with respect to:
(a) opening and maintaining accounts, in both foreign and local currency, and having access to funds deposited, in financial institutions located in the territory of the Party;
(b) payments, remittances and transfers of freely convertible currencies, or financial instruments representative thereof, between the territories of the two Parties, as well as between the territory of that Party and that of any third country;
(c) rates of exchange offered by financial institutions authorized to deal in foreign exchange, and authorized means of obtaining freely convertible currencies; and
(d) the receipt and use of local currency.
Article VIII. -- Protection of Intellectual Property
1. Proceeding from the importance of intellectual property and the necessity of its legal protection to promote trade and economic cooperation and acknowledging the necessity of creating more favorable conditions for adequate and effective legal protection of intellectual property and its enforcement, the Parties have agreed that they shall:
(a) ensure in accordance with the provisions of internal legislation, protection and implementation of intellectual property rights, including copyright on literary, scientific and artistic works including computer programs and data bases, patents and other rights on inventions and industrial designs, know-how, trade secrets, trade marks and service marks, trade names, and protection against unfair competition;
(b) ensure that their international commitments in the field of intellectual property rights are honored. Accordingly, each Party reaffirms the commitments made with respect to industrial property in the Paris Convention for the Protection of Industrial Property of March 30, 1883, as revised at Stockholm on July 14, 1967 (the ''Paris Convention''), and the commitments made with respect to copyright in the Universal Copyright Convention of September 6, 1952; and
(c) encourage appropriate arrangements between institutions within the United States and the Union of Soviet Socialist Republics to provide protection for intellectual property rights.
2. To provide adequate and effective protection and enforcement of intellectual property rights, each Party agrees to submit, to their respective legislative bodies, the draft laws necessary to carry out the obligations of this Article and to exert their best efforts to enact and implement these laws. In this connection, the Parties will:
(a) enhance their copyright relations through adherence to the Berne Convention for the Protection of Literary and Artistic Works (Paris 1971) (the ''Berne Convention'');
(b) provide copyright protection for computer programs and data bases as literary works under their copyright laws;
(c)(1) provide protection for sound recordings first fixed by their respective nationals or companies or first published in their national territory;
(c)(2) such protection shall include, among the minimum rights guaranteed to producers of these works, a right of reproduction and a right of public distribution and importation, and notwithstanding the rights of an owner of a particular copy of a sound recording in such copy, the producer of a sound recording shall continue to enjoy the exclusive commercial rental and lending rights in such copy; and
(c)(3) the Parties agree, that immediately after both Parties have enacted protection for sound recordings originating in their respective territories, to take such steps as are necessary under domestic law to extend such protection to sound recordings originating in the other Party's territory;
(d) provide product and process patent protection for all areas of technology (except the Parties may exclude materials useful solely in atomic weapons) for a term of at least 20 years from the filing of an application or at least 17 years from the grant of the patent; and
(e) provide broad protection for trade secrets.
3. Upon the date when both Parties are members of the Berne Union, the protection of works in existence prior to that date shall be determined in accordance with Article 18 of the 1971 Paris Act of the Berne Convention.
4. The Parties shall introduce in their legislative proposals the principles enumerated in the side letters to this Agreement. These side letters shall form an integral part of this Agreement.
5. The Parties agree to constitute a working group on intellectual property matters in accordance with the terms and for the purposes set forth in the side letters attached hereto.
Article IX. -- Transit
Each Party shall facilitate the transit of products originating in the territory of the other Party and transported via the territory of the Party in accordance with the laws and regulations in force in the Party.
Article X. -- Subjects for Further Economic Cooperation
1. The Parties shall take appropriate steps to foster economic cooperation on as broad a base as possible in all fields deemed to be in their mutual interest, including with respect to statistics and standards.
2. The Parties, taking into account the growing economic significance of service industries, agree to consult on matters affecting the conduct of service business between the two countries and particular matters of mutual interest relating to individual service sectors with the objective, among others, of attaining maximum possible market access and liberalization.
Article XI. -- Market Disruption Safeguards
1. The Parties agree to consult promptly at the request of either Party whenever either actual or prospective imports of products originating in the territory of the other Party cause or threaten to cause or significantly contribute to market disruption. Market disruption exists within a domestic industry whenever imports of an article, like or directly competitive with an article produced by such domestic industry, are increasing rapidly, either absolutely or relatively, so as to be a significant cause of material injury, or threat thereof, to such domestic industry.
2. The consultations provided for in paragraph 1 shall have the objectives of (a) presenting and examining the factors relating to such imports that may be causing or threatening to cause or significantly contributing to market disruption, and (b) finding means of preventing or remedying such market disruption. Such consultations shall be concluded within sixty days from the date of the request for such consultation, unless the Parties otherwise agree.
3. Unless a different solution is mutually agreed upon during the consultations, the importing Party may (a) impose quantitative import limitations, tariff measures or any other restrictions or measures it deems appropriate, and for such period of time it deems necessary, to prevent or remedy threatened or actual market disruption, and (b) take appropriate measures to ensure that imports from the territory of the other Party comply with such quantitative limitations or other restrictions introduced in connection with market disruption. In this event, the other Party shall be free to deviate from its obligations under this Agreement with respect to substantially equivalent trade.
4. Where in the judgment of the importing Party, emergency action is necessary to prevent or remedy such market disruption, the importing Party may take such action at any time and without prior consultations provided that such consultations shall be requested immediately thereafter.
5. In the selection of measures under this Article, the Parties shall endeavor to give priority to those measures which cause least disturbance to the achievement of the goals of this Agreement.
6. The Parties acknowledge that the elaboration of the market disruption safeguard provisions in this Article is without prejudice to the right of either Party to apply laws applicable to unfair trade.
7. Each Party shall ensure that its domestic legislation and procedures for determining market disruption are transparent and afford affected parties an opportunity to submit their views.
Article XII. -- Dispute Settlement
1. Nationals, companies and organizations of either Party shall be accorded national treatment with respect to access to all courts and administrative bodies in the territory of the other Party, as plaintiffs, defendants or otherwise. They shall not claim or enjoy immunity from suit or execution of judgment, proceedings for the recognition and enforcement of arbitral awards or other liability in the territory of the other Party with respect to commercial transactions; they also shall not claim or enjoy immunities from taxation with respect to commercial transactions, except as may be provided in other bilateral agreements.
2. The Parties encourage the adoption of arbitration for the settlement of disputes arising out of commercial transactions concluded between nationals and companies of the United States and organizations of the Soviet Union. Such arbitration may be provided for by agreements in contracts between such nationals, companies or organizations, or in separate written agreements between them.
3. The parties to individual transactions may provide for arbitration under any internationally recognized arbitration rules, including the UNCITRAL Rules in which case the parties should designate an Appointing Authority under said Rules in a country other than the United States or the Soviet Union.
4. Unless otherwise agreed between the parties, the parties should specify as the place of arbitration a country, other than the United States or the Soviet Union, that is a party to the U.N. Convention on the Recognition and Enforcement of Foreign Arbitral Awards, signed in New York, June 10, 1958.
5. Nothing in this Article shall be construed to prevent, and the Parties shall not prohibit, the parties from agreeing upon any other form of arbitration or dispute settlement which they mutually prefer and agree best suits their particular needs.
6. Each Party shall ensure that an effective means exists within its territory for the recognition and enforcement of arbitral awards.
Article XIII. -- National Security
The provisions of this Agreement shall not limit the right of either Party to take any action for the protection of its security interests.
Article XIV. -- Consultations
1. The Parties agree to consult periodically within the framework of the Joint US-USSR Commercial Commission to review the operation of this Agreement.
2. The Parties agree to consult promptly through appropriate channels at the request of either Party to discuss any matter concerning the interpretation or implementation of this Agreement and other relevant aspects of the relations between the Parties.
Article XV. -- Definitions
1. As used in this Agreement, the terms set forth below shall have the following meaning:
(a) ''company,'' means any kind of corporation, company, association, sole proprietorship or other organization legally constituted under the laws and regulations of a Party or an internal subdivision thereof, whether or not organized for pecuniary gain or privately or governmentally owned; provided that, either Party reserves the right to deny any company the advantages of this Agreement if nationals of any third country control such a company and, in the case of a company of the other Party, that company has no substantial business activities in the territory of the other Party or is controlled by nationals of a third country with which the denying country does not maintain normal economic relations.
(b) ''commercial representation,'' means a representation of a company or organization of a Party.
(c) ''national,'' means a natural person who is a national of a Party under its applicable law.
(d) ''organization,'' means, with respect to the United States, a company of the United States and, with respect to the Soviet Union, any economic entity or enterprise (including a company) engaging in foreign trade or other commercial activities with foreign nationals or companies.
Article XVI. -- General Exceptions
1. Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where the same conditions prevail, or a disguised restriction on international trade, nothing in this Agreement shall be construed to prohibit the adoption or enforcement by a Party of:
(a) measures necessary to secure compliance with laws or regulations which are not contrary to the purposes of this Agreement;
(b) measures for the protection of intellectual property rights and the prevention of deceptive practices as set out in Article VIII of this Agreement (and related side letters); or
(c) any other measure referred to in Article XX of the GATT.
Article XVII. -- Entry into Force, Term and Termination
1. This Agreement (including its side letters which form an integral part of the Agreement) shall enter into force upon an exchange of diplomatic notes in which the Parties notify each other that all necessary legal requirements for entry into force have been fulfilled and shall remain in force as provided in this Article.
2. The initial term of this Agreement shall be three years, subject to paragraph 4 below.
3. This Agreement shall be extended for successive terms of three years each unless either Party has given written notice to the other Party of its intent to terminate this Agreement at least 30 days prior to the expiration of the then current term.
4. Either Party may terminate this Agreement upon written notice to the other Party and in such case the Parties will, to the fullest extent practicable, seek to minimize possible disruption to their trade relations.
IN WITNESS WHEREOF, the undersigned, being duly authorized, have signed this Agreement.
DONE at Washington this first day of June, 1990, in duplicate, in the English and Russian languages, both texts being equally authentic.
03 CFR Proc. 6321
03 CFR Proclamation 6321 of August 12, 1991
Proclamation 6321 of August 12, 1991
03 CFR National Senior Citizens Day, 1991
By the President of the United States of America
A Proclamation
Many a poet and philosopher has reverently described it as ''the autumn of life,'' or the rich twilight that eventually follows the glorious day of youth. Today, however, millions of American seniors are changing the way we view old age. Far from fading into the sunset, these men and women are serving as brilliant points of light in their communities. They are serving others through a host of volunteer programs and personal acts of kindness; they are sharing their ample knowledge and experience in the workplace; and they are quietly enriching their families with a wealth of love and wisdom. Across the United States, older Americans are proving that the senior years -- like any other season in life -- hold great opportunities and rewards of their own.
Today an estimated 42 million Americans are aged 60 and older, and their numbers are growing steadily. The United States Department of Health and Human Services reports that America now has the second largest population of older people in the world. On this occasion, as we gratefully salute our Nation's senior citizens -- the majority of whom are healthy and active -- we also recognize those older Americans who need special assistance.
Through the United States Administration on Aging, and through the vast network of State and regional agencies on aging, our Nation is working to provide senior citizens with the opportunities and services that they need and deserve. Many of our efforts are designed to assist elderly Americans who do not have a family member to help care for them. We are also working to provide support to older Americans who serve as primary caregivers for an ill or disabled spouse, parent, or other elderly relative. These efforts underscore our respect for older Americans and our determination to ensure that they are able to live with dignity, comfort, and security.
In honor of those who have given so much to succeeding generations, the Congress, by House Joint Resolution 181, has designated August 18, 1991, as ''National Senior Citizens Day'' and has authorized and requested the President to issue a proclamation in observance of this day.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim August 18, 1991, as National Senior Citizens Day. I call on all Americans to observe this day with appropriate programs, ceremonies, and activities in honor of our Nation's senior citizens.
IN WITNESS WHEREOF, I have hereunto set my hand this twelfth day of August, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6322
03 CFR Proclamation 6322 of August 15, 1991
Proclamation 6322 of August 15, 1991
03 CFR National Sarcoidosis Awareness Day, 1991
By the President of the United States of America
A Proclamation
Sarcoidosis, a disease that affects many of our fellow citizens and people around the world, remains shrouded in mystery. Skin-related symptoms of this chronic, multi-system disease were first recognized more than 100 years ago; however, the effects of sarcoidosis on other bodily organs were not observed until the first quarter of this century. Today researchers are still trying to learn more about the cause and the nature of this affliction.
Sarcoidosis can strike people of all races and of all ages, but, according to the United States Department of Health and Human Services, it is most common among black Americans who are between the ages of 20 and 40. While no cause has yet been identified, it is thought that heredity predisposes some individuals to the disease. Intensive research during the past decade has not only supported this belief but also enabled physicians to diagnose and to manage sarcoidosis more effectively.
Today researchers at both the National Institute of Allergy and Infectious Diseases and the National Heart, Lung, and Blood Institute are leading studies on the etiology, diagnosis, and treatment of sarcoidosis. On this occasion, we recognize their work and that of other concerned physicians and scientists throughout the United States. We also salute the victims of sarcoidosis who demonstrate great courage and determination in their efforts to cope with the disease; and we pay tribute to their family members and to other concerned Americans who are engaged in grass-roots efforts to promote awareness of sarcoidosis, as well as improved treatment and support for its victims.
To focus national attention on sarcoidosis, the Congress, by House Joint Resolution 309, has designated August 29, 1991, as ''National Sarcoidosis Awareness Day'' and has authorized and requested the President to issue a proclamation in observance of this day.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim August 29, 1991, as National Sarcoidosis Awareness Day. I invite all Americans to join in observing this day with appropriate programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this fifteenth day of August, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6323
03 CFR Proclamation 6323 of August 20, 1991
Proclamation 6323 of August 20, 1991
03 CFR National Rice Month, 1991
By the President of the United States of America
A Proclamation
A staple food for much of the world's population, rice is one of the most important grains grown today. It is cultivated in more than 100 countries and on every continent except Antarctica. Rice was cultivated in North America as early as 1696. Indeed, by the time the United States declared its independence from Great Britain, rice had become one of this country's major agricultural exports.
Today the United States is one of the world's leading exporters of rice, supplying about 20 percent of the rice in world trade. In addition, much American-grown rice has been provided to other countries through Food for Peace programs, which have helped to promote the social and economic well-being of less developed nations and provided vital sustenance to victims of disaster.
The United States Department of Agriculture reports that American growers harvested more than 7 million metric tons of rice last year. The value of this crop is important to our Nation's economy.
Rice is an important agricultural commodity not only in terms of its economic value but also in terms of its nutritional value. An excellent source of complex carbohydrates, rice can be a healthy part of a well-balanced diet. It contains only a trace of fat and is cholesterol- and sodium-free.
Consumers can enjoy various types of rice, from brown rice to the more traditional white rice, which is utilized in gourmet recipes as it is in simple meals. Wild rice, a native grain of North America, is being increasingly enjoyed by American consumers.
Rice may also be processed in various forms: as bran or flour in baked goods, or as an ingredient in cereals and healthful snacks. Rice is also an important component in the domestic brewing of beer.
To promote greater awareness of the versatility and the value of rice, and to celebrate America's status as a major exporter of rice for both commercial and humanitarian purposes, the Congress, by Public Law 101-492, has designated the month of September 1991 as ''National Rice Month'' and has authorized and requested the President to issue a proclamation in observance of this month.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim September 1991 as National Rice Month.
IN WITNESS WHEREOF, I have hereunto set my hand this twentieth day of August, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6324
03 CFR Proclamation 6324 of August 20, 1991
Proclamation 6324 of August 20, 1991
03 CFR National Awareness Month for Children With Cancer, 1991
By the President of the United States of America
A Proclamation
Our Nation's fight against cancer has advanced on many fronts, from education and prevention to diagnosis and treatment. This month, we celebrate the remarkable progress that has been made in saving children with cancer.
The Department of Health and Human Services reports that, thanks to important scientific breakthroughs, the mortality rate for childhood cancer has dropped by more than 50 percent since 1950. This dramatic decline has been made possible by improved diagnostic and prognostic techniques, by advances in technology, and by advances in the treatment of serious forms of cancer such as leukemia and Wilm's tumor. For example, long-term research has enabled physicians to predict with greater success which patients are most likely to suffer a relapse -- thereby helping the health care team to plan the optimal course of therapy.
As a result of such progress, more than 70 percent of the children who were diagnosed in the 1980s as having acute lymphocytic leukemia have sustained long-term remission and can be considered cured. This is an incredible improvement when compared to the fact that, during the early 1960s, only about 4 percent of leukemia patients survived the disease.
More than a tale of medical progress, however, the story of childhood cancer also reveals the strength and the resilience of the human spirit. Children with cancer have consistently inspired others through their courage and determination. During National Awareness Month for Children with Cancer, we salute these brave youngsters and their parents, who share in their suffering and provide them with love and support, as well as the many scientists and researchers who are pressing on to new frontiers in the fight against this disease. We also gratefully recognize the pediatric oncology nurses, the social workers and clergy, and the many other professionals and volunteers who -- with great compassion and skill -- help young cancer victims and their families through difficult times.
Of course, while members of the National Cancer Institute and other, private research organizations have won key victories for children with cancer, we know that much work remains to be done. According to the Department of Health and Human Services, an estimated 7,800 American children will be diagnosed this year as having cancer. We will continue working together for their sake and for the sake of generations to come.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim September 1991 as National Awareness Month for Children with Cancer. I invite all Americans to join in observing this month with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twentieth day of August, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6325
03 CFR Proclamation 6325 of August 21, 1991
Proclamation 6325 of August 21, 1991
03 CFR National Park Week, 1991
By the President of the United States of America
A Proclamation
The founding of our magnificent Yellowstone National Park in 1872 not only marked an important milestone in the history of American conservationism but also inspired a worldwide movement to set aside certain lands for the preservation of their unique scenic value and natural resources. Today more than 100 countries boast some 1,200 national parks or equivalent preserves.
To help protect the scenery, wildlife, and historic sites that are found throughout our National Park System, the Congress established the National Park Service on August 25, 1916. The National Park Service is responsible for managing the lands in its care ''in such manner and by such means as will leave them unimpaired for the enjoyment of future generations.'' It is a noble and important task because our national parks are more than scenic preserves. As the renowned conservationist and civic leader, J. Horace McFarland, observed:
Now celebrating its 75th anniversary, the National Park Service has helped to lead the way in protecting America's natural resources and cultural and historic treasures. The Service holds in trust for the American people such riches as the awe-inspiring vistas of the Grand Canyon, the sublime cliffs and forests of Yosemite, the hallowed ground of Gettysburg, the rugged beauty of Acadia, and the towering majesty of our Statue of Liberty. It is estimated that more than 250 million people from throughout the United States and around the world will visit these and other national parks this year.
The National Park Service will celebrate its 75th anniversary with programs designed to focus attention on the inestimable value of our national parks and on the need for their preservation. In recognition of this anniversary, the Congress, by Senate Joint Resolution 179, has designated the week beginning August 25, 1991, as ''National Park Week'' and has authorized and requested the President to issue a proclamation in observance of this week.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the week of August 25 through August 31, 1991, as National Park Week. I invite all Americans, as well as our friends around the world, to participate in events commemorating the 75th anniversary of the National Park Service.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-first day of August, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6326
03 CFR Proclamation 6326 of August 22, 1991
Proclamation 6326 of August 22, 1991
03 CFR National Campus Crime and Security Awareness Week, 1991
By the President of the United States of America
A Proclamation
If our Nation's schools are to be marked by excellence, they must offer students and teachers an environment that is conducive to learning. Accordingly, AMERICA 2000, our strategy to reinvigorate the Nation's educational system, calls for every school in the country to be safe, disciplined, and free of drugs and violence.
Surveys indicate that as much as 80 percent of all crimes committed at our Nation's institutions of higher learning are perpetrated by students, against students. The vast majority of these crimes are related to alcohol or drugs. Regardless of its source or nature, however, campus crime not only inflicts costly material losses but also causes untold personal suffering. Moreover, campus crime disrupts the vital functions of colleges and universities, thereby depriving students of an optimal educational experience.
Stopping theft, vandalism, sexual assault and other crimes on campus will require the sustained cooperation of students, administrators, and staff, as well as campus security personnel and law enforcement officials. Every academic community in America must increase its awareness of campus crime and ways to prevent it.
Last year, the Congress passed the ''Student Right-to-Know and Campus Security Act,'' which requires colleges and universities to inform students and employees about campus crime statistics and campus security policies. By working together to achieve the goals set forth in this legislation, we will not only promote the safety of those who study and work at our Nation's institutions of higher learning but also provide our students with a valuable lesson in civic responsibility.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim the week beginning September 1, 1991, as National Campus Crime and Security Awareness Week. I encourage all Americans to observe this week with appropriate programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-second day of August, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6327
03 CFR Proclamation 6327 of August 23, 1991
Proclamation 6327 of August 23, 1991
03 CFR National Rehabilitation Week, 1991
By the President of the United States of America
A Proclamation
Thanks, in large part, to the variety of rehabilitative programs and services that are available in the United States, millions of Americans with disabilities are leading fuller, more independent, and productive lives. These men and women are utilizing their knowledge and skills in virtually every field of endeavor, and our entire Nation is richer for their achievements. Thus, it is fitting that we pause to recognize the many dedicated professionals and volunteers who help to promote the rehabilitation of persons with disabilities.
Rehabilitation is a collaborative process that involves health care providers, therapists, educators, employers, and many others. For example, through advances in technology, scientists and engineers are helping persons with disabilities to overcome the physical barriers that once prevented them from participating in the mainstream of American life.
Effective rehabilitation technology and techniques are also helping to change the attitudinal barriers that have, in the past, limited opportunities for persons with disabilities. Today these members of our society are refuting age-old myths and misconceptions, proving that a disability need not be an obstacle to success. Continuing advances in rehabilitation services and in related education and research -- coupled with implementation of the Americans with Disabilities Act of 1990 -- will further open the door to their social and economic advancement.
Of course, challenges remain in the effort to help more and more Americans with disabilities achieve their fullest potential. These challenges range from the development of a wider array of rehabilitation services to improved cooperation among human service agencies. Nevertheless, by working together, we can meet them.
In recognition of the courage and determination of persons with disabilities, and in honor of all those who assist in their rehabilitation, the Congress, by Senate Joint Resolution 72, has designated the week of September 15 through September 21, 1991, as ''National Rehabilitation Week'' and has authorized and requested the President to issue a proclamation in observance of this week.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the week of September 15 through September 21, 1991, as National Rehabilitation Week. I encourage all Americans to observe this week with appropriate programs and activities, including educational activities that will heighten public awareness of the rehabilitative services that are available in this country and the many ways in which these services benefit persons with disabilities.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-third day of August, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6328
03 CFR Proclamation 6328 of August 26, 1991
Proclamation 6328 of August 26, 1991
03 CFR Commodore John Barry Day, 1991
By the President of the United States of America
A Proclamation
During its War for Independence, our Nation faced a great and proven sea power. The young Continental Navy, which had been established by the Continental Congress in October 1775, was only a fraction of the size of the British fleet. Nevertheless, the small American naval force not only achieved several key victories during the War but also established a tradition of courageous service that continues to this day. On this occasion, we honor the memory of one of America's first and most distinguished naval leaders, Commodore John Barry.
After immigrating to the United States from Ireland, John Barry became a successful shipmaster in Philadelphia. He was also an enthusiastic supporter of American Independence, and when the Revolutionary War began, he readily volunteered for service. Thus, John Barry was commissioned as one of the first captains of the Continental Navy.
Captain Barry served bravely and with distinction throughout the course of the War. While commanding the brig LEXINGTON, he captured the British sloop EDWARD in April 1776. This victory marked the first capture in battle of a British vessel by a regularly commissioned American warship. Seven years later, Captain Barry participated in the last American naval victory of the War, leading the frigate ALLIANCE against H.M.S. SYBILLE in March 1783.
Captain Barry's record of service to our country is distinguished not only by its length but also by his extraordinary patriotism and daring. In late 1776, he led a raid by four small boats against British vessels on the Delaware River and seized a significant quantity of supplies that had been meant for the British Army. Serving as a volunteer artillery officer in December of that year, Captain Barry participated in General George Washington's celebrated campaign to cross the Delaware River, which led to victory at the Battle of Trenton.
Captain Barry continued to serve our country after the end of the Revolution, helping to make the American victory a meaningful and enduring one. Active in Pennsylvania politics, he became a strong supporter of the Constitution, which was ratified by the State Assembly on December 12, 1787. In June 1794, President George Washington appointed him as a commander of the new frigate U.S.S. UNITED STATES, one of six that were built as part of a permanent American naval armament. For the remaining years of his life, Commodore Barry helped to build and to lead the new United States Navy, commanding not only the U.S.S. UNITED STATES but also ''Old Ironsides,'' the U.S.S. CONSTITUTION.
Commodore John Barry died on September 13, 1803, but his outstanding legacy of service is carried on today by all those brave and selfless Americans who wear the uniform of the United States Navy.
The Congress, by Public Law 102-92, has designated September 13, 1991, as ''Commodore John Barry Day'' and has authorized and requested the President to issue a proclamation in observance of this day.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim September 13, 1991, as Commodore John Barry Day. I invite all Americans to observe this day with appropriate ceremonies and activities in honor of those individuals, past and present, who have served in the United States Navy.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-sixth day of August, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6329
03 CFR Proclamation 6329 of September 3, 1991
Proclamation 6329 of September 3, 1991
03 CFR Minority Enterprise Development Week, 1991
By the President of the United States of America
A Proclamation
America has demonstrated to the world that when individuals have the freedom to pursue their dreams and to put their talents and ideas to work, we all benefit. As more and more nations recognize the value of free enterprise and private initiative -- and reform their economies according to market-oriented principles -- the United States must act to strengthen its competitiveness.
If the United States is to remain a leader in the expanding global marketplace, we must redouble our efforts to produce high quality goods and services. We must also maximize the talent and potential of our people, our most important resource. Every American must have the knowledge and skills -- including the technical skills -- that are needed to enjoy full, productive lives in our rapidly changing world. That is one reason why we have launched AMERICA 2000, our national strategy to achieve excellence in education.
I am confident that this strategy will succeed because we Americans are a proud and determined people. Those qualities are exemplified by minority entrepreneurs, who have long been recognized for their determination to overcome obstacles and to create better lives for themselves and for their children. This week, we salute the more than 1 million minority business owners across the United States for helping to build a stronger America. These hardworking men and women are contributing to the economic development of their communities, and they are creating jobs and opportunities for their neighbors. For example, according to the U.S. Department of Commerce, minority businesses generate more than $78.5 billion annually in gross receipts. More than 250,000 of these businesses have paid employees, providing jobs for an estimated 845,000 people.
This week, as we celebrate the achievements of our Nation's minority entrepreneurs, we also reaffirm our commitment to promoting equal opportunity, high quality education, and effective job training for all Americans. In so doing, we will enhance our Nation's strength and productivity while creating more vibrant communities and improved standards of living for every citizen.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim the week of September 22 through September 28, 1991, as Minority Enterprise Development Week. I encourage the people of the United States to observe this week with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this third day of September, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's remarks at the Minority Business Development Week Awards ceremony, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1337). For his second annual report to the Congress on the state of small business, see p. 1523.
03 CFR Proc. 6330
03 CFR Proclamation 6330 of September 4, 1991
Proclamation 6330 of September 4, 1991
03 CFR Citizenship Day and Constitution Week, 1991
By the President of the United States of America
A Proclamation
After receiving word in London of our Constitution and its approval by the Congress of the Confederation, John Adams wrote that the document was, ''if not the greatest exertion of human understanding, the greatest single effort of national deliberation that the world has ever seen.'' When they adopted the first 10 Amendments to our Constitution, our Nation's Founders added to that great charter of American government a set of clear, concise, and express guarantees of the fundamental rights of individuals. Known collectively as our Bill of Rights, these 10 amendments have helped to define and to defend our liberties. They have also served as a model for the world. During this 200th anniversary of our Bill of Rights, we do well to reflect on the timeless principles that it enshrines and on our role in upholding them.
The Bill of Rights guarantees, among other basic liberties, freedom of religion and of assembly, as well as freedom of speech and of the press; it protects the right to keep and bear arms; it prohibits unreasonable searches and seizures; and it ensures that no person shall be deprived of life, liberty, or property without due process of law. It also defines basic rules of fairness in criminal procedure. Ratified in 1791, the Bill of Rights makes clear that our Constitution is a charter of limited government based on the principles of federalism. Together these documents express in law our Nation's commitment to the truths first affirmed in our Declaration of Independence: ''that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.''
Our observance of Citizenship Day and Constitution Week reminds us that we have not only many rights but also many responsibilities as citizens of this great Nation. With characteristic eloquence and sagacity, the celebrated American jurist Learned Hand once said: ''Liberty lies in the hearts of men and women. When it dies there, no constitution, no law, no court can save it.'' His words are a stirring reminder that our Constitution and Bill of Rights can be effective guarantees of freedom only as long as we understand and prize the principles that they enshrine. Accordingly, each of us has a responsibility to uphold the ideals of tolerance and justice; to teach our children the difference between liberty and license; and to share in the hard work of freedom -- at the ballot box, in the workplace, on the farm, in the military, or through our homes, schools, and places of worship. This is the essence of good citizenship.
The Congress, by joint resolution of February 29, 1952 (36 U.S.C. 153), designated September 17 as ''Citizenship Day.'' Also, by joint resolution of August 2, 1956 (36 U.S.C. 159), the Congress designated the week beginning September 17 and ending September 23 of each year as ''Constitution Week.''
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim September 17, 1991, as Citizenship Day and call on government officials to display the flag of the United States on all government buildings. I encourage Federal, State, and local officials, as well as leaders of civic, social, and educational organizations, to conduct ceremonies and programs to commemorate the occasion.
Furthermore, I proclaim the week beginning September 17 and ending September 23, 1991, as Constitution Week, and I encourage all Americans to observe that week with appropriate ceremonies and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this fourth day of September, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6331
03 CFR Proclamation 6331 of September 4, 1991
Proclamation 6331 of September 4, 1991
03 CFR Gold Star Mother's Day, 1991
By the President of the United States of America
A Proclamation
We Americans can never forget the brave and selfless individuals who have given their lives for our country. Indeed, this year alone has given us several poignant reminders of the debt that we owe to each of them. While the 200th anniversary of our Bill of Rights has renewed our appreciation for the blessings of liberty, the war in the Persian Gulf has deepened our gratitude toward those who have died to win them. On this occasion, however, we honor the mothers of our Nation's fallen. Known as Gold Star Mothers, these women have shared in the sacrifices of their children, and they deserve a commensurate portion of our respect and thanks.
Any parent who has ever suffered the loss of a son or daughter knows that when that child dies, a part of oneself dies too. Accordingly, our Nation's Gold Star Mothers understand the value of liberty because they have borne part of the price that has been paid to defend it. Today many Gold Star Mothers are demonstrating their enduring love of freedom through generous voluntary efforts in their communities -- including special efforts in behalf of veterans and active duty service members.
Although we set aside this day in their honor, let us pay tribute to our Nation's Gold Star Mothers throughout the year by assuring them -- through word and deed -- that their children's sacrifices are remembered and appreciated. Let us continue working to promote respect for human rights and the rule of law around the world, and let us pray for lasting peace among nations, so that no more Americans might die in battle, and so that no more mothers might face war's bereavement.
The Congress, by Senate Joint Resolution 115 (June 23, 1936), designated the last Sunday in September as ''Gold Star Mother's Day'' and authorized and requested the President to issue a proclamation in observance of this day.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim September 29, 1991, as Gold Star Mother's Day. I call on all government officials to display the United States flag on government buildings on this day. I also urge the American people to display the flag and to hold appropriate meetings in their homes, places of worship, or other suitable places, as a public expression of the sympathy and the respect that our Nation holds for its Gold Star Mothers.
IN WITNESS WHEREOF, I have hereunto set my hand this 4 day of September, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6332
03 CFR Proclamation 6332 of September 9, 1991
Proclamation 6332 of September 9, 1991
03 CFR National Historically Black Colleges Week, 1991 and 1992
By the President of the United States of America
A Proclamation
For more than 100 years, our Nation's historically Black colleges and universities have provided rewarding educational opportunities for millions of Black Americans. These institutions have opened the doors of achievement to generations of students who otherwise might not have been able to enjoy the benefits of a higher education. Our entire Nation is richer as a result -- graduates of historically Black colleges and universities have made substantial contributions to our country in virtually every field of endeavor.
The U.S. Department of Education reports that historically Black colleges and universities have provided undergraduate training for three-fourths of all Black Americans holding a doctorate degree, three-fourths of all Black officers in the Armed Forces, and four-fifths of all Black Americans who serve as Federal judges.
Historically Black colleges and universities also lead in awarding baccalaureate degrees to minority men and women in the life sciences, the physical sciences, mathematics, and engineering. Because our National Education Goals include making America's elementary and secondary school students first in the world in math and science, the role of these institutions in promoting high standards for entering students, as well, is more significant than ever.
Committed to excellence as well as to opportunity, our Nation's historically Black colleges and universities embody the kind of proud, determined spirit that is essential to achieving our National Education Goals. Recognizing their potential for leadership as we implement AMERICA 2000, our strategy to bring about a renaissance in American education, I am calling on the office that is responsible for the White House Initiative on Historically Black Colleges and Universities to play an integral part in assisting this Administration in its education efforts. I have also asked the Secretary of Education to continue to encourage and to assist historically Black colleges and universities in their vital mission.
In recognition of their exemplary goals and achievements, the Congress, by Senate Joint Resolution 40, has designated the week beginning September 8, 1991, and the week beginning September 6, 1992, as ''National Historically Black Colleges Week'' and authorized and requested the President to issue a proclamation in observance of these occasions.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the weeks beginning September 8, 1991, and September 6, 1992, as National Historically Black Colleges Week. I invite all Americans to observe those weeks with appropriate programs, ceremonies, and activities, thereby demonstrating our appreciation of and support for these important educational institutions.
IN WITNESS WHEREOF, I have hereunto set my hand this 9 day of Sept., in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6333
03 CFR Proclamation 6333 of September 10, 1991
Proclamation 6333 of September 10, 1991
03 CFR General Pulaski Memorial Day, 1991
By the President of the United States of America
A Proclamation
When our ancestors boldly declared America's Independence, the hopes of countless people around the world went with them. Among those who understood the significance of America's struggle for liberty and self-government was the daring Polish patriot, Casimir Pulaski.
Before he journeyed to the United States and volunteered to join the Continental Army, Casimir Pulaski had fought to free his native Poland from tyranny and foreign domination. His devotion to the cause of liberty cost him dearly -- forced into exile, the young Count had to leave behind both his personal fortune and his beloved homeland. Yet Count Pulaski never relinquished his belief in the universal cause of freedom. He reportedly wrote to General George Washington: ''I came here, where Freedom is being defended, to serve it, and to live or die for it.'' With those words, Casimir Pulaski expressed his determination to stand in solidarity with the American colonists.
An experienced and highly skilled tactician, Count Pulaski was named a General in the Continental Army and was eventually given command of his own cavalry unit. From the time he volunteered for service until his last day in command of the Pulaski Legion, this lifelong freedom fighter participated in a number of important campaigns -- including Brandywine, Germantown, and Trenton. Leading a bold charge during the siege of Savannah on October 9, 1779, he was mortally wounded. He died two days later and was buried at sea.
Were he alive today, Pulaski would find his dreams fulfilled, the cause of freedom won. The ideals of liberty and representative government that were planted on these shores more than 200 years ago have taken root around the world. Under a new, democratic government, the Polish people have begun working to break the cycle of impoverishment and decline imposed by nearly half a century of totalitarian rule. The United States wholeheartedly supports their courageous and determined efforts to establish a market-oriented economy and stable democratic rule.
On this occasion, as we remember General Pulaski's extraordinary contributions to our country, we also pay tribute to our friends in Poland and to the many Americans of Polish descent who have labored and sacrificed to uphold the cause of freedom. Their faithfulness and resolve, like that of General Pulaski, offers a worthy example to us all.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim October 11, 1991, as General Pulaski Memorial Day. I direct the appropriate government officials to display the flag of the United States on all government buildings on that day, and I encourage the people of the United States to commemorate this occasion as appropriate throughout the land.
IN WITNESS WHEREOF, I have hereunto set my hand this tenth day of September, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6334
03 CFR Proclamation 6334 of September 12, 1991
Proclamation 6334 of September 12, 1991
03 CFR National POW/MIA Recognition Day, 1991
By the President of the United States of America
A Proclamation
Through riveting and often heartrending personal testimony, former American prisoners of war have helped us to appreciate more fully the courage and the sacrifices of those United States military personnel who have been captured by the enemy during periods of armed conflict. During World War II, the Korean War, the Vietnam War, and other conflicts, many American prisoners were subjected to brutal treatment and torture by their captors in violation of fundamental standards of morality and international law. Many did not survive. Today, as a measure of our gratitude toward those who have endured so much for our sake and the sake of freedom-loving peoples everywhere, we remember in a special way Americans who remain missing and unaccounted for.
In honor of these Americans, on September 20, 1991, the National League of Families POW/MIA flag will be flown over the White House, the U.S. Departments of Defense, State, and Veterans Affairs, the Selective Service System headquarters, and the Vietnam Veterans Memorial. This black and white emblem symbolizes our continued commitment to secure the release of any Americans who may still be held against their will, to obtain the fullest possible accounting for the missing, and to ensure the repatriation of all recoverable American remains.
Our Nation's POWs/MIAs accepted great risks to help defend the lives and liberty of others, and they deserve our faithfulness and resolve in return. We have an obligation to them and to their families, and we will honor it. Indeed, all Americans recognize the lingering anguish of those who await word of their loved ones' fates, and we are determined to help them gain the peace and solace that real answers will bring.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim September 20, 1991, as National POW/MIA Recognition Day. I urge all Americans to join in honoring former American POWs, as well as those U.S. servicemen and civilians who are still missing in action. I also encourage the American people to express their solemn appreciation for the courage and the sacrifices of the families of POWs/MIAs. Finally, I call on State and local officials and private organizations to observe this day with appropriate ceremonies and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twelfth day of September, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6335
03 CFR Proclamation 6335 of September 12, 1991
Proclamation 6335 of September 12, 1991
03 CFR National D.A.R.E. Day, 1991
By the President of the United States of America
A Proclamation
The most important priority of our National Drug Control Strategy is to reduce drug use by our Nation's citizens, especially our young people. A key aim of AMERICA 2000, our national strategy for achieving excellence in American education, is to ensure that every school in the United States is free of drugs and violence. Realizing these goals will require the creative energy and the commitment of many different people in every community. Parents, educators, law enforcement officials, and students, as well as business and civic leaders, must work together to rid our Nation of drugs and to build schools and neighborhoods where individuals can learn.
Drug Abuse Resistance Education, or Project D.A.R.E., provides an outstanding example of how such cooperation works. Taught by veteran law enforcement personnel, the D.A.R.E. program is designed to prevent the use of drugs and alcohol among students. It teaches young people to resist pressure to use drugs and encourages wholesome alternatives to drug use. Initiated in 1983, D.A.R.E. is one of many constructive, school-community partnerships that have been implemented in all 50 States and in several foreign countries.
In recognition of D.A.R.E.'s contribution in forging strong bonds between schools and communities -- bonds that are essential to achieving our National Education Goals -- the Congress, by Senate Joint Resolution 121, has designated September 12, 1991, as ''National D.A.R.E. Day.''
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim September 12, 1991, as National D.A.R.E. Day. I encourage all Americans to observe this day with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this 12 day of September, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
03 CFR Proc. 6336
03 CFR Proclamation 6336 of September 13, 1991
Proclamation 6336 of September 13, 1991
03 CFR Energy Awareness Month, 1991
By the President of the United States of America
A Proclamation
Meeting our Nation's future energy needs is a task of immense proportions -- and utmost importance. To some American motorists, this challenge might be symbolized by long lines for gasoline and high prices at the pump. To others, it might be symbolized by lowering the thermostat during winter months. However, when it comes to building a secure energy future for the United States, there is more at stake than meets the eye. Safe, reliable, and affordable sources of energy are vital not only to our personal mobility and comfort but also to our Nation's productivity and security. America's utility companies and other energy providers supply the light, heat, and power that are needed to operate our factories and farms, our schools and defense installations, and other places of work.
Continuing instability and conflict in some regions of the world underscore the need to use energy efficiently; to reduce our dependence on insecure sources of energy; and to develop more energy resources. Of course, we must skillfully balance efforts in these areas with our determination to maintain a growing economy. We must also balance them with our commitment to a cleaner, healthier environment.
Our comprehensive National Energy Strategy calls for the wise and effective development of all of our Nation's energy resources, including coal, natural gas, and nuclear energy, as well as hydroelectric power and other forms of renewable energy. It also calls for the development of new technology for oil and gas exploration; increased use of alternative fuels; and aggressive conservation efforts.
This month, the United States Department of Energy will be working to promote public awareness of our Nation's energy needs and the energy options that are available to us. With strong leadership at all levels of government -- and with the sustained cooperation of business, industry, energy providers, and concerned consumers -- we can implement the sound energy policies and practices that are essential to America's well-being.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim October 1991 as Energy Awareness Month. I urge all Americans to observe this month with appropriate educational programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this thirteenth day of September, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6337
03 CFR Proclamation 6337 of September 20, 1991
Proclamation 6337 of September 20, 1991
03 CFR National Hispanic Heritage Month, 1991
By the President of the United States of America
A Proclamation
When we speak of our Hispanic heritage, we speak of more than one particular set of customs and traditions. Indeed, the Hispanic American heritage can be traced back to many different lands -- to places as far-flung as Cuba, Mexico, Spain, and Peru. Nevertheless, Americans of Spanish and Latin American descent share a great sense of pride in the deep cultural and historical ties that exist between them.
Rich and varied, the Hispanic American heritage is as old as the story of America itself. Daring Spanish navigators who explored the New World nearly half a millennium ago were the first Europeans to establish settlements in what is now United States territory. In fact, by 1565 -- almost half a century before British colonists landed at Jamestown -- the Spanish had established a permanent settlement at Saint Augustine, Florida. Traders and missionaries followed in the wake of explorers such as Coronado, Ponce de Leo1n, and A1lvar Nu1n6ez Cabeza de Vaca, helping to open the American Southwest to further settlement and development.
Making use of the land's resources through farming, ranching, and mining, Spanish peoples shaped much of the Western frontier. Thriving communities took root around many Spanish missions, and today cities such as San Diego, Los Angeles, San Antonio, and Santa Fe continue to bear evidence of their celebrated past. However, over the years, Hispanic Americans have made vital contributions in communities across the country and in virtually every field of endeavor.
Today Hispanic Americans are our Nation's fastest growing minority. The number of Hispanics in this country grew by 53 percent during the past decade, up from 14.6 million to 22.4 million. This means that Hispanics now constitute about 9 percent of our population.
Many Hispanic Americans have come to these shores as immigrants, seeking better lives for themselves and their children. The achievements of these men and women indicate that they have not taken liberty for granted. Today Hispanic Americans are reaping the rewards of hard work: more and more are entering the political, social, and economic mainstream of American life.
Hispanic Americans are eager to enjoy the blessings of freedom and economic opportunity because many have known the bitter reality of life without them. As a Nation, we must keep faith with them and continue working to ensure equal opportunity for all of our citizens. With that in mind, last September I signed the Executive Order on Educational Excellence for Hispanic Americans. This order established a special Presidential Advisory Commission that will help to identify ways that the Federal Government can improve educational opportunities for Hispanic Americans.
The Congress, by Joint Resolution approved September 17, 1968, as amended by Public Law 100-402, has authorized and requested the President to issue annually a proclamation designating the month beginning September 15 and ending October 15 as ''National Hispanic Heritage Month.''
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the month beginning September 15, 1991, and ending October 15, 1991, as National Hispanic Heritage Month. I call upon the people of the United States to observe this month with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this 20 day of September, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's remarks to the Hispanic Chamber of Commerce, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1319).
03 CFR Proc. 6338
03 CFR Proclamation 6338 of September 23, 1991
Proclamation 6338 of September 23, 1991
03 CFR Fire Prevention Week, 1991
By the President of the United States of America
A Proclamation
More than 5,000 people in the United States die each year as a result of fire -- most of them in their homes. Tens of thousands more suffer painful and often disfiguring fire-related injuries. If we are to prevent such tragic losses in the future, all Americans must learn how to identify and to avoid fire hazards. Moreover, all of us -- especially children and older adults -- must know what to do in case fire strikes.
Fire prevention begins with recognizing and changing risky behaviors such as careless smoking; fire prevention is as simple as keeping matches and lighters out of reach of children. These and other basic measures -- such as safe storage of combustible materials -- can save lives. Americans can also reduce their risk of dying in a home fire by installing and properly maintaining an adequate number of smoke detectors.
While smoke detectors can give an early warning of fire, planning ahead for emergencies enables individuals and families to make good use of that warning. Hence, the National Fire Protection Association (NFPA) has selected ''Fire Won't Wait -- Plan Your Escape'' as the theme of Fire Prevention Week, 1991. The NFPA is working to remind all Americans that there is no time for planning once a fire starts, so advanced preparation is vital. In the same spirit, the United States Fire Administration continues to coordinate other public education campaigns that are designed to promote fire safety. These campaigns complement NFPA efforts.
During this annual observance of Fire Prevention Week, I urge all Americans to develop and practice a home fire escape plan. Ideally, such a plan should include two ways out of every room, as well as a designated meeting place outside for all members of the family. Parents should teach their children the importance of crawling close to the floor to avoid smoke and noxious fumes, as well as the ''stop, drop, and roll'' technique for extinguishing flames on one's clothing.
This week, as we dedicate ourselves to fire prevention, let us also recognize all those individuals who are working toward the same goal. These include the members of the Congressional Fire Services Institute; the International Association of Fire Fighters; the International Association of Black Professional Fire Fighters; the National Volunteer Fire Council; the International Society of Fire Service Instructors; the Fire Marshals Association of North America; the National Association of State Fire Marshals; and all other public and private organizations that conduct fire safety education programs.
On this occasion, let us offer special thanks to the Nation's volunteer and professional fire fighters, who frequently put themselves in harm's way to protect the lives and the property of their fellow Americans. And, of course, let us remember with grateful prayers those fire fighters who have made the ultimate sacrifice in the line of duty.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim the week beginning October 6, 1991, as Fire Prevention Week. I urge all Americans to plan and to participate in fire prevention activities -- this week and throughout the year.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-third day of September, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6339
03 CFR Proclamation 6339 of September 23, 1991
Proclamation 6339 of September 23, 1991
03 CFR National School Lunch Week, 1991
By the President of the United States of America
A Proclamation
One of the first aims of AMERICA 2000, our comprehensive strategy for achieving excellence in education, is ensuring that every child in the Nation starts school ready to learn. Because a hungry or undernourished child is less likely to be an eager and attentive student, the National School Lunch Program plays an important role in helping us to meet this goal.
Thanks to the National School Lunch Program, approximately 23 million students in 91,000 schools across the country are able to eat a wholesome, well-balanced lunch each day. Meals provided through the Program, which has been expanded to include the School Breakfast Program, help these children to develop the energy, stamina, and good health that they need to study and to learn.
The National School Lunch Program also continues to promote healthy eating habits among the youngsters who participate. Indeed, much has changed since their parents sat at the cafeteria table. As conventional wisdom regarding diet and nutrition has changed, so have school lunches. Students now have a much wider array of healthful and nutritious options than ever before.
The success of the National School Lunch Program has been made possible by many different people, including Federal, State, and local officials, as well as parents, educators, food service specialists, and students themselves. This week, we acknowledge the many dedicated professionals and volunteers who have contributed to the National School Lunch Program since its inception in 1946.
By joint resolution approved October 9, 1962 (Public Law 87-780), the Congress designated the week beginning on the second Sunday of October in each year as ''National School Lunch Week'' and requested the President to issue a proclamation in observance of that week.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the week beginning October 13, 1991, as National School Lunch Week. I call upon all Americans to recognize those dedicated and hardworking individuals who contribute to the success of the School Lunch Program.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-third day of September, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6340
03 CFR Proclamation 6340 of September 27, 1991
Proclamation 6340 of September 27, 1991
03 CFR National Domestic Violence Awareness Month, 1991
By the President of the United States of America
A Proclamation
When we Americans celebrate Thanksgiving later this fall, most of us will be able to count home and family among our greatest blessings. Tragically, however, far too many of our fellow citizens have been denied the joys of a happy home as a result of domestic violence.
Domestic violence not only inflicts great physical pain and suffering but also undermines the very fabric of society. A tragic betrayal of personal trust and responsibility, it strikes at the fundamental bonds of family life -- bonds that, in turn, hold together any truly stable community and nation. Thus, domestic violence cannot be dismissed as a simply ''private'' matter. Its impact warrants the attention and concern of all Americans.
Domestic violence is not limited to any one group; it affects individuals and families from every race and every walk of life. Neither is it just a series of hostile exchanges or the kind of simple quarrels that can occur from time to time in every family. On the contrary, domestic violence is a serious and destructive pattern of behavior that can lead to injury and death.
The Department of Health and Human Services reports that domestic violence is already the largest cause of injury to women in the United States, and that its incidence is rising. Other victims include the elderly, as well as abused and neglected children. Youngsters who suffer or simply witness domestic violence may carry emotional scars for a lifetime. Those scars can lead to vicious cycles of abuse and despair.
Fortunately, we have made progress in our campaign to end the tragedy of domestic violence. During the past decade, we have taken great strides in coordinating Federal support with local and private-sector efforts to expand prevention services -- particularly in areas that have been traditionally underserved. We have also promoted greater coordination of services for abused spouses and their children, thereby helping to meet long-term needs -- such as substance abuse treatment, child care, and counseling -- as well as immediate needs for shelter. Of course, because domestic violence poses such a grave threat to individuals and families, we still have more work to do.
Every autumn since 1985, we have set aside National Domestic Violence Awareness Month as a time to reflect on this problem and on ways that we can assist its victims. This year, let us recognize the many dedicated volunteers and professionals who offer shelter and support to the victims of domestic violence. Let us also strive to learn more about domestic violence and how each of us can help bring an end to it.
The Congress, by Senate Joint Resolution 73, has designated October 1991 as ''National Domestic Violence Awareness Month'' and has authorized and requested the President to issue a proclamation in observance of this month.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim October 1991 as National Domestic Violence Awareness Month. I urge all Americans to observe this month with appropriate programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-seventh day of September, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6341
03 CFR Proclamation 6341 of September 27, 1991
Proclamation 6341 of September 27, 1991
03 CFR National Forest Products Week, 1991
By the President of the United States of America
A Proclamation
Ever since this country's earliest inhabitants hunted game and gathered food in their deep shade, America's forests have provided man with vital sustenance, as well as wood for fuel and shelter. During National Forest Products Week, we reflect on the continuing importance of our Nation's forests and remind ourselves of the need to manage them with care.
From our celebrated national forests to our prized State parks, from our vast industrial timberlands to the small, privately owned woodlots of rural America, our country's forests provide a wealth of benefits. Various species of plants and animals thrive on these rich tracts of land. Individuals and families find in them a wonderful setting for camping and other recreational activities. Yet our forests provide more than habitat for wildlife and beauty for the eye. Wood and wood products are used to make a multitude of products, from the floors beneath our feet to the roofs over our heads. All of our paper products come from wood -- everything from the newspapers that help us stay informed to the stationery that helps us stay in touch with family, friends, and co-workers.
While today's antiques remind us that furniture made from wood can last for generations, scientists are demonstrating how wood products and derivatives can shape the look of tomorrow.
The development and use of forest products not only affect our personal comfort and well-being on a daily basis but also contribute substantially to our Nation's economy. According to the Department of the Interior, the forest industry employs nearly 1.6 million men and women, who together earn almost $43.6 billion in annual wages.
Given their contributions to our economy and to the livelihood of countless individuals and families, we must remember that our Nation's magnificent forests are, in many ways, precious and fragile. Trees can be destroyed needlessly by disease, by forest fires and other natural disasters, and by human carelessness. If we are to continue to meet a variety of consumer needs, our forests must be protected and renewed.
During the past 100 years, we have moved toward more efficient and responsible management of our forest resources. Indeed, through various methods (such as multiple-use and sustained yield management), we are helping nature to replenish our forests. State and local governments, private and voluntary organizations, and concerned individuals are promoting and participating in efforts to conserve and recycle paper products. Millions of people are also taking part in the America the Beautiful Initiative, helping to plant and maintain nearly 1 billion trees per year across the country, in both urban and rural areas. This month, let us acknowledge the importance of these efforts and renew our commitment to them.
In recognition of the value of our forests, the Congress, by Public Law 86-753 (36 U.S.C. 163), designated the week beginning on the third Sunday in October of each year as ''National Forest Products Week'' and authorized and requested the President to issue a proclamation in observance of this week.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the week beginning October 20, 1991, as National Forest Products Week and encourage all Americans to observe that week with appropriate ceremonies and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-seventh day of September, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6342
03 CFR Proclamation 6342 of September 27, 1991
Proclamation 6342 of September 27, 1991
03 CFR Leif Erikson Day, 1991
By the President of the United States of America
A Proclamation
Each October, Americans of all ages join in commemorating the voyages of Leif Erikson, the daring son of Iceland and grandson of Norway who explored the North American coast nearly a millennium ago, and, in so doing, charted a course for generations of Europeans to follow. However, on this occasion, we celebrate more than the remarkable journeys of Leif Erikson and his fellow Norse adventurers. We also celebrate the enduring ties of friendship that exist between the people of the United States and our friends in northern Europe.
Leif Erikson was part of a long line of Norse explorers who braved the vast waters of the Atlantic for the sake of their people's future. His father, Eric the Red, had led the first group of Europeans to colonize Greenland. According to the Icelandic Saga of Eric, young ''Leif the Lucky'' returned to Norway in the year 1000, and there became a convert to Christianity. When he was later commissioned by King Olaf I to carry the faith back to Greenland, the young navigator once again took to the high seas. Thus, over the course of several generations, Leif Erikson and his fellow Norsemen ventured from their ancestral homeland to places such as the British Isles, the Faroe Islands, Iceland, Greenland, and eventually North America.
Although the first Norse settlements on this continent did not become permanent, the voyages of Leif Erikson and other Norse explorers had a lasting impact on the development of the Western world. These pioneers presaged a later era of discovery that has included other great navigators such as Christopher Columbus, Magellan, and Sir Francis Drake, as well as latter-day explorers like Roald Amundsen, who was the first man to reach the South Pole. Of course, we know that the spirit of daring and discovery continues to thrive today. The fascinating work of our astronauts and engineers, the painstaking research of our physicians, archeologists, and other scientists -- all reflect the timeless appeal of exploration and learning.
Among those who have kept alive the bold, industrious spirit of Leif Erikson are Americans who trace their roots to the Nordic countries. Immigrants from Denmark, Finland, Iceland, Norway, and Sweden have greatly enriched this country, not only through their unique customs and traditions, but also through their commitment to educational achievement and good government. Today, as we celebrate our Nordic American heritage with a series of special events -- including a gala reenactment of the first Norse voyage to these shores -- we also reaffirm our mutually rewarding ties with the countries of northern Europe.
In honor of Leif Erikson and our Nordic American heritage, the Congress, by joint resolution approved on September 2, 1964 (78 Stat. 849, 36 U.S.C. 169c), has authorized and requested the President to proclaim October 9 of each year as ''Leif Erikson Day.''
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim October 9, 1991, as Leif Erikson Day, and I direct the appropriate government officials to display the flag of the United States on all government buildings on that day. I also encourage the people of the United States to observe this occasion by learning more about our rich Nordic American heritage and the early history of our continent.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-seventh day of September, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6343
03 CFR Proclamation 6343 of September 28, 1991
Proclamation 6343 of September 28, 1991
03 CFR To Implement an Accelerated Schedule of Duty Elimination Under the United States-Canada Free-Trade Agreement, To Make Technical and Conforming Changes to the Harmonized Tariff Schedule of the United States, and for Other Purposes
By the President of the United States of America
A Proclamation
1. On January 2, 1988, the President entered into the United States-Canada Free-Trade Agreement (the Agreement). The Agreement and certain letters exchanged between the Governments of Canada and the United States were approved by the Congress in section 101(a) of the United States-Canada Free-Trade Agreement Implementation Act of 1988 (the Implementation Act) (Public Law 100-449). The Agreement entered into force on January 1, 1989.
2. Section 201(b) of the Implementation Act grants the President, subject to the consultation and lay-over requirements of section 103(a) of the Implementation Act, the authority to proclaim such modifications as the United States and Canada may agree to regarding the staging of any duty treatment set forth in Annexes 401.2 and 401.7 to the Agreement as the President determines to be necessary or appropriate to maintain the general level of reciprocal and mutually advantageous concessions with respect to Canada provided for by the Agreement.
3. Consistent with Article 401(5) of the Agreement, the President, through his duly empowered representative, on August 16, 1991, entered into an agreement with the Government of Canada providing an accelerated schedule of duty elimination for specific goods of Annex 401.2 to the Agreement. The consultation and lay-over requirements of section 103(a) of the Implementation Act with respect to such schedule have been complied with.
4. Also consistent with Article 401(5) of the Agreement, the President, through his duly empowered representative, on May 18, 1990, entered into an agreement with the Government of Canada providing an accelerated schedule of duty elimination for specific goods of Annexes 401.2 and 401.7. Pursuant to the authority granted in section 201(b) of the Implementation Act, the President, in Proclamation No. 6142 of May 25, 1990, implemented an accelerated schedule of duty elimination under the Agreement for those goods originating in the territory of Canada. However, certain goods could not be included in that agreement and accelerated schedule because of incomplete information regarding their tariff classification. Agreement as to acceleration of duty elimination for these goods was reached in an exchange of letters between the Governments of the United States and Canada. The consultation and lay-over requirements of section 103(a) of the Implementation Act with respect to such goods have been complied with.
5. Pursuant to section 201(b) of the Implementation Act, I have determined that the modifications hereinafter proclaimed to existing duties on goods originating in the territory of Canada are necessary or appropriate to maintain the general level of reciprocal and mutually advantageous concessions with respect to Canada provided for by the Agreement and to carry out the agreements with Canada providing an accelerated schedule of duty elimination for specific goods of Annex 401.2 to the Agreement.
6. Section 202(d)(1) of the Implementation Act authorizes the President to proclaim, as a part of the Harmonized System, implemented by the United States in the Harmonized Tariff Schedule of the United States (HTS), the rules of origin set forth in Annex 301.2 to the Agreement. Section 202(d)(2) of the Implementation Act authorizes the President to proclaim, subject to the consultation and lay-over requirements of section 103 of the Implementation Act, such modifications to the rules as may from time to time be agreed to by the United States and Canada. I have decided, pursuant to an agreement entered into on August 16, 1991, between the United States and Canada, that certain modifications in the rules of origin for particular goods of chapter 15 of the HTS should be proclaimed as a part of the HTS. The consultation and lay-over requirements of section 103 of the Implementation Act with respect to such modifications have been complied with.
7. Section 201(a) of the Implementation Act authorizes the President to proclaim such modifications to or continuance of existing duties, such continuance of existing duty-free or excise treatment, or such additional duties as the President determines to be necessary or appropriate to carry out Article 401 of the Agreement and the schedule of duty reductions with respect to goods originating in the territory of Canada set forth in Annexes 401.2 and 401.7 to the Agreement.
8. Certain provisions of the Customs and Trade Act of 1990 (the 1990 Act) (Public Law 101-382) and the Omnibus Budget Reconciliation Act of 1990 (the Budget Act) (Public Law 101-508), changed the tariff treatment of brooms and brushes of broom corn, woven fabrics and gauze of wool or of fine animal hair, ethyl alcohol, and ethyl tertiary-butyl ether. As a result of these changes, such goods originating in the territory of Canada became subject to rates of duty that are higher than the applicable duty rates previously proclaimed by the President pursuant to section 201 of the Implementation Act. In addition, previously enacted temporary duty suspensions for certain articles expired at the close of December 31, 1990. Consequently, such goods, if originating in the territory of Canada, became dutiable as of January 1, 1991, contrary to the terms of Article 401(8) of, and Annex 401.2 to, the Agreement. Accordingly, pursuant to section 201(a) of the Implementation Act, I have determined that it is necessary or appropriate to modify the HTS to ensure that the affected goods originating in the territory of Canada are afforded the tariff treatment contained in Annex 401.2 to the Agreement.
9. Title III of the 1990 Act amended the HTS to modify the tariff treatment afforded to various goods imported into the customs territory of the United States. Title II of the 1990 Act amended the Caribbean Basin Economic Recovery Act (CBERA) (19 U.S.C. 2701 et seq.) to repeal the termination on duty-free treatment under CBERA and to provide duty-free treatment for certain articles grown, produced, or manufactured in Puerto Rico. Technical corrections and conforming amendments to the HTS were set forth in sections 10011 and 11502(g) of the Budget Act.
10. In order to implement the tariff treatment provided for in CBERA, the 1990 Act, and the Budget Act, it is necessary to embody in the HTS the substance of the provisions of these acts. In addition, in order to clarify the preferential tariff treatment accorded under the CBERA, it is necessary to modify provisions of the general notes to the HTS to conform them to CBERA as amended by the 1990 Act.
11. Section 242 of the Compact of Free Association (the Compact) entered into by the Government of the United States and the Governments of the Marshall Islands and of the Federated States of Micronesia (the freely associated states), as given effect by section 401 of the Compact of Free Association Act of 1985 (the Association Act) (Public Law 99-239), requires the President to proclaim that articles imported from the freely associated states shall, under specified conditions, receive duty-free treatment subject to the limitations imposed under sections 503(b) and 504(c) of the Trade Act of 1974 (the 1974 Act) (19 U.S.C. 2463(b), 2464(c)).
12. Section 243 of the Compact, as given effect by section 401(b) of the Association Act, provides that certain articles imported from the freely associated states are to be excluded from the duty-free treatment proclaimed by the President and are to receive most-favored-nation (MFN) tariff treatment. Section 401(a) of the Association Act provides that only canned tuna provided for in item 112.30 of the Tariff Schedules of the United States (TSUS) that is imported from the freely associated states during any calendar year in an aggregate quantity not to exceed 10 percent of the U.S. consumption of canned tuna during the immediately preceding calendar year, as reported by the National Marine Fisheries Service, may be entered free of duty. In addition, section 401(a) of the Association Act further provides that canned tuna imports from the freely associated states entering free of duty shall be counted against the aggregate quantity of canned tuna that is dutiable under rate column numbered 1 for TSUS item 112.30 for that calendar year. The effect of this provision is that the tariff-rate quota of TSUS item 112.30 would have been available to imported canned tuna during any calendar year only to the extent that the quantity of canned tuna from the freely associated states that entered free of duty during the calendar year pursuant to section 401(a) of the Association Act was less than the aggregate quantity of canned tuna, if any, dutiable under TSUS item 112.30 for that calendar year.
13. The foregoing exclusions and restrictions are set forth in terms of the TSUS. The United States converted from the TSUS to the HTS effective January 1, 1989. Proclamation No. 6030 of September 28, 1989, incorporated into the HTS the exclusions and restrictions set out in section 401 of the Association Act, but did not clarify the manner in which canned tuna from the freely associated states shall be accorded limited duty-free treatment as set forth in section 401 of the Association Act. Therefore, modifications to general note 3(c)(viii) to the HTS and to chapter 16 of the HTS are appropriate in order to clarify the manner in which the provisions of section 401 of the Association Act relating to canned tuna shall be administered.
14. Pursuant to section 4 of the United States-Israel Free Trade Area Implementation Act of 1985 (the Israel Act) (19 U.S.C. 2112 note), the President proclaimed, in Proclamation No. 5365 of August 30, 1985, changes in tariff treatment which the President determined were required or appropriate to carry out the schedule of duty reductions for products of Israel set forth in Annex 1 to the Agreement on the Establishment of a Free Trade Area between the Government of the United States of America and the Government of Israel (the Israel FTA), entered into on April 22, 1985. Subsequently, in Proclamation No. 5646 of May 4, 1987, the President modified the tariff schedules to eliminate duty-free treatment for articles eligible for entry under certain provisions covering articles exported from the United States and returned after having been advanced or improved abroad. I have determined, pursuant to section 4 of the Israel Act, that further modifications are required or appropriate to carry out the schedule of duty reductions with respect to products of Israel set forth in Annex 1 to the Israel FTA.
15. On October 3, 1990, pursuant to actions taken by their parliaments, the Federal Republic of Germany and the German Democratic Republic became a single country, following the signing of a treaty with the Governments of the United States, the Union of Soviet Socialist Republics, the United Kingdom of Great Britain and Northern Ireland, and France. Accordingly, in order to ensure that MFN tariff treatment is afforded to all goods the product of the Federal Republic of Germany, I have determined that it is appropriate to modify general note 3(b) to the HTS, enumerating those countries whose products are dutied at the rates set forth in the Rates of Duty Column 2 of the HTS.
16. Section 604 of the 1974 Act, as amended (19 U.S.C. 2483), requires the President, from time to time, as appropriate, to embody in the HTS the substance of the provisions of that Act, of other acts affecting import treatment, and actions thereunder, including removal, modification, continuance, or imposition of any import restriction.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, acting under the authority vested in me by the Constitution and laws of the United States, including but not limited to section 604 of the 1974 Act, section 213 of CBERA, section 4 of the Israel Act, section 401 of the Association Act, sections 201 and 202 of the Implementation Act, and titles II and III of the 1990 Act, do proclaim that:
(1) In order to provide for an accelerated schedule of duty elimination for specific goods of Annex 401.2 to the United States-Canada Free-Trade Agreement and to modify the rules of origin, the tariff treatment provided for in the HTS for certain goods originating in the territory of Canada and general note 3 to the HTS are modified as provided in Annex I(a), (b), (c), (d), (e), and (f) to this proclamation.
(2) In order to modify certain rates of duty and to provide for staged reductions for specified goods originating in the territory of Canada to conform such duty rates to the schedule of duty reductions set forth in Annex 401.2 to the Agreement, the HTS is further modified as set forth in Annex I(g), (h), (i), and (j) to this proclamation.
(3) In order to make technical and conforming changes in various provisions of the HTS, and to implement the tariff treatment provided for in CBERA and the 1990 Act, including the tariff treatment of certain articles grown, produced, or manufactured in Puerto Rico, the HTS is modified as set forth in Annex II to this proclamation.
(4) In order to make conforming changes in the tariff treatment of products of the freely associated states following changes in section 503(b) of the 1974 Act and to clarify the tariff treatment of articles imported from the freely associated states, general note 3(c)(viii) to the HTS and chapter 16 of the HTS are modified as set forth in Annex III.
(5) In order to carry out the schedule of duty reductions for products of Israel, as provided in Annex I to the Israel FTA, HTS subheadings 9802.00.60 and 9802.00.80 are each modified by inserting in the Rates of Duty 1-Special subcolumn after the symbol ''CA'' in parentheses the symbol '', IL''.
(6) In order to afford MFN tariff treatment to all goods the product of the Federal Republic of Germany, general note 3(b) to the HTS is modified by striking out ''German Democratic Republic''.
(7) Any provisions of previous proclamations and Executive orders inconsistent with the provisions of this proclamation are hereby superseded to the extent of such inconsistency.
(8)(a) The modification made by paragraphs (1) and (2) of this proclamation shall be effective with respect to goods originating in the territory of Canada entered, or withdrawn from warehouse for consumption, on or after the dates set forth in Annex I to this proclamation.
(b) The modifications made by paragraph (3) of this proclamation
shall be effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after the dates set forth in Annex II to this proclamation.
(c) The modifications made by paragraph (4) of this proclamation
shall be effective with respect to products of the freely associated states entered, or withdrawn from warehouse for consumption, on or after the dates set forth in Annex III to this proclamation.
(d) The modifications made by paragraph (5) of this proclamation
shall be effective with respect to products of Israel entered, or withdrawn from warehouse for consumption, on or after January 1, 1989.
(e) The modification made by paragraph (6) of this proclamation
shall be effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after October 3, 1990.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-eighth day of September, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
ANNEX I
MODIFICATIONS TO THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES (HTS) WITH RESPECT TO THE TARIFF TREATMENT OF CERTAIN GOODS ORIGINATING IN THE TERRITORY OF CANADA
(a) Effective with respect to goods originating in the territory of Canada which are entered, or withdrawn from warehouse for consumption, on or after July 1, 1991, the HTS is modified as follows:
(1) For the following HTS subheadings, in the Rates of Duty 1-Special subcolumn, by striking the symbol ''(CA)'' and the duty rate preceding it, and inserting in lieu thereof in the parentheses following the ''Free'' rate of duty the symbol ''CA,'' in alphabetical order: 0201.20.20 0201.20.40 0201.20.60 0201.30.20 0201.30.40 0201.30.60 0202.10.00 0202.20.20 0202.20.40 0202.20.60 0204.22.20 0204.22.40 0204.23.20 0204.23.40 0204.30.00 0204.41.00 0204.42.20 0204.42.40 0204.43.20 0204.43.40 0708.90.05 0708.90.15 0708.90.30 0708.90.40 0712.20.20 0712.20.40 0712.90.40 0713.10.10 0713.10.40 0713.20.10 0713.20.20 0713.31.10 0713.31.40 0713.32.10 0713.32.20 0713.33.10 0713.33.20 0713.33.40 0713.39.10 0713.39.20 0713.39.40 0713.40.10 0713.40.20 0713.50.10 0713.50.20 0713.90.10 0713.90.60 0713.90.80 1106.10.00 1521.90.20 1602.20.20 1602.20.40 1703.10.30 1703.10.50 2306.20.00 2306.40.00 2525.20.00 2819.10.00 2825.30.00 2827.39.10 2833.29.30 2836.91.00 2841.90.10 2902.11.00 2902.50.00 2903.13.00 2912.21.00 2916.31.10 2916.31.20 2916.31.30 2916.31.50 2917.11.00 2917.35.00 2923.10.00 2933.21.00 2941.10.10 2941.10.20 2941.10.30 2941.10.50 3301.24.00 3404.20.00 3407.00.40 3701.30.00 3701.91.00 3701.99.30 3701.99.60 3702.31.00 3702.39.00 3702.43.00 3702.44.00 3702.53.00 3702.54.00 3702.91.00 3702.93.00 3702.95.00 3703.90.30 3703.90.60 3823.90.36 3917.10.10 3917.10.50 5306.10.00 5306.20.00 5307.10.00 5307.20.00 5607.10.00 5607.29.00 5607.30.20 5607.41.10 6805.10.00 6805.20.00 6805.30.10 6911.10.10 7002.31.00 7006.00.10 7006.00.20 7006.00.40 7108.12.50 7108.13.10 7108.13.50 7113.11.10 7113.19.10 7113.19.21 7113.19.25 7113.19.29 7113.20.10 7113.20.21 7113.20.25 7113.20.29 7205.10.00 7407.21.10 7407.21.50 7407.21.70 7407.21.90 7407.22.10 7407.22.50 7408.29.10 7408.29.50 7409.40.00 7409.90.10 7410.21.30 7410.21.60 7410.22.00 7616.10.30 8412.29.40 8412.29.80 8412.90.10 8423.10.00 8423.81.00 8468.10.00 8477.10.60 8480.71.90 8482.20.00 8482.99.30 8516.31.00 8516.32.00 8516.40.20 8516.40.40 8517.30.30 8521.10.00 8521.90.00 8522.90.60 8530.10.00 8530.80.00 8530.90.00 8603.10.00 8604.00.00 8605.00.00 8607.19.10 9002.11.80 9006.20.00 9006.53.00 9006.62.00 9008.10.00 9008.90.40 9008.90.80 9015.30.40 9015.30.80 9018.19.40 9018.19.80 9018.49.40 9026.90.40 9026.90.60 9027.10.20 9027.20.42 9027.20.44 9027.30.40 9027.30.80 9027.50.40 9027.90.20 9027.90.42 9027.90.44 9306.10.00 9608.60.00 9608.99.30
(2) For HTS subheadings 5505.10.00 and 5607.41.30, in the Rates of Duty 1-Special subcolumn, by striking the symbol ''(CA)'' and the duty rate preceding it, and inserting in lieu thereof ''Free (CA)''.
(3) By striking from U.S. notes 2, 4, and 5 to subchapter V of chapter 99 '''Special' subcolumn of rate of duty column 1'' and from U.S. note 3 to subchapter V of chapter 99 ''' Special' subcolumn of the rates of duty 1 column'' and inserting in lieu thereof ''Rates of Duty 1-Special subcolumn''.
(4) By deleting U.S. note 3 to subchapter V of chapter 99 and inserting in lieu thereof new U.S. note 3 to subchapter V of chapter 99, in numerical sequence, as follows:
''3. On or after January 1, 1992, the then-existing percentage
set forth in the Rates of Duty 1-Special subcolumn for HTS subheading 9905.00.30 which is applicable to goods originating in the territory of Canada shall be deleted and ''20 percent'' inserted in lieu thereof.''.
(5) By inserting new U.S. note 8 to subchapter V of chapter 99, in numerical sequence, as follows:
''8. The expression ''unworked'' in HTS subheading 9905.74.10
refers to copper plates, sheets, and strip which have not been processed beyond the condition as from the rolling mill (for example, not machined, cut to shape, perforated or coated). The term ''worked'' in HTS subheadings 9905.74.20 and 9905.74.30 refers to copper plates, sheets, and strip, or foil which have been processed beyond the condition as from the rolling mill.''.
(6) By inserting the following HTS subheadings in numerical sequence in subchapter V of chapter 99 in the HTS with the material, which is set forth in columnar format, inserted in the columns of the HTS designated ''Heading/Subheading'', ''Article Description'', and ''Rates of Duty 1-Special'', respectively:
Bracketed matter is included to assist in the understanding of proclaimed modifications.
(Goods originating...:)
(7) By striking HTS subheadings 9905.00.30, 9905.20.15, 9905.29.16, 9905.29.29, 9905.29.32, 9905.29.35, 9905.29.50, 9905.30.04, 9905.30.10, 9905.38.10, 9905.59.10, 9905.73.05, 9905.73.10, 9905.73.15, 9905.84.05, 9905.84.15, 9905.84.55, 9905.85.10, 9905.85.25, 9905.85.35, 9905.85.40, and 9905.85.70 and inserting in lieu thereof the following HTS subheadings in numerical sequence in subchapter V of chapter 99 in the HTS with the material, which is set forth in columnar format, inserted in the columns of the HTS designated ''Heading/Subheading'', ''Article Description'', and ''Rates of Duty 1-Special'', respectively:
Bracketed matter is included to assist in the understanding of proclaimed modifications.
(Goods originating...:)
''9905.00.30 Upholstery fabrics certified by the importer as intended for use as outer covering in the manufacture of upholstered furniture, provided for in the following provisions: 5208.39 5208.42 5208.49 5208.52 5208.53 5208.59 5209.31 5209.32 5209.39 5209.41 5209.43 5209.49 5209.51 5209.52 5209.59 5210.39 5210.49 5210.51 5210.59 5211.31 5211.32 5211.39 5211.41 5211.43 5211.49 5211.51 5211.52 5211.59 5407.10 5407.42 5407.43.20 5407.44 5407.52.20 5407.53.20 5407.54 5407.60.20 5407.72 5407.73.20 5407.74 5407.82 5407.83 5407.84 5407.92 5407.93 5407.94 5408.23.20 5408.24 5512.19 5512.29 5512.99 5513.21 5513.23 5513.39 5513.41 5514.21 5514.22 5514.23 5514.29 5514.31 5514.32 5514.33 5514.39 5514.41 5514.42 5514.43 5514.49 5515.11 5515.12 5515.19 5515.21 5515.29 5515.91 5515.99 5516.13 5516.14 5516.22 5516.23 5516.24 5516.43 5516.44 5516.93 5801.10 5801.22 5801.23 5801.25 5801.26 5801.31 5801.32 5801.33 5801.35 5801.36 5801.90 5802.30 5903.10 5903.20 5903.90 5906.99 5907.00...40 percent of the column 1-general rate of duty applicable under the respective listed heading or subheading (CA)
(8) By deleting from the article description of HTS subheading 9905.00.00 ''7006.00'' and ''8482.20'' and by deleting ''7616.10'' and inserting ''7616.10.10'', ''7616.10.50'', ''7616.10.70'', and ''7616.10.90'', in numerical sequence, in lieu thereof.
(b) Effective with respect to goods originating in the territory of Canada which are entered, or withdrawn from warehouse for consumption, on or after July 1, 1991, and January 1 of each of the following years: For each of the following HTS subheadings, the rate of duty in the Rates of Duty 1-Special subcolumn in the HTS that is followed by the symbol ''CA'' in parentheses is deleted and the following rates of duty are inserted in lieu thereof:
(c) Effective with respect to goods originating in the territory of Canada which are entered, or withdrawn from warehouse for consumption, on or after July 1, 1994, and January 1, 1995: For each of the following HTS subheadings, the rate of duty in the Rates of Duty 1-Special subcolumn in the HTS that is followed by the symbol ''CA'' in parentheses is deleted and the following rates of duty are inserted in lieu thereof.
(d) Effective with respect to goods originating in the territory of Canada which are entered, or withdrawn from warehouse for consumption, on or after January 1, 1996:
(1) For HTS subheading 8422.11.00, in the Rates of Duty 1-Special subcolumn in the HTS, the symbol ''(CA)'' and the duty rate preceding it are deleted, and in lieu thereof in the parentheses following the ''Free'' rate of duty the symbol ''CA,'' is inserted in alphabetical order.
(2) The following HTS subheading is inserted in numerical sequence in subchapter V of chapter 99 in the HTS with the material, which is set forth in columnar format, inserted in the columns of the HTS designated ''Heading/Subheading'', ''Article Description'', and ''Rates of Duty 1-Special'', respectively:
Bracketed matter is included to assist in the understanding of proclaimed modifications.
(Goods originating...:)
(e) Effective with respect to goods originating in the territory of Canada which are entered, or withdrawn from warehouse for consumption, on or after April 1, 1990:
(1) The following HTS subheading is inserted in numerical sequence in subchapter V of chapter 99 in the HTS with the material, which is set forth in columnar format, inserted in the columns of the HTS designated ''Heading/Subheading'', ''Article Description'', and ''Rates of Duty 1-Special'', respectively:
Bracketed matter is included to assist in the understanding of proclaimed modifications.
(Goods originating...:)
(2) HTS subheading 9905.61.05 is modified to read as follows:
Bracketed matter is included to assist in the understanding of proclaimed modifications.
(Goods originating...:)
(f) Effective with respect to goods originating in the territory of Canada which are entered, or withdrawn from warehouse for consumption, on or after January 1, 1992: The HTS is modified by striking out from general note 3(c)(vii)(R)(3) to the HTS the subdivisions designated (bb) through (dd), inclusive, and by redesignating the subdivisions designated as (ee) through (hh), inclusive, as (bb) through (ee), respectively.
(g) Effective with respect to goods originating in the territory of Canada which are entered, or withdrawn from warehouse for consumption:
(1) On or after September 4, 1990:
(i) HTS subheading 9901.00.52 is modified by striking out ''5.29 /liter'' from the Rates of Duty 1-Special subcolumn and by inserting in lieu thereof ''Free''.
(ii) The following HTS subheading is inserted in numerical sequence in subchapter V of chapter 99 in the HTS with the material, which is set forth in columnar format, inserted in the columns of the HTS designated ''Heading/Subheading'', ''Article Description'', and ''Rates of Duty 1-Special'', respectively:
Bracketed matter is included to assist in the understanding of proclaimed modifications.
(Goods originating...:)
(2) On or after January 1 of each of the years specified below, for HTS subheading 9905.96.03, the rate of duty in the Rates of Duty 1-Special subcolumn in the HTS that is followed by the symbol ''CA'' in parentheses is deleted and the following rates of duty inserted in lieu thereof.
(h) Effective with respect to goods originating in the territory of Canada which are entered, or withdrawn from warehouse for consumption:
(1) On or after October 1, 1990:
(i) HTS subheading 9905.61.10 is deleted.
(ii) The following HTS subheading is inserted in numerical sequence in subchapter V of chapter 99 in the HTS with the material, which is set forth in columnar format, inserted in the columns of the HTS designated ''Heading/Subheading'', ''Article Description'', and ''Rates of Duty 1-Special'', respectively:
Bracketed matter is included to assist in the understanding of proclaimed modifications.
(Goods originating...:)
(2) On or after January 1 of each of the years specified below, for HTS subheading 9905.51.12, the rate of duty in the Rates of Duty 1-Special subcolumn in the HTS that is followed by the symbol ''CA'' in parentheses is deleted and the following rates of duty inserted in lieu thereof.
(i) Effective with respect to goods originating in the territory of Canada which are entered, or withdrawn from warehouse for consumption, on or after January 1 of each of the years specified below: For HTS subheading 9901.00.50, the rate of duty in the Rates of Duty 1-Special subcolumn in the HTS that is followed by the symbol ''CA'' in parentheses is deleted and the following rates of duty inserted in lieu thereof.
(j) Effective with respect to goods originating in the territory of Canada which are entered, or withdrawn from warehouse for consumption, on or after January 1, 1991: The following HTS subheadings are inserted in numerical sequence in subchapter V of chapter 99 in the HTS with the material, which is set forth in columnar format, inserted in the columns of the HTS designated ''Heading/Subheading'', ''Article Description'', and ''Rates of Duty 1-Special'', respectively.
Bracketed matter is included to assist in the understanding of proclaimed modifications.
(Goods originating...:)
Conforming changes: U.S. note 8 to subchapter II of chapter 99 of the HTS is modified by striking out from such note the following HTS subheadings: ''9902.29.08'', ''9902.29.20'', ''9902.29.34'', ''9902.29.56'', ''9902.29.70'', ''9902.29.78'', ''9902.29.81'', ''9902.29.82'', ''9902.29.83'', ''9902.29.85'', ''9902.30.05'', and ''9902.40.08''.
ANNEX II
MODIFICATIONS TO THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES (HTS) TO IMPLEMENT TARIFF TREATMENT PROVIDED FOR IN THE CBERA, AND FOR OTHER PURPOSES
(a) Effective with respect to articles which are entered, or withdrawn from warehouse for consumption, on or after January 1, 1989: HTS subheading 9902.29.66 is modified by deleting ''2933.19.40'' from the article description and inserting ''2933.19.42'' in lieu thereof.
(b) Effective with respect to articles which are entered, or withdrawn from warehouse for consumption, on or after October 1, 1990:
(1) General note 3(c)(ii)(D) to the HTS is modified by striking out ''6702.90.60'' and inserting ''6702.90.65'' in lieu thereof.
(2) General note 3(c)(v)(B) to the HTS is modified by adding new subdivision (5) after general note 3(c)(v)(4) and at the same indentation, as follows:
''(5) Pursuant to subsection 213(a)(5) of the CBERA, duty-free
treatment shall be provided under the CBERA to an article (other than an article enumerated in subsection 213(b) of the CBERA) which is the growth, product, or manufacture of Puerto Rico if --
(I) the article is imported directly from the beneficiary
country into the customs territory of the United States,
(II) the article was by any means advanced in value or improved
in condition in a beneficiary country, and
(III) any materials are added to the article in a beneficiary
country, such materials are a product of a beneficiary country or the United States.''.
(c) Effective with respect to articles which are entered, or withdrawn from warehouse for consumption, on or after the date of signature of this proclamation:
(1) The following HTS subheadings are modified by inserting, in alphabetical order, the symbol ''E'' in the Rates of Duty 1-Special subcolumn in the HTS in the parentheses following the ''Free'' rate of duty in such subcolumn for each such subheading. 3005.10.50 3005.90.50 3918.10.31 3921.90.11 3926.90.57 4010.91.15 4010.99.15 5404.90.00 5405.00.60 5608.90.23 5903.10.10 5903.10.20 5903.20.20 5903.90.10 5903.90.20 5906.91.20 5906.99.20 5910.00.10 6306.22.10 6306.31.00 6406.10.72 6702.90.35 7019.10.40 9032.89.20
(2) The following HTS subheadings are modified by striking out ''E*'' in the Rates of Duty 1-Special subcolumn in the HTS and by inserting in lieu thereof ''E'' for each such subheading. 0210.90.20 0210.90.40 3403.11.50 3703.10.60 3920.20.00 3924.90.10 3925.30.10 3926.90.56 3926.90.90 4010.91.11 4010.99.11 5004.00.00 5006.00.10 5113.00.00 5307.10.00 5307.20.00 5310.90.00 5608.90.30 5609.00.20 5702.99.20 5703.90.00 5911.40.00 6210.10.20 6214.10.10 6304.99.25 6306.39.00 6306.49.00 6307.90.60 6307.90.94 6406.10.85 6504.00.30 6504.00.60 6506.10.60 6506.91.00 6506.99.00 6507.00.00 6701.00.00 6702.90.10 6703.00.60 7019.90.50 9006.91.00 9102.11.10 9102.11.25 9102.11.50 9102.11.65 9102.19.20 9102.19.60 9102.21.10 9102.21.30 9102.21.70 9102.29.02 9102.29.04 9102.29.15 9102.29.25 9102.29.35 9102.29.45 9102.29.55 9305.29.50 9401.20.00 9404.21.00 9404.29.90 9404.30.40 9404.90.20 9506.21.80 9506.29.00 9506.69.60 9506.91.00 9506.99.60 9507.90.80 9606.10.40
ANNEX III
MODIFICATIONS TO THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES (HTS) WITH RESPECT TO CERTAIN IMPORTS FROM THE FREELY ASSOCIATED STATES
(a) Effective with respect to products of the freely associated states which are entered, or withdrawn from warehouse for consumption, on or after October 1, 1990:
General note 3(c)(viii) to the HTS is modified:
(1) By striking out the title to such note and inserting in lieu
thereof the following: ''Products of the Freely Associated States''.
(2) In subdivisions (B) and (G) of such note, by striking out
''imported from'' and inserting in lieu thereof ''the growth, product or manufacture of'' in each such subdivision.
(b) Effective with respect to products of the freely associated states which are entered, or withdrawn from warehouse for consumption, on or after January 1, 1992:
(1) General note 3(c)(viii) to the HTS is modified: (i) By striking out subdivision (C) and inserting in lieu
thereof the following:
''(C) Tunas and skipjack, prepared or preserved, not in oil, in
airtight containers weighing with their contents not over 7 kilograms each, in an aggregate quantity entered in any calendar year from the freely associated states not to exceed 10 percent of United States consumption of canned tuna during the immediately preceding calendar year, as reported by the National Marine Fisheries Service, may enter the customs territory of the United States free of duty; such imports shall be counted against, but not be limited by, the aggregate quantity of tuna, if any, that is dutiable under subheading 1604.14.20 for that calendar year.''.
(ii) By striking out the text of subdivision (D)(1) and
inserting in lieu thereof ''tunas and skipjack, prepared or preserved, not in oil, in airtight containers weighing with their contents not over 7 kilograms each, in excess of the quantity afforded duty-free entry under subdivision (C) of this note;''.
(2) Chapter 16 of the HTS is modified by adding the following new
additional U.S. note in numerical sequence:
''3. For purposes of subheadings 1604.14.20 and 1604.14.30,
tunas and skipjack from the freely associated states may be entered free of duty under the appropriate subheading in an aggregate quantity provided by, and under the terms set forth in, general note 3(c)(viii)(C) to the tariff schedule. Goods from the freely associated states entered, or withdrawn from warehouse for consumption, in excess of such specified aggregate quantity shall be dutied under the appropriate subheading at the rate set forth in the ''General'' subcolumn of column 1.''.
03 CFR Proc. 6344
03 CFR Proclamation 6344 of October 1, 1991
Proclamation 6344 of October 1, 1991
03 CFR White Cane Safety Day, 1991
By the President of the United States of America
A Proclamation
Utilized by individuals who are blind to enhance their mobility and independence, the white cane is a widely recognized symbol of determination and achievement. By employing this simple device, thousands of Americans with visual impairments are able to navigate safely and freely through their environment, thereby leading fuller, more productive lives.
During our annual observance of White Cane Safety Day, we not only celebrate the accomplishments of those who use the white cane but also renew our commitment to removing the physical and attitudinal barriers that have, in the past, impeded the advancement of Americans with disabilities. This commitment underlies our efforts to implement the provisions of the Americans with Disabilities Act of 1990, which prohibits discrimination against persons with disabilities in many areas of daily life, including employment, public accommodations, telecommunications, and transportation.
Of course, one of the most important keys to opportunity in our society is a high-quality education. Accordingly, AMERICA 2000, our strategy for achieving our National Education Goals, is designed to ensure that every American has access to a world-class education.
For persons who are blind, equality in education begins before preschool and extends beyond the traditional classroom. That is, parents, teachers, public officials, and other concerned Americans must work together to promote school readiness for the blind, as well as access to on-the-job training and other educational opportunities.
On this occasion, as we reflect on the white cane and all that it symbolizes, let us reaffirm, once again, our determination to ensure equal opportunity for all Americans -- including persons who are visually impaired.
The Congress, by Joint Resolution approved October 6, 1964, authorized the President to designate October 15 of each year as ''White Cane Safety Day.''
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim October 15, 1991, as White Cane Safety Day. I encourage all Americans to observe this day with appropriate programs and activities, in recognition of the achievements of those individuals who use the white cane.
IN WITNESS WHEREOF, I have hereunto set my hand this first day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6345
03 CFR Proclamation 6345 of October 3, 1991
Proclamation 6345 of October 3, 1991
03 CFR Veterans Day, 1991
By the President of the United States of America
A Proclamation
Memory is the first measure of gratitude -- those who are truly grateful do not forget the service that has been rendered for their sake. Each November we Americans remember in a special way the veterans of the United States Armed Forces. Through their vigilance, courage, and sacrifice, these individuals have helped to secure the freedoms that we so enjoy today -- the freedoms that we can sometimes, all too easily, take for granted.
Since President Woodrow Wilson asked that all Americans pause on November 11, 1919, in honor of the Nation's war heroes, Americans have set aside this date to remember and pray for all those patriots who have put themselves in harm's way to defend the lives and liberty of others. As we salute our Nation's veterans, we also remember with solemn pride their fallen comrades, including those heroes who rest ''in honored glory . . . known but to God.''
There is no irony in the fact that we honor this country's war veterans on the anniversary of Armistice Day, a day dedicated to peace. As was the case during Operation Desert Storm, members of the U.S. military have engaged in armed conflict only as a last resort, only to defend freedom and the rule of law. And we know that these ideals form the only sure foundation for lasting peace among nations.
America's veterans have faced the hellish fires of combat and the chilling presence of mortal danger so that our children and our children's children might dwell in a safer, more peaceful world. The freedom of millions of people around the globe is, in many ways, a living monument to each of them.
Today thousands of veterans continue to serve our Nation through their families and their communities, helping others to appreciate more fully the value of freedom and the importance of patriotism. These contributions we also remember with thankfulness and pride.
Of course, while memory is the first measure of gratitude, its fullest and most meaningful expression is found in word and deed. We can never repay our veterans for all that they have endured for our sake, but we can show by our actions -- on this day and every day of the year -- that their great sacrifices are indeed cherished and remembered. Whether we do so on our own or through our schools, businesses, and community organizations, let us convey our thanks to veterans through acts of generosity and kindness. Let us demonstrate, in a special way, our respect and concern for those former service members who are hospitalized or disabled.
In order that we may pay due tribute to those who have served in our Armed Forces, the Congress has provided (5 U.S.C. 6103(a)) that November 11 of each year shall be set aside as a legal public holiday to honor America's veterans.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim Monday, November 11, 1991, as Veterans Day. I urge all Americans to honor our veterans through appropriate public ceremonies and private prayers. I also call on Federal, State, and local government officials to display the flag of the United States and to encourage and participate in patriotic activities in their communities. I invite civic and fraternal organizations, churches, schools, businesses, unions, and the media to support this national observance with suitable commemorative expressions and programs.
IN WITNESS WHEREOF, I have hereunto set my hand this third day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's address to the nation commemorating Veterans Day, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1617). For the President's remarks at the Tomb of the Unknown Soldier, see p. 1626.
03 CFR Proc. 6346
03 CFR Proclamation 6346 of October 3, 1991
Proclamation 6346 of October 3, 1991
03 CFR German-American Day, 1991 and 1992
By the President of the United States of America
A Proclamation
When German settlers landed in America near Philadelphia on October 6, 1683, they established the first of the many ties that exist between the United States and Germany. Since then, generations of German immigrants and their descendants have made outstanding contributions to American history and culture. However, the ties that we celebrate today are not only those born of kinship but also those based on common values and aspirations. Indeed, the same love of liberty that led the first German immigrants to these shores continues to animate U.S.-German relations.
For more than 40 years following World War II, the United States stood together with its friends in the Federal Republic of Germany to help guarantee that nation's freedom and security and to advance our common interests. Yet we also shared the hope that all Germans would one day enjoy the blessings of liberty in a united, democratic, and sovereign Germany. The dramatic opening of the Berlin Wall in November 1989 and the official unification of Germany less than one year later marked the achievement of that goal. Today the United States looks forward to continuing the friendship that our two peoples have so long enjoyed. Active trade and close political cooperation within the context of the Atlantic Alliance are among the most important dimensions of this relationship. However, we also value our various ''people-to-people'' contacts and exchanges. Accordingly, to promote the exchange of information and ideas with the five new Federal States of Germany -- which for too long had been isolated by the ruling communist regime -- we have joined with the German government in establishing the RIAS Foundation. In addition to facilitating cooperative radio and television productions, the Foundation will offer training and other programs for students, broadcast journalists, and other media professionals. This year the United States also opened a new Consulate General in the city of Leipzig, further strengthening the ties between our two peoples.
The new, united Germany that stands in friendship with the United States also stands as our partner in leadership. After Iraqi forces launched their brutal invasion of Kuwait on August 2, 1990, Germany joined in the international coalition that condemned the aggression and resolved to uphold the rule of law. Moreover, today's Germany not only symbolizes a new Europe, a Europe whole and free, but also is helping to lead the effort to achieve this goal. Along with the United States and other Western nations, Germany is offering valuable support to the emerging democracies of Central and Eastern Europe through investment, training programs, and technical assistance.
In keeping with its enhanced stature as a force for peace and stability in global affairs, Germany will host the next summit of the world's seven leading industrialized nations. The United States looks forward to this meeting in Munich in July 1992, and we welcome the many opportunities that lie ahead in U.S.-German relations.
The Congress, by Senate Joint Resolution 151, has designated October 6, 1991, and October 6, 1992, as ''German-American Day'' and has authorized and requested the President to issue a proclamation in observance of these occasions.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim October 6, 1991, and October 6, 1992, as German-American Day. I call upon the people of the United States to observe these occasions with appropriate ceremonies and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this 3rd day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's remarks on German-American Day, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1389).
03 CFR Proc. 6347
03 CFR Proclamation 6347 of October 4, 1991
Proclamation 6347 of October 4, 1991
03 CFR National Radon Action Week, 1991
By the President of the United States of America
A Proclamation
Radon is a naturally occurring, colorless gas that, when concentrated in high levels, can pose a threat to human health. Generated by the natural breakdown of uranium in soil, rock, and groundwater, radon can gradually seep into any building through cracks and other openings in the foundation. Because radon has been detected in every State across the country, all Americans should be aware of this potential hazard.
High levels of radon in the home are believed to be the second leading cause of lung cancer in the United States. Indeed, only smoking causes more deaths by the disease. People who smoke and dwell in a house with unacceptable levels of radon run an especially high risk of developing lung cancer.
Fortunately, even extremely high levels of radon in the home can be reduced, and testing for the gas is relatively simple and inexpensive. Indeed, testing one's home, school, or office for radon should require little time and few resources.
The United States Environmental Protection Agency has joined with a number of State governments in promoting local efforts to help Americans test their homes and schools. Other organizations that are sharing in these efforts include: the American Lung Association, the Advertising Council, the Consumer Federation of America, the American Public Health Association, the National Safety Council, and the National Association of Counties. This week, I join with them in urging all Americans to test their homes for radon and to make any necessary modifications to reduce excessive levels of the gas.
The Congress, by Senate Joint Resolution 132, has designated the week of October 13 through October 19, 1991, as ''National Radon Action Week'' and has authorized and requested the President to issue a proclamation in observance of this week.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the week of October 13 through October 19, 1991, as National Radon Action Week. I encourage government officials and all Americans to observe this week with appropriate programs and activities designed to enhance public awareness of the risks of excessive radon exposure and ways that we can reduce them.
IN WITNESS WHEREOF, I have hereunto set my hand this fourth day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6348
03 CFR Proclamation 6348 of October 7, 1991
Proclamation 6348 of October 7, 1991
03 CFR Child Health Day, 1991
By the President of the United States of America
A Proclamation
Our children's state of health is, in many ways, a measure of our success and character as a people. Thus, on Child Health Day, we reaffirm our commitment to helping every American youngster enjoy the best possible start in life -- beginning with high quality health care throughout pregnancy for expectant mothers and extending through each child's formative years.
In recent decades, we have made important progress toward the goal of better child health. For example, early immunization has virtually eliminated some childhood diseases, and, with increased vigilance on the part of parents and public health officials, it has the potential to conquer several others. A variety of educational programs and support services -- both public and private -- have encouraged more and more pregnant women to protect the lives of their unborn children through proper nutrition and prenatal care. The United States Child Nutrition Programs, including the School Lunch and School Breakfast Programs, have helped to bring healthy, well-balanced meals to millions of youngsters. Nevertheless, we know that we still have much work to do.
Statistics show that many children die or suffer permanent disability as a result of injuries -- injuries that could be prevented. In fact, the Department of Health and Human Services reports that more youngsters ages 1 through 19 die from injuries than from all other causes of death combined. In 1988 alone, injuries claimed the lives of more than 22,000 children. These injuries may be the result of accidents or physical abuse and other crimes.
Fortunately, we are finding ways to reduce the risk of accidental injury among children. Scientific research and advances in technology have enabled us to develop safer toys and flame-retardant clothing, as well as child-proof packaging for medicines and toxic chemicals. Growing public awareness of safety issues has led to protective legal measures, such as State statutes that require child passenger restraints in motor vehicles. Local initiatives requiring the use of bicycle helmets, fencing around swimming pools, and certain safety standards for playground equipment are also helping to reduce the risk of childhood injury. Of course, the success of these and other measures requires our vigilance and cooperation as parents and neighbors.I10If we are to protect the lives and health of our Nation's children, then we must also redouble our efforts to stop the scourges of child abuse, drunk driving, and other crime. A stable, loving home and a safe, nurturing environment are essential to every youngster's physical well-being and emotional development.
Government cannot replicate the love and commitment of parents; neither can it fulfill their primary responsibility in caring for their children. However, public officials, parents, and physicians -- as well as educators and other concerned Americans -- can work together to promote the health and safety of our Nation's youth. Today, let us renew our resolve to do just that. Precious lives depend on it.
The Congress, by joint resolution approved May 18, 1928, as amended (36 U.S.C. 143), has called for the designation of the first Monday in October as ''Child Health Day'' and has authorized and requested the President to issue annually a proclamation in observance of this day.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim Monday, October 7, 1991, as Child Health Day. I urge all Americans to join me in renewing our commitment to protecting the lives and health of this Nation's youngest citizens.
IN WITNESS WHEREOF, I have hereunto set my hand this seventh day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6349
03 CFR Proclamation 6349 of October 7, 1991
Proclamation 6349 of October 7, 1991
03 CFR National Firefighters Day, 1991
By the President of the United States of America
A Proclamation
When you ask a group of youngsters what each would like to be when he or she grows up, frequently, at least one will reply: ''a fireman!'' Even though the aspirations of youth often change over time, it is, nonetheless, a very telling answer. Children as well as adults recognize the extraordinary courage of firefighters -- and the tremendous importance of their work. On this occasion, Americans of all ages join in paying grateful tribute to the heroic individuals who serve our Nation as professional and volunteer firefighters.
The responsibilities of a firefighter often entail considerable personal risk and sacrifice. In addition to enduring what are sometimes long and unpredictable hours -- a burden shared by the loved ones who must cope with worry and waiting -- firefighters are frequently called to put themselves in harm's way to protect the lives and the property of others. Today we remember in a special way those firefighters who have perished in the line of duty. Their great sacrifice underscores the risks that firefighters accept, each and every day, for our sake.
Professional and volunteer firefighters not only bring prompt, highly skilled assistance to victims of fire and other emergencies but also play a leading role in promoting public safety. Through schools and community programs across the country, firefighters are helping to educate the public -- in particular, children -- about ways to avoid fire and safety hazards. They are also teaching individuals what to do if an emergency strikes. Many firefighters who are also trained as paramedics and emergency medical technicians are helping to save lives by instructing citizens in first aid -- including cardiopulmonary resuscitation.
In recognition of the lifesaving work of our Nation's firefighters, the Congress, by House Joint Resolution 189, has designated October 8, 1991, as ''National Firefighters Day'' and has authorized and requested the President to issue a proclamation in observance of this day.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim October 8, 1991, as National Firefighters Day. I encourage all Americans to observe this day with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this seventh day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6350
03 CFR Proclamation 6350 of October 8, 1991
Proclamation 6350 of October 8, 1991
03 CFR National Disability Employment Awareness Month, 1991
By the President of the United States of America
A Proclamation
No nation, no matter how wealthy, has ever been able to afford the waste of human talent and potential. That is particularly true today, as the world economy continues to grow in size and sophistication. If the United States is to remain strong and prosperous in the increasingly technological, increasingly competitive global marketplace, then we must employ the creativity, energy, and skills of all of our citizens -- including the millions of Americans with disabilities who are both eager and able to work.
The estimated 43 million Americans who have disabilities constitute a rich, yet too often untapped, national resource. Because each of these Americans, like every other citizen, is a full heir to the promise of ''life, liberty, and the pursuit of happiness,'' our Nation has a solemn obligation to provide them with equal opportunities in education and employment. Doing so is not just in the best interest of the United States, it is also one of the best ways we can affirm our belief in the inherent rights and dignity of all individuals.
It is gratifying to report that we are already making progress. For example, the Americans with Disabilities Act required, among other measures, that five specific Federal agencies establish implementation regulations or guidelines. Most of those regulations -- relating to employment, public accommodations, transportation, and communications -- have been proposed. On July 26, 1991, the first anniversary of the Americans with Disabilities Act, I issued a memorandum to the heads of all Federal departments and agencies directing that the Federal Government serve as a model for the Nation by providing equal opportunities for persons with disabilities in recruitment, hiring, and career development.
Of course, while government can lead, it cannot do the job alone. The success of the Americans with Disabilities Act will depend on the express commitment and the sustained cooperation of public officials, educators, business and industry leaders, and persons with disabilities. A little over a year ago, when I signed into law the Americans with Disabilities Act of 1990, the world's first comprehensive declaration of equality for persons with disabilities, the United States became the international leader on this human rights issue. As other nations seek to bring their disabled citizens into the mainstream of national life, we can truly say that the Americans with Disabilities Act will affect the lives of millions of people around the globe.
The Congress, by joint resolution approved August 11, 1945, as amended (36 U.S.C. 155), has called for the designation of the month of October of each year as ''National Disability Employment Awareness Month.'' This special month is a time for all Americans to recognize the unlimited potential of persons with disabilities and renew our determination to provide equal employment opportunities for them.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the month of October 1991 as National Disability Employment Awareness Month. I call on the people of the United States to continue working to guarantee for Americans with disabilities equal employment opportunities and all of the full rights and privileges of citizenship.
IN WITNESS WHERF, I have hereunto set my hand this eighth day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's remarks commemorating the first anniversary of the signing of the Americans With Disabilities Act, see p. 1042 of the Weekly Compilation of Presidential Documents. For his memorandum on access for people with disabilities to Federal programs and employment, see p. 1044.
03 CFR Proc. 6351
03 CFR Proclamation 6351 of October 8, 1991
Proclamation 6351 of October 8, 1991
03 CFR Mental Illness Awareness Week, 1991
By the President of the United States of America
A Proclamation
Once shrouded in mystery -- and spoken of only in sad, hushed tones -- mental illness is becoming more widely understood. Thanks to dramatic advances in basic biomedical research and in the behavioral sciences, we have been able to achieve significant improvements in the diagnosis, treatment, and prevention of emotional and mental disorders. Scientific progress has also helped to alleviate the stigma associated with mental illness, as more and more Americans learn about its origins and effects. Nevertheless, because millions of Americans suffer from some kind of mental disorder, we pause this month to reflect on this major public health problem and to renew our commitment to better mental health.
Mental illness can affect people of any age, race, or walk of life. For example, many elderly Americans are vulnerable to depression and to other illnesses that can threaten their independence and security. Many youngsters who are affected by phobias or other mental disorders continue to suffer when their symptoms are mistaken for passing behavioral problems. Left untreated, mental illness not only leads to lost productivity in school and in the workplace but also damages its victims' self-esteem and personal relationships.
Recognizing the high costs of mental illness to individuals and to the Nation, scientists, physicians, and other concerned parties throughout the Federal Government and the private sector are working hard to achieve further progress in brain research. Just 2 years ago, as an expression of our support for their efforts, I signed into law House Joint Resolution 174, which called for the observance of the 1990s as the ''Decade of the Brain.'' This resolution underscored the importance of continuing brain research and signalled our firm commitment to better mental health in the United States.
In recognition of the importance of educating the public about mental illness and the needs of those who suffer from it, the Congress, by Senate Joint Resolution 156 has designated the week beginning October 6, 1991, as ''Mental Illness Awareness Week'' and has authorized and requested the President to issue a proclamation in observance of this week.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the week of October 6 through October 12, 1991, as Mental Illness Awareness Week. I invite all Americans to observe this week with appropriate programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this eighth day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6352
03 CFR Proclamation 6352 of October 9, 1991
Proclamation 6352 of October 9, 1991
03 CFR Agreement on Trade Relations Between the United States of America and the Union of Soviet Socialist Republics
By the President of the United States of America
A Proclamation
1. Pursuant to the authority vested in me by the Constitution and the laws of the United States, as President of the United States of America, I, acting through duly empowered representatives, entered into negotiations with representatives of the Union of Soviet Socialist Republics to conclude an agreement on trade relations between the United States of America and the Union of Soviet Socialist Republics.
2. These negotiations were conducted in accordance with the requirements of the Trade Act of 1974 (Public Law 93-618, January 3, 1975; 88 Stat. 1978), as amended (the ''Trade Act'').
3. As a result of these negotiations, an ''Agreement on Trade Relations Between the United States of America and the Union of Soviet Socialist Republics,'' including annexes and exchanges of letters which form an integral part of the Agreement, the foregoing in English and Russian, was signed on June 1, 1990, by duly empowered representatives of the two Governments and is set forth as an annex to this proclamation.
4. This Agreement conforms to the requirements relating to bilateral commercial agreements set forth in section 405(b) of the Trade Act (19 U.S.C. 2435(b)).
5. Article XVII of the Agreement provides that the Agreement shall enter into force on the date of exchange of written notices of acceptance by the two Governments.
6. Section 405(c) of the Trade Act (19 U.S.C. 2435(c)) provides that a bilateral commercial agreement providing nondiscriminatory treatment to the products of a country heretofore denied such treatment, and a proclamation implementing such agreement, shall take effect only if approved by the Congress under the provisions of that Act.
7. Section 604 of the Trade Act (19 U.S.C. 2483) authorizes the President to embody in the Harmonized Tariff Schedule of the United States the substance of the provisions of that Act, of other acts affecting import treatment, and actions taken thereunder.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States, including but not limited to sections 404, 405, and 604 of the Trade Act of 1974, as amended, do proclaim that:
(1) This proclamation shall become effective, said Agreement shall enter into force, and nondiscriminatory treatment shall be extended to the products of the Union of Soviet Socialist Republics, in accordance with the terms of said Agreement, on the date of exchange of written notices of acceptance in accordance with Article XVII of said Agreement. The United States Trade Representative shall publish notice of the effective date in the Federal Register.
(2) Effective with respect to articles entered, or withdrawn from warehouse for consumption, into the customs territory of the United States on or after the date provided in paragraph (1) of this proclamation, general note 3(b) to the Harmonized Tariff Schedule of the United States, enumerating those countries whose products are subject to duty at the rates set forth in Rates of Duty Column 2 of the tariff schedule, is modified by striking out ''Union of Soviet Socialist Republics''.
IN WITNESS WHEREOF, I have hereunto set my hand this ninth day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: The annex referred to in paragraph 3 of Proclamation 6352 is printed in the Federal Register on 56 FR 37409, August 6, 1991.
03 CFR Proc. 6353
03 CFR Proclamation 6353 of October 9, 1991
Proclamation 6353 of October 9, 1991
03 CFR Polish-American Heritage Month, 1991
By the President of the United States of America
A Proclamation
The ties that exist between the peoples of the United States and Poland are as old as our Nation itself -- firmly rooted in kinship and fortified by our mutual devotion to the ideals of liberty and self-government, they have withstood the tests of time and adversity. This month, we proudly celebrate those ties, as well as the many contributions that Americans of Polish descent have made to our country.
Our Polish American heritage traces back to the settlement of Jamestown in 1607, when Poles stood among the first immigrants to the New World. Since then, generations of Polish immigrants have built new lives on these shores, inspiring others by their faith and hard work and enriching American culture through the unique customs and traditions of their ancestral homeland. And from the scientific genius of Copernicus and Madame Curie to the brilliant work of artists such as Chopin and Paderewski, individuals of Polish descent have enriched not just America but the world with a wealth of talent and vision.
However, of all the gifts that Poland has given to the world, one of the most valuable and enduring is the example of her people, who have demonstrated extraordinary faith, courage, and resolve in their quest for freedom. Indeed, since the earliest days of our Republic, Americans and Poles have shared an abiding love of liberty and self-government. Brave Poles such as Tadeusz Kosciuszko and Kazimierz Pulaski helped to achieve our Nation's independence. They stood in solidarity with our ancestors because they knew that the hopes of all freedom-loving peoples were invested in this country's bold experiment in self-government. Through their historic Constitution of May 3, 1791, which was modeled after our own, Poles bravely asserted their desire for freedom. That document has remained a cherished symbol of Polish patriotism and courage.
Despite generations of foreign occupation and repressive rule, including invasion by Nazi Germany and the Soviet Union in 1939 and the declaration of martial law in 1981, Poles have remained firm in their hopes for freedom. Their recent triumph over communist rule and their peaceful transition to a democratic system of government underscored the truth of the timeless refrain: ''Poland is not lost while Poles still live.''
Today the people of Poland are writing a bright new chapter in their nation's history. We Americans applaud their courageous steps to reform their economy and government, and we reaffirm our support for their efforts. In addition to offering direct financial aid, the United States has been engaged in efforts to encourage private sector investment and the growth of market institutions in Poland, through such vehicles as a housing loan guarantee program, the Polish Stabilization Fund, and the Polish-American Enterprise Fund. They symbolize our commitment to helping Poland establish stable democratic rule and a successful market-oriented economy.
In recognition of the strong and friendly ties that exist between the United States and Poland, the Congress, by Public Law 102-115, has designated October 1991 as ''Polish-American Heritage Month'' and has authorized and requested the President to issue a proclamation in observance of this month.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim October 1991 as Polish-American Heritage Month. I urge all Americans to join their fellow citizens of Polish descent in observance of this month.
IN WITNESS WHEREOF, I have hereunto set my hand this ninth day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6354
03 CFR Proclamation 6354 of October 10, 1991
Proclamation 6354 of October 10, 1991
03 CFR Columbus Day, 1991
By the President of the United States of America
A Proclamation
As we approach the 500th anniversary of Christopher Columbus' first landing in the New World, renewed attention is being focused on this celebrated Admiral of the Ocean Seas in both Europe and the Americas. During our annual observance of Columbus Day, we celebrate all that this master mariner has symbolized to our Nation. For generations, Christopher Columbus has embodied the spirit of exploration and discovery -- and the beginning of America itself.
When Columbus began his first bold transatlantic voyage in 1492, he was pursuing both a theory and an opportunity. The journey promised as much risk as reward, and it required substantial courage, initiative, and resolve on the part of Columbus and his crew. These qualities have been shared by virtually every great pioneer. Thus the story of Christopher Columbus reminds us that all fruitful exploration and discovery begins with a willingness to set one's sails higher, to seek new horizons, and to follow wherever one's imagination and experience might lead. It also reminds us that industry and labor are the foundation of learning and progress.
On this occasion, however, we celebrate not only the spirit of learning but also the story of our Nation. The meeting of cultures that was made possible by Christopher Columbus marked the beginning of a new chapter in history. The subsequent exchange of knowledge, resources, and ideas between the Old World and the New led to the development of two entire continents and to the birth of a Nation committed to liberty and opportunity.
Columbus Day has long been a special occasion to Italian Americans and to Americans of Spanish descent. Yet as we remember the brave son of Genoa who, with help from the Spanish monarchs Ferdinand V and Isabella I, linked two hemispheres, we know that this day holds meaning for us all. It is a time to recall the many pioneers who, like Columbus, have challenged the unknown and carried humankind further along the path of progress. It is a time to celebrate the rich heritage of America's native peoples, as well as our strengths as a Nation of immigrants. On this day, we also celebrate the close ties we share with our neighbors in Central and South America and the Caribbean, as fellow heirs of Columbus' voyages. Our Administration is working hard to develop these ties even closer through the Enterprise for the Americas Initiative. Most important, perhaps, Columbus Day is a time for us to do some exploring of our own -- to study and learn from the past so that we might appreciate more fully the blessings of freedom and the principles that unite all Americans today.
In tribute to the legacy of Christopher Columbus, the Congress, by joint resolution of April 30, 1934 (48 Stat. 657), as modified by the act of June 28, 1968 (82 Stat. 250), has requested the President to proclaim the second Monday in October of each year as ''Columbus Day.''
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim October 14, 1991, as Columbus Day. I call on the people of the United States to observe this day with appropriate ceremonies and activities. I also direct that the flag of the United States be displayed on all public buildings on the appointed day in honor of Christopher Columbus.
IN WITNESS WHEREOF, I have hereunto set my hand this 10th day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's remarks on Columbus Day, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1425).
03 CFR Proc. 6355
03 CFR Proclamation 6355 of October 11, 1991
Proclamation 6355 of October 11, 1991
03 CFR National Children's Day, 1991
By the President of the United States of America
A Proclamation
Few joys here on earth can compare to that of a happy childhood. As we advance in years, we begin to recognize it as one of life's greatest blessings. Of course, the ideal childhood is more than a precious age of innocence or of long, carefree days at play. It is also an exciting time of learning and discovery that shapes our values and our sense of identity, equipping us for the challenges and opportunities of the future. Because the person who enjoys a healthy, happy childhood is most likely to become a healthy, well-adjusted adult, we do well to recall our obligation -- as parents and as a Nation -- to protect, nurture, and provide for our children.
Most parents are keenly aware of their responsibilities of providing food, shelter, clothing, and basic health care -- the fundamental material support that is essential to every youngster's physical and emotional well-being. Yet parents also have a responsibility to nurture the spiritual and intellectual development of the child whom God has entrusted to their care.
Indeed, whether he or she is their biological, adoptive, or foster child, every youngster needs encouragement and discipline, as well as attention and affection. By word, deed, and example, parents must help their children recognize the meaning of love and respect -- and the difference between right and wrong. Parents can and should help their children to recognize their own talent and potential, and instill in them an appreciation of the American traditions of freedom and tolerance. Finally, because the days of childhood can never be reclaimed, we must allow our children to be children, never rushing them in our constant attempts to educate and inspire.
Of course, meeting the responsibilities of parenting is not easy. For many families, putting food on the table and making ends meet is an enormous challenge in itself. Filling a child's emotional and spiritual needs and material demands requires faith, sacrifice, fortitude, and commitment -- virtues that are the measure of love and the strength of families. Yet the importance of giving our children ample amounts of love, discipline, and guidance cannot be overstated; statistics on drug abuse, adolescent pregnancy, and other problems underscore the consequences of offering too little, too late. And we know that while government can and should assist parents in fulfilling their duties, it is no substitute for stable, loving family life.
Thus, as we honor America's youngest citizens on this National Children's Day, let us recall the essential ingredients of a healthy, happy, and secure childhood and reaffirm our commitment to helping every American youngster to enjoy the best possible start in life. As it is written in Scripture, ''Train up a child in the way that he should go, and when he is old, he will not depart from it.''
The Congress, by Senate Joint Resolution 126, has designated the second Sunday in October 1991 as ''National Children's Day'' and has authorized and requested the President to issue a proclamation in observance of this day.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim Sunday, October 13, 1991, as National Children's Day. I call on the American people to observe that day with appropriate programs, ceremonies, and activities designed to honor children and to emphasize the importance of their physical and emotional well-being. I also urge all Americans to reflect on the importance of stable, loving families to children and to our Nation.
IN WITNESS WHEREOF, I have hereunto set my hand this eleventh day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6356
03 CFR Proclamation 6356 of October 11, 1991
Proclamation 6356 of October 11, 1991
03 CFR World Food Day, 1991 and 1992
By the President of the United States of America
A Proclamation
At a time when America traditionally celebrates the promise of a rich autumn harvest, we do well to remember that hunger and malnutrition are a painful reality for millions of people around the world today. The situation is particularly tragic among infants and children in less developed countries. Each year millions die of starvation or disease; many others are permanently disabled as a result of chronic vitamin deficiencies. Recognizing the threat that hunger poses to human life and to the stability of nations, the United States is participating in the 11th annual observance of World Food Day.
The American people have long been providing generous humanitarian assistance to the hungry and less fortunate. This year alone, the United States will give more than 8 million metric tons of food, worth nearly $1.9 billion, to hungry people in other countries. In addition to sharing our Nation's abundant agricultural resources, we will also continue to share our technical knowledge and expertise, helping needy peoples to achieve greater food production and economic development.
Although we have taken important strides in the campaign against hunger, we still have much more to accomplish. Just as there is no single cause behind this large and complex problem, there is no single solution. For example, the worst reports of hunger and starvation often come from countries that have been racked by years of political upheaval and civil war. Indeed, in countries such as the Sudan, Ethiopia, and Mozambique, famine has not been so much the result of adverse weather conditions and crop shortages as of strife-related barriers to the distribution of food. The needless suffering of millions of innocent men, women, and children compels us to persevere in the quest for lasting peace and security.
We must also continue to promote private enterprise and free markets as catalysts for economic development and technological progress among nations. In many countries, centralized government planning has destroyed incentives for farmers and stifled agricultural production, leading to widespread poverty and hunger. Elsewhere -- even where crops are abundant -- excessive trade barriers prevent farmers from selling their goods on world markets, thereby limiting economic opportunity and growth. That is why we must continue working to open the world's markets and to liberalize trade through negotiations such as the Uruguay Round of the General Agreement on Tariffs and Trade.
Another threat to the future of some developing nations is the systematic degradation of the natural resource base on which sustainable agriculture depends. Forests are being destroyed at a rapid rate and soils depleted through subsequent erosion. Failure to protect the environment poses a significant long-term threat to the ability of those countries to feed their inhabitants.
The observance of World Food Day reminds us that the chilling specter of hunger and starvation is often nothing less than the lengthening shadow of illiteracy, poverty, government repression, and civil unrest. On this occasion, as we renew our commitment to feeding the hungry, let us also reaffirm our determination to find the lasting answers that go hand in hand with peace, opportunity, and education.
The Congress, by House Joint Resolution 230, has designated October 16, 1991, and October 16, 1992, as ''World Food Day'' and has authorized and requested the President to issue a proclamation in observance of these days.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim October 16, 1991, and October 16, 1992, as World Food Day. I call on all Americans to observe these days with appropriate programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this eleventh day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6357
03 CFR Proclamation 6357 of October 15, 1991
Proclamation 6357 of October 15, 1991
03 CFR National Law Enforcement Memorial Dedication Day, 1991
By the President of the United States of America
A Proclamation
Each and every day of the year -- and at every hour of the day -- our Nation's law enforcement officers walk the thin blue line, putting themselves in harm's way to protect the lives and the property of their fellow Americans. Statistics provided by the Department of Justice underscore the risks and sacrifices that they accept for our sake: on average, one officer dies in the line of duty every 57 hours; that is, 150 law enforcement personnel each year. Another 20,000 are injured, and some 60,000 are assaulted. Because such numbers, like news headlines, can too often belie the reality of human suffering, we must always remember that each of these officers is a beloved son or daughter, a husband or wife, a sister or brother, a mother or father, or a friend.
This year, on October 15, the National Law Enforcement Officers Memorial will be dedicated in Washington, D.C., to honor these American heroes. The names of those who have made the ultimate sacrifice in service to our country are inscribed along the Memorial's ''Pathway of Remembrance.'' They include names such as that of U.S. Marshal Robert Forsyth, who, in 1794, became the first American law enforcement officer to die in the line of duty. He was killed while serving an arrest warrant.
The Memorial also contains the names of Hammond, Indiana, Police Officer Donald P. Cook, who was shot and killed in January 1947 after serving only 7 days on the job; New Salem, North Dakota, Police Chief Ed Memby, who was shot and killed in July 1953 by a man who refused to pay a 1 cent sales tax on a soda; U.S. Marshal Samuel Enoch Vaugh, the father of 13 children, who was shot and killed by a prisoner in August 1953; and Julie Y. Cross, the first female Secret Service casualty, who was shot and killed during a stakeout in October 1979. These, of course, are just a few of the brave and selfless individuals to whom our National Law Enforcement Officers Memorial has been dedicated. We also remember with solemn pride and gratitude the hundreds of others who have gone before them, as well as those who have since joined their ranks.
Years from now, the National Law Enforcement Officers Memorial will continue to remind visitors of the debt that we owe to those who have died in the service of public safety and justice. On this occasion, however, as we honor the fallen, let us also remember the heroic individuals who, at this very moment, continue to wage our Nation's fight against crime. Let us pray for their well-being, and let us offer them our wholehearted cooperation and support.
To heighten public awareness of the risks and the responsibilities that law enforcement officers face each day, the Congress, by Senate Joint Resolution 107, has designated October 15, 1991, as ''National Law Enforcement Memorial Dedication Day'' and has authorized and requested the President to issue a proclamation in observance of this day.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim October 15, 1991, as National Law Enforcement Memorial Dedication Day. I urge all Americans to observe this day with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this fifteenth day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's remarks at the dedication of the National Law Enforcement Officers' memorial, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1448).
03 CFR Proc. 6358
03 CFR Proclamation 6358 of October 15, 1991
Proclamation 6358 of October 15, 1991
03 CFR Country Music Month, 1991
By the President of the United States of America
A Proclamation
To listen to a country and western song is to hear the story of America set to music. It is a story of patriotism and hard work, a story of faith, opportunity, and achievement. Most of all, it is the story of a people whose love of freedom is equalled only by their love of life itself. During Country Music Month, we proudly celebrate this popular musical genre and the many talented composers and performers who bring it to our ears.
Country music is honest, good-natured music played with style and spirit. Like a favorite pair of faded blue jeans, it fits the way we live. Never out of fashion, always comfortable, country music has millions of fans in cities and towns across the United States -- people of all ages and all walks of life. And whether they tap their toes to the lively sound of bluegrass and honky-tonk or hum along with the rhythm and blues, country music lovers share an appreciation of the simple and most important things in life: faith, family, and friendship.
Of course, while country music speaks from the heart of the American people, it has -- like liberty itself -- a great and universal appeal. Indeed, millions of people around the world can be counted among its fans. Maybe that is because country music crosses the barriers of culture and language, capturing all the joys, struggles, laughter, and heartache that are part of our daily lives. In any case, the growing popularity of country music is a tribute to generations of American composers, lyricists, singers, and musicians.
The Congress, by House Joint Resolution 305, has designated October 1991 as ''Country Music Month'' and has authorized and requested the President to issue a proclamation in observance of this month.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim October 1991 as Country Music Month. I invite all Americans to observe this month with appropriate ceremonies and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this fifteenth day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's remarks at the country music awards in Nashville, see the Weekly Compilation of Presidential Documents (vol 27, p. 1396).
03 CFR Proc. 6359
03 CFR Proclamation 6359 of October 17, 1991
Proclamation 6359 of October 17, 1991
03 CFR Crime Prevention Month, 1991
By the President of the United States of America
A Proclamation
America has committed unprecedented energy and resources to the fight against crime -- and with promising results. We have strengthened law enforcement, making record increases in the number of Federal prosecutors and agents, and we have significantly increased the capacity of Federal prisons. Through vigorous public education and prevention programs, we have started to reduce the demand for drugs -- the companion and source of far too much corruption and violence. At the same time, through stepped-up interdiction efforts, we have disrupted the deadly operations of several major drug cartels. Such intensified efforts to uphold law and order have made a difference: according to victimization surveys cited by the Department of Justice, the percentage of American households affected by crime fell last year to its lowest rate since 1975.
Despite the progress we have made, however, the incidence of crime in the United States is still much too high. More than 22 million households in the United States felt the blow of crime last year, and countless Americans live in fear for their safety. While we can place great confidence in the courage, professionalism, and skill of our law enforcement officials, we also know that government cannot do the job alone -- law enforcement officers must have the respect and the support of the people they serve.
Fortunately, many concerned Americans have already taken a stand to help prevent crime and to apprehend its perpetrators. These Americans are keeping watch over their neighborhoods and reporting any suspicious activity to police; they are helping to identify drug dealers and to clean up abandoned lots and other places that seem to attract illicit activity; and they are working to develop rewarding education and recreation programs that can help keep youngsters away from drugs. Such voluntary grass-roots efforts are vital to winning the fight against crime.
Crime Prevention Month underscores the fact that everyone has a role to play in making our streets safe -- businesses, schools, religious and voluntary organizations, the media, as well as concerned individuals and families. With that in mind, let us create a new spirit of cooperation and caring in our communities. Let us reinforce, by word, deed, and example, the values that make law and order possible: personal responsibility, respect for others, and the fundamental sense of decency that comes from knowing the difference between right and wrong. Working together, we can build a better, safer America.
The Congress, by House Joint Resolution 303, has designated October 1991 as ''Crime Prevention Month'' and has authorized and requested the President to issue a proclamation in observance of this month.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim October 1991 as Crime Prevention Month. I call on all Americans to observe this month with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this seventeenth day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6360
03 CFR Proclamation 6360 of October 18, 1991
Proclamation 6360 of October 18, 1991
03 CFR National Consumers Week, 1991
By the President of the United States of America
A Proclamation
For generations, our Nation's free enterprise system has provided consumers an unparalleled selection of high quality goods and services, as well as ample opportunities for earning, spending, and investing personal income. Now, as more and more countries around the world adopt market-oriented economies, thereby expanding global trade and commerce, consumers stand to benefit from an ever wider array of options.
Increasing competition in the marketplace spurs business and industry to improve both the quality and price of their products and services. This in turn enables consumers to get more out of their buying dollar. At the same time, the demand for greater innovation and productivity helps to create jobs.
The theme for this year's observance of National Consumers Week, ''Today's Choices -- Tomorrow's Opportunities,'' underscores the importance of decisions made by individual consumers. What people buy, where, and how often helps to determine the shape of the marketplace, be it at the local or the international level. Here in the United States, we have traditionally relied on the ability of consumers and private industry to balance each other's needs and interests in the marketplace, with government intervening only to ensure fairness and the safety of goods and services. This system provides the flexibility that is essential to economic growth and technological progress.
However, while our options as consumers are virtually unlimited, our resources are not. Every American needs to recognize the importance of savings and investment, and all of us must decide carefully when spending our resources. To be responsible and discerning consumers, we must be knowledgeable about available goods and services. Every American must also be able to apply fundamental literacy skills to the day-to-day challenges of participating in our economy. The skills that one uses to compare products or to balance a checkbook are vital to success, not only in the marketplace, but also in the workplace. Our Nation's parents, educators, business leaders, and public officials share the responsibility for teaching these essential skills.
This year, as we mark the 10th anniversary of National Consumers Week, let us renew our determination to ensure that every American has the basic tools needed to exercise his or her rights as a consumer. Those rights include: the right to be free of unfair monopolies, which limit selection of products and services; the right to healthful and safe products; and the right to be heard when products do not meet acceptable standards. These rights are based on fundamental principles of freedom and fairness, and their preservation goes hand in hand with the success of our free enterprise system.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim the week beginning October 20, 1991, as National Consumers Week. I urge business owners, educators, public officials, consumer leaders, and members of the media to observe this week with appropriate activities that emphasize the important role consumers play in keeping our markets open, competitive, and fair. I also urge them to highlight the importance of education in helping citizens to become responsible consumers.
IN WITNESS WHEREOF, I have hereunto set my hand this eighteenth day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6361
03 CFR Proclamation 6361 of October 21, 1991
Proclamation 6361 of October 21, 1991
03 CFR National Down Syndrome Awareness Month, 1991
By the President of the United States of America
A Proclamation
Down Syndrome is one of the most common congenital causes of mental retardation. According to the Department of Health and Human Services, it affects approximately 4,000 babies in the United States each year. At one time in our history, people with Down Syndrome were stigmatized or, all too frequently, committed to institutions. Now they are benefitting from important advances in research, education, and health care.
Today we know that many individuals with Down Syndrome are both determined and able to lead active, productive lives. Thanks to early intervention and mainstreaming, as well as improved treatment of physical health problems related to Down Syndrome, thousands are doing just that.
In recent years, more and more parents have been able to obtain the information and support that they need to cope with the unique challenges of rearing a child with Down Syndrome. Through special classes and mainstream programs in schools, more and more young people with this developmental disability are joining in the exciting process of learning and discovery. Many are also working to achieve their fullest potential through vocational training and independent living programs. Their achievements, underscored by recent television appearances of actors with Down Syndrome, are helping to dispel old myths and misconceptions about the disorder.
Much of this progress has been made possible by the vision and hard work of concerned researchers, physicians, educators, and parents, including members of private voluntary organizations such as the National Down Syndrome Congress and the National Down Syndrome Society. Working together with government agencies, these Americans have helped to affirm the God-given abilities and worth of persons with Down Syndrome. This month, we express our admiration and our support for their efforts.
To help promote greater understanding of Down Syndrome, the Congress, by Senate Joint Resolution 131, has designated the month of October 1991 as ''National Down Syndrome Awareness Month'' and has authorized and requested the President to issue a proclamation in observance of this month.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the month of October 1991 as National Down Syndrome Awareness Month. I invite all Americans to observe this month with appropriate programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-first day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6362
03 CFR Proclamation 6362 of October 21, 1991
Proclamation 6362 of October 21, 1991
03 CFR United Nations Day, 1991
By the President of the United States of America
A Proclamation
As its Charter states, the United Nations was envisioned ''to save succeeding generations from the scourge of war . . . to reaffirm faith in fundamental human rights . . . in the equal rights of men and women and of nations large and small, and to establish conditions under which justice and respect for the obligations arising from treaties and other sources of international law can be maintained, and to promote social progress and better standards of life in larger freedom.'' Today the United Nations has an opportunity unparalleled in its 46-year history to fulfill the promise of its Charter.
In the past year, the United Nations has played a dramatic role in repelling aggression and vindicating the right of all states to live in peace. Indeed, it has proved that it can be an effective vehicle for promoting international cooperation and security. During the crisis in the Gulf, the U.N. condemned Iraqi aggression and took necessary and proportional steps to ensure peace and security in the region. It has also demonstrated exemplary compassion in addressing the human tragedy wrought by Iraq's invasion of Kuwait, the ensuing armed conflict, and subsequent Iraqi actions against its own citizens.
Today we know that, with the building of consensus and cooperation among its members, the United Nations can meet serious and sudden challenges to international peace. However, universal respect for human rights, as well as the long-term social and economic development of nations, are Charter aims that go hand in hand with the larger goal of lasting world peace. Thus the United Nations and its specialized agencies must continue working to overcome repression, poverty, illiteracy, and other persistent barriers to human freedom and progress.
Many people are aware of the United Nations' role in peacekeeping and in coordinating international humanitarian relief efforts. However, the United Nations is also playing an increasingly visible and important role in the fight against illicit drug use and drug trafficking. In 1987, the Secretary General convened a global conference on these subjects. One year later, the United States and other countries joined in negotiating the U.N. Convention Against Illicit Drug Trafficking in Narcotic Drugs and Psychotropic Substances. We have urged all signatories to ratify this treaty.
The United States will also continue to support global environmental protection efforts through the United Nations. Established in 1972, the United Nations Environment Program (UNEP) has an important role to play as humankind strives to reconcile legitimate needs for economic development with the need to preserve our planet's fragile ecosystem. During the past two decades, UNEP has been collecting widely sought information on the most effective means of conducting environmental impact assessments. As we prepare for the 1992 Conference on Environment and Development, UNEP should continue to serve as a central forum for the study and development of related policies and programs.
By facilitating international cooperation on issues ranging from the environment and drug interdiction to war and peace, human rights, development, and humanitarian concerns, the United Nations and its specialized agencies are helping to shape the world of tomorrow. The United States is pleased to note that seven new members have recently joined the United Nations, and we look forward to continuing progress in the year ahead.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim October 24, 1991, as United Nations Day. I invite all Americans to observe this day with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-first day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6363
03 CFR Proclamation 6363 of October 23, 1991
Proclamation 6363 of October 23, 1991
03 CFR Community Center Month, 1991
By the President of the United States of America
A Proclamation
During the travels that inspired his acclaimed work, Democracy in America, Alexis de Tocqueville was deeply impressed by the American tradition of neighbor helping neighbor. ''What political power,'' he asked admiringly, ''could ever carry on the vast multitude of lesser undertakings which the American citizens perform every day, with the assistance of the principle of association?'' More than a tribute to the generosity of this country's people, his words also contained a telling observation about the blessings of freedom -- including our freedom of assembly.
The American traditions of voluntary association and service continue to thrive today. In many ways, they are embodied by this Nation's bustling community centers. Offering a wide range of cultural, social, and recreational activities and services, these local institutions have been gathering places for people of all ages and all walks of life. By the turn of this century, community centers had become a haven for thousands of immigrants, who sought help learning English and adjusting to life in the United States. Now in their second century of service, community centers continue to offer the American people valuable assistance programs as well as rewarding opportunities for personal enrichment.
This month, as we recognize the importance of our Nation's community centers, we also salute the many dedicated professionals and volunteers who make them work. These Americans are brilliant Points of Light whose efforts are making a real difference in the neighborhoods, cities, and towns in which they live.
The Congress, by Public Law 101-587, has designated the month of October 1991 as ''Community Center Month'' and has authorized and requested the President to issue a proclamation in observance of this month.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim October 1991 as Community Center Month. I invite all Americans to observe this month with appropriate ceremonies and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-third day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6364
03 CFR Proclamation 6364 of October 24, 1991
Proclamation 6364 of October 24, 1991
03 CFR National Breast Cancer Awareness Month, 1991
By the President of the United States of America
A Proclamation
Despite all we have learned about prevention, despite all of the advances that have been made in its diagnosis and treatment, breast cancer continues to kill thousands of American women each year. Stopping this tragic loss of life will require continued research as well as the sustained cooperation of scientists, health care professionals, educators, insurance providers, individual women, and other concerned Americans.
According to the American Cancer Society, women in the United States have never been at greater risk for breast cancer: an estimated one in nine women will develop the disease at some point in their lives. Fortunately, however, scientists across the country also note that much progress has been made in controlling breast cancer. Better and earlier treatment has helped more and more women who have contracted breast cancer to survive the disease.
Today we continue to rely on basic research to identify and develop improved means of preventing, diagnosing, and treating breast cancer. However, the knowledge yielded by basic research is only as helpful as our willingness and our ability to use it. If women are to benefit from advances in the diagnosis of breast cancer -- and if physicians are to succeed with early intervention and treatment -- then regular screenings for the disease are vital. Some scientists estimate that mortality from breast cancer could be reduced by almost one-third if women obtained mammograms as often as recommended by the National Cancer Institute. Women between the ages of 40 and 50 should have a mammogram every 1 to 2 years, and women over the age of 50 should have a mammogram annually. Screening mammography helps doctors to detect breast cancer at its earliest and most treatable stages. Women whose breast cancer is detected early also have more options to choose from when making crucial decisions about treatment.
During the past decade, we have welcomed many advances in the treatment of breast cancer, and more are on the horizon. The National Cancer Institute alone is supporting more than 70 breast cancer treatment studies at hospitals across the country. Pharmaceutical companies, academic institutions, and other organizations are funding additional studies. This month, we recognize the many dedicated women and men who are using their knowledge and skills to enhance our understanding of breast cancer; we salute the business owners who have provided breast cancer screening for employees; and we applaud the courage of the many women who have made public their experiences in dealing with breast cancer, thereby helping other victims.
To enhance public awareness of breast cancer and the importance of regular screenings for the disease, the Congress, by Senate Joint Resolution 95, has designated the month of October 1991 as ''National Breast Cancer Awareness Month'' and has authorized and requested the President to issue a proclamation in observance of this month.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the month of October 1991 as National Breast Cancer Awareness Month. I also ask health care professionals, insurance providers, and employers -- indeed, all Americans -- to observe this month with appropriate programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-fourth day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6365
03 CFR Proclamation 6365 of October 25, 1991
Proclamation 6365 of October 25, 1991
03 CFR National Red Ribbon Week for a Drug-Free America, 1991
By the President of the United States of America
A Proclamation
Since we introduced our first National Drug Control Strategy in 1989, our Nation has made significant progress in the fight against illicit drug use. Through education and prevention programs in both the public and private sectors, we have taken important strides in reducing the demand for drugs. Indeed, recent figures from the National Institute on Drug Abuse show that, over an 18-month reporting period, overall drug use in the United States fell by slightly more than 10 percent. Cocaine use fell even more dramatically, by about 29 percent. Through more vigorous law enforcement and interdiction efforts, we have also lessened the deadly trade of drug traffickers. They are no match for a united, determined America.
However, while these and other trends are encouraging, we know that we are only just beginning to win the war against drugs. That is why I urge all Americans to join in observing this National Red Ribbon Week for a Drug-Free America. Through the widespread display of the red ribbon, let us demonstrate our refusal to tolerate illicit drug use and our resolve to build a safer, healthier future for the United States. Indeed, with this simple gesture, each of us can set a positive example for others while sending a clear and unequivocal message to the merchants of death who deal drugs -- a message that says ''This scourge will stop!''
The Congress, by House Joint Resolution 340, has designated the period beginning October 19, 1991, and ending October 27, 1991, as ''National Red Ribbon Week for a Drug-Free America'' and has authorized and requested the President to issue a proclamation in observance of this week.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the period of October 19 through October 27, 1991, as National Red Ribbon Week for a Drug-Free America. I urge all Americans to observe this week by supporting community substance abuse prevention efforts. I also encourage every American to wear a red ribbon during this week as an expression of his or her commitment to a healthy drug-free lifestyle.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-fifth day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's remarks on the National Red Ribbon campaign, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1394.)
03 CFR Proc. 6366
03 CFR Proclamation 6366 of October 25, 1991
Proclamation 6366 of October 25, 1991
03 CFR World Population Awareness Week, 1991
By the President of the United States of America
A Proclamation
Demographic trends among the world's population, which now surpasses 5.4 billion, cannot be overlooked as a factor when we examine important global issues such as economic development and environmental degradation. That is why we do well to observe World Population Awareness Week.
The United States has long recognized that population growth, in and of itself, is a neutral phenomenon. Indeed, as we stated during the 1984 International Conference on Population, because every human being represents hands to work, and not just ''another mouth to feed,'' population growth may be an asset or a liability depending on such factors as government economic policies, agricultural practices, and a nation's ability to put men and women to work. Rapid population growth is often occurring in those nations where economic stagnation, attributable in large part to the failure to adopt market-oriented policies, makes them less able to cope with economic and environmental challenges. For example, population growth may be viewed as a threat in countries where excessive government controls eliminate incentives for farmers and other workers to produce, where housing and health care facilities do not keep pace, or where precious natural resources are used without regard to future needs. Demographic change can also become problematic when a nation fails to anticipate or to respond to such trends as massive urban migration. However, because people are producers as well as consumers, population growth can also be a sign and a source of strength.
The United States has been a leader in efforts to focus attention on population issues -- particularly in less developed nations where population growth and related demands for land, public services, and other resources have exceeded their availability. At the Houston Economic Summit, the G-7 leaders stated that ''In a number of countries, sustainable development requires that population growth remain in some reasonable balance with expanding resources * * *. Improved educational opportunities for women and their greater integration into the economy can make important contributions to population stabilization programs.'' Currently, the United States, cognizant of the rights and responsibilities of individuals and families and respectful of religious and cultural values, provides nearly half of all international assistance that supports effective, safe, and voluntary family planning programs. This aid is but one part of a comprehensive economic development assistance program. We have also taken a strong position in the global community to address problems such as illiteracy, poverty, and environmental degradation. Indeed, recognizing the need to use precious natural resources wisely, we have worked to promote sustainable development. We have also consistently advocated the political and economic freedom vital to the advancement of individuals and nations.
Of course, no nation can achieve acceptable levels of productivity and progress without a healthy population. Thus, the United States will continue to support and to promote programs that are designed to improve maternal and child health. We will continue to support education and disease prevention, as well as programs that target the specific health problems of the poor -- problems that are often aggravated by such factors as poor sanitation and the lack of safe drinking water.
During World Population Awareness Week, we reflect on the importance of every one of these efforts and reaffirm our commitment to them. After all, by promoting the health of individuals and the strength and stability of families, we can enhance the well-being of entire nations.
The Congress, by Senate Joint Resolution 160, has designated the week beginning October 20, 1991, as ''World Population Awareness Week'' and has authorized and requested the President to issue a proclamation in observance of this week.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the week of October 20 through October 26, 1991, as World Population Awareness Week. I invite all Americans to observe this week with appropriate programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-fifth day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6367
03 CFR Proclamation 6367 of October 28, 1991
Proclamation 6367 of October 28, 1991
03 CFR Refugee Day, 1991
By the President of the United States of America
A Proclamation
The United States has long been both a symbol of hope and a source of substantial aid for refugees around the world. Through private voluntary organizations as well as government agencies, the American people have provided generous humanitarian assistance to millions of persons dislocated by natural disaster or by civil strife. We have also kept our doors open to people seeking refuge from tyranny and persecution, and we have encouraged other free nations to do likewise. By working hard to reap the rewards of freedom and opportunity, thousands of refugees have not only built new lives for themselves in the United States but also made invaluable contributions to our country.
While we have welcomed many refugees to these shores, the United States has also been working to overcome the conditions that force large numbers of people to flee their beloved homelands. We have consistently condemned political and religious persecution, and we have championed human rights while promoting the ideals of liberty, democratic pluralism, and tolerance. We have also worked to promote the peaceful resolution of conflicts and sustainable economic development in countries beset by poverty. Tragically, however, despite progress in these areas, the number of refugees worldwide has doubled during the past decade: according to the Department of State, their number has grown from 7,300,000 to an estimated 16,000,000. More than 11,000,000 of these refugees are concentrated in the Near East, in Asia, and in Africa. In all regions of the world, women and children continue to be the most seriously affected.
The international community must continue to uphold its fundamental responsibilities toward refugees. For our part, the United States remains firmly committed to assisting refugees and to contributing toward international relief efforts. The United States Government will continue to support the work of the United Nations High Commissioner for Refugees. Recognizing the value and the effectiveness of international cooperation on a wide range of global problems, we will also continue to urge other nations to increase their bilateral and multilateral assistance to refugees. Finally, because the refugee crisis is primarily the result of systematic government repression and bitter civil strife in some regions of the world, the United States will continue to promote respect for human rights and the rule of law, as well as the peaceful resolution of conflicts.
The demise of communism and the triumph of democratic movements around the world has brought about an era of promise and opportunity. Heartened by this knowledge, let us build on the progress we have made so that all peoples might enjoy the blessings of freedom and security in their respective homelands.
The Congress, by Senate Joint Resolution 192, has designated October 30 of each year as ''Refugee Day'' and has authorized and requested the President to issue a proclamation in observance of this day.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim October 30, 1991, as Refugee Day. I encourage all Americans to observe this day with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-eighth day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6368
03 CFR Proclamation 6368 of October 30, 1991
Proclamation 6368 of October 30, 1991
03 CFR National American Indian Heritage Month, 1991
By the President of the United States of America
A Proclamation
During our annual observance of National American Indian Heritage Month, we celebrate and study the rich history and folklore of America's native peoples. Long before this country was settled by immigrants from around the world, it was the home of generations of Native Americans. Each of the many different tribes that inhabited this vast country had a unique and vibrant culture, as well as its own system of social order. The first European settlers in the New World benefitted greatly from what they learned from this country's original inhabitants, who gave them a wealth of knowledge and skills in such areas as hunting, farming, and crafting tools. Today all Americans can continue to learn from the rich heritage of this country's native peoples.
By the time we reach adulthood, most of us are familiar with the legends of Pocahontas, Geronimo, Sacajawea, and Hiawatha. However, National American Indian Heritage Month provides an opportunity to learn more about the contributions and the achievements of countless other Native Americans. This month, we remember individuals such as Seattle, the chief and orator for whom the great city in Washington is named; Sequoyah, who taught thousands of his fellow Cherokee to read and write; and Ely Parker, the son of a Seneca leader, who served as an officer under General Ulysses S. Grant during the Civil War and became the first Indian to serve as Commissioner of Indian Affairs. Fifty years after the beginning of United States participation in World War II, we also honor the Navajo code-talkers, whose use of their native tongue and secret code words was never broken by enemy forces.
Every tribe of Native Americans is unique, and each has celebrated heroes of its own. Yet together generations of Native Americans have quietly strengthened and enriched the United States. American culture has been greatly influenced by the customs and traditions of this country's native peoples, and all of us can be grateful for their outstanding example of environmental stewardship.
This month, we also celebrate the unique government-to-government relationship that exists between Indian tribes and the Federal Government. That relationship has weathered various conflicts, inequities, and changes over the years, evolving into a vibrant partnership in which more than 500 tribal entities stand shoulder to shoulder with the other governmental units that form our Republic. We will continue to seek greater mutual understanding and trust in this relationship, as well as the further advancement of tribal self-government.
The Congress, by Senate Joint Resolution 172, has designated the month of November 1991 as ''National American Indian Heritage Month'' and has authorized and requested the President to issue a proclamation in observance of this occasion.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim November 1991 as National American Indian Heritage Month. I urge all Americans, as well as their elected representatives at the Federal, State, and local levels, to observe this month with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of October, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6369
03 CFR Proclamation 6369 of November 5, 1991
Proclamation 6369 of November 5, 1991
03 CFR National Hospice Month, 1991 and 1992
By the President of the United States of America
A Proclamation
Dedicated to serving terminally ill persons and their families, hospice programs have become an important part of our Nation's health care system. This month, we gratefully salute the many outstanding professionals and volunteers who provide hospice care.
By offering a positive and supportive environment, as well as high quality medical care, hospice programs enable terminally ill persons to live peacefully and comfortably in their final days. In so doing, these facilities and services not only reaffirm the inherent dignity and worth of every individual but also demonstrate reverence for human life in all its stages. Relying on the combined knowledge, skills, and compassion of a full team of professionals and volunteers -- including physicians, nurses, counselors, therapists, and members of the clergy -- hospice programs also help patients' families to cope with their bereavement.
As hospice personnel well know, caring for terminally ill persons can be physically and emotionally exhausting. Fortunately, the establishment of a permanent Medicare hospice benefit and an optional Medicaid hospice benefit has made it possible for more Americans to obtain needed medical and support services. In addition, concerned individuals and agencies in both the public and private sectors have maintained strong working relationships in the interest of hospice care benefits.
In recognition of the importance of hospice programs and in honor of the many dedicated professionals and volunteers who care for terminally ill persons, the Congress, by Public Law 102-121, has designated November 1991 and November 1992 as ''National Hospice Month'' and has authorized and requested the President to issue a proclamation in observance of these months.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim November 1991 and November 1992 as National Hospice Month. I encourage all Americans, as well as government officials and health care providers, to observe these months with appropriate programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this fifth day of November, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6370
03 CFR Proclamation 6370 of November 8, 1991
Proclamation 6370 of November 8, 1991
03 CFR National Poison Prevention Week, 1992
By the President of the United States of America
A Proclamation
For more than three decades, we Americans have observed National Poison Prevention Week as part of a concerted, nationwide campaign to reduce the number of accidental poisoning deaths among children. This annual observance, coupled with our year-round efforts in both the public and private sectors, has helped to save lives: during the past 30 years, the number of poisoning deaths among children under 5 years of age has declined markedly, from 450 in 1961 to 42 in 1988.
This ''success story'' certainly merits celebration. However, because the loss of even one child is more than any family can bear and more than our Nation should tolerate, we must continue to alert the public about the need for poison prevention.
Leading that effort today is the Poison Prevention Week Council, a coalition of 37 national organizations that are determined to protect the health and safety of our most vulnerable citizens. The Council, which embodies our public-private partnership for poison prevention, coordinates the annual observance of National Poison Prevention Week. It also distributes lifesaving information and encourages local poison control centers, pharmacies, health departments, and other agencies to conduct poison prevention programs. The United States Consumer Product Safety Commission, which each year provides a member to serve as Secretary of the Poison Prevention Week Council, helps to direct this important public health campaign to prevent childhood poisonings. It is a truly national effort, enlisting the help of parents, health professionals, educators, and government officials, as well as members of industry and the media.
Poison prevention awareness has saved lives, but there is more to do. The American Association of Poison Control Centers reports that almost 1 million children are exposed each year to potentially poisonous medicines or household chemicals. We must continue to warn parents, grandparents, and other adults about the threat of childhood poisoning and encourage them to adopt safety measures. We can take a simple yet vital step to prevent accidental poisonings by using child-resistant closures and by keeping medicines and household chemicals out of the reach of children.
To encourage all Americans to learn more about the dangers of accidental poisonings and to take more preventative measures, the Congress, by a joint resolution approved September 26, 1961 (75 Stat. 681), has authorized and requested the President to issue a proclamation designating the third week of March of each year as National Poison Prevention Week.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the week beginning March 15, 1992, as National Poison Prevention Week. I call upon all Americans to observe this week by participating in appropriate programs and activities and by learning how to prevent accidental poisonings among children.
IN WITNESS WHEREOF, I have hereunto set my hand this eighth day of November, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6371
03 CFR Proclamation 6371 of November 12, 1991
Proclamation 6371 of November 12, 1991
03 CFR National Women Veterans Recognition Week, 1991
By the President of the United States of America
A Proclamation
Earlier this year, some 35,000 American service women played highly visible roles in ensuring the success of our military operations in the Persian Gulf. While we celebrate their outstanding contributions -- and those of their counterparts here at home and at bases around the world -- we do well to remember that women have been an invaluable part of the United States Armed Forces for generations.
Since the earliest days of our Republic, women have written many important pages in American military history, often accepting great risks and sacrifices for the sake of others. During the Revolutionary War and later during the Civil War, thousands of women provided compassionate aid to sick and wounded soldiers. Many other women served as scouts and couriers, and a number of historical accounts relate the stories of women who disguised themselves as men in order to join in the fighting. During the Spanish American War, women nurses waged a valiant battle against an epidemic of typhoid fever in Army camps. Their work so impressed the Congress that it established the Nurses Corps as a permanent auxiliary of the Army. By World War I, the Navy and the Coast Guard were also accepting women volunteers.
When World War II required the total commitment of this Nation's will and resources, women achieved full military status in the Women's Army Corps and in the Navy's WAVES. The Coast Guard and the Marines followed suit in accepting women enlistees, and the Women's Air Force Service Pilots was formed to ferry military aircraft.
During the half century since World War II, women have continued to be an invaluable part of our Nation's armed forces. From Korea and Vietnam to places such as Panama and the Persian Gulf, American service women have consistently demonstrated the extraordinary courage, patriotism, and skill that we have come to expect of this country's military personnel. Some have been wounded, and others have made the ultimate sacrifice, in the line of duty.
Over the years, the number of women in our armed forces has steadily increased. Today nearly one and one quarter million women stand among our Nation's veterans. This week, we proudly and gratefully salute each of them.
In recognition of the many contributions that women veterans have made to our country, the Congress, by Senate Joint Resolution 145, has designated the week beginning November 10, 1991, as ''National Women Veterans Recognition Week'' and has authorized and requested the President to issue a proclamation in observance of this week.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the week of November 10 through November 16, 1991, as National Women Veterans Recognition Week. I urge all Americans to observe this week with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twelfth day of November, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's address to the nation commemorating Veterans Day, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1617). For the President's remarks at the Tomb of the Unknown Soldier, see p. 1626.
03 CFR Proc. 6372
03 CFR Proclamation 6372 of November 12, 1991
Proclamation 6372 of November 12, 1991
03 CFR National Alzheimer's Disease Month, 1991 and 1992
By the President of the United States of America
A Proclamation
Advances in science and medicine have given millions of Americans the opportunity to enjoy longer, healthier lives. Older Americans now constitute a growing percentage of our Nation's population, and, together, they represent a rich source of knowledge and insight for younger generations. By providing senior citizens with opportunities to share their wisdom and experience, we not only strengthen and enrich this country but also affirm the inherent dignity and worth of every human being, regardless of his or her age.
Today, more and more employers and other Americans are recognizing the enormous talent and potential of senior citizens. One of the greatest threats to fulfilling that potential, however, comes from Alzheimer's disease.
Alzheimer's is a debilitating brain disease that, over a period of years, robs its victims of their memory and intellect, their health, their independence, and eventually their lives. Alzheimer's disease also disrupts the lives of thousands of Americans who must endure the physical, emotional, and financial strains of caring for an affected parent, spouse or sibling.
Fortunately, the families of Alzheimer's patients are not alone in their struggle with this terrible disease. In communities across the country, health care providers, social workers, and other concerned professionals and volunteers have joined forces to promote public awareness of Alzheimer's and to help families that are affected by it. Federal, State, and local governments are working to improve the delivery of services for people with Alzheimer's, and researchers in both the public and private sectors are striving to learn how we can prevent and eventually cure the disease. Scientists and physicians are also developing new methods to manage symptoms of Alzheimer's, as well as facilities that are better equipped for the special needs of people with the disease and related disorders.
Our ultimate goal, however, must be to eliminate the need for such treatments and facilities. Accordingly, under the leadership of the National Institute on Aging, the Federal Government will continue to conduct and support biomedical research on Alzheimer's disease. During the past few years, we have learned much about the basic processes of Alzheimer's and drawn closer to identifying its causes; we will now seek further progress in these areas, and we will place special emphasis on the discovery and development of therapeutic drugs. Such efforts will be crucial to finding ways of treating and preventing Alzheimer's disease.
As an expression of our Nation's commitment to protecting the health of all older Americans, the Congress, by Senate Joint Resolution 36, has designated November 1991 and November 1992 as ''National Alzheimer's Disease Month'' and has authorized and requested the President to issue a proclamation in observance of these months.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim November 1991 and November 1992 as National Alzheimer's Disease Month. I encourage all Americans to observe these months with appropriate programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twelfth day of November, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6373
03 CFR Proclamation 6373 of November 12, 1991
Proclamation 6373 of November 12, 1991
03 CFR Hire a Veteran Week, 1991
By the President of the United States of America
A Proclamation
During the past year, America's service men and women demonstrated, once again, the extraordinarily high standards of professionalism and skill that we have come to expect of the United States Armed Forces. Working together with remarkable precision and speed, they ensured the resounding success of our military operations in the Persian Gulf -- from the massive deployments of Operations Desert Shield and Desert Storm to the large-scale humanitarian relief efforts of Operation Provide Comfort and Operation Sea Angel. This month, as we salute our Persian Gulf veterans and, indeed, all those who have served in our Nation's armed forces, we also recognize the wealth of knowledge and experience that they have to offer as members of the civilian work force.
From the beginning of Operation Desert Shield, the American military showed that it is capable of planning and executing tremendously complex and sensitive operations. Our success in the Persian Gulf highlighted not only the superiority of American technology but also our troops' ability to employ these remarkable tools. Moreover, the conflict in the Gulf reminded all Americans that we can rely on our citizen-soldiers, the Reservists and National Guard members who responded so well when called upon to stand shoulder-to-shoulder with their comrades in the regular components of the active duty military forces. We also saw that the American employer is prepared to stand behind the employee who is called to active military service and to safeguard that individual's employment rights while he or she is away.
This month, as we honor our Nation's veterans, let us also recognize the value of recruiting and hiring these Americans in the workplace. Our veterans have developed special knowledge and skills through their military service, and they clearly possess the drive and the discipline that are needed to help keep American business competitive in the international arena.
The Congress, by House Joint Resolution 280, has designated the week of November 10 through November 16, 1991, as ''Hire a Veteran Week'' and has authorized and requested the President to issue a proclamation in observance of this week.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the week of November 10 through November 16, 1991, as Hire a Veteran Week. I encourage all Americans -- in particular, employers, labor leaders, and public officials -- to support the campaign to increase the employment of men and women who have served our country in the armed forces.
IN WITNESS WHEREOF, I have hereunto set my hand this twelfth day of November, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's remarks commemorating Veterans Day, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1617). For the President's remarks at the tomb of the Unknown Soldier, see p. 1626.
03 CFR Proc. 6374
03 CFR Proclamation 6374 of November 13, 1991
Proclamation 6374 of November 13, 1991
03 CFR National Red Ribbon Month, 1991
By the President of the United States of America
A Proclamation
During the month of November, we Americans pause to count our many blessings -- including the love of family and friends, the joy of freedom and security, and, of course, the gift of life itself. Thus, the holiday season that traditionally begins on Thanksgiving is a very special time of celebration and renewal.
Tragically, however, this time of peace and joy will become a time of mourning for far too many American families as a result of alcohol-related traffic accidents. Countless hopes and dreams will be destroyed this holiday season when drinking turns deadly behind the wheel.
Drunk driving often makes headlines during the holidays, but we must remember that this scourge is a year-round public health problem. Indeed, the Department of Transportation reports that traffic accidents remain the single leading cause of death for Americans between the ages of 5 and 32, and that almost half of these fatalities involve alcohol. In 1990 alone, more than 22,000 people died in alcohol-related motor vehicle accidents -- an average of one person every 24 minutes. Each year, another 345,000 persons are injured in drunk driving incidents.
The toll that alcohol-related accidents takes on Americans between the ages of 16 and 20 is especially alarming. Although in most States it is illegal for minors to purchase alcoholic beverages in any form, nearly half of all traffic fatalities in this age group stem from alcohol-related accidents. In 1990 alone, the lives of some 3,361 young men and women -- potential scientists, physicians, teachers, and parents -- were violently cut short.
The news is not all bad, however. In recent years, we have made encouraging progress in our efforts to stop drunk and drugged driving. According to the National Highway Traffic Safety Administration (NHTSA), alcohol-related fatalities among all adults have declined approximately 13 percent since 1982. The NHTSA also reports that, since 1984, when the Congress called on all States to raise their minimum legal drinking age to 21, alcohol-related deaths among youth have likewise dropped. Indeed, the law has saved the lives of about 1,000 young Americans between the ages of 16 and 20 every year.
This progress has been made possible by a combination of tougher laws at the Federal, State, and local levels and by concerted public awareness campaigns in both the public and private sectors. Nevertheless, we still have much work to do. Accordingly, our National Health Objectives for the year 2000 include targets for reducing the number of alcohol-related motor vehicle fatalities. We remain firmly resolved to reduce underage drinking, and we will continue to seek both the enactment and the enforcement of tougher laws against driving under the influence of alcohol or drugs.
Millions of concerned individuals across the United States have rallied in support of these and other measures against drunk driving. This month, the 3,000,000 members of Mothers Against Drunk Driving (MADD) will launch a major public awareness campaign by asking Americans to ''Tie One on for Safety'' during the upcoming holiday season. Members of MADD will distribute more than 90,000,000 red ribbons nationwide to remind all those who might get behind the wheel to think before they drink.
To help heighten public awareness of the dangers of drinking and driving, the Congress, by Senate Joint Resolution 188, has designated November 1991 as ''National Red Ribbon Month'' and has authorized and requested the President to issue a proclamation in observance of this month.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim November 1991 as National Red Ribbon Month. I urge all Americans to observe this month with appropriate programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this thirteenth day of November, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's remarks on the National Red Ribbon campaign, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1394.)
03 CFR Proc. 6375
03 CFR Proclamation 6375 of November 14, 1991
Proclamation 6375 of November 14, 1991
03 CFR Dutch-American Heritage Day, 1991
By the President of the United States of America
A Proclamation
On November 16, 1776, a small American warship, the ANDREW DORIA, sailed into the harbor of the tiny Dutch island of St. Eustatius in the West Indies. Only 4 months before, the United States had declared its independence from Great Britain. The American crew was delighted when the Governor of the island, Johannes de Graaf, ordered that his fort's cannons be fired in a friendly salute. The first ever given by a foreign power to the flag of the United States, it was a risky and courageous act. Indeed, angered by Dutch trading of contraband with the rebellious colonies, the British seized the island a few years later. De Graaf's welcoming salute was also a sign of respect, and today it continues to symbolize the deep ties of friendship that exist between the United States and The Netherlands.
After more than 200 years, the bonds between the United States and The Netherlands remain strong. Our diplomatic ties, in fact, constitute one of the longest unbroken diplomatic relationships with any foreign country.
Fifty years ago, during the Second World War, Dutch and American servicemen fought side by side to defend the universal cause of freedom and democracy. As NATO allies, we have continued to stand together to keep the transatlantic partnership strong and to maintain the peace and security of Europe. In the Persian Gulf, we joined as coalition partners to repel aggression and to uphold the rule of law.
While the ties between the United States and The Netherlands have been tested by time and by the crucible of armed conflict, the Dutch-American heritage is even older than our official relationship. Indeed, it dates back to the early 17th century, when the Dutch West India Company founded New Netherland and its main settlements, New Amsterdam and Fort Orange -- better known today as New York City and Albany.
From the earliest days of our Republic, men and women of Dutch ancestry have made important contributions to American history and culture. The influence of our Dutch ancestors can still be seen not only in New York's Hudson River Valley but also in Pennsylvania along the Schuylkill River and in communities like Holland, Michigan, where many people trace their roots to settlers from The Netherlands. Generations of Dutch immigrants have enriched the United States with the unique customs and traditions of their ancestral homeland -- a country that has given the world great artists, celebrated philosophers, and leaders of international business.
On this occasion, we also remember many celebrated American leaders of Dutch descent. Three Presidents, Martin Van Buren, Theodore Roosevelt, and Franklin D. Roosevelt, came from Dutch stock. Arthur Vandenberg, who after World War II played a crucial role in the development of our bipartisan foreign policy, the strategy of containment, and the establishment of NATO, also traced his roots to The Netherlands.
Our Dutch heritage is seen not only in our people but also in our experience as a Nation. Our traditions of religious freedom and tolerance, for example, have spiritual and legal roots among such early settlers as the English Pilgrims and the French Huguenots, who first found refuge from persecution in Holland. The Dutch Republic was also among those systems of government that inspired our Nation's Founders as they shaped our Constitution.
In celebration of the long-standing friendship that exists between the United States and The Netherlands, and in recognition of the many contributions that Dutch-Americans have made to our country, the Congress, by House Joint Resolution 177, has designated November 16, 1991, as ''Dutch-American Heritage Day'' and has authorized and requested the President to issue a proclamation in observance of this day.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim November 16, 1991, as Dutch-American Heritage Day. I encourage all Americans to observe this day with appropriate ceremonies and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this fourteenth day of November, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6376
03 CFR Proclamation 6376 of November 15, 1991
Proclamation 6376 of November 15, 1991
03 CFR National Philanthropy Day, 1991
By the President of the United States of America
A Proclamation
Public philanthropy has long been a hallmark of American life. The earliest settlers in this country were people of great faith and conviction, and they well understood the Biblical injunction to extend kindness and hospitality to others. Yet the spirit of voluntary association and giving was not only a virtue but also a practical necessity for those residing on the frontier.
Today, even with the best efforts of Federal, State, and local government, voluntary service remains essential to solving our Nation's most serious social problems. Accordingly, concerned and generous Americans are engaged in voluntary activities that range from providing job training and employment for the homeless to protecting the environment, preventing disease, assisting parents of needy families, and encouraging young people to stay in school.
Last year, Americans contributed more than $100 billion in support of charitable organizations and activities. However, public philanthropy is not just about money. Millions of Americans -- people of every age, race, and walk of life -- give of their time and their talents in voluntary community service. These ''Points of Light'' are helping to supply food and clothing for the needy; they are promoting important advances in biomedical research; and they are providing vital support to schools, churches, hospitals, museums, and a host of other institutions. These Americans are demonstrating that you don't have to be wealthy to be a philanthropist, you just have to care.
In grateful recognition of all those who conduct and support the work of our Nation's charitable organizations, the Congress, by Senate Joint Resolution 96, has designated November 19, 1991, as ''National Philanthropy Day'' and has authorized and requested the President to issue a proclamation in observance of this day.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim November 19, 1991, as National Philanthropy Day. I encourage the people of the United States to observe this day with appropriate programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this fifteenth day of November, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6377
03 CFR Proclamation 6377 of November 20, 1991
Proclamation 6377 of November 20, 1991
03 CFR National Farm-City Week, 1991
By the President of the United States of America
A Proclamation
Each Thanksgiving, when we Americans count our many blessings, among the first to come to mind is the abundance of high-quality foods that we enjoy. The quantity and variety of goods that fill our Nation's grocery stores are unparalleled -- a shining testament to the ingenuity and productivity of the American farmer. Yet while U.S. farmers are the most enterprising and efficient in the world, millions of other people in both urban and rural communities play important roles in the production and distribution of U.S. agricultural goods. During National Farm-City Week, we salute all of these hardworking Americans.
Our Nation's farmers are assisted in their efforts by millions of people, many of whom work in urban areas -- researchers who develop improved methods and tools for farming; meteorologists who chart climatic conditions and weather patterns; and the manufacturers and suppliers of equipment, seeds, and fertilizers. The miracle of American farming is also made possible by those who transport and process raw agricultural goods; by government inspectors who help ensure their quality; and by wholesalers who distribute and retailers who sell finished farm products to consumers. The concerted efforts of all of these Americans have enabled the United States to make the most of its God-given resources.
Today America's farms and cities are linked more closely than ever before, as more and more farmers supply not only food but also raw materials for industrial use. Advances in science and technology have enabled manufacturers to convert agricultural commodities into biodegradable plastics, alternative fuels, and fuel additives, as well as printing ink and newsprint. Industrial use of farm products is creating new opportunities for American agriculture to diversify and to enhance its productivity while boosting its competitive position in world commerce.
American agriculture has long been a source of strength and pride for the United States, and we owe a tremendous debt of gratitude to all those who help bring forth food and fiber from the rich, fertile land with which we have been blessed. Thus, it is fitting that our celebration of National Farm-City Week take place during the 7-day period that ends on Thanksgiving.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim the week of November 22 through November 28, 1991, as National Farm-City Week. I encourage all Americans, in rural and urban communities alike, to join in recognizing the accomplishments of our farmers and all those hardworking individuals who cooperate in producing the abundance of agricultural goods that strengthen and enrich the United States.
IN WITNESS WHEREOF, I have hereunto set my hand this twentieth day of November, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6378
03 CFR Proclamation 6378 of November 20, 1991
Proclamation 6378 of November 20, 1991
03 CFR National Family Week, 1991 and 1992
By the President of the United States of America
A Proclamation
When we count our blessings, most of us note with special gratitude the love and the support of our families. Thus, it is fitting that our celebration of National Family Week coincide with our traditional observance of Thanksgiving.
Family love brings light and warmth to our homes; it gives us strength when times are tough; and it makes good times even better by enabling us to share our joys with others. Through our experience as part of a family, we gain a sense of identity and purpose. Indeed, when we recall the generations who have gone before us, we are reminded of our personal links to the past and of our own place in history. When we think about generations to come, we are reminded of our obligation to help make this a better world.
Our ability to help make this a better world depends, in large part, on the kind of environment we create in our homes. Because a child's family life has such a powerful influence on the development of his or her personality and character, and because the family provides a model after which all other human relationships are fashioned, those of us who are parents and grandparents must ensure that the examples we set are positive ones. The daily course of our family lives should offer younger generations clear lessons about faith and duty, personal responsibility, and respect and concern for others.
By definition, a family is a group of individuals who are related by blood, marriage, or adoption and who are united by their love and their lifelong commitment to one another. The family is the basic unit of society, and its well-being is vital to the success of our communities and Nation. In recent years, however, problems such as crime, drug abuse, child abuse, and teenage pregnancy have signalled a breakdown in traditional family life and values. While parents have primary responsibility for the well-being of their children, and while no arm of the state can replicate the divinely ordained embrace of the family, government can and should help preserve and support this institution and do nothing to harm it. America's future depends on it.
This week, as we acknowledge the blessings of family life and the importance of stable, loving families to the life of our Nation, let us reaffirm our commitment to policies and programs that affirm the rights of parents and protect the interests of children. Let us also resolve to ensure that our own families are communities in which each member is respected and cherished.
The Congress, by Public Law 102-112, has designated the weeks beginning November 24, 1991, and November 22, 1992, as ''National Family Week'' and has authorized and requested the President to issue a proclamation in observance of this week.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the week of November 24 through November 30, 1991, and the week of November 22 through November 28, 1992, as National Family Week. I call upon all Americans to observe these weeks with appropriate programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twentieth day of November, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6379
03 CFR Proclamation 6379 of November 22, 1991
Proclamation 6379 of November 22, 1991
03 CFR National Military Families Recognition Day, 1991
By the President of the United States of America
A Proclamation
We Americans take great pride in the vigilance, courage, and patriotism of the men and women who serve in our United States Armed Forces. Yet, in large part, the extraordinary spirit of our Nation's service members reflects that of the families who stand behind them. Thus, while we salute our troops for their outstanding efforts to preserve peace and to protect the vital interests of the United States, on this occasion we honor in a special way our Nation's military families. Each day, these Americans share in the hard work of freedom.
The military family is a very large and special one. It includes tens of thousands of wives, husbands, parents, siblings, and children. Located in every State and in countries around the globe, these families are the heart of the American defense community. They have stood together in times of trial and uncertainty; they have opened their arms to newcomers and to neighbors in need; and they have offered steady moral support to our forces stationed far from home. Brought together by the service of their loved ones, these families embody the love, faith, and devotion to freedom that have sustained our men and women in uniform, even through this Nation's darkest hours.
Whether they live on bases here at home or at posts in Europe, the Pacific, and elsewhere, military families are united by common experience -- including the experience of hardship and sacrifice. For example, reassignments often require service members and their dependents to move, leaving behind schools, friends, and jobs. Although such moves may consist of relocation to unfamiliar towns or even to foreign lands, military families weather the challenges with perseverance and pride.
Because they recognize the risks that their loved ones have accepted in the line of duty, and because a service member's assignments can entail lengthy absences from home, military families also cope with long hours of separation and worry. During the past year, our Nation was reminded of all that military families have endured over the years when more than 500,000 service personnel were activated, both here and abroad, to take part in Operations Desert Shield and Desert Storm, as well as during U.S. humanitarian efforts in Operations Provide Comfort in northern Iraq and Sea Angel in Bangladesh. The stoicism and the patriotism displayed by America's military families during the conflict in the Persian Gulf uplifted and inspired our entire country. More recently, hundreds of American military families responded with exemplary courage and composure when they were evacuated from their homes in the Philippines following the eruption of Mount Pinatubo.
Throughout our Nation's history, military families have demonstrated their pride in service and their profound faith in the principles on which the United States is founded. Today we assure these Americans of our abiding gratitude, respect, and support.
The Congress, by House Joint Resolution 215, has designated November 25, 1991, as ''National Military Families Recognition Day'' and has authorized the President to issue a proclamation in observance of this day.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim November 25, 1991, as National Military Families Recognition Day. I urge all Americans to join in honoring America's military families on that day. Finally, I call upon Federal, State, and local officials, as well as concerned private organizations, to observe the day with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-second day of November, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6380
03 CFR Proclamation 6380 of November 25, 1991
Proclamation 6380 of November 25, 1991
03 CFR Thanksgiving Day, 1991
By the President of the United States of America
A Proclamation
From the moment it was ''conceived in liberty, and dedicated to the proposition that all men are created equal,'' our Nation has enjoyed the mercy and protection of Almighty God. Thus, when we join with family and friends on Thanksgiving, we celebrate not only the many blessings that we have received as individuals -- including the gift of life itself -- but also our great fortune as one Nation under God. On this occasion, Americans of every race, creed, and walk of life are united by a profound sense of gratitude and duty.
As we continue the Thanksgiving tradition, a tradition cherished by every generation of Americans, we reflect in a special way on the blessings of the past year. When this Nation and its coalition partners took up arms in a last-resort effort to repel aggression in the Persian Gulf, we were spared the terrible consequences of a long and protracted struggle. Indeed, the millions of people who prayed for a quick end to the fighting saw those prayers answered with a swiftness and certainty that exceeded all expectations. During the past year, we have also witnessed the demise of communism and welcomed millions of courageous people into the community of free nations.
Of course, as we give thanks for these and other developments, we also remember the less fortunate -- those who do not yet share in the promise of freedom; those who do not know the comfort of peace and security; and those whose tables do not reflect prosperity and plenty.
Time and again, Scripture describes our Creator's special love for the poor. As the Psalmist wrote, ''He pours contempt upon princes . . . yet sets the poor on high from affliction.'' In this great Nation, we have a special obligation to care for the ill and the destitute. Therefore, recalling that much will be asked of those to whom much has been given, let us resolve to make food drives and other forms of charity an increasingly important part of our Thanksgiving tradition.
On this occasion, as we count our blessings and reach out to help the less fortunate, we also do well to remember that, in many ways, the poorest nations are those who neither recognize nor revere what our Founders called ''the laws of Nature and of Nature's God.'' Indeed, we have seen totalitarian regimes impoverish entire peoples, not just economically, but spiritually, by denigrating religion and by denying the inherent dignity and worth of individuals. The moral bankruptcy of communism should remind every free nation of the dangers of cynicism and materialism.
Similarly, can any individual be truly rich or truly satisfied if he or she has not discovered the rewards of service to one's fellowman? Since most of us first experience the love of God through the goodness and generosity of others, what better gift could we give our children than a positive example?
Finally, as we gather with family and friends on Thanksgiving, we know that our greatest blessings are not necessarily material ones. Indeed, perhaps the best thing about this occasion is that it reminds us that God loves each and every one of us. Like a faithful and loving parent, He always stands ready to comfort, guide, and forgive. That is our real cause for Thanksgiving, today and every day of our lives.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim Thursday, November 28, 1991, as a National Day of Thanksgiving. I urge all Americans to gather together in their homes and in places of worship on that day to offer thanks to Almighty God for the many blessings that He has bestowed upon us as individuals and as a Nation.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-fifth day of November, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's remarks on Thanksgiving, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1713). For his Thanksgiving address to the nation, see p. 1736.
03 CFR Proc. 6381
03 CFR Proclamation 6381 of November 25, 1991
Proclamation 6381 of November 25, 1991
03 CFR National Accessible Housing Month, 1991
By the President of the United States of America
A Proclamation
We Americans cherish the many blessings that we enjoy in this land of freedom and opportunity -- including our ability to decide where we live and work. During much of our Nation's history, however, that prerogative has frequently been denied to persons with disabilities. For example, in the past, it has often been difficult for a person who uses a wheelchair to find a home where doorways, baths, and other structural features can accommodate his or her needs. Even now, when an elderly American can no longer climb stairs, he or she may face the emotionally and financially difficult task of finding a suitable single-story dwelling.
Fortunately, all that is changing. In recent years, we have taken important steps to promote equal opportunities for people with disabilities. The Fair Housing Amendments Act, which prohibits discrimination in housing, went into effect in 1989. This legislation provides Americans with disabilities the opportunity to choose their places of residence with the same degree of freedom as other citizens.
The enactment of the historic Americans with Disabilities Act of 1990 offered additional evidence of our commitment to removing the physical, attitudinal, and statutory barriers that have too often prevented these individuals from enjoying the same opportunities as other Americans. This legislation, the world's first comprehensive declaration of equality for persons with disabilities, prohibits discrimination in employment, transportation, and public accommodations.
Clearly, our Nation has recognized its obligation to become more conscious of, and responsive to, the environmental and structural obstacles that persons with disabilities face on a daily basis. However, we also have a practical interest in doing so: indeed, it is estimated that 70 percent of all Americans will, at some time in their lives, have a temporary or permanent disability.
While the Federal Government has been leading efforts to ensure equal opportunity for persons with disabilities, the public and private sectors share responsibility for promoting the full integration of these Americans into the social and economic mainstream. It is heartening to note that thousands of concerned individuals and organizations have been working together to meet that responsibility. For example, a number of private sector entities have designed a public education campaign that answers questions about barrier-free home designs, which allow easy entry and movement throughout the house. On March 6, 1991, the Department of Housing and Urban Development published ''Fair Housing Accessibility Guidelines,'' which instruct builders and developers on how to comply with the accessibility requirements of the Fair Housing Amendments Act. Public and private sector efforts such as these are not only helping to create more accessible housing for persons with disabilities but also facilitating their full participation in the social and economic life of our country.
The Congress, by Senate Joint Resolution 184, has designated the month of November 1991 as ''National Accessible Housing Month'' and has authorized and requested the President to issue a proclamation in observance of this month.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby designate November 1991 as National Accessible Housing Month. I call upon local and State governments, appropriate Federal agencies, and the people of the United States to observe this month with appropriate programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-fifth day of November, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6382
03 CFR Proclamation 6382 of November 25, 1991
Proclamation 6382 of November 25, 1991
03 CFR National Family Caregivers Week, 1991 and 1992
By the President of the United States of America
A Proclamation
Each day millions of Americans provide nursing care and other forms of assistance to relatives who are incapacitated by age, illness, or disability. These family caregivers not only help to support loved ones who might otherwise be forced to live in an institutional setting by also exemplify the kind of unconditional love and commitment that is the essence of family life.
Family caregivers perform their various tasks freely and without compensation -- and often at considerable sacrifice to themselves. Many of these individuals assist relatives in need while juggling the traditional demands of home, family, and career. The Department of Health and Human Services reports that nearly one-third of our Nation's family caregivers are older Americans -- the spouses and siblings of the frail elderly. Statistics, however, cannot fully measure the physical, emotional, and financial costs that are incurred by family caregivers as they help with nursing care, transportation, shopping, cooking, household maintenance, and a host of other needs.
As a Nation, we owe a great debt of gratitude to family caregivers. These unsung heroes and heroines deserve our respect and our support. This week, let us recognize the importance of respite and day care services to family caregivers, and let us reaffirm our commitment to the American tradition of neighbor helping neighbor. Let us also resolve to work together, throughout the public and private sectors, to ensure that this Nation's senior citizens have the opportunities and the services that they need to live with dignity and security in the comfort to their own homes.
The Congress, by House Joint Resolution 125, has designated the weeks of November 24 through November 30, 1991, and November 22 through November 28, 1992, as ''National Family Caregivers Week'' and has authorized and requested the President to issue a proclamation in observance of these weeks.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the weeks of November 24 through November 30, 1991, and November 22 through November 28, 1992, as National Family Caregivers Week. I urge all Americans to observe these weeks with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-fifth day of November, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6383
03 CFR Proclamation 6383 of November 27, 1991
Proclamation 6383 of November 27, 1991
03 CFR National Adoption Week, 1991
By the President of the United States of America
A Proclamation
Adoption is a wonderful act of love, generosity, and lifelong commitment -- virtues that have always gone hand in hand with building a family. This week, we acknowledge the many rewards that adoption holds for children, for parents, and for our Nation.
More than 50,000 American children are adopted each year. These youngsters are as eager to give love as they are to gain permanent homes and families of their own. Indeed, any adult who has been blessed with an adopted child or grandchild knows what tremendous affection and joy that youngster brings to the lives of others.
Although the actual process may include moments of anticipation, frustration, and worry, adoption benefits each of the parties involved -- including the biological mother who, for whatever reason, cannot keep her child and courageously decides to give him or her the chance to enjoy life in a secure, loving environment. Because strong, loving families are the foundation of stable, caring communities and nations, adoption also enriches our entire country.
Tragically, however, despite the many benefits of adoption, thousands of children continue to wait. Approximately 36,000 children in the United States who are legally available for adoption are living in foster care or in institutions. Many of these children are characterized as special needs children: older children and children with disabilities, children with siblings who need to be adopted by the same family, or members of a minority group. Regardless of the individual needs they may have, all of these children long for the kind of permanent homes and loving families that most of us have always been able to take for granted.
As a Nation, we have begun to dismantle legal, financial, and attitudinal barriers to adoption. This progress has been made possible, in large part, by the vigorous efforts of concerned public officials, parents, social workers, attorneys, counselors, members of the clergy, and others. However, because every child deserves the special love and support that only a family can provide, we still have much work to do. We must continue to promote public awareness of adoption and to find ways of bringing prospective parents together with the thousands of children who continue to wait. We must also continue to offer encouragement and assistance to those courageous women who, despite the pressures of a crisis pregnancy, reject abortion and choose life for their unborn children.
The Congress, by Senate Joint Resolution 207, has designated the week of November 24 through November 30, 1991, as ''National Adoption Week'' and has authorized and requested the President to issue a proclamation in observance of this occasion.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the week of November 24 through November 30, 1991, as National Adoption Week. I urge all Americans to observe this week with appropriate programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this 27 day of November, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEIRGE BUSH
Editorial note: For the President's remarks on signing this proclamation, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1733).
03 CFR Proc. 6384
03 CFR Proclamation 6384 of December 2, 1991
Proclamation 6384 of December 2, 1991
03 CFR Geography Awareness Week, 1991 and 1992
By the President of the United States of America
A Proclamation
Coaches know that, before a winning team can prove itself on the field, each of its members must master the ''fundamentals.'' The same principle applies to education; thus, our efforts to restore excellence in our schools include renewed emphasis on the basics. One of the key aims of AMERICA 2000, our strategy to achieve our National Education Goals, is to ensure that this country's students demonstrate competence in five core subject areas: mathematics, science, English, history, and geography. The study of geography, which focuses on people and their physical surroundings, not only goes hand in hand with the study of history and science but also gives us a better understanding of current world events.
Geography has been a determining factor in the social, economic, and political development of every nation on Earth; indeed, it is impossible to understand history without taking into account the location, natural resources, and other geographic characteristics of nations. When we study the geography of our 50 States, as well as the relationship of America to the world as a whole, we gain a better understanding of our Nation's history and development -- and a deeper appreciation of its diversity and splendor.
While most geographic features of our Nation and the planet have taken shape over thousands of years, the study of geography gives us more than insight into the past; it also equips us with knowledge that we need to understand and to participate in the world of today. As advances in technology bring the world closer together, and as democratic reforms in many nations create new opportunities for international trade and travel, the mastery of geography becomes increasingly important. If the United States is to remain a leader in our rapidly changing world, then our citizens must be able to recognize the location and the significance of events abroad. If we are to continue to enjoy success in the complex realms of foreign policy and international commerce, then we must also be familiar with the languages, customs, and physical circumstances of our neighbors around the globe.
Despite the importance of geography, and despite the fact that it can be both fascinating and fun for students, too many Americans do not have basic knowledge in this field. Too many schoolchildren -- and too many adults -- are unable to locate major cities, countries, or even entire continents on a globe. Many are unaware of the advantages of seaports and rivers to a nation's security and commerce, and some Americans are even unable to locate their own communities on a map.
By working together to achieve our National Education Goals, we can change this intolerable situation. During Geography Awareness Week, let us reaffirm our determination to make the United States a Nation of students. As parents and as teachers, let us help our children to recognize the importance of geography and other basic subjects, and by word, deed, and example, let us introduce them to the joys of lifelong learning.
In recognition of the importance of the study and mastery of geography, the Congress, by House Joint Resolution 201, has designated the week of December 1 through December 7, 1991, and the week of November 15 through November 21, 1992, each as ''Geography Awareness Week'' and has authorized and requested the President to issue a proclamation in observance of these occasions.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the week beginning December 1, 1991, and the week beginning November 15, 1992, as Geography Awareness Week. I call upon all Americans to observe these occasions with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this second day of December, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6385
03 CFR Proclamation 6385 of December 2, 1991
Proclamation 6385 of December 2, 1991
03 CFR National Home Care Week, 1991 and 1992
By the President of the United States of America
A Proclamation
Each day, thousands of hardworking men and women bring vital home health care services to Americans who are incapacitated by illness, age, or disability. Working in association with more than 12,000 home care agencies across the country, these dedicated professionals and volunteers play an important part in our Nation's total health care system. This week, we honor them for their many contributions.
The administrators and employees of home health care agencies work closely with government agencies and with concerned private organizations, including hospitals, to give patients a welcome alternative to institutionalized care. Home care not only emphasizes the dignity, comfort, and independence of patients but also affirms the importance of family love and support to their well-being. By enabling clients to prevent or to postpone costly hospital stays and other forms of inpatient care, home care has often proved to be economical, as well.
Thousands of nurses, therapists, social workers, and others provide our Nation's home care services, and each of them deserves our recognition and thanks. Their professionalism and compassion are making a real difference in the lives of Americans in need.
To increase public awareness of and support for our Nation's home care agencies, the Congress, by House Joint Resolution 175, has designated the weeks beginning December 1, 1991, and November 29, 1992, as ''National Home Care Week'' and has authorized and requested the President to issue a proclamation in observance of these weeks.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the weeks of December 1 through December 7, 1991, and November 29 through December 5, 1992, as National Home Care Week. I encourage all Americans -- as well as government officials, health and social service providers, insurance companies, and private voluntary organizations -- to observe these weeks with appropriate programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this second day of December, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6386
03 CFR Proclamation 6386 of November 29, 1991
Proclamation 6386 of November 29, 1991
03 CFR National Pearl Harbor Remembrance Day, 1991
By the President of the United States of America
A Proclamation
At 7:55 a.m. on December 7, 1941, air and naval forces of Imperial Japan launched a surprise attack against United States military installations at Pearl Harbor, Hawaii. More than 2,400 Americans were dead or missing after the attack, including 68 civilians. Another 1,178 people lay wounded. Two U.S. battleships were destroyed; another six were severely damaged. On the same day, attacks against U.S. installations in Guam, the Philippines, and elsewhere in the Pacific left a similar trail of death and destruction. Less than 24 hours later, after an impassioned address by President Franklin D. Roosevelt, the Congress declared that a state of war existed between the United States and the Empire of Japan. Thus, America became engaged in World War II, a conflict that would change the course of history, ending forever America's isolation from world events.
Across the United States, people rallied to the cry of ''Remember Pearl Harbor!'' While millions of brave and selfless Americans took up arms in the struggle for freedom, countless others labored and sacrificed on the home front. On our Nation's farms and in its factories, millions of workers rushed to increase production. In homes, schools, and churches, citizens of every age and every walk of life prayed for victory while making every contribution they could to the war effort. Yet this tremendous display of patriotism and resolve was more than a response to the outrage of Pearl Harbor. As President Roosevelt said:
Six years after World War II began, and four years after the attack on Pearl Harbor, the United States and its Allies secured the unconditional surrender of Nazi Germany and Imperial Japan. By the end of the war, there had been more than 1,000,000 American casualties. Some 400,000 Americans had died so that others might live in freedom. Our Nation will always be grateful for their courage and sacrifices.
When we remember those who served our country during World War II, we also recall President Truman's observation that the Allied victory was ''a victory of more than arms alone.'' Indeed, while our farms, factories, mines, and shipyards produced tons of raw materials and finished goods that were essential to the war effort, as President Truman said, ''back of it all were the will and spirit and determination of a free people -- who know what freedom is and who know that it is worth whatever price they had to pay to preserve it.''
On this occasion, we reaffirm the solemn commitment that President Truman made when he declared, ''We shall not forget Pearl Harbor.'' During the past five decades, that commitment has gone hand in hand with the unending task that President Roosevelt had earlier described as winning the peace. America's determination to remember the lessons of World War II and our continuing vigilance and resolve in the defense of freedom have helped to bring about the triumph of democratic ideals around the globe. Today Japan stands second to none as our ally and friend.
As we mark the 50th anniversary of the attack on Pearl Harbor, let us remember in prayer all those who died on that day and throughout World War II. Let us also honor all those World War II veterans who are still living, especially the infirm and the hospitalized. Finally, let us give thanks for the great blessings of freedom our World War II veterans helped to secure.
The Congress, by Public Law 102-68, has designated December 7, 1991, as ''National Pearl Harbor Remembrance Day.''
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim December 7, 1991, as National Pearl Harbor Remembrance Day. I call upon all Americans to observe this day with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-ninth day of November, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's remarks commemorating Pearl Harbor, see the Weekly Compilation of Presidential Documents (vol. 27, pp. 1785-1794).
03 CFR Proc. 6387
03 CFR Proclamation 6387 of December 3, 1991
Proclamation 6387 of December 3, 1991
03 CFR Federal Civilian Employees Remembrance Day, 1991
By the President of the United States of America
A Proclamation
The fact that it shattered the stillness of a Sunday morning, a time when millions of Americans were preparing to attend church services or to enjoy the quiet of their homes, only compounded the shock, grief, and outrage of our Nation. At 7:55 a.m. on December 7, 1941, naval air forces of the Imperial Japanese Combined Fleet attacked United States military installations at Pearl Harbor, Hawaii. American forces in Guam, the Philippines, and elsewhere in the Pacific also suffered brutal assaults. By the end of the day, the U.S. Pacific Fleet was virtually devastated. Scores of American fighter planes were also destroyed. More than 2,400 Americans died at Pearl Harbor alone -- among them, 68 civilians listed as dead or missing.
As we mark the 50th anniversary of the attack on Pearl Harbor, we will honor, in a special way, all those military personnel who perished on that Day of Infamy and, indeed, throughout World War II. Yet we also do well to remember the service of Federal civilian employees. Immediately after the bombing of Pearl Harbor, Federal civilian employees responded to rescue and reconstruction missions with distinction and valor. Over the next 4 years, these dedicated men and women continued to make vital contributions to the Allied war effort, performing critical administrative and technical duties in support of military operations. These tasks included aircraft and ship maintenance and repair, medical services, supply operations, and civil engineering functions to support and maintain camps, posts, and stations. Federal civilian employees played an instrumental role in salvaging naval vessels damaged at Pearl Harbor, returning them to action before the end of World War II.
Our Federal civilian employees were joined in their efforts, of course, by millions of American workers in private industry. Half a century ago, every farm, factory, mine, and shipyard in the country bustled with activity directed toward the war effort.
In recognition of the patriotism, leadership, and exemplary performance of Federal civilian employees at Pearl Harbor and throughout World War II, the Congress, by Senate Joint Resolution 198, has designated December 4, 1991, as ''Federal Civilian Employees Remembrance Day'' and has authorized and requested the President to issue a proclamation in observance of this day. On December 4, the National Park Service will coordinate ceremonies in Hawaii to honor the contributions of Federal civilian employees.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim December 4, 1991, as Federal Civilian Employees Remembrance Day. I call upon all Americans to observe this day with appropriate ceremonies and activities in honor of the Federal civilian employees who made tremendous sacrifices for our country during the attack on Pearl Harbor and throughout the course of World War II.
IN WITNESS WHEREOF, I have hereunto set my hand this third day of December, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6388
03 CFR Proclamation 6388 of December 4, 1991
Proclamation 6388 of December 4, 1991
03 CFR To Amend the Generalized System of Preferences
By the President of the United States of America
A Proclamation
1. Pursuant to sections 501 and 502 of the Trade Act of 1974, as amended (the 1974 Act) (19 U.S.C. 2461 and 2462), and having due regard for the eligibility criteria set forth therein, I have determined that it is appropriate to designate Bulgaria as a beneficiary developing country for purposes of the Generalized System of Preferences (GSP).
2. Section 604 of the 1974 Act (19 U.S.C. 2483) authorizes the President to embody in the Harmonized Tariff Schedule of the United States (HTS) the substance of the provisions of that Act, and of other Acts affecting import treatment, and actions thereunder.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States of America, including but not limited to Title V and section 604 of the 1974 Act, do proclaim that:
(1) General note 3(c)(ii)(A) to the HTS, listing those countries whose products are eligible for benefits of the GSP, is modified by inserting ''Bulgaria'' in alphabetical order in the enumeration of independent countries.
(2) Any provisions of previous proclamations and Executive orders inconsistent with the provisions of this proclamation are hereby superseded to the extent of such inconsistency.
(3) The amendment made by this proclamation shall be effective with respect to articles both: (i) imported on or after January 1, 1976, and (ii) entered, or withdrawn from warehouse for consumption, on or after 15 days after the date of publication of this proclamation in the Federal Register.
IN WITNESS WHEREOF, I have hereunto set my hand this fourth day of December, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's statement extending most-favored-nation trading status to Bulgaria, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1643). For the President's letter extending GSP treatment to Bulgaria, see p. 1756.
03 CFR Proc. 6389
03 CFR Proclamation 6389 of December 5, 1991
Proclamation 6389 of December 5, 1991
03 CFR To Amend the Generalized System of Preferences
By the President of the United States of America
A Proclamation
1. Pursuant to section 504(a)(1) of the Trade Act of 1974, as amended (the 1974 Act) (19 U.S.C. 2464(a)(1)), and having considered the factors set forth in sections 501 and 502(c) of the 1974 Act, I have determined that it is appropriate to suspend the application of duty-free treatment accorded to articles of Yugoslavia under the Generalized System of Preferences (GSP).
2. Section 604 of the 1974 Act (19 U.S.C. 2483) authorizes the President to embody in the Harmonized Tariff Schedule of the United States (HTS) the substance of the provisions of that Act, and of other Acts affecting import treatment, and actions thereunder.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States of America, including but not limited to Title V and section 604 of the 1974 Act, do proclaim that:
(1) General note 3(c)(ii)(A) to the HTS, listing those countries whose products are eligible for benefits of the GSP, is modified by deleting ''Yugoslavia'' in the enumeration of independent countries.
(2) Any provisions of previous proclamations and Executive orders inconsistent with the provisions of this proclamation are hereby superseded to the extent of such inconsistency.
(3) The amendment made by this proclamation shall be effective with respect to articles both: (i) imported on or after January 1, 1976, and (ii) entered, or withdrawn from warehouse for consumption, on or after 15 days after the date of publication of this proclamation in the Federal Register.
IN WITNESS WHEREOF, I have hereunto set my hand this fifth day of December, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's remarks on sanctions against Yugoslavia, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1621).
03 CFR Proc. 6390
03 CFR Proclamation 6390 of December 9, 1991
Proclamation 6390 of December 9, 1991
03 CFR Human Rights Day, Bill of Rights Day, and Human Rights Week, 1991
By the President of the United States of America
A Proclamation
When the Federal Convention ended in September 1787 and our Constitution was presented to the States for ratification, it was hailed by many as a triumph for liberty and self-government. ''The Constitution,'' wrote Thomas Jefferson, ''is unquestionably the wisest ever yet presented to men.'' Still, he and others voiced concern that it did not contain a declaration enumerating the rights of individuals. To Jefferson such a declaration was ''what no just government should refuse or rest on inferences.''
Opponents to the idea argued that a bill of rights would be unnecessary and perhaps even harmful, should it invite disregard for any rights that were not expressly stated. In their view, the Constitution that began with the words ''We the People'' clearly affirmed the sovereignty of the American public. But Jefferson and others persisted, noting that a declaration of rights would serve ''as a supplement to the Constitution where that is silent.'' James Madison conceded that such a declaration might prove valuable because ''political truths declared in that solemn manner acquire by degrees the character of fundamental maxims of free government.'' Today his words seem prophetic.
Our Bill of Rights guarantees, among other basic liberties, freedom of speech and of the press, as well as freedom of religion and association; it recognizes the right to keep and bear arms; and it prohibits unreasonable search and seizure of a person's home, papers, or possessions. The Bill of Rights also states that no person shall be deprived of life, liberty, or property without due process of law and establishes fundamental rules of fairness in judicial proceedings, including the right to trial by jury. Since it was ratified on December 15, 1791, the principles enshrined in this great document have not only served as the guiding tenets of American government but also inspired the advance of freedom around the globe.
When it adopted the Universal Declaration of Human Rights on December 10, 1948, the General Assembly of the United Nations affirmed for all humankind the ideals enshrined in our Bill of Rights. Noting that ''human rights should be protected by the rule of law,'' and describing the Declaration as ''a common standard of achievement for all peoples and all nations,'' signatories agreed to respect freedom of thought, freedom of conscience, as well as freedom of religion and belief. They declared that ''everyone has the right to life, liberty, and the security of person,'' and they recognized that all human beings are entitled to equal protection of the law. Signatories to the Declaration also recognized an individual's right to participate in the government of his or her country, either directly or through freely chosen representatives.
The Universal Declaration of Human Rights reasserted what we Americans have always believed: that recognition of these rights ''is the foundation of freedom, justice, and peace in the world.'' This ideal was reaffirmed and strengthened in the 1975 Helsinki Final Act of the Conference on Security and Cooperation in Europe and more recently in the 1990 Charter of Paris.
Today we stand closer than ever to achieving universal compliance with the letter and spirit of international human rights agreements. Two hundred years after the ratification of our Bill of Rights, the principles it enshrines continue to take root around the world.
Having triumphed over communism, many peoples and nations now confront the challenge of improving respect for human rights among various ethnic and religious groups, as well as members of national minorities. The United States will continue to urge these and all nations to abide by international human rights agreements and to act in the spirit of political pluralism and tolerance -- traditions that have made America's diversity a source of pride and strength.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim December 10, 1991, as Human Rights Day and December 15, 1991, as Bill of Rights Day and call upon all Americans to observe the week beginning December 10, 1991, as Human Rights Week.
IN WITNESS WHEREOF, I have hereunto set my hand this ninth day of December, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6391
03 CFR Proclamation 6391 of December 12, 1991
Proclamation 6391 of December 12, 1991
03 CFR Wright Brothers Day, 1991
By the President of the United States of America
A Proclamation
They were quiet men of modest means, but in an extraordinary display of talent, imagination, and teamwork, Orville and Wilbur Wright changed the world. Less than a century ago, on December 17, 1903, these enterprising brothers launched the age of aviation with the first controlled, manned flight in a heavier-than-air, mechanically propelled airplane. Although their handcrafted ''Flyer'' covered just 120 feet on its maiden voyage over the windswept beach near Kitty Hawk, North Carolina, the Wright brothers helped lead mankind on a great journey of discovery and progress that continues to this day.
Given the routine nature of air travel today -- as well as the increasing frequency of shuttle missions and other forms of spaceflight -- it can be difficult for us to fathom just how remarkable the work of the Wright brothers was. When they began to experiment with airplane models and wind tunnels at their small workshop in Dayton, Ohio, many people believed that human flight would never be possible. At that time, even the automobile had not yet appeared on the American scene. Defying the skeptics, Orville and Wilbur Wright persevered through months of careful study, calculation, and design.
Indeed, long before they began constructing their first flying machine, the Wrights immersed themselves in the study of existing texts and papers on fundamental aerodynamics. They also conducted exhaustive research, moving far beyond previously accepted data and theories, many of which had proved to be unreliable. The Wrights' achievement of three-axis control in flight, inspired by watching birds of the air, laid the foundation for their success at Kitty Hawk and for the future development of all aviation.
More than a tribute to their mechanical acumen and collective genius, the Wright brothers' triumph at Kitty Hawk stands as a shining example of the power of intellect and determination over seemingly insurmountable odds. It is an example we do well to remember. Today many frontiers still stand before us. Every problem and question we face, both as individuals and as a Nation, represents new challenges and opportunities. Like Orville and Wilbur Wright and like all those Americans who have used their freedom, resources, and skill to reach high goals, we, too, can rise on the wings of industry and learning.
The Congress, by a joint resolution approved December 17, 1963 (77 Stat. 402; 36 U.S.C. 169), has designated the 17th day of December of each year as ''Wright Brothers Day'' and requested the President to issue annually a proclamation commemorating this day.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim December 17, 1991, as Wright Brothers Day. I invite all Americans to observe that day with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twelfth day of December, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6392
03 CFR Proclamation 6392 of December 13, 1991
Proclamation 6392 of December 13, 1991
03 CFR Bicentennial of the District of Columbia Month, 1991
By the President of the United States of America
A Proclamation
Although it encompasses just 10 square miles, the District of Columbia contains a vast wealth of history and culture -- a legacy that befits our Nation's Capital. This year, we celebrate the 200th anniversary of our remarkable Federal city.
Conceived by the Framers of our Constitution, who provided for the establishment of a special district to serve ''as the Seat of the Government of the United States,'' our Nation's Capital began to take shape in 1791. In January of that year, a site was selected for the city under the direction of President George Washington. The following month Andrew Ellicot and Benjamin Banneker, a successful black farmer who was self-taught in engineering, mathematics, and other fields, began to survey the terrain.
Plans for the actual layout of the city reflected the exuberance, pride, and optimism of our young Republic. When he submitted his design to the Congress in December 1791, Major Pierre L'Enfant included numerous provisions for parks, fountains, and wide, sweeping avenues -- all reflecting a vision as grand and as ambitious as the American experiment itself.
Over the years, a number of our Nation's leaders took great personal interest in the development of the Federal city. Thomas Jefferson offered advice and sketches for its design, and it was his idea to build a large mall extending from the foot of the hill on which our magnificent United States Capitol now stands. Today the Mall in Washington is surrounded by monuments and museums that honor the brilliant thinkers and brave heroes who have defined and defended the American ideals of liberty and self-government. Many of the museums in our Nation's Capital also contain vast collections of American art and folklore, as well as fascinating displays of U.S. achievements in science, industry, and aviation.
As the seat of government of the United States for 200 years, our Nation's Capital has become a center of American culture and a world-renowned symbol of freedom and democracy. Here is where President John Adams and his successors continued the work that President George Washington and the First Congress had begun in New York. Here is where President Abraham Lincoln labored to preserve our Union; and here is where the Reverend Dr. Martin Luther King, Jr., led the historic march that energized the civil rights movement and reminded America of its promise of liberty and justice for all. Much of our Nation's history has marched through Washington, D.C., and today that journey continues as we engage in the day-to-day process of democratic government.
While our Nation's Capital belongs to all Americans, this occasion is a very special one for the residents of the District of Columbia. Many families have lived in the city for generations, and this bicentennial is also a celebration of their roots.
At the end of the Civil War, thousands of African Americans came to Washington, making the city a virtual symbol of emancipation and progress. Their accomplishments, reflected in the growth of institutions such as Howard University, helped pave the way for countless others. Today residents of the District of Columbia continue to make outstanding contributions in education, business, science, and the arts. On this occasion, all Americans join them in celebrating 200 years of history and achievement.
The Congress, by House Joint Resolution 356, has designated December 1991 as ''Bicentennial of the District of Columbia Month'' and has authorized and requested the President to issue a proclamation in observance of this month.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim December 1991 as Bicentennial of the District of Columbia Month. I invite all Americans to observe this month with appropriate ceremonies and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this thirteenth day of December, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6393
03 CFR Proclamation 6393 of December 13, 1991
Proclamation 6393 of December 13, 1991
03 CFR Year of Clean Water, 1992
Clean Water Month, 1992
By the President of the United States of America
A Proclamation
Water is essential to every form of life on Earth. Indeed, this vital substance unites our planet's ecosystems, the miraculous yet fragile relationships in nature that sustain each other as well as all human activity. Recognizing the importance of our precious water resources, the United States has made a firm commitment to protecting their physical, chemical, and biological integrity. This year, the 20th anniversary of the Clean Water Act reminds us that we are all stewards of our water resources, and, as such, we are responsible for their preservation and wise use.
Since the enactment of the Clean Water Act in 1972, we have achieved remarkable improvements in many of our Nation's water resources. Twenty years ago, less than half of America's rivers supported fish and shellfish or provided wildlife habitat. Fishing and swimming were restricted in many areas, and drinking water supplies were threatened. Today, however, nearly three-fourths of the Nation's waters support these uses, and many others have significantly improved in quality. Fish and waterfowl have returned to many of our rivers, lakes, and coastal waters.
We have taken great strides during the past two decades, primarily by controlling pollution from sewage treatment plants and industrial facilities. Recent advances in science and technology have enabled us to engage in more effective studies of water pollution -- its causes and its effects. These studies, which have often revealed the magnitude of previously underestimated problems, have led to more vigorous and innovative antipollution measures. At the same time, public awareness of the importance of clean water has also increased; now there is more support than ever for protecting and enhancing water quality.
While we can take pride in this progress, many challenges remain. Urban and industrial growth are creating additional sources of pollution while placing increased demands on limited water resources. Contaminated runoff from farmlands as well as city streets is, all too often, degrading our waters and damaging ecosystems. Scientists continue to detect unacceptable levels of pollutants in many bodies of water and in the tissues of finfish and shellfish. All Americans must continue to work together to protect our water resources and the wildlife that depends on them.
We have already discerned the need for new and innovative solutions. Indeed, today we know that the health of aquatic ecosystems must be examined holistically, to determine how various forms of human activity affect water quality. We know that we must protect entire watersheds that feed into our rivers, lakes, and coastal waters. We also recognize that, by preventing pollution at the source, we can protect watersheds and avoid the high economic and environmental costs of treating wastes and restoring ecosystems after pollution has already occurred. Moreover, experience has shown us that our actions must be based on sound science.
The 20th anniversary of the Clean Water Act marks an important milestone in the history of American environmental protection. However, just as water links each of our planet's ecosystems, water pollution recognizes no boundaries. All Americans and their representatives in all levels of government must work together to promote wise stewardship of this, our ''water planet.'' We must also foster greater cooperation in the international community.
As an expression of our national commitment to these goals, the Congress, by Public Law 101-424, has designated 1992 as the ''Year of Clean Water'' and October 1992 as ''Clean Water Month.''
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim 1992 as the Year of Clean Water and October 1992 as Clean Water Month. I call upon all Americans to observe this year and month with appropriate programs, ceremonies, and activities. I also ask my fellow Americans to join in setting examples of environmental stewardship in our daily lives.
IN WITNESS WHEREOF, I have hereunto set my hand this thirteenth day of December, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6394
03 CFR Proclamation 6394 of December 16, 1991
Proclamation 6394 of December 16, 1991
03 CFR Year of Thanksgiving for the Blessings of Liberty, 1991
By the President of the United States of America
A Proclamation
Thomas Jefferson once noted that the only firm basis of a nation's liberties is the ''conviction in the minds of the people that these liberties are . . . the gift of God.'' By observing the bicentennial of our Bill of Rights as a Year of Thanksgiving for the Blessings of Liberty, we not only give honor where it is due but also reaffirm the moral and spiritual foundation on which this great Republic rests.
Our Nation's Founders were men of faith and conviction, and it was a biblically inspired view of man that led them to declare ''that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.'' The ratification of our Bill of Rights in December 1791 signalled their determination to uphold in law these timeless words from our Declaration of Independence.
Our Bill of Rights guarantees, among other basic liberties, freedom of speech and of the press, as well as freedom of religion and association; it recognizes the right to keep and bear arms; and it prohibits unreasonable search and seizure of a person's home, papers, or possessions. The Bill of Rights also states that no person shall be deprived of life, liberty, or property without due process of law, and it establishes fundamental rules of fairness in judicial proceedings, including the right to trial by jury. Two hundred years after its ratification, this extraordinary document is recognized around the world as the great charter of American liberty and democracy. Indeed, as James Madison predicted, the principles enshrined in our Bill of Rights have become for all peoples ''fundamental maxims of free government.''
Our ancestors fully recognized the value of freedom, and on September 26, 1789, just one day after they agreed on a draft Bill of Rights to be presented to the States for ratification, members of the First Congress requested that President Washington ''recommend to the people of the United States a day of public thanksgiving and prayer, to be observed by acknowledging with grateful hearts the many signal favors of Almighty God.'' Washington, who had favored and even encouraged the observance of such a day, readily issued a proclamation calling upon all Americans to unite in thanksgiving ''for the civil and religious liberty with which we are blessed . . . .''
President Washington's call for a national day of Thanksgiving came less than two decades after our Declaration of Independence -- and two years before the ratification of our Bill of Rights. How much greater reason do we have now, more than 200 years later, to give thanks! The fledgling republic led by George Washington has not only endured but prospered. Today we can be thankful for the very fact that we have maintained our Constitution and Bill of Rights throughout our Nation's history and for the expansion of freedom and democratic ideals around the world. Today we are also grateful for those brave Americans, past and present, who have been willing to put themselves in harm's way to defend the lives and liberty of others.
On this wonderful occasion, recalling the words of our first President, let us give thanks for the blessings of liberty, and let us strive -- both as individuals and as a Nation -- to remain worthy of them, always using our freedom in accordance with the will of that ''great and glorious Being'' who has so graciously granted and preserved it.
The Congress, by Public Law 101-570, has designated 1991 as a ''Year of Thanksgiving for the Blessings of Liberty'' and has authorized and requested the President to issue a proclamation in observance of this year.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby urge all Americans to join in observing 1991 as a Year of Thanksgiving for the Blessings of Liberty. Let us show through word and deed -- including public and private prayer -- that we are grateful for our God-given freedom and for the many other blessings that He has bestowed on us as individuals and as a Nation.
IN WITNESS WHEREOF, I have hereunto set my hand this sixteenth day of December, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's remarks on signing this proclamation, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1836). For the President's remarks on the bicentennial of the Bill of Rights, see p. 1838.
03 CFR Proc. 6395
03 CFR Proclamation 6395 of December 17, 1991
Proclamation 6395 of December 17, 1991
03 CFR Basketball Centennial Day, 1991
By the President of the United States of America
A Proclamation
When Dr. James Naismith invented basketball a century ago, he could not have envisioned what would become of the simple game he had devised to entertain his students between the fall football and spring baseball seasons. Today the uniquely American game of basketball is one of the fastest paced and most widely popular team sports in the world.
Dr. Naismith's brainchild has changed dramatically since a janitor helped him hang peach baskets at each end of the gymnasium at the International Young Men's Christian Association Training School in Springfield, Massachusetts. Once played primarily at YMCA facilities, basketball now boasts players and fans around the globe. Breakaway rims and gravity-defying jump shots have replaced the one-handed set shot into wooden receptacles; three-point goals now reward players who can shoot accurately from long range; and more and more women are taking up the game at all levels of competition.
Each of these changes has made basketball more exciting to watch, expanding its appeal to people of all ages and all walks of life. Indeed, few sporting events generate more spirited rivalries than a high school state basketball championship, the NCAA 64-team tournament, or the NBA Finals. Since 1904, when it was introduced as a demonstration sport, basketball has also been a thrilling part of the Olympics. The United States is proud of the many Olympic titles that have been brought home by our American teams, including the 1984 Women's Gold Medal.
In every city and town across the United States, playgrounds and gymnasiums are filled with youngsters who dream of success on the hardwood. However, whether one aspires to play professional ball or simply hopes to win a friendly pickup game, anyone who spends time on the court knows the importance of mastering the fundamentals: dribbling, passing, shooting, and rebounding. Once these skills are developed, an athlete must then learn to coordinate his or her game with the other four players on a squad. This combination of individual achievement and teamwork is what makes the game of basketball both fascinating and rewarding. The great college coach, John Wooden, may have said it best when he explained:
Like all sports, basketball not only promotes physical health and fitness but also fosters virtues that serve players well on and off the court. On this occasion, we proudly celebrate the 100th anniversary of this uniquely American game.
The Congress, by Public Law 102-210, has designated December 21, 1991, as ''Basketball Centennial Day'' and has authorized and requested the President to issue a proclamation in observance of this day.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim December 21, 1991, as Basketball Centennial Day. I invite all Americans to observe this day with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this seventeenth day of December, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6396
03 CFR Proclamation 6396 of December 20, 1991
Proclamation 6396 of December 20, 1991
03 CFR National Law Enforcement Training Week, 1992
By the President of the United States of America
A Proclamation
High-quality training is an essential component of effective law enforcement. The dedicated men and women who serve in this field have sworn to uphold the constitutional rights of individuals while promoting and defending the public safety. Meeting that challenge requires that every officer -- from the rookie on the street to the most experienced chief or investigator -- be equipped with certain knowledge and skills.
Today law enforcement training is as rigorous and as wide-ranging in scope as the day-to-day demands of an officer's job. First, every man and woman behind the badge must have knowledge of the law itself, including the rules of proper conduct and procedure. Because their work places them on the front lines in the war against drugs and crime, law enforcement officers also devote many hours of study and practice to self-defense techniques and to the safe use of firearms. Basic law enforcement training also includes physical conditioning, as well as lessons and exercises in the administration of first aid. Whether they are called to the scene of an accident or to the site of a violent domestic dispute, law enforcement officers know that lives depend on their preparedness and skill.
While the fundamentals have remained the same, recent advances in science and technology have changed many aspects of law enforcement and law enforcement training. To fight back against increasingly sophisticated crimes, police officers and other law enforcement agents are employing increasingly sophisticated tools and methods, from computers and toxicology to genetic ''fingerprinting'' and psychological profiling. Thus, those individuals who provide law enforcement training -- including continuing education for veteran personnel -- are part of a large, multidisciplinary team of professionals.
This week, as we gratefully salute all those who conduct and participate in law enforcement training, we also acknowledge the many rewarding career opportunities that it offers through its related disciplines. Young Americans who aspire to serve in our Nation's law enforcement and criminal justice system are encouraged to learn more about them.
To heighten public awareness of the importance of law enforcement training and its related fields, the Congress, by Public Law 102-206, has designated the week of January 5 through January 11, 1992, as ''National Law Enforcement Training Week'' and has authorized and requested the President to issue a proclamation in observance of this week.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim the week beginning January 5, 1992, as National Law Enforcement Training Week. I invite all Americans to observe this week with appropriate programs and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twentieth day of December, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
Editorial note: For the President's remarks at the dedication of the National Law Enforcement Officers' memorial, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1448).
03 CFR Proc. 6397
03 CFR Proclamation 6397 of December 20, 1991
Proclamation 6397 of December 20, 1991
03 CFR National Sanctity of Human Life Day, 1992
By the President of the United States of America
A Proclamation
Throughout our Nation's history, Americans have treasured these timeless words from our Declaration of Independence: ''We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.'' These stirring words summarize the fundamental moral vision of the United States, a vision that affirms the inestimable dignity and worth of every human being, each of whom is made in the image of God. They were not words uttered lightly. Signers of the Declaration pledged to uphold them with their lives, their fortunes, and their sacred honor. On this occasion, we reflect on the first and most fundamental right enumerated by our Nation's founders: the right to life.
Thomas Jefferson noted that ''the God who gave us life gave us liberty at the same time,'' and much of his writing reflects his belief that ''the care of human life and happiness, and not their destruction, is the first and only legitimate object of good government.'' Thus, respect for the sanctity of human life is deeply rooted in the American tradition. Today we Americans are rightfully proud of our physicians and scientists, who have helped lead the way in the fight against disability and disease; proud of the thousands of American service members and volunteers who have responded to calls for help around the world; and grateful to the many fire fighters and law enforcement officers who work to protect the public safety. These are just a few of the millions of Americans who demonstrate, through their daily labors, our Nation's traditional reverence for human life.
While the United States boasts a long and honorable tradition of respect for human life and the rights of individuals, one key issue related to the sanctity of life is a divisive one in America today: the issue of abortion.
Fewer than 20 years after the 1973 Supreme Court ruling in Roe v. Wade, the prevalence of abortion on demand in the United States stands in stark contrast to our Nation's most deeply held values and beliefs. While sincere persons may disagree, my position is that the lives of both mother and child must be cherished and protected.
Advances in science and technology continue to provide evidence that the child developing in the mother's womb is a distinct, living individual who bears all the basic attributes of human personality. How terribly ironic that an unborn child in one medical facility may be carefully treated as a patient while at another facility -- perhaps just a few blocks away -- another unborn child will become the innocent victim of abortion.
Women and men who operate crisis pregnancy centers across the country recognize the fear and desperation that compel some women to consider abortion. Yet they also know that, in a Nation as prosperous as ours, where people are known for their open hearts and their unfailing generosity, this tragic choice is unnecessary.
On this occasion, we acknowledge the selflessness and compassion of all those volunteers who offer emotional, physical, and financial support to women facing crisis pregnancies. We also salute those courageous women who choose life for their unborn children and thank the dedicated counselors, social workers, and other professionals who, where needed, offer assistance in adoption. As a Nation, we must continue to dismantle legal, financial, and attitudinal barriers to adoption, to make adopting easier for families who want children and who will give them loving homes -- particularly children with special needs.
On this ninth National Sanctity of Human Life Day, let us renew our determination to ensure that all, born and unborn, receive the protection and care they deserve. Together, let us choose life, so that America might always be known as a good and giving Nation, a nation where the stranger is welcomed and the needy are served with dignity and kindness. That is the sure and noble path chosen at our Nation's founding and the path to which we must always return.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim Sunday, January 19, 1992, as National Sanctity of Human Life Day. I call on all Americans to reflect on the sanctity of human life in all its stages and to gather in homes and places of worship to give thanks for the gift of life and to reaffirm our commitment to respect the life and dignity of every human being.
IN WITNESS WHEREOF, I have hereunto set my hand this twentieth day of December, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6398
03 CFR Proclamation 6398 of December 23, 1991
Proclamation 6398 of December 23, 1991
03 CFR National Ellis Island Day, 1992
By the President of the United States of America
A Proclamation
The ethnic diversity that we so proudly celebrate in the United States mirrors our rich heritage as a Nation of immigrants. ''Here is not merely a Nation,'' wrote Walt Whitman, ''but a teeming nation of nations . . . . Here is the hospitality which forever indicates heroes.'' One of the greatest symbols of American hospitality stands at Ellis Island in Upper New York Bay.
A century ago, on January 1, 1892, the immigrant station on Ellis Island was opened as a gateway to America. Between 1892 and 1954, nearly 17 million immigrants entered the United States through this portal. Many sought refuge from tyranny and persecution. All sought new lives in this great land of freedom and opportunity.
At Ellis Island, millions of immigrants from around the world were able to look across the Bay toward our magnificent Statue of Liberty, the famed ''Mother of Exiles'' who lifts her lamp ''beside the golden door.'' During the mass wave of immigration that spanned from 1900 to 1914, they came, especially immigrants from throughout Southern and Eastern Europe. Indeed, 100 million Americans, some 40 percent of our population, can trace their ancestry through Ellis Island.
The course of immigration to this country has fluctuated throughout the history of the United States. Recent years, for example, have seen increased numbers of immigrants of Hispanic and Asian origin. But whatever their place of origin or point of entry, each generation of immigrants has bettered America.
Indeed, it is fitting that the restoration of Ellis Island has constituted the largest historic renovation project in the history of the United States. After all, immigration has been one of the largest single factors in our Nation's social, cultural, and economic development. Walt Whitman aptly noted that, in the eyes of the poet, ''the other continents arrive as contributions . . . he gives them reception for their sake and for his own sake.'' That has always been true, for immigrants have enriched the United States beyond measure, bringing many contributions to our society along with the unique customs and traditions of their ancestral homeland. Most important, they have shared eagerly in the hard work of freedom, helping to defend the ideals of liberty and self-government and helping to build our churches, schools, factories, farms, and railroads.
Visiting Ellis Island today or seeing pictures of this place evokes strong chords in our national memory -- the relief immigrants felt upon landing, the strangeness of new surroundings, the babble of languages, the pain of separation from family and friends remaining in the Old World, the despair felt by those few who were not admitted and forced to return to their countries. Whatever our personal histories, who does not recall the pictures -- a woman in a head scarf holding a wide-eyed child, a man burdened with his belongings and tools of his trade, a 45-star flag perched above a full waiting room of anxious people -- and not felt a breath of recognition; a twinge of silent pain; or, most of all, a feeling of gratitude that our ancestors chose to live or remain in this, the freest, greatest country on Earth?
America's history has long been a story of immigrants, and today Ellis Island stands as a glorious reminder that new chapters are being added to that narrative each day. Thus, as we celebrate the 100th anniversary of this historic place, evocative symbol of so much of our Nation's heritage, let us not only salute the many generous contributors who made its renovation possible but also offer a warm welcome to the immigrants of today -- our fellow Americans of tomorrow.
The Congress, by Public Law 102-177, has designated January 1, 1992, as ''National Ellis Island Day'' and has authorized and requested the President to issue a proclamation in observance of this day.
NOW, THEREFORE, I, GEORGE BUSH, President of the United States of America, do hereby proclaim January 1, 1992, as National Ellis Island Day. I invite all Americans to observe this day with appropriate programs, ceremonies, and activities.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-third day of December, in the year of our Lord nineteen hundred and ninety-one, and of the Independence of the United States of America the two hundred and sixteenth.
GEORGE BUSH
03 CFR Proc. 6398 Title 3 -- The President
03 CFR Proc. 6398 Executive Orders
03 CFR Proc. 6398 EXECUTIVE ORDERS
03 CFR EO 12742
03 CFR Executive Order 12742 of January 8, 1991
Executive Order 12742 of January 8, 1991
03 CFR
National Security Industrial Responsiveness
By the authority vested in me as President by the Constitution and the laws of the United States of America, including 50 U.S.C. App. 468, 10 U.S.C. 4501 and 9501, and 50 U.S.C. 82, it is hereby ordered as follows:
Section 101. Policy. The United States must have the capability to rapidly mobilize its resources in the interest of national security. Therefore, to achieve prompt delivery of articles, products, and materials to meet national security requirements, the Government may place orders and require priority performance of these orders.
Sec. 102. Delegation of Authority under 50 U.S.C. App. 468.
(a) Subject to paragraph (b) of this section, the authorities vested in the President, under 50 U.S.C. App. 468, with respect to the placing of orders for prompt delivery of articles or materials, except for the taking authority under 50 U.S.C. App. 468(c), are hereby delegated to:
(1) the Secretary of Agriculture with respect to all food resources;
(2) the Secretary of Energy with respect to all forms of energy;
(3) the Secretary of Transportation with respect to all forms of civil transportation; and
(4) the Secretary of Commerce with respect to all other articles and materials, including construction materials.
(b) The authorities delegated by paragraph (a) of this section shall be exercised only after:
(1) a determination by the Secretary of Defense that prompt delivery of the articles or materials for the exclusive use of the armed forces of the United States is in the interest of national security, or
(2) a determination by the Secretary of Energy that the prompt delivery of the articles or materials for the Department of Energy's atomic energy programs is in the interest of national security.
(c) All determinations of the type described in paragraph (b) of this section and all delegations -- made prior to the effective date of this order under the Defense Production Act of 1950, as amended, and under its implementing rules and regulations -- shall be continued in effect, including but not limited to approved programs listed under the Defense Priorities and Allocations System (15 CFR Part 700).
Sec. 103. Delegation of Authority under 10 U.S.C. 4501 and 9501, and 50 U.S.C. 82.
(a) Subject to paragraph (b) of this section, the authorities vested in the President under 10 U.S.C. 4501 and 9501 with respect to the placing of orders for necessary products or materials, and under 50 U.S.C. 82 with respect to the placing of orders for ships or war materials, except for the taking authority vested in the President by these acts, are hereby delegated to:
(1) the Secretary of Agriculture with respect to all food resources;
(2) the Secretary of Energy with respect to all forms of energy;
(3) the Secretary of Transportation with respect to all forms of civil transportation; and
(4) the Secretary of Commerce with respect to all other products and materials, including construction materials.
(b) The authorities delegated in paragraph (a) of this section may be exercised only after the President has made the statutorily required determination.
Sec. 104. Implementation. (a) The authorities delegated under sections 102 and 103 of this order shall include the power to redelegate such authorities, and the power of successive redelegation of such authorities, to departments and agencies, officers, and employees of the Government. The authorities delegated in this order may be implemented by regulations promulgated and administered by the Secretaries of Agriculture, Defense, Energy, Transportation, and Commerce, and the Director of the Federal Emergency Management Agency, as appropriate.
(b) All departments and agencies delegated authority under this order are hereby directed to amend their rules and regulations as necessary to reflect the new authorities delegated herein that are to be relied upon to carry out their functions. To the extent authorized by law, including 50 U.S.C. App. 486, 10 U.S.C. 4501 and 9501, and 50 U.S.C. 82, all rules and regulations issued under the Defense Production Act of 1950, as amended, with respect to the placing of priority orders for articles, products, ships, and materials, including war materials, shall be deemed, where appropriate, to implement the authorities delegated by sections 102 and 103 of this order, and shall remain in effect until amended or revoked by the respective Secretary. All orders, regulations, and other forms of administrative actions purported to have been issued, taken, or continued in effect pursuant to the Defense Production Act of 1950, as amended, shall, until amended or revoked by the respective Secretaries or the Director of the Federal Emergency Management Agency, as appropriate, remain in full force and effect, to the extent supported by any law or any authority delegated to the respective Secretary or the Director pursuant to this order.
(c) Upon the request of the Secretary of Defense with respect to particular articles, products, or materials that are determined to be needed to meet national security requirements, any other official receiving a delegation of authority under this Executive order to place orders or to enforce precedence of such orders, shall exercise such authority within 10 calendar days of the receipt of the request; provided, that if the head of any department or agency having delegated responsibilities hereunder disagrees with a request of the Secretary of Defense, such department or agency head shall, within 10 calendar days from the receipt of the request, refer the issue to the Assistant to the President for National Security Affairs, who shall ensure expeditious resolution of the issue.
(d) Proposed department and agency regulations and procedures to implement the delegated authority under this order, and any new determinations made under sections 102(b)(1) or (2), shall be coordinated by the Director of the Federal Emergency Management Agency with all appropriate departments and agencies.
Sec. 105. Judicial Review. This order is intended only to improve the internal management of the executive branch and is not intended to create any right or benefit, substantive or procedural, enforceable at law by a party against the United States, its agencies, its officers, or any person.
GEORGE BUSH
THE WHITE HOUSE,
January 8, 1991.
03 CFR EO 12743
03 CFR Executive Order 12743 of January 18, 1991
Executive Order 12743 of January 18, 1991
03 CFR Ordering the Ready Reserve of the Armed Forces to Active Duty
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the National Emergencies Act (50 U.S.C. 1601 et seq.), and section 301 of title 3 of the United States Code; in furtherance of Executive Order No. 12722, dated August 2, 1990, which declared a national emergency to address the threat to the national security and foreign policy of the United States posed by the invasion of Kuwait by Iraq; and, in accordance with the requirements contained in section 301 of the National Emergencies Act, 50 U.S.C. 1631, I hereby order as follows:
Section 1. To provide additional authority to the Department of Defense and the Department of Transportation to respond to the continuing threat posed by Iraq's invasion of Kuwait, the authority under section 673 of title 10, United States Code, to order any unit, and any member not assigned to a unit organized to serve as a unit, in the Ready Reserve to active duty (other than for training) for not more than 24 consecutive months, is invoked and made available, according to its terms, to the Secretary concerned, subject, in the case of the Secretaries of the Army, Navy, and Air Force, to the direction of the Secretary of Defense. The term ''Secretary concerned'' is defined in section 101(8) of title 10, United States Code, to mean the Secretary of the Army with respect to the Army; the Secretary of the Navy with respect to the Navy, the Marine Corps, and the Coast Guard when it is operating as a service in the Navy; the Secretary of the Air Force with respect to the Air Force; and, the Secretary of Transportation with respect to the Coast Guard when it is not operating as a service in the Navy.
Sec. 2. To allow for the orderly administration of personnel within the armed forces, the authority vested in the President by section 527 of title 10, United States Code, to suspend the operation of sections 523-526 of title 10, United States Code, regarding officer strength and officer distribution in grade, is invoked to the full extent provided by the terms thereof.
Sec. 3. To allow for the orderly administration of personnel within the armed forces, the authority vested in the President by section 644 of title 10, United States Code, to suspend the operation of any provision of law relating to the promotion, involuntary retirement, or separation of commissioned officers of the Army, Navy, Air Force, or Marine Corps, is invoked to the full extent provided by the terms thereof.
Sec. 4. The Secretary of Defense is hereby designated and empowered, without the approval, ratification, or other action by the President, to exercise the authority vested in the President by sections 527 and 644 of title 10, United States Code, as invoked by sections 2 and 3 of this order, to suspend the operation of certain provisions of law.
Sec. 5. The authorities delegated by sections 1 and 4 of this order may be redelegated and further subdelegated to civilian subordinates who are appointed to their offices by the President, by and with the advice and consent of the Senate.
Sec. 6. This order is intended to improve the internal management of the executive branch, and is not intended to create any right or benefit, substantive or procedural, enforceable at law by a party against the United States, its agencies, its officers, or any person.
Sec. 7. This order is effective immediately, and shall be transmitted to the Congress and published in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
January 18, 1991.
Editorial note: For the President's letter to Congressional leaders on the Persian Gulf conflict and the activation of the ready reserve, see the Weekly Compilation of Presidential Documents (vol. 27, pp. 59, 60). For his message to Congress transmitting a report on the ready reserve, see p. 1030.
03 CFR EO 12744
03 CFR Executive Order 12744 of January 21, 1991
Executive Order 12744 of January 21, 1991
03 CFR Designation of Arabian Peninsula Areas, Airspace, and Adjacent Waters as a Combat Zone
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 112 of the Internal Revenue Code of 1986 (26 U.S.C. 112), I hereby designate, for purposes of that section, the following locations, including the airspace above such locations, as an area in which Armed Forces of the United States are and have been engaged in combat:
-- the Persian Gulf -- the Red Sea -- the Gulf of Oman -- that portion of the Arabian Sea that lies north of 10 degrees
north latitude and west of 68 degrees east longitude
-- the Gulf of Aden -- the total land areas of Iraq, Kuwait, Saudi Arabia, Oman,
Bahrain, Qatar, and the United Arab Emirates.
For the purposes of this order, the date of the commencing of combatant activities in such zone is hereby designated as January 17, 1991.
GEORGE BUSH
THE WHITE HOUSE,
January 21, 1991.
Editorial note: For a statement by Press Secretary Fitzwater on the designation of the combat zone, see the Weekly Compilation of Presidential Documents (vol. 27, p. 68).
03 CFR EO 12745
03 CFR Executive Order 12745 of January 22, 1991
Executive Order 12745 of January 22, 1991
03 CFR Waiver Under the Trade Act of 1974 With Respect to Bulgaria
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 402(c)(2) of the Trade Act of 1974 (''the Act'') (19 U.S.C. 2432(c)(2)), which continues to apply to Bulgaria pursuant to section 402(d), and having made the report to the Congress required by section 402(c)(2), I hereby waive the application of subsections (a) and (b) of section 402 of the Act with respect to Bulgaria.
GEORGE BUSH
THE WHITE HOUSE,
January 22, 1991.
03 CFR EO 12746
03 CFR Executive Order 12746 of January 23, 1991
Executive Order 12746 of January 23, 1991
03 CFR Waiver Under the Trade Act of 1974 With Respect to Mongolia
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 402(c)(2) of the Trade Act of 1974 (''the Act'') (19 U.S.C. 2432(c)(2)), which continues to apply to Mongolia pursuant to section 402(d), and having made the report to the Congress required by section 402(c)(2), I hereby waive the application of subsections (a) and (b) of section 402 of the Act with respect to Mongolia.
GEORGE BUSH
THE WHITE HOUSE,
January 23, 1991.
Editorial note: For the President's remarks following discussions with President Ochirbat of Mongolia, see the Weekly Compilation of Presidential Documents (vol. 27, p. 70). For the President's message to the Congress and the Executive order on trade with Mongolia, see p. 72.
03 CFR EO 12747
03 CFR Executive Order 12747 of January 25, 1991
Executive Order 12747 of January 25, 1991
03 CFR National Nutrition Monitoring Advisory Council
By the authority vested in me as President by the Constitution and the laws of the United States, including the National Nutrition Monitoring and Related Research Act of 1990 (''Act'') (Public Law 101-445, October 22, 1990) and the Federal Advisory Committee Act, as amended (5 U.S.C. App.), it is hereby ordered as follows:
Section 1. Establishment. There is established the National Nutrition Monitoring Advisory Council (''Council''). The Council shall assist in carrying out the purposes of the Act, provide scientific and technical advice on the development and implementation of the coordinated program and comprehensive plan required by section 103 of the Act, and serve in an advisory capacity to the Secretary of Agriculture and the Secretary of Health and Human Services (''Secretaries'') with respect to their responsibilities and functions under the Act.
Sec. 2. Membership. (A) Composition. The Council shall consist of nine voting members. Five of the members shall be appointed by the President upon the recommendation of the Secretaries. Four of the members shall be appointed by the Congress, of whom one shall be appointed by the Speaker of the House of Representatives, one shall be appointed by the minority leader of the House of Representatives, one shall be appointed by the President pro tempore of the Senate, and one shall be appointed by the minority leader of the Senate. The Council shall also include the joint chairpersons of the Interagency Board for Nutrition Monitoring and Related Research as ex officio nonvoting members.
(B) Selection Criteria. Each person appointed to the Council shall be selected solely on the basis of an established record of distinguished service and shall be eminent in one of the following fields:
(1) public health, including clinical dietetics, public health nutrition, epidemiology, clinical medicine, health education, or nutrition education;
(2) nutrition monitoring research, including nutrition monitoring and surveillance, food consumption patterns, nutritional anthropology, community nutrition research, nutritional biochemistry, food composition analysis, survey statistics, dietary-intake methodology, or nutrition status methodology; or
(3) food production and distribution, including agriculture, biotechnology, food engineering, economics, consumer psychology or sociology, food-system management, or food assistance.
(C) Particular Representation Requirements. The Council membership, at all times, shall include at least two representatives from each of the three areas of specialization listed in subsection (B), and shall have representatives from various geographic areas, the private sector, academia, scientific and professional societies, agriculture, minority organizations, and public interest organizations, and shall include a State or local government employee with a specialized interest in nutrition monitoring.
(D) Chairperson. The Chairperson of the Council shall be elected from and by the Council membership. The term of office shall not exceed 5 years. If a vacancy occurs in the Chairpersonship, the Council shall elect a member to fill such vacancy.
(E) Term of Office. The term of office of each of the voting members of the Council shall be 5 years, except that of the five members first appointed by the President, two members shall be appointed for a term of 2 years, two members for a term of 3 years, and one for a term of 4 years, as designated by the President at the time of appointment. Any member appointed to fill a vacancy occurring prior to the expiration of the term for which the predecessor of such member was appointed shall be appointed for the remainder of the term. No voting member shall be eligible to serve continuously for more than two consecutive terms.
(F) Executive Secretary. The Administrator of Nutrition Monitoring and Related Research (if appointed under section 101(d) of the Act) shall serve as the Executive Secretary of the Council.
Sec. 3. Functions of the Council. The Council shall:
(a) provide scientific and technical advice on the development and implementation of all components of the coordinated program and the comprehensive plan;
(b) evaluate the scientific and technical quality of the comprehensive plan and the effectiveness of the coordinated program;
(c) recommend to the Secretaries, on an annual basis, means of enhancing the comprehensive plan and the coordinated programs; and
(d) submit to the Secretaries annual reports that shall: (1) contain the components specified in paragraphs (b) and (c); and (2) be included in full in the biennial reports of the Secretaries to the President for transmittal to the Congress under section 102(b) of the Act.
Sec. 4. Meetings. The Council shall meet on a regular basis at the call of the Chairperson, or on the written request of one-third of the members. A majority of the appointed members of the Council shall constitute a quorum.
Sec. 5. Administration. (a) The heads of executive departments, agencies, and independent instrumentalities shall, to the extent permitted by law, provide the Council, upon request, with such information as it may require for the purposes of carrying out its functions.
(b) Members of the Council shall serve without compensation for their work on the Council. While engaged in the work of the Council, members appointed from among private citizens of the United States may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by law for persons serving intermittently in the Government service (5 U.S.C. 5701-5707). Appointed members of the Council may not be employed by the Federal Government.
(c) To the extent provided by law and subject to the availability of appropriations, the Department of Agriculture shall provide the Council with such administrative services, funds, facilities, staff, and other support services as may be necessary for the performance of its functions.
Sec. 6. General provision. Notwithstanding the provisions of any other Executive order, the functions of the President under the Federal Advisory Committee Act that are applicable to the Council shall be performed by the Secretary of Agriculture, in accordance with guidelines and procedures established by the Administrator of General Services.
Sec. 7. The Council shall terminate 10 years after the final comprehensive plan is prepared under section 103 of the Act.
GEORGE BUSH
THE WHITE HOUSE,
January 25, 1991.
03 CFR EO 12748
03 CFR Executive Order 12748 of February 1, 1991
Executive Order 12748 of February 1, 1991
03 CFR Providing for Federal Pay Administration
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Federal Employees Pay Comparability Act of 1990 (hereinafter ''FEPCA''), as incorporated in section 529 of Public Law 101-509, and sections 3301 and 3302 of title 5, United States Code, it is hereby ordered as follows:
Section 1. Annual Adjustments to Pay Schedules. The following agencies are designated under section 5303(g) of title 5, United States Code, as amended by FEPCA, to prescribe conversion rules for the initial adjustment of rates of pay to be applied during each annual adjustment of pay schedules under section 5303 of title 5, United States Code:
(a) the Office of Personnel Management, for the General Schedule;
(b) the Department of State, for the Foreign Service Schedule; and
(c) the Department of Veterans Affairs, for the Veterans Health Services and Research Administration Schedules.
Sec. 2. Locality-based Comparability Payments. (a) The Secretary of Labor, the Director of the Office of Management and Budget, and the Director of the Office of Personnel Management are hereby designated under section 5304(d)(1) of title 5, United States Code, as amended by FEPCA, to serve jointly as the President's agent under section 5304 of title 5, United States Code, and shall be known in this capacity as the President's Pay Agent.
(b) The head of each executive agency employing personnel under a statutory pay system, as defined in section 5303(1) of title 5, United States Code, as amended by FEPCA, shall provide such information and assistance as may be requested by the President's Pay Agent in carrying out the provisions of section 5304 of title 5, United States Code.
Sec. 3. Special Pay Authority. (a) The Office of Personnel Management is hereby authorized and designated, pursuant to section 5305(a) of title 5, United States Code, as amended by section 101 of FEPCA, to exercise the authorities of the President under section 5305 of title 5, United States Code, concerning higher rates of pay.
(b) Before exercising the delegated authorities under subsection (a) regarding employees in positions other than those covered by the General Schedule, the Office of Personnel Management shall consult with the head of the agency employing such employees.
Sec. 4. Previous Order Revoked. Executive Order No. 11721, as amended, is revoked.
Sec. 5. Advance Payments for New Appointees. Section 2(b) of Executive Order No. 10982, as amended, is further amended to read as follows:
''(b) The Office of Personnel Management is hereby designated and empowered to perform the functions conferred upon the President by the provisions of section 5527 of title 5, United States Code, with respect to allotments and assignments authorized by section 5525 of title 5, United States Code, and advance payments to new appointees authorized by section 5524a of title 5, United States Code, as added by section 107(a) of the Federal Employees Pay Comparability Act of 1990, as incorporated in section 529 of Public Law 101-509.''
Sec. 6. Extension of Cash Awards, Recruitment and Relocation Bonuses, and Retention Allowances. The Office of Personnel Management is hereby designated and empowered to exercise the authority of the President under:
(a) section 4505a(d) of title 5, United States Code, as added by section 207(a) of FEPCA, concerning the application of performance-based cash awards to noncovered categories of employees;
(b) section 5753(e) of title 5, United States Code, as added by section 208 of FEPCA, concerning the application of recruitment and relocation bonuses to noncovered categories of employees; and
(c) section 5754(e) of title 5, United States Code, as added by section 208 of FEPCA, concerning the application of retention allowances to noncovered categories of employees.
Sec. 7. Staffing Differentials. The Office of Personnel Management is hereby designated and empowered to exercise the authority of the President under section 209 of FEPCA to establish staffing differentials.
Sec. 8. Executive Assignment System. (a) Civil Service Rule 9 (5 CFR Part 9), as established by Executive Order No. 11315, as amended, is revoked.
(b) The Office of Personnel Management shall take such actions as the Office may determine to be necessary to provide for the orderly termination of the Executive Assignment System.
Sec. 9. Effective Dates. (a) Except as otherwise provided by Public Law 101-509, the provisions of subchapter I of chapter 53 of title 5, United States Code, as amended by section 101 of FEPCA, and the provisions of sections 1 through 4 of this order shall take effect on February 3, 1991.
(b) Except as otherwise provided by Public Law 101-509, the remaining provisions of FEPCA and of this order shall take effect on May 4, 1991, except that the Office of Personnel Management may establish an earlier effective date, but not earlier than February 3, 1991, for any such provisions with respect to which the Office determines an earlier effective date is appropriate.
GEORGE BUSH
THE WHITE HOUSE,
February 1, 1991.
03 CFR EO 12749
03 CFR Executive Order 12749 of February 4, 1991
Executive Order 12749 of February 4, 1991
03 CFR Additions to Level IV of the Executive Schedule
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 5317 of title 5 of the United States Code, and in order to place additional positions in Level IV of the Executive Schedule, Section 1-101 of Executive Order No. 12154, as amended, is further amended by adding thereto the following new subsections:
''(h) Director, Office for Victims of Crime, Department of Justice.
''(i) Director, Bureau of Justice Assistance, Department of Justice.''
GEORGE BUSH
THE WHITE HOUSE,
February 4, 1991.
03 CFR EO 12750
03 CFR Executive Order 12750 of February 14, 1991
Executive Order 12750 of February 14, 1991
03 CFR Designation of Arabian Peninsula Areas, Airspace, and Adjacent Waters as the Persian Gulf Desert Shield Area
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 7508 of the Internal Revenue Code of 1986 (26 U.S.C. 7508), I hereby designate, for purposes of that section, the following locations, including the air space above such locations, as the Persian Gulf Desert Shield area in which any individual who performed Desert Shield services (including the spouse of such individual) is entitled to the benefits of section 7508 of the Internal Revenue Code of 1986:
-- the Persian Gulf -- the Red Sea -- the Gulf of Oman -- that portion of the Arabian Sea that lies north of 10 degrees
north latitude and west of 68 degrees east longitude
-- the Gulf of Aden -- the total land area of Iraq, Kuwait, Saudi Arabia, Oman,
Bahrain, Qatar, and the United Arab Emirates.
GEORGE BUSH
THE WHITE HOUSE,
February 14, 1991.
03 CFR EO 12751
03 CFR Executive Order 12751 of February 14, 1991
Executive Order 12751 of February 14, 1991
03 CFR Health Care Services for Operation Desert Storm
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the National Emergencies Act (50 U.S.C. 1601 et seq.), section 5011A of title 38 of the United States Code, and pursuant to the national emergency declared with respect to Iraq in Executive Order No. 12722 of August 2, 1990, it is hereby ordered that, in the event that the Department of Veterans Affairs is requested by the Department of Defense to furnish care and services to members of the United States Armed Forces on active duty in Operation Desert Storm, the Secretary of Veterans Affairs may, pursuant to this order, enter into contracts with private facilities for the provision of hospital care and medical services for veterans to the fullest extent authorized by section 5011A(b)(1)-(2) of title 38 of the United States Code.
GEORGE BUSH
THE WHITE HOUSE,
February 14, 1991.
03 CFR EO 12752
03 CFR Executive Order 12752 of February 25, 1991
Executive Order 12752 of February 25, 1991
03 CFR Implementation of the Agricultural Trade Development and Assistance Act of 1954, as Amended, and the Food for Progress Act of 1985, as Amended
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Agricultural Trade Development and Assistance Act of 1954, as amended by Public Law 101-624 (''Agricultural Trade Development Act''), the Food for Progress Act of 1985, as amended by Public Law 101-624 (''Food for Progress Act''), and section 301 of title 3 of the United States Code, it is hereby ordered as follows:
Section 1. Establishment of Programs. There is hereby established:
(a) a program under title I of the Agricultural Trade Development Act to provide for the sale of agricultural commodities to developing countries. Such program shall be implemented by the Secretary of Agriculture (hereafter referred to as the ''Secretary'').
(b) a program under title II of the Agricultural Trade Development Act to provide for the donation of agricultural commodities to foreign countries. Such program shall be implemented by the Administrator of the Agency for International Development (hereafter referred to as the ''Administrator'').
(c) a program under title III of the Agricultural Trade Development Act to provide for the donation of agricultural commodities to least developed countries. Such program shall be implemented by the Administrator.
Sec. 2. International Negotiations and Accounting for Foreign Currencies. (a) The Secretary with respect to title I, and the Administrator with respect to titles II and III of the Agricultural Trade Development Act, shall negotiate and execute agreements under the Agricultural Trade Development Act in accord with section 112b of title I of the United States Code and applicable regulations and procedures of the Department of State.
(b)(1) Foreign currencies that accrue to the United States under titles I and III of the Agricultural Trade Development Act may be used for the purposes set forth in section 104 and section 306 of that Act, respectively, in amounts consistent with applicable provisions of law and agreements. Such foreign currencies shall be subject to regulations of the Department of the Treasury governing the purchase, custody, deposit, transfer, and sale of foreign currencies received under the Agricultural Trade Development Act.
(2) The Director of the Office of Management and Budget (hereafter referred to as the ''Director'') shall determine the amount of foreign currencies to be used for the purposes of section 104(c)(8) of the Agricultural Trade Development Act, and such purposes shall be carried out by the agencies with authority to pay the obligations abroad. The purposes of the remaining paragraphs of section 104(c) of that Act shall be carried out by the Department of Agriculture, utilizing, where appropriate, the expertise of other agencies.
(3) The Secretary and Administrator shall transmit the reports required by the provisions of paragraph 5 of the Act of August 13, 1957 (71 Stat. 345; 7 U.S.C. 1704a), as related to the use of foreign currencies accruing under title I and title III of the Agricultural Trade Development Act, respectively.
Sec. 3. Policy Coordination. (a) To ensure policy coordination of assistance provided under the Agricultural Trade Development Act and the Food for Progress Act, there is hereby established a Food Assistance Policy Council (hereafter referred to as the ''Council'').
(b) The Council will include senior representatives of the Department of Agriculture, the Agency for International Development, the Department of State, and the Office of Management and Budget. Meetings of the Council shall be called by the Secretary or his designee at the request of any senior representative of the Council.
(c) The Council shall advise the President on appropriate policies under the Agricultural Trade Development Act and the Food for Progress Act and shall coordinate decisions on allocations and other policy issues, as well as prepare the report required by section 407(g)(1) of the Agricultural Trade Development Act.
(d) As necessary for effective coordination, the Council shall provide its advice to the President through the appropriate Cabinet-level body.
Sec. 4. Delegation of Responsibilities. (a) The consultation required by section 401(a) of the Agricultural Trade Development Act shall be undertaken through the Council.
(b) The function conferred upon the President in section 403(j) of the Agricultural Trade Development Act is hereby delegated to the Secretary of State.
(c) The function conferred upon the President by section 407(h) of the Agricultural Trade Development Act is hereby delegated to the Administrator.
(d) The functions conferred upon the President by section 411 of the Agricultural Trade Development Act are hereby delegated to the Secretary, in consultation with the Council and the Department of the Treasury.
(e) The functions conferred upon the President by section 412(c) of the Agricultural Trade Development Act are hereby delegated to the Director, who shall consult with the Council on these functions.
(f) The functions conferred upon the President by title V of the Agricultural Trade Development Act are hereby delegated to the Administrator.
(g) The functions conferred upon the President by the Food for Progress Act, as amended, are hereby delegated to the Secretary.
Sec. 5. Regulatory Review. Policies, regulations, and analyses required by this Executive order shall be fully consistent with the standards and criteria, analyses and procedures set forth in Executive Order Nos. 12291 and 12498.
Sec. 6. Revocations. Executive Order No. 12220 of June 27, 1980, and Executive Order No. 12583 of February 19, 1987, are revoked.
GEORGE BUSH
THE WHITE HOUSE,
February 25, 1991.
03 CFR EO 12753
03 CFR Executive Order 12753 of March 8, 1991
Executive Order 12753 of March 8, 1991
03 CFR Nuclear Cooperation With EURATOM
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 126a(2) of the Atomic Energy Act of 1954, as amended (42 U.S.C. 2155(a)(2)), and having determined that, upon the expiration of the period specified in the first proviso to section 126a(2) of such Act and extended for 12-month periods by Executive Orders Nos. 12193, 12295, 12351, 12409, 12463, 12506, 12554, 12587, 12629, 12670, and 12706, failure to continue peaceful nuclear cooperation with the European Atomic Energy Community would be seriously prejudicial to the achievement of United States non-proliferation objectives and would otherwise jeopardize the common defense and security of the United States, and having notified the Congress of this determination, I hereby extend the duration of that period to March 10, 1992. Executive Order No. 12706 shall be superseded on the effective date of this Executive order.
GEORGE BUSH
THE WHITE HOUSE,
March 8, 1991.
Editorial note: For the President's letter to Congressional leaders on nuclear cooperation with EURATOM, see the Weekly Compilation of Presidential Documents (vol. 27, p. 269).
03 CFR EO 12754
03 CFR Executive Order 12754 of March 12, 1991
Executive Order 12754 of March 12, 1991
03 CFR Establishing the Southwest Asia Service Medal
By the authority vested in me as President by the Constitution and the laws of the United States of America, including my authority as Commander in Chief of the Armed Forces of the United States, it is hereby ordered as follows:
Section 1. There is established, with suitable appurtenances, the Southwest Asia Service Medal. It may be awarded to members of the Armed Forces of the United States who participated in military operations in Southwest Asia or in the surrounding contiguous waters or air space on or after August 2, 1990, and before a terminal date to be prescribed by the Secretary of Defense.
Sec. 2. The Southwest Asia Service Medal may be awarded posthumously to any person covered by, and under the circumstances described in, section 1 of this order.
Sec. 3. The Secretaries of the Military Departments, with the approval of the Secretary of Defense, and the Secretary of Transportation with respect to the Coast Guard when it is not operating as a service in the Navy, are directed to prescribe uniform regulations governing the award and wearing of the Southwest Asia Service Medal.
GEORGE BUSH
THE WHITE HOUSE,
March 12, 1991.
03 CFR EO 12755
03 CFR Executive Order 12755 of March 12, 1991
Executive Order 12755 of March 12, 1991
03 CFR Administration of Export Controls
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Export Administration Act of 1969, as amended (50 U.S.C. App. 2401 et seq.), and in order to amend Executive Order No. 12002, it is hereby ordered as follows:
Section 1. Section 3 of Executive Order No. 12002 is amended to read as follows: ''The Export Administration Review Board, hereinafter referred to as the Board, which was established by Executive Order No. 11533 of June 4, 1970, as amended, is hereby continued. The Board shall continue to have as its members, the Secretary of Commerce, who shall be Chairman of the Board, the Secretary of State, and the Secretary of Defense. The Secretary of Energy and the Director of the United States Arms Control and Disarmament Agency shall be members of the Board, and shall participate in meetings that consider issues involving nonproliferation of armaments and other issues within their respective statutory and policy-making authorities. The Chairman of the Joint Chiefs of Staff and the Director of Central Intelligence shall be non-voting members of the Board. No alternate Board members shall be designated, but the acting head or deputy head of any department or agency may serve in lieu of the head of the concerned department or agency. The Board may invite the heads of other United States Government departments or agencies, other than the agencies represented by the Board members, to participate in the activities of the Board when matters of interest to such departments or agencies are under consideration.''
Sec. 2. Section 4 of Executive Order No. 12002 is amended by adding in the third sentence between ''national security,'' and ''and the domestic economy,'' the words ''concerns about the nonproliferation of armaments,''.
Sec. 3. This order shall take effect immediately.
GEORGE BUSH
THE WHITE HOUSE,
March 12, 1991.
03 CFR EO 12756
03 CFR Executive Order 12756 of March 18, 1991
Executive Order 12756 of March 18, 1991
03 CFR Continuance of the President's Drug Advisory Council
By the authority vested in me as President by the Constitution and the laws of the United States of America, and in accordance with the provisions of the Federal Advisory Committee Act, as amended (5 U.S.C. App. 2), it is hereby ordered as follows:
Section 1. The President's Drug Advisory Council, established by Executive Order No. 12696, is continued until November 13, 1993.
Sec. 2. The second sentence of Section 1(a) of Executive Order No. 12696 is amended by deleting ''30'' and inserting ''35'' in lieu thereof.
GEORGE BUSH
THE WHITE HOUSE,
March 18, 1991.
03 CFR EO 12757
03 CFR Executive Order 12757 of March 19, 1991
Executive Order 12757 of March 19, 1991
03 CFR Implementation of the Enterprise for the Americas Initiative
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Agricultural Trade Development and Assistance Act of 1954 (''Act''), as amended by section 1512 of Public Law 101-624, it is hereby ordered as follows:
Section 1. The functions vested in the President by sections 603, 604, 611, and 614 of the Act are delegated to the Secretary of the Treasury (''Secretary''), who shall exercise such functions in accordance with recommendations of the National Advisory Council on International Monetary and Financial Policies (''Council''), as established by Executive Order No. 11269 of February 14, 1966. The Secretary of State, when necessary, shall report to the Council regarding the need to review the implementation of environmental programs pursuant to section 611 of the Act.
Sec. 2. (a) For purposes of section 1 of this order only, the membership of the Council shall be expanded to include the following: the Secretary of Agriculture, the Director of the Office of Management and Budget, the Chairman of the Council of Economic Advisers, the Chairman of the Council on Environmental Quality, and the Administrator of the Environmental Protection Agency.
(b) Whenever matters being considered by the Council may be of interest to an agency not represented on the Council, the chairperson may invite a representative of such agency to participate in meetings and deliberations of the Council.
(c) In the event of a disagreement among agencies represented on the Council, the Secretary shall refer the issue to the appropriate Cabinet-level body designated by the President.
Sec. 3. (a) The functions vested in the President by section 607 of the Act are delegated to the Secretary of State, in consultation with the Department of the Treasury, the Department of Agriculture, the Department of Commerce, the Council on Environmental Quality, the Environmental Protection Agency, the Agency for International Development, and any other agency determined by the Secretary of State to have an interest in an environmental framework agreement.
(b) Pursuant to section 610(c) of the Act, the Environment for the Americas Board shall also advise the Secretary of State on the negotiations of the environmental framework agreements.
(c) The Secretary of State shall ensure that the elements and requirements for the Administering Bodies established in section 607(c) of the Act shall be included in the environmental framework agreements.
Sec. 4. (a) The five U.S. Government members of the Environment for the Americas Board (''Board'') established by section 610 of the Act shall be representatives from the Department of State, the Department of the Treasury, the Environmental Protection Agency, the Agency for International Development, and the Inter-American Foundation.
(b) The Department of Commerce, the Department of Agriculture, and other appropriate agencies may each send representatives to the meetings of the Board, and such representatives may participate in the activities of the Board.
(c) The representative from the Department of the Treasury shall be the chairperson of the Board. The representative from the Department of State shall be the vice chairperson of the Board. The representative from the Environmental Protection Agency shall serve as secretary of the Board.
(1) The chairperson shall be responsible for presiding over the
meetings of the Board, ensuring that the views of all other participants are taken into account, and coordinating with other appropriate agencies in assisting the Board in its review of the fiscal audits conducted pursuant to section 607(c)(4) of the Act.
(2) The vice chairperson shall be responsible for serving as
liaison between the Board and local governments, local nongovernmental organizations, and the local Administering Bodies in Latin America and the Caribbean, and for coordinating the international activities related to programs funded under the Act.
(3) The secretary of the Board shall be responsible for
coordinating the preparation of materials for Board discussion, including the technical reviews of the annual programs and reports required to be submitted to the Board under section 607(c)(5) and (c)(6) of the Act, and for preparing official minutes of Board discussions.
(d) The four private nongovernmental organization members of the Board shall be chosen by the President.
Sec. 5. No new agreement under Title I of the Agricultural Trade Development and Assistance Act of 1954, as amended by section 1512 of Public Law 101-624, and no new credit agreement under the Food for Progress Act of 1985 shall be entered into with any country that is in default with respect to the payment of principal or interest on any obligation issued pursuant to section 604 of the Act unless such country meets its obligations or unless the President so authorizes.
Sec. 6. This order is intended only to improve the internal management of the executive branch and is not intended to create any right or benefit, substantive or procedural, enforceable at law by a party against the United States, its agencies, its officers, or any person.
GEORGE BUSH
THE WHITE HOUSE,
March 19, 1991.
03 CFR EO 12758
03 CFR Executive Order 12758 of April 5, 1991
Executive Order 12758 of April 5, 1991
03 CFR Addition to Level IV of the Executive Schedule
By the authority vested in me as President by the Constitution and laws of the United States of America, including section 5317 of title 5 of the United States Code, and in order to place an additional position in Level IV of the Executive Schedule, it is hereby ordered that section 1-101 of Executive Order No. 12154, as amended, is further amended by adding the following new subsection:
''(j) Director of the National Institutes of Health.''
GEORGE BUSH
THE WHITE HOUSE,
April 5, 1991.
03 CFR EO 12759
03 CFR Executive Order 12759 of April 17, 1991
Executive Order 12759 of April 17, 1991
03 CFR Federal Energy Management
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Energy Policy and Conservation Act, as amended (Public Law 94-163, 89 Stat. 871, 42 U.S.C. 6201 et seq.), the Motor Vehicle Information and Cost Savings Act, as amended (15 U.S.C. 1901 et seq.), section 205(a) of the Federal Property and Administrative Services Act, as amended (40 U.S.C. 486(a)), and section 301 of title 3 of the United States Code, it is hereby ordered as follows:
Section 1. Federal Energy Efficiency Goals for Buildings. Each agency shall develop and implement a plan to meet the 1995 energy management goals of the National Energy Conservation Policy Act, as amended, 42 U.S.C. 8251 et seq. , and by the year 2000 reduce overall energy use of Btu's per gross square foot of the Federal buildings it operates, taking into account utilization, by 20 percent from 1985 energy use levels, to the extent that these measures minimize life cycle costs and are cost-effective in accordance with 10 CFR Part 436.
Sec. 2. Federal Energy Efficiency Goals for Other Facilities. Each agency will prescribe policies under which its industrial facilities in the aggregate increase energy efficiency by at least 20 percent in fiscal year 2000 in comparison to fiscal year 1985, to the extent that these measures minimize life cycle costs and are cost-effective in accordance with 10 CFR Part 436. Each agency shall establish appropriate indicators of energy efficiency to comply with this section.
Sec. 3. Minimization of Petroleum Use in Federal Facilities. Each agency using petroleum products for facilities operations or building purposes shall seek to minimize such use through switching to an alternative energy source if it is estimated to minimize life cycle costs and which will not violate Federal, State, or local clean air standards. In addition, each agency shall survey its buildings and facilities to determine where the potential for a dual fuel capability exists and shall provide dual fuel capability where practicable.
Sec. 4. Implementation Strategies. (a) Except as provided by paragraph (b) and (c) of this section, each agency shall adopt an implementation strategy, consistent with the provisions of this order, to achieve the goals established in sections 1, 2, and 3. That strategy should include, but not be limited to, changes in procurement practices, acquisition of real property, participation in demand side management services and shared savings agreements offered by private firms, and investment in energy efficiency measures. The mix and balance among such measures shall be established in a manner most suitable to the available resources and particular circumstances in each agency.
(b) The Secretary of Defense may, if he determines it to be in the national interest, issue regulations exempting from compliance with the requirements of this order, any weapons, equipment, aircraft, vehicles, or other classes or categories of real or personal property which are owned or operated by the Armed Forces of the United States (including the Coast Guard) or by the National Guard of any State and which are uniquely military in nature.
(c) The Secretary of the Treasury and the Attorney General, consistent with their protective and law enforcement responsibilities, shall determine the extent to which the requirements of this order shall apply to the protective and law enforcement activities of their respective agencies.
Sec. 5. Procurement of Energy Efficient Goods and Products. In order to assure the purchase of energy efficient goods and products, each agency shall select for procurement those energy consuming goods or products which are the most life cycle cost-effective, pursuant to the requirements of the Federal Acquisition Regulation. To the extent practicable, each agency shall require vendors of goods to provide appropriate data that can be used to assess the life cycle costs of each good or product, including building energy system components, lighting systems, office equipment, and other energy using equipment.
Sec. 6. Participation in Demand Side Management Services. Each agency shall review its procedures used to acquire utility and other related services, and to the extent practicable and consistent with its strategy established pursuant to section 4, remove any impediments to receiving, utilizing, and taking demand side management services, incentives, and rebates offered by utilities and other private sector energy service providers.
Sec. 7. Energy Efficiency Requirement for Current Federal Building Space. Each agency occupying space in Federal buildings shall implement the applicable rules and regulations regarding Federal property and energy management.
Sec. 8. Energy Efficiency Requirements for Newly Constructed Federal Buildings. Each agency responsible for the construction of a new Federal building shall ensure that the building is designed and constructed to comply with the energy performance standards applicable to Federal residential and commercial buildings as set forth in 10 CFR Part 435. Each agency shall establish certification procedures to implement this requirement.
Sec. 9. Vehicle Fuel Efficiency Outreach Programs. Each agency shall implement outreach programs including, but not limited to, ride sharing and employee awareness programs to reduce the petroleum fuel usage by Federal employees and by contractor employees at Government-owned, contractor-operated facilities.
Sec. 10. Federal Vehicle Fuel Efficiency. Consistent with its mission requirements, each agency operating 300 or more commercially designed motor vehicles domestically shall develop a plan to reduce motor vehicle gasoline and diesel consumptions by at least 10 percent by 1995 in comparison with fiscal year 1991. The Administrator of General Services, in consultation with the Secretary of Energy, shall issue appropriate guidance to assist agencies in meeting this goal. This guidance shall include guidance concerning vehicles to be covered, the use of alternative/blended fuels, initiatives to improve fuel efficiency of the existing fleet, the use of modified energy life cycle costing consistent with life cycle costing methods in 10 CFR 436, and limitations on vehicle type and engine size to be acquired. Each agency electing to use alternative fuel motor vehicles shall receive credit for such use.
Sec. 11. Procurement of Alternative Fueled Vehicles. The Secretary of Energy, with the cooperation of other appropriate agencies, and consistent with other Federal law, shall ensure that the maximum number practicable of vehicles acquired annually are alternative fuel vehicles as required by the Alternative Motor Fuels Act of 1988 (42 U.S.C. 6374). Subject to availability of appropriations for this purpose, the maximum number practicable of alternative fuel vehicles produced by original equipment vehicle manufacturers shall be acquired by the end of model year 1995.
Sec. 12. Federal Funding. Within approved agency budget totals, each agency head shall work to achieve the goals set forth in this order. To the extent that available resources fall short of requirements, agency heads shall rank energy efficiency investments in descending order of the savings-to-investment ratios, or their adjusted internal rate of return to establish priority.
Sec. 13. Annual Reports. The head of each agency shall report annually to the Secretary of Energy, in a format specified by the Secretary after consultation with the heads of affected agencies, on progress in achieving the goals of this Executive order with respect to Federal buildings, facilities, and vehicles subject to this order. The Secretary of Energy will prepare a consolidated report to the President annually on the implementation of this order.
Sec. 14. Definitions. For the purpose of this order --
(a) the term ''energy use'' means the energy that is used at a building or facility and measured in terms of energy delivered to the building or facility;
(b) the term ''Federal building'' means any building in the United States which is controlled by the Federal Government for its use.
GEORGE BUSH
THE WHITE HOUSE,
April 17, 1991.
Editorial note: For the President's remarks on signing Executive Order 12759, see the Weekly Compilation of Presidential Documents (vol. 27, p. 455). For his remarks on the national energy strategy, see pp. 1031 and 1517.
03 CFR EO 12760
03 CFR Executive Order 12760 of May 2, 1991
Executive Order 12760 of May 2, 1991
03 CFR President's Commission on Executive Exchange
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:
Section 1. The President's Commission on Executive Exchange is hereby abolished. The Director of the Office of Personnel Management shall be responsible for terminating the functions of the Commission, which shall be completed no later than September 30, 1991.
Sec. 2. Executive Order No. 12493 of December 5, 1984 is revoked.
GEORGE BUSH
THE WHITE HOUSE,
May 2, 1991.
03 CFR EO 12761
03 CFR Executive Order 12761 of May 21, 1991
Executive Order 12761 of May 21, 1991
03 CFR Establishment of the President's Environment and Conservation Challenge Awards
By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to establish, in accordance with the goals and purposes of the National Environmental Policy Act of 1969, as amended (42 U.S.C. 4321 et seq.), the Environmental Quality Improvement Act of 1970, as amended (42 U.S.C. 4371 et seq.), and the National Environmental Education Act, Public Law 101-619, 104 Stat. 3325 (1990), an awards program to raise environmental awareness and to recognize outstanding achievements in the United States and in its territories in the areas of conservation and environmental protection by both the public and private sectors, it is hereby ordered as follows:
Section 1. Establishment. The President's Environment and Conservation Challenge Awards program is established for the purposes of recognizing outstanding environmental achievements by U.S. citizens, enterprises, or programs; providing an incentive for environmental accomplishment; promoting cooperative partnerships between diverse groups working together to achieve common environmental goals; and identifying successful environmental programs that can be replicated.
Sec. 2. Administration. (a) The Council on Environmental Quality, with the assistance of the President's Commission on Environmental Quality, shall organize, manage, and administer the awards program, including the development of selection criteria, the nomination of eligible individuals to receive the award, and the selection of award recipients.
(b) Any expenses of the program shall be paid from funds available for the expenses of the Council on Environmental Quality.
Sec. 3. Awards. (a) Up to three awards in each of the following four categories shall be made annually to eligible individuals, organizations, groups, or entities:
(i) Quality Environmental Management Awards (incorporation of environmental concerns into management decisions and practices);
(ii) Partnership Awards (successful coalition building efforts);
(iii) Innovation Awards (innovative technology programs, products, or processes); and
(iv) Education and Communication Awards (education and information programs contributing to the development of an ethic fostering conservation and environmental protection).
(b) Presidential citations shall be given to eligible program finalists who demonstrate notable or unique achievements, but who are not selected to receive awards.
Sec. 4. Eligibility. Only residents of the United States and organizations, groups, or entities doing business in the United States are eligible to receive an award under this program. An award under this program shall be given only for achievements in the United States or its territories. Organizations, groups, or entities may be profit or nonprofit, public or private entities.
Sec. 5. Information System. The Council on Environmental Quality shall establish and maintain a data bank with information about award nominees to catalogue and publicize model conservation or environmental protection programs which could be replicated.
GEORGE BUSH
THE WHITE HOUSE,
May 21, 1991.
Editorial note: For the President's remarks on presenting the Environment and Conservation Challenge Awards, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1549).
03 CFR EO 12762
03 CFR Executive Order 12762 of June 4, 1991
Executive Order 12762 of June 4, 1991
03 CFR Amendment Relating to Basic Allowance for Quarters
By the authority vested in me as President by the Constitution and the laws of the United States of America, and in accordance with section 403(j)(1) of title 37 of the United States Code, it is hereby ordered as follows:
Section 403(a) of Executive Order No. 11157, June 22, 1964, as amended, is amended --
(1) by striking out ''seven consecutive days'' and inserting in lieu thereof ''thirty consecutive days''; and
(2) by striking out ''7-day'' both places it appears and inserting in lieu thereof ''30-day''.
GEORGE BUSH
THE WHITE HOUSE,
June 4, 1991.
03 CFR EO 12763
03 CFR Executive Order 12763 of June 4, 1991
Executive Order 12763 of June 4, 1991
03 CFR Facilitating the Operation of the Advisory Commission on Conferences in Ocean Shipping
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 301 of title 3, United States Code, and in order to facilitate the operation of the Advisory Commission on Conferences in Ocean Shipping (''Commission''), established by section 18 of the Shipping Act of 1984 (46 U.S.C. App. 1717(d)), it is hereby ordered that the Secretary of Transportation shall perform all of the President's functions under the Federal Advisory Committee Act, as amended (5 U.S.C. App.), that relate to the Commission, except that of receiving the Commission's report.
GEORGE BUSH
THE WHITE HOUSE,
June 4, 1991.
03 CFR EO 12764
03 CFR Executive Order 12764 of June 5, 1991
Executive Order 12764 of June 5, 1991
03 CFR Federal Salary Council
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 5304(e) of title 5, United States Code, as amended, and in order to establish, in accordance with the provisions of the Federal Advisory Committee Act, as amended (5 U.S.C. App.), an advisory committee on locality-based comparability payments for General Schedule employees, it is hereby ordered as follows:
Section 1. Establishment. There is established a Federal Salary Council (the ''Council''). The Council shall be composed of nine members appointed by the President in accordance with section 5304(e)(1) of title 5, United States Code. The President shall designate one of the members to serve as Chairman of the Council and shall designate another member to serve as Vice Chairman of the Council. The Vice Chairman shall act as Chairman in the absence of the Chairman.
Sec. 2. Function. The Council shall meet with the President's Pay Agent, as designated under section 2(a) of Executive Order No. 12748 of February 1, 1991, to provide views and recommendations regarding:
(a) the establishment or modification of pay localities;
(b) the coverage of annual surveys conducted by the Bureau of Labor Statistics under subsection 5304(d)(1)(A) of title 5, United States Code (including, but not limited to, the occupations, establishment sizes, and industries to be surveyed, and how pay localities are to be surveyed);
(c) the process of comparing the rates of pay payable under the General Schedule with rates of pay for the same levels of work performed by non-Federal workers; and
(d) the level of comparability payments that should be paid in order to eliminate or reduce pay disparities in accordance with the requirements of section 5304 of title 5, United States Code.
Sec. 3. Administration. (a) Members of the Council shall receive no pay by reason of their service on the Council.
(b) To the extent permitted by law and subject to the availability of appropriations, the Office of Personnel Management (the ''Office'') shall provide such facilities and administrative support to the Council as the Director of the Office determines appropriate.
(c) Notwithstanding the provisions of any other Executive order, the functions of the President under the Federal Advisory Committee Act, as amended, except that of reporting to the Congress, which are applicable to the Council, shall be performed by the Director of the Office, in accordance with the guidelines and procedures established by the Administrator of General Services.
GEORGE BUSH
THE WHITE HOUSE,
June 5, 1991.
03 CFR EO 12765
03 CFR Executive Order 12765 of June 11, 1991
Executive Order 12765 of June 11, 1991
03 CFR Delegation of Certain Defense Related Authorities of the President to the Secretary of Defense
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 301 of title 3 of the United States Code, and my authority as Commander in Chief of the Armed Forces of the United States, it is hereby ordered as follows:
Section 1. The Secretary of Defense is hereby designated and empowered, without the approval, ratification, or other action by the President, to exercise the authority vested in the President by section 749 of title 10 of the United States Code to assign the command without regard to rank in grade to any commissioned officer otherwise eligible to command when two or more commissioned officers of the same grade or corresponding grades are assigned to the same area, field command, or organization.
Sec. 2. The Secretary of Defense is hereby designated and empowered, without the approval, ratification, or other action by the President, to exercise the authority vested in the President by section 7299a(a) of title 10 of the United States Code to direct that combatant vessels and escort vessels be constructed in a Navy or private yard, as the case may be, if the requirement of the Act of March 27, 1934 (ch. 95, 48 Stat. 503) that the first and each succeeding alternate vessel of the same class be constructed in a Navy yard is inconsistent with the public interest.
Sec. 3. For vessels, and for any major component of the hull or superstructure of vessels to be constructed or repaired for any of the armed forces, the Secretary of Defense is hereby designated and empowered, without the approval, ratification, or other action by the President, to exercise the authority vested in the President by section 7309(b) of title 10 of the United States Code to authorize exceptions to the prohibition in section 7309(a) of title 10 of the United States Code. Such exceptions shall be based on a determination that it is in the national security interest of the United States to authorize an exception. The Secretary of Defense shall transmit notice of any such determination to the Congress, as required by section 7309(b).
Sec. 4. The Secretary of Defense may redelegate the authority delegated to him by this order, in accordance with applicable law.
Sec. 5. This order shall be effective immediately.
GEORGE BUSH
THE WHITE HOUSE,
June 11, 1991.
03 CFR EO 12766
03 CFR Executive Order 12766 of June 18, 1991
Executive Order 12766 of June 18, 1991
03 CFR European Bank for Reconstruction and Development and European Space Agency
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Organizations Immunities Act (22 U.S.C. 288), Reorganization Plan No. 4 of 1965 (5 U.S.C. App.), the European Bank for Reconstruction and Development Act, as incorporated in section 562 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991 (Public Law 101-513, 104 Stat. 1979, 2034) (the ''Act''), and Executive Order No. 11760, and in order to facilitate U.S. participation in the European Bank for Reconstruction and Development and the European Space Agency, it is hereby ordered as follows:
Section 1. The European Bank for Reconstruction and Development, in which the United States participates pursuant to the Act and the Agreement Establishing the European Bank for Reconstruction and Development (29 International Legal Materials 1077 (1990)) (the ''Agreement''), is hereby designated a public international organization entitled to enjoy the privileges, exemptions, and immunities conferred by the International Organizations Immunities Act. This designation is not intended to abridge in any respect the privileges and immunities which such organization has acquired or may acquire by treaty, international agreement, or congressional action. This designation shall not affect in any way the applicability of Chapter VIII of the Agreement.
Sec. 2. Executive Order No. 11269, as amended, is further amended by deleting ''and Multilateral Investment Guarantee Agency'' and inserting in lieu thereof ''Multilateral Investment Guarantee Agency, and European Bank for Reconstruction and Development'' in sections 2(c), 3(d), and 7, respectively.
Sec. 3. Executive Order No. 11760 of January 11, 1974, is amended by striking out ''European Space Research Organization'' and inserting in lieu thereof ''European Space Agency.'' Substituting the European Space Agency for the European Space Research Organization is not intended to abridge in any respect privileges, exemptions, or immunities that the European Space Agency may have acquired or may acquire by treaty, international agreement, or congressional action.
Sec. 4. Section 3 of this order shall be deemed effective as of November 22, 1983.
GEORGE BUSH
THE WHITE HOUSE,
June 18, 1991.
03 CFR EO 12767
03 CFR Executive Order 12767 of June 27, 1991
Executive Order 12767 of June 27, 1991
03 CFR Amendments to the Manual for Courts-Martial, United States, 1984
By the authority vested in me as President by the Constitution of the United States of America and by chapter 47 of title 10 of the United States Code (Uniform Code of Military Justice), in order to prescribe amendments to the Manual for Courts-Martial, United States, 1984, prescribed by Executive Order No. 12473, as amended by Executive Order No. 12484, Executive Order No. 12550, Executive Order No. 12586, and Executive Order No. 12708, it is hereby ordered as follows:
Section 1. Part II of the Manual for Courts-Martial, United States, 1984, is amended as follows:
a. R.C.M. 405(g)(1)(A) is amended to read as follows:
''(A) Witnesses. Except as provided in subsection (g)(4)(A) of this rule, any witness whose testimony would be relevant to the investigation and not cumulative shall be produced if reasonably available. This includes witnesses requested by the accused, if the request is timely. A witness is 'reasonably available' when the witness is located within 100 miles of the situs of the investigation and the significance of the testimony and personal appearance of the witness outweighs the difficulty, expense, delay, and effect on military operations of obtaining the witness' appearance. A witness who is unavailable under Mil. R. Evid. 804(a)(1)-(6) is not 'reasonably available.'''.
b. R.C.M. 405(g)(4)(B) is amended --
(1) in clause (iii) to read as follows:
''(iii) Prior testimony under oath;'';
(2) in clause (iv) to read as follows:
''(iv) Depositions of that witness; and''; and
(3) by adding the following clause at the end thereof:
''(v) In time of war, unsworn statements.''.
c. R.C.M. 701(a)(3)(B) is amended to read as follows:
''(B) To rebut a defense of alibi, innocent ingestion, or lack of mental responsibility, when trial counsel has received timely notice under subsection (b)(1) or (2) of this rule.''.
d. R.C.M. 701(b) is amended --
(1) in subparagraph (1) to read as follows:
''(1) Names of witnesses and statements.
(A) Before the beginning of trial on the merits, the defense shall notify the trial counsel of the names and addresses of all witnesses, other than the accused, whom the defense intends to call during the defense case in chief, and provide all sworn or signed statements known by the defense to have been made by such witnesses in connection with the case.
(B) Upon request of the trial counsel, the defense shall also
(1) provide the trial counsel with the names and addresses of any witnesses whom the defense intends to call at the presentencing proceedings under R.C.M. 1001(c); and
(2) permit the trial counsel to inspect any written material that will be presented by the defense at the presentencing proceeding.'';
(2) in subparagraph (2) to read as follows:
''(2) Notice of certain defenses. The defense shall notify the trial counsel before the beginning of trial on the merits of its intent to offer the defense of alibi, innocent ingestion, or lack of mental responsibility, or its intent to introduce expert testimony as to the accused's mental condition. Such notice by the defense shall disclose, in the case of an alibi defense, the place or places at which the defense claims the accused to have been at the time of the alleged offense, and, in the case of an innocent ingestion defense, the place or places where, and the circumstances under which the defense claims the accused innocently ingested the substance in question, and the names and addresses of the witnesses upon whom the accused intends to rely to establish any such defenses.''; and
(3) in subparagraph (5) to read as follows:
''(5) Inadmissibility of withdrawn defense. If an intention to rely upon a defense under subsection (b)(2) of this rule is withdrawn, evidence of such intention and disclosures by the accused or defense counsel made in connection with such intention is not, in any court-martial, admissible against the accused who gave notice of the intention.''.
e. R.C.M. 705(c)(2) is amended by deleting the first sentence and substituting therefor the following sentence:
''(2) Permissible terms or conditions. Subject to subsection (c)(1)(A) of this rule, subsection (c)(1)(B) of this rule does not prohibit either party from proposing the following additional conditions:''.
f. R.C.M. 705(d) is amended --
(1) by deleting subparagraph (1);
(2) by redesignating subparagraph (2) as subparagraph (1) and amending it to read as follows:
''(1) Negotiation. Pretrial agreement negotiations may be initiated by the accused, defense counsel, trial counsel, the staff judge advocate, convening authority, or their duly authorized representatives. Either the defense or the government may propose any term or condition not prohibited by law or public policy. Government representatives shall negotiate with defense counsel unless the accused has waived the right to counsel.'';
(3) by redesignating subparagraph (3) as subparagraph (2) and amending it to read as follows:
''(2) Formal submission. After negotiation, if any, under subsection (d)(1) of this rule, if the accused elects to propose a pretrial agreement, the defense shall submit a written offer. All terms, conditions, and promises between the parties shall be written. The proposed agreement shall be signed by the accused and defense counsel, if any. If the agreement contains any specified action on the adjudged sentence, such action shall be set forth on a page separate from the other portions of the agreement.'';
(4) by redesignating subparagraph (4) as subparagraph (3) and amending it to read as follows:
''(3) Acceptance. The convening authority may either accept or reject an offer of the accused to enter into a pretrial agreement, or may propose by counteroffer any terms or conditions not prohibited by law or public policy. The decision whether to accept or reject an offer is within the sole discretion of the convening authority. When the convening authority has accepted a pretrial agreement, the agreement shall be signed by the convening authority or by a person, such as the staff judge advocate or trial counsel, who has been authorized by the convening authority to sign.''; and
(5) by redesignating subparagraph (5) as subparagraph (4).
g. R.C.M. 707 is amended to read as follows:
''Rule 707. Speedy trial
(a) In general. The accused shall be brought to trial within 120 days after the earlier of:
(1) Preferral of charges;
(2) The imposition of restraint under R.C.M. 304(a)(2)-(4); or,
(3) Entry on active duty under R.C.M. 204.
(b) Accountability.
(1) In general. The date of preferral of charges, the date on which pretrial restraint under R.C.M. 304(a)(2)-(4) is imposed, or the date of entry on active duty under R.C.M. 204 shall not count for the purpose of computing time under subsection (a) of this rule. The date on which the accused is brought to trial shall count. The accused is brought to trial within the meaning of this rule at the time of arraignment under R.C.M. 904.
(2) Multiple charges. When charges are preferred at different times, accountability for each charge shall be determined from the appropriate date under subsection (a) of this rule for that charge.
(3) Events which affect time periods.
(A) Dismissal or mistrial. If charges are dismissed, or if a mistrial is granted, a new 120-day time period under this rule shall begin on the date of dismissal or mistrial for cases in which there is no repreferral and cases in which the accused is in pretrial restraint. In all other cases, a new 120-day time period under this rule shall begin on the earlier of
(i) the date of repreferral;
(ii) the date of imposition of restraint under R.C.M. 304(a)(2)-(4).
(B) Release from restraint. If the accused is released from pretrial restraint for a significant period, the 120-day time period under this rule shall begin on the earlier of
(i) the date of preferral of charges;
(ii) the date on which restraint under R.C.M. 304(a)(2)-(4) is reimposed; or
(iii) the date of entry on active duty under R.C.M. 204.
(C) Government appeals. If notice of appeal under R.C.M. 908 is filed, a new 120-day time period under this rule shall begin, for all charges neither proceeded on nor severed under R.C.M. 908(b)(4), on the date of notice to the parties under R.C.M. 908(b)(8) or 908(c)(3), unless it is determined that the appeal was filed solely for the purpose of delay with the knowledge that it was totally frivolous and without merit. After the decision of the Court of Military Review under R.C.M. 908, if there is a further appeal to the Court of Military Appeals or, subsequently, to the Supreme Court, a new 120-day time period under this rule shall begin on the date the parties are notified of the final decision of the Court of Military Appeals or, if appropriate, the Supreme Court.
(D) Rehearings. If a rehearing is ordered or authorized by an appellate court, a new 120-day time period under this rule shall begin on the date that the responsible convening authority receives the record of trial and the opinion authorizing or directing a rehearing.
(c) Excludable delays. All periods of time covered by stays issued by appellate courts and all other pretrial delays approved by a military judge or the convening authority shall be excluded when determining whether the period in subsection (a) of this rule has run.
(1) Procedure. Prior to referral, all requests for pretrial delay, together with supporting reasons, will be submitted to the convening authority or, if authorized under regulations prescribed by the Secretary concerned, to a military judge for resolution. After referral, such requests for pretrial delay will be submitted to the military judge for resolution.
(2) Motions. Upon accused's timely motion to a military judge under R.C.M. 905 for speedy trial relief, counsel should provide the court a chronology detailing the processing of the case. This chronology should be made part of the appellate record.
(d) Remedy. A failure to comply with the right to a speedy trial will result in dismissal of the affected charges. This dismissal will be with or without prejudice to the government's right to reinstitute court-martial proceedings against the accused for the same offense at a later date. The charges must be dismissed with prejudice where the accused has been deprived of his or her constitutional right to a speedy trial. In determining whether to dismiss charges with or without prejudice, the court shall consider, among others, each of the following factors: the seriousness of the offense; the facts and circumstances of the case that lead to dismissal; the impact of a reprosecution on the administration of justice; and any prejudice to the accused resulting from the denial of a speedy trial.
(e) Waiver. Except as provided in R.C.M. 910(a)(2), a plea of guilty which results in a finding of guilty waives any speedy trial issue as to that offense.''.
h. R.C.M. 802(c) is amended to read as follows:
''(c) Rights of Parties. No party may be prevented under this rule from presenting evidence or from making any argument, objection, or motion at trial.''.
i. R.C.M. 908(b)(4) is amended to read as follows:
''(4) Effect on the court-martial. Upon written notice to the military judge under subsection (b)(3) of this rule, the ruling or order that is the subject of the appeal is automatically stayed and no session of the court-martial may proceed pending disposition by the Court of Military Review of the appeal, except that solely as to charges and specifications not affected by the ruling or order:''.
j. R.C.M. 908(b) is amended by inserting the following new subparagraph at the end thereof:
''(9) Pretrial confinement of accused pending appeal. If an accused is in pretrial confinement at the time the United States files notice of its intent to appeal under subsection (3) above, the commander, in determining whether the accused should be confined pending the outcome of an appeal by the United States, should consider the same factors which would authorize the imposition of pretrial confinement under R.C.M. 305(h)(2)(B).''.
k. R.C.M. 1004(c)(8) is amended to read as follows:
''(8) That, only in the case of a violation of Article 118(4), the accused was the actual perpetrator of the killing or was a principal whose participation in the burglary, sodomy, rape, robbery, or aggravated arson was major and who manifested a reckless indifference for human life;''.
l. R.C.M. 1010 is amended to read as follows:
''In each general and special court-martial, prior to adjournment, the military judge shall ensure that the defense counsel has informed the accused orally and in writing of:
a. The right to submit matters to the convening authority to consider before taking action;
b. The right to appellate review, as applicable, and the effect of waiver or withdrawal of such right;
c. The right to apply for relief from the Judge Advocate General if the case is neither reviewed by a Court of Military Review nor reviewed by the Judge Advocate General under R.C.M. 1201(b)(1); and
d. The right to the advice and assistance of counsel in the exercise of the foregoing rights or any decision to waive them.
The written advice to the accused concerning post-trial and appellate rights shall be signed by the accused and the defense counsel and inserted in the record of trial as an appellate exhibit.''.
m. R.C.M. 1103(b)(2)(D) is amended by --
(1) redesignating clause (iv) as clause (v); and
(2) inserting the following new clause (iv) after clause (iii):
''(iv) The original dated, signed action by the convening authority.''.
n. R.C.M. 1107(f)(1) is amended to read as follows:
''(1) In general. The convening authority shall state in writing and insert in the record of trial the convening authority's decision as to the sentence, whether any findings of guilty are disapproved, and orders as to further disposition. The action shall be signed personally by the convening authority. The convening authority's authority to sign shall appear below the signature.''.
o. R.C.M. 1110(f)(1) is amended to read as follows:
''(1) Waiver. The accused may sign a waiver of appellate review at any time after the sentence is announced. The waiver must be filed within 10 days after the accused or defense counsel is served with a copy of the action under R.C.M. 1107(h). Upon written application of the accused, the convening authority may extend this period for good cause, for not more than 30 days.''
p. R.C.M. 1113(c)(1) is amended in the final paragraph thereof to read as follows:
''A dishonorable or a bad-conduct discharge may be ordered executed only after a final judgment within the meaning of R.C.M. 1209 has been rendered in the case. If on the date of final judgment a servicemember is not on appellate leave and more than 6 months have elapsed since approval of the sentence by the convening authority, before a dishonorable or a bad-conduct discharge may be executed, the officer exercising general court-martial jurisdiction over the servicemember shall consider the advice of that officer's staff judge advocate as to whether retention of the servicemember would be in the best interest of the service. Such advice shall include the findings and sentence as finally approved, the nature and character of duty since approval of the sentence by the convening authority, and a recommendation whether the discharge should be executed.''.
Sec. 2. Part III of the Manual for Courts-Martial, United States, 1984, is amended by adding the following new rule at the end of Section VII thereof:
''Rule 707. Polygraph Examinations.
(a) Notwithstanding any other provision of law, the results of a polygraph examination, the opinion of a polygraph examiner, or any reference to an offer to take, failure to take, or taking of a polygraph examination, shall not be admitted into evidence.
(b) Nothing in this section is intended to exclude from evidence statements made during a polygraph examination which are otherwise admissable.''.
Sec. 3. Part IV of the Manual for Courts-Martial, United States, 1984, is amended as follows:
a. Paragraph 4e is amended to read as follows:
''e. Maximum punishment. Any person subject to the code who is found guilty of an attempt under Article 80 to commit any offense punishable by the code shall be subject to the same maximum punishment authorized for commission of the offense attempted, except that in no case shall the death penalty be adjudged, nor shall any mandatory minimum punishment provisions apply; and in no case, other than attempted murder, shall confinement exceeding 20 years be adjudged.''.
b. Paragraph 19 is amended --
(1) in subparagraph b(4) by adding the following thereto:
''(Note: If the escape was from post-trial confinement, add the following element)
(d) That the confinement was the result of a court-martial conviction.'';
(2) in subparagraph c(4)(a) by adding the following thereto:
''For purposes of the aggravating element of post-trial confinement (subparagraph b(4)(d), above) and increased punishment therefor (subparagraph e(4), below), the confinement must have been imposed pursuant to an adjudged sentence of a court-martial and not as a result of pretrial restraint or nonjudicial punishment.'';
(3) in subparagraph e by --
(a) amending clause (3) to read as follows:
''(3) Escape from custody, pretrial confinement, or confinement on bread and water or diminished rations imposed pursuant to Article 15. Dishonorable discharge, forfeiture of all pay and allowances, and confinement for 1 year.'';
(b) adding the following new clause at the end thereof:
''(4) Escape from post-trial confinement. Dishonorable discharge, forfeiture of all pay and allowances, and confinement for 5 years.'';
(4) in subparagraph f(4) to read as follows:
''(4) Escape from confinement.
In that -------------- (personal jurisdiction data), having been placed in (post-trial) confinement in (place of confinement), by a person authorized to order accused into confinement did, (at/on board --------- location) (subject-matter jurisdiction data, if required), on or about ------19--, escape from confinement.''.
c. Paragraph 35c(2) is amended to read as follows:
''(2) Operating. Operating a vehicle includes not only driving or guiding it while in motion, either in person or through the agency of another, but also the manipulation of its controls so as to cause the particular vehicle to move, or the setting of its motive power in action.''.
c. Paragraph 57d is amended to read as follows:
''d. Lesser included offense. Article 80 -- attempts.''.
d. Paragraph 96f is amended to read as follows:
''f. Sample specification.
In that -------- (personal jurisdiction data), did, (at/on board--location)(subject-matter jurisdiction data, if required), on or about ------, 19--, wrongfully (endeavor to) (impede (a trial by court-martial) (an investigation) (--------)) (influence the actions of -------, (a trial counsel of the court-martial) (a defense counsel of the court-martial) (an officer responsible for making a recommendation concerning disposition of charges) (--------)) ((influence) (alter) the testimony of ------- as a witness before a (court-martial) (an investigating officer) (--------)) in the case of ------- by ((promising) (offering) (giving) to the said --------, (the sum of $-------) (----------, of a value of about $-----)) (communicating to the said ------- a threat to ------) (--------), (if)(unless) he/she, the said -------, would (recommend dismissal of the charges against said ------) ((wrongfully refuse to testify) (testify falsely concerning ------) (--------)) ((at such trial) (before such investigating officer)) (------).''.
Sec. 4. These amendments shall take effect on July 6, 1991, subject to the following:
a. The amendments made to Rule for Courts-Martial 1004(c)(8) and paragraphs 4e, 19, and 35c(2) of Part IV shall apply to any offense committed on or after July 6, 1991.
b. Military Rule of Evidence 707 shall apply only in cases in which arraignment has been completed on or after July 6, 1991.
c. The amendments made to Rules for Courts-Martial 701 and 705 shall apply only in cases in which charges are preferred on or after July 6, 1991.
d. The amendments made to Rules for Courts-Martial 707 and 1010 shall apply only to cases in which arraignment occurs on or after July 6, 1991.
e. The amendment made to Rule for Courts-Martial 908(b)(9) shall apply only to cases in which pretrial confinement is imposed on or after July 6, 1991.
f. The amendment made to Rule for Courts-Martial 1113(c)(1) shall apply only in cases in which the sentence is adjudged on or after July 6, 1991.
g. Nothing contained in these amendments shall be construed to make punishable any act done or omitted prior to July 6, 1991, which was not punishable when done or omitted.
h. The maximum punishment for an offense committed prior to July 6, 1991, shall not exceed the applicable maximum in effect at the time of the commission of such offense.
i. Nothing in these amendments shall be construed to invalidate any nonjudicial punishment proceeding, restraint, investigation, referral of charges, trial in which arraignment occurred, or other action begun prior to July 6, 1991, and any such restraint, investigation, referral of charges, trial, or other action may proceed in the same manner and with the same effect as if these amendments had not been prescribed.
Sec 5. The Secretary of Defense, on behalf of the President, shall transmit a copy of this Order to the Congress of the United States in accord with section 836 of title 10 of the United States Code.
GEORGE BUSH
THE WHITE HOUSE,
June 27, 1991.
Editorial note: For the White House statement on the amendment to the Courts-Martial manual, see the Weekly Compilation of Presidential Documents (vol. 27, p. 855).
03 CFR EO 12768
03 CFR Executive Order 12768 of June 28, 1991
Executive Order 12768 of June 28, 1991
03 CFR Extension of the President's Council of Advisors on Science and Technology
By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to extend the President's Council of Advisors on Science and Technology, it is hereby ordered that Section 4(b) of Executive Order No. 12700 is amended by deleting ''June 30, 1991'' and inserting ''June 30, 1993'' in lieu thereof.
GEORGE BUSH
THE WHITE HOUSE,
June 28, 1991.
03 CFR EO 12769
03 CFR Executive Order 12769 of July 10, 1991
Executive Order 12769 of July 10, 1991
03 CFR Implementation of Section 311(a) of the Comprehensive Anti-Apartheid Act
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Comprehensive Anti-Apartheid Act of 1986 (Public Law 99-440), as amended (''the Act''), and section 301 of title 3 of the United States Code, and having concluded that the Government of South Africa has taken all of the steps specified in section 311(a) of the Act, and, therefore, that title III and sections 501(c) and 504(b) of the Act have terminated, it is hereby ordered as follows:
Section 1. Implementation of Section 311(a) of the Act. All affected executive departments and agencies shall immediately take all steps necessary, consistent with the Constitution, to implement the termination of those sanctions which were imposed by title III and sections 501(c) and 504(b) of the Act.
Sec. 2. Status of Prior Executive Order. Except as superseded by section 1 of this order, Executive Order No. 12571 of October 27, 1986, ''Implementation of the Comprehensive Anti-Apartheid Act,'' shall remain in effect. Pursuant to this order, the Inter-Agency Coordinating Committee established by section 12 of that order shall monitor the termination of those sanctions which were imposed by title III and sections 501(c) and 504(b) of the Act.
Sec. 3. Actions Taken and Proceedings Pending. This order shall not affect any action taken or proceeding pending and not finally concluded or determined on the effective date of this order, or any action or proceeding based on any act committed prior to the effective date of this order, or any rights and duties that matured or penalties that were incurred prior to the effective date of this order.
Sec. 4. Revocation. Executive Order No. 12532 of September 9, 1985, and Executive Order No. 12535 of October 1, 1985, which lapsed on September 9, 1987, pursuant to the provisions of sections 1622(d) and 1701 of title 50 of the United States Code are hereby revoked.
Sec. 5. Effective Date. This order shall be effective immediately.
GEORGE BUSH
THE WHITE HOUSE,
7-10-91
Editorial note: For the President's remarks on the termination of sanctions against South Africa, see the Weekly Compilation of Presidential Documents (vol. 27, pp. 915-916, 923).
03 CFR EO 12770
03 CFR Executive Order 12770 of July 25, 1991
Executive Order 12770 of July 25, 1991
03 CFR Metric Usage in Federal Government Programs
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Metric Conversion Act of 1975, Public Law 94-168 (15 U.S.C. 205a et seq.) (''the Metric Conversion Act''), as amended by section 5164 of the Omnibus Trade and Competitiveness Act of 1988, Public Law 100-418 (''the Trade and Competitiveness Act''), and in order to implement the congressional designation of the metric system of measurement as the preferred system of weights and measures for United States trade and commerce, it is hereby ordered as follows:
Section 1. Coordination by the Department of Commerce.
(a) The Secretary of Commerce (''Secretary'') is designated to direct and coordinate efforts by Federal departments and agencies to implement Government metric usage in accordance with section 3 of the Metric Conversion Act (15 U.S.C. 205b), as amended by section 5164(b) of the Trade and Competitiveness Act.
(b) In furtherance of his duties under this order, the Secretary is authorized:
(1) to charter an Interagency Council on Metric Policy (''ICMP''), which will assist the Secretary in coordinating Federal Government-wide implementation of this order. Conflicts and questions regarding implementation of this order shall be resolved by the ICMP. The Secretary may establish such subcommittees and subchairs within this Council as may be necessary to carry out the purposes of this order.
(2) to form such advisory committees representing other interests, including State and local governments and the business community, as may be necessary to achieve the maximum beneficial effects of this order; and
(3) to issue guidelines, to promulgate rules and regulations, and to take such actions as may be necessary to carry out the purposes of this order. Regulations promulgated by the Secretary shall function as policy guidelines for other agencies and departments.
(c) The Secretary shall report to the President annually regarding the progress made in implementing this order. The report shall include:
(1) an assessment of progress made by individual Federal agencies towards implementing the purposes underlying this order;
(2) an assessment of the effect that this order has had on achieving the national goal of establishing the metric system as the preferred system of weights and measures for United States trade and commerce; and
(3) on October 1, 1992, any recommendations which the Secretary may have for additional measures, including proposed legislation, needed to achieve the full economic benefits of metric usage.
Sec. 2. Department and Agency Responsibilities. All executive branch departments and agencies of the United States Government are directed to take all appropriate measures within their authority to carry out the provisions of this order. Consistent with this mission, the head of each executive department and agency shall:
(a) use, to the extent economically feasible by September 30, 1992, or by such other date or dates established by the department or agency in consultation with the Secretary of Commerce, the metric system of measurement in Federal Government procurements, grants, and other business-related activities. Other business-related activities include all use of measurement units in agency programs and functions related to trade, industry, and commerce.
(1) Metric usage shall not be required to the extent that such use is impractical or is likely to cause significant inefficiencies or loss of markets to United States firms.
(2) Heads of departments and agencies shall establish an effective process for a policy-level and program-level review of proposed exceptions to metric usage. Appropriate information about exceptions granted shall be included in the agency annual report along with recommendations for actions to enable future metric usage.
(b) seek out ways to increase understanding of the metric system of measurement through educational information and guidance and in Government publications. The transition to use of metric units in Government publications should be made as publications are revised on normal schedules or new publications are developed, or as metric publications are required in support of metric usage pursuant to paragraph (a) of this section.
(c) seek the appropriate aid, assistance, and cooperation of other affected parties, including other Federal, State, and local agencies and the private sector, in implementing this order. Appropriate use shall be made of governmental, trade, professional, and private sector metric coordinating groups to secure the maximum benefits of this order through proper communication among affected sectors.
(d) formulate metric transition plans for the department or agency which shall incorporate the requirements of the Metric Conversion Act and this order, and which shall be approved by the department or agency head and be in effect by November 30, 1991. Copies of approved plans shall be forwarded to the Secretary of Commerce. Such metric transition plans shall specify, among other things:
(1) the total scope of the metric transition task for that department or agency, including firm dates for all metric accomplishment milestones for the current and subsequent fiscal year;
(2) plans of the department or agency for specific initiatives to enhance cooperation with industry, especially small business, as it voluntarily converts to the metric system, and with all affected parties in undertaking the requirements of paragraph (a) of this section; and
(3) specific steps and associated schedules through which the department or agency will seek to increase understanding of the metric system through educational information and guidance, and in department or agency publications.
(e) designate a senior-level official as the Metric Executive for the department or agency to assist the head of each executive department or agency in implementing this order. The responsibilities of the Metric Executive shall include, but not be limited to:
(1) acting as the department's or agency's policy-level representative to the ICMP and as a liaison with other government agencies and private sector groups:'
(2) management oversight of department or agency outreach and response to inquiries and questions from affected parties during the transition to metric system usage; and
(3) management oversight of preparation of the department's or agency's metric transition plans and progress reports, including the Annual Metric Report required by 15 U.S.C. 205j and OMB Circular A-11.
(4) preparation by June 30, 1992, of an assessment of agency progress and problems, together with recommendations for steps to assure successful implementation of the Metric Conversion Act. The assessment and recommendations shall be approved by the head of the department or agency and provided to the Secretary by June 30, 1992, for inclusion in the Secretary's October 1, 1992, report on implementation of this order.
Sec. 3. Application of Resources. The head of each executive department and agency shall be responsible for implementing and applying the necessary resources to accomplish the goals set forth in the Metric Conversion Act and this order.
Sec. 4. Judicial Review. This order is intended only to improve the internal management of the executive branch and is not intended to create any right or benefit, substantive or procedural, enforceable at law by a party against the United States, its agencies, its officers, or any other person.
GEORGE BUSH
THE WHITE HOUSE,
July 25, 1991.
03 CFR EO 12771
03 CFR Executive Order 12771 of July 25, 1991
Executive Order 12771 of July 25, 1991
03 CFR Revoking Earlier Orders With Respect to Kuwait
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 301 of title 3 of the United States Code, and the United Nations Participation Act (22 U.S.C. 287c),
I, GEORGE BUSH, President of the United States of America, find that the expulsion from Kuwait of Iraq's occupation forces, the restoration of Kuwait to its citizens, and the reinstatement of the lawful Government of Kuwait eliminate the need for Executive Order No. 12723 of August 2, 1990, entitled ''Blocking Kuwaiti Government Property,'' and Executive Order No. 12725 of August 9, 1990, entitled ''Blocking Kuwaiti Government Property and Prohibiting Transactions With Kuwait.'' Those orders were issued to protect the assets of the Government of Kuwait which were subject to United States jurisdiction, and to prevent the transfer of benefits by United States persons to Iraq based upon its invasion of Kuwait. Those orders also implemented the foreign policy and protected the national security of the United States, in conformity with applicable resolutions of the United Nations Security Council. Finding continuation of these orders unnecessary, I hereby order:
Section 1. Executive Order No. 12723 and Executive Order No. 12725 are hereby revoked. This revocation shall not affect the national emergency declared in Executive Order No. 12722 to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States posed by the policies and action of the Government of Iraq.
Sec. 2. This revocation shall not affect:
(a) any action taken or proceeding pending and not finally concluded or determined on the effective date of this order;
(b) any action or proceeding based on any act committed prior to the effective date of this order; or
(c) any rights or duties that matured or penalties that were incurred prior to the effective date of this order.
Sec. 3. This order shall take effect immediately.
GEORGE BUSH
THE WHITE HOUSE,
July 25, 1991.
03 CFR EO 12772
03 CFR Executive Order 12772 of August 17, 1991
Executive Order 12772 of August 17, 1991
03 CFR Waiver Under the Trade Act of 1974 With Respect to Romania
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 402(c)(2) of the Trade Act of 1974, as amended (''Act'') (19 U.S.C. 2432(c)(2)), which continues to apply to Romania pursuant to section 402(d), and having made the report to the Congress required by section 402(c)(2) of the Act, I hereby waive the application of sections 402(a) and 402(b) of the Act with respect to Romania.
GEORGE BUSH
THE WHITE HOUSE,
August 17, 1991.
Editorial note: For the President's letter to Congress and a statement by Press Secretary Fitzwater on trade with Romania, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1168).
03 CFR EO 12773
03 CFR Executive Order 12773 of September 26, 1991
Executive Order 12773 of September 26, 1991
03 CFR Amending Executive Order No. 10480
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Defense Production Act of 1950, as amended (50 U.S.C. 2601 et seq.) (''Act''), and in order to transfer the responsibilities of the General Services Administration as authorized under the Act, it is hereby ordered that section 303 of Executive Order No. 10480 is amended by deleting ''Administrator of General Services'' and inserting ''Secretary of Defense'' in lieu thereof and that section 604 of Executive Order No. 10480 is amended by deleting ''General Services Administration'' and inserting ''Department of Defense'' in lieu thereof and by deleting ''Administrator of General Services'' and inserting ''Secretary of Defense'' in lieu thereof.
GEORGE BUSH
THE WHITE HOUSE,
September 26, 1991.
Editorial note: For the President's message to Congress and his notice on the continuation of export control regulations, see the Weekly Compilation of Presidential Documents (vol. 27, p. 1344).
03 CFR EO 12774
03 CFR Executive Order 12774 of September 27, 1991
Executive Order 12774 of September 27, 1991
03 CFR Continuance of Certain Federal Advisory Committees
By the President of the United States of America
A Proclamation
By the authority vested in me as President by the Constitution and the laws of the United States of America, and in accordance with the provisions of the Federal Advisory Committee Act, as amended (5 U.S.C. App.), it is hereby ordered as follows:
Section 1. Each advisory committee listed below is continued until September 30, 1993.
(a) Committee for the Preservation of the White House; Executive Order No. 11145, as amended (Department of the Interior)
(b) Federal Advisory Council on Occupational Safety and Health; Executive Order No. 12196, as amended (Department of Labor).
(c) President's Commission on White House Fellowships; Executive Order No. 11183, as amended (Office of Personnel Management).
(d) President's Committee on the Arts and the Humanities; Executive Order No. 12367, as amended (National Endowment for the Arts).
(e) President's Committee on the International Labor Organization; Executive Order No. 12216 (Department of Labor).
(f) President's Committee on Mental Retardation; Executive Order No. 11776 (Department of Health and Human Services).
(g) President's Committee on the National Medal of Science; Executive Order No. 11287, as amended (National Science Foundation).
(h) President's Council on Physical Fitness and Sports; Executive Order No. 12345, as amended (Department of Health and Human Services).
(i) President's Export Council; Executive Order No. 12131, as amended (Department of Commerce).
(j) President's National Security Telecommunications Advisory Committee; Executive Order 12382, as amended (Department of Defense),
Sec. 2. Notwithstanding the provisions of any other Executive order, the functions of the President under the Federal Advisory Committee Act that are applicable to the committees listed in Section 1 of this Order, except that of reporting annually to the Congress, shall be performed by the head of the department or agency designated after each committee, in accordance with the guidelines and procedures established by the Administrator of General Services.
Sec. 3. The following Executive Orders or sections thereof, which established committees that have been terminated or whose work has been completed, are revoked.
(a) Section 3-401 of Executive Order No. 12661, as amended by Executive Order No. 12716, establishing the National Commission on Superconductivity;
(b) Executive Order No. 12686, as amended by Executive Order No. 12705, establishing the President's Commission on Aviation Security and Terrorism and
(c) Executive Order No. 12658, as amended by Executive Order No. 12665, establishing the President's Commission on Catastrophic Nuclear Accidents.
Sec. 4. Executive Order No. 12692 is superseded.
Sec. 5. This order shall be effective September 30, 1991.
GEORGE BUSH
THE WHITE HOUSE,
September 27, 1991.
03 CFR EO 12775
03 CFR Executive Order 12775 of October 4, 1991
Executive Order 12775 of October 4, 1991
03 CFR Prohibiting Certain Transactions With Respect to Haiti
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), and section 301 of title 3 of the United States Code,
I, GEORGE BUSH, President of the United States of America, find that the grave events that have occurred in the Republic of Haiti to disrupt the legitimate exercise of power by the democratically elected government of that country constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States, and hereby declare a national emergency to deal with that threat.
I hereby order:
Section 1. Except to the extent provided in regulations, orders, directives, or licenses which may hereafter be issued pursuant to this order, all property and interests in property of the Government of Haiti, its agencies, instrumentalities and controlled entities, including the Banque de la Republique d'Haiti, that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of United States persons, including their overseas branches, are hereby blocked.
Sec. 2. Except to the extent provided in regulations, orders, directives, or licenses which may hereafter be issued pursuant to this order, any direct or indirect payments or transfers to the de facto regime in Haiti of funds, including currency, cash or coins of any nation, or of other financial or investment assets or credits, by any United States person, or by any person organized under the laws of Haiti and owned or controlled by a United States person, are prohibited. All transfers or payments owed to the Government of Haiti shall be made when due into an account at the Federal Reserve Bank of New York, or as otherwise may be directed by the Secretary of the Treasury, to be held for the benefit of the Haitian people.
Sec. 3. For the purposes of this order:
(a) The term ''de facto regime in Haiti'' means those who seized power illegally from the democratically elected government of President Jean-Bertrand Aristide on September 30, 1991, and includes any persons, agencies, instrumentalities, or entities purporting to act on behalf of the de facto regime, or under the asserted authority thereof, or any extraconstitutional successor thereto.
(b) The term ''United States person'' means any United States citizen, permanent resident alien, juridical person organized under the laws of the United States, or any person in the United States.
Sec. 4. The measures taken pursuant to this order are not intended to block private Haitian assets subject to the jurisdiction of the United States, or to prohibit remittances by United States persons to Haitian persons other than the de facto regime in Haiti.
Sec. 5. The Secretary of the Treasury, in consultation with the Secretary of State, is hereby authorized to take such actions, including the promulgation of rules and regulations, and to employ all powers granted to me by the International Emergency Economic Powers Act, as may be necessary to carry out the purposes of this order. Such actions may include prohibiting or regulating payments or transfers of any property, or any transactions involving the transfer of anything of economic value, by any United States person to the de facto regime in Haiti. The Secretary of the Treasury may redelegate any of these functions to other officers and agencies of the United States Government, all agencies of which are hereby directed to take all appropriate measures within their authority to carry out the provisions of this order, including suspension or termination of licenses or other authorizations in effect as of the date of this order.
Sec. 6. This order is effective immediately.
Sec. 7. Nothing contained in this order shall confer any substantive or procedural right or privilege on any person or organization, enforceable against the United States, its agencies or its officers, or the Federal Reserve Bank of New York or its officers.
This order shall be transmitted to the Congress and published in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
October 4, 1991.
Editorial note: For the President's remarks on Haiti, see pp. 1396 and 1399 of the Weekly Compilation of Presidential Documents. For his message to Congress on this Executive order, see p. 1533.
03 CFR EO 12776
03 CFR Executive Order 12776 of October 8, 1991
Executive Order 12776 of October 8, 1991
03 CFR Extending the National Defense Service Medal to Members of the Reserve Components of the Armed Forces of the United States During the Period of the Persian Gulf Crisis
By the authority vested in me as President by the Constitution and the laws of the United States of America, and as Commander in Chief of the Armed Forces of the United States, it is hereby ordered as follows:
Section 1. Under such regulations as the Secretaries of the Army, Navy, and Air Force, or the Secretary of Transportation with regard to the Coast Guard when it is not operating as a service in the Navy, may severally prescribe, and subject to the provisions of this order, the National Defense Service Medal, as established by Executive Order No. 10448, as amended, may be awarded to members of the Reserve Components of the Armed Forces of the United States, as delineated by section 261 of title 10 of the United States Code.
Sec. 2. The National Defense Service Medal, as authorized in the first section of this order, may be awarded to an individual who was a member in good standing of a Reserve Component of the Armed Forces of the United States during a period designated by the Secretary of Defense as the period of the Persian Gulf crisis for the purposes of this order.
Sec. 3. The National Defense Service Medal may be awarded posthumously to a member of a Reserve Component of the Armed Forces of the United States who satisfies the requirements for such award under this order and under regulations promulgated pursuant to section 1 of this order.
GEORGE BUSH
THE WHITE HOUSE,
October 8, 1991.
03 CFR EO 12777
03 CFR Executive Order 12777 of October 18, 1991
Executive Order 12777 of October 18, 1991
03 CFR Implementation of Section 311 of the Federal Water Pollution Control Act of October 18, 1972, as Amended, and the Oil Pollution Act of 1990
By the authority vested in me as President by the Constitution and the laws of the United States of America, including Section 311 of the Federal Water Pollution Control Act, (''FWPCA'') (33 U.S.C. 1321), as amended by the Oil Pollution Act of 1990 (Public Law 101-380) (''OPA''), and by Section 301 of Title 3 of the United States Code, it is hereby ordered as follows:
Section 1. National Contingency Plan, Area Committees, and Area Contingency Plans. (a) Section 1 of Executive Order No. 12580 of January 23, 1987, is amended to read as follows:
''Section 1. National Contingency Plan. (a)(1) The National Contingency Plan (''the NCP''), shall provide for a National Response Team (''the NRT'') composed of representatives of appropriate Federal departments and agencies for national planning and coordination of preparedness and response actions, and Regional Response Teams as the regional counterparts to the NRT for planning and coordination of regional preparedness and response actions.
''(2) The following agencies (in addition to other appropriate agencies) shall provide representatives to the National and Regional Response Teams to carry out their responsibilities under the NCP: Department of State, Department of Defense, Department of Justice, Department of the Interior, Department of Agriculture, Department of Commerce, Department of Labor, Department of Health and Human Services, Department of Transportation, Department of Energy, Environmental Protection Agency, Federal Emergency Management Agency, United States Coast Guard, and the Nuclear Regulatory Commission.
''(3) Except for periods of activation because of response action, the representative of the Environmental Protection Agency (''EPA'') shall be the chairman, and the representative of the United States Coast Guard shall be the vice chairman, of the NRT and these agencies' representatives shall be co-chairs of the Regional Response Teams (''the RRTs''). When the NRT or an RRT is activated for a response action, the EPA representative shall be the chairman when the release or threatened release or discharge or threatened discharge occurs in the inland zone, and the United States Coast Guard representative shall be the chairman when the release or threatened release or discharge or threatened discharge occurs in the coastal zone, unless otherwise agreed upon by the EPA and the United States Coast Guard representatives (inland and coastal zones are defined in the NCP).
''(4) The RRTs may include representatives from State governments, local governments (as agreed upon by the States), and Indian tribal governments. Subject to the functions and authorities delegated to Executive departments and agencies in other sections of this order, the NRT shall provide policy and program direction to the RRTs.
''(b)(1) The responsibility for the revision of the NCP and all the other functions vested in the President by Sections 105(a), (b), (c), and (g), 125, and 301(f) of the Act, by Section 311(d)(1) of the Federal Water Pollution Control Act, and by Section 4201(c) of the Oil Pollution Act of 1990 is delegated to the Administrator of the Environmental Protection Agency (''the Administrator'').
''(2) The function vested in the President by Section 118(p) of the Superfund Amendments and Reauthorization Act of 1986 (Pub. L. 99-499) (''SARA'') is delegated to the Administrator.
''(c) In accord with Section 107(f)(2)(A) of the Act, Section 311(f)(5) of the Federal Water Pollution Control Act, as amended (33 U.S.C. 1321(f)(5)), and Section 1006(b)(1) and (2) of the Oil Pollution Act of 1990, the following shall be among those designated in the NCP as Federal trustees for natural resources:
(1) Secretary of Defense; (2) Secretary of the Interior; (3) Secretary of Agriculture; (4) Secretary of Commerce; (5) Secretary of Energy.
In the event of a spill, the above named Federal trustees for natural resources shall designate one trustee to act as Lead Administrative Trustee, the duties of which shall be defined in the regulations promulgated pursuant to Section 1006(e)(1) of OPA. If there are natural resource trustees other than those designated above which are acting in the event of a spill, those other trustees may join with the Federal trustees to name a Lead Administrative Trustee which shall exercise the duties defined in the regulations promulgated pursuant to Section 1006(e)(1) of OPA.
''(d) Revisions to the NCP shall be made in consultation with members of the NRT prior to publication for notice and comment.
''(e) All revisions to the NCP, whether in proposed or final form, shall be subject to review and approval by the Director of the Office of Management and Budget (''OMB'').''
(b) The functions vested in the President by Section 311(j)(4) of FWPCA, and Section 4202(b)(1) of OPA, respecting the designation of Areas, the appointment of Area Committee members, the requiring of information to be included in Area Contingency Plans, and the review and approval of Area Contingency Plans are delegated to the Administrator of the Environmental Protection Agency (''Administrator'') for the inland zone and the Secretary of the Department in which the Coast Guard is operating for the coastal zone (inland and coastal zones are defined in the NCP).
Sec. 2. National Response System. (a) The functions vested in the President by Section 311(j)(1)(A) of FWPCA, respecting the establishment of methods and procedures for the removal of discharged oil and hazardous substances, and by Section 311(j)(1)(B) of FWPCA respecting the establishment of criteria for the development and implementation of local and regional oil and hazardous substance removal contingency plans, are delegated to the Administrator for the inland zone and the Secretary of the Department in which the Coast Guard is operating for the coastal zone.
(b)(1) The functions vested in the President by Section 311(j)(1)(C) of FWPCA, respecting the establishment of procedures, methods, and equipment and other requirements for equipment to prevent and to contain discharges of oil and hazardous substances from non-transportation-related onshore facilities, are delegated to the Administrator.
(2) The functions vested in the President by Section 311(j)(1)(C) of FWPCA, respecting the establishment of procedures, methods, and equipment and other requirements for equipment to prevent and to contain discharges of oil and hazardous substances from vessels and transportation-related onshore facilities and deepwater ports subject to the Deepwater Ports Act of 1974 (''DPA''), are delegated to the Secretary of Transportation.
(3) The functions vested in the President by Section 311(j)(1)(C) of FWPCA, respecting the establishment of procedures, methods, and equipment and other requirements for equipment to prevent and to contain discharges of oil and hazardous substances from offshore facilities, including associated pipelines, other than deepwater ports subject to the DPA, are delegated to the Secretary of the Interior.
(c) The functions vested in the President by Section 311(j)(1)(D) of FWPCA, respecting the inspection of vessels carrying cargoes of oil and hazardous substances and the inspection of such cargoes, are delegated to the Secretary of the Department in which the Coast Guard is operating.
(d)(1) The functions vested in the President by Section 311(j)(5) of FWPCA and Section 4202(b)(4) of OPA, respecting the issuance of regulations requiring the owners or operators of non-transportation-related onshore facilities to prepare and submit response plans, the approval of means to ensure the availability of private personnel and equipment, the review and approval of such response plans, and the authorization of non-transportation-related onshore facilities to operate without approved response plans, are delegated to the Administrator.
(2) The functions vested in the President by Section 311(j)(5) of FWPCA and Section 4202(b)(4) of OPA, respecting the issuance of regulations requiring the owners or operators of tank vessels, transportation-related onshore facilities and deepwater ports subject to the DPA, to prepare and submit response plans, the approval of means to ensure the availability of private personnel and equipment, the review and approval of such response plans, and the authorization of tank vessels, transportation-related onshore facilities and deepwater ports subject to the DPA to operate without approved response plans, are delegated to the Secretary of Transportation.
(3) The functions vested in the President by Section 311(j)(5) of FWPCA and Section 4202(b)(4) of OPA, respecting the issuance of regulations requiring the owners or operators of offshore facilities, including associated pipelines, other than deepwater ports subject to the DPA, to prepare and submit response plans, the approval of means to ensure the availability of private personnel and equipment, the review and approval of such response plans, and the authorization of offshore facilities, including associated pipelines, other than deepwater ports subject to the DPA, to operate without approved response plans, are delegated to the Secretary of the Interior.
(e)(1) The functions vested in the President by Section 311(j)(6)(A) of FWPCA, respecting the requirements for periodic inspections of containment booms and equipment used to remove discharges at non-transportation-related onshore facilities, are delegated to the Administrator.
(2) The functions vested in the President by Section 311(j)(6)(A) of FWPCA, respecting the requirements for periodic inspections of containment booms and equipment used to remove discharges on vessels, and at transportation-related onshore facilities and deepwater ports subject to the DPA, are delegated to the Secretary of Transportation.
(3) The functions vested in the President by Section 311(j)(6)(A) of FWPCA, respecting the requirements for periodic inspections of containment booms and equipment used to remove discharges at offshore facilities, including associated pipelines, other than deepwater ports subject to the DPA, are delegated to the Secretary of the Interior.
(f) The functions vested in the President by Section 311(j)(6)(B) of FWPCA, respecting requirements for vessels to carry appropriate removal equipment, are delegated to the Secretary of the Department in which the Coast Guard is operating.
(g)(1) The functions vested in the President by Section 311(j)(7) of FWPCA, respecting periodic drills of removal capability under relevant response plans for onshore and offshore facilities located in the inland zone, and the publishing of annual reports on those drills, are delegated to the Administrator.
(2) The functions vested in the President by Section 311(j)(7) of FWPCA, respecting periodic drills of removal capability under relevant response plans for tank vessels, and for onshore and offshore facilities located in the coastal zone, and the publishing of annual reports on those drills, are delegated to the Secretary of the Department in which the Coast Guard is operating.
(h) No provision of Section 2 of this order, including, but not limited to, any delegation or assignment of any function hereunder, shall in any way affect, or be construed or interpreted to affect the authority of any Department or agency, or the head of any Department or agency under any provision of law other than Section 311(j) of FWPCA or Section 4202(b)(4) of OPA.
(i) The functions vested in the President by Section 311(j) of FWPCA or Section 4202(b)(4) of OPA which have been delegated or assigned by Section 2 of this order may be redelegated to the head of any Executive department or agency with his or her consent.
Sec. 3. Removal. The functions vested in the President by Section 311(c) of FWPCA and Section 1011 of OPA, respecting an effective and immediate removal or arrangement for removal of a discharge and mitigation or prevention of a substantial threat of a discharge of oil or a hazardous substance, the direction and monitoring of all Federal, State and private actions, the removal and destruction of a vessel, the issuance of directions, consulting with affected trustees, and removal completion determinations, are delegated to the Administrator for the inland zone and to the Secretary of the Department in which the Coast Guard is operating for the coastal zone.
Sec. 4. Liability Limit Adjustment. (a) The functions vested in the President by Section 1004(d) of OPA, respecting the establishment of limits of liability, with respect to classes or categories of non-transportation-related onshore facilities, the reporting to Congress on the desirability of adjusting limits of liability with respect to non-transportation-related onshore facilities, and the adjustment of limits of liability to reflect significant increases in the Consumer Price Index with respect to non-transportation-related onshore facilities, are delegated to the Administrator, acting in consultation with the Secretary of Transportation, the Secretary of Energy, and the Attorney General.
(b) The functions vested in the President by Section 1004(d) of OPA, respecting the establishment of limits of liability, with respect to classes or categories of transportation-related onshore facilities, the reporting to Congress on the desirability of adjusting limits of liability, with respect to vessels or transportation-related onshore facilities and deepwater ports subject to the DPA, and the adjustment of limits of liability to reflect significant increases in the Consumer Price Index with respect to vessels or transportation-related onshore facilities and deepwater ports subject to the DPA, are delegated to the Secretary of Transportation.
(c) The functions vested in the President by Section 1004(d) of OPA, respecting the reporting to Congress on the desirability of adjusting limits of liability with respect to offshore facilities, including associated pipelines, other than deepwater ports subject to the DPA, and the adjustment of limits of liability to reflect significant increases in the Consumer Price Index with respect to offshore facilities, including associated pipelines, other than deepwater ports subject to the DPA, are delegated to the Secretary of the Interior.
Sec. 5. Financial Responsibility. (a)(1) The functions vested in the President by Section 1016(e) of OPA, respecting (in the case of offshore facilities other than deepwater ports) the issuance of regulations concerning financial responsibility, the determination of acceptable methods of financial responsibility, and the specification of necessary or unacceptable terms, conditions, or defenses, are delegated to the Secretary of the Interior.
(2) The functions vested in the President by Section 1016(e) of OPA, respecting (in the case of deepwater ports) the issuance of regulations concerning financial responsibility, the determination of acceptable methods of financial responsibility, and the specification of necessary or unacceptable terms, conditions, or defenses, are delegated to the Secretary of Transportation.
(b)(1) The functions vested in the President by Section 4303 of OPA, respecting (in cases involving vessels) the assessment of civil penalties, the compromising, modification or remission, with or without condition, and the referral for collection of such imposed penalties, and requests to the Attorney General to secure necessary judicial relief, are delegated to the Secretary of the Department in which the Coast Guard is operating.
(2) The functions vested in the President by Section 4303 of OPA, respecting (in cases involving offshore facilities other than deepwater ports) the assessment of civil penalties, the compromising, modification or remission, with or without condition, and the referral for collection of such imposed penalties, and requests to the Attorney General to secure necessary judicial relief, are delegated to the Secretary of the Interior.
(3) The functions vested in the President by Section 4303 of OPA, respecting (in cases involving deepwater ports) the assessment of civil penalties, the compromising, modification or remission, with or without condition, and the referral for collection of such imposed penalties, and requests to the Attorney General to secure necessary judicial relief, are delegated to the Secretary of Transportation.
Sec. 6. Enforcement. (a) The functions vested in the President by Section 311(m)(1) of FWPCA, respecting the enforcement of Section 311 with respect to vessels, are delegated to the Secretary of the Department in which the Coast Guard is operating.
(b) The functions vested in the President by Section 311(e) of FWPCA, respecting determinations of imminent and substantial threat, requesting the Attorney General to secure judicial relief, and other action including issuing administrative orders, are delegated to the Administrator for the inland zone and to the Secretary of the Department in which the Coast Guard is operating for the coastal zone.
Sec. 7. Management of the Oil Spill Liability Trust Fund and Claims. (a)(1)(A) The functions vested in the President by Section 1012(a)(1), (3), and (4) of OPA respecting payment of removal costs and claims and determining consistency with the National Contingency Plan (NCP) are delegated to the Secretary of the Department in which the Coast Guard is operating.
(B) The functions vested in the President by Section 6002(b) of the OPA respecting making amounts, not to exceed $50,000,000 and subject to normal budget controls, in any fiscal year, available from the Fund (i) to carry out Section 311(c) of FWPCA, and (ii) to initiate the assessment of natural resources damages required under Section 1006 of OPA are delegated to the Secretary of the Department in which the Coast Guard is operating. Such Secretary shall make amounts available from the Fund to initiate the assessment of natural resources damages exclusively to the Federal trustees designated in the NCP. Such Federal trustees shall allocate such amounts among all trustees required to assess natural resources damages under Section 1006 of OPA.
(2) The functions vested in the President by Section 1012(a)(2) of OPA, respecting the payment of costs and determining consistency with the NCP, are delegated to the Federal trustees designated in the NCP.
(3) The functions vested in the President by Section 1012(a)(5) of OPA, respecting the payment of costs and expenses of departments and agencies having responsibility for the implementation, administration, and enforcement of the Oil Pollution Act of 1990 and subsections (b), (c), (d), (j) and (l) of Section 311 of FWPCA, are delegated to each head of such department and agency.
(b) The functions vested in the President by Section 1012(c) of OPA, respecting designation of Federal officials who may obligate money, are delegated to each head of the departments and agencies to whom functions have been delegated under section 7(a) of this order for the purpose of carrying out such functions.
(c)(1) The functions vested in the President by Section 1012(d) and (e) of OPA, respecting the obligation of the Trust Fund on the request of a Governor or pursuant to an agreement with a State, entrance into agreements with States, agreement upon terms and conditions, and the promulgation of regulations concerning such obligation and entrance into such agreement, are delegated to the Secretary of the Department in which the Coast Guard is operating, in consultation with the Administrator.
(2) The functions vested in the President by Section 1013(e) of OPA, respecting the promulgation and amendment of regulations for the presentation, filing, processing, settlement, and adjudication of claims under OPA against the Trust Fund, are delegated to the Secretary of the Department in which the Coast Guard is operating, in consultation with the Attorney General.
(3) The functions vested in the President by Section 1012(a) of OPA, respecting the payment of costs, damages, and claims, delegated herein to the Secretary of the Department in which the Coast Guard is operating, include, inter alia, the authority to process, settle, and administratively adjudicate such costs, damages, and claims, regardless of amount.
(d)(1) The Coast Guard is designated the ''appropriate agency'' for the purpose of receiving the notice of discharge of oil or hazardous substances required by Section 311(b)(5) of FWPCA, and the Secretary of the Department in which the Coast Guard is operating is authorized to issue regulations implementing this designation.
(2) The functions vested in the President by Section 1014 of OPA, respecting designation of sources of discharges or threats, notification to responsible parties, promulgation of regulations respecting advertisements, the advertisement of designation, and notification of claims procedures, are delegated to the Secretary of the Department in which the Coast Guard is operating.
Sec. 8. Miscellaneous. (a) The functions vested in the President by Section 311(b)(3) and (4) of FWPCA, as amended by the Oil Pollution Act of 1990, respecting the determination of quantities of oil and any hazardous substances the discharge of which may be harmful to the public health or welfare or the environment and the determinations of quantities, time, locations, circumstances, or conditions, which are not harmful, are delegated to the Administrator.
(b) The functions vested in the President by Section 311(d)(2)(G) of FWPCA, respecting schedules of dispersant, chemical, and other spill mitigating devices or substances, are delegated to the Administrator.
(c) The functions vested in the President by Section 1006(b)(3) and (4) of OPA respecting the receipt of designations of State and Indian tribe trustees for natural resources are delegated to the Administrator.
(d) The function vested in the President by Section 3004 of OPA, with respect to encouraging the development of an international inventory of equipment and personnel, is delegated to the Secretary of the Department in which the Coast Guard is operating, in consultation with the Secretary of State.
(e) The functions vested in the President by Section 4113 of OPA, respecting a study on the use of liners or other secondary means of containment for onshore facilities, and the implementation of the recommendations of the study, are delegated to the Administrator.
(f) The function vested in the President by Section 5002(c)(2)(D) of OPA, respecting the designating of an employee of the Federal Government who shall represent the Federal Government on the Oil Terminal Facilities and Oil Tanker Operations Associations, is delegated to the Secretary of Transportation.
(g) The functions vested in the President by Section 5002(o) of OPA, respecting the annual certification of alternative voluntary advisory groups, are delegated to the Secretary of Transportation.
(h) The function vested in the President by Section 7001(a)(3) of OPA, respecting the appointment of Federal agencies to membership on the Interagency Coordinating Committee on Oil Pollution Research, is delegated to the Secretary of Transportation.
(i) Executive Order No. 11735 of August 3, 1973, Executive Order No. 12123 of February 26, 1979, Executive Order No. 12418 of May 5, 1983 and the memorandum of August 24, 1990, delegating certain authorities of the President under the Oil Pollution Act of 1990 are revoked.
Sec. 9. Consultation. Authorities and functions delegated or assigned by this order shall be exercised subject to consultation with the Secretaries of departments and the heads of agencies with statutory responsibilities which may be significantly affected, including, but not limited to, the Department of Justice.
Sec. 10. Litigation. (a) Notwithstanding any other provision of this order, any representation pursuant to or under this order in any judicial proceedings shall be by or through the Attorney General. The conduct and control of all litigation arising under the Oil Pollution Act of 1990 shall be the responsibility of the Attorney General.
(b) Notwithstanding any other provision of this order, the authority under the Oil Pollution Act of 1990 to require the Attorney General to commence litigation is retained by the President.
(c) Notwithstanding any other provision of this order, the Secretaries of the Departments of Transportation, Commerce, Interior, Agriculture, and/or the Administrator of the Environmental Protection Agency may request that the Attorney General commence litigation under the Oil Pollution Act of 1990.
(d) The Attorney General, in his discretion, is authorized to require that, with respect to a particular oil spill, an agency refrain from taking administrative enforcement action without first consulting with the Attorney General.
GEORGE BUSH
THE WHITE HOUSE,
October 18, 1991.
03 CFR EO 12778
03 CFR Executive Order 12778 of October 23, 1991
Executive Order 12778 of October 23, 1991
03 CFR Civil Justice Reform
WHEREAS, the tremendous growth in civil litigation has burdened the American court system and has imposed high costs on American individuals, small businesses, industry, professionals, and government at all levels;
WHEREAS, several current litigation practices add to these burdens and costs by prolonging the resolution of disputes, thus delaying just compensation and encouraging wasteful litigation;
WHEREAS, the harmful consequences of these litigation practices may be ameliorated by encouraging voluntary dispute resolution, limitations on unnecessary discovery, judicious use of expert testimony, prudent use of sanctions, improved use of litigation resources, and, where appropriate, modified fee arrangements;
WHEREAS, the United States sets an example for private litigation by adhering to higher standards than those required by the rules of procedure in the conduct of Government litigation in Federal court, and can continue to do so without impairing the effectiveness of its litigation efforts;
WHEREAS, improving the quality of legislation and regulation to eliminate ambiguities in drafting would reduce uncertainty and unnecessary litigation; and,
WHEREAS, improving the quality of administrative adjudications would reduce the time and resources expended during the administrative process.
NOW, THEREFORE, I, GEORGE BUSH, by the authority vested in me as President by the Constitution and the laws of the United States of America, including chapter 31 of title 28, United States Code, and section 301 of title 3, United States Code, and in order to facilitate the just and efficient resolution of civil claims involving the United States Government, to encourage the filing of only meritorious civil claims, to improve legislative and regulatory drafting to reduce needless litigation, to promote fair and prompt adjudication before administrative tribunals, and to provide a model for similar reforms of litigation practices in the private sector and in various states, hereby order as follows:
Section 1. Guidelines to Promote Just and Efficient Government Civil Litigation. To promote the just and efficient resolution of civil claims, those Federal agencies and litigation counsel that conduct or otherwise participate in civil litigation on behalf of the United States Government in Federal court shall respect and adhere to the following guidelines during the conduct of such litigation:
(a) Pre-filing Notice of a Complaint. No litigation counsel shall file a complaint initiating civil litigation without first making a reasonable effort to notify all disputants about the nature of the dispute and to attempt to achieve a settlement, or confirming that the referring agency that previously handled the dispute has made a reasonable effort to notify the disputants and to achieve a settlement or has used its conciliation processes.
(b) Settlement Conferences. As soon as practicable after ascertaining the nature of a dispute in litigation, and throughout the litigation, litigation counsel shall evaluate settlement possibilities and make reasonable efforts to settle the litigation. Such efforts shall include offering to participate in a settlement conference or moving the court for a conference pursuant to Rule 16 of the Federal Rules of Civil Procedure in an attempt to resolve the dispute without additional civil litigation.
(c) Alternative Methods of Resolving the Dispute in Litigation. Litigation counsel shall make reasonable attempts to resolve a dispute expeditiously and properly before proceeding to trial.
(1) Whenever feasible, claims should be resolved through
informal discussions, negotiations, and settlements rather than through utilization of any formal or structured Alternative Dispute Resolution (ADR) process or court proceeding. At the same time, litigation counsel should be trained in dispute resolution techniques and skills that can contribute to the prompt, fair, and efficient resolution of claims. Where such benefits may be derived, and after consultation with the agency referring the matter, litigation counsel should suggest the use of an appropriate ADR technique to the private parties.
(2) It is appropriate to use ADR techniques or processes to
resolve claims of or against the United States or its agencies, after litigation counsel determines that the use of a particular technique is warranted in the context of a particular claim or claims, and that such use will materially contribute to the prompt, fair, and efficient resolution of the claims.
(3) Litigation counsel shall neither seek nor agree to the use
of binding arbitration or any other equivalent ADR technique. A technique is equivalent to binding arbitration if an agency is bound, without exercise of that agency's discretion, to implement the determination arising from the ADR technique. The requirements of this paragraph shall be interpreted in a manner consistent with section 4(b) of the Administrative Dispute Resolution Act, Public Law 101-552, 104 Stat. 2736 (1990). Practice under Tax Court Rule 124 shall be exempt from this provision.
(d) Discovery. To the extent practicable, litigation counsel shall make every reasonable effort to streamline and expedite discovery in cases under counsel's supervision and control.
(1) Disclosure of Core Information. In those cases where
discovery will be sought, litigation counsel shall, to the extent practicable, make reasonable efforts to agree with other parties mutually to exchange a disclosure statement containing core information relevant to the dispute and to stipulate to an order memorializing such agreement. For purposes of this subsection, ''core information'' means the names and addresses of people having information that is relevant to the proffered claims and defenses, and the location of documents most relevant to the case. This guideline to disclose core information shall not apply in cases while a dispositive motion is pending.
(2) Review of Proposed Document Requests. Each agency within
the executive branch shall establish a coordinated procedure for the conduct and review of document discovery undertaken in litigation directly by that agency when that agency is litigation counsel. The procedure shall include, but is not necessarily limited to, review by a senior lawyer prior to service or filing of the request in litigation to determine that the request is not cumulative or duplicative, unreasonable, oppressive, unduly burdensome or expensive, taking into account the requirements of the litigation, the amount in controversy, the importance of the issues at stake in the litigation, and whether the documents can be obtained from some other source that is more convenient, less burdensome, or less expensive.
(3) Discovery Motions. Before petitioning a court to resolve a
discovery motion or petitioning a court to impose sanctions for discovery abuses, litigation counsel shall attempt to resolve the dispute with opposing counsel. If litigation counsel makes a discovery motion concerning the dispute, he or she shall represent in that motion that any attempt at resolution was unsuccessful or impracticable under the circumstances.
(e) Expert Witnesses. Litigation counsel shall make every reasonable effort to present only reliable expert testimony before a court.
(1) Widely accepted theories. Litigation counsel shall refrain
from presenting expert testimony from experts who base their conclusions on explanatory theories that are not widely accepted. For purposes of this subsection, a theory is widely accepted if it is propounded by at least a substantial minority of the experts in the relevant field.
(2) Expertise in the field. Litigation counsel shall present
expert testimony only from those experts whose knowledge, background, research, or other expertise lies in the particular field about which they are testifying.
(3) Expert disclosure. Litigation counsel shall offer to engage
in mutual disclosure of expert witness information for those experts that a party expects to call as expert witnesses at trial, provided, and to the extent, that the other parties agree to make comparable disclosures of any expert witnesses they expect to call at trial.
(4) Ban on contingency fees. The amount of compensation paid to
an expert witness shall not be linked to a successful outcome in the litigation.
(f) Sanctions. Litigation counsel shall take steps to seek sanctions against opposing counsel and opposing parties where appropriate.
(1) Litigation counsel shall evaluate filings made by opposing
parties and, where appropriate, shall petition the court to impose sanctions against those responsible for abusive practices.
(2) Prior to filing a motion for sanctions, litigation counsel
shall submit the motion for review to the sanctions officer, or his or her designee, within the litigation counsel's agency. Such officer or designee shall be a senior supervising attorney within the agency, and shall be licensed to practice law before a State court, courts of the District of Columbia, or courts of any territory or Commonwealth of the United States. The sanctions officer or designee shall also review motions for sanctions that are filed against litigation counsel, the United States, its agencies, or its officers.
(g) Improved Use of Litigation Resources. Litigation counsel shall employ efficient case management techniques and shall make reasonable efforts to expedite civil litigation in cases under that counsel's supervision and control. This includes but is not limited to:
(1) making reasonable efforts to negotiate with other parties
about, and stipulate to, facts that are not in dispute;
(2) reviewing and revising pleadings and other filings to ensure
that they are accurate and that they reflect a narrowing of issues, if any, that has resulted from discovery;
(3) requesting early trial dates where practicable; and, (4) moving for summary judgment in every case where the movant
would be likely to prevail, or where the motion is likely to narrow the issues to be tried.
(h) Fees and Expenses. To the extent permissible by law, in civil litigation involving disputes over Federal contracts pursuant to 41 U.S.C. 601 et seq., or in any civil litigation initiated by the United States, litigation counsel shall offer to enter into a two-way fee shifting agreement with opposing parties to the dispute, whereby the losing party would pay the prevailing party's fees and costs, subject to reasonable terms and limitations. The Attorney General shall review the legal authority for entering into such agreements.
Sec. 2. Principles To Enact Legislation and Promulgate Regulations Which Do Not Unduly Burden the Federal Court System.
(a) General Duty to Review Legislation and Regulations. Within current budgetary constraints and existing executive branch coordination mechanisms and procedures established in OMB Circular A-19 (legislation) and Executive Order No. 12291 (regulation), each agency that is promulgating new regulations, reviewing existing regulations, developing legislative proposals concerning regulations, and developing new legislation shall adhere to the following requirements:
(1) The agency's proposed legislation and regulations shall be
reviewed by the agency to eliminate drafting errors and needless ambiguity.
(2) The agency's proposed legislation and regulations shall be
written to minimize needless litigation.
(3) The agency's proposed legislation and regulations shall
provide a clear and certain legal standard for affected conduct rather than a general standard, and shall promote simplification and burden reduction.
(b) Specific Issues for Review. In conducting the reviews required by subsection (a), each agency formulating proposed legislation and regulations shall make every reasonable effort to ensure:
(1) that the legislation --
(A) Specifies whether all causes of action arising under the
law are subject to statutes of limitations;
(B) Specifies in clear language the preemptive effect, if any,
to be given to the law;
(C) Specifies in clear language the effect on existing Federal
law, if any, including all provisions repealed or modified;
(D) Provides a clear and certain legal standard for affected
conduct rather than a general standard, while promoting simplification and burden reduction;
(E) Specifies whether private arbitration and other forms of
private dispute resolution are appropriate under enforcement and relief provisions, subject to constitutional requirements;
(F) Specifies whether the provisions of the law are
constitutionally severable, if appropriate;
(G) Specifies in clear language the retroactive effect, if
any, to be given to the law;
(H) Specifies in clear language the applicable burdens of
proof;
(I) Specifies in clear language whether it grants private
parties a right to sue and, if so, the relief available and the conditions and terms for any authorized award of attorney's fees, if any;
(J) Specifies whether State courts have jurisdiction under the
law and, if so, whether and under what conditions an action would be removable to Federal court;
(K) Specifies whether administrative proceedings are to be
required before parties may file suit in court and, if so, describes those proceedings and requires the exhaustion of administrative remedies;
(L) Sets forth the standards governing the assertion of
personal jurisdiction, if any;
(M) Defines key statutory terms, either explicitly or by
reference to other statutes that explicitly define those terms;
(N) Specifies whether the legislation applies to the Federal
Government or its agencies;
(O) Specifies whether the legislation applies to States,
territories, the District of Columbia, and the Commonwealths of Puerto Rico and of the Northern Mariana Islands; and,
(P) Addresses other important issues affecting clarity and
general draftsmanship of legislation set forth by the Attorney General, with the concurrence of the Director of the Office of Management and Budget and after consultation with affected agencies, that are determined to be in accordance with the purposes of this order.
(2) that the regulation --
(A) Specifies in clear language the preemptive effect, if any,
to be given to the regulation;
(B) Specifies in clear language the effect on existing Federal
law or regulation, if any, including all provisions repealed or modified;
(C) Provides a clear and certain legal standard for affected
conduct rather than a general standard, while promoting simplification and burden reduction;
(D) Specifies in clear language the retroactive effect, if
any, to be given to the regulation;
(E) Specifies whether administrative proceedings are to be
required before parties may file suit in court and, if so, describes those proceedings and requires the exhaustion of administrative remedies;
(F) Defines key terms, either explicitly or by reference to
other regulations or statutes that explicitly define those items;
(G) Addresses other important issues affecting clarity and
general draftsmanship of regulations set forth by the Attorney General, with the concurrence of the Director of the Office of Management and Budget and after consultation with affected agencies, that are determined to be in accordance with the purposes of this order.
(c) Certification of Compliance for Agency Legislation or Regulations. When transmitting such draft legislation or regulation to the Office of Management and Budget (''OMB''), the agency must certify that (i) it has reviewed such draft legislation or regulation in light of this section, and (ii) either the draft legislation or regulation meets the applicable standards provided in subsections (a) and (b) of this section, or it is unreasonable to require the particular piece of draft legislation or regulation to meet one or more of those standards. Where the standards are not met, the agency certification must include an explanation of the reasons for the departure from the standards. Recommendations and cost-benefit analyses under subsection (d) of this section shall be included in the agency certification required by this subsection.
(d) One-Way Fee Provisions. Each agency shall review, and shall perform a cost-benefit analysis on, all provisions of any legislation or regulation that the agency proposes which provide for an award for attorney's fees in favor of only one class of parties, including those statutes which require the Government to pay a prevailing private party's attorney's fees. The agency shall recommend against enactment of the fee shifting provisions of such legislation if the costs significantly outweigh the benefits, or if the legislation does not define the fees and costs covered by the statute or detail when an award of fees and costs would be appropriate. Such agency recommendations shall be presented to OMB through the Circular A-19 legislative coordination and clearance process and included in the agency certification required under subsection (c) of this section.
Sec. 3. Principles to Promote Just and Efficient Administrative Adjudications. In order to promote just and efficient resolution of disputes, an agency that adjudicates administrative claims shall, to the extent reasonable and practicable, and when not in conflict with other sections of this order, implement the recommendations of the Administrative Conference of the United States, entitled ''Case Management as a Tool for Improving Agency Adjudication,'' as contained in 1 C.F.R. 305.86-7 (1991).
Sec. 4. Coordination by the Department of Justice.
(a) The Attorney General shall coordinate efforts by Federal agencies to implement sections 1 and 3 of this order.
(b) To implement the principles and purposes announced by this order, the Attorney General is authorized to issue guidelines implementing sections 1 and 3 of this order for the Department of Justice. Such guidelines shall serve as models for internal guidelines which may be issued by other agencies pursuant to this order.
Sec. 5. Definitions. For purposes of this order:
(a) The term ''agency'' shall be defined as that term is defined in section 451 of title 28, United States Code, except that it shall exclude all departments and establishments in the legislative or judicial branches of the United States.
(b) The term ''litigation counsel'' shall be defined as the trial counsel or the office in which such trial counsel is employed, such as the United States Attorney's Office for the district in which the litigation is pending or a litigating division of the Department of Justice. Special Assistant United States Attorneys are included within this definition. Those agencies authorized by law to represent themselves in court without assistance from the Department of Justice are also included in this definition, as are private counsel hired by any Federal agency to conduct litigation on behalf of the agency or the United States.
Sec. 6. No Private Rights Created. This order is intended only to improve the internal management of the executive branch in resolving disputes, conducting litigation in a reasonable and just manner, and reviewing legislation and regulations. This order shall not be construed as creating any right or benefit, substantive or procedural, enforceable at law or in equity by a party against the United States, its agencies, its officers, or any other person. This order shall not be construed to create any right to judicial review involving the compliance or noncompliance of the United States, its agencies, its officers, or any other person with this order. Nothing in this order shall be construed to obligate the United States to accept a particular settlement or resolution of a dispute, to alter its standards for accepting settlements, to forego seeking a consent decree or other relief, or to alter any existing delegation of settlement or litigating authority.
Sec. 7. Scope.
(a) No Applicability to Criminal Matters or Proceedings in Foreign Courts. This order is applicable to civil matters only. It is not intended to affect criminal matters, including enforcement of criminal fines or judgments of forfeiture. This order does not apply to litigation brought by or against the United States in foreign courts or tribunals.
(b) Application of Notice Provision. Notice pursuant to subsection (a) of section 1 is not required (i) in any action to seize or forfeit assets subject to forfeiture or in any action to seize property; (ii) in any bankruptcy, insolvency, conservatorship, receivership, or liquidation proceeding; (iii) when the assets that are the subject of the action or that would satisfy the judgment are subject to flight, dissipation, or destruction; (iv) when the defendant is subject to flight; (v) when, as determined by litigation counsel, exigent circumstances make providing such notice impracticable or such notice would otherwise defeat the purpose of the litigation, such as in actions seeking temporary restraining orders or preliminary injunctive relief; or (vi) in those limited classes of cases where the Attorney General determines that providing such notice would defeat the purpose of the litigation.
(c) Application of Alternative Dispute Resolution and Core Disclosure Provisions. Subsections (c) and (d)(1) of section 1 of this order shall not apply (i) to any action to seize or forfeit assets subject to forfeiture, or (ii) to any debt collection case (including any action for civil penalties or taxes) involving an amount in controversy less than $100,000.
(d) Additional Guidance as to Scope. The Attorney General shall have the authority to issue further guidance as to the scope of this order, except section 2, consistent with the purposes of this order.
Sec. 8. Conflicts with Other Rules. Nothing in this order shall be construed to require litigation counsel or any agency to act in a manner contrary to the Federal Rules of Civil Procedure, Tax Court Rules of Practice and Procedure, State or Federal law, other applicable rules of practice or procedure, or court order.
Sec. 9. Privileged Information. Nothing in this order shall compel or authorize the disclosure of privileged information, sensitive law enforcement information, information affecting national security, or information the disclosure of which is prohibited by law.
Sec. 10. Effective Date. This order shall become effective 90 days after the date of signature. This order shall not apply to litigation commenced prior to the effective date.
GEORGE BUSH
THE WHITE HOUSE,
October 23, 1991.
Editorial note: For the President's remarks on civil justice reform, see p. 1484 of vol. 27 of the Weekly Compilation of Presidential Documents.
03 CFR EO 12779
03 CFR Executive Order 12779 of October 28, 1991
Executive Order 12779 of October 28, 1991
03 CFR Prohibiting Certain Transactions With Respect to Haiti
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), and section 301 of title 3 of the United States Code, and in view of Resolution MRE/RES. 2/91, adopted by the Ad Hoc Meeting of Ministers of Foreign Affairs of the Organization of American States on October 8, 1991, and in order to take additional steps with respect to the national emergency declared in Executive Order No. 12775 of October 4, 1991,
I, GEORGE BUSH, President of the United States of America, find that the grave events in the Republic of Haiti that are continuing to disrupt the legitimate exercise of power by the democratically elected government of that country continue to constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States, and hereby order:
Section 1. Except to the extent provided in regulations, orders, directives, or licenses which may hereafter be issued pursuant to this order, all property and interests in property of the Government of Haiti, its agencies, instrumentalities and controlled entities, including the Banque de la Republique d'Haiti, that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of United States persons, including their overseas branches, are blocked.
Sec. 2. Except to the extent provided in regulations, orders, directives, or licenses which may hereafter be issued pursuant to this order:
(a) Any direct or indirect payments or transfers to the de facto regime in Haiti of funds, including currency, cash, or coins of any nation, or of other financial or investment assets or credits, by any United States person, or by any person organized under the laws of Haiti and owned or controlled by a United States person, are prohibited. All transfers or payments owed to the Government of Haiti shall be made when due into an account at the Federal Reserve Bank of New York, or as otherwise may be directed by the Secretary of the Treasury, to be held for the benefit of the Haitian people.
(b) Except as provided in subsection (d) of this section, the importation into the United States of any goods of Haitian origin, other than publications and other informational materials, or of services performed in Haiti, is prohibited.
(c) The exportation from the United States to Haiti, directly or indirectly, of any goods, technology (including technical data or other information controlled for export pursuant to the Export Administration Regulations, 15 C.F.R. Parts 768 et seq.), or services other than (i) publications and other informational materials; (ii) donations of articles intended to relieve human suffering, such as food, clothing, medicine and medical supplies; and (iii) rice, beans, sugar, wheat flour, and cooking oil, is prohibited.
(d) For a period of 30 days from the effective date of this order, goods containing parts or materials exported from the United States prior to the effective date of this order may be imported into the United States following assembly or processing in Haiti.
Sec. 3. For the purposes of this order:
(a) The term ''de facto regime in Haiti'' means those who seized power illegally from the democratically elected government of President Jean-Bertrand Aristide on September 30, 1991, and includes any persons, agencies, instrumentalities, or entities purporting to act on behalf of the de facto regime in Haiti, or under the asserted authority thereof, or any extraconstitutional successor thereto.
(b) The term ''United States person'' means any United States citizen, permanent resident alien, juridical person organized under the laws of the United States, or any person in the United States.
(c) The term ''goods of Haitian origin'' means goods grown, produced, manufactured, extracted, or processed in Haiti, or which have entered into Haitian commerce.
Sec. 4. The measures taken pursuant to this order are not intended to block private Haitian assets subject to the jurisdiction of the United States, or to prohibit remittances by United States persons to Haitian persons other than the de facto regime in Haiti.
Sec. 5. The Secretary of the Treasury, in consultation with the Secretary of State, is hereby authorized to take such actions, including the promulgation of rules and regulations, and to employ all powers granted to me by the International Emergency Economic Powers Act, as may be necessary to carry out the purposes of this order. Such actions may include prohibiting or regulating payments or transfers of any property, or any transactions involving the transfer of anything of economic value, by any United States person to the de facto regime in Haiti; or prohibiting or regulating the provision of transportation between the United States and Haiti by any vessel or aircraft. The Secretary of the Treasury may redelegate any of these functions to other officers and agencies of the United States Government, all agencies of which are hereby directed to take all appropriate measures within their authority to carry out the provisions of this order, including suspension or termination of licenses or other authorizations in effect as of the date of this order.
Sec. 6. Unless otherwise specified, this order shall be effective as of 11:59 p.m., eastern standard time, November 5, 1991. Sections 1 and 2(a) of this order became effective at 12:23 p.m. on October 4, 1991, pursuant to Executive Order No. 12775.
Sec. 7. Nothing contained in this order shall confer any substantive or procedural right or privilege on any person or organization, enforceable against the United States, its agencies or its officers, or the Federal Reserve Bank of New York or its officers.
Sec. 8. Executive Order No. 12775 of October 4, 1991, is hereby revoked to the extent inconsistent with this order. All delegations, rules, regulations, orders, licenses, and other forms of administrative action made, issued, or otherwise taken pursuant to Executive Order No. 12775 and not revoked administratively shall remain in full force and effect under this order until amended, modified, or terminated by proper authority. The revocation of any provision of Executive Order No. 12775 pursuant to this section shall not affect any violation of any rules, regulations, orders, licenses, or other forms of administrative action pursuant to that order during the period that such provision of that order was in effect.
This order shall be transmitted to the Congress and published in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
October 28, 1991.
03 CFR EO 12780
03 CFR Executive Order 12780 of October 31, 1991
Executive Order 12780 of October 31, 1991
03 CFR Federal Agency Recycling and the Council on Federal Recycling and Procurement Policy
WHEREAS, this Administration is determined to secure for future generations of Americans their rightful share of our Nation's natural resources, as well as a clean and healthful environment in which to enjoy them; and
WHEREAS, two goals of this Administration's environmental policy, cost-effective pollution prevention and the conservation of natural resources, can be significantly advanced by reducing waste and recycling the resources used by this generation of Americans; and
WHEREAS, the Federal Government, as one of the Nation's largest generators of solid waste, is able through cost-effective waste reduction and recycling resources to conserve local government disposal capacity; and
WHEREAS, the Federal Government, as the Nation's largest single consumer, is able through affirmative procurement practices to encourage the development of economically efficient markets for products manufactured with recycled materials;
NOW, THEREFORE, I, GEORGE BUSH, by the authority vested in me as President by the Constitution and the laws of the United States of America, including the Solid Waste Disposal Act, Public Law 89-272, 79 Stat. 997, as amended by the Resource Conservation and Recovery Act (''RCRA''), Public Law 94-580, 90 Stat. 2795 (1976), hereby order as follows:
PART 1 -- PREAMBLE
Section 101. The purpose of this Executive order is to:
(a) Require that Federal agencies promote cost-effective waste reduction and recycling of reusable materials from wastes generated by Federal Government activities.
(b) Encourage economically efficient market demand for designated items produced using recovered materials by directing the immediate implementation of cost-effective Federal procurement preference programs favoring the purchase of such items.
(c) Provide a forum for the development and study of policy options and procurement practices that will promote environmentally sound and economically efficient waste reduction and recycling of our Nation's resources.
(d) Integrate cost-effective waste reduction and recycling programs into all Federal agency waste management programs in order to assist in addressing the Nation's solid waste disposal problems.
(e) Establish Federal Government leadership in addressing the need for efficient State and local solid waste management through implementation of environmentally sound and economically efficient recycling.
Sec. 102. Consistent with section 6002(c)(1) of RCRA (42 U.S.C. 6962(c)(1)), activities and operations of the executive branch shall be conducted in an environmentally responsible manner, and waste reduction and recycling opportunities shall be utilized to the maximum extent practicable, consistent with economic efficiency.
Sec. 103. Consistent with section 6002(c)(2) of RCRA (42 U.S.C. 6962(c)(2)), agencies that generate energy from fossil fuel in systems that have the technical capacity of using energy or fuels derived from solid waste as a primary or supplementary fuel shall use such capability to the maximum extent practicable.
PART 2 -- DEFINITIONS
For purposes of this order:
Sec. 201. ''Federal agency'' means any department, agency, or other instrumentality of the executive branch.
Sec. 202. ''Procurement'' and ''acquisition'' are used interchangeably to refer to the processes through which Federal agencies purchase products.
Sec. 203. ''Recovered materials'' is used as defined in section 1004(19) and 6002(h) of the Resource Conservation and Recovery Act (42 U.S.C. 6903(19) and 6962(h)), as amended.
Sec. 204. ''Recycling'' means the diversion of materials from the solid waste stream and the beneficial use of such materials. Recycling is further defined as the result of a series of activities by which materials that would become or otherwise remain waste, are diverted from the solid waste stream by collection, separation and processing and are used as raw materials in the manufacture of goods sold or distributed in commerce or the reuse of such materials as substitutes for goods made of virgin materials.
Sec. 205. ''Waste reduction'' means any change in a process, operation, or activity that results in the economically efficient reduction in waste material per unit of production without reducing the value output of the process, operation, or activity, taking into account the health and environmental consequences of such change.
PART 3 -- SOLID WASTE RECYCLING PROGRAMS
Sec. 301. Recycling Programs. Each Federal agency that has not already done so shall initiate a program to promote cost-effective waste reduction and recycling of reusable materials in all of its operations and facilities. These programs shall foster (a) practices that reduce waste generation, and (b) the recycling of recyclable materials such as paper, plastic, metals, glass, used oil, lead acid batteries, and tires and the composting of organic materials such as yard waste. The recycling programs implemented pursuant to this section must be compatible with applicable State and local recycling requirements.
Sec. 302. Contractor Operated Facilities. Every contract that provides for contractor operation of a Government-owned or leased facility, awarded more than 210 days after the effective date of this Executive order, shall include provisions that obligate the contractor to comply with the requirements of this Part as fully as though the contractor were a Federal agency.
PART 4 -- VOLUNTARY STANDARDS
Sec. 401. Amendment of OMB Circular No. A-119. The Director of the Office of Management and Budget (''OMB'') shall amend, as appropriate, OMB Circular No. A-119, ''Federal Participation in the Development and Use of Voluntary Standards,'' to encourage Federal agencies to participate in the development of environmentally sound and economically efficient standards and to encourage Federal agency use of such standards.
PART 5 -- PROCUREMENT OF RECOVERED MATERIALS
Sec. 501. Adoption of Affirmative Procurement Programs. Within 180 days after the effective date of this order, each Federal agency shall provide a report to the Administrator of the Environmental Protection Agency regarding the Agency's adoption of an affirmative procurement program; such programs are required by section 6002(i) of RCRA (42 U.S.C. 6962(i)). Within 1 year of the issuance of this order, the Administrator of the Environmental Protection Agency shall report to the President regarding the compliance of each Federal agency with this requirement.
Sec. 502. Annual Review of Affirmative Procurement Programs. In accordance with section 6002(i) of RCRA (42 U.S.C. 6962(i)), each Federal agency shall review annually the effectiveness of its affirmative procurement program and shall provide a report regarding its findings to the Environmental Protection Agency and to the Office of Federal Procurement Policy, beginning with a report covering fiscal year 1992. Such report shall be transmitted by December 15 each year. Reports required by this section shall be made available to the public.
PART 6 -- RECYCLING COORDINATORS AND THE COUNCIL ON FEDERAL RECYCLING AND PROCUREMENT POLICY
Sec. 601. Federal Recycling Coordinator. Within 90 days after the effective date of this order, the Administrator of the Environmental Protection Agency shall designate a senior official of that Agency to serve as the Federal Recycling Coordinator. The Federal Recycling Coordinator shall review and report annually to OMB, at the time of agency budget submissions, the actions taken by the agencies to comply with the requirements of this order.
Sec. 602. Designation of Recycling Coordinators. Within 90 days after the effective date of this order, the head of each Federal agency shall designate an agency employee to serve as Agency Recycling Coordinator. The Agency Recycling Coordinator shall be responsible for:
(a) coordinating the development of an effective agency waste reduction and recycling program that complies with the comprehensive implementation plan developed by the Council on Federal Recycling and Procurement Policy;
(b) coordinating agency action to develop benefits, costs, and savings data measuring the effectiveness of the agency program; and
(c) coordinating the development of agency reports required by this Executive order and providing copies of such reports to the Environmental Protection Agency.
Sec. 603. The Council on Federal Recycling and Procurement Policy. (a) A Council on Federal Recycling and Procurement Policy is hereby established. It shall comprise the Federal Recycling Coordinator, the Chairman of the Council on Environmental Quality, the Administrator of the Office of Federal Procurement Policy, and the Agency Recycling Coordinator and the Procurement Executive of each of the following agencies: the Environmental Protection Agency, the Department of Defense, the General Services Administration, the National Aeronautics and Space Administration, the Department of Energy, the Department of Commerce, and the Department of the Interior. The Federal Recycling Coordinator shall serve as Chair of the Council.
(b) Duties. The Council on Federal Recycling and Procurement Policy shall:
(1) identify and recommend, to OMB, initiatives that will
promote the purposes of this order, including:
(A) the development of appropriate incentives to encourage the
economically efficient acquisition by the Federal Government of products that reduce waste and of products produced with recycled materials;
(B) the development of appropriate incentives to encourage
active participation in economically efficient Federal waste reduction and recycling programs; and
(C) the development of guidelines for cost-effective waste
reduction and recycling activities by Federal agencies;
(2) review Federal agency specifications and standards and
recommend changes that will enhance Federal procurement of products made from recycled and recyclable materials, taking into account the costs and the performance requirements of each agency:
(3) collect and disseminate Federal agencies' information
concerning methods to reduce wastes, types of materials that can be recycled, the costs and savings associated with recycling, and the current market sources and prices of products that reduce waste and of products produced with recycled materials;
(4) assist the development of cost-effective waste reduction and
recycling programs pursuant to this order by developing guidelines for agency waste reduction and recycling programs and by identifying long-range goals for Federal waste reduction and recycling programs;
(5) provide meaningful data to measure the effectiveness and
progress of Federal waste reduction and recycling programs;
(6) provide guidance and assistance to the Agency Recycling
Coordinators in setting up and reporting on agency programs; and
(7) review Federal agency compliance with section 103 of this
order.
PART 7 -- LIMITATION
Sec. 701. This order is intended only to improve the internal management of the executive branch and shall not be interpreted to create any right or benefit, substantive or procedural, enforceable at law by a party against the United States, its officers, or any other person.
Sec. 702. Section 502 and Part 6 of this order shall be effective for 5 years only, beginning on the effective date of this order.
Sec. 703. This order shall be effective immediately.
GEORGE BUSH
THE WHITE HOUSE,
October 31, 1991.
03 CFR EO 12781
03 CFR Executive Order 12781 of November 20, 1991
Executive Order 12781 of November 20, 1991
03 CFR Delegation of Functions and Authorities, Development of Requirements and Regulations, and Correction of Title
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 3603 of the Financial Reports Act of 1988 (22 U.S.C. 5351 et seq.), section 274A(d)(2) and (4) of the Immigration and Nationality Act (''Act''), as amended (8 U.S.C. 1324a(d)(2) and (4)), sections 4561, 6082, and 9561 of title 10 of the United States Code, the Act of June 14, 1987, ch. 2, 30 Stat. 11, 36 (16 U.S.C. 473), section 301 of title 3 of the United States Code, and in order to: (1) delegate functions concerning discussions with foreign governments to improve access by U.S. banking and financial organizations; (2) delegate authority concerning a national employment verification system; (3) delegate authority concerning the development of requirements and regulations for a uniform military ration; and (4) correct the title of the Nez Perce National Forest, it is hereby ordered as follows:
Section 1. Functions Concerning Discussions with Foreign Governments to Improve Access by U.S. Banking and Financial Organizations. The functions vested in the President by section 3603 of the Financial Reports Act of 1988 (22 U.S.C. 5353) are hereby delegated to the Secretary of the Treasury. This delegation is not in derogation of, and shall not affect, the existing authorities of the United States Trade Representative.
Sec. 2. Authority Concerning the Employment Verification System. The authority conferred upon the President by section 274A(d)(4) of the Act, to undertake demonstration projects of different changes in the requirements of the employment verification system, is delegated to the Attorney General. Demonstration projects shall be conducted consistent with the restrictions in section 274A(d)(2) of the Act and shall not extend for a period longer than 3 years. This authority may be redelegated.
Sec. 3. Authority Requirements, and Regulations Concerning a Uniform Military Ration.
(a) Authority. The Secretary of Defense is hereby designated and empowered to exercise, without the approval, ratification, or other action by the President, the authority conferred upon the President by section 4561(a), sections 6082(a) and (d), and section 9561(a) of title 10 of the United States Code. Under this authority the Secretary may prescribe a uniform military ration applicable to the Army, Navy, and Air Force.
(b) Requirements. (1) Components and Quantities. The components and the quantities of the uniform military ration shall reflect military member preferences and satisfy nutritional requirements. (2) Monetary Value. The monetary value of the uniform military ration shall be equal to the monetary value of the ration in effect on the day before the effective date of this order. (3) Index. The Secretary of Defense shall establish, as of the effective date of this order, an index composed of a representative market basket of items equal in value to the ration value. Subsequent to the effective date of this order, and based upon the changing prices of food components in the index, the Secretaries of the military departments shall periodically redetermine the monetary value of the ration. The Secretary of Defense shall review the index periodically, but not less than once a year, to ensure that it reflects changes in food service technology, scientific advances in nutrition, the requirements of the Armed Forces of the United States, and the food preferences of the enlisted members. Increases or decreases in the monetary value of the ration that result from changes in the composition of the food items making up the index shall not exceed 2 percent of the ration value annually.
(c) Regulations. Under regulations of the Secretary of Defense, the Secretary of the Army, the Secretary of the Navy, and the Secretary of the Air Force are authorized, for their respective military departments, to prescribe the issue of special allowances and such special or supplemental rations, defined by component, quantity, or monetary value, as they may consider appropriate. Executive Order No. 11339 of March 28, 1967, is hereby revoked.
Sec. 4. Correction of Title of the Nez Perce National Forest. Executive Order No. 854 of June 26, 1908, is hereby amended by retitling the ''Nezperce National Forest'' the ''Nez Perce National Forest.''
Sec. 5. This order shall take effect immediately.
GEORGE BUSH
THE WHITE HOUSE,
November 20, 1991.
03 CFR EO 12782
03 CFR Executive Order 12782 of November 21, 1991
Executive Order 12782 of November 21, 1991
03 CFR Amending Executive Order No. 12594
By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to amend Executive Order No. 12594, it is hereby ordered as follows:
Section 1. Section 1 of Executive Order No. 12594 is amended to read as follows: ''Awards shall be given for the purpose of recognizing outstanding voluntary contributions by individuals and organizations toward helping others in our society, and for the purpose of demonstrating to all Americans what can be accomplished through voluntary action. Awards shall be named, designed, and presented as determined by the President upon the recommendation of the White House Office of National Service.''
Sec. 2. Section 2 of Executive Order No. 12594 is amended to read as follows: ''The awards may be presented by the President to recipients in categories to be determined by the President or the Director of the White House Office of National Service. The selection process shall be administered by the White House Office of National Service in coordination with the ACTION agency and other appropriate entities. The President may select for the awards any person recommended to the President or any person selected by the President upon his own initiative. ''
GEORGE BUSH
THE WHITE HOUSE,
November 21, 1991.
03 CFR EO 12783
03 CFR Executive Order 12783 of December 17, 1991
Executive Order 12783 of December 17, 1991
03 CFR Extending the President's Council on Rural America
By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to extend the President's Council on Rural America, it is hereby ordered that Executive Order No. 12720 is amended by deleting the text of section 3(e) and inserting in lieu thereof ''The Council shall terminate on January 16, 1993.''
GEORGE BUSH
THE WHITE HOUSE,
December 17, 1991.
03 CFR EO 12784
03 CFR Executive Order 12784 of December 19, 1991
Executive Order 12784 of December 19, 1991
03 CFR Delegation of Authority Regarding the Naval Petroleum and Oil Shale Reserves
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 301 of title 3 and sections 7427 and 7428 of title 10 of the United States Code, and in order to meet the goals and requirements of the Naval Petroleum and Oil Shale Reserves, it is hereby ordered as follows:
Section 1. The functions vested in the President by sections 7427 and 7428 of title 10 of the United States Code are delegated to the Secretary of Energy.
Sec. 2. On or before June 30, 1994, the Secretary of Energy shall prepare and submit to the President a comprehensive report of the agreements and programs executed under the authority granted under this order. The authority delegated herein expires on October 2, 1994.
GEORGE BUSH
THE WHITE HOUSE,
December 19, 1991.
03 CFR EO 12785
03 CFR Executive Order 12785 of December 26, 1991
Executive Order 12785 of December 26, 1991
03 CFR Extending the President's Education Policy Advisory Committee
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Federal Advisory Committee Act, as amended (5 U.S.C. App.), and in order to extend the President's Education Policy Advisory Committee, it is hereby ordered that section 4(b) of Executive Order No. 12687, as amended, is further amended by deleting the date ''December 31, 1991'' and inserting in lieu thereof the date ''December 31, 1992''.
GEORGE BUSH
THE WHITE HOUSE,
December 26, 1991.
03 CFR EO 12786
03 CFR Executive Order 12786 of December 26, 1991
Executive Order 12786 of December 26, 1991
03 CFR Adjustments of Certain Rates of Pay and Allowances
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 704 of Public Law 101-194; section 302 of the Federal Employees Pay Comparability Act of 1990, as incorporated in section 529 of Public Law 101-509; section 633 of Public Law 101-509; section 301(a) of Public Law 102-40; section 305 of Public Law 102-140; section 601 of Public Law 102-190; section 31 of title 2, United States Code; section 104 of title 3, United States Code; sections 5303, 5318, and 5382 of title 5, United States Code; and section 461(a) of title 28, United States Code, it is hereby ordered as follows:
Section 1. Statutory pay systems. The rates of basic pay or salaries of the following statutory pay systems are set forth on the schedules attached hereto and made a part hereof:
(a) The General Schedule (5 U.S.C. 5303, 5332(a)) at Schedule 1;
(b) The Foreign Service Schedule (5 U.S.C. 5303; 22 U.S.C. 3963) at Schedule 2; and
(c) The schedules for the Veterans Health Administration of the Department of Veterans Affairs (5 U.S.C. 5303; 38 U.S.C. 7404; section 301(a) of Public Law 102-40) at Schedule 3.
Sec. 2. Senior Executive Service. Pursuant to section 5382 of title 5, United States Code, the rates of basic pay for members of the Senior Executive Service are set forth on Schedule 4 attached hereto and made a part hereof.
Sec. 3. Executive salaries. The rates of pay or salaries for the following offices and positions are set forth on the schedules attached hereto and made a part hereof:
(a) The Executive Schedule (5 U.S.C. 5312-5316, 5318) at Schedule 5;
(b) The Vice President (3 U.S.C. 104) and the Congress (2 U.S.C. 31) at Schedule 6; and
(c) Justices and judges (28 U.S.C. 5, 44(d), 135, 252, and 461(a)) at Schedule 7.
Sec. 4. Uniformed services. Pursuant to section 601 of Public Law 102-190, the rates of monthly basic pay (37 U.S.C. 203(a)), the rates of basic allowances for subsistence (37 U.S.C. 402), and the rates of basic allowances for quarters (37 U.S.C. 403(a)) for members of the uniformed services are set forth at Schedule 8 attached hereto and made a part hereof.
Sec. 5. Interim geographic adjustments. (a) Pursuant to section 302 of the Federal Employees Pay Comparability Act of 1990, as incorporated in section 529 of Public Law 101-509, employees under the statutory pay systems covered under section 1 of this order, and members of the United States Park Police, who are assigned to a duty station located in one of the geographical areas listed in Schedule 9 shall be entitled, except as may be provided under subsection (b) of this section, to receive an interim geographic adjustment at the rate shown on Schedule 9, which schedule is attached hereto and made a part hereof.
(b)(1) The Office of Personnel Management shall prescribe regulations governing the application of interim geographic adjustments to General Schedule employees, including the determination of what, if any, geographic adjustment shall be payable in the case of employees receiving special pay rates.
(2) The Secretary of State shall prescribe regulations governing the application of interim geographic adjustments to employees under the Foreign Service Schedule, consistent with the regulations and determinations prescribed under paragraph (1) of this subsection.
(3) The Secretary of Veterans Affairs shall prescribe regulations governing the application of interim geographic adjustments to employees under the schedules for the Veterans Health Administration of the Department of Veterans Affairs, consistent with the regulations and determinations prescribed under paragraph (1) of this subsection.
(4) The Secretary of the Interior shall prescribe regulations governing the application of interim geographic adjustments to members of the United States Park Police, consistent with the regulations and determinations prescribed under paragraph (1) of this subsection.
(c) The Office of Personnel Management is hereby designated and empowered to exercise the authority of the President under section 302(c)(1)(D) of the Federal Employees Pay Comparability Act of 1990, as incorporated in section 529 of Public Law 101-509, to extend the application of interim geographic adjustments shown on Schedule 9, upon the request of an agency head, to employees who would not otherwise be covered.
Sec. 6. Effective dates. The rates of monthly basic pay and allowances for subsistence and quarters for members of the uniformed services provided for at Schedule 8 are effective on January 1, 1992. The other schedules provided for herein are effective on the first day of the first applicable pay period beginning on or after January 1, 1992.
Sec. 7. Executive Order No. 12736 of December 12, 1990, is superseded.
GEORGE BUSH
THE WHITE HOUSE,
December 26, 1991.
BASIC PAY)
03 CFR -- EO 12787
03 CFR -- Executive Order 12787 of December 31, 1991
Executive Order 12787 of December 31, 1991
03 CFR -- The Order of Succession of Officers To Act as Secretary of Defense
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 3347 of title 5, United States Code, it is hereby ordered as follows:
Section 1. Succession to the Authority of the Secretary of Defense.
(a) In the event of the death, permanent disability, or resignation of the Secretary of Defense, the incumbents holding the Department of Defense positions designated below shall, in the order indicated, act for and exercise the powers of the Secretary of Defense:
(1) Deputy Secretary of Defense.
(2) Secretary of the Army.
(3) Secretary of the Navy.
(4) Secretary of the Air Force.
(5) Under Secretary of Defense for Acquisition.
(6) Under Secretary of Defense for Policy.
(7) Deputy Under Secretary of Defense for Acquisition.
(8) Director of Defense Research and Engineering, Assistant Secretaries of Defense, the Comptroller of the Department of Defense, the Director of Operational Test and Evaluation, the Deputy Under Secretary of Defense for Policy, and the General Counsel of the Department of Defense, in the order fixed by their length of service as permanent appointees in such positions.
(9) Under Secretaries of the Army, the Navy, and the Air Force, in the order fixed by their length of service as permanent appointees in such positions.
(10) Assistant Secretaries and General Counsels of the Army, the Navy, and the Air Force, in the order fixed by their length of service as permanent appointees in such positions.
(b) In the event of the temporary absence or temporary disability of the Secretary of Defense, the incumbents holding the Department of Defense positions designated in paragraph (a) of this section shall, in the order indicated, act for and exercise the powers of the Secretary of Defense.
(1) In these instances, the designation of an Acting Secretary of Defense applies only for the duration of the Secretary's absence or disability, and does not affect the authority of the Secretary to resume the powers of his office upon his return.
(2) In the event that the Secretary of Defense is merely absent from his position, the Secretary may continue to exercise the powers and fulfill the duties of his office during his absence, notwithstanding the provisions of this order.
(c) Precedence among those officers designated in paragraph (a) of this section who have the same date of appointment shall be determined by the Secretary of Defense at the time that such appointments are made.
(d) Notwithstanding paragraphs (a) and (b) of this section, an officer shall not act for or exercise the powers of the Secretary of Defense under this order if that officer serves only in an acting capacity in the position that would otherwise entitle him to do so.
Sec. 2. Temporary Nature of Succession.
Succession to act for and exercise the powers of the Secretary of Defense pursuant to this order shall be on a temporary or interim basis and shall not have the effect of vacating the statutory appointment held by the successor.
Sec. 3. Revocation of Prior Executive Order.
Executive Order No. 12514 of May 14, 1985, is hereby revoked.
GEORGE BUSH
THE WHITE HOUSE,
December 31, 1991.
03 CFR -- EO 12787 Title 3 -- The President
03 CFR -- EO 12787 Other Presidential Documents
03 CFR -- EO 12787 OTHER PRESIDENTIAL DOCUMENTS
Page
Subchapter A -- (Reserved)
Subchapter B -- Administrative Orders
Subchapter C -- Reorganization Plans (None)
Subchapter D -- Designations (None)
Subchapter E -- Trade Agreement Letters ( )
Appendix A -- List of Messages to Congress Transmitting Budget
Rescissions and Deferrals
Appendix B -- List of Final Rule Documents (None)
Notice of January 2, 1991
Continuation of Libyan Emergency
On January 7, 1986, by Executive Order No. 12543, President Reagan
declared a national emergency to deal with the unusual and extraordinary
threat to the national security and foreign policy of the United States
constituted by the actions and policies of the Government of Libya. On
January 8, 1986, by Executive Order No. 12544, the President took
additional measures to block Libyan assets in the United States. The
President transmitted a notice continuing this emergency to the Congress
and the Federal Register in 1986, 1987, 1988, and 1989. Because the
Government of Libya has continued its actions and policies in support of
international terrorism, the national emergency declared on January 7,
1986, and the measures adopted on January 7 and January 8, 1986, to deal
with that emergency, must continue in effect beyond January 7, 1991.
Therefore, in accordance with section 202(d) of the National Emergencies
Act (50 U.S.C. 1622(d)), I am continuing the national emergency with
respect to Libya. This notice shall be published in the Federal
Register and transmitted to the Congress.
GEORGE BUSH
THE WHITE HOUSE,
Washington, January 2, 1991.
Editorial note: For the President's letter to Congress on the
continuation of the emergency, see the Weekly Compilation of
Presidential Documents (vol. 27, p. 5). For his message to Congress on
the economic sanctions against Libya, see p. 920.
Presidential Determination No. 91-12 of January 2, 1991
Determination Pursuant to Section 2(c)(1) of the Migration and
Refugee Assistance Act of 1962, as Amended
Memorandum for the Secretary of State
Pursuant to Section 2(c)(1) of the Migration and Refugee Assistance
Act of 1962, as amended, 22 U.S.C. 2601(c)(1), I hereby determine that
it is important to the national interest that $12,100,000 be made
available from the U.S. Emergency Refugee and Migration Assistance Fund
(Emergency Fund) to meet unexpected urgent needs of refugees and
migrants in Africa and the Middle East. It is essential to U.S. foreign
policy interests in these regions that we respond to these critical
humanitarian needs.
Of this $12,100,000, $6,000,000 will be used to assist Liberian
refugees and those affected by their impact; $2,500,000 will be
contributed to the United National High Commissioner for Refugees
(UNHCR) and other international or non-governmental organizations for
assistance programs for Sudanese refugees; $600,000 will be contributed
in support of assistance programs for Chadian, Rwandan and Burundi
refugees; and $3,000,000 will be contributed to the Office of the
United Nations Disaster Relief Coordinator (UNDRO) or other
international or non-governmental organizations for needs related to the
Persian Gulf crisis.
You are directed to inform the appropriate committees of the Congress
of this Determination and the obligation of funds under this authority,
and to publish this Determination in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, January 2, 1991.
Presidential Determination No. 91-13 of January 7, 1991
Certification on Compliance With the Namibia/Angola Accords
Memorandum for the Secretary of State
Pursuant to Section 417 of the Foreign Relations Authorization Act,
Fiscal Years 1990 and 1991 (Public Law 101-246; 104 Stat. 72), I hereby
certify that:
(1) the United States has received explicit and reliable assurances
from each of the parties to the Bilateral Agreement between the
Governments of the People's Republic of Angola and the Republic of Cuba
for the Termination of the International Mission of the Cuban Military
Contingent, signed at the United Nations on December 22, 1988, that all
Cuban troops will be withdrawn from Angola by July 1, 1991, and that no
Cuban troops will remain in Angola after that date; and
(2) the Secretary General of the United Nations has assured the
United States that it is his understanding that all Cuban troops will be
withdrawn from Angola by July 1, 1991, and that no Cuban troops will
remain in Angola after that date.
In addition, I hereby determine and certify that:
(1) each of the signatories to the Tripartite Agreement among the
People's Republic of Angola, the Republic of Cuba, and the Republic of
South Africa, signed at the United Nations on December 22, 1988, is in
compliance with its obligations under the Agreement;
(2) the Government of Cuba has complied with its obligations under
Article 1 of the Bilateral Agreement (relating to the calendar for
redeployment and withdrawal of Cuban troops);
(3) the Cubans have not engaged in any offensive military actions
against UNITA, including the use of chemical warfare;
(4) the United Nations and its affiliated agencies have terminated
all funding and other support, in conformity with the United Nations
impartiality package, to the South West Africa People's Organization
(SWAPO); and
(5) the United Nations Angola Verification Mission is demonstrating
diligence, impartiality, and professionalism in verifying the departure
of Cuban troops and the recording of any troop rotations.
You are directed to inform the appropriate committees of the Congress
of this Determination and to provide them with copies of the
justification explaining the basis for this Determination. You are
further directed to publish this Determination in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, January 7, 1991.
Presidential Determination No. 91-14 of January 7, 1991
Assistance for the Economic Community of West Africa States (ECOWAS)
To Support the ECOWAS Ceasefire Monitoring Group (ECOMOG) Peacekeeping
Operation in Liberia
Memorandum for the Secretary of State
By virtue of the authority vested in me by Section 451 of the Foreign
Assistance Act of 1961, as amended (22 U.S.C. 2261), I hereby authorize
the use of up to $2.8 million in funds made available under Chapter 4 of
Part II of the Act in Fiscal Year 1987 for assistance to ECOWAS to
support the ECOMOG peacekeeping operation in Liberia and its related
political and humanitarian activities, notwithstanding any other
provision of law.
You are requested to report this Determination immediately to the
Speaker of the House of Representatives, the House Committee on
Appropriations, and the Senate Committees on Foreign Relations and
Appropriations. You are authorized and directed to publish this
Determination in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, January 7, 1991.
Editorial note: For a statement by Press Secretary Fitzwater, dated
Jan. 9, 1991, on United States assistance for Liberia, see the Weekly
Compilation of Presidential Documents (vol. 27, p. 29).
Memorandum of January 10, 1991
Memorandum for the Archivist of the United States
By the authority vested in me as President by the Constitution and
laws of the United States, including Section 301 of Title 3 of the
United States Code, I hereby authorize you to ascertain whether the
printed enrollment of H.R. 5835, the Omnibus Budget Reconciliation Act
of 1990 (Public Law 101-508), approved on November 5, 1990, is a correct
printing of the hand enrollment and if so to make on my behalf the
certification specified in Section 2(c) of H.J. Res. 682 (Public Law
101-466).
Attached is the printed enrollment that was received at the White
House on January 7, 1991.
This memorandum shall be published in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, January 10, 1991.
Presidential Determination No. 91-15 of January 15, 1991
Presidential Determination on Military Assistance to El Salvador
Memorandum for the Secretary of State
By virtue of the authority vested in me by section 531(d) of the
Foreign Operations, Export Financing, and Related Programs
Appropriations Act, 1991 (Public Law 101-513) (the ''Act''), I hereby
determine that:
(1) proof exists that the Farabundo Marti Liberation Front (''FMLN'')
is continuing to acquire or receive significant shipments of lethal
military assistance from outside El Salvador, and this proof has been
shared with the Congress; and
(2) the FMLN is engaging in acts of violence directed at civilian
targets, and is failing to control such activities by elements subject
to FMLN control.
By virtue of the authority vested in me by the Constitution and laws
of the United States, including 3 U.S.C. 301, I hereby delegate to the
Secretary of State the functions conferred by section 531(i) of the Act.
You are authorized and directed to report this Determination to the
Congress, and to publish it in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, January 15, 1991.
Editorial note: For the statement by Press Secretary Fitzwater, on
the conditional release of military aid to El Salvador, see the Weekly
Compilation of Presidential Documents (vol. 27, p. 49).
Presidential Determination No. 91-16 of January 16, 1991
Determination To Authorize Drawdown Under Section 506 of the Foreign
Assistance Act for Turkey
Memorandum for the Secretary of State
Pursuant to the authority vested in me by section 506(a)(1) of the
Foreign Assistance Act of 1961, as amended, 22 U.S.C. 2318(a)(1) (the
''Act''), I hereby determine that:
(1) an unforeseen emergency exists which requires immediate military
assistance to Turkey; and
(2) the emergency requirement cannot be met under the authority of
the Arms Export Control Act or any other law except section 506 of the
Act.
Therefore, I hereby authorize the provision of up to $32,000,000 in
defense articles from the stocks of the Department of Defense, defense
services of the Department of Defense, and military education and
training to Turkey for the purposes of chapter 2 of part II of the Act.
You are hereby authorized and directed to transmit this determination
to the Congress and to arrange for its publication in the Federal
Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, January 16, 1991.
Presidential Determination No. 91-17 of January 16, 1991
Provision of Military Assistance for Turkey Under Section 614(a)(2)
of the Foreign Assistance Act
Memorandum for the Secretary of State
Pursuant to the authority vested in me by section 614(a)(2) of the
Foreign Assistance Act of 1961, as amended, 22 U.S.C. 2364(a)(2), I
hereby determine that it is vital to the national security interests of
the United States to finance the sale of defense articles and services
to Turkey, notwithstanding any provision of law within the scope of
section 614(a)(2), including any provision of law that restricts the
amount of assistance that can be provided to Turkey to carry out the
provisions of section 23 of the Arms Export Control Act. I hereby
authorize the making of up to $50,000,000 in such financing.
You are hereby authorized and directed to transmit this determination
to the Congress and to arrange for its publication in the Federal
Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, January 16, 1991.
Presidential Determination No. 91-18 of January 22, 1991
Presidential Determination Under Section 402(c)(2)(A) of the Trade
Act of 1974, as Amended -- Bulgaria
Memorandum for the Secretary of State
Pursuant to section 402(c)(2)(A) of the Trade Act of 1974, as amended
(the ''Act'') (19 U.S.C. 2432(c)(2)(A)), I determine that a waiver by
Executive order of the application of subsections (a) and (b) of section
402 of the Act with respect to Bulgaria will substantially promote the
objectives of section 402.
You are authorized and directed to publish this determination in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, January 22, 1991.
Editorial note: For the President's message to the Congress and the
Executive order on trade with Bulgaria, see pp. 69 and 70 of vol. 27
of the Weekly Compilation of Presidential Documents.
Presidential Determination No. 91-19 of January 23, 1991
Presidential Determination Under Section 402(c)(2)(A) of the Trade
Act of 1974, as Amended -- Mongolia
Memorandum for the Secretary of State
Pursuant to section 402(c)(2)(A) of the Trade Act of 1974, as amended
(the ''Act'') (19 U.S.C. 2432(c)(2)(A)), I determine that a waiver by
Executive order of the application of subsections (a) and (b) of section
402 of the Act with respect to Mongolia will substantially promote the
objectives of section 402.
You are authorized and directed to publish this determination in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, January 23, 1991.
Editorial note: For the President's remarks following discussions
with President Ochirbat of Mongolia, see the Weekly Compilation of
Presidential Documents (vol. 27, p. 70). For the President's message to
the Congress and the Executive order on trade with Mongolia, see p. 72
of the same volume.
Presidential Determination No. 91-20 of January 25, 1991
Delegation of Presidential Authorities Under the International
Narcotics Control Act of 1990
Memorandum for the Secretary of State (and) the Secretary of Defense
By virtue of the authority vested in me by the Constitution and the
laws of the United States of America, including the provisions of the
International Narcotics Control Act of 1990 (the INCA), Public Law
101-623, and 3 U.S.C. section 301, I hereby:
(1) Delegate to the Secretary of State the functions conferred upon
me by the following sections of the INCA:
Section 4(a); section 4(e); and, in consultation with the Secretary
of Defense, section 13.
(2) Delegate to the Secretary of Defense the functions conferred upon
me by section 8 of the INCA.
(3) Delegate to the heads of executive departments and agencies those
functions under the INCA relating to notifications to the Congress
insofar as such functions relate to programs for which those heads of
departments and agencies have responsibilities for notifications to the
Congress under Executive Order No. 12163, as amended; provided that
the heads of departments and agencies shall consult with the Secretary
of State before exercising the functions delegated by this paragraph
with regard to narcotics-related assistance.
The Secretary of State is authorized and directed to publish this
memorandum in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, January 25, 1991.
Memorandum of February 11, 1991
Delegation of Authority Under Section 103(a) of the United
States-Canada Free-Trade Agreement Implementation Act of 1988
Memorandum for the United States Trade Representative
By virtue of the authority vested in me as President by the
Constitution and laws of the United States, including section 301 of
title 3 of the United States Code, you are hereby delegated the
authority to perform the functions necessary to fulfill the consultation
and lay-over requirements set forth in section 103(a) (1) through (4) of
the United States-Canada Free-Trade Agreement Implementation Act of 1988
(''the Act''), including:
(1) obtaining advice from the appropriate advisory committees and the
U.S. International Trade Commission on the proposed implementation of an
action by Presidential proclamation;
(2) submitting a report on such action to the House Ways and Means
and Senate Finance Committees; and
(3) consulting with such committees during the 60-day period
following the date on which the requirements under (1) and (2) have been
met.
The President retains the sole authority under the Act to implement
an action by proclamation after the consultation and lay-over
requirements set forth in section 103(a) (1) through (4) have been met.
You are authorized and directed to publish this memorandum in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, February 11, 1991.
Memorandum of February 21, 1991
Delegation of Authority Regarding Report to the Speaker of the House
of Representatives and the President Pro Tempore of the Senate on
Possible Noncommunist Resistance (NCR) Cooperation With the Khmer Rouge
Memorandum for the Secretary of State
By virtue of the authority vested in me by the Constitution and laws
of the United States of America, including section 301 of title 3 of the
United States Code, I hereby delegate to you the functions vested in me
by section 562A(b)(3) of the Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 1991 (Public Law 101-513), relating
to the submission of a report to the Speaker of the House of
Representatives and the President pro tempore of the Senate regarding
possible NCR cooperation with the Khmer Rouge. The authority delegated
by this memorandum may be further redelegated within the Department of
State.
You are authorized and directed to publish this memorandum in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, February 21, 1991.
Memorandum of February 22, 1991
Memorandum for the Chairman of the Board of Trustees of the Institute
of American Indian and Alaska Native Culture and Arts Development
By the authority vested in me as President of the United States by
section 301 of Title 3 of the United States Code, I hereby delegate to
the Chairman of the Board of Trustees of the Institute of American
Indian and Alaska Native Culture and Arts Development the responsibility
under section 1505(a)(2)(B) of P.L. 99-498 (20 U.S.C. 4412(a)(2)(B)) to
publish in the Federal Register an announcement of the expiration of the
terms of the presidentially appointed members of the Board of Trustees
of the Institute of American Indian and Alaska Native Culture and Arts
Development no less than 4 months prior to their expiration. The
authority delegated by this memorandum may be further redelegated within
the Institute.
The delegation of authority to the Secretary of the Interior by
memorandum of June 22, 1988, is hereby rescinded.
This memorandum shall be published in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, February 22, 1991.
Presidential Determination No. 91-21 of February 27, 1991
Determination Under Section 633(a) of the Foreign Assistance Act of
1961, as Amended, Waiving Requirements With Respect to Close Out of
Prior Year Appropriations Accounts
Memorandum for the Secretary of State
Pursuant to the authority vested in me by section 633(a) of the
Foreign Assistance Act of 1961, as amended (the ''Act''), 22 U.S.C.
2393(a), I hereby determine it to be in furtherance of the purposes of
the Act that the functions authorized by the Act be performed without
regard to section 1405 of the National Defense Authorization Act for
Fiscal Year 1991 (Public Law 101-510), and amendments contained therein.
This determination shall apply only to funds appropriated to carry
out the provisions of the Act that were appropriated for fiscal year
1984 and for prior fiscal years, and shall suspend the application of
the provisions of section 1405 of the National Defense Authorization Act
for Fiscal Year 1991, and amendments contained therein, through
September 30, 1992.
You are authorized and directed to publish this determination in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, February 27, 1991.
Presidential Determination No. 91-22 of March 1, 1991
Certifications for Major Narcotics Producing and Transit Countries
Memorandum for the Secretary of State
By virtue of the authority vested in me by Section 481(h)(2)(A)(i) of
the Foreign Assistance Act of 1961, as amended, 22 U.S.C.
2291(h)(2)(A)(i) (''the Act''), I hereby determine and certify that the
following major narcotics producing and/or major narcotics transit
countries/dependent territory have cooperated fully with the United
States, or taken adequate steps on their own, to control narcotics
production, trafficking and money laundering:
The Bahamas, Belize, Bolivia, Brazil, Colombia, Ecuador, Guatemala,
Hong Kong, India, Jamaica, Laos, Malaysia, Mexico, Morocco, Nigeria,
Pakistan, Panama, Paraguay, Peru, and Thailand.
By virtue of the authority vested in me by Section 481(h)(2)(A)(ii)
of the Act, 22 U.S.C. 2291(h)(2)(A)(ii), I hereby determine that it is
in vital national interests of the United States to certify the
following country:
Lebanon.
Information for this country as required under Section 481(h)(2)(B)
of the Act, 22 U.S.C. 2291(h)(2)(B), is enclosed.
I have determined that the following major producing and/or major
transit countries do not meet the standards set forth in Section
481(h)(2)(A) of the Act, 22 U.S.C. 2291(h)(2)(A):
Afghanistan, Burma, Iran, and Syria.
In making these determinations, I have considered the factors set
forth in Section 481(h)(3) of the Act, 22 U.S.C. 2291(h)(3) based on the
information contained in the International Narcotics Control Strategy
Report of 1991. Because the performance of these countries varies, I
have attached an explanatory statement in each case.
You are hereby authorized and directed to report this determination
to the Congress immediately and to publish it in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, March 1, 1991.
STATEMENTS OF EXPLANATION
The Bahamas
The United States enjoyed excellent cooperation on narcotics control
from The Bahamas, a major transit country for cocaine destined for the
United States. Expanded U.S.-Bahamian interdiction efforts and
unilateral measures enforced by the Bahamian Government have encouraged
some traffickers to seek alternate routes to the United States and have
forced others to adopt methods of trafficking through The Bahamas which
are more sophisticated and, therefore, less vulnerable to detection and
apprehension by law enforcement. In 1990, The Bahamas made a strong
effort to curb official corruption. We are encouraged by this trend,
but more attention needs to be directed at this problem and towards
adopting enforcement measures that effectively respond to changing
trafficking methods.
The USG believes substantial quantities of cocaine continue to
transit the Bahamian archipelago. Nonetheless, cocaine seizures in The
Bahamas and adjacent waters decreased from 8.8 metric tons in 1989 to
3.5 metric tons in 1990. Marijuana seizures went from 0.6 metric tons
to 2.3 metric tons in 1990. By comparison, in 1987, 12.6 metric tons of
cocaine and 160.5 metric tons of marijuana were seized. Bahamian
cooperation with the USG, particularly with U.S. law enforcement
agencies, clearly has acted as a deterrent to drug trafficking through
The Bahamas.
In 1990, the United States, The Bahamas, and the United Kingdom
signed an agreement that opened the way for joint narcotics law
enforcement in the Turks and Caicos Islands (TCI). As a result, an
Operation Bahamas and Turks and Caicos (OPBAT) base was established in
TCI in September, extending interdiction coverage southeastward and
bringing to four the total number of bases that are now functioning.
Other significant developments in 1990 included the conviction on
narcotics charges of major Bahamian drug trafficker Livingston Gray and
the successful completion of a year-long drug conspiracy/corruption case
which, by the end of the year, led to the arrests by the Bahamian
Government of twenty-six persons, thirteen of whom were government
officials.
Belize
Joint U.S.-Belizian aerial spray programs and other Government of
Belize efforts resulted in the reduction of marijuana production in the
country to 66 metric tons, about 10 percent of the peak production
levels of five years ago. Narcotics control law enforcement
capabilities in Belize improved, with a number of special operations
during the year resulting in the arrest of traffickers and destruction
of narcotics. Belize has enacted new legislation to modernize its
criminal code to permit asset seizures. The government has begun to
deal with cases of corruption among low-level officials in the police
and defense force, but corruption remains a significant impediment to
law enforcement efforts in Belize.
Bolivia
The Government of Bolivia (GOB) cooperated with USG efforts to reduce
production of refined cocaine products for export to the United States
or other markets. Increasingly effective law enforcement operations are
exemplified by the successful dismantling of a major cocaine trafficking
organization led by Carmelo ''Meco'' Dominquez, simultaneous arrest of
key members, and seizure of assets. Joint police, Air Force and Navy
task forces are expanding counter-narcotics activities to disrupt
trafficking patterns and enforce narcotics laws in areas of drug
production or trafficking activity.
An estimated 51,900 hectares of coca were under cultivation in 1990,
a decline from 53,900 hectares in 1989. Coca eradication during the
year reached a record level of over 8,000 hectares. This is the first
time a net reduction in the amount of coca cultivation has been attained
in Bolivia. The GOB continued to maintain its economic model and to
cooperate effectively in implementation of significant U.S. alternative
agricultural and economic development assistance programs.
Notwithstanding continuing GOB cooperation and important successes
achieved in 1990 -- largely due to significant GOB progress in
developing institutional law enforcement capabilities -- sustained,
effective progress on counter-narcotics was impeded by the ill effects
of pervasive corruption. In addition, Bolivia did not sign a modern
extradition treaty with the United States, which was negotiated between
the two governments in 1990.
Brazil
Brazil is a major transshipment point for Colombian, Peruvian, and
Bolivian traffickers. Brazil engaged in a sustained, but limited
counter-narcotics effort in 1990. Despite severe economic problems and
major government austerity measures, President Collor publicly declared
war on drug trafficking and abuse in 1990. Because of severe budgetary
restraints, Government of Brazil (GOB) counter-narcotics efforts, while
effective, did not increase to match the magnitude of the narcotics
problem in Brazil.
The size of Brazil remained a major impediment to focusing limited
resources against narcotics trafficking within its borders. An
additional problem continued to be the understaffing and underfunding of
the Federal Police involved in narcotics operations.
Brazilian law enforcement efforts led to the destruction of
approximately 14 metric tons of coca leaf, while coca crop surveys
indicate that indigenous coca cultivation declined. Enforcement efforts
also led to a 29 percent increase in cocaine HC1 seizures (2,190 kgs).
Cocaine processing lab seizure statistics remained disappointing, with
the same number (4) seized as in 1989.
Colombia
The USG assisted the Government of Colombia (GOC) in maintaining its
vigorous campaign against narcotrafficking organizations, with a 37
percent increase in seizures over the previous year. Accomplishments
include the seizure of over 50 metric tons of cocaine, the destruction
of over 300 processing labs and 7,000 arrests. Colombian police have
also eradicated virtually all marijuana cultivation in traditional
growing areas. The GOC, led by the National Police, severely damaged
the leadership structure of the Medellin Cartel by keeping drug kingpin
Pablo Escobar constantly on the run, and arresting or killing his key
lieutenants. The GOC also extradited 14 drug suspects to the United
States. At least two major traffickers have surrendered under President
Gaviria's amnesty decrees which guarantee confessing traffickers a
shortened sentence and no extradition. Colombian National Police paid a
high price for their role in the drug campaign with 420 deaths at the
hands of traffickers.
Nevertheless, Colombian traffickers continued to move large
quantities of cocaine out of Colombia. Although the level of trafficker
terrorism diminished somewhat, cartel leaders still exerted tremendous
influence through kidnapping, intimidation and corruption.
Additionally, almost all of the successful counter-narcotics operations
were focused against the Medellin Cartel, allowing the Cali Cartel to
continue lower profile but effective drug smuggling operations.
It is unclear whether more major traffickers will surrender under the
GOC's plea bargaining decree. This strategy's success hinges on
revamping Colombia's judicial system, which is highly susceptible to
threats and corruption, as well as on continued police pressure against
the traffickers. The USG strongly supports efforts to reform and
strengthen Colombia's judicial system, a long-term process, but is
concerned that justice be done in the cases of drug traffickers who have
surrendered. The USG is committed to assisting the GOC to attain our
common goals of dismantling the trafficking networks and stemming the
flow of cocaine from Colombia to the United States.
Ecuador
In 1990, the Government of Ecuador continued its sustained efforts to
prevent coca cultivation from taking hold in Ecuador. The Ecuadorian
National Police's anti-drug arm, Interpol, conducted coca and marijuana
reconnaissance and eradication operations along the border and in the
Pacto area of Pichincha Province. USG reconnaissance did not reveal any
new coca cultivation despite meticulous surveys in all but the
southernmost portion of the country.
In 1990, Interpol, putting its limited resources to excellent use,
seized over 400 kgs of cocaine HC1, 550 kilos of cocaine base and paste,
and 400 kgs of marijuana. Interpol's special precursor chemicals
control unit completed its computerized listing of legitimate chemical
importers. It also established a monitoring program to track chemicals
that can be diverted to produce illicit drugs. The unit has
investigated a number of reports of illegal imports, diversions, and
misuse of chemicals for drug production. During 1990, a special group
of Interpol officers assisted the DEA with the identification of suspect
chemical companies.
Two major developments in 1990 were the enactment of a comprehensive
new drug law and the ratification of the UN Convention Against Illicit
Traffic in Narcotic Drugs and Psychotropic Substances. The drug law
established a ministerial-level National Drug Council, stiffened
sentences for related drug crimes, criminalized diversion of essential
and precursor chemicals, and broadened police authorities in drug
crimes.
The USG has monitored with concern the increase of cocaine and
chemicals transiting Ecuador. Reports indicate that Colombians have
invested heavily in Ecuadorian businesses, including transportation and
fruit-packing companies. Suspected Colombian traffickers have also
bought properties in areas well suited for coca cultivation.
Guatemala
Guatemala is now included in the list of countries to be certified as
it is becoming both a major producer and a major transit country despite
Government of Guatemala (GOG) efforts to prevent this. Cocaine seized
through combined GOG/DEA interdiction efforts totalled over 15 metric
tons, compared to 4 in 1989. This year, after eradication, an estimated
845 hectares of opium poppy could have been available for harvesting, a
31 percent drop from last year's estimate of 1,225 hectares.
During 1990, the government of President Cerezo provided excellent
cooperation with the State Department's aerial eradication program of
opium fields and with DEA, conducting an increasing number of
interdiction operations. For the first time, a morphine laboratory was
seized by the GOG. Also, cooperation between the Governments of
Guatemala and Mexico increased in an effort to reduce drug shipments
across their common border. The government of President Cerezo,
however, was less energetic in conducting full investigations into
allegations of official corruption related to narcotics.
Newly-elected President Serrano has clearly pronounced a commitment
to combat narcotics and corruption and to professionalize narcotic law
enforcement programs. We hope to have a close, cooperative relationship
in this effort.
Hong Kong
Hong Kong remained an important transit point for heroin and opium.
Local drug traffickers use the territory to conduct business and launder
drug proceeds. During 1990, Hong Kong continued its highly effective
enforcement record and its excellent cooperation with U.S. law
enforcement authorities, including several successful joint
investigations. The United States and Hong Kong reached agreement under
the terms of the Hong Kong Drug Trafficking Ordinance (1989) that allows
Hong Kong to enforce asset forfeiture orders. In addition, the Hong
Kong Government cooperated with the USG on money laundering cases and
extraditions.
India
India has become a major conduit for heroin trafficking from both the
Golden Crescent and the Golden Triangle because of increased production
and the disruption of traditional routes through Iran. India cooperates
with the DEA on enforcement matters and with the UN in other
counter-narcotics programs. Indian authorities have yet to devote
adequate resources or priority to stemming the flow of illicit drugs
through India. The Government of India (GOI) also has not fully
addressed its growing drug addiction problem, estimated to be at four
million addicts.
India is also the world's leading producer of licit drugs. GOI
continues to take steps to prevent diversion of its licit cultivation
and production, including reduction of the amount of land licensed for
licit cultivation and the number of farmers licensed to grow licit
opium. The Government has also taken steps to reduce production and
stockpiles to a level consistent with demand in the international
market. Illicit cultivation and production of opium remains illegal
throughout India and the Government has eradicated illegal fields of
poppy when located.
Nevertheless, greater attention needs to be given to reducing the
possibility of diversion through improved monitoring techniques and
practices. The GOI cooperates with the United Nations Fund for Drug
Abuse Control (UNFDAC) in this regard.
Jamaica
Operation Buccaneer, the Government of Jamaica's (GOJ) marijuana
control effort, is in its fifth consecutive year. While over 1,000
hectares of marijuana were eradicated in 1990, a lack of U.S. aviation
resources during the year prevented the GOJ from making more substantial
reductions in the crop. Cultivation, after eradication, expanded
significantly in 1990. The increase indicates that the GOJ will need to
make an expanded effort to bring down net marijuana cultivation in 1991.
The GOJ, however, has made significant gains in seizing cocaine that
transits Jamaica. Two large seizures in August (874 pounds) and October
(652 pounds) contributed to 1990 seizures of 1,672 pounds compared to 28
pounds in 1989. While the GOJ has sought to eliminate bribery and other
forms of public corruption connected with drug dealers, low salaries
continued to make security force personnel vulnerable to payoffs by
narcotics traffickers.
Laos
While making progress, Laos remains the third major producing opium
country. The positive change in drug control policies and broadened
cooperation that was noted in connection with last year's certification
of Laos continued in 1990. An estimated 27 percent decrease in opium
poppy cultivation, due in part to increased central government
persuasion and programs as well as continued implementation of large
alternative crop projects, one funded by the USG, were positive
accomplishments during the year. Lao Government (GOL) authorization of
and participation in DEA and Customs training courses was an encouraging
step. Enforcement measures, which previously were unknown, began in
1990 as the government reported seizures of a ton of marijuana, opium
seizures and arrests, and the destruction of heroin refinery components
and precursor chemicals.
Of serious concern to the United States were continued credible
reports of the involvement in the drug trade of local and military
officials, particularly from the para-statal Mountainous Area
Development Company. These raised questions about the GOL commitment to
counter-narcotics efforts. Moreover, the GOL has not facilitated
cooperative activities with DEA, although the Lao have met several time
with DEA representatives and other U.S. counter-narcotics officials.
This certification is made on the belief that the Lao Government is
endeavoring to strengthen its drug control efforts to continue progress
on reducing cultivation, and to curtail corruption among individuals and
institutions. In addition, the United States will push for more law
enforcement actions as a major element in our relationship, and it will
be a central concern for certification next year.
Malaysia
Malaysia is an important processing and trafficking center for opium
grown in other countries. Much of the product is consumed locally but
significant amounts continue to transit Malaysia destined for world
markets.
Malaysia continued its strong enforcement efforts in 1990, seizing
about 30 kgs of U.S.-bound heroin as well as the same high level of raw
opium as in the previous year. Malaysia has an active demand reduction
program and can point to a decrease in the growth rate of the new addict
population as evidence of its success. In 1990, the United States made
a small grant to the anti-drug police, and top drug officials visited
the United States. Malaysia also put three mobile drug prevention vans
into service and instituted drug screening at the Thai-Malay border for
suspected users.
Mexico
Mexico's anti-narcotics record for 1990 is impressive -- not only in
terms of seizures, arrests and eradication, but in the broader sense of
an overall, systemic improvement in narcotics control. This was due, in
large part, to the commitment and leadership of President Carlos Salinas
de Gortari. Under his direction, Mexico has strengthened its drug laws,
increased funding for anti-narcotics programs, intensified both its
eradication and interdiction efforts, and implemented tough
anti-corruption measures.
Mexico seized a record 46.5 metric tons of cocaine in 1990, second
only to Colombia. The Government of Mexico also issued new directives
to the Federal Judicial Police to ensure protection of human and civil
rights. The GOM continued to expand anti-narcotics cooperation with the
USG; our governments exchanged instruments of ratification for the
broad agreement on narcotics cooperation (Chiles Amendment Agreement)
paving the way for greater cooperation in the future.
Mexico is commended for its accomplishments in 1990, but there is
still much to do. Mexico remains an important supplier of marijuana and
heroin to the United States and a major conduit for the movement of
cocaine from South America. President Salinas has moved vigorously to
combat official corruption, which continues to impede efforts to curb
drug trafficking in Mexico.
Morocco
Morocco is a traditional producer of cannabis and hashish, as well as
a growing transit point for heroin and cocaine destined primarily for
European consumption. Cannabis is mainly cultivated in the northern
mountainous region called the Rif. A recently initiated United Nations
Fund for Drug Abuse Control crop substitution project in the region has
resulted in a significant reduction in cannabis production in the
project area.
There is increasing Moroccan and European concern that Cannabis
smuggling networks will diversify their activities and begin trafficking
in heroin from the Golden Crescent and cocaine from South America. The
lack of direct commercial air connections to the United States limits
the trans-Atlantic flow of narcotics from Morocco except indirectly
through Europe.
Following the signing of a bilateral narcotics agreement with the
United States in 1989, Morocco signed anti-narcotics Mutual Legal
Assistance Agreements with the European Community and Spain in 1990.
Agreement has been reached with the United States on a Mutual Legal
Assistance Treaty (MLAT) but the King has not yet approved its
ratification. Counter-narcotics cooperation with the USG has been
limited, but is expanding.
Nigeria
Nigeria continues as a major heroin trafficking and narcotics
transshipment point to Europe and the United States. There are at least
seven known trafficking organizations in the country which operate with
little interference or difficulty. Corruption, as well as liberal
banking regulations which facilitate narcotics money laundering, remain
serious problems.
The Federal Military Government of Nigeria (FMG) intensified its
cooperation with the USG during 1990. A task force aimed at reducing
Nigeria's involvement in narcotics trafficking by more vigorously
investigating and prosecuting drug traffickers was established and more
stringent visa and passport controls were instituted. Money laundering
investigations have been broadened, improved airport security and
narcotics detection measures installed and two new drug offenses enacted
into law.
While no major traffickers have been arrested and seizures have been
primarily small amounts on individual couriers, overall arrests remain
constant, total seizures are up slightly and the FMG has taken a strong
public stance opposing narcotics. The new Nigerian Drug Law Enforcement
Agency (NDLEA) has requested increased budgetary and personnel resources
to augment its counter-narcotics efforts. Continued high-level FMG
attention and priority as well as resources need to be given to
anti-narcotics activities to bring more positive results.
Pakistan
Pakistan's counter-narcotics efforts in 1990 were affected by a
change in government, an interim government, and national election
campaigns followed by a transition period. Nevertheless, the Government
of Pakistan (GOP) continued successfully to enforce its ban on opium
poppy cultivation in the Northwest Frontier Province (NWFP) in the face
of increased efforts by farmers to increase production. Although total
opium production is estimated to have increased to 165 metric tons in
1990, up from 130 metric tons in 1989, the government's measures
prevented the crop from equaling the 1988 pre-drought level of 205
metric tons.
The results of GOP law enforcement measures remain mixed. No
significant action was taken against heroin laboratories in the NWFP,
and no major traffickers were convicted although two are under arrest.
However, the para-military Frontier Corps uncovered a major narcotics
cache in Baluchistan Province, including nearly two tons of heroin, 100
pounds of opium, and seven tons of hashish intended for export, and has
been more actively engaged in anti-drug patrols along the border.
Moreover, the Frontier Corps and the Customs Service have made several
subsequent large seizures. Meanwhile, the GOP has taken action to stop
the import and delivery of 19 tons of acetic anhydride to heroin labs.
Following the election, the government established a new separate
Ministry of Narcotics Control to coordinate all counter-narcotics
efforts. The government also has enunciated a policy of giving a higher
priority to counter-narcotics activities. On the other hand, the Elite
Units, which the USG and GOP agreed to establish in mid-1989, still lack
the legal authority to function. Continued GOP commitment and
cooperation between the USG and the GOP will be essential to improving
GOP performance in the year ahead. Expanded law enforcement will be a
central concern for certification next year.
Panama
After the U.S. military action, the Government of Panama (GOP) had to
create a drug policy and counter-narcotics infrastructure from the
ground up. Although its record of achievement has been spotty, it is
clear that the new GOP has joined the international effort to fight
drugs. It signed a Chiles Amendment Agreement on Narcotics Cooperation
and a bilateral narcotics control program agreement with the USG. It
has cooperated with USG officials in tracing narcotics dollars through
bank accounts in Panama, begun enforcing tough drug laws which had
earlier been ignored, overturned previous interpretations of laws which
had barred bank records from law enforcement scrutiny, signed an
agreement on controlling essential chemicals, and passed a decree and
implementing regulations against money laundering. The GOP has
reorganized its anti-narcotics police, Customs and Maritime Services.
The result was record seizures of cocaine in 1990. Panamanian popular
support for demand reduction and stronger law enforcement is exemplary.
Despite these impressive steps, the GOP has not demonstrated the
political will to conclude a Mutual Legal Assistance Agreement with the
United States, and a Shiprider Agreement is in the final stages of
negotiation after lengthy delays. These agreements would greatly
facilitate mutual law enforcement cooperation. The GOP has yet to
submit the UN Convention Against Illicit Traffic in Narcotic Drugs and
Psychotropic Substances to the Legislative Assembly for ratification,
but has indicated its intention to do so at the March 1991 National
Assembly session. Its criminal justice system is overburdened and in
chaos, with a backlog of over 17,000 criminal cases -- including drug
cases.
The USG is concerned that drug proceeds continue to be laundered
through Panamanian banks and the Colon Free Zone. Money laundering in
Panama continues to be its most serious narcotics control problem. In
this regard, there have been allegations of official corruption. We are
aware that Panamanian authorities are investigating these allegations.
Our concern is that these investigations be pursued rigorously and that
indictments be issued where warranted. We have told the Panamanian
Government of our concern.
Although the GOP's record is mixed, its achievements, particularly in
the area of law enforcement, indicate a serious desire to work
domestically and internationally to fight the war on drugs. The USG
intends to work closely with the Panamanian Government to help improve
its performance against drug trafficking and money laundering.
Paraguay
During 1990, the Government of Paraguay (GOP) made progress in its
efforts to establish a credible counter-narcotics program. Following
the firing of 19 corrupt officers from the National Narcotics Police
(DINAR), DINAR's budget was more than doubled and a joint
police-military counter-narcotics strike force was established, trained,
and fielded. Two generals were removed for involvement in narcotics
trafficking, the first such action against army commanders since the
1940's. The GOP, with USG assistance, is developing a national drug
prevention strategy and is cooperating more effectively with the USG in
making narcotics seizures.
On the other hand, the GOP's record was spotty. Corruption,
enforcement activities, and drug money laundering remain areas of
particular concern and will require continued attention.
Peru
Peru's Upper Huallaga Valley (UHV) contains the world's largest
concentration of coca cultivations as well as numerous labs for
converting coca leaf into base. Although the UHV is a military
emergency zone, the Peruvian military did not generally support Peruvian
law enforcement units in counter-narcotics activities, nor were they
able to keep key areas free from insurgent control. As in 1989, serious
military and police corruption impeded efforts to expand
counter-narcotics missions. There were, however, also indications in
late 1990 that the Peruvian military had started supporting police
counter-narcotics efforts in the UHV as a matter of policy.
Despite the security threat posed by the Shining Path and
non-cooperation of the Peruvian military, Peruvian law enforcement
agencies destroyed more labs and seized more cocaine than in previous
years. However, these efforts only had a marginal effect on the overall
flow of cocaine base from Peru.
President Fujimori who was inaugurated on July 18, 1990, has taken on
active interest in improving Peru's performance. He proposed a
promising comprehensive narcotics strategy in late 1990, but it has not
yet been implemented. The strategy would place narcotics-related
military and law enforcement efforts, demand reduction and alternative
development under one specialized governmental office (the Autonomous
Authority for Alternative Development). We are engaged in intense
discussions with the Peruvian Government on the basis of this proposal
and are hopeful that our two governments will be able to work together
to combat narcotics production and trafficking in the future. The
ability of the Peruvian Government to implement its comprehensive
narcotics strategy in 1991 will be an important indicator of its resolve
on narcotics issues.
If not for the Presidential transition in Peru and the positive steps
taken by Peru during the last days of 1990, certification for Peru would
have been very problematic. The President has not made the
Determination, pursuant to Section 4(a) of the 1990 International
Narcotics Control Act, which is required to release
counter-narcotics-related economic and military assistance for Peru in
FY-91. Funding for Peru will not be released until we have completed a
comprehensive counter-narcotics cooperation agreement and until more
effective law enforcement actions and police-military cooperation are
under way.
Thailand
U.S. narcotics interests in Thailand, a key trafficking conduit for
drugs produced in neighboring countries, are largely in law enforcement.
We have supported Thai narcotics suppression efforts for twenty years,
and DEA has a strong working relationship with the Thai police.
Nevertheless, greatly increased production in Burma has substantially
increased the flow of narcotics through Thailand. Thai seizures and
arrests of major traffickers have not kept pace. Moreover, the network
of relationships developed for security purposes between Thai military
and government officials and ethnic groups which traffic narcotics from
Burma creates an environment in which narcotics-related corruption
exists.
The United States has expressed its concern over this situation to
the previous Government of Thailand (RTG). We have also raised with the
previous RTG recurring allegations that some politicians and Thai
officials have been involved in or abetted narcotics trafficking. For
its part, the previous RTG said it will take action if we can provide
firm information usable in legal proceedings.
In 1990, the Thai police moved to improve its counter-narcotics
institutional structure by creating a new Narcotics Suppression Bureau
which combines and focuses duties and responsibilities of formerly
disparate units. Nonetheless, the USG believes greater effort is
required to better control the narcotics threat in Thailand.
A military coup d'etat occurred on February 23, 1991. While military
and economic assistance has been suspended because of the coup,
narcotics aid continues to provide support for law enforcement and crop
substitution programs. Serious efforts by the RTG to reduce corruption
and the flow of drugs through Thailand will be a central concern for
certification next year.
STATEMENTS IN SUPPORT OF DENIALS OF CERTIFICATION
Afghanistan
Afghanistan is considered the second largest producer of opium in the
world with an estimated harvest of 585 metric tons in 1989 and 415
metric tons in 1990. The drop in production during 1990 was the result
of a voluntary poppy ban in the Helmand Valley.
The United States has had no diplomatic relations or
counter-narcotics cooperation with the Government of Afghanistan. The
political turmoil and lack of government control over large areas of the
country precluded effective anti-narcotics activity in the opium
producing provinces. There is no indication that the GOA has engaged in
serious counter-narcotics efforts.
Burma
Despite three highly publicized burnings of narcotics and refinery
equipment, the Government of Burma did not demonstrate a comprehensive
interest in narcotics law enforcement in 1990. Opium production, down
slightly from the previous year's level, was nonetheless nearly twice as
large as that of two years ago, and Burma remains the largest opium
producing country in the world. Continued high levels of production are
due to the abandonment of eradication and increased cultivation since
1988, as well as the control of poppy cultivation areas by various
ethnic insurgent and trafficking groups. Burma's military rulers have
reached agreements with a number of insurgent groups which permit
continued poppy cultivation, heroin production, and narcotics
trafficking in the short-term in return for peace and long-term rural
development and crop substitution projects. Burma cooperated with the
United States on narcotics control until September 1988. At that time,
narcotics assistance was suspended along with other U.S. assistance due
to serious human rights violations. Law enforcement liaison with DEA
has continued, but the level of cooperation with the United States on
anti-drug matters was minimal.
Iran
Iran cannot be certified, as it remains unwilling to cooperate with
the United States on counter-narcotics, and we have no conclusive
evidence that the Government of Iran has taken effective steps on its
own to stem drug production or trafficking. Although it has begun
anti-drug discussions with the USSR and United Nations Fund for Drug
Abuse Control, it has not begun to cooperate with its neighbors to
curtail production in, or trafficking through, its territory.
Syria
Syria is a transit point for illicit narcotics as well as a heroin
refining center. Members of the Syrian military continue to control the
Bekaa Valley of Lebanon, where we believe they facilitate and profit
from drug trafficking in this key production area. Discussions with USG
officials on narcotics cooperation, which were reinstituted in 1989,
continued in 1990, but there have been no actions taken by the Syrian
Arab Republic Government to indicate a serious desire to cooperate with
the USG or to take steps on its own against drug trafficking.
JUSTIFICATION FOR NATIONAL INTEREST CERTIFICATION
Lebanon
During 1990, the United States had no narcotics cooperation with
Lebanese authorities as a result of continuing political and social
turmoil and the government's inability to take action against either
poppy or hashish cultivation or trafficking. The Bekaa Valley, the
country's central producing region, remains under the control of the
armed forces of Syria, which fail to enforce anti-narcotics controls.
Lebanese hashish and refined heroin are distributed throughout the
Middle East and onward to Europe and the United States.
U.S. national interests would be damaged by a weakening or collapse
of the Government of Lebanon. The United States needs to have
flexibility to respond to Lebanon's legitimate needs for economic and
developmental assistance. Such assistance could be critical in the
Government of Lebanon's fight for survival and attempt to expand its
control over the country. Broad United States policy objectives in
Lebanon and the region, including narcotics policy objectives, would be
at risk if the Government of Lebanon ceased to exist.
There are no countervailing risks to other United States interests as
the Government of Lebanon presently has no capability to obstruct or
prevent narcotics production or trafficking. United States narcotics
policy seeks to strengthen such capability.
For these reasons, Lebanon is granted a national interest waiver.
Memorandum of March 4, 1991
Certification for Pakistan Under Section 574(b) of the Foreign
Operations, Export Financing, and Related Programs Appropriations Act,
1991
Memorandum for the Secretary of State
Pursuant to section 574 of the Foreign Operations, Export Financing,
and Related Programs Appropriations Act, 1991 (Public Law 101-513) (the
''Act''), I hereby certify that the criteria set forth in section 574(b)
of the Act have been satisfied.
These criteria are as follows:
(1) the state of emergency in Pakistan did not interfere in the fair
conduct of National Assembly elections;
(2) the Government of Pakistan held timely, free, fair and
internationally monitored National Assembly elections, open to the full
participation of all legal parties and all legal candidates of those
parties;
(3) the proceedings of the Special Courts established on August 8 and
August 21, 1990, did not interfere with the conduct of free and fair
elections; and
(4) the process of convening the National Assembly is progressing
without interference.
You are authorized and directed to transmit this certification to the
Congress and to publish it in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, March 4, 1991.
Presidential Determination No. 91-23 of March 6, 1991
Provision of Assistance Under Section 614 of the Foreign Assistance
Act of 1961, as Amended, for Niger and Senegal
Memorandum for the Secretary of State
Based on your advice, pursuant to the authority vested in me by
section 614(a)(2) of the Foreign Assistance Act of 1961, as amended (22
U.S.C. 2364(a)(2)), I hereby determine that it is vital to the national
security interests of the United States to finance the sale of up to an
aggregate of $3.023 million of defense articles and defense services for
Niger and Senegal, notwithstanding any provision of law that earmarked
funds appropriated for fiscal year 1982 for the Sudan, and
notwithstanding section 515(b) of Public Law 101-513 insofar as that
provision would require deobligation to occur in accordance with
amendments of applicable grant or loan agreements. Accordingly, I
hereby authorize the extension of such financing.
You are hereby authorized and directed to transmit this determination
to the Congress and to publish it in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, March 6, 1991.
Presidential Determination No. 91-24 of March 11, 1991
Determination Pursuant to Section 2(c)(1) of the Migration and
Refugee Assistance Act of 1962, as Amended
Memorandum for the Secretary of State
Pursuant to section 2(c)(1) of the Migration and Refugee Assistance
Act of 1962, as amended, 22 U.S.C. 2601(c)(1), I hereby determine that
it is important to the national interest that $6,000,000 be made
available from the U.S. Emergency Refugee and Migration Assistance Fund
to meet the unexpected and urgent needs of refugees and other persons in
the Occupied Territories and Sri Lanka.
Of this amount, $5,000,000 will be contributed to the United Nations
Relief and Works Agency for Palestine Refugees in the Near East (UNRWA)
for emergency food distribution in the Occupied Territories, and
$1,000,000 will be contributed to the International Committee of the Red
Cross (ICRC) to assist victims of the conflict in Sri Lanka.
You are authorized and directed to inform the appropriate committees
of the Congress of this determination and the obligation of funds under
this authority, and to publish this memorandum in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, March 11, 1991.
Presidential Determination No. 91-25 of March 21, 1991
Emergency Military Sales to Israel and Saudi Arabia
Memorandum for the Secretary of State
Pursuant to section 36(b)(1) of the Arms Export Control Act (22
U.S.C. 2776(b)(1)), I hereby determine that an emergency exists that
requires the immediate transfer to Israel of one Patriot fire unit, and
the sale of repair parts and other logistical support to the Kingdom of
Saudi Arabia, in the national security interests of the United States.
The specific foreign military sales cases include:
Transmittal No. 91-18 -- One Patriot fire unit, including eight
missile launching stations, 64 Patriot (PAC 1) missiles, with related
ancillary equipment, hardware, USG and contractor training and support.
Transmittal No. 91-15 -- Logistical services for the Saudi Ordnance
Corps.
Transmittal No. 91-16 -- Repair Parts and other Logistical Support
for the Royal Saudi Land Forces.
Transmittal No. 91-17 -- Repair Parts and other Logistical Support
for the Royal Saudi Air Force.
This memorandum shall be included in the certification transmitted to
the Speaker of the House of Representatives and the Chairman of the
Committee on Foreign Relations of the Senate under section 36(b)(1) of
the Arms Export Control Act with respect to the foreign military sales
cases described herein.
GEORGE BUSH
THE WHITE HOUSE,
Washington, March 21, 1991.
Presidential Certification of March 21, 1991
By the authority vested in me as President by the Constitution and
the laws of the United States of America, including section 5002(o)(1)
of the Oil Pollution Act of 1990 (Public Law 101-380, 104 Stat. 552), I
hereby certify for the year 1991 the following:
(1) that the Prince William Sound Regional Citizens Advisory
Committee fosters the general goals and purposes of section 5002 of the
Oil Pollution Act of 1990 for the year 1991; and
(2) that the Prince William Sound Regional Citizens Advisory
Committee is broadly representative of the communities and interests in
the vicinity of the terminal facilities and Prince William Sound.
This certification shall be published in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, March 21, 1991.
Presidential Determination No. 91-26 of April 6, 1991
Draw Down from Defense Department Stocks for Disaster Assistance in
the Persian Gulf Region
Memorandum for the Secretary of State
Pursuant to the authority vested in me by section 506(a)(2) of the
Foreign Assistance Act of 1961, as amended, 22 U.S.C. 2318(a)(2) (the
Act), I hereby determine that it is in the national interest of the
United States to draw down defense articles from the stocks of the
Department of Defense and defense services of the Department of Defense
in order to provide international disaster assistance in the Persian
Gulf region, including assistance through the International Committee of
the Red Cross, the United Nations High Commissioner for Refugees, and
Turkey and other friendly governments and organizations that may be
approved by the Secretary of State.
Therefore, I hereby authorize furnishing up to $25 million of defense
articles from the stocks of the Department of Defense and defense
services of the Department of Defense for the purposes and under the
authorities of Chapter 9 of Part I of the Act.
You are authorized and directed immediately to report this
determination to the Congress and to arrange for its publication in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, April 6, 1991.
Presidential Determination No. 91-27 of April 6, 1991
Determination Pursuant to Section 2(c)(1) of the Migration and
Refugee Assistance Act of 1962, as Amended
Memorandum for the Secretary of State
Pursuant to section 2(c)(1) of the Migration and Refugee Assistance
Act of 1962, as amended, 22 U.S.C. 2601(c)(1), I hereby determine that
it is important to the national interest that $10,000,000 be made
available from the U.S. Emergency Refugee and Migration Assistance Fund
(Emergency Fund) to meet the unexpected and urgent needs of refugees and
other persons displaced by the crisis in the Middle East.
Included in this drawdown is $10,000,000 for the urgent needs of
those displaced by the crisis in the Middle East. These funds will be
contributed on a multilateral or bilateral basis as appropriate to
international organizations, private voluntary organizations, and other
governmental and non-governmental agencies engaged in the relief
efforts.
You are directed to inform the appropriate committees of the Congress
of this Determination and the obligation of funds under this authority,
and to publish this memorandum in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, April 6, 1991.
Memorandum of April 9, 1991
Delegation of Authority Regarding Report to the Congress on the
Citizens Democracy Corps
Memorandum for the Secretary of State
By virtue of the authority vested in me by the Constitution and laws
of the United States of America, including section 301 of title 3 of the
United States Code, I hereby delegate to you the function vested in me
by section 599F of the Foreign Operations, Export Financing, and Related
Programs Appropriations Act, 1991 (Public Law 101-513), relating to the
submission of a report to the Congress regarding the strategic
implementation plan of the Citizens Democracy Corps. The authority
delegated by this memorandum may be further redelegated within the
Department of State.
You are authorized and directed to publish this memorandum in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, April 9, 1991.
Presidential Determination No. 91-28 of April 16, 1991
Presidential Determination on Proposed Agreement Between the United
States of America and the Czech and Slovak Federal Republic Concerning
Peaceful Uses of Nuclear Energy
Memorandum for the Secretary of State (and) the Secretary of Energy
I have considered the proposed Agreement Between the Government of
the United States of America and the Government of the Czech and Slovak
Federal Republic on Cooperation in Peaceful Uses of Nuclear Energy,
along with the views, recommendations, and statements of the interested
agencies.
I have determined that the performance of the agreement will promote,
and will not constitute an unreasonable risk to, the common defense and
security. Pursuant to section 123 b. of the Atomic Energy Act of 1954,
as amended (42 U.S.C. 2153(b)), I hereby approve the proposed agreement
and authorize you to arrange for its execution.
GEORGE BUSH
THE WHITE HOUSE,
Washington, April 16, 1991.
Editorial note: For the President's message to Congress on the
nuclear energy cooperation agreement, see the Weekly Compilation of
Presidential Documents (vol. 27, p. 440).
Presidential Determination No. 91-29 of April 16, 1991
Presidential Determination on Proposed Agreement Between the United
States of America and the Republic of Hungary Concerning Peaceful Uses
of Nuclear Energy
Memorandum for the Secretary of State (and) the Secretary of Energy
I have considered the proposed Agreement for Cooperation Between the
United States of America and the Republic of Hungary Concerning Peaceful
Uses of Nuclear Energy, along with the views, recommendations, and
statements of the interested agencies.
I have determined that the performance of the agreement will promote,
and will not constitute an unreasonable risk to, the common defense and
security. Pursuant to section 123 b. of the Atomic Energy Act of 1954,
as amended (42 U.S.C. 2153(b)), I hereby approve the proposed agreement
and authorize you to arrange for its execution.
GEORGE BUSH
THE WHITE HOUSE,
Washington, April 16, 1991.
Editorial note: For the President's message to Congress on the
nuclear energy cooperation agreement, see the Weekly Compilation of
Presidential Documents (vol. 27, p. 441).
Presidential Determination No. 91-30 of April 17, 1991
Determination Pursuant to Section 2(c)(1) of the Migration and
Refugee Assistance Act of 1962, as Amended
Memorandum for the Secretary of State
Pursuant to section 2(c)(1) of the Migration and Refugee Assistance
Act of 1962, as amended, 22 U.S.C. 2601(c)(1), I hereby determine that
it is important to the national interest that $15,250,000 be made
available from the U.S. Emergency Refugee and Migration Assistance Fund
(Emergency Fund) to meet the unexpected and urgent needs of refugees and
migrants in Africa.
A total of $15,250,000 will be used to respond to urgent unforeseen
refugee needs in Africa of which $4,000,000 will be contributed to UNHCR
for South African repatriation; $10,000,000 will be contributed to
international relief organizations for Ethiopian and Somali refugees and
returnees in the Horn of Africa; and $1,250,000 will be used for
emergency migration needs in Malawi.
You are directed to inform the appropriate committees of the Congress
of this Determination and the obligation of funds under this authority,
and to publish this memorandum in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, April 17, 1991.
Justification for Presidential Determination Authorizing the Use of
Up to $15,250,000 of Funds From the United States Emergency Refugee and
Migration Assistance Fund
Under Section 2(c)(1) of the Migration and Refugee Assistance Act of
1962, as amended (the Act), 22 U.S.C. 2601(c)(1), the President may
authorize the furnishing of assistance from the United States Emergency
Refugee and Migration Assistance Fund (the Fund) to meet ''unexpected
urgent refugee and migration needs'' whenever he determines it is
''important to the national interest'' to do so. A drawdown from the
Fund in the amount of $15,250,000 is required to respond to such
unexpected urgent needs in Africa.
South African Repatriation -- $4,000,000
On March 21, the South African government agreed to a UNHCR role in
the repatriation of exiled members of South African liberation
movements. U.S. policy in South Africa strongly supports the
negotiation process; the return of exiles is an essential element of
that process.
UNHCR will issue an appeal for funds to repatriate an estimated
40,000 beneficiaries. An immediate U.S. response to this appeal will
promote maximum international response to the UNHCR appeal.
Malawi -- $1,250,000
Several factors have exacerbated Malawi's monumental refugee problem
since the beginning of 1991. Interruption of the transportation food
corridor, low donor commodity commitments, poor harvests, and flooding
have imperiled some 950,000 refugees in Malawi.
In response, WFP has requested $12,000,000 for the purchase and
transport of 35,000 MT of food to keep the pipeline running until new
donor shipments arrive. UNICEF has issued a $925,000 appeal for
emergency support and health care.
Horn Emergencies -- $10,000,000
In late December 1990 serious fighting began in Somalia, ultimately
ousting President Siad Barre from power. The fighting has resulted in
hundreds of thousands of displaced persons in need of humanitarian
assistance -- with Ethiopian refugees leaving refugee camps for Kenya
and Ethiopia, and Somalis crossing the border into Kenya and Ethiopia.
On March 8, UNHCR issued an emergency appeal for $42,000,000. UNHCR
will provide immediate relief assistance to the 20,000 returnee
population and move the 150,000 new Somali refugees, to the extent
possible, to the existing refugee camps. WFP has appealed for an
additional 150,000 MT of food for Ethiopia. The remoteness of the three
separate areas where the returnees/refugees are located adds to the
urgency of the situation. UNHCR will also assist up to 50,000 new
Ethiopian and Somali refugees in Kenya and is programming $1,900,000 for
this purpose.
Presidential Determination No. 91-31 of April 19, 1991
Drawdown From DOD Stocks for Disaster Assistance in the Gulf Region
Memorandum for the Secretary of State (and) the Secretary of Defense
Pursuant to the authority vested in me by section 506(a)(2) of the
Foreign Assistance Act of 1961, as amended (22 U.S.C. 2318(a)(2)) (the
''Act''), I hereby determine that it is in the national interest of the
United States to draw down defense articles from the stocks of the
Department of Defense and defense services of the Department of Defense
for the purpose of the provision of international disaster assistance in
the Gulf Region. Such assistance will be available to meet urgent needs
in the countries of the region, including Iran and Iraq.
Therefore, I hereby authorize the furnishing of up to $50 million of
defense articles from the stocks of the Department of Defense and
defense services of the Department of Defense, for the purposes and
under the authorities of Chapter 9 of Part I of the Act.
In addition, pursuant to the authorities vested in me by section
552(c)(2) of the Act (22 U.S.C. 2348a(c)(2)), I hereby determine that,
as the result of an unforeseen emergency, the provision of assistance
under Chapter 6 of Paragraph II of the Act in amounts in excess of funds
otherwise available for such assistance is important to the national
interests of the United States, and that such unforeseen emergency
requires that immediate provision of assistance under that chapter.
Therefore, I hereby direct the drawdown of commodities and services from
the inventory and resources of the Department of Defense of an aggregate
value of up to $25 million, and authorize that they be furnished under
the authority of that chapter.
The Secretary of State is directed to inform the appropriate
committees of the Congress of this determination and the obligation of
funds under this authority, and to publish this memorandum in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, April 19, 1991.
Presidential Determination No. 91-32 of April 19, 1991
Determination Under Section 2(b)(2)(D)(i) of the Export-Import Bank
Act of 1945, as Amended -- Mongolia
Memorandum for the Secretary of State
Pursuant to section 2(b)(2)(D)(i) of the Export-Import Bank Act of
1945, as amended (12 U.S.C. 635(b)(2)(D)(i)), I determine that it is in
the national interest for the Export-Import Bank of the United States to
guarantee, insure, extend credit, and participate in the extension of
credit in connection with the purchase or lease of any product by, for
use in, or for sale or lease to Mongolia.
You are authorized and directed to report this determination to the
Congress and to publish it in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, April 19, 1991.
Presidential Determination No. 91-33 of April 22, 1991
Determination Pursuant to Section 2(c)(1) of the Migration and
Refugee Assistance Act of 1962, as Amended
Memorandum for the Secretary of State
Pursuant to section 2(c)(1) of the Migration and Refugee Assistance
Act of 1962, as amended, 22 U.S.C. 2601(c)(1), I hereby determine that
it is important to the national interest that $10,000,000 be made
available from the U.S. Emergency Refugee and Migration Assistance Fund
(Emergency Fund) to meet the unexpected and urgent needs of refugees and
other persons displaced by the crisis in the Middle East.
This drawdown provides $10,000,000 for the urgent needs of those
displaced by the crisis in the Middle East. These funds will be
contributed on a multilateral or bilateral basis as appropriate to
international organizations, private voluntary organizations, and other
governmental and non-governmental agencies engaged in the relief efforts
and up to $100,000 will be used only to cover some of the related
administrative expenses necessary to implement and monitor the use of
this assistance.
You are directed to inform the appropriate committees of the Congress
of this determination and the obligation of funds under this authority,
and to publish this memorandum in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, April 22, 1991.
Memorandum of April 25, 1991
Actions Concerning the Generalized System of Preferences
Memorandum for the United States Trade Representative
Pursuant to subsections 502(b)(4) and 502(b)(7) and section 504 of
the Trade Act of 1974, as amended (the 1974 Act)(19 U.S.C. 2462(b)(4),
2462(b)(7), and 2464), I am authorized to make determinations concerning
the alleged expropriation without compensation by a beneficiary
developing country, to make findings concerning whether steps have been
taken or are being taken by certain beneficiary developing countries to
afford internationally recognized worker rights to workers in such
countries, and to modify the application of duty-free treatment under
the Generalized System of Preferences (GSP) currently being afforded to
such beneficiary developing countries as a result of my determinations.
Specifically, after considering a private sector request for a review
concerning the alleged expropriation by Peru of property owned by a
United States person allegedly without prompt, adequate, and effective
compensation, without entering into good faith negotiations to provide
such compensation or otherwise taking steps to discharge its
obligations, and without submitting the expropriation claim to
arbitration, I have determined that it is appropriate to continue to
review the status of such alleged expropriation by Peru.
Second, after considering various private sector requests for a
review of whether or not certain beneficiary developing countries have
taken or are taking steps to afford internationally recognized worker
rights (as defined in subsection 502(a)(4) of the 1974 Act (19 U.S.C.
2462(a)(4))) to workers in such countries, and in accordance with
subsection 502(b)(7) of the 1974 Act (19 U.S.C. 2462(b)(7)), I have
determined that Benin, the Dominican Republic, Haiti, and Nepal have
taken or are taking steps to afford internationally recognized worker
rights, and I have determined that Sudan has not taken and is not taking
steps to afford such internationally recognized rights. Therefore, I am
notifying the Congress of my intention to suspend the GSP eligibility of
Sudan. Finally, I have determined to continue to review the status of
such worker rights in Bangladesh, El Salvador, and Syria.
Further, pursuant to section 504 of the 1974 Act, after considering
various requests for a waiver of the application of section 504(c) of
the 1974 Act (19 U.S.C. 2464(c)) with respect to certain eligible
articles, I have determined that it is appropriate to modify the
application of duty-free treatment under the GSP currently being
afforded to certain articles and to certain beneficiary developing
countries.
Specifically, I have determined, pursuant to subsection 504(d)(1) of
the 1974 Act (19 U.S.C. 2464(d)(1)), that the limitation provided for in
subsection 504(c)(1)(B) of the 1974 Act (19 U.S.C. 2464(c)(1)(B))
should not apply with respect to certain eligible articles because no
like or directly competitive article was produced in the United States
on January 3, 1985. Such articles are enumerated in the list of
Harmonized Tariff Schedule of the United States (HTS) subheadings in
Annex A.
Pursuant to subsection 504(c)(3) of the 1974 Act (19 U.S.C.
2464(c)(3)), I have also determined that it is appropriate to waive the
application of section 504(c) of the 1974 Act with respect to certain
eligible articles from certain beneficiary developing countries. I have
received the advice of the United States International Trade Commission
on whether any industries in the United States are likely to be
adversely affected by such waivers, and I have determined, based on that
advice and on the considerations described in sections 501 and 502(c) of
the 1974 Act (19 U.S.C. 2461 and 2462(c)), that such waivers are in the
national economic interest of the United States. The waivers of
application of section 504(c) of the 1974 Act apply to the eligible
articles in the HTS subheadings and the beneficiary developing countries
set opposite such HTS subheadings enumerated in Annex B.
These determinations shall be published in the Federal Register.
GEORGE BUSH
Annex A
HTS subheadings for which no like or directly competitive article was
produced in the United States on January 3, 1985
HTS Subheading 0406.10.10 2924.29.04 3205.00.20 8527.11.11
Annex B
HTS subheadings and countries granted waivers of section 504(c) of
the 1974 Act
Presidential Determination No. 91-34 of April 25, 1991
Determination Pursuant to Section 2(b)(2) of the Migration and
Refugee Assistance Act of 1962, as Amended
Memorandum for the Secretary of State
Pursuant to section 2(b)(2) of the Migration and Refugee Assistance
Act of 1962, as amended, 22 U.S.C. 2601(b)(2), I hereby designate
refugees from Tibet and Burma as qualifying for assistance under section
2(b)(2) of that Act, and determine that such assistance will contribute
to the foreign policy interests of the United States.
You are authorized and directed to inform the appropriate committees
of the Congress of this determination and the obligation of funds under
this authority, and to publish this determination in the Federal
Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, April 25, 1991.
Memorandum of May 3, 1991
Reports Required by Sections 4 and 6 of the Federal Civil Penalties
Inflation Adjustment Act of 1990
Memorandum for the Director of the Office of Management and Budget
By the authority vested in me by the Constitution and laws of the
United States of America, including sections 4 and 6 of the Federal
Civil Penalties Inflation Adjustment Act of 1990 (Public Law 101-410),
and section 301 of title 3 of the United States Code, I hereby delegate
to you the responsibility for submitting reports on civil monetary
penalties to the Committee on Governmental Affairs of the Senate and the
Committee on Government Operations of the House of Representatives and
to the Congress as required by sections 4 and 6 of that Act.
You are authorized and directed to publish this memorandum in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, May 3, 1991.
Memorandum of May 14, 1991
Waiver of Limitation With Respect to End Strength Level of U.S.
Armed Forces in Japan for Fiscal Year 1991
Memorandum for the Secretary of Defense
Consistent with section 8105(d)(2) of the Department of Defense
Appropriation Act, 1991 (Public Law 101-511; 104 Stat. 1856), I hereby
waive the limitation in section 8105(b) which states that the end
strength level for each fiscal year of all personnel of the Armed Forces
of the United States stationed in Japan may not exceed the number that
is 5,000 less than such end strength level for the preceding fiscal
year, and declare that it is in the national interest to do so.
You are authorized and directed to inform the Congress of this waiver
and of the reasons for the waiver contained in the attached
justification, and to publish this memorandum in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, May 14, 1991.
Justification Pursuant to Section 8105(d)(2) of the Department of
Defense Appropriations Act, 1991 (Public Law No. 101-511; 104 Stat
1856)
In January of this year the Department of Defense signed a new Host
Nation Support Agreement with the Government of Japan in which that
government agreed to pay all utility and Japanese labor costs
incrementally over the next five years (worth $1.7 billion). Because
United States forward-deployed forces stationed in Japan have regional
missions in addition to the defense of Japan, we did not seek to have
the Government of Japan offset all of the direct costs incurred by the
United States related to the presence of all United States military
personnel in Japan (excluding military personnel title costs).
Presidential Determination No. 91-35 of May 26, 1991
Drawdown of Department of Defense Articles and Services for
International Disaster Assistance in Bangladesh
Memorandum for the Secretary of State (and) the Secretary of Defense
Pursuant to the authority vested in me by section 506(a)(2) of the
Foreign Assistance Act of 1961, as amended (22 U.S.C. 2318(a)(2)) (the
''Act''), I hereby determine that it is in the national interest of the
United States to draw down defense articles from the stocks of the
Department of Defense and defense services of the Department of Defense,
for the purpose of providing international disaster assistance in
Bangladesh.
Therefore, I hereby authorize the furnishing of up to $20 million of
defense articles from the stocks of the Department of Defense and
defense services of the Department of Defense, for the purposes and
under the authorities of Chapter 9 of Part I of the Act.
The Secretary of State is authorized and directed to inform the
appropriate committees of the Congress of this determination and the
obligation of funds under this authority, and to publish this memorandum
in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, May 26, 1991.
Presidential Determination No. 91-36 of May 29, 1991
Determination Under Subsection 402(d)(1) of the Trade Act of 1974, as
Amended -- Continuation of Waiver Authority
Memorandum for the Secretary of State
Pursuant to the authority vested in me under the Trade Act of 1974,
as amended, Public Law 93-618, 88 Stat. 1978 (hereinafter ''the Act''),
having determined, pursuant to subsection 402(d)(1) of the Act, 19
U.S.C. 2432(d)(1), that the further extension of the waiver authority
granted by subsection 402(c) of the Act will substantially promote the
objectives of section 402 of the Act, I further determine that the
continuation of the waiver applicable to the People's Republic of China
will substantially promote the objectives of section 402 of the Act.
You are authorized and directed to publish this determination in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, May 29, 1991.
Editorial note: For the President's remarks of May 27 and May 28 on
renewing the most-favored-nation trade status to China, see the Weekly
Compilation of Presidential Documents, (vol. 27, pp. 674-682). For the
President's letter of May 29 on trade with China, see page 687. For a
statement by Press Secretary Fitzwater on trade constraints with China,
see p. 794.
Presidential Determination No. 91-37 of May 29, 1991
Determination Regarding End Strength Level of U.S. Armed Forces in
Europe for Fiscal Year 1991
Memorandum for the Secretary of Defense
Consistent with section 406(b) of the National Defense Authorization
Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1546), I
hereby authorize an end strength level of members of the Armed Forces
assigned to permanent duty ashore in European member nations of the
North Atlantic Treaty Organization in excess of 261,855 for fiscal year
1991, and determine that the national security interests of the United
States require such authorization.
You are authorized and directed to notify the Congress of this
determination and of the necessity therefor contained in the attached
justification, and to publish this determination in the Federal
Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, May 29, 1991.
Presidential Determination No. 91-38 of May 31, 1991
Food Security Wheat Reserve Release
Memorandum for the Secretary of Agriculture
By virtue of the authority vested in me as President by the Food
Security Wheat Reserve Act of 1980 (the ''Act'') (7 U.S.C. 1736f-1), I
hereby authorize the release in fiscal year 1991 of up to 300,000 metric
tons of wheat from the reserve established under the Act (the
''reserve'') for use under Title II of the Agricultural Trade
Development and Assistance Act of 1954, as amended (7 U.S.C. 1691 et
seq.), to meet relief needs that exist in developing countries of the
Middle East, Africa, and Asia, which I hereby determine are suffering
major disasters. The wheat will be used to provide urgent humanitarian
relief to the peoples in the Middle East, Africa, and Asia who are
suffering widespread hunger and malnutrition.
This action is taken because wheat needed for relief in these regions
cannot be programmed for such purpose in a timely manner under the
normal means of obtaining commodities for food assistance due to
circumstances of unanticipated and exceptional need.
You are authorized and directed to publish this determination in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, May 31, 1991.
Presidential Determination No. 91-39 of June 3, 1991
Determination Under Subsection 402(d)(1) of the Trade Act of 1974, as
Amended -- Continuation of Waiver Authority
Memorandum for the Secretary of State
Pursuant to the authority vested in me under the Trade Act of 1974,
as amended, Public Law 93-618, 88 Stat. 1978 (hereinafter ''the Act''),
I determine, pursuant to subsection 402(d)(1) of the Act, 19 U.S.C.
2432(d)(1), that the further extension of the waiver authority granted
by subsection 402(c) of the Act will substantially promote the
objectives of section 402 of the Act applicable to the Republic of
Bulgaria, the Czech and Slovak Federal Republic, the Soviet Union, and
the Mongolian People's Republic will substantially promote the
objectives of section 402 of the Act.
You are authorized and directed to publish this determination in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, June 3, 1991.
Editorial note: For the President's letter to Congressional leaders
and statements by Press Secretary Fitzwater on renewing the
most-favored-nation trade status to these countries, see the Weekly
Compilation of Presidential Documents (vol. 27, pp. 705-707).
Presidential Determination No. 91-40 of June 5, 1991
Presidential Determination Under Subsection 2(b)(2) of the
Export-Import Bank Act of 1945, as Amended -- Bulgaria
Memorandum for the Secretary of State
Pursuant to subsection 2(b)(2) of the Export-Import Bank Act of 1945,
as amended (12 U.S.C. 635(b)(2)), I hereby determine that it is in the
national interest for the Export-Import Bank of the United States to
guarantee, insure, extend credit, and participate in the extension of
credit in connection with the purchase or lease of any product by, for
use in, or for sale or lease to Bulgaria.
You are authorized and directed to report this determination to the
Congress and to publish it in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, June 5, 1991.
Memorandum of June 10, 1991
Delegation of Authority Regarding Report to the Speaker of the House
of Representatives and the President Pro Tempore of the Senate on
Humanitarian and Development Assistance Priorities of the Cambodian
People
Memorandum for the Secretary of State
By virtue of the authority vested in me by the Constitution and laws
of the United States of America, including section 301 of title 3 of the
United States Code, I hereby delegate to the Secretary of State the
functions vested in me by section 562A(d)(2) of the Foreign Operations,
Export Financing, and Related Programs Appropriations Act, 1991 (Public
Law 101-513), relating to the submission of a report to the Congress
regarding humanitarian and development assistance priorities of the
Cambodian people. The authority delegated by this memorandum may be
further redelegated within the Department of State.
You are authorized and directed to publish this memorandum in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, June 10, 1991.
Presidential Determination No. 91-41 of June 19, 1991
Certification on Progress Toward National Reconciliation in Angola
Memorandum for the Secretary of State
Pursuant to Section 5 of Title II of the Dire Emergency Supplemental
Appropriations and Transfers, Urgent Supplementals, and Correcting
Enrollment Errors Act of 1989 (Public Law 101-45; 103 Stat. 120), I
hereby determine that progress is being made toward national
reconciliation in Angola and so certify to the Congress.
You are directed to inform the appropriate committees of the Congress
of this determination and to provide them with copies of the
justification explaining the basis for this determination. You are
further directed to publish this determination in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, June 19, 1991.
Presidential Determination No. 91-42 of June 21, 1991
Determination Pursuant to Section 2(c)(1) of the Migration and
Refugee Assistance Act of 1962, as Amended
Memorandum for the Secretary of State
Pursuant to section 2(c)(1) of the Migration and Refugee Assistance
Act of 1962, as amended, 22 U.S.C. 2601(c)(1), I hereby determine that
it is important to the national interest that $2,000,000 be made
available from the U.S. Emergency Refugee and Migration Assistance Fund
(Emergency Fund) to meet the unexpected urgent needs of refugees and
other displaced persons in the Horn of Africa. These funds will be
contributed to international organizations and other governmental and
non-governmental agencies engaged in relief efforts in the Horn of
Africa.
You are authorized and directed to inform the appropriate committees
of the Congress of this determination and the obligation of funds under
this authority, and to publish this determination in the Federal
Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, June 21, 1991.
Presidential Determination No. 91-43 of June 24, 1991
Determination Under Section 405(a) of the Trade Act of 1974, as
Amended -- the Republic of Bulgaria
Memorandum for the Secretary of State
Pursuant to the authority vested in me under the Trade Act of 1974
(Public Law 93-618, January 3, 1975; 88 Stat. 1978), as amended (the
''Trade Act''), I determine, pursuant to section 405(a) of the Trade
Act, that the ''Agreement on Trade Relations Between the Government of
the United States of America and the Government of the Republic of
Bulgaria'' will promote the purposes of the Trade Act and is in the
national interest.
You are authorized and directed to transmit copies of this
determination to the appropriate Members of Congress and to publish it
in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, June 24, 1991.
Editorial note: For the President's letter to Congressional leaders
on trade with Bulgaria, see the Weekly Compilation of Presidential
Documents (vol. 27, p. 841).
Presidential Determination No. 91-44 of June 24, 1991
Determination Under Section 405(a) of the Trade Act of 1974, as
Amended -- the Mongolian People's Republic
Memorandum for the Secretary of State
Pursuant to the authority vested in me under the Trade Act of 1974
(Public Law 93-618, January 3, 1975; 88 Stat. 1978), as amended (the
''Trade Act''), I determine, pursuant to section 405(a) of the Trade
Act, that the ''Agreement on Trade Relations Between the Government of
the United States of America and the Government of the Mongolian
People's Republic'' will promote the purposes of the Trade Act and is in
the national interest.
You are authorized and directed to transmit copies of this
determination to the appropriate Members of Congress and to publish it
in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, June 24, 1991.
Editorial note: For the President's letter to Congressional leaders
on trade with Mongolia, see the Weekly Compilation of Presidential
Documents (vol. 27, p. 843).
Memorandum of June 25, 1991
Delegation of Authority Regarding Missile Technology Proliferation
Memorandum for the Secretary of State, the Secretary of the Treasury,
the Secretary of Defense, (and) the Secretary of Commerce
By virtue of the authority vested in me by the Constitution and laws
of the United States of America, including section 301 of title 3,
United States Code, and sections 1701-1704 of the National Defense
Authorization Act for Fiscal Year 1991 (Public Law 101-510) (the Act), I
hereby make the following delegations:
1. The authority and duties vested in me by sections 72 and 73 of the
Arms Export Control Act (22 U.S.C. 2797a and b) and section 1704 of the
Act (22 U.S.C. 2797 note) are delegated to the Secretary of State,
except that:
a. The authority vested in me to make determinations with respect to
violations by U.S. persons of the Export Administration Act of 1979
under section 72(a)(1) is delegated to the Secretary of Commerce.
b. The authority vested in me to deny certain U.S. Government
contracts as provided in sections 73(a)(2)(A)(i) and 73(a)(2)(B)(i),
pursuant to a determination made under section 73(a)(1), as well as the
authority vested in me to make the findings provided in sections 72(c),
73(f), and 73(g)(1), are delegated to the Secretary of Defense. Waivers
based upon findings made pursuant to sections 72(c) and 73(f) shall be
issued, transmitted to Congress, and notified to the Secretary of the
Treasury as appropriate by the Secretary of State.
c. The authority vested in me to prohibit certain imports as provided
in section 73(a)(2)(C), pursuant to a determination made by the
Secretary of State under such section, and the obligation to implement
the exceptions provided in section 73(g), are delegated to the Secretary
of the Treasury.
2. The authority and duties vested in me by section 1702 of the Act
and section 11B of the Export Administration Act of 1979 (50 U.S.C. App.
2410b) are delegated to the Secretary of Commerce, except that:
a. The authority and duties vested in me by sections 11B(b)(1)(A)
(insofar as such section authorizes determinations with respect to
violations by U.S. persons of the Arms Export Control Act),
11B(b)(1)(B)(iii) (insofar as such section authorizes determinations
regarding activities by foreign persons), and 11B(b)(5) are delegated to
the Secretary of State.
b. The authority vested in me to make the findings provided in
sections 11B(a)(3), 11B(b)(6), and 11B(b)(7)(A) are delegated to the
Secretary of Defense. Waivers based upon findings made pursuant to
sections 11B (a)(3) and 11B(b)(6) shall be issued, transmitted to
Congress, and notified to the Secretary of the Treasury as appropriate
by the Secretary of Commerce and Secretary of State, respectively.
c. The authority vested in me to prohibit certain imports as provided
in section 11B(b)(1)(B)(iii), pursuant to a determination made by the
Secretary of State under such section, and the obligation to implement
the exceptions provided in section 11B(b)(7), are delegated to the
Secretary of the Treasury.
All functions delegated herein shall be exercised in consultation
among the Secretary of State, the Secretary of Defense, the Secretary of
the Treasury, the Secretary of Commerce, the Director of the Arms
Control and Disarmament Agency, and other departments and agencies as
appropriate.
The functions delegated herein may be redelegated as appropriate.
Regulations necessary to carry out the functions delegated herein may be
issued as appropriate.
The Secretary of State is authorized and directed to publish this
memorandum in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, June 25, 1991.
Presidential Determination No. 91-45 of July 8, 1991
Determination Pursuant to Section 2(c)(1) of the Migration and
Refugee Assistance Act of 1962, as Amended
Memorandum for the Secretary of State
Pursuant to section 2(c)(1) of the Migration and Refugee Assistance
Act of 1962, as amended, 22 U.S.C. 2601(c)(1), I hereby determine that
it is important to the national interest that $7,000,000 be made
available from the U.S. Emergency Refugee and Migration Assistance Fund
(Emergency Fund) to meet the unexpected and urgent needs of refugees and
other displaced persons in the Western Sahara. A total of $7,000,000
will be contributed to the United Nations High Commissioner for its
activities in the Western Sahara.
You are authorized and directed to inform the appropriate committees
of the Congress of this determination and the obligation of funds under
this authority, and to publish this determination in the Federal
Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, July 8, 1991.
Presidential Determination No. 91-46 of July 13, 1991
Assistance to Jordan Under Chapter 4 of Part II of the Foreign
Assistance Act of 1961
Memorandum for the Secretary of State
By virtue of the authority vested in me by section 502(c) of the Dire
Emergency Supplemental Appropriations for Consequences of Operation
Desert Shield/Desert Storm, Food Stamps, Unemployment Compensation
Administration, Veterans Compensation and Pensions, and Other Urgent
Needs Act of 1991 (Public Law 102-27), I hereby determine and certify
that furnishing assistance under chapter 4 of part II of the Foreign
Assistance Act of 1961, as amended, to Jordan would be beneficial to the
peace process in the Middle East.
In addition, by virtue of the authority vested in me by section 586D
of the Foreign Operations, Export Financing, and Related Programs
Appropriations Act, 1991 (Public Law 101-513), I hereby determine and
certify that assistance for Jordan under chapter 4 of part II of the
Foreign Assistance Act of 1961, as amended, is in the national interest
of the United States.
You are authorized and directed to notify the Congress of this
determination and to publish it the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, July 13, 1991.
Notice of July 26, 1991
Continuation of Iraqi Emergency
On August 2, 1990, by Executive Order No. 12722, I declared a
national emergency to deal with the unusual and extraordinary threat to
the national security and foreign policy of the United States
constituted by the actions and policies of the Government of Iraq. By
Executive Orders Nos. 12722 of August 2 and 12724 of August 9, 1990, I
imposed trade sanctions on Iraq and blocked Iraqi government assets.
Similar sanctions were imposed against occupied Kuwait by Executive
Orders Nos. 12723 and 12725 of August 2 and August 9, 1990,
respectively, which were terminated by Executive Order No. 12771 of
July 25, 1991. Because the Government of Iraq has continued its
activities hostile to U.S. interests in the Middle East, the national
emergency declared on August 2, 1990, and the measures adopted on August
2 and August 9, 1990, to deal with that emergency must continue in
effect beyond August 2, 1991. Therefore, in accordance with section
202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), I am
continuing the national emergency with respect to Iraq.
This notice shall be published in the Federal Register and
transmitted to the Congress.
GEORGE BUSH
THE WHITE HOUSE,
Washington, July 26, 1991.
Editorial note: For the President's message to Congress on the
continuation of the national emergency with respect to Iraq, see the
Weekly Compilation of Presidential Documents (vol. 27, p. 1046).
Presidential Determination No. 91-47 of August 2, 1991
Determination Under Section 405(a) of the Trade Act of 1974, as
Amended -- the Union of Soviet Socialist Republics
Memorandum for the Secretary of State
Pursuant to the authority vested in me under the Trade Act of 1974
(Public Law 93-618, January 3, 1975; 88 Stat. 1978), as amended (the
''Trade Act''), I determine, pursuant to section 405(a) of the Trade
Act, that the ''Agreement on Trade Relations Between the United States
of America and the Union of Soviet Socialist Republics'' will promote
the purposes of the Trade Act and is in the national interest.
You are authorized and directed to transmit copies of this
determination to the appropriate Members of Congress and to publish it
in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, August 2, 1991.
Editorial note: For the President's letter to Congressional leaders
on Soviet-United States trade relations, see the Weekly Compilation of
Presidential Documents (vol. 27, p. 1098).
Presidential Certification of August 6, 1991
By the authority vested in me as President by the Constitution and
the laws of the United States of America, including section 5002(o)(2)
of the Oil Pollution Act of 1990, I hereby certify for the year 1991 the
following:
(1) that the Cook Inlet Regional Citizens Advisory Council has met
the general goals and purposes of section 5002 of the Oil Pollution Act
of 1990 for the year 1991; and
(2) that the Cook Inlet Regional Citizens Advisory Council is broadly
representative of the communities and interests in the vicinity of the
terminal facilities and offshore facilities in Cook Inlet.
This certification shall be published in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, August 6, 1991.
Presidential Determination No. 91-48 of August 17, 1991
Determination Under Subsection 402(c)(2)(A) of the Trade Act of 1974,
as Amended -- Romania
Memorandum for the Secretary of State
Pursuant to subsection 402(c)(2)(A) of the Trade Act of 1974, as
amended (the ''Act'') (19 U.S.C. 2432(c)(2)(A)), I determine that a
waiver by Executive order of the application of subsections (a) and (b)
of section 402 of the Act with respect to Romania will substantially
promote the objectives of section 402.
You are authorized and directed to publish this determination in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, August 17, 1991.
Editorial note: For the President's letter to Congress and a
statement by Press Secretary Fitzwater on trade with Romania, see p.
1168 of vol. 27 of the Weekly Compilation of Presidential Documents.
Presidential Determination No. 91-49 of August 24, 1991
Eligibility of Congo To Be Furnished Defense Articles and Services
Under the Foreign Assistance Act and the Arms Export Control Act
Memorandum for the Secretary of State
Pursuant to the authority vested in me by Section 503 of the Foreign
Assistance Act of 1961, as amended (22 U.S.C. 2311), and Section 3(a)(1)
of the Arms Export Control Act, as amended (22 U.S.C. 2753(a)(1)), I
hereby find that the furnishing, sale, and/or lease of defense articles
and services to the Government of Congo will strengthen the security of
the United States and promote world peace.
You are hereby authorized and directed to transmit this determination
to the Congress and to publish it in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, August 24, 1991.
Presidential Determination No. 91-50 of August 24, 1991
Eligibility of Burundi To Be Furnished Defense Articles and Services
Under the Foreign Assistance Act and the Arms Export Control Act
Memorandum for the Secretary of State
Pursuant to the authority vested in me by Section 503 of the Foreign
Assistance Act of 1961, as amended (22 U.S.C. 2311), and Section 3(a)(1)
of the Arms Export Control Act, as amended (22 U.S.C. 2753(a)(1)), I
hereby find that the furnishing, sale, and/or lease of defense articles
and services to the Government of Burundi will strengthen the security
of the United States and promote world peace.
You are hereby authorized and directed to transmit this determination
to the Congress and to publish it in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, August 24, 1991.
Presidential Determination No. 91-51 of August 29, 1991
Determination Pursuant to Section 2(c)(1) of the Migration and
Refugee Assistance Act of 1962, as Amended
Memorandum for the Secretary of State
Pursuant to Section 2(c)(1) of the Migration and Refugee Assistance
Act of 1962, as amended, 22 U.S.C. 2601(c)(1), I hereby determine that
it is important to the national interest that $35,300,000 be made
available from the U.S. Emergency Refugee and Migration Assistance Fund
(the Fund) to meet the unexpected and urgent needs of refugees and other
displaced persons in the Middle East and the Horn of Africa.
A total of $13,300,000 will be used to respond to urgent and
unforeseen refugee needs in the Middle East of which $6,000,000 will be
contributed to the United Israel Appeal to help resettle Ethiopian
refugees in Israel and $7,300,000 will be contributed to the United
Nations Relief and Works Agency to assist Palestinians in the Occupied
Territories and Lebanon. A total of $22,000,000 will be contributed to
international organizations, and other governmental and non-governmental
agencies to cover urgent and unforeseen needs of refugees and displaced
persons in the Horn of Africa.
You are authorized and directed to inform the appropriate committees
of the Congress of this determination and the obligation of funds under
this authority, and to publish this determination in the Federal
Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, August 29, 1991.
Editorial note: For the President's exchange with reporters prior to
a meeting with U.N. High Commissioner for Refugees Sadako Ogata, see the
Weekly Compilation of Presidential Documents (vol. 27, p. 837). For a
statement by Press Secretary Fitzwater on their meeting, see p. 838.
Presidential Determination No. 91-52 of September 13, 1991
Extension of the Exercise of Certain Authorities Under the Trading
With the Enemy Act
Memorandum for the Secretary of State (and) the Secretary of the
Treasury
Under Section 101(b) of Public Law 95-223 (91 Stat. 1625; 50 U.S.C.
App. 5(b) note), and a previous determination made by me on September 5,
1990 (55 FR 37309), the exercise of certain authorities under the
Trading with the Enemy Act is scheduled to terminate on September 14,
1991.
I hereby determine that the extension for one year of the exercise of
those authorities with respect to the applicable countries is in the
national interest of the United States.
Therefore, pursuant to the authority vested in me by Section 101(b)
of Public Law 95-223, I extend for one year, until September 14, 1992,
the exercise of those authorities with respect to countries affected by:
(1) the Foreign Assets Control Regulations, 31 CFR Part 500;
(2) the Transaction Control Regulations, 31 CFR Part 505;
(3) the Cuban Assets Control Regulations, 31 CFR Part 515; and
(4) the Foreign Funds Control Regulations, 31 CFR Part 520.
This memorandum shall be published in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, September 13, 1991.
Presidential Determination No. 91-53 of September 16, 1991
Assistance to Jordan Under Chapter 5 of Part II of the Foreign
Assistance Act of 1961 and Section 23 of the Arms Export Control Act
Memorandum for the Secretary of State
By virtue of the authority vested in me by section 502(c) of the Dire
Emergency Supplemental Appropriations for Consequences of Operation
Desert Shield/Desert Storm, Food Stamps, Unemployment Compensation
Administration, Veterans Compensation and Pensions, and other Urgent
Needs Act of 1991 (Public Law 102-27), I hereby determine and certify
that furnishing assistance under chapter 5 of part II of the Foreign
Assistance Act of 1961, as amended, and under section 23 of the Arms
Export Control Act, to Jordan would be beneficial to the peace process
in the Middle East.
In addition, by virtue of the authority vested in me by section 586D
of the Foreign Operations, Export Financing, and Related Programs
Appropriations Act, 1991 (Public Law 101-513), I hereby determine and
certify that assistance for Jordan under chapter 5 of part II of the
Foreign Assistance Act of 1961, as amended, and under section 23 of the
Arms Export Control Act, is in the national interest of the United
States.
You are authorized and directed to notify the Congress of this
determination and to publish it in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, September 16, 1991.
Notice of September 26, 1991
Continuation of Emergency Regarding Export Control Regulations
On September 30, 1990, consistent with the authority provided me
under the International Emergency Economic Powers Act (50 U.S.C. 1701,
et seq.), I issued Executive Order No. 12730. In that order, I declared
a national emergency with respect to the unusual and extraordinary
threat to the national security, foreign policy, and economy of the
United States in light of the expiration of the Export Administration
Act of 1979, as amended (50 U.S.C. App. 2401, et seq.). Because the
Export Administration Act has not been renewed by the Congress, the
national emergency declared on September 30, 1990, must continue in
effect beyond September 30, 1991. Therefore, in accordance with section
202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), I am
continuing the national emergency declared in Executive Order No.
12730.
This notice shall be published in the Federal Register and
transmitted to the Congress.
GEORGE BUSH
THE WHITE HOUSE,
Washington, September 26, 1991.
Editorial note: For the President's letter to Congress on the
continuation of the emergency with respect to export controls, see the
Weekly Compilation of Presidential Documents (vol. 27, p. 1116). For his
message to Congress on the extension of the national emergency declared
in Executive Order 12730, see p. 1344.
Memorandum of October 1, 1991
Annual Determination on Steel Industry Modernization
Memorandum for the United States Trade Representative
Section 806 of the Steel Import Stabilization Act (19 U.S.C. 2253
note) requires that I make an annual affirmative determination that
specified conditions have been met by the domestic steel industry to
justify continuation of authority under Section 805 to enforce steel
restraint agreements. The attached Report of the President under the
Steel Import Stabilization Act and the report prepared at my direction
by the United States International Trade Commission, Annual Survey
Concerning Competitive Conditions in the Steel Industry and Industry
Efforts to Adjust and Modernize, enumerate the actions taken by the
domestic industry consistent with an affirmative determination under
section 806.
Based on this information, I hereby make an affirmative determination
for the final annual period (October 1, 1990-September 30, 1991) that
during such period:
(A) The major companies of the steel industry, taken as a whole, have
--
(i) committed substantially all of their net cash flow from steel
product operations for the purposes of reinvestment in, and
modernization of, that industry; and
(ii) taken sufficient action to maintain their international
competitiveness;
(B) each of the major companies experiencing positive net cash flow
committed not less than 1 percent of net cash flow to the retraining of
workers; and
(C) the enforcement authority provided under section 805 remains
necessary to maintain the effectiveness of bilateral arrangements
undertaken to eliminate unfair trade practices in the steel sector.
You are hereby authorized and directed to report this determination
to the Committee on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate. This memorandum shall be
published in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, October 1, 1991.
Presidential Determination No. 92-1 of October 4, 1991
Presidential Determination on Proposed Agreement for Cooperation
Between the United States of America and the Republic of Poland
Concerning Peaceful Uses of Nuclear Energy
Memorandum for the Secretary of State (and) the Secretary of Energy
I have considered the proposed Agreement for Cooperation Between the
United States of America and the Republic of Poland Concerning Peaceful
Uses of Nuclear Energy, along with the views, recommendations, and
statements of the interested agencies.
I have determined that the performance of the agreement will promote,
and will not constitute an unreasonable risk to, the common defense and
security. Pursuant to section 123 b. of the Atomic Energy Act of 1954,
as amended (42 U.S.C. 2153(b)), I hereby approve the proposed agreement
and authorize you to arrange for its execution.
GEORGE BUSH
THE WHITE HOUSE,
Washington, October 4, 1991.
Presidential Determination No. 92-2 of October 9, 1991
Determination of FY 1992 Refugee Admissions Numbers and
Authorizations of In-Country Refugee Status Pursuant to Sections 207 and
101(a)(42), Respectively, of the Immigration and Nationality Act
Memorandum for the United States Coordinator for Refugee Affairs
In accordance with section 207 of the Immigration and Nationality Act
(''the Act'') (8 U.S.C. 1157), and after appropriate consultation with
the Congress, I hereby make the following determinations and authorize
the following actions:
a. The admission of up to 142,000 refugees to the United States
during FY 1992 is justified by humanitarian concerns or is otherwise in
the national interest; provided, however, that this number shall be
understood as including persons admitted to the United States during FY
1992 with Federal refugee resettlement assistance under the Amerasian
immigrant admissions program, as provided in paragraph (b) below.
Ten thousand of these admissions numbers shall be set aside for
private sector admissions initiatives, and may be used for any region.
The admission of refugees using these numbers shall be contingent upon
the availability of private sector funding sufficient to cover the
reasonable costs (as defined in the Memorandum of Understanding among
the interested parties) of such admissions.
b. The 142,000 admissions shall be allocated among refugees of
special humanitarian concern to the United States as described in the
documentation presented to the Congress during the consultations that
preceded this determination and in accordance with the following
regional allocations; provided, however, that the number allocated to
the East Asia region shall include persons admitted to the United States
during FY 1992 with Federal refugee resettlement assistance under
section 584 of the Foreign Operations, Export Financing, and Related
Programs Appropriations Act of 1988, as contained in section 101(e) of
Public Law 100-202 (Amerasian immigrants and their family members);
provided further that the number allocated to the Soviet Union shall
include persons admitted who were nationals of the Soviet Union, or in
the case of persons having no nationality, who were habitual residents
of the Soviet Union, prior to September 2, 1991: Africa 6,000 East Asia
52,000 Soviet Union 61,000 Eastern Europe 3,000 Near East/South Asia
6,000 Latin America/Caribbean 3,000 Unallocated (funded) 1,000
Unallocated (funded by the private sector) 10,000
Utilization of the 132,000 federally funded admissions numbers shall
be limited by such public and private funds as shall be available for
refugee and Amerasian immigrant admissions in FY 1992. You are hereby
authorized and directed to so advise the judiciary committees of the
Congress.
The 1,000 unallocated federally funded numbers shall be allocated as
needed. Unused admissions numbers allocated to a particular region
within the 132,000 federally funded ceiling may be transferred to one or
more other regions if there is an overriding need for greater numbers
for the region or regions to which the numbers are being transferred.
You are hereby authorized and directed to consult with the judiciary
committees of the Congress prior to any such reallocation.
The 10,000 privately funded admissions not designated for any country
or region may be used for refugees of special humanitarian concern to
the United States in any region of the world at any time during the
fiscal year. You are hereby authorized and directed to notify the
judiciary committees of the Congress in advance of the intended use of
these numbers.
In 1990, 5,106 aliens were granted asylum in the United States.
c. An additional 10,000 refugee admissions numbers shall be made
available during FY 1992 for the adjustment to permanent resident status
under section 209(b) of the Act (8 U.S.C. 1159(b)) of aliens who have
been granted asylum in the United States under section 208 of the Act (8
U.S.C. 1158), as this is justified by humanitarian concerns or is
otherwise in the national interest.
In accordance with section 101(a)(42) of the Act (8 U.S.C.
1101(a)(42)), and after appropriate consultation with the Congress, I
also specify that, for FY 1992, the following persons may, if otherwise
qualified, be considered refugees for the purpose of admission to the
United States while still within their countries of nationality or
habitual residence:
a. Persons in Vietnam.
b. Persons in Laos.
c. Persons in the countries of Latin America and the Caribbean.
d. Persons in the Soviet Union.
You are authorized and directed to report this determination to the
Congress and to publish it in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, October 9, 1991.
Editorial note: For the President's statement on the mission to the
Soviet Union to assess food and agricultural requirements, see the
Weekly Compilation of Presidential Documents (vol. 27, p. 1374).
Presidential Determination No. 92-3 of October 16, 1991
Determination Under Subsections 402(a) and 409(a) of the Trade Act of
1974 -- Emigration Policies of the Czech and Slovak Federal Republic
Memorandum for the Secretary of State
Pursuant to the authority vested in me by subsections 402(a) and
409(a) of the Trade Act of 1974 (19 U.S.C. 2432(a) and 2439(a)) (''the
Act''), I determine that the Czech and Slovak Federal Republic is not in
violation of paragraph (1), (2), or (3) of subsection 402(a) of the Act,
or paragraph (1), (2), or (3) of subsection 409(a) of the Act.
You are authorized and directed to publish this determination in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, October 16, 1991.
Memorandum of October 21, 1991
Delegation of Authority Regarding Report to the Committee on Foreign
Relations of the Senate and the Committee on Foreign Affairs of the
House of Representatives on the Expenditure of Funds for Humanitarian
and Development Assistance for Cambodians
Memorandum for the Secretary of State
By virtue of the authority vested in me by the Constitution and laws
of the United States of America, including section 301 of Title 3 of the
United States Code, I hereby delegate to the Secretary of State the
functions vested in me by section 562A(a)(2) of the Foreign Operations,
Export Financing, and Related Programs Appropriations Act, 1991 (Public
Law 101-513), relating to the submission of a report to the Committee on
Foreign Relations of the Senate and the Committee on Foreign Affairs of
the House of Representatives regarding expenditure of funds for
humanitarian and development assistance for Cambodians. The authority
delegated by this memorandum may be further redelegated within the
Department of State.
You are authorized and directed to publish this memorandum in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, October 21, 1991.
Presidential Determination No. 92-4 of October 24, 1991
Employment of Soviet Nationals at U.S. Diplomatic and Consular
Missions in the Soviet Union
Memorandum for the Secretary of State
By the authority vested in me by the Constitution and laws of the
United States, including section 301 of title 3 of the United States
Code and section 136 of the Foreign Relations Authorization Act, Fiscal
Years 1986 and 1987 (Public Law 99-93) (''the Act''), I hereby determine
that implementation of section 136(a) of the Act poses undue practical
and administrative difficulties. Consistent with this determination,
you are authorized to employ Soviet nationals in nonsensitive areas of
the New Embassy Compound in Moscow under strict monitoring by cleared
Americans. Further, I delegate to you the responsibility vested in me
by section 136(b) of the Act to report to the Congress on circumstances
relevant to this determination. Such responsibility may be redelegated
within the Department of State.
You are authorized and directed to report this determination to the
Congress and to publish it in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, October 24, 1991.
Notice of November 12, 1991
Continuation of Iran Emergency
On November 14, 1979, by Executive Order No. 12170, the President
declared a national emergency to deal with the threat to the national
security, foreign policy, and economy of the United States constituted
by the situation in Iran. Notices of the continuation of this national
emergency have been transmitted annually by the President to the
Congress and the Federal Register, most recently on November 9, 1990.
Because our relations with Iran have not yet returned to normal, and the
process of implementing the January 19, 1981, agreements with Iran is
still underway, the national emergency declared on November 14, 1979,
must continue in effect beyond November 14, 1991. Therefore, in
accordance with section 202(d) of the National Emergencies Act (50
U.S.C. 1622(d)), I am continuing the national emergency with respect to
Iran. This notice shall be published in the Federal Register and
transmitted to the Congress.
GEORGE BUSH
THE WHITE HOUSE,
Washington, November 12, 1991.
Editorial note: For the President's message to Congress on the
continuation of the emergency, see the Weekly Compilation of
Presidential Documents (vol. 27, p. 1632).
Presidential Determination No. 92-5 of November 13, 1991
Determination To Authorize the Furnishing of Goods and Services to
Senegal
Memorandum for the Secretary of State (and) the Secretary of Defense
Pursuant to the authority vested in me by section 552(c)(2) of the
Foreign Assistance Act of 1961, as amended, 22 U.S.C. 2348a(c)(2), (the
''Act''), I hereby determine that:
(1) as a result of an unforeseen emergency, the provision of
assistance under Chapter 6 of Part II of the Act in amounts in excess of
funds otherwise available for such assistance is important to the
national interest of the United States; and
(2) such unforeseen emergency requires the immediate provision of
assistance under Chapter 6 of Part II of the Act.
I therefore direct the drawdown of commodities and services from the
inventory and resources of the Department of Defense of an aggregate
value not to exceed $10 million to support Senegal's deployment of
peacekeeping forces to Liberia.
The Secretary of State is authorized and directed to report this
determination to the Congress and to publish it in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, November 13, 1991.
Notice of November 14, 1991
Continuation of Emergency Regarding Export Control Regulations
On November 16, 1990, consistent with the authority provided me under
the International Emergency Economic Powers Act (50 U.S.C. 1701, et
seq.), I issued Executive Order No. 12735. In that order, I declared a
national emergency with respect to the unusual and extraordinary threat
to the national security and foreign policy of the United States posed
by the proliferation of chemical and biological weapons. Because the
proliferation of these weapons continues to pose an unusual and
extraordinary threat to the national security and foreign policy of the
United States, the national emergency declared on November 16, 1990,
must continue in effect beyond November 16, 1991. Therefore, in
accordance with section 202(d) of the National Emergencies Act (50
U.S.C. 1622(d)), I am continuing the national emergency declared in
Executive Order No. 12735.
This notice shall be published in the Federal Register and
transmitted to the Congress.
GEORGE BUSH
THE WHITE HOUSE,
Washington, November 14, 1991.
Editorial note: For the President's message to the Congress
reporting on the national emergency with respect to chemical and
biological weapons proliferation, see the Weekly Compilation of
Presidential Documents (vol. 27, p. 825).
Memorandum of November 26, 1991
Delegation of Authority With Respect to the Report on Persian Gulf
War Criminals
Memorandum for the Secretary of State
By virtue of the authority vested in me by the Constitution and laws
of the United States of America, including section 301 of title 3 of the
United States Code, I hereby delegate to you the reporting function
vested in me by section 301(c) of the Foreign Relations Authorization
Act, Fiscal Years 1992 and 1993 (Public Law 102-138). This function
shall be exercised in consultation with the Secretary of Defense and the
Attorney General.
You are authorized and directed to publish this memorandum in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, November 26, 1991.
Presidential Determination No. 92-6 of December 6, 1991
Eligibility of the Czech and Slovak Federal Republic To Be Furnished
Defense Articles and Services Under the Foreign Assistance Act and the
Arms Export Control Act
Memorandum for the Secretary of State
Pursuant to the authority vested in me by section 503(a) of the
Foreign Assistance Act of 1961, as amended (22 U.S.C. 2311(a)), and
section 3(a)(1) of the Arms Export Control Act, as amended (22 U.S.C.
2753(a)(1)), I hereby find that the furnishing of defense articles and
services to the Government of the Czech and Slovak Federal Republic will
strengthen the security of the United States and promote world peace.
You are authorized and directed to transmit this determination to the
Congress and to publish it in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, December 6, 1991.
Presidential Determination No. 92-7 of December 6, 1991
Eligibility of the Republic of Hungary To Be Furnished Defense
Articles and Services Under the Foreign Assistance Act and the Arms
Export Control Act
Memorandum for the Secretary of State
Pursuant to the authority vested in me by section 503(a) of the
Foreign Assistance Act of 1961, as amended (22 U.S.C. 2311(a)), and
section 3(a)(1) of the Arms Export Control Act, as amended (22 U.S.C.
2753(a)(1)), I hereby find that the furnishing of defense articles and
services to the Government of the Republic of Hungary will strengthen
the security of the United States and promote world peace.
You are authorized and directed to transmit this determination to the
Congress and to publish it in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, December 6, 1991.
Presidential Determination No. 92-8 of December 6, 1991
Eligibility of the Republic of Poland To Be Furnished Defense
Articles and Services Under the Foreign Assistance Act and the Arms
Export Control Act
Memorandum for the Secretary of State
Pursuant to the authority vested in me by section 503(a) of the
Foreign Assistance Act of 1961, as amended (22 U.S.C. 2311(a)), and
section 3(a)(1) of the Arms Export Control Act, as amended (22 U.S.C.
2753(a)(1)), I hereby find that the furnishing of defense articles and
services to the Government of the Republic of Poland will strengthen the
security of the United States and promote world peace.
You are authorized and directed to transmit this determination to the
Congress and to publish it in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, December 6, 1991.
Memorandum of December 12, 1991
Delegation of Authority Under Section 1206(b) of the Omnibus Trade
and Competitiveness Act of 1988
Memorandum for the United States Trade Representative
By virtue of the authority vested in me by the Constitution and laws
of the United States, including section 301 of title 3 of the United
States Code and the Omnibus Trade and Competitiveness Act of 1988
(Public Law 100-418) (''the Act''), you are hereby delegated the
functions vested in me by section 1206(b) of the Act (19 U.S.C.
3006(b)), to submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate reports that
set forth proposed modifications to the Harmonized Tariff Schedule and
the reasons therefor.
The President shall retain the authority under section 1206 of the
Act to proclaim modifications to the Harmonized Tariff Schedule after
the layover period specified in section 1206(b) has expired.
You are authorized and directed to publish this memorandum in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, December 12, 1991.
Presidential Determination No. 92-9 of December 16, 1991
Migration and Refugee Assistance for Yugoslav Refugees
Memorandum for the Secretary of State
Pursuant to section 2(c)(1) of the Migration and Refugee Assistance
Act of 1962, as amended, 22 U.S.C. 2601(c)(1), I determine that it is
important to the national interest that up to $7,000,000 be made
available from the U.S. Emergency Refugee and Migration Assistance Fund
(the Fund) to meet unexpected urgent needs of refugees and other
displaced persons resulting from the civil conflict in Yugoslavia.
These funds may be used to provide U.S. contributions to the United
Nations High Commissioner for Refugees, the International Committee of
the Red Cross, other international organizations, governments and
governmental organizations, and private voluntary organizations, as
required.
You are authorized and directed to inform the appropriate committees
of the Congress of this determination and the obligation of funds under
this authority and to publish this memorandum in the Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, December 16, 1991.
Notice of December 26, 1991
Continuation of Libyan Emergency
On January 7, 1986, by Executive Order No. 12543, President Reagan
declared a national emergency to deal with the unusual and extraordinary
threat to the national security and foreign policy of the United States
constituted by the actions and policies of the Government of Libya. On
January 8, 1986, by Executive Order No. 12544, the President took
additional measures to block Libyan assets in the United States. The
President has transmitted a notice continuing this emergency to the
Congress and the Federal Register every year since 1986. Because the
Government of Libya has continued its actions and policies in support of
international terrorism as evidenced by its involvement in the
destruction of Pan Am Flight 103, the national emergency declared on
January 7, 1986, and the measures adopted on January 7 and January 8,
1986, to deal with that emergency, must continue in effect beyond
January 7, 1992. Therefore, in accordance with section 202(d) of the
National Emergencies Act (50 U.S.C. 1622(d)), I am continuing the
national emergency with respect to Libya. This notice shall be
published in the Federal Register and transmitted to the Congress.
GEORGE BUSH
THE WHITE HOUSE,
Washington, December 26, 1991.
Editorial note: For the President's letter to Congress reporting on
the economic sanctions against Libya, see the Weekly Compilation of
Presidential Documents (vol. 27, p. 920). For his letter on the
continuation of the emergency, see p. 1891. For the joint declaration
on the indictment of two Libyans suspected of bombing Pan Am flight 103,
see p. 1735.
Memorandum of December 27, 1991
Delegation of Authority With Respect to Certification and Reporting
Obligations Regarding Middle East Arms Control
Memorandum for the Secretary of State
By the authority vested in me as President by the Constitution and
laws of the United States, including section 301 of title 3 of the
United States Code, I hereby direct you to undertake on my behalf the
certification and reporting obligations under sections 403 and 404 of
the Foreign Relations Authorization Act, Fiscal Years 1992 and 1993
(Public Law 102-138). I further direct that you consult with the
Secretary of Defense and the heads of other executive departments and
agencies as appropriate in the discharge of these obligations.
You are authorized and directed to publish this memorandum in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, December 27, 1991.
Presidential Determination No. 92-10 of December 30, 1991
Determination Pursuant to Section 545 of the Foreign Operations,
Export Financing, and Related Programs Appropriations Act, 1991, and
Applicable Continuing Resolutions
Memorandum for the Secretary of State
Pursuant to Section 545 of the Foreign Operations, Export Financing,
and Related Programs Appropriations Act, 1991 (Public Law 101-513), made
applicable to FY 1992 by the terms of the Further Continuing
Appropriations, Fiscal Year 1992 (Public Law 102-145), I hereby certify
that withholding funds to multilateral development banks and other
international organizations and programs during FY 1992, pursuant to the
limitation contained therein prohibiting the obligation of funds
appropriated by that Act to finance indirectly any assistance or
reparations to certain specified countries, is contrary to the national
interest.
You are authorized and directed to publish this determination in the
Federal Register.
GEORGE BUSH
THE WHITE HOUSE,
Washington, December 30, 1991.
56 FR
Date of Message Page
January 9, 1991 1704
February 28, 1991 10082
April 16, 19910 18644
June 28, 1991 31516
July 24, 1991 36716
September 30, 1991 50620
December 19, 1991 67402
03 CFR -- EO 12787 Title 3 -- The President
03 CFR -- EO 12787 Chapter I
03 CFR -- EO 12787 Chapter I -- Executive Office of the President
Part
100 Standards of conduct.
101 Public information provisions of the Administrative Procedures
Act.
102 Enforcement of nondiscrimination on the basis of handicap in
programs or activities conducted by the Executive Office of the
President
03 CFR -- EO 12787 PART 100 -- STANDARDS OF CONDUCT
Sec.
100.735-1 Purpose and scope.
100.735-2 Definitions.
100.735-3 Special Government employees.
100.735-4 General standards of conduct.
100.735-5 Responsibilities of employees.
100.735-6 Interpretation and advisory service; counseling.
100.735-7 Disciplinary action.
100.735-8 Conflicts of interest.
100.735-9 Disqualification because of private financial interests.
100.735-10 Additional prohibitions -- regular employees.
100.735-11 Additional prohibitions -- special Government employees.
100.735-12 Exemptions and exceptions from prohibitions of conflict of
interest statutes.
100.735-13 Salary of employee payable only by United States.
100.735-14 Gifts, entertainment, and favors.
100.735-15 Outside employment and other activity.
100.735-16 Financial interests.
100.735-17 Use of Government property.
100.735-18 Misuse of information.
100.735-19 Indebtedness.
100.735-20 Gambling, betting, and lotteries.
100.735-21 General conduct prejudicial to the Government.
100.735-22 Miscellaneous statutory provisions.
100.735-23 Conduct and responsibilities of special Government
employees.
100.735-24 Reporting of employment and financial interests -- regular
employees.
100.735-25 Reporting of employment and financial interests -- special
Government employees.
100.735-26 Reviewing statements of financial interests.
100.735-27 Supplemental regulations or instructions.
President
100.735-31 Members of part-time committees, boards, and commissions.
100.735-32 Special delegation of authority to the Counsel to the
President.
Authority: The provisions of this Part 100 issued under Executive
Order 12731 of October 17, 1990, 55 FR 42547, 3 CFR, 1991 Comp.
Source: The provisions of this Part 100 appear at 33 FR 3608, Feb.
29, 1968, unless otherwise noted.
03 CFR -- EO 12787 Subpart A -- General Standards
03 CFR -- 100.735-1 Purpose and scope.
(a) The maintenance of the highest standards of honesty, integrity,
impartiality, and conduct by regular employees and special Government
employees is essential to assure the proper performance of Government
business and the maintenance of confidence by citizens in their
Government. The avoidance of misconduct and conflicts of interest on
the part of regular employees and special Government employees through
informed judgment is indispensable to the maintenance of these
standards.
(b) This part is intended to foster the foregoing concepts. It is
issued in compliance with the requirements of Executive Order No. 11222
of May 8, 1965, and is based upon the provisions of that order, the
regulations of the Civil Service Commission issued thereunder (Part 735
of 5 CFR Ch. I), and the statutes cited elsewhere in this part.
(c) This part, among other things reflects prohibitions and
requirements imposed by the criminal and civil laws of the United
States. However, the paraphrased restatements of criminal and civil
statutes contained in this part are designed for informational purposes
only and in no way constitute an interpretation or construction thereof
that is binding upon the Federal Government. Moreover, this part does
not purport to paraphrase or enumerate all restrictions or requirements
imposed by statutes, Executive Orders, regulations or otherwise upon
Federal employees and former Federal employees. The omission of a
reference to any such restriction or requirement in no way alters the
legal effect of that restriction or requirement and any such restriction
or requirement, as the case may be, continues to be applicable to
employees and former employees in accordance with its own terms.
Furthermore, attorneys employed by an agency are subject to the canons
of professional ethics of the American Bar Association.
03 CFR -- 100.735-2 Definitions.
In this subpart:
(a) ''Agency'' means the following agencies in the Executive Office
of the President: The White House Office, the Council of Economic
Advisers, the National Security Council, the National Aeronautics and
Space Council, the Office of Science and Technology, and the Office of
the Special Representative for Trade Negotiations, and any committee,
board, commission, or similar group established in the Executive Office
of the President.
(b) ''Agency head'' means the President for the White House Office,
the Chairman of the Council of Economic Advisers for the Council of
Economic Advisers, the Executive Secretary of the National Security
Council for the National Security Council, the Executive Secretary of
the National Aeronautics and Space Council for the National Aeronautics
and Space Council, the Director of the Office of Science and Technology
for the Office of Science and Technology, and the Special Representative
for Trade Negotiations for the Office of the Special Representative for
Trade Negotiations, and the Chairman or comparable member of any
committee, board, commission, or similar group established by the
President.
(c) ''Employee'' or ''regular employee'' means an officer or employee
of an agency but does not include a special Government employee.
(d) ''Special Government employee'' means an officer or employee of
an agency who is retained, designated, appointed, or employed to
perform, with or without compensation, for not to exceed 130 days during
any period of 365 consecutive days, temporary duties, either on a
full-time or intermittent basis.
(e) The term ''person'' means an individual, a corporation, a
company, an association, a firm, a partnership, a society, a joint stock
company, or any other organization or institution.
03 CFR -- 100.735-3 Special Government employees.
Except where specifically provided otherwise, or where limited in
terms or by the context to regular employees, all provisions of this
subpart relating to employees are applicable also to special Government
employees.
03 CFR -- 100.735-4 General standards of conduct.
(a) All employees shall conduct themselves on the job in such a
manner that the work of their agency is efficiently accomplished and
courtesy, consideration, and promptness are observed in dealings with
the Congress, the public, and other governmental agencies.
(b) All employees shall conduct themselves off the job in such a
manner as not to reflect adversely upon their agency or the Federal
service.
(c) In all circumstances employees shall conduct themselves so as to
exemplify the highest standards of integrity. An employee shall avoid
any action, whether or not specifically prohibited by this subpart,
which might result in, or create the appearance of:
(1) Using public office for private gain;
(2) Giving preferential treatment to any person;
(3) Impeding Government efficiency or economy;
(4) Losing complete independence or impartiality;
(5) Making a Government decision outside official channels; or
(6) Affecting adversely the confidence of the public in the integrity
of the Government.
03 CFR -- 100.735-5 Responsibilities of employees.
(a) The Executive Clerk for the White House Office and the Counselor
for each other agency shall distribute copies of this subpart to each
employee and special Government employee within 30 days after the
effective date thereof. In the case of a new employee or special
Government employee entering on duty after the date of such
distribution, a copy shall be furnished at the time of his entrance on
duty. All employees and special Government employees shall familiarize
themselves with the contents of this subpart.
(b) Copies of Executive Order 11222, regulations, and statutes
referred to in 100.735-1, together with various explanatory materials
are available for inspection in the Office of the Executive Clerk for
the White House Office and the Counselor for each other agency at any
time during regular business hours. Employees are encouraged to consult
these basic materials in any case of doubt as to the proper application
or interpretation of the provisions of this subpart.
(c) Attention of all employees is directed to House Concurrent
Resolution 175, 85th Congress, 2d session, 72 Stat. B12, the ''Code of
Ethics for Government Service'', which is attached to this subpart as
Appendix A.
03 CFR -- 100.735-6 Interpretation and advisory service; counseling.
(a) The agency head shall appoint a Counselor for the agency who
shall serve also as the agency's designee to the Civil Service
Commission on matters covered by this part. Communications between the
Counselor and employee shall be confidential, except as otherwise
determined by the agency head.
(b) The Counselor for the agency shall notify all employees and
special Government employees of the availability of counseling services,
and of how and where such services are available. Such notification
shall be made within 90 days after the effective date of this subpart
and periodically thereafter. In the case of a new employee or special
Government employee appointed after the date of such notification,
notification shall be given at the time of his entrance on duty.
03 CFR -- 100.735-7 Disciplinary action.
(a) A violation of any provision of this subpart by an employee may
be cause for appropriate disciplinary action which may be in addition to
any penalties prescribed by law. (As to remedial action in cases where
an employee's financial interests result in a conflict or apparent
conflict of interest, see 100.735-26.)
(b) Any disciplinary or remedial action taken pursuant to this
subpart shall be effected in accordance with any applicable laws,
Executive orders, and regulations.
03 CFR -- 100.735-8 Conflicts of interest.
(a) A conflict of interest may exist whenever an employee has a
substantial personal or private interest in a matter which involves his
duties and responsibilities as an employee. The maintenance of public
confidence in Government clearly demands that an employee take no action
which would constitute the use of his official position to advance his
personal or private interest. It is equally important that each
employee avoid becoming involved in situations which present the
possibility, or even the appearance, that his official position might be
used to his private advantage.
(b) Neither the pertinent statutes nor the standards of conduct
prescribed in this subpart are to be regarded as entirely comprehensive.
Each employee must, in each instance involving a personal or private
interest in a matter which also involves his duties and responsibilities
as an employee, make certain that his actions do not have the effect or
the appearance of the use of his official position for the furtherance
of his own interests or those of his family or his business associates.
(c) The principal statutory provisions relating to bribery, graft,
and conflicts of interest are contained in Chapter 11 of the Criminal
Code, 18 U.S.C. 201-224. Severe penalties are provided for violations,
including variously fine, imprisonment, dismissal from office, and
disqualification from holding any office of honor, trust, or profit
under the United States.
03 CFR -- 100.735-9 Disqualification because of private financial
interests.
(a) Unless authorized to do so as provided hereafter in this section,
no employee shall participate personally and substantially as a
Government employee in a particular matter in which to his knowledge he
has a financial interest (18 U.S.C. 208).
(1) For the purposes of this section --
(i) An employee participates personally and substantially in a
particular matter through decision, approval, disapproval,
recommendation, the rendering of advice, investigation, or otherwise;
(ii) A particular matter is a judicial or other proceeding,
application, request for ruling or other determination, contract, claim,
controversy, charge, accusation, arrest, or other particular matter;
and
(iii) A financial interest is the interest of the employee himself or
his spouse, minor child, partner, organization in which he is serving as
officer, director, trustee, partner, or employee, or any person or
organization with whom he is negotiating or has any arrangement
concerning prospective employment.
(b) An employee who has a financial interest (other than a financial
interest exempted under paragraph (c) of this section) in a particular
matter which is within the scope of his official duties shall make a
full disclosure of that interest to the Counselor for the agency in
writing. He shall not participate in such matter unless and until he
receives a written determination by the agency head pursuant to section
208 of Title 18, United States Code, that the interest is not so
substantial as to be deemed likely to affect the integrity of the
services which the Government may expect of him. If the agency head
does not make such a determination he shall direct such remedial action
as may be appropriate under the provisions of 100.735-26.
(c) The financial interests described in this paragraph are hereby
exempted pursuant to the provisions of section 208 of Title 18, United
States Code, from the restrictions of paragraph (a) of this section and
of section 208 of Title 18 as being too remote or inconsequential to
affect the integrity of an employee's services in a matter.
(1) Stocks, bonds, policies, properties, or interests in a mutual
fund, investment company, trust, bank, or insurance company, as to which
the employee has no managerial control or directorship. In the case of
a mutual fund or investment company, this exemption applies only where
the assets of the fund or company are diversified; it does not apply
where the fund or company advertises that it specializes in a particular
industry or commodity.
(2) Interest in an investment club: Provided, That the fair value of
the interest involved does not exceed $5,000, and that the interest does
not exceed one-fourth of the total assets of the investment club.
03 CFR -- 100.735-10 Additional prohibitions -- regular employees.
(a) In addition to the disqualification described in 100.735-9, a
regular employee is subject to the following major prohibitions.
(1) He may not, except in the discharge of his official duties,
represent anyone else before a court or Government agency in a matter in
which the United States is a party or has an interest. This prohibition
applies both to paid and unpaid representation of another (18 U.S.C. 203
and 205).
(2) He may not, after his Government employment has ended, represent
anyone other than the United States in connection with a matter in which
the United States is a party or has an interest and in which he
participated personally and substantially for the Government (18 U.S.C.
207(a)).
(3) He may not, for 1 year after his Government employment has ended,
represent anyone other than the United States in connection with a
matter in which the United States is a party or has an interest and
which was within the boundaries of his official responsibility during
the last year of his Government service (18 U.S.C. 207(b)). (This
temporary restraint is permanent if the matter is one in which he
participated personally and substantially. See subparagraph (2) of this
paragraph.)
(4) He may not receive any salary, or supplementation of his
Government salary, from a private source as compensation for his
services to the Government (18 U.S.C. 209). (See 100.735-13.)
(b) Exemptions or exceptions from the prohibitions described in
paragraph (a) of this section are permitted under certain circumstances.
For the method of obtaining such exemptions or exceptions, see
paragraph (d) of 100.735-12.
03 CFR -- 100.735-11 Additional prohibitions -- special Government
employees.
(a) In addition to the disqualification described in 100.735-9, a
special Government employee is subject to the following major
prohibitions.
(1) He may not, except in the discharge of his official duties --
(i) Represent anyone else before a court or Government agency in a
matter in which the United States is a party or has an interest and in
which he has at any time participated personally and substantially for
the Government (18 U.S.C. 203 and 205), or
(ii) Represent anyone else in a matter pending before his agency
unless he served there no more than 60 days during the previous 365 (18
U.S.C. 203 and 205). He is bound by this restraint despite the fact
that the matter is not one in which he has ever participated personally
and substantially.
(2) He may not, after his Government employment has ended, represent
anyone other than the United States in connection with a matter in which
the United States is a party or has an interest and in which he
participated personally and substantially for the Government (18 U.S.C.
207(a)).
(3) He may not, for 1 year after his Government employment has ended,
represent anyone other than the United States in connection with a
matter in which the United States is a party or has an interest and
which was within the boundaries of his official responsibility during
the last year of his Government service (18 U.S.C. 207(b)). (This
temporary restraint is permanent if the matter is one in which he
participated personally and substantially. See subparagraph (2) of this
paragraph.)
(b) Exemptions or exceptions from the prohibitions described in
paragraph (a) of this section are permitted under certain circumstances;
for the method of obtaining such exemptions or exceptions, see
paragraph (d) of 100.735-12.
03 CFR -- 100.735-12 Exemptions and exceptions from prohibitions of
conflict of interest statutes.
(a) Nothing in this subpart shall be deemed to prohibit an employee,
if it is not otherwise inconsistent with the faithful performance of his
duties, from acting without compensation as agent or attorney for any
person in a disciplinary, loyalty, or other Federal personnel
administration proceeding involving such person.
(b) Nothing in this subpart shall be deemed to prohibit an employee
from acting, with or without compensation, as agent or attorney for his
parents, spouse, child, or any person for whom, or for any estate for
which, he is serving as guardian, executor, administrator, trustee or
other personal fiduciary, except in those matters in which he has
participated personally and substantially as a Government employee,
through decision, approval, disapproval, recommendation, the rendering
of advice, investigation, or otherwise, or which are the subject of his
official responsibility, as defined in section 202(b) of Title 18 of the
United States Code, provided that the agency head approves.
(c) Nothing in this subpart shall be deemed to prohibit an employee
from giving testimony under oath or from making statements required to
be made under penalty for perjury or contempt.
(d) In addition to the exemptions and exceptions described in this
section and in 100.735-9, the conflict of interest statutes permit
certain exemptions and exceptions in specific circumstances. The
procedure for effecting such exemptions or exceptions is as follows:
(1) Any regular employee or special Government employee who desires
approval or certification of his activities as provided for by section
205 of Title 18, United States Code, shall make application therefor in
writing to the Counselor for the agency.
(2) A former employee, including a former special Government
employee, who desires certification with regard to his activities under
section 207 of Title 18, United States Code, shall make application
therefor in writing to the Counselor for the agency.
(3) The Counselor for the agency shall report promptly to the agency
head all matters reported to him under this subpart which require
consideration of approvals, certifications, or determinations provided
for in sections 205, 207, or 208 of Title 18, United States Code.
03 CFR -- 100.735-13 Salary of employee payable only by United States.
(a) No employee, other than a special Government employee or an
employee serving without compensation, shall receive any salary, or any
contribution to or supplementation of salary, as compensation for his
services as an employee, from any source other than the Government of
the United States, except as may be contributed out of the treasury of
any State, county, or municipality (18 U.S.C. 209).
(b) Nothing in this subpart shall be deemed to prohibit an employee
from continuing to participate in a bona fide pension, retirement, group
life, health, or accident insurance, profit-sharing, stock bonus, or
other employee welfare or benefit plan maintained by a former employer
nor from accepting contributions, awards, or other expenses under
Chapter 41 of Title 5, United States Code (the former Government
Employees Training Act).
03 CFR -- 100.735-14 Gifts, entertainment, and favors.
(a) Except as provided in paragraph (b) of this section, an employee
shall not solicit or accept, directly or indirectly, any gift, gratuity,
favor, entertainment, loan, or any other thing of monetary value from a
person who:
(1) Has, or is seeking to obtain, contractual or other business or
financial relations with his agency;
(2) Conducts operations or activities which are regulated by his
agency; or
(3) Has interests which may be substantially affected by the
performance or nonperformance of his official duty.
(b) Notwithstanding paragraph (a) of this section, an employee may:
(1) Accept a gift, gratuity, favor, entertainment, loan or other
thing of monetary value from a friend, parent, spouse, child, or other
close relative when the circumstances make it clear that the family or
personal relationships involved are the motivating factors;
(2) Accept food or refreshments of nominal value on infrequent
occasions in the ordinary course of a luncheon or dinner meeting or
other meeting or on an inspection tour whom an employee may properly be
in attendance;
(3) Accept loans from banks or other financial institutions on
customary terms to finance proper or usual activities of employees, such
as home mortgage loans; and
(4) Accept unsolicited advertising or promotional materials such as
pens, pencils, note pads, calendars, or other items of nominal intrinsic
value.
(c) An employee shall not solicit contributions from another employee
for a gift to an employee in a superior official position. An employee
in a superior official position shall not accept a gift presented as a
contribution from employees receiving less salary than himself. An
employee shall not make a donation as a gift to an employee in a
superior official position (5 U.S.C. 7351). However, this paragraph does
not prohibit a voluntary gift of nominal value or donation in a nominal
amount made on a special occasion such as marriage, illness or
retirement.
(d) The Constitution (Art. 1, sec. 9, par. 8) prohibits acceptance
from foreign governments, except with the consent of Congress, of any
emolument, office, or title. The Congress has provided for the receipt
and disposition of foreign gifts and decorations in 5 U.S.C. 7342. See
also Executive Order 11320, 31 FR 15789, and the regulations pursuant
thereto in 22 CFR Part 3 (as added, 32 FR 6569). Any such gift or thing
which cannot appropriately be refused shall be submitted to the
Counselor for transmittal to the State Department.
03 CFR -- 100.735-15 Outside employment and other activity.
(a) An employee shall not engage in outside employment or other
outside activity not compatible with the full and proper discharge of
the duties and responsibilities of his Government employment.
Incompatible activities include, but are not limited to:
(1) Acceptance of a fee, compensation, gift, payment of expense, or
any other thing of monetary value in circumstances in which acceptance
may result in, or create the appearance of, a conflict of interest; or
(2) Outside employment which tends to impair the employee's mental or
physical capacity to perform his Government duties and responsibilities
in an acceptable manner.
(b) Within the limitations imposed by this section, employees are
encouraged to engage in teaching, lecturing, and writing. However, an
employee shall not, either for or without compensation, engage in
teaching, lecturing, or writing that is dependent on information
obtained as a result of his Government employment, except when that
information has been made available to the general public or will be
made available on request, or when the agency head gives written
authorization for the use of non-public information on the basis that
the use is in the public interest. In addition, an employee who is a
Presidential appointee covered by section 401(a) of Executive Order No.
11222 of May 8, 1965, shall not receive compensation or anything of
monetary value for any consultation, lecture, discussion, writing, or
appearance the subject matter of which is devoted substantially to the
responsibilities, programs, or operations of his agency, or which draws
substantially on official data or ideas which have not become part of
the body of public information.
(c) An employee shall not engage in outside employment under a State
or local government, except in accordance with applicable regulations of
the Civil Service Commission (Part 734 of 5 CFR Ch. I).
(d) Neither this section nor 100.735-14 precludes an employee from:
(1) Receipt of bona fide reimbursement, unless prohibited by law, for
actual expenses for travel and such other necessary subsistence as is
compatible with this subpart and for which no Government payment or
reimbursement is made. However, an employee may not be reimbursed, and
payment may not be made on his behalf, for excessive personal living
expenses, gifts, entertainment, or other personal benefits, nor does it
allow an employee to be reimbursed by a person for travel on official
business under agency orders when reimbursement is proscribed by
Decision B-128527 of the Comptroller General dated March 7, 1967.
(2) Participation in the activities of national or State political
parties not proscribed by law. (See paragraph (o) of 100.735-22
regarding proscribed political activities.)
(3) Participation in the affairs of, or acceptance of an award for a
meritorious public contribution or achievement given by, a charitable,
religious, professional, social, fraternal, nonprofit educational or
recreational, public service, or civic organization.
(e) An employee who intends to engage in outside employment shall
obtain the approval, through his official superior, of his agency head.
A record of each approval under this paragraph shall be filed in the
employee's official personnel folder.
(f) This section does not apply to special Government employees, who
are subject to the provisions of 100.735-23.
03 CFR -- 100.735-16 Financial interests.
(a) An employee may not have financial interests which --
(1) Establish a substantial personal or private interest in a matter
which involves his duties and responsibilities as an employee (an
employee may not have financial interests, except as permitted by
100.735-9(c) or authorized pursuant to 100.735-12(d); or
(2) Are entered into in reliance upon, or as a result of, information
obtained through his employment; or
(3) Result from active and continuous trading (as distinguished from
the making of bona fide investments) which is conducted on such a scale
as to interfere with the proper performance of his duties.
(b) Aside from the restrictions prescribed or cited in this subpart,
employees are free to engage in lawful financial transactions to the
same extent as private citizens. Employees should be aware that the
financial interests of their wives of minor children and blood relatives
who are full-time residents of their households may be regarded, for the
purposes of this section, as financial interests of the employees
themselves.
(c) This section does not apply to special Government employees, who
are subject to the provisions of 100.735-23.
03 CFR -- 100.735-17 Use of Government property.
An employee shall not directly or indirectly use, or allow the use
of, Government property of any kind, including property leased to the
Government, for other than officially approved activities. An employee
has a positive duty to protect and conserve Government property
including equipment, supplies, and other property entrusted or issued to
him.
03 CFR -- 100.735-18 Misuse of information.
For the purpose of furthering a private interest, an employee shall
not, except as provided in paragraph (b) of 100.735-15, directly or
indirectly use, or allow the use of, official information obtained
through or in connection with his Government employment which has not
been made available to the general public.
03 CFR -- 100.735-19 Indebtedness.
An employee shall pay each just financial obligation in a proper and
timely manner, especially one imposed by law such as Federal, State, or
local taxes. For the purpose of this section, a ''just financial
obligation'' means one acknowledged by the employee, or reduced to
judgment by a court, and ''in a proper and timely manner'' means in a
manner which his agency determines does not, under the circumstances,
reflect adversely on the Government as his employer. In the event of
dispute between an employee and an alleged creditor, this section does
not require an agency to determine the validity or amount of the
disputed debt.
03 CFR -- 100.735-20 Gambling, betting, and lotteries.
An employee shall not participate, while on Government-owned or
leased property or while on duty for the Government, in any gambling
activity, including the operation of a gambling device, in conducting a
lottery or pool, in a game for money or property, or in selling or
purchasing a numbers slip or ticket.
03 CFR -- 100.735-21 General conduct prejudicial to the Government.
An employee shall not engage in criminal, infamous, dishonest,
immoral, or notoriously disgraceful conduct, or other conduct
prejudicial to the Government.
03 CFR -- 100.735-22 Miscellaneous statutory provisions.
Each employee shall acquaint himself with each statute that relates
to his ethical and other conduct as an employee of his agency and of the
Government. In particular, attention of employees is directed to the
following statutory provisions:
(a) Chapter 11 of Title 18, United States Code, relating to bribery,
graft, and conflicts of interest, as appropriate to the employees
concerned (see 100.735-9, 100.735-10, and 100.735-11).
(b) The prohibition against lobbying with appropriated funds (18
U.S.C. 1913).
(c) The prohibitions against disloyalty and striking (5 U.S.C. 7311,
18 U.S.C. 1918).
(d) The prohibition against the employment of a member of a Communist
organization (50 U.S.C. 784).
(e) The prohibitions against (1) the disclosure of classified
information (18 U.S.C. 798, 50 U.S.C. 783) and (2) the disclosure of
confidential information (18 U.S.C. 1905).
(f) The provision relating to the habitual use of intoxicants to
excess (5 U.S.C. 7352).
(g) The prohibition against the misuse of a Government vehicle (31
U.S.C. 638a(c)).
(h) The prohibition against the misuse of the franking privilege (18
U.S.C. 1719).
(i) The prohibition against the use of deceit in an examination or
personnel action in connection with Government employment (5 U.S.C.
1917).
(j) The prohibition against fraud or false statements in a Government
matter (18 U.S.C. 1001).
(k) The prohibition against mutilating or destroying a public record
(18 U.S.C. 2071).
(l) The prohibition against counterfeiting and forging transportation
requests (18 U.S.C. 508).
(m) The prohibitions against (1) embezzlement of Government money or
property (18 U.S.C. 641); (2) failing to account for public money (18
U.S.C. 643); and (3) embezzlement of the money or property of another
person in the possession of an employee by reason of his employment (18
U.S.C. 654).
(n) The prohibition against unauthorized use of documents relating to
claims from or by the Government (18 U.S.C. 285).
(o) The prohibition against political activities in subchapter III of
chapter 73 of title 5, United States Code and 18 U.S.C. 602, 603, 607,
and 608.
(p) The prohibition against an employee acting as the agent of a
foreign principal registered under the Foreign Agents Registration Act
(18 U.S.C. 219).
03 CFR -- 100.735-23 Conduct and responsibilities of special Government
employees.
(a) A special Government employee shall not use his Government
employment for a purpose that is, or gives the appearance of being,
motivated by the desire for private gain for himself or another person,
particularly one with whom he has family, business, or financial ties.
(b) A special Government employee shall not use inside information
obtained as a result of his Government employment for private gain for
himself or another person whether by direct action on his part or by
counsel, recommendation, or suggestion to another person, particularly
one with whom he has family, business, or financial ties. For the
purposes of this section, ''inside information'' means information
obtained under Government authority which has not become part of the
body of public information.
(c) A special Government employee who engages in teaching, lecturing,
or writing, whether for or without compensation, shall not for such
purposes make use of information obtained as a result of his Government
employment, except when that information has been made available to the
general public or will be made available on request, or when the agency
head gives written authorization for the use of nonpublic information on
the basis that such use is in the public interest.
(d) A special Government employee shall not use his Government
employment to coerce, or give the appearance of coercing, a person to
provide financial benefit to himself or another person, particularly one
with whom he has family, business, or financial ties.
(e) Except as provided in paragraph (f) of this section, a special
Government employee, while so employed or in connection with his
employment, shall not receive or solicit from a person having business
with his agency anything of value as a gift, gratuity, loan,
entertainment, or favor for himself or another person, particularly one
with whom he has family, business, or financial ties.
(f) Notwithstanding paragraph (e) of this section a special
Government employee shall be allowed the same latitude as is authorized
for regular Government employees by paragraph (b) of 100.735-14.
(g) Attention of special Government employees is directed to the
provisions of 100.735-3, making the provisions of this subpart
generally applicable to their activities.
03 CFR -- 100.735-24 Reporting of employment and financial interests --
regular employees.
(a) Not later than 90 days after the effective date of this subpart,
an employee designated in paragraph (d) of this section shall submit to
his agency head a statement, on a form made available in the office of
the Executive Clerk for the White House Office and the Counselor for
each other agency, setting forth the following information:
(1) A list of the names of all corporations, companies, firms, or
other business enterprises, partnerships, nonprofit organizations, and
educational or other institutions with or in which he, his spouse, minor
child or other member of his immediate household has --
(i) Any connection as an employee, officer, owner, director, member,
trustee, partner, adviser or consultant; or
(ii) Any continuing financial interest, through a pension or
retirement plan, shared income, or other arrangement as a result of any
current or prior employment or business or professional association; or
(iii) Any financial interest through the ownership of stock, stock
options, bonds, securities, or other arrangements including trusts.
However, an employee need not report any financial interest exempted
under 100.735-9(c) as too remote or inconsequential to affect the
integrity of an employee's services in a matter.
(2) A list of the names of his creditors and the creditors of his
spouse, minor child or other member of his immediate household, other
than those creditors to whom they may be indebted by reason of a
mortgage on property which he occupies as a personal residence or to
whom they may be indebted for current and ordinary household and living
expenses such as those incurred for household furnishings, an
automobile, education, vacations, or the like.
(3) A list of his interests and those of his spouse, minor child or
other member of his immediate household in real property or rights in
lands, other than property which he occupies as a personal residence.
(b) For the purpose of this section ''member of his immediate
household'' means a full-time resident of the employee's household who
is related to him by blood.
(c) Each employee designated in paragraph (d) of this section who
enters on duty after the effective date of this subpart shall submit
such statement not later than 30 days after the date of his entrance on
duty, but not earlier than 90 days after the effective date of this
subpart.
(d) Statements of employment and financial interests are required of
the following:
(1) Employees paid at a level of the Executive Schedule in subchapter
II of chapter 53 of title 5, United States Code, except a Presidential
appointee required to file a statement of financial interests under
section 401 of Executive Order No. 11222 of May 8, 1965.
(2) Employees in classified positions of grade GS-13 or above, or the
equivalent thereof.
(e) Changes in, or additions to, the information contained in an
employee's statement of employment and financial interests shall be
reported in a supplementary statement as of June 30 each year. If no
changes or additions occur, a negative report is required.
Notwithstanding the filing of the annual report required by this
paragraph, each employee shall at all times avoid acquiring a financial
interest that could result, or taking an action that would result, in a
violation of the conflicts-of-interest provisions of 18 U.S.C. 208 or
this subpart.
(f) If any information required to be included on a statement of
employment and financial interests or supplementary statement, including
holdings placed in trust, is not known to the employee but is known to
another person, the employee shall request that other person to submit
the information in his behalf.
(g) Paragraph (a) of this section does not require an employee to
submit any information relating to his connection with, or interest in,
a professional society or a charitable, religious, social, fraternal,
recreational, public service, civic, or political organization or a
similar organization not conducted as a business enterprise. For the
purpose of this section, educational and other institutions doing
research and development or related work involving grants of money from
or contracts with the Government are deemed ''business enterprises'' and
are required to be included in an employee's statement of employment and
financial interests.
(h) Each agency shall hold each statement of employment and financial
interests in confidence. Each person designated to review a statement
of employment and financial interests under section 100.735-26 is
responsible for maintaining the statement in confidence and shall not
allow access to, or allow information to be disclosed from, a statement
except to carry out the purpose of this subpart. An agency may not
disclose information from a statement except as the Civil Service
Commission or the agency head may determine for good cause shown.
(i) The statements of employment and financial interests and
supplementary statements required of employees are in addition to, and
not in substitution for, or in derogation of, any similar requirement
imposed by law, order, or regulation. The submission of a statement by
an employee does not permit him or any other person to participate in a
matter in which his or the other person's participation is prohibited by
law, order, or regulation.
(j) An employee who believes that his position has been improperly
included as one requiring the submission of a statement of employment
and financial interests is entitled to obtain a review of his complaint
under his agency's grievance procedure.
(k) This section does not apply to special Government employees, who
are subject to the provisions of 100.735-25.
03 CFR -- 100.735-25 Reporting of employment and financial interests --
special Government employees.
(a) A special Government employee shall submit to the agency head a
statement of employment and financial interests which reports (1) all
current Federal Government employment, (2) the names of all
corporations, companies, firms, State of local governmental
organizations, research organizations, and educational or other
institutions in or for which he is an employee, officer, member, owner,
trustee, director, adviser, or consultant, with or without compensation,
(3) those financial interests which the agency determines are relevant
in the light of the duties he is to perform, and (4) the names of all
partnerships in which he is engaged.
(b) A statement required under this section shall be submitted at the
time of employment and shall be kept current throughout the term of a
special Government employee's service with an agency. A supplementary
statement shall be submitted at the time of any reappointment; a
negative report will suffice if no changes have occurred since the
submission of the last statement.
03 CFR -- 100.735-26 Reviewing statements of financial interests.
(a) A designee of the agency head shall review the statements
required by 100.735-24 and 100.735-25 to determine whether there
exists a conflict, or appearance of conflict, between the interests of
the employee or special Government employee concerned and the
performance of his service for the Government. If the designee
determines that such a conflict or appearance of conflict exists, he
shall provide the employee with an opportunity to explain the conflict
or appearance of conflict. If he concludes that remedial action should
be taken, he shall refer the statement to the agency head through the
Counselor for the agency designated pursuant to 100.735-6, with his
recommendation for such action. The agency head, after consideration of
the employee's explanation and such investigation as he deems
appropriate shall direct appropriate remedial action if he deems it
necessary.
(b) Remedial action pursuant to paragraph (a) of this section may
include, but is not limited to:
(1) Changes in assigned duties.
(2) Divestment by the employee of his conflicting interest.
(3) Disqualification for a particular action.
(4) Exemption pursuant to paragraph (b) of 100.735-9 or paragraph
(d) of 100.735-12.
(5) Disciplinary action.
03 CFR -- 100.735-27 Supplemental regulations or instructions.
An agency head may issue supplemental and implementing regulations or
instructions not inconsistent with this subpart as necessary to carry
out the full purpose and intent of Executive Order 11222 and this
subpart as may be required by the particular circumstances of his
agency. Such regulations or instructions may include but are not
limited to, delegations of any authority allowed by law pertaining to
the functions placed upon the agency head by this subpart. Such
regulations or instructions must be made available to employees and
special Government employees in the same manner as this subpart (see
100.735-5).
03 CFR -- 100.735-27 Subpart B -- Special Procedures; Counsel to the President
03 CFR -- 100.735-31 Members of part-time committees, boards, and
commissions.
(a) This section applies to each part-time member of a committee,
board, or commission appointed by the President (referred to in this
section as a Member).
(b) When the Counsel to the President determines that the functions
and responsibilities of a committee, board, or commission are such that
consistent with the policy and purpose of Executive Order 11222 the
Members thereof should submit statements of employment and financial
interests, he shall request each Member thereof to submit such a
statement to the Chairman of the Civil Service Commission.
(c) A statement of employment and financial interests required under
this section shall be submitted not later than 30 days after the
Member's receipt of the request therefor from the Counsel to the
President, and shall be kept up to date by submission of amended
statements of any changes in, or additions to, the information required
to be included in the original statement, on a quarterly basis. The
statement shall be submitted in the format prescribed by the Chairman of
the Civil Service Commission.
(d) The Chairman of the Civil Service Commission shall review each
statement of employment and financial interests and any amendment
thereto submitted under this section and shall report to the Counsel to
the President any information contained in a statement which may
indicate a conflict between the financial interests of the Member
concerned and the performance of his services for the Government.
03 CFR -- 100.735-32 Special delegation of authority to the Counsel to
the President.
The authority of the President under sections 205 and 208(b) of Title
18, United States Code, to permit certain actions by an officer or
employee of the Government, including a special Government employee, for
appointment to whose position the President is responsible, reserved to
the President by section 505(c) of Executive Order 11222, is delegated
to the Counsel to the President.
03 CFR -- 100.735-32 PART 101 -- PUBLIC INFORMATION PROVISIONS OF THE
ADMINISTRATIVE PROCEDURES ACT
Sec.
101.1 Executive Office of the President.
101.2 Office of Management and Budget.
101.3 Office of Administration.
101.4 National Security Council.
101.5 Council on Environmental Quality.
101.6 Office of National Drug Control Policy.
101.7 Office of Science and Technology Policy.
101.8 Office of the United States Trade Representative.
Authority: 5 U.S.C. 552.
Source: The provisions of this Part 101 appear at 40 FR 8061, Feb.
25, 1975, unless otherwise noted.
03 CFR -- 101.1 Executive Office of the President.
Until further regulations are promulgated, the remainder of the
entities within the Executive Office of the President, to the extent
that 5 U.S.C. 552 is applicable, shall follow the procedures set forth
in the regulations applicable to the Office of Management and Budget (5
CFR Ch. III). Requests for information from these other entities should
be submitted directly to such entity.
03 CFR -- 101.2 Office of Management and Budget.
Freedom of Information regulations for the Office of Management and
Budget appear at 5 CFR Ch. III.
03 CFR -- 101.3 Office of Administration.
Freedom of Information regulations for the Office of Administration
appear at 5 CFR part 2502.
(55 FR 46037, Nov. 1, 1990)
03 CFR -- 101.4 National Security Council.
Freedom of Information regulations for the National Security Council
appear at 32 CFR Ch. XXI.
03 CFR -- 101.5 Council on Environmental Quality.
Freedom of Information regulations for the Council on Environmental
Quality appear at 40 CFR Ch. V.
(42 FR 65131, Dec. 30, 1977)
03 CFR -- 101.6 Office of National Drug Control Policy.
Freedom of Information regulations for the Office of National Drug
Control Policy appear at 21 CFR parts 1400-1499.
(55 FR 46037, Nov. 1, 1990)
03 CFR -- 101.7 Office of Science and Technology Policy.
Freedom of Information regulations for the Office of Science and
Technology Policy appear at 32 CFR part 2402.
(55 FR 46037, Nov. 1, 1990)
03 CFR -- 101.8 Office of the United States Trade Representative.
Freedom of Information regulations for the Office of the United
States Trade Representative appear at 15 CFR part 2004.
(55 FR 46037, Nov. 1, 1990)
03 CFR -- 101.8 PART 102 -- ENFORCEMENT OF NONDISCRIMINATION ON THE
BASIS OF HANDICAP IN PROGRAMS OR ACTIVITIES CONDUCTED BY THE EXECUTIVE
OFFICE OF THE PRESIDENT
Sec.
102.101 Purpose.
102.102 Application.
102.103 Definitions.
102.104-102.109 (Reserved)
102.110 Self-evaluation.
102.111 Notice.
102.112-102.129 (Reserved)
102.130 General prohibitions against discrimination.
102.131-102.139 (Reserved)
102.140 Employment.
102.141-102.148 (Reserved)
102.149 Program accessibility: Discrimination prohibited.
102.150 Program accessibility: Existing facilities.
102.151 Program accessibility: New construction and alterations.
102.152-102.159 (Reserved)
102.160 Communications.
102.161-102.169 (Reserved)
102.170 Compliance procedures.
102.171-102.999 (Reserved)
Authority: 29 U.S.C. 794.
Source: The provisions of this part 102 appear at 53 FR 25879, July
8, 1988, and 55 FR 46037, November 1, 1990, unless otherwise noted.
03 CFR -- 102.101 Purpose.
The purpose of this regulation is to effectuate section 119 of the
Rehabilitation, Comprehensive Services, and Developmental Disabilities
Amendments of 1978, which amended section 504 of the Rehabilitation Act
of 1973 to prohibit discrimination on the basis of handicap in programs
or activities conducted by Executive agencies or the United States
Postal Service.
03 CFR -- 102.102 Application.
This regulation ( 102.101-102.170) applies to all programs or
activities conducted by the agency, except for programs or activities
conducted outside the United States that do not involve individuals with
handicaps in the United States.
03 CFR -- 102.103 Definitions.
For purposes of this regulation, the term --
''Agency'' means, for purposes of this regulation only, the following
entities in the Executive Office of the President: the White House
Office, the Office of the Vice President, the Office of Management and
Budget, the Office of Policy Development, the National Security Council,
the Office of Science and Technology Policy, the Office of the United
States Trade Representative, the Council on Environmental Quality, the
Council of Economic Advisers, the Office of Administration, the Office
of Federal Procurement Policy, and any committee, board, commission, or
similar group established in the Executive Office of the President.
''Agency head'' or ''head of the agency''; as used in
102.150(a)(3), 102.160(d) and 102.170 (i) and (j), shall be a
three-member board which will include the Director, Office of
Administration, the head of the Executive Office of the President,
agency in which the issue needing resolution or decision arises and one
other agency head selected by the two other board members. In the event
that an issue needing resolution or decision arises within the Office of
Administration, one of the board members shall be the Director of the
Office of Management and Budget.
''Assistant Attorney General'' means the Assistant Attorney General,
Civil Rights Division, United States Department of Justice.
''Auxiliary aids'' means services or devices that enable persons with
impaired sensory, manual, or speaking skills to have an equal
opportunity to participate in, and enjoy the benefits of, programs or
activities conducted by the agency. For example, auxiliary aids useful
for persons with impaired vision include readers, Brailled materials,
audio recordings, and other similar services and devices. Auxiliary
aids useful for persons with impaired hearing include telephone handset
amplifiers, telephones compatible with hearing aids, telecommunication
devices for deaf persons (TDD's), interpreters, notetakers, written
materials, and other similar services and devices.
''Complete complaint'' means a written statement that contains the
complainant's name and address and describes the agency's alleged
discriminatory action in sufficient detail to inform the agency of the
nature and date of the alleged violation of section 504. It shall be
signed by the complainant or by someone authorized to do so on his or
her behalf. Complaints filed on behalf of classes or third parties
shall describe or identify (by name, if possible) the alleged victims of
discrimination.
''Facility'' means all or any portion of buildings, structures,
equipment, roads, walks, parking lots, rolling stock or other
conveyances, or other real or personal property.
''Historic preservation programs'' means programs conducted by the
agency that have preservation of historic properties as a primary
purpose.
''Historic properties'' means those properties that are listed or
eligible for listing in the National Register of Historic Places or
properties designated as historic under a statute of the appropriate
State or local government body.
''Individual with handicaps'' means any person who has a physical or
mental impairment that substantially limits one or more major life
activities, has a record of such an impairment, or is regarded as having
such an impairment.
As used in this definition, the phrase:
(1) ''Physical or mental impairment'' includes --
(i) Any physiological disorder or condition, cosmetic disfigurement,
or anatomical loss affecting one or more of the following body systems:
Neurological; musculoskeletal; special sense organs; respiratory,
including speech organs; cardiovascular; reproductive; digestive;
genitourinary; hemic and lymphatic; skin; and endocrine; or
(ii) Any mental or psychological disorder, such as mental
retardation, organic brain syndrome, emotional or mental illness, and
specific learning disabilities. The term ''physical or mental
impairment'' includes, but is not limited to, such diseases and
conditions as orthopedic, visual, speech, and hearing impairments,
cerebral palsy, epilepsy, muscular dystrophy, multiple sclerosis,
cancer, heart disease, diabetes, mental retardation, emotional illness,
and drug addiction and alcoholism.
(2) ''Major life activities'' includes functions such as caring for
one's self, performing manual tasks, walking, seeing, hearing, speaking,
breathing, learning, and working.
(3) ''Has a record of such an impairment'' means has a history of, or
has been misclassified as having, a mental or physical impairment that
substantially limits one or more major life activities.
(4) ''Is regarded as having an impairment'' means --
(i) Has a physical or mental impairment that does not substantially
limit major life activities but is treated by the agency as constituting
such a limitation;
(ii) Has a physical or mental impairment that substantially limits
major life activities only as a result of the attitudes of others toward
such impairment; or
(iii) Has none of the impairments defined in paragraph (1) of this
definition but is treated by the agency as having such an impairment.
''Qualified individual with handicaps'' means --
(1) With respect to preschool, elementary, or secondary education
services provided by the agency, an individual with handicaps who is a
member of a class of persons otherwise entitled by statute, regulation,
or agency policy to receive education services from the agency;
(2) With respect to any other agency program or activity under which
a person is required to perform services or to achieve a level of
accomplishment, an individual with handicaps who meets the essential
eligibility requirements and who can achieve the purpose of the program
or activity without modifications in the program or activity that the
agency can demonstrate would result in a fundamental alteration in its
nature;
(3) With respect to any other program or activity, an individual with
handicaps who meets the essential eligibility requirements for
participation in, or receipt of benefits from, that program or activity;
and
(4) ''Qualified handicapped person'' as that term is defined for
purposes of employment in 29 CFR 1613.702(f), which is made applicable
to this regulation by 102.140.
''Section 504'' means section 504 of the Rehabilitation Act of 1973
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended by the
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516, 88 Stat. 1617);
the Rehabilitation, Comprehensive Services, and Developmental
Disabilities Amendments of 1978 (Pub. L. 95-602, 92 Stat. 2955); and
the Rehabilitation Act Amendments of 1986 (Pub. L. 99-506, 100 Stat.
1810). As used in this regulation, section 504 applies only to programs
or activities conducted by Executive agencies and not to federally
assisted programs.
''Substantial impairment'' means a significant loss of the integrity
of finished materials, design quality, or special character resulting
from a permanent alteration.
03 CFR -- 102.104 -- 102.109 (Reserved)
03 CFR -- 102.110 Self-evaluation.
(a) The agency shall, by September 6, 1989, evaluate its current
policies and practices, and the effects thereof, that do not or may not
meet the requirements of this regulation and, to the extent modification
of any such policies and practices is required, the agency shall proceed
to make the necessary modifications.
(b) The agency shall provide an opportunity to interested persons,
including individuals with handicaps or organizations representing
individuals with handicaps, to participate in the self-evaluation
process by submitting comments (both oral and written).
(c) The agency shall, for at least three years following completion
of the self-evaluation, maintain on file and make available for public
inspection:
(1) A description of areas examined and any problems identified; and
(2) A description of any modifications made.
03 CFR -- 102.111 Notice.
The agency shall make available to employees, applicants,
participants, beneficiaries, and other interested persons such
information regarding the provisions of this regulation and its
applicability to the programs or activities conducted by the agency, and
make such information available to them in such manner as the head of
the agency finds necessary to apprise such persons of the protections
against discrimination assured them by section 504 and this regulation.
03 CFR -- 102.112 -- 102.129 (Reserved)
03 CFR -- 102.130 General prohibitions against discrimination.
(a) No qualified individual with handicaps shall, on the basis of
handicap, be excluded from participation in, be denied the benefits of,
or otherwise be subjected to discrimination under any program or
activity conducted by the agency.
(b)(1) The agency, in providing any aid, benefit, or service, may
not, directly or through contractual, licensing, or other arrangements,
on the basis of handicap --
(i) Deny a qualified individual with handicaps the opportunity to
participate in or benefit from the aid, benefit, or service;
(ii) Afford a qualified individual with handicaps an opportunity to
participate in or benefit from the aid, benefit, or service that is not
equal to that afforded others;
(iii) Provide a qualified individual with handicaps with an aid,
benefit, or service that is not as effective in affording equal
opportunity to obtain the same result, to gain the same benefit, or to
reach the same level of achievement as that provided to others;
(iv) Provide different or separate aid, benefits, or services to
individuals with handicaps or to any class of individuals with handicaps
than is provided to others unless such action is necessary to provide
qualified individuals with handicaps with aid, benefits, or services
that are as effective as those provided to others;
(v) Deny a qualified individual with handicaps the opportunity to
participate as a member of planning or advisory boards;
(vi) Otherwise limit a qualified individual with handicaps in the
enjoyment of any right, privilege, advantage, or opportunity enjoyed by
others receiving the aid, benefit, or service.
(2) The agency may not deny a qualified individual with handicaps the
opportunity to participate in programs or activities that are not
separate or different, despite the existence of permissibly separate or
different programs or activities.
(3) The agency may not, directly or through contractual or other
arrangements, utilize criteria or methods of administration the purpose
or effect of which would --
(i) Subject qualified individuals with handicaps to discrimination on
the basis of handicap; or
(ii) Defeat or substantially impair accomplishment of the objectives
of a program or activity with respect to individuals with handicaps.
(4) The agency may not, in determining the site or location of a
facility, make selections the purpose or effect of which would --
(i) Exclude individuals with handicaps from, deny them the benefits
of, or otherwise subject them to discrimination under any program or
activity conducted by the agency; or
(ii) Defeat or substantially impair the accomplishment of the
objectives of a program or activity with respect to individuals with
handicaps.
(5) The agency, in the selection of procurement contractors, may not
use criteria that subject qualified individuals with handicaps to
discrimination on the basis of handicap.
(6) The agency may not administer a licensing or certification
program in a manner that subjects qualified individuals with handicaps
to discrimination on the basis of handicap, nor may the agency establish
requirements for the programs or activities of licensees or certified
entities that subject qualified individuals with handicaps to
discrimination on the basis of handicap. However, the programs or
activities of entities that are licensed or certified by the agency are
not, themselves, covered by this regulation.
(c) The exclusion of nonhandicapped persons from the benefits of a
program limited by Federal statute or Executive order to individuals
with handicaps or the exclusion of a specific class of individuals with
handicaps from a program limited by Federal statute or Executive order
to a different class of individuals with handicaps is not prohibited by
this regulation.
(d) The agency shall administer programs and activities in the most
integrated setting appropriate to the needs of qualified individuals
with handicaps.
03 CFR -- 102.131 -- 102.139 (Reserved)
03 CFR -- 102.140 Employment.
No qualified individual with handicaps shall, on the basis of
handicap, be subject to discrimination in employment under any program
or activity conducted by the agency. The definitions, requirements, and
procedures of section 501 of the Rehabilitation Act of 1973 (29 U.S.C.
791), as established by the Equal Employment Opportunity Commission in
29 CFR Part 1613, shall apply to employment in federally conducted
programs or activities.
03 CFR -- 102.141 -- 102.148 (Reserved)
03 CFR -- 102.149 Program accessibility: Discrimination prohibited.
Except as otherwise provided in 102.150, no qualified individual
with handicaps shall, because the agency's facilities are inaccessible
to or unusable by individuals with handicaps, be denied the benefits of,
be excluded from participation in, or otherwise be subjected to
discrimination under any program or activity conducted by the agency.
03 CFR -- 102.150 Program accessibility: Existing facilities.
(a) General. The agency shall operate each program or activity so
that the program or activity, when viewed in its entirety, is readily
accessible to and usable by individuals with handicaps. This paragraph
does not --
(1) Necessarily require the agency to make each of its existing
facilities accessible to and usable by individuals with handicaps;
(2) In the case of historic preservation programs, require the agency
to take any action that would result in a substantial impairment of
significant historic features of an historic property; or
(3) Require the agency to take any action that it can demonstrate
would result in a fundamental alteration in the nature of a program or
activity or in undue financial and administrative burdens. In those
circumstances where agency personnel believe that the proposed action
would fundamentally alter the program or activity or would result in
undue financial and administrative burdens, the agency has the burden of
proving that compliance with 102.150(a) would result in such alteration
or burdens. The decision that compliance would result in such
alteration or burdens must be made by the agency head or his or her
designee after considering all agency resources available for use in the
funding and operation of the conducted program or activity, and must be
accompanied by a written statement of the reasons for reaching that
conclusion. If an action would result in such an alteration or such
burdens, the agency shall take any other action that would not result in
such an alteration or such burdens but would nevertheless ensure that
individuals with handicaps receive the benefits and services of the
program or activity.
(b) Methods -- (1) General. The agency may comply with the
requirements of this section through such means as redesign of
equipment, reassignment of services to accessible buildings, assignment
of aides to beneficiaries, home visits, delivery of services at
alternate accessible sites, alteration of existing facilities and
construction of new facilities, use of accessible rolling stock, or any
other methods that result in making its programs or activities readily
accessible to and usable by individuals with handicaps. The agency is
not required to make structural changes in existing facilities where
other methods are effective in achieving compliance with this section.
The agency, in making alterations to existing buildings, shall meet
accessibility requirements to the extent compelled by the Architectural
Barriers Act of 1968, as amended (42 U.S.C. 4151-4157), and any
regulations implementing it. In choosing among available methods for
meeting the requirements of this section, the agency shall give priority
to those methods that offer programs and activities to qualified
individuals with handicaps in the most integrated setting appropriate.
(2) Historic preservation programs. In meeting the requirements of
102.150(a) in historic preservation programs, the agency shall give
priority to methods that provide physical access to individuals with
handicaps. In cases where a physical alteration to an historic property
is not required because of 102.150(a) (2) or (3), alternative methods
of achieving program accessibility include --
(i) Using audio-visual materials and devices to depict those portions
of an historic property that cannot otherwise be made accessible;
(ii) Assigning persons to guide individuals with handicaps into or
through portions of historic properties that cannot otherwise be made
accessible; or
(iii) Adopting other innovative methods.
(c) Time period for compliance. The agency shall comply with the
obligations established under this section by November 7, 1988, except
that where structural changes in facilities are undertaken, such changes
shall be made by September 6, 1991, but in any event as expeditiously as
possible.
(d) Transition plan. In the event that structural changes to
facilities will be undertaken to achieve program accessibility, the
agency shall develop, by March 6, 1989, a transition plan setting forth
the steps necessary to complete such changes. The agency shall provide
an opportunity to interested persons, including individuals with
handicaps or organizations representing individuals with handicaps, to
participate in the development of the transition plan by submitting
comments (both oral and written). A copy of the transition plan shall
be made available for public inspection. The plan shall, at a minimum
--
(1) Identify physical obstacles in the agency's facilities that limit
the accessibility of its programs or activities to individuals with
handicaps;
(2) Describe in detail the methods that will be used to make the
facilities accessible;
(3) Specify the schedule for taking the steps necessary to achieve
compliance with this section and, if the time period of the transition
plan is longer than one year, identify steps that will be taken during
each year of the transition period; and
(4) Indicate the official responsible for implementation of the plan.
03 CFR -- 102.151 Program accessibility: New construction and
alterations.
Each building or part of a building that is constructed or altered
by, on behalf of, or for the use of the agency shall be designed,
constructed, or altered so as to be readily accessible to and usable by
individuals with handicaps. The definitions, requirements, and
standards of the Architectural Barriers Act (42 U.S.C. 4151-4157), as
established in 41 CFR 101-19.600 to 101-19.607, apply to buildings
covered by this section.
03 CFR -- 102.152 -- 102.159 (Reserved)
03 CFR -- 102.160 Communications.
(a) The agency shall take appropriate steps to ensure effective
communication with applicants, participants, personnel of other Federal
entities, and members of the public.
(1) The agency shall furnish appropriate auxiliary aids where
necessary to afford an individual with handicaps an equal opportunity to
participate in, and enjoy the benefits of, a program or activity
conducted by the agency.
(i) In determining what type of auxiliary aid is necessary, the
agency shall give primary consideration to the requests of the
individual with handicaps.
(ii) The agency need not provide individually prescribed devices,
readers for personal use or study, or other devices of a personal
nature.
(2) Where the agency communicates with applicants and beneficiaries
by telephone, telecommunication devices for deaf persons (TDD's) or
equally effective telecommunication systems shall be used to communicate
with persons with impaired hearing.
(b) The agency shall ensure that interested persons, including
persons with impaired vision or hearing, can obtain information as to
the existence and location of accessible services, activities, and
facilities.
(c) The agency shall provide signage at a primary entrance to each of
its inaccessible facilities, directing users to a location at which they
can obtain information about accessible facilities. The international
symbol for accessibility shall be used at each primary entrance of an
accessible facility.
(d) This section does not require the agency to take any action that
it can demonstrate would result in a fundamental alteration in the
nature of a program or activity or in undue financial and administrative
burdens. In those circumstances where agency personnel believe that the
proposed action would fundamentally alter the program or activity or
would result in undue financial and administrative burdens, the agency
has the burden of proving that compliance with 102.160 would result in
such alteration or burdens. The decision that compliance would result
in such alteration or burdens must be made by the agency head or his or
her designee after considering all agency resources available for use in
the funding and operation of the conducted program or activity and must
be accompanied by a written statement of the reasons for reaching that
conclusion. If an action required to comply with this section would
result in such an alteration or such burdens, the agency shall take any
other action that would not result in such an alteration or such burdens
but would nevertheless ensure that, to the maximum extent possible,
individuals with handicaps receive the benefits and services of the
program or activity.
03 CFR -- 102.161 -- 102.169 (Reserved)
03 CFR -- 102.170 Compliance procedures.
(a) Except as provided in paragraph (b) of this section, this section
applies to all allegations of discrimination on the basis of handicap in
programs and activities conducted by the agency.
(b) The agency shall process complaints alleging violations of
section 504 with respect to employment according to the procedures
established by the Equal Employment Opportunity Commission in 29 CFR
Part 1613 pursuant to section 501 of the Rehabilitation Act of 1973 (29
U.S.C. 791).
(c) The Director, Facilities Management, Office of Administration,
Executive Office of the President, shall be responsible for coordinating
implementation of this section. Complaints may be sent to the Director
at the following address: Room 486, Old Executive Office Building, 17th
and Pennsylvania Ave. NW., Washington, DC 20500.
(d) The agency shall accept and investigate all complete complaints
for which it has jurisdiction. All complete complaints must be filed
within 180 days of the alleged act of discrimination. The agency may
extend this time period for good cause.
(e) If the agency receives a complaint over which it does not have
jurisdiction, it shall promptly notify the complainant and shall make
reasonable efforts to refer the complaint to the appropriate Government
entity.
(f) The agency shall notify the Architectural and Transportation
Barriers Compliance Board upon receipt of any complaint alleging that a
building or facility that is subject to the Architectural Barriers Act
of 1968, as amended (42 U.S.C. 4151-4157), is not readily accessible to
and usable by individuals with handicaps.
(g) Within 180 days of the receipt of a complete complaint for which
it has jurisdiction, the agency shall notify the complainant of the
results of the investigation in a letter containing --
(1) Findings of fact and conclusions of law;
(2) A description of a remedy for each violation found; and
(3) A notice of the right to appeal.
(h) Appeals of the findings of fact and conclusions of law or
remedies must be filed by the complainant within 90 days of receipt from
the agency of the letter required by 102.170(g). The agency may extend
this time for good cause.
(i) Timely appeals shall be accepted and processed by the head of the
agency.
(j) The head of the agency shall notify the complainant of the
results of the appeal within 60 days of the receipt of the request. If
the head of the agency determines that additional information is needed
from the complainant, he or she shall have 60 days from the date of
receipt of the additional information to make his or her determination
on the appeal.
(k) The time limits cited in paragraphs (g) and (j) of this section
may be extended with the permission of the Assistant Attorney General.
(l) The agency may delegate its authority for conducting complaint
investigations to other Federal agencies, except that the authority for
making the final determination may not be delegated to another agency.
03 CFR -- 102.171 -- 102.999 (Reserved)
03 CFR -- 102.171 -- 102999 Title 3 Finding Aids
Table 1 -- Proclamations
Table 2 -- Executive Orders
Table 3 -- Other Presidential Documents
Table 4 -- Presidential Documents Affected During 1991
Table 5 -- Statutes Cited as Authority for Presidential Documents
List of CFR Sections Affected
Index
03 CFR -- 102.171 -- 102999
03 CFR -- 102.171 -- 102999 Title 3 -- The President
03 CFR -- 102.171 -- 102999 Table 1 -- Proclamations
03 CFR -- 102.171 -- 102999 Table 1 -- PROCLAMATIONS
03 CFR -- 102.171 -- 102999 Title 3 -- The President
03 CFR -- 102.171 -- 102999 Table 2 -- Executive Orders
03 CFR -- 102.171 -- 102999 Table 2 -- EXECUTIVE ORDERS
03 CFR -- 102.171 -- 102999 Title 3 -- The President
03 CFR -- 102.171 -- 102999 Table 3 -- Other Presidential Documents
03 CFR -- 102.171 -- 102999 Table 3 -- OTHER PRESIDENTIAL DOCUMENTS TABLE/GRAPH OMITTED
03 CFR -- 102.171 -- 102999 Title 3 -- The President
03 CFR -- 102.171 -- 102999 Table 4 -- Presidential Documents Affected
03 CFR -- 102.171 -- 102999 Table 4 -- PRESIDENTIAL DOCUMENTS AFFECTED
DURING 1991
Editorial note: The following abbreviations are used in this table:
EO Executive Order
FR Federal Register
PLO Public Land Order (43 CFR, Appendix to Chapter II)
Proc. Proclamation
Pub. L. Public Law
Stat. U.S. Statutes at Large
03 CFR -- 102.171 -- 102999
03 CFR -- 102.171 -- 102999 Proclamations
Date or Number Comment
3019 See Proc. 6313
5365 See Proc. 6343
5617 Superseded by Proc. 6245
5646 See Proc. 6343
5758 Superseded in part by Proc. 6244
5955 Superseded by Proc. 6245
6030 See Proc. 6343
6123 See Proc. 6245
6142 See Proc. 6343
6152 See Proc. 6245
6179 See Proc. 6301
6245 See Proc. 6309
6282 See Memorandum of Apr. 25, p. 417; Amended by Proc. 6309
6320 See Proc. 6352
03 CFR -- 102.171 -- 102999 Executive Orders
Date or Number Comment
854 Amended by EO 12781
July 2, 1910 Revoked in part by PLO 6832 (56 FR 11939)
July 2, 1910 Revoked in part by PLO 6836 (56 FR 11941)
July 9, 1910 Revoked in part by PLO 6829 (56 FR 2442)
April 19, 1912 Revoked in part by PLO 6858 (56 FR 23022)
May 28, 1912 Revoked by PLO 6906 (56 FR 57806)
November 8, 1912 Revoked by PLO 6905 (56 FR 57805)
May 19, 1913 Revoked by PLO 6869 (56 FR 41075)
May 31, 1915 Revoked by PLO 6908 (56 FR 57806)
October 9, 1917 Revoked in part by PLO 6885 (56 FR 50059)
October 9, 1917 Revoked in part by PLO 6831 (56 FR 3039)
April 17, 1926 Revoked in part by PLO 6910 (56 FR 59219)
4456A Revoked in part by PLO 6911 (56 FR 60927)
February 18, 1943 Revoked in part by PLO 6858 (56 FR 23022)
9358 See Public Law 102-141, 105 Stat. 859
5327 Revoked in part by PLO 6866 (56 FR 38083)
10422 See Public Law 102-141, 105 Stat. 859
10448 See EO 12776
10480 Amended by EO 12773
10982 Amended by EO 12748
11145 Continued by EO 12774
11157 Amended by EO 12762
11183 Continued by EO 12774; See Public Law 102-141, 105 Stat. 859
11269 See EO 12757; Amended by EO 12766
11287 Continued by EO 12774
11315 See EO 12748
11339 Revoked by EO 12781
11533 See EO 12755
11721 Revoked by EO 12748
11735 Revoked by EO 12777
11760 Amended by EO 12766
11776 Continued by EO 12774
12002 Amended by EO 12755; See Presidential Determination No.
91-20, p. 393
12123 Revoked by EO 12777
12131 Continued by EO 12774
12154 Amended by EOs 12749, 12758
12163 See Memorandum of Jan. 25, p. 393
12170 Continued by Notice of Nov. 12, p. 439
12193 See EO 12753
12196 Continued by EO 12774
12216 Continued by EO 12774
12220 Revoked by EO 12752
12261 See Public Law 102-190, 105 Stat. 1448
12295 See EO 12753
12333 See Public Law 102-172, 105 Stat. 1180; Public Law 102-183,
105 Stat. 1267; Public Law 102-88, 105 Stat. 434
12344 See Public Law 102-190, 105 Stat. 1578
12345 Continued by EO 12774
12351 See EO 12753
12356 See Public Law 102-141, 105 Stat. 872
12367 Continued by EO 12774
12382 Continued by EO 12774
12409 See EO 12753
12418 Revoked by EO 12777
12463 See EO 12753
12473 See EO 12767
12484 See EO 12767
12493 Revoked by EO 12760
12498 See EO 12498
12506 See EO 12753
12514 Revoked by EO 12787
12532 Revoked by EO 12769
12535 Revoked by EO 12769
12543 See Notice of Jan. 2, p. 387; See 56 FR 66334; Continued by
Notice of Dec. 26, p. 444
12544 See Notice of Jan. 2, p. 387; See 56 FR 66334; Continued by
Notice of Dec. 26, p. 444
12550 See EO 12767
12554 See EO 12753
12571 See EO 12769
12580 Amended by EO 12777
12583 Revoked by EO 12752
12586 See EO 12767
12587 See EO 12753
12594 Amended by EO 12782
12629 See EO 12753
12658 Revoked by EO 12774
12661 Partially revoked by EO 12774; See 56 FR 58774
12670 See EO 12753
12686 Revoked by EO 12774
12687 Amended by EOs 12741, 12785
12692 Superseded by EO 12774
12696 Amended by EO 12756
12700 Amended by EO 12768
12706 Superseded by EO 12753
12708 See EO 12767
12711 See Public Law 102-141, 105 Stat. 869
12714 See Public Law 102-29, 105 Stat. 169
12716 See EO 12774
12720 Amended by EO 12783
12722 See EOs 12743, 12750, 12751; Continued by Notice of July 26,
p. 428
12723 Revoked by EO 12771
12724 Continued by Notice of July 26, p. 428
12725 Revoked by EO 12771
12730 Continued by Notice of Sept. 26, p. 434
12735 Continued by Notice of Nov. 14, p. 440
12736 Superseded by EO 12786
12744 See Public Law 102-172, 105 Stat. 1212; Public Law 102-190,
105 Stat. 1487
12745 See Presidential Determination No. 91-18, p. 392
12746 See Presidential Determination No. 91-19, p. 393
12748 See EO 12764
12769 See 56 FR 38335
12775 Revoked to the extent that is inconsistent with EO 12779
03 CFR -- 102.171 -- 102999 Other Presidential Documents
Date Comment
Memorandum of June 22, 1988 Delegation of authority rescinded by
Memorandum of February 22, p. 395
Presidential Determination No. 90-4 November 8, 1989 See
Presidential Determination No. 91-13, p. 389
Notice of January 4, 1990 See Notice of January 2, p. 387
Presidential Determination No. 90-28 of July 3, 1990 Continued by
Memorandum of August 17, 1991, p. 430
Memorandum of August 24, 1990 Revoked by EO 12777
Order of August 25, 1990 Rescinded by Public Law 101-508, 104 Stat.
1388-628*
*This amendment was not noted in time for inclusion in last year's
compilation.
Presidential Determination No. 90-38 of September 5, 1990 Extended
for one year by Memorandum of September 13, p. 432
Memorandum of April 25 See Proc. 6282
Presidential Determination No. 91-11 See EO 12740
Presidential Determination No. 91-18 See EO 12745
Presidential Determination No. 91-19 See EO 12746
Presidential Determination No. 91-46 of July 13 See Presidential
Determination No. 91-53, p. 433
Memorandum of August 24 Revoked by EO 12777
Order of October 15, 1990 Rescinded by Public Law 101-508, 104 Stat.
1388-628*
03 CFR -- 102.171 -- 102999 Title 3 -- The President
03 CFR -- 102.171 -- 102999 Table 5 -- Statutes Cited As Authority
03 CFR -- 102.171 -- 102999 Table 5 -- STATUTES CITED AS AUTHORITY FOR
PRESIDENTIAL DOCUMENTS
Editorial note: Statutes which were cited as authority for the
issuance of Presidential documents contained in this volume are listed
under one or more of these headings:
Short Title of Act United States Statutes at Large United States
Code Public Laws
Citations have been set forth in the style in which they appear in
the documents. Since the form of citations varies from document to
document, users of this table should search under all headings for
pertinent references.
03 CFR -- 102.171 -- 102999
03 CFR -- 102.171 -- 102999 Short Title of Act
Title Presidential Document
Agricultural Act of 1949 (Sec. 103B) Proc. 6301
Agricultural Adjustment Act of 1933, as amended (Sec. 22) Proc. 6313
Agricultural Trade Development Act
Title I EO 12752
Title II EO 12752
Title III EO 12752
Agricultural Trade Development and Assistance Act of 1954, as amended
Citation to act as a whole EOs 12752, 12757
Title II Memorandum of May 31, p. 422
Arms Export Control Act, as amended
Sec. 3(a)(1) Presidential Determinations No. 92-6 of Dec. 6, p.
441; 92-7 of Dec. 6, p. 442; 92-8 of Dec. 6, p. 442
Sec. 23 Memorandum of Sept. 16, p. 433
Atomic Energy Act of 1954, as amended
Sec. 123(b) Presidential Determination No. 91-29 of Apr. 16, p.
413; No. 92-1 of Oct. 4, p. 435
Sec. 126a(2) EO 12753
Arms Export Control Act, as amended
Sec. 3(a)(1) Memorandums of Aug. 24, p. 431
Sec. 36(b)(1) Memorandum of Mar. 21, p. 410
Caribbean Basin Economic Recovery Act (Sec. 213) Proc. 6343
Compact of Free Association Act of 1985 (Sec. 401) Proc. 6343
Comprehensive Anti-Apartheid Act of 1986, as amended
Citation to act as a whole EO 12769
Customs and Trade Act of 1990
Title II Procs. 6245, 6343
Title III Proc. 6343
Defense Production Act of 1950, as amended EO 12773
Department of Defense Appropriations Act (Sec. 8105(d)(2)) Memorandum
of May 14, p. 420
Departments of Commerce, Justice, and State, the Judiciary, and
Related Agencies Appropriations Act, 1992 (Sec. 305) EO 12786
Department of Veterans Affairs Health-Care Personnel Act of 1991
(Sec. 301(a)) EO 12786
Dire Emergency Supplemental Appropriations and Transfers, Urgent
Supplementals, and Correcting Enrollment Errors Act of 1989 (Title II,
section 5) Memorandum of June 19, p. 424
Dire Emergency Supplemental Appropriations for Consequences of
Operation Desert Shield/Desert Storm, Food Stamps, Unemployment
Compensation Administration, Veterans Compensation and Pensions, and
Other Urgent Needs Act of 1991
Sec. 502(c) Memorandums of July 13, p. 428; Sept. 16, p. 433
Energy Policy and Conservation Act, as amended EO 12759
Environmental Quality Improvement Act of 1970, as amended EO 12761
Ethics Reform Act of 1989 (Sec. 704) EO 12786
European Bank for Reconstruction and Development Act
Citation to act as a whole EO 12766
Export Administration Act of 1969, as amended
Citation to act as a whole EO 12755
Export-Import Bank Act of 1945, as amended
Sec. 2(b)(2) Memorandums of Apr. 19, p. 416; June 5, p. 423
Sec. 2(b)(2)(D)(i) Memorandum of Apr. 19, p. 416
Federal Advisory Committee Act, as amended
Citation to act as a whole EOs 12747, 12756, 12764, 12774, 12785
Federal Civil Penalties Inflation Adjustment Act of 1990
Sec. 4 Memorandum of May 3, p. 419
Sec. 6 Memorandum of May 3, p. 419
Federal Employees Pay Comparability Act of 1990
Citation to act as a whole EO 12748
Sec. 302 EO 12786
Federal Property and Administrative Services Act, as amended (Sec.
205(a)) EO 12759
Federal Water Pollution Control Act (Sec. 311) EO 12777
Financial Reports Act of 1988 (Sec. 3603) EO 12781
Food, Agriculture, Conservation, and Trade Act of 1990
Citation to act as a whole EO 12752
Sec. 501 Proc. 6301
Sec. 1512 EO 12757
Food for Progress Act of 1985, as amended
Citation to act as a whole EO 12752
Food Security Wheat Reserve Act of 1980 Memorandum of May 31, p. 422
Foreign Assistance Act of 1961, as amended
Chapter 5 (Part II) Memorandum of Sept. 16, p. 433
Chapter 6 (Part II) Presidential Determination No. 92-5, p. 440
Chapter 9 (Part I) Memorandums of Apr. 6, p. 411; Apr. 19, p. 415
Sec. 451 Memorandum of Jan. 7, p. 390
Sec. 481(h)(2)(A) Presidential Determination No. 91-22, p. 396
Sec. 481(h)(2)(B) Presidential Determination No. 91-22, p. 396
Sec. 503 Memorandums of Aug. 24, p. 431
Sec. 503(a) Presidential Determinations No. 92-6 of Dec. 6, p.
441; 92-7 of Dec. 6, p. 442; No. 92-8 of Dec. 6, p. 444
Sec. 506 Memorandum of Jan. 16, p. 391
Sec. 506(a)(2) Memorandums of Apr. 6, p. 411; Apr. 19, p. 415;
May 26, p. 420
Sec. 552(c)(2) Memorandum of Apr. 19, p. 415; Presidential
Determination No. 92-5, p. 440
Sec. 614(a)(2) Memorandums of Jan. 16, p. 392; Mar. 6, p. 409
Sec. 633(a) Memorandum of Feb. 27, p. 396
Foreign Operations, Export Financing, and Related Programs
Appropriations Act, 1991
Sec. 531(d) Memorandum of Jan. 15, p. 391
Sec. 545 Presidential Determination No. 92-10, p. 445
Sec. 562 EO 12766
Sec. 562A(a)(2) Memorandum of Oct. 21, p. 438
Sec. 574 Memorandum of Mar. 4, p. 408
Sec. 586D Memorandums of July 13, p. 428; Sept. 16, p. 433
Foreign Relations Authorization Act, Fiscal Years 1986 and 1987 (Sec.
136) Presidential Determination No. 92-4 of Oct. 24, p. 439
Foreign Relations Authorization Act, Fiscal Years 1990 and 1991 (Sec.
417) Memorandum of Jan. 7, p. 389
Foreign Relations Authorization Act, Fiscal Years 1992 and 1993
Sec. 403 Memorandum of Dec. 27, p. 444
Sec. 404 Memorandum of Dec. 27, p. 444
Further Continuing Appropriations, Fiscal Year 1992 Presidential
Determination No. 92-10 of Dec. 30, p. 445
Higher Education Amendments of 1986 (Sec. 1505(a)(2)(B)) Memorandum
of February 22, p. 395
Immigration and Nationality Act
Sec. 101(a)(42) Presidential Determination No. 92-2 of Oct. 9, p.
436
Sec. 207 Presidential Determination No. 92-2 of Oct. 9, p. 436
Sec. 274A(d)(2) EO 12781
Sec. 274A(d)(4) EO 12781
Internal Revenue Code of 1986
Sec. 112 EO 12744
Sec. 7508 EO 12750
International Emergency Economic Powers Act
Citation to act as a whole EOs 12771, 12775, 12779; Notices of Sept.
26, p. 434; Nov. 14, p. 440
International Narcotics Control Act of 1990
Citation to act as a whole Memorandum of Jan. 25, p. 393
International Organizations Immunities Act
Citation to act as a whole EO 12766
Metric Conversion Act of 1975 EO 12770
Migration and Refugee Assistance Act of 1962, as amended
Sec. 2(b)(2) Presidential Determination No. 91-34 of Apr. 25, p.
419
Sec. 2(c)(1) Memorandums of Jan. 2, p. 388; Mar. 11, p. 409;
Apr. 6, p. 411; Apr. 17, p. 414; Apr. 22, p. 416; June 21, p.
425; July 8, p. 427; Aug. 29, p. 432, Dec. 16, p. 443
Motor Vehicle Information and Cost Savings Act, as amended EO 12759
National Defense Authorization Act for Fiscal Year 1991
Sec. 406(b) Memorandum of May 29, p. 422
Secs. 1701-1704 Memorandum of June 25, p. 426
National Defense Authorization Act for Fiscal Years 1992 and 1993
(Sec. 601) EO 12786
National Emergencies Act
Citation to act as a whole EOs 12743, 12751, 12771, 12775, 12779
Sec. 202(d) Notices of Jan. 2, p. 387; July 26, p. 428; Sept.
26, p. 434; Nov. 12, p. 439; Nov. 14, p. 440; Dec. 26, p. 444
National Environmental Education Act EO 12761
National Environmental Policy Act of 1969, as amended EO 12761
National Nutrition Monitoring and Related Research Act of 1990
Citation to act as a whole EO 12747
Omnibus Trade and Competitiveness Act of 1988
Citation to act as a whole Memorandum of Dec. 12, p. 443
Sec. 5164 EO 12770
Sec. 1211(d) Proc. 6310
Oil Pollution Act of 1990
Citation to act as a whole EO 12777
Sec. 5002(o)(1) Memorandum of Mar. 21, p. 410
Sec. 5002(o)(2) Memorandum of Aug. 6, p. 430
Resource Conservation and Recovery Act
Citation to act as a whole EO 12780
Solid Waste Disposal Act
Citation to act as a whole EO 12780
Steel Import Stabilization Act (Sec. 806) Memorandum of Oct. 1, p.
434
Trade Act of 1974, as amended
Citation to act as a whole Memorandums of June 24, p. 425, p. 426
Sec. 402 Memorandums of May 29, p. 421; June 3, p. 423
Sec. 402(a) Presidential Determination No. 92-3 of Oct. 16, p. 438
Sec. 402(c)(2) EOs 12745, 12746, 12772
Sec. 402(c)(2)(A) Memorandums of Jan. 22, p. 392; Jan. 23, p.
393; Aug. 17, p. 430
Sec. 404 Procs. 6307, 6308, 6320, 6352
Sec. 405 Procs. 6307, 6308, 6320, 6352
Sec. 405(a) Memorandum of Aug. 2, p. 429
Sec. 409(a) Presidential Determination No. 92-3 of Oct. 16, p. 438
Title V Procs. 6282, 6388, 6389
Sec. 501 Procs. 6244, 6245, 6309; Memorandum of Apr. 25, p. 417
Sec. 502 Procs. 6244, 6245, 6309; Memorandum of Apr. 25, p. 417
Sec. 504 Procs. 6244, 6245, 6309; Memorandum of Apr. 25, p. 417
Sec. 604 Procs. 6244, 6245, 6282, 6301, 6307, 6308, 6309, 6310,
6313, 6320, 6343, 6352, 6388, 6389
Treasury, Postal Service and General Government Appropriations Act,
1991
Sec. 529 EO 12786
Sec. 633 EO 12786
United Nations Participation Act
Citation to act as a whole EO 12771
United States-Canada Free-Trade Agreement Implementation Act of 1988
Sec. 201 Proc. 6343
Sec. 202 Proc. 6343
United States-Israel Free Trade Area Implementation Act of 1985 (Sec.
4) Proc. 6343
03 CFR -- 102.171 -- 102999 United States Statutes at Large
Statutes Citation Presidential Document
30 Stat. 11 EO 12781
30 Stat. 36 EO 12781
38 Stat. 770 Proc. 6279
48 Stat. 657 Proc. 6354
52 Stat. 148 Proc. 6268
63 Stat. 492 Proc. 6300
64 Stat. 158 Proc. 6292
77 Stat. 402 Proc. 6391
79 Stat. 997 EO 12780
72 Stat. 369 Proc. 6278
73 Stat. 212 Proc. 6315
75 Stat. 681 Proc. 6370
77 Stat. 629 Proc. 6249
77 Stat. 843 Proc. 6247
78 Stat. 849 Proc. 6342
80 Stat. 194 Proc. 6300
82 Stat. 250 Proc. 6354
88 Stat. 1978 Proc. 6320, 6343, 6352; Memorandums of May 29, p.
421; June 3, p. 423; June 24, p. 425, p. 426; Aug. 2, p. 429
89 Stat. 211 Proc. 6300
89 Stat. 871 EO 12759
90 Stat. 2795 EO 12780
91 Stat. 1625 Memorandum of Sept. 13, p. 432
103 Stat. 120 Memorandum of June 19, p. 424
104 Stat. 72 Memorandum of Jan. 7, p. 389
104 Stat. 552 Memorandum of Mar. 21, p. 410
104 Stat. 629 Proc. 6245
104 Stat. 655 Proc. 6245
104 Stat. 1546 Memorandum of May 29, p. 422
104 Stat. 1856 Memorandum of May 14, p. 420
104 Stat. 1979 EO 12766
104 Stat. 3325 EO 12761
104 Stat. 2034 EO 12766
03 CFR -- 102.171 -- 102999 United States Code
U.S. Code Citation Presidential Document
2 U.S.C. 31 EO 12786
3 U.S.C. 104 EO 12786
3 U.S.C. 301 EOs 12743, 12752, 12759, 12763, 12765, 12769, 12771,
12775, 12777, 12779, 12781, 12784; Memorandums of Jan. 10, p. 390;
Jan. 15, p. 391; Jan. 25, p. 393; Feb. 11, p. 394; Feb. 21, p.
395; Feb. 22, p. 395; Apr. 9, p. 412; May 3, p. 419; June 10, p.
424; June 25, p. 426; Oct. 21, p. 438; Oct. 24, p. 439, Nov. 26,
p. 441; Dec. 12, p. 443; Dec. 27, p. 444
5 U.S.C. 3301 EO 12748
5 U.S.C. 3302 EO 12748
5 U.S.C. 3347 EO 12787
5 U.S.C. 5304(e) EO 12764
5 U.S.C. 5317 EOs 12749, 12758
5 U.S.C. 5303 EO 12786
5 U.S.C. 5318 EO 12786
5 U.S.C. 5382 EO 12786
5 U.S.C. 6103(a) Proc. 6345
5 U.S.C. App. EOs 12747, 12764, 12766, 12774, 12785
5 U.S.C. App. 2 EOs 12756
7 U.S.C. 624 Proc. 6313
7 U.S.C. 1691 et seq. Memorandum of May 31, p. 422
7 U.S.C. 1736f-1 Memorandum of May 31, p. 422
8 U.S.C. 1101(a)(42) Presidential Determination No. 92-2 of Oct. 9,
p. 436
8 U.S.C. 1157 Presidential Determination No. 92-2 of Oct. 9, p.
436
8 U.S.C. 1324a(d)(2) EO 12781
8 U.S.C. 1324a(d)(4) EO 12781
10 U.S.C. 527 EO 12743
10 U.S.C. 644 EO 12743
10 U.S.C. 673 EO 12743
10 U.S.C. Chapter 47 EO 12767
10 U.S.C. 4501 EO 12742
10 U.S.C. 4561 EO 12781
10 U.S.C. 6082 EO 12781
10 U.S.C. 7427 EO 12784
10 U.S.C. 7428 EO 12784
10 U.S.C. 9501 EO 12742
10 U.S.C. 9561 EO 12781
12 U.S.C. 635(b)(2) Memorandum of June 5, p. 423
12 U.S.C. 635(b)(2)(D)(i) Memorandum of Apr. 19, p. 416
15 U.S.C. 205a et seq. EO 12770
15 U.S.C. 1901 et seq. EO 12759
16 U.S.C. 473 EO 12781
19 U.S.C. 2112 note Proc. 6343
19 U.S.C. 2253 note Memorandum of Oct. 1, p. 434
19 U.S.C. 2432 Memorandums of May 29, p. 421; June 3, p. 423
19 U.S.C. 2432(a) Presidential Determination No. 92-3 of Oct. 16,
p. 438
19 U.S.C. 2432(c)(2) EOs 12745, 12746, 12772
19 U.S.C. 2432(c)(2)(A) Memorandums of Jan. 22, p. 392; Jan. 23,
p. 393; Aug. 17, p. 430
19 U.S.C. 2434 Procs. 6307, 6308, 6320, 6352
19 U.S.C. 2435 Procs. 6307, 6308, 6320, 6352
19 U.S.C. 2439(a) Presidential Determination No. 92-3 of Oct. 16,
p. 438
19 U.S.C. 2461 Procs. 6244, 6245, 6309, 6388
19 U.S.C. 2461 et seq. Proc. 6282; Memorandum of Apr. 25, p. 417
19 U.S.C. 2462 Procs. 6244, 6245, 6309, 6388; Memorandum of Apr.
25, p. 417
19 U.S.C. 2464 Procs. 6244, 6245, 6309, 6389; Memorandum of Apr.
25, p. 417
19 U.S.C. 2483 Procs. 6244, 6245, 6282, 6307, 6308, 6309, 6310,
6313, 6320, 6343, 6352, 6388, 6389
19 U.S.C. 3011(d) Proc. 6310
22 U.S.C. 287c EO 12771
22 U.S.C. 288 EO 12766
22 U.S.C. 2291(h)(2)(A) Presidential Determination No. 91-22, p.
396
22 U.S.C. 2291(h)(2)(B) Presidential Determination No. 91-22, p.
396
22 U.S.C. 2318(a)(2) Memorandum of Apr. 6, p. 411
22 U.S.C. 2318(a)(2) Memorandum of Apr. 19, p. 415
22 U.S.C. 2348a(c)(2) Memorandum of Apr. 19, p. 415
22 U.S.C. 2364(a)(2) Memorandum of Mar. 6, p. 40922 U.S.C. 2261
Memorandum of Jan. 7, p. 390
22 U.S.C. 2311 Memorandums of Aug. 24, p. 431
22 U.S.C. 2311(a) Presidential Determinations No. 92-6 of Dec. 6,
p. 441; 92-7 of Dec. 6, p. 442; 92-8 of Dec. 6, p. 442
22 U.S.C. 2318(a)(1) Memorandum of Jan. 16, p. 391
22 U.S.C. 2318(a)(2) Memorandum of May 26, p. 420
22 U.S.C. 2348a(c)(2) Presidential Determination No. 92-5, p. 440
22 U.S.C. 2364(a)(2) Memorandum of Jan. 16, p. 392
22 U.S.C. 2393(a) Memorandum of Feb. 27, p. 396
22 U.S.C. 2601(b)(2) Presidential Determination No. 91-34 of Apr.
25, p. 419
22 U.S.C. 2601(c)(1) Memorandums of Jan. 2, p. 388; Mar. 11, p.
409; Apr. 6, p. 411; Apr. 17, p. 414; Apr. 22, p. 416; June 21,
p. 425; July 8, p. 427; Aug. 29, p. 432, Dec. 16, p. 443
22 U.S.C. 2753(a)(1) Memorandums of Aug. 24, p. 431; Presidential
Determinations No. 92-6 of Dec. 6, p. 441; 92-7 of Dec. 6, p. 442;
No. 92-8 of Dec. 6, p. 442
22 U.S.C. 2776(b)(1) Memorandum of Mar. 21, p. 410
22 U.S.C. 5351 et seq. EO 12781
26 U.S.C. 112 EO 12744
26 U.S.C. 7508 EO 12750
28 U.S.C. 461(a) EO 12786
33 U.S.C. 1321 EO 12777
36 U.S.C. Proc. 6278
36 U.S.C. 143 Proc. 6348
36 U.S.C. 150 Proc. 6268
36 U.S.C. 153 Proc. 6330
36 U.S.C. 155 Proc. 6350
36 U.S.C. 159 Proc. 6330
36 U.S.C. 160 Proc. 6296
36 U.S.C. 161 Proc. 6266
36 U.S.C. 163 Proc. 6341
36 U.S.C. 166 Proc. 6296
36 U.S.C. 169a Proc. 6249
36 U.S.C. 169b Proc. 6247
36 U.S.C. 169c Procs. 6342, 6391
36 U.S.C. 142a Proc. 6302
37 U.S.C. 403(j)(1) EO 12762
38 U.S.C. 5011A EO 12751
40 U.S.C. 486(a) EO 12759
42 U.S.C. 2153(b) Presidential Determination No. 91-29 of Apr. 16,
p. 413, p. 413; Presidential Determination No. 92-1 of Oct. 4, p.
435
42 U.S.C. 2155(a)(2) EO 12753
42 U.S.C. 4321 et seq. EO 12761
42 U.S.C. 4371 et seq. EO 12761
42 U.S.C. 6201 et seq. EO 12759
42 U.S.C. 6962 EO 12780
50 U.S.C. 82 EO 12742
50 U.S.C. 1601 et seq. EOs 12743, 12751, 12771, 12775, 12779
50 U.S.C. 1622(d) Notices of Jan. 2, p. 387; Sept. 26, p. 434;
Nov. 12, p. 439; Nov. 14, p. 440; Dec. 26, p. 444
50 U.S.C. 1631 EO 12743
50 U.S.C. 1701 et seq. EOs 12771, 12775, 12779; Notices of Sept.
26, p. 434; Nov. 14, p. 440
50 U.S.C. 2601 et seq. EO 12773
50 U.S.C. App. 5(b) note Memorandum of Sept. 13, p. 432
50 U.S.C. App. 468 EO 12742
50 U.S.C. App. 2401 et seq. EO 12755
03 CFR -- 102.171 -- 102999 Public Laws
Law Number Presidential Document
Pub. L. 86-753 Proc. 6341
Pub. L. 87-20 Proc. 6283
Pub. L. 87-780 Proc. 6339
Pub. L. 89-272 EO 12780
Pub. L. 93-618 Proc. 6320, 6343, 6352; Memorandums of May 29, p.
421; June 3, p. 423; June 24, p. 425, p. 426; Aug. 2, p. 429
Pub. L. 94-163 EO 12759
Pub. L. 94-168 EO 12770
Pub. L. 94-580 EO 12780
Pub. L. 95-223 Memorandum of Sept. 13, p. 432
Pub. L. 98-144 Proc. 6242
Pub. L. 99-239 Proc. 6343
Pub. L. 99-440 EO 12769
Pub. L. 99-93 Memorandum of Oct. 24, p. 439
Pub. L. 100-307 Proc. 6280
Pub. L. 100-402 Proc. 6337
Pub. L. 100-418 EO 12770; Memorandum of Dec. 12, p. 443
Pub. L. 100-449 Proc. 6343
Pub. L. 101-45 Memorandum of June 19, p. 424
Pub. L. 101-194 EO 12786
Pub. L. 101-246 Memorandum of Jan. 7, p. 389
Pub. L. 101-380 EO 12777; Memorandum of Mar. 21, p. 410
Pub. L. 101-382 Proc. 6245, 6343
Pub. L. 101-410 Memorandum of May 3, p. 419
Pub. L. 101-418 Proc. 6259
Pub. L. 101-424 Proc. 6393
Pub. L. 101-445 EO 12747
Pub. L. 101-466 Memorandum of Jan. 10, p. 390
Pub. L. 101-468 Proc. 6246
Pub. L. 101-470 Proc. 6261
Pub. L. 101-471 Proc. 6277
Pub. L. 101-473 Proc. 6253
Pub. L. 101-491 Proc. 6299
Pub. L. 101-492 Proc. 6323
Pub. L. 101-509 EOs 12748, 12786
Pub. L. 101-510 Memorandums of May 29, p. 422; June 25, p. 426
Pub. L. 101-511 Memorandum of May 14, p. 420
Pub. L. 101-513 Memorandums of Jan. 15, p. 391; Mar. 4, p. 408;
July 13, p. 428, Sept. 16, p. 433; Oct. 21, p. 438; Presidential
Determination No. 92-10 of Dec. 30, p. 445; EO 12766
Pub. L. 101-532 Proc. 6286
Pub. L. 101-564 Proc. 6263
Pub. L. 101-570 Proc. 6394
Pub. L. 101-587 Proc. 6363
Pub. L. 101-619 EO 12761
Pub. L. 101-623 Memorandum of Jan. 25, p. 393
Pub. L. 101-624 EOs 12752, 12757
Pub. L. 101-643 Proc. 6251
Pub. L. 102-17 Proc. 6306
Pub. L. 102-23 Proc. 6267
Pub. L. 102-27 Memorandums of July 13, p. 428; Sept. 16, p. 433
Pub. L. 102-40 EO 12786
Pub. L. 102-68 Proc. 6386
Pub. L. 102-92 Proc. 6328
Pub. L. 102-112 Proc. 6378
Pub. L. 102-115 Proc. 6353
Pub. L. 102-121 Proc. 6369
Pub. L. 102-138 Memorandum of Dec. 27, p. 444
Pub. L. 102-140 EO 12786
Pub. L. 102-145 Presidential Determination No. 92-10 of Dec. 30, p.
445
Pub. L. 102-190 EO 12786
Pub. L. 102-177 Proc. 6398
Pub. L. 102-206 Proc. 6396
Pub. L. 102-210 Proc. 6395
03 CFR -- 102.171 -- 102999 Title 3 -- The President
03 CFR -- 102.171 -- 102999 List of Sections Affected
03 CFR -- 102.171 -- 102999 LIST OF CFR SECTIONS AFFECTED
Editorial note: All changes in Chapter I of this volume of the Code
of Federal Regulations which were made by documents published in the
Federal Register since January 1, 1986, are enumerated in the following
list. Entries indicate the nature of the changes effected. Page
numbers refer to Federal Register pages. The user should consult the
entries for chapters and parts as well as sections for revisions.
For the period before January 1, 1986, see the ''List of CFR Sections
Affected, 1949-1963, 1964-1972, and 1973-1985'' published in seven
separate volumes.
Presidential documents affected during 1990 are set forth in Table 4
on page 411.
3 CFR
3 CFR
53 FR
Page
Chapter I
102
Added 25879
3 CFR
3 CFR
55 FR
Page
Chapter I
101
Authority citation added 46037
101.3
Revised 46037
101.6
Added 46037
101.7
Added 46037
101.8
Added 46037
03 CFR -- 102.171 -- 102999 Title 3 -- The President
03 CFR -- 102.171 -- 102999 Index
03 CFR -- 102.171 -- 102999 Index
03 CFR -- 102.171 -- 102999
03 CFR -- 102.171 -- 102999 A
Abortion
Sanctity of Human Life Day, National (Proc. 6241)
Sanctity of Human Life Day, National, 1992 (Proc. 6397)
Adoption Week, National (Proc. 6383)
Advisory commission, committee, council. See other part of title
Afghanistan; narcotics production and trafficking, cooperation with
U.S. (Presidential Determination No. 91-22 of Mar. 1, p. 396)
Africa
See also specific country
Apartheid; terminations of sanctions against South Africa (EO 12769)
Economic Community of West Africa; peacekeeping operations in
Liberia (Presidential Determination No. 91-14 of Jan. 7, p. 390)
Food security wheat reserve release (Presidential Determination No.
91-38 of May 31, p. 422)
Horn of Africa; refugee assistance (Presidential Determination No.
91-51 of Aug. 29, p. 432)
Indirect financing to certain countries (Presidential Determination
No. 92-10 of Dec. 30, p. 445)
Refugee assistance and admissions (Presidential Determination Nos.
91-12 of Jan. 2, p. 388; 91-42 of June 21, p. 425; 91-45 of July 8, p.
427; No. 92-2 of Oct. 9, p. 436)
African-Americans
Martin Luther King, Jr., Federal Holiday (Proc. 6242)
Historically Black Colleges Week, National, 1991 and 1992 (Proc.
6332)
Minority Enterprise Development Week (Proc. 6329)
Aged
See also Health and Safety
Older Americans Month (Proc. 6284)
Older Worker Week, Employ the (Proc. 6260)
Senior Citizens Day, National (Proc. 6321)
Agriculture and agricultural commodities
See also specific commodity, Trade
Acquisition by Secretary of Defense (EO 12773)
Farm-City Week, National (Proc. 6377)
Farm Safety Week (Proc. 6270)
Rural America, President's Council on; extension (EO 12783)
Sales and donations to developing countries (EO 12752)
World Food Day, 1991 and 1992 (Proc. 6356)
AIDS Awareness Week, Pediatric (Proc. 6290)
Alaska:
Cook Inlet; certification of environmental stewardship
(Certification of Aug. 6, p. 430)
Native culture and arts development; delegation of authority
(Memorandum of Feb. 22, p. 395)
Prince William Sound; certification of environmental stewardship
(Certification of Mar. 21, p. 410)
Alcohol. See Drug abuse
Alzheimer's Disease Month, National, 1991 and 1992 (Proc. 6372)
American. See other part of title
Angola
Compliance with Namibia/Angola accords; certification (Presidential
Determination No. 91-13 of Jan. 7, p. 389)
Progress toward national reconciliation; certification (Presidential
Determination No. 91-41 of June 19, p. 424)
Apartheid; termination of sanctions against South Africa (EO 12769)
Arbor Day, National (Proc. 6276)
Armed Forces, U.S. See also Defense Department, Persian Gulf
conflict, Veterans
Basic allowance for quarters; amendment (EO 12762)
Combat zone and Persian Gulf Desert Shield area; designation of
Arabian Peninsula areas, airspace, and adjacent waters (EOs 12744,
12750)
Courts-Martial manual, United States, 1984; amendments (EO 12767)
Defense Service Medal, National; availability to reservists in
Persian Gulf War (EO 12776)
Desert Storm Reservists Day (Proc. 6298)
Health care services for Desert Storm personnel (EO 12751)
POW/MIA Recognition Day, National (Proc. 6334)
Prisoner of War Recognition Day, Former (Proc. 6267)
Ready Reserve; order to active duty (EO 12743)
Uniform military ration (EO 12781)
Arthritis Awareness Week, National Juvenile (Proc. 6318)
Arts
Alaska Native culture and arts development; delegation of authority
(Memorandum of Feb. 22, p. 395)
American Indian culture and arts development; delegation of
authority (Memorandum of Feb. 22, p. 395)
Arts and the Humanities, President's Commission on; continuation (EO
12774)
Asia
See also specific country
East and South Asia; refugee assistance (Presidential Determination
No. 92-2 of Oct. 9, p. 436)
Indirect financing to certain countries (Presidential Determination
No. 92-10 of Dec. 30, p. 445)
Release of food security wheat reserve (Presidential Determination
No. 91-38 of May 31, p. 422)
Asian/Pacific American Heritage Month, 1991 and 1992 (Proc. 6288)
Aviation and space
Aviation Security and Terrorism, President's Commission on;
revocation (EO 12774)
Wright Brothers Day (Proc. 6391)
Awards
See also Medals
Environment and Conservation Challenge Awards, President's;
establishment (EO 12761)
Volunteer action award, President's (EO 12782)
03 CFR -- 102.171 -- 102999 B
Bahamas, The; narcotics production and trafficking, cooperation with
U.S. (Presidential Determination No. 91-22 of Mar. 1, p. 396)
Baltic Freedom Day, 1991 and 1992 (Proc. 6306)
Bangladesh:
Drawdown of Defense Department articles and services for disaster
assistance (Presidential Determination No. 91-35 of May 26, p. 420)
Trade tariffs; Generalized System of Preferences (Memorandum of Apr.
25, p. 417)
Barry, Commodore John, Day (Proc. 6328)
Basketball Centennial Day (Proc. 6395)
Benin; trade tariffs, Generalized System of Preferences (Memorandum
of Apr. 25, p. 417)
Belize; narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Bill of Rights: Thanksgiving for the Blessings of Liberty, Year of
(Proc. 6394)
Boating Week, Safe (Proc. 6266)
Bolivia; narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Brazil; narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Breast Cancer Awareness Month, National (Proc. 6364)
Bulgaria:
Designation as a beneficiary developing country for GSP (Proc. 6388)
Trade (Proc. 6307; EO 12745; Presidential Determination Nos. 91-18
of Jan. 22, p. 392; 91-39 of June 3, p. 423; 91-40 of June 5, p. 423;
91-43 of June 24, p. 425)
Burma
Narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Refugee assistance (Presidential Determination No. 91-34 of Apr. 25,
p. 419)
Burundi
Refugee assistance and admissions (Presidential Determination No.
91-12 of Jan. 2, p. 388)
Sale of defense articles and services (Presidential Determination No.
91-50 of Aug. 24, p. 431)
Business and industry
See also Trade
Consumers Week, National (Proc. 6360)
Disability Employment Awareness Month, National (Proc. 6350)
Industrial responsiveness, national security (EO 12742)
Minority Enterprise Development Week (Proc. 6329)
Small Business Week (Proc. 6289)
Steel industry modernization; annual certification (Memorandum of
Oct. 1, p. 434)
Tourism Week (Proc. 6287)
U.S. banking and financial organizations; improved access to foreign
markets (EO 12781)
03 CFR -- 102.171 -- 102999 C
Cambodia
Humanitarian and development assistance; delegation of authority
(Memorandum of June 10, p. 424)
Non-communist resistance cooperation with the Khmer Rouge (Memorandum
of Feb. 21, p. 395)
Refugee assistance; report on expenditure of funds to assist,
delegation to Secretary of State (Memorandum of Oct. 21, p. 438)
Transactions prohibition (Presidential Determination No. 91-52 of
Sept. 13, p. 432)
Campus Crime and Security Awareness Week, National (Proc. 6326)
Canada
See also Trade
Free-Trade Agreement; acceleration of duty elimination (Proc. 6343)
Free-Trade Agreement Implementation Act; delegation of authority
(Memorandum of Feb. 11, p. 394)
Trade tariffs; Generalized System of Preferences and Harmonized
Tariff Schedule (Procs. 6282, 6309, 6310)
Cancer
Awareness Month for Children with Cancer (Proc. 6324)
Breast Cancer Awareness Month, National (Proc. 6364)
Cancer Control Month (Proc. 6268)
Captive Nations Week (Proc. 6315)
Caribbean; refugee admissions (Presidential Determination No. 92-2,
p. 436)
Central African Republic, trade tariffs; Generalized System of
Preferences (Proc. 6245)
Chad; refugee assistance and admissions (Presidential Determination
No. 91-12 of Jan. 2, p. 388)
Chemical and biological weapons; export control (Notice of Nov. 14,
p. 440)
Children and youth
See also Education, Health and Safety
Adoption Week, National (Proc. 6383)
Arthritis Awareness Week, National Juvenile (Proc. 6318)
Awareness Month for Children with Cancer, National (Proc. 6324)
Campus Crime and Security Awareness Week, National (Proc. 6326)
Child Health Day (Proc. 6348)
Children's Day, National (Proc. 6355)
Family Week, National, 1991 and 1992 (Proc. 6378)
Foster Care Month (Proc. 6297)
Infant Mortality Awareness Day (Proc. 6290)
Pediatric AIDS Awareness Week (Proc. 6305)
Poison Prevention Week, National, 1992 (Proc. 6370)
Sanctity of Human Life Day, National (Proc. 6241)
Sanctity of Human Life Day, National, 1992 (Proc. 6397)
School Breakfast Week (Proc. 6258)
Chile; trade tariffs; Generalized System of Preferences (Proc.
6244)
China; renewal of most-favored-nation trade status (Presidential
Determination No. 91-36 of May 29, p. 421)
Citizens Democracy Corps, delegation of authority (Memorandum of Apr.
9, p. 412)
Citizenship Day and Constitution Week (Proc. 6330)
Civil Justice reform (EO 12778)
Clean Water, Year and Month, 1992 (Proc. 6393)
Colombia; narcotics production and trafficking, cooperation with
U.S. (Presidential Determination No. 91-22 of Mar. 1, p. 396)
Columbus Day (Proc. 6354)
Commissions, boards, committees, etc.:
Arts and the Humanities, President's Committee on; continuation (EO
12774)
Aviation Security and Terrorism, President's Commission; revocation
(EO 12774)
Drug Advisory Council, President's; continuation (EO 12756)
Education Policy Advisory Committee, President's; extension (EO
12785)
Environment and Conservation Challenge Awards, President's;
establishment (EO 12761)
European Bank for Reconstruction and Development; designation as
public international organization (EO 12766)
Executive Exchange, President's Commission on; abolishment (EO
12760)
Export Council, President's; continuation (EO 12774)
Food Assistance Policy Council; establishment (EO 12752)
International Labor Organization, President's Committee on;
continuation (EO 12774)
Mental Retardation, President's Committee on; continuation (EO
12774)
Nuclear Accidents, President's Commission on Catastrophic;
revocation (EO 12774)
Nutrition Monitoring Advisory Council, National; establishment (EO
12747)
Occupational Safety and Health federal advisory council;
continuation (EO 12774)
Physical Fitness and Sports, President's Council on; continuation
(EO 12774)
Recycling and Procurement Policy, Council on Federal; establishment
(EO 12780)
Rural America, President's Council on; extension (EO 12783)
Salary Council, Federal; establishment (EO 12764)
Science, National Medal of, President's Committee on (National
Science Foundation); continuation (EO 12774)
Science and Technology, President's Council of Advisors on;
extension (EO 12768)
Security Telecommunications Advisory Committee, President's National;
continuation (EO 12774)
Superconductivity, National Commission on; revocation (EO 12774)
White House Fellowships, President's Commission on; continuation (EO
12774)
White House preservation committee; continuation (EO 12774)
Community Center Month (Proc. 6363)
Congo; sale of defense articles and services (Presidential
Determination No. 91-49 of Aug. 24, p. 431)
Conservation. See Environment
Consumers Week, National (Proc. 6360)
Cotton, upland; establishment of programs for special import quotas
(Proc. 6301)
Cook Inlet Regional Citizens Advisory Council; certification of
environmental stewardship (Certification of Aug. 6, p. 430)
Country Music Month (Proc. 6358)
County Government Week (Proc. 6261)
Courts-Martial manual, United States, 1984; amendments (EO 12767)
Crime. See Law enforcement and crime
Cuba:
Assets control regulations (Presidential Determination No. 91-52 of
Sept. 13, p. 432)
Certification on compliance with Namibia/Angola accords (Presidential
Determination No. 91-13 of Jan. 7, p. 389)
Czech and Slovak Federal Republic
Defense articles and services allocation (Presidential Determination
No. 92-6 of Dec. 6, p. 441)
Emigration policy; certification that is non-restrictive
(Presidential Determination No. 92-3 of Oct. 16, p. 438)
Nuclear energy (Presidential Determination No. 91-28 of Apr. 16, p.
413)
Trade (Proc. 6282, Presidential Determination Nos. 91-39 of June 3,
p. 423)
03 CFR -- 102.171 -- 102999 D
D.A.R.E. Day, National (Proc. 6335)
Day. See specific observance
Defense Department See also Armed Forces, Veterans
Bangladesh; drawdown of Department articles and services for
disaster assistance (Presidential Determination No. 91-35 of May 26, p.
420)
Defense articles, services, and exports to Middle East and Persian
Gulf region; moratorium (Memorandum of Dec. 27, p. 444)
Defense materials acquisition; delegation to Secretary of Defense
(EO 12773)
Delegation of authorities (EO 12765)
Europe; strength level of U.S. Armed forces, determination
(Presidential Determination No. 91-37 of May 29, p. 422)
Foreign military sales or assistance (Presidential Determination Nos.
91-15 of Jan. 15, p. 391; 91-16 of Jan. 16, p. 391; 91-17 of Jan. 16,
p. 392; 91-49 of Aug. 24, p. 431)
Japan; strength level of U.S. Armed Forces, waiver (Memorandum of
May 14, p. 420)
Jordan; sale of defense articles and services (Presidential
Determination No. 91-53 of Sept. 16, p. 433)
Refugee assistance; drawdown from Department stocks (Presidential
Determination Nos. 91-26 of Apr. 6, p. 411; 91-31 of Apr. 19, p. 415)
Secretary of Defense; authority succession (EO 12787)
Southwest Asia Service Medal; establishment (EO 12754)
Defense Transportation Day and Transportation Week (Proc. 6296)
Desert Storm Reservists Day (Proc. 6298)
Disabled persons
Disability Employment Awareness Month, National (Proc. 6350)
Housing Month, National Accessible (Proc. 6381)
Mental Illness Awareness Week (Proc. 6351)
Rehabilitation Week, National (Proc. 6327)
White Cane Safety Day (Proc. 6344)
District of Columbia Month, Bicentennial (Proc. 6392)
Doctors Day (Proc. 6253)
Dominican Republic, trade tariffs; Generalized System of Preferences
(Memorandum of Apr. 25, p. 417)
Down Syndrome Awareness Month, National (Proc. 6361)
Drug abuse
See also Law enforcement and crime
Drug Abuse Resistance Education Day, National (Proc. 6335)
Drug Advisory Council, President's; continuance (EO 12756)
Drug-Free America, National Red Ribbon Week (Proc. 6365)
Narcotics control; delegation of authorities (Presidential
Determination No. 91-20 of Jan. 25, p. 393)
Narcotics source and transit countries; cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Dutch-American Heritage Day (Proc. 6375)
03 CFR -- 102.171 -- 102999 E
Earth Day (Proc. 6274)
Eastern Europe
See also specific country
Refugee admissions (Presidential Determination 92-2 of Oct. 9, p.
436)
Ecuador; narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Education
See also Children and youth, Health and safety
Education Day, U.S.A. (Proc. 6262)
Education First Week (Proc. 6273)
Education Policy Advisory Committee, President's; extension (EO
12785)
Fire Prevention Week (Proc. 6338)
Geography Awareness Week, 1991 and 1992 (Proc. 6384)
Historically Black Colleges Week, National, 1991 and 1992 (Proc.
6332)
Literacy Day, National (Proc. 6312)
Parents and Teachers Association Week (Proc. 6251)
Poison Prevention Week, National, 1992 (Proc. 6370)
School Breakfast Week (Proc. 6258)
School Lunch Week, National (Proc. 6339)
El Salvador:
Conditional release of military aid (Presidential Determination No.
91-15 of Jan. 15, p. 391)
Trade tariffs, Generalized System of Preferences (Memorandum of Apr.
25, p. 417)
Ellis Island Day, National, 1992 (Proc. 6398)
Emergency Medical Services Week, 1991 and 1992 (Proc. 6293)
Employment
See also Government agencies and employees
Disability Employment Awareness Month, National (Proc. 6350)
Hire a Veteran Week (Proc. 6373)
Minority Enterprise Development Week (Proc. 6329)
Older Worker Week, Employ the (Proc. 6260)
Rural America, President's Council on; extension (EO 12783)
Soviet nationals at U.S. diplomatic and consular missions in Soviet
Union, authorization (Presidential Determination No. 92-4 of Oct. 24, p.
439)
Verification system, national (EO 12781)
Energy Awareness Month (Proc. 6336)
Enterprise for the Americas Initiative, implementation (EO 12757)
Environment
Arbor Day, National (Proc. 6276)
Chemical and biological weapons; export control (Notice of Nov. 14,
p. 440)
Clean Water, Year and Month, 1992 (Proc. 6393)
Cook Inlet Regional Citizens Advisory Council; certification of
environmental stewardship (Certification of Aug. 6, p. 430)
Earth Day (Proc. 6274)
Enterprise for the Americas Initiative, implementation (EO 12757)
Environment and Conservation Challenge Awards, President's;
establishment (EO 12761)
Federal Energy Management (EO 12759)
Forest System Month, National (Proc. 6311)
Hungary; peaceful uses of nuclear energy (Presidential Determination
No. 91-29 of Apr. 16, p. 413)
Naval petroleum and oil shale reserves utilization (EO 12784)
Nuclear energy; agreement between U.S. and Poland on peaceful uses
of; Presidential approval (Presidential Determination No. 92-1 of Oct.
4, p. 435)
Oil Pollution Act of 1990; implementation (EO 12777)
Prince William Sound Regional Citizens Advisory Committee;
certification of environmental stewardship (Certification of Mar. 21, p.
410)
Radon Action Week, National (Proc. 6347)
Recycling; implementation of agency-wide program (EO 12780)
Water Pollution Control Act, Federal; implementation (EO 12777)
Estonia; nondiscriminatory tariff treatment (Proc. 6320)
Ethiopia:
Refugees in Israel; assistance (Presidential Determination No.
91-51 of Aug. 29, p. 432)
Availability of funds for refugees and migrants (Presidential
Determination Nos. 91-30 of Apr. 17, p. 414)
Ethnic groups
Asian/Pacific American Heritage Month, 1991 and 1992 (Proc. 6288)
Dutch-American Heritage Day (Proc. 6375)
Ellis Island Day, National, 1992 (Proc. 6398)
German-American Day, 1991 and 1992 (Proc. 6346)
Greek Independence Day: A National Day of Celebration of Greek and
American Democracy (Proc. 6264)
Hispanic Heritage Month, National (Proc. 6337)
Indian Heritage Month, National American (Proc. 6368)
Irish-American Heritage Month (Proc. 6259)
Jewish Heritage Week, 1991 and 1992 (Proc. 6272)
Lithuanian Independence Day (Proc. 6250)
Martin Luther King, Jr.; Federal Holiday (Proc. 6242)
Polish-American Heritage Month (Proc. 6353)
Polish Constitution of May 3, 1791, National Day To Commemorate the
200th Anniversary (Proc. 6286)
Europe
Citizens Democracy Corps, delegation of authority (Memorandum of Apr.
9, p. 412)
Nuclear cooperation with EURATOM (EO 12753)
Strength level of U.S. Armed forces, determination (Presidential
Determination No. 91-37 of May 29, p. 422)
European Bank for Reconstruction and Development (EO 12766)
European Space Agency (EO 12766)
Executive Exchange, President's Commission on (EO 12760)
Exports
See also specific commodity or country; Trade
Export control regulations; continuation (Notice of Sept. 26, p.
434)
Export controls; administration (EO 12755)
Export Council, President's; continuation (EO 12774)
03 CFR -- 102.171 -- 102999 F
Family
See also Children and youth
Family Caregivers Week, National, 1991 and 1992 (Proc. 6382)
Family Week, National, 1991 and 1992 (Proc. 6378)
Father's Day (Proc. 6302)
Military Families Recognition Day, National (Proc. 6379)
Mother's Day (Proc. 6279)
Sanctity of Human Life Day, National (Proc. 6241)
Sanctity of Human Life Day, National, 1992 (Proc. 6397)
Farabundo Marti Liberation Front (FMLN). See El Salvador
Farm Safety Week (Proc. 6270)
Farm-City Week, National (Proc. 6377)
Father's Day (Proc. 6302)
Federal Civilian Employees Remembrance Day (Proc. 6387)
Federal Employees Recognition Week (Proc. 6255)
Federal Energy Management (EO 12759)
Federal Salary Council (EO 12764)
Fire Prevention Week (Proc. 6338)
Firefighters Day, National (Proc. 6349)
Flag Day and National Flag Week (Proc. 6300)
Foreign assets control:
Haiti; blockage of government property (EOs 12775, 12779)
Iran; continuation of U.S. emergency (Notice of Nov. 12, p. 439)
Iraq; continuation of U.S. emergency (Notice of July 26, p. 428)
Libya; continuation of U.S. emergency (Notices of Jan. 2, p. 387;
Dec. 26, p. 444)
Foreign assistance
Africa; refugee assistance (Presidential Determination Nos. 91-12 of
Jan. 2, p. 388; 91-42 of June 21, p. 425; 91-45 of July 8, p. 427;
91-51 of Aug. 29, p. 432; 92-2 of Oct. 9, p. 436)
Africa; release of food security wheat reserve (Presidential
Determination No. 91-38 of May 31, p. 422)
Agricultural commodities, sales and donations to developing countries
(EO 12752)
Appropriations, temporary suspension of restrictions (Presidential
Determination No. 91-21 of Feb. 27, p. 396)
Asia; release of food security wheat reserve (Presidential
Determination No. 91-38 of May 31, p. 422)
Bangladesh, disaster assistance; drawdown from Department of Defense
stocks (Presidential Determination No. 91-35 of May 26, p. 420)
Burma; refugee assistance (Presidential Determination No. 91-34 of
Apr. 25, p. 417)
Burundi; refugee assistance and admissions (Presidential
Determination No. 91-12 of Jan. 2, p. 388)
Burundi; sale of defense articles and services (Presidential
Determination No. 91-50 of Aug. 24, p. 431)
Cambodia; humanitarian and development assistance, delegation of
authority (Memorandums of June 10, p. 424; Oct. 21, p. 438)
Congo; sale of defense articles and services (Presidential
Determination No. 91-49, p. 431)
Czech and Slovak Federal Republic; sale of defense articles and
services (Presidential Determination 92-6 of Dec. 6, p. 441)
Economic Community of West Africa; peacekeeping operations in
Liberia (Presidential Determination No. 91-14 of Jan. 7, p. 390)
El Salvador; conditional release of military aid (Presidential
Determination No. 91-15 of Jan. 15, p. 391)
Ethiopia; availability of funds for refugees and migrants
(Presidential Determination No. 91-30 of Apr. 17, p. 414)
Europe; Citizens Democracy Corps, delegation of authority
(Memorandum of Apr. 9, p. 412)
Hungary; sale of defense articles and services (Presidential
Determination No. 92-7 of Dec. 6, p. 442)
Indirect financing to certain countries (Presidential Determination
No. 92-10 of Dec. 30, p. 445)
Iran, disaster assistance; drawdown from Department of Defense
stocks (Presidential Determination No. 91-31 of Apr. 19, p. 415)
Iraq, disaster assistance; drawdown from Department of Defense
stocks (Presidential Determination No. 91-31 of Apr. 19, p. 415)
Israel;, emergency military sales (Presidential Determination No.
91-25 of Mar. 21, p. 410)
Israel; resettlement of Ethiopian Jews, assistance (Presidential
Determination No. 91-51 of Aug. 29, p. 432)
Jordan, refugee and defense assistance (Presidential Determination
Nos. 91-46 of July 13, p. 428; No. 91-53 of Sept. 16, p. 433)
Lebanon; refugee assistance (Presidential Determination No. 91-51 of
Aug. 29, p. 432)
Liberia; peacekeeping operations (Presidential Determination No.
91-14 of Jan. 7, p. 390)
Liberia; refugee assistance and admissions (Presidential
Determination No. 91-12 of Jan. 2, p. 388)
Malawi; availability of funds for refugees and migrants
(Presidential Determination No. 91-30 of Apr. 17, p. 414)
Middle East; humanitarian assistance (Presidential Determination
Nos. 91-33 of Apr. 22, p. 416; 91-38 of May 31, p. 422; 91-51 of Aug.
29, p. 432)
Middle East; refugee assistance and admissions (Presidential
Determination Nos. 91-12 of Jan. 2, p. 388; 91-24 of Mar. 11, p. 409;
91-26 of Apr. 6, p. 411; 91-27 of Apr. 6, p. 411; 91-33 of Apr. 22, p.
416; 91-51 of Aug. 29, p. 432)
Mongolia; availability of Export-Import Bank funds (Presidential
Determination No. 91-32 of Apr. 19, p. 416)
Niger; appropriation of funds (Presidential Determination No. 91-23
of Mar. 6, p. 409)
Pakistan, elections; certification of appropriations eligibility
(Memorandum of Mar. 4, p. 408)
Palestinians, emergency food distribution (Presidential Determination
No. 91-24 of Mar. 11, p. 409; No. 91-51 of Aug. 29, p. 432)
Poland; sale of defense articles and services (Presidential
Determination No. 92-8 of Dec. 6, p. 442)
Refugee Day (Proc. 6367)
Refugee assistance and admissions (Presidential Determination Nos.
91-12 of Jan. 2, p. 388; 91-24 of Mar. 11, p. 409; 91-26 of Apr. 6, p.
411; 91-27 of Apr. 6, p. 411; 91-30 of Apr. 17, p. 414; 91-33 of Apr.
22, p. 416; 91-34 of Apr. 25, p. 419; 91-42 of June 21, p. 425; 92-2
of Oct. 9, p. 436; 92-9 of Dec. 16, p. 443)
Saudi Arabia, emergency military sales (Presidential Determination
No. 91-25 of Mar. 21, p. 410)
Senegal; appropriation of funds (Presidential Determination No.
91-23 of Mar. 6, p. 409)
Senegal; furnishing of goods and services (Presidential
Determination No. 92-5 of Nov. 13, p. 440)
Somalia; availability of funds for refugees and migrants
(Presidential Determination No. 91-30 of Apr. 17, p. 414)
South Africa; availability of funds for refugees and migrants
(Presidential Determination No. 91-30 of Apr. 17, p. 414)
Sri Lanka; refugee assistance and admissions (Presidential
Determination No. 91-24 of Mar. 11, p. 409)
Sudan; refugee assistance and admissions (Presidential Determination
No. 91-12 of Jan. 2, p. 388)
Tibet; refugees qualifying for assistance (Presidential
Determination No. 91-34 of Apr. 25, p. 419)
Turkey; emergency military assistance (Presidential Determination
Nos. 91-16 of Jan. 16, p. 391 and 91-17 of Jan. 16, p. 392)
Yugoslavia; migration and refugee assistance (Presidential
Determination No. 92-9 of Dec. 16, p. 443)
Forest System Month, National (Proc. 6311)
Foster Care Month (Proc. 6297)
03 CFR -- 102.171 -- 102999 G
Generalized System of Preferences; amendments (Procs. 6244, 6245,
6282, 6307, 6308, 6309, 6320, 6343, 6352, 6388, 6389; Memorandum of
Apr. 25, p. 417)
Geography Awareness Week, 1991 and 1992 (Proc. 6384)
German-American Day, 1991 and 1992 (Proc. 6346)
Germany; most-favored-nation tariffs (Proc. 6343)
Gold Star Mother's Day (Proc. 6331)
Government agencies and employees
See also Employment and unemployment
Civil Justice reform (EO 12778)
Defense materials acquisition; delegation to Secretary of Defense
(EO 12773)
Diplomatic and consular missions in Soviet Union; employment of
Soviet nationals in nonsensitive areas (Presidential Determination No.
92-4 of Oct. 24, p. 439)
Education Policy Advisory Committee, President's; extension (EO
12785)
Executive Schedule, additions (EOs 12749, 12758)
Federal Civilian Employees Remembrance Day (Proc. 6387)
Federal Employees Recognition Week (Proc. 6255)
Federal Energy Management (EO 12759)
Federal Salary Council (EO 12764)
Inflation Adjustment Act of 1990, Reports Required by Sections 4 and
6 of the Federal Civil Penalties; delegation of authority (Memorandum
of May 3, p. 419)
Metric usage (EO 12770)
Pay administration (EO 12748)
Pay and allowances; rates (EO 12786)
Pollution control (Oil and water); authority delegation to Agency
heads (EO 12777)
Recycling; implementation of agency-wide program (EO 12780)
Secretary of Defense; authority succession (EO 12787)
Greek Independence Day: A National Day of Celebration of Greek and
American Democracy (Proc. 6264)
Guatemala; narcotics production and trafficking, cooperation with
U.S. (Presidential Determination No. 91-22 of Mar. 1, p. 396)
03 CFR -- 102.171 -- 102999 H
Haiti:
Blockage of government property (EOs 12775, 12779)
Harmonized Tariff Schedule; report on modifications, authority
delegation (Memorandum of Dec. 12, p. 443)
Trade tariffs, Generalized System of Preferences (Memorandum of Apr.
25, p. 417)
Handicapped
See Disabled persons
Harmonized Tariff Schedule of the U.S., amendments (Procs. 6244,
6245, 6282, 6301, 6307, 6308, 6309, 6310, 6313, 6320, 6343, 6352, 6388,
6389; Memorandum of Apr. 25, p. 417)
Proposed modifications, authority delegation to U.S. Trade
Representative to issue report (Memorandum of Dec. 12, p. 443)
Trade tariffs; Generalized System of Preferences (Proc. 6309)
Health and Safety
See also Aged, Children and youth, Education, Safety
Alzheimer's Disease Month, National, 1991 and 1992 (Proc. 6372)
Awareness Month for Children with Cancer (Proc. 6324)
Boating Week, Safe (Proc. 6266)
Breast Cancer Awareness Month, National (Proc. 6364)
Cancer Control Month (Proc. 6268)
Child Health Day (Proc. 6348)
Clean Water, Year and Month, 1992 (Proc. 6393)
Crime Prevention Month (Proc. 6359)
Desert Storm personnel, provision of medical services (EO 12751)
Doctors Day (Proc. 6253)
Drug Abuse Resistance Education Day, National (Proc. 6335)
Emergency Medical Services Week, 1991 and 1992 (Proc. 6293)
Export control regulations; continuation (Notice of Sept. 26, p.
434)
Family Caregivers Week, National, 1991 and 1992 (Proc. 6382)
Farm Safety Week (Proc. 6270)
Fire Prevention Week (Proc. 6338)
Firefighters Day, National (Proc. 6349)
Health care services for Desert Storm personnel (EO 12751)
Heart Month, American (Proc. 6247)
Home Care Week, National, 1991 and 1992 (Proc. 6385)
Hospice Month, National, 1991 and 1992' (Proc. 6369)
Huntington's Disease Awareness Month (Proc. 6295)
Infant Mortality Awareness Day (Proc. 6290)
Juvenile Arthritis Awareness Week, National (Proc. 6318)
Law Enforcement Memorial Dedication Day, National (Proc. 6357)
Law Enforcement Training Week, National, 1992 (Proc. 6396)
Lyme Disease Awareness Week (Proc. 6314)
Mental Illness Awareness Week (Proc. 6351)
Nurse Associations Week, Visiting (Proc. 6246)
Nutrition Monitoring Advisory Council (EO 12747)
Occupational Safety and Health, Federal Advisory Council on;
continuation (EO 12774)
Older Americans Month (Proc. 6284)
Organ and Tissue Donor Awareness Week, 1991 and 1992 (Proc. 6281)
Pediatric AIDS Awareness Week (Proc. 6305)
Physical Fitness and Sports Month (Proc. 6285)
Poison Prevention Week, National, 1992 (Proc. 6370)
Radon Action Week, National (Proc. 6347)
Rehabilitation Week, National (Proc. 6327)
Sarcoidosis Awareness Day, National (Proc. 6322)
Save Your Vision Week (Proc. 6249)
Scleroderma Awareness Week, National (Proc. 6303)
Trauma Awareness Month (Proc. 6277)
Weapons, chemical and biological; export control (Notice of Nov.
14, p. 440)
White Cane Safety Day (Proc. 6344)
Women and Girls in Sports Day (Proc. 6248)
Heart Month, American (Proc. 6247)
Helsinki Human Rights Day (Proc. 6319)
Hire a Veteran Week (Proc. 6373)
Hispanic Heritage Month, National (Proc. 6337)
Historically Black Colleges Week, National, 1991 and 1992 (Proc.
6332)
Home Care Week, National, 1991 and 1992 (Proc. 6385)
Hong Kong; narcotics production and trafficking, cooperation with
U.S. (Presidential Determination No. 91-22 of Mar. 1, p. 396)
Hospice Month, National, 1991 and 1992 (Proc. 6369)
Housing Month, National Accessible (Proc. 6381)
Human Rights Day, Bill of Rights Day, and Human Rights Week (Proc.
6390)
Hungary:
Peaceful uses of nuclear energy (Presidential Determination No.
91-29 of Apr. 16, p. 413)
Defense articles and services allocation (Presidential Determination
No. 92-7 of Dec. 6, p. 442)
Huntington's Disease Awareness Month (Proc. 6295)
03 CFR -- 102.171 -- 102999 I
Immigration. See Refugee assistance
Imports. See specific country or commodity; Trade
Independence Day (Proc. 6304)
India; narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Indian Heritage Month, National American (Proc. 6368)
Indians, American; culture and arts development, delegation of
authority (Memorandum of Feb. 22, p. 395)
Industry. See Business and industry
Infant Mortality Awareness Day (Proc. 6290)
Iran
Disaster assistance; drawdown from Department of Defense stocks
(Presidential Determination No. 91-31 of Apr. 19, p. 415)
Emergency status, continuation (Notice of Nov. 12, p. 439)
Narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Iraq
See also Persian Gulf conflict
Disaster assistance; drawdown from Department of Defense stocks
(Presidential Determination No. 91-31 of Apr. 19, p. 415)
Emergency status; continuation (Notice of July 26, p. 428)
Persian Gulf War criminals, proposed prosecution before international
tribunal; authority delegation to issue report to Congress (Memorandum
of Nov. 26, p. 441)
Irish-American Heritage Month (Proc. 6259)
Israel:
Duty reductions (Proc. 6343)
Emergency military sales (Presidential Determination No. 91-25 of
Mar. 21, p. 410)
Resettlement of Ethiopian Jews; assistance (Presidential
Determination No. 91-51 of Aug. 29, p. 432)
Trade tariffs, Generalized System of Preferences (Memorandum of Apr.
25, p. 417)
03 CFR -- 102.171 -- 102999 J
Jamaica; narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Japan; strength level of U.S. Armed Forces, waiver (Memorandum of
May 14, p. 420)
Jewish Heritage Week, 1991 and 1992 (Proc. 6272)
Jordan:
Refugee assistance (Presidential Determination No. 91-46 of July 13,
p. 428)
Sale of defense articles and services (Presidential Determination No.
91-53 of Sept. 16, p. 433)
Juvenile Arthritis Awareness Week, National (Proc. 6318)
03 CFR -- 102.171 -- 102999 K
King, Martin Luther, Jr.; Federal Holiday (Proc. 6242)
Khmer Rouge, possible non-communist resistance cooperation;
delegation of authority (Memorandum of Feb. 21 p. 395)
Korea, North; transactions prohibition (Presidential Determination
No. 91-52 of Sept. 13, p. 432)
Korean War Veterans Remembrance Week (Proc. 6316)
Kuwait. See also Persian Gulf conflict
Release of government property and resumption of transactions with
U.S. (EO 12771)
03 CFR -- 102.171 -- 102999 L
Labor Organization, International, President's Commission on;
continuation (EO 12774)
Laos
Narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Refugee admissions (Presidential Determination No. 92-2, p. 436)
Latin America
Implementation of the Enterprise for the Americas Initiative (EO
12757)
Pan American Day and Pan American Week (Proc. 6271)
Refugee admissions (Presidential Determination No. 92-2, p. 436)
Latvia; nondiscriminatory tariff treatment (Proc. 6320)
Law enforcement and crime
Campus Crime and Security Awareness Week, National (Proc. 6326)
Civil Justice reform (EO 12778)
Crime Prevention Month (Proc. 6359)
Crime Victims' Rights Week (Proc. 6275)
Drug Abuse Resistance Education Day, National (Proc. 6335)
Human Rights Day, Bill of Rights Day, and Human Rights Week (Proc.
6390)
Law Day, U.S.A. (Proc. 6283)
Law Enforcement Training Week, National, 1992 (Proc. 6396)
Law Enforcement Memorial Dedication Day, National (Proc. 6357)
Red Ribbon Month, National (Proc. 6374)
Red Ribbon Week for a Drug-Free America, National (Proc. 6365)
Lebanon:
Narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Refugee assistance (Presidential Determination No. 91-51 of Aug. 29,
p. 432)
Liberia
Peacekeeping operations; allocation of funds (Presidential
Determination No. 91-14 of Jan. 7, p. 390)
Refugee assistance and admissions (Presidential Determination No.
91-12 of Jan. 2, p. 388)
Libya; continuation of U.S. emergency (Notices of Jan. 2, p. 387;
Dec. 26, p. 444)
Literacy Day, National (Proc. 6312)
Lithuania:
Lithuanian Independence Day (Proc. 6250)
Nondiscriminatory tariff treatment (Proc. 6320)
Loyalty Day (Proc. 6278)
Lyme Disease Awareness Week (Proc. 6314)
03 CFR -- 102.171 -- 102999 M
Malawi; availability of funds for refugees and migrants
(Presidential Determination No. 91-30 of Apr. 17, p. 414)
Malaysia:
Narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Trade tariffs, Generalized System of Preferences (Memorandum of Apr.
25, p. 417)
Maritime Day (Proc. 6294)
Medals
Defense Service Medal, National; availability to reservists in
Persian Gulf War (EO 12776)
Medal of Honor Day (Proc. 6263)
Southwest Asia Service Medal; establishment (12754)
Memorial Day (Proc. 6292)
Mental Illness Awareness Week (Proc. 6351)
Mental Retardation, President's Commission on; continuation (EO
12774)
Metric usage in Federal Government programs (EO 12770)
Mexico
Narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Trade tariffs; Generalized System of Preferences (Proc. 6309)
Middle East
See also specific country; Persian Gulf conflict
Arms transfers and military balance report; authority delegation
(Memorandum of Dec. 27, p. 444)
Defense articles, services, and exports moratorium (Memorandum of
Dec. 27, p. 444)
Indirect financing to certain countries (Presidential Determination
No. 92-10 of Dec. 30, p. 445)
Refugee assistance and admissions (Presidential Determination Nos.
91-12 of Jan. 2, p. 388; 91-24 of Mar. 11, p. 409; 91-26 of Apr. 6, p.
411; 91-27 of Apr. 6, p. 411; 91-33 of Apr. 22, p. 416; 91-51 of Aug.
29, p. 432)
Release of food security wheat reserve (Presidential Determination
No. 91-38 of May 31, p. 422)
Military assistance. See specific country; Defense Department,
Foreign assistance
Military Families Recognition Day, National (Proc. 6379)
Minority Enterprise Development Week (Proc. 6329)
Missile technology proliferation; delegation of authority
(Memorandum of June 25, p. 426)
Mongolia; trade (Proc. 6308; EO 12746; Presidential Determination
Nos. 91-19 of Jan. 23, p. 393; 91-32 of Apr. 19, p. 416; 91-39 of
June 3, p. 423; 91-44 of June 24, p. 426)
Month. See specific observance
Morocco; narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Mother's Day (Proc. 6279)
03 CFR -- 102.171 -- 102999 N
Namibia
Certification on compliance with Namibia/Angola accords (Presidential
Determination No. 91-13 of Jan. 7, p. 389)
Trade tariffs; Generalized System of Preferences (Proc. 6245)
Narcotics. See Drug abuse
National. See other part of title
Native Americans. See Indians, American
Nepal; trade tariffs, Generalized System of Preferences (Memorandum
of Apr. 25, p. 417)
Nezperce National Forest; title correction to Nez Perce National
Forest (EO 12781)
Niger; appropriation of funds (Presidential Determination No. 91-23
of Mar. 6, p. 409)
Nigeria; narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Nuclear accidents, Catastrophic, President's Commission on;
revocation (EO 12774)
Nuclear cooperation with EURATOM (EO 12753)
Nuclear energy
Czech and Slovak Federal Republic (Presidential Determination No.
91-28 of Apr. 16, p. 413)
Hungary (Presidential Determination No. 91-29 of Apr. 16, p. 413)
Nuclear accidents, Catastrophic, President's Commission on;
revocation (EO 12774)
Poland, agreement with U.S. on peaceful uses of (Presidential
Determination No. 92-1 of Oct. 4, p. 435)
Nurse Associations Week, Visiting (Proc. 6246)
Nutrition Monitoring Advisory Council (EO 12747)
03 CFR -- 102.171 -- 102999 O
Ocean Shipping, Advisory Commission on Conferences in; operation
facilitation (EO 12763)
Occupational Safety and Health, President's Advisory Council on;
continuation (EO 12774)
Oil pollution:
Cook Inlet, AK, oil pollution safeguards; solvency certification
(Certification of Aug. 6, p. 430)
Prince William Sound, AK, oil pollution safeguards; solvency
certification (Certification of Mar. 21, p. 410)
Oil Pollution Act of 1990; implementation (EO 12777)
Oil shale reserves utilization; authority delegation to Secretary of
Energy (EO 12784)
Older Americans Month (Proc. 6284)
Older Worker Week, Employ the (Proc. 6260)
Omnibus Budget Reconciliation Act of 1990; certification of printed
enrollment (Memorandum of Jan. 10, p. 390)
Organ and Tissue Donor Awareness Week, 1991 and 1992 (Proc. 6281)
03 CFR -- 102.171 -- 102999 P
Pakistan
Elections, certification of free and fair (Memorandum of Mar. 4, p.
408)
Narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Palestinians, refugee assistance and admissions (Presidential
Determination Nos. 91-24 of Mar. 11, p. 409; 91-51 of Aug. 29, p. 432)
Pan American Day and Pan American Week (Proc. 6271)
Panama; narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Paraguay
Narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Trade tariffs; Generalized System of Preferences (Proc. 6245)
Parents and Teachers Association Week (Proc. 6251)
Park Week, National (Proc. 6325)
Peace Corps, commemoration of the 30th anniversary (Proc. 6254)
Peanuts; import quota, temporary modification (Proc. 6313)
Pearl Harbor Remembrance Day, National (Proc. 6386)
Pediatric AIDS Awareness Week (Proc. 6305)
Persian Gulf conflict
See also specific country
Armed Forces, Ready Reserve; order to active duty (EO 12743)
Combat zone and Persian Gulf Desert Shield area, designation of
Arabian Peninsula areas, airspace, and adjacent waters (EOs 12744,
12750)
Defense Service Medal, National; availability to reservists in
Persian Gulf War (EO 12776)
Desert Storm Reservists Day (Proc. 6298)
Health care services for Desert Storm personnel (EO 12751)
Hire a Veteran Week (Proc. 6373)
Industrial responsiveness, national security (EO 12742)
Persian Gulf War criminals; proposed prosecution before
international tribunal; authority delegation to issue report to
Congress (Memorandum of Nov. 26, p. 441)
Refugee assistance and admissions (Presidential Determination Nos.
91-12 of Jan. 2, p. 388; 91-26 of Apr. 6, p. 411; 91-27 of Apr. 6, p.
411; 91-31 of Apr. 19, p. 415))
Southwest Asia Service Medal, establishment (EO 12754)
Thanksgiving, Days of, April 5-7 (Proc. 6257)
Persian Gulf region:
Arms transfers and military balance report; authority delegation
(Memorandum of Dec. 27, p. 444)
Defense articles, services, and exports moratorium (Memorandum of
Dec. 27, p. 444)
Peru
Narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Trade tariffs; Generalized System of Preferences (Proc. 6309;
Memorandum of Apr. 25, p. 417)
Petroleum reserves utilization; authority delegation to Secretary of
Energy (EO 12784)
Philanthropy Day, National (Proc. 6376)
Physical Fitness and Sports, President's Council on; continuation
(EO 12774)
Physical Fitness and Sports Month (Proc. 6285)
Points of Light National Celebration of Community Service (Proc.
6269)
Poison Prevention Week, National, 1992 (Proc. 6370)
Poland
Agreement with U.S. on peaceful uses of nuclear energy (Presidential
Determination No. 92-1 of Oct. 4, p. 435)
Defense articles and services allocation (Presidential Determination
No. 92-8 of Dec. 6, p. 442)
Polish-American Heritage Month (Proc. 6353)
Polish Constitution of May 3, 1791, National Day To Commemorate the
200th Anniversary (Proc. 6286)
Trade tariffs, Generalized System of Preferences (Memorandum of Apr.
25, p. 417)
Portugal; Commemoration of the Bicentennial of U.S.-Portugal
Relations (Proc. 6252)
POW/MIA Recognition Day, National (Proc. 6334)
Prayer, Day of, February 3 (Proc. 6243)
Prayer, Day of, May 2 (Proc. 6280)
Prayer for Peace, Memorial Day (Proc. 6292)
President's, Presidential. See other part of title
Prince William Sound Regional Citizens Advisory Committee
(Certification of Mar. 21, p. 410)
Prisoner of War Recognition Day, Former (Proc. 6267)
Puerto Rico; duty-free treatment for certain articles (Proc. 6343)
Pulaski Memorial Day, General (Proc. 6333)
03 CFR -- 102.171 -- 102999 Q
Quarters, Amendment Relating to Basic Allowance for (EO 12762)
03 CFR -- 102.171 -- 102999 R
Radon Action Week, National (Proc. 6347)
Recreation and sports
Basketball Centennial Day (Proc. 6395)
Boating Week, Safe (Proc. 6266)
Community Center Month (Proc. 6363)
Country Music Month (Proc. 6358)
Park Week, National (Proc. 6325)
Physical Fitness and Sports Month (Proc. 6285)
Tourism Week (Proc. 6287)
Women and Girls in Sports Day (Proc. 6248)
Recycling; implementation of agency-wide program (EO 12780)
Red Ribbon Month, National (Proc. 6374)
Refugee assistance and admissions (Presidential Determination Nos.
91-12 of Jan. 2, p. 388; 91-24 of Mar. 11, p. 409; 91-26 of Apr. 6, p.
411; 91-27 of Apr. 6, p. 411; 91-30 of Apr. 17, p. 414; 91-33 of Apr.
22, p. 416; 91-34 of Apr. 25, p. 419; 91-42 of June 21, p. 425; 91-45
of July 8, p. 427; No. 92-2 of Oct. 9, p. 436)
Refugee Day (Proc. 6367)
Rehabilitation Week, National (Proc. 6327)
Religion
Day of Prayer, February 3 (Proc. 6243)
Day of Prayer, May 2 (Proc. 6280)
Days of Thanksgiving, April 5-7 (Proc. 6257)
Thanksgiving Day (Proc. 6380)
Rice Month, National (Proc. 6323)
Romania, trade with U.S. (EO 12772; Presidential Determination No.
91-48, p. 430)
Rwanda; refugee assistance and admissions (Presidential
Determination No. 91-12 of Jan. 2, p. 388)
Rural America, President's Council on; extension (EO 12783)
03 CFR -- 102.171 -- 102999 S
Salary Council, Federal (EO 12764)
Salary schedule, Federal; rates (EO 12786)
Sanctity of Human Life Day (Proc. 6241)
Sanctity of Human Life Day, National, 1992 (Proc. 6397)
Sarcoidosis Awareness Day, National (Proc. 6322)
Saudi Arabia
See also Persian Gulf conflict
Emergency military sales (Presidential Determination No. 91-25 of
Mar. 21, p. 410)
Save Your Vision Week (Proc. 6249)
School Breakfast Week (Proc. 6258)
School Lunch Week, National (Proc. 6339)
Science and technology
See also Health and safety
Export controls; continuation (Notice of Sept. 26, p. 434)
Missile technology proliferation; delegation of authority
(Memorandum of June 25, p. 426)
Science, National Medal of, President's Committee on (National
Science Foundation); continuation (EO 12774)
Science and Technology, President's Council of Advisors on;
extension (EO 12768)
Scleroderma Awareness Week, National (Proc. 6303)
Security Telecommunications Advisory Committee, President's National;
continuation (EO 12774)
Senegal
Appropriation of funds (Presidential Determination No. 91-23 of Mar.
6, p. 409)
Goods and services provisions (Presidential Determination 92-5 of
Nov. 13, p. 440)
Senior Citizens Day, National (Proc. 6321)
Small Business Week (Proc. 6289)
Somalia; availability of funds for refugees and migrants
(Presidential Determination No. 91-30 of Apr. 17, p. 414)
South Africa
Availability of funds for refugees and migrants (Presidential
Determination No. 91-30 of Apr. 17, p. 414)
Certification on compliance with Namibia/Angola accords (Presidential
Determination No. 91-13 of Jan. 7, p. 389)
Termination of sanctions (EO 12769)
South West Africa People's Organization (SWAPO). See Namibia
Southwest Asia Service Medal; establishment (EO 12754)
Soviet Union
Employment of nationals at U.S. diplomatic and consular missions
(Presidential Determination No. 92-4 of Oct. 24, p. 439)
Refugee admissions (Presidential Determination No. 92-2, p. 436)
Sports. See Recreation and sports
Sri Lanka; refugee assistance and admissions (Presidential
Determination No. 91-24 of Mar. 11, p. 409)
Steel industry modernization certification (Memorandum of Oct. 1, p.
434)
Sudan:
Refugee assistance and admissions (Presidential Determination No.
91-12 of Jan. 2, p. 388)
Trade tariffs, Generalized System of Preferences (Proc. 6282;
Memorandum of Apr. 25, p. 417)
Sugars, syrups, and molasses; modification of tariff-rate quota
(Proc. 6301)
Superconductivity, National Commission on; revocation (EO 12774)
Syria:
Narcotics production and trafficking, cooperation with U.S.
(Presidential Determination No. 91-22 of Mar. 1, p. 396)
Trade tariffs, Generalized System of Preferences (Memorandum of Apr.
25, p. 417)
03 CFR -- 102.171 -- 102999 T
Tariff Schedules of the U.S. See Trade
Taxation, exemptions for Persian Gulf Desert Shield area personnel
(EOs 12744, 12750)
Thailand; narcotics production and trafficking, cooperation with
U.S. (Presidential Determination No. 91-22 of Mar. 1, p. 396)
Thanksgiving, Days of, April 5-7 (Proc. 6257)
Thanksgiving Day (Proc. 6380)
Thanksgiving for the Blessings of Liberty, Year of (Proc. 6394)
Tibet; refugees qualifying for assistance (Presidential
Determination No. 91-34 of Apr. 25, p. 419)
Tourism Week (Proc. 6287)
Trade
See also Business and industry
Bangladesh, trade tariffs; Generalized System of Preferences
(Memorandum of Apr. 25, p. 417)
Benin, trade tariffs; Generalized System of Preferences (Memorandum
of Apr. 25, p. 417)
Bulgaria; designation as a beneficiary developing country for
purposes of the GSP (Proc. 6388)
Bulgaria; trade (Proc. 6307; EO 12745; Presidential Determination
Nos. 91-18 of Jan. 22, p. 392; 91-39 of June 3, p. 423; 91-40 of June
5, p. 423; 91-43 of June 24, p. 425)
Canada; Free-Trade Agreement Implementation Act with the U.S.;
delegation of authority (Memorandum of Feb. 11, p. 394)
Canada, trade tariffs; Generalized System of Preferences and
Harmonized Tariff Schedule (Procs. 6282, 6309, 6310, 6343)
Central African Republic, trade tariffs; Generalized System of
Preferences (Proc. 6245)
Chile, trade tariffs; Generalized System of Preferences (Proc.
6244)
China; renewal of most-favored-nation trade status (Presidential
Determination No. 91-36 of May 29, p. 421)
Cotton, upland; special import quotas (Proc. 6301)
Czech and Slovak Federal Republic, trade (Proc. 6282; Presidential
Determination No. 91-39 of June 3, p. 423; Presidential Determination
No. 92-3 of Oct. 16, p. 438)
Defense Transportation Day and Transportation Week (Proc. 6296)
Dominican Republic, trade tariffs; Generalized System of Preferences
(Memorandum of Apr. 25, p. 417)
El Salvador, trade tariffs; Generalized System of Preferences
(Memorandum of Apr. 25, p. 417)
Estonia; nondiscriminatory tariff treatment (Proc. 6320)
Export control regulations; continuation (Notice of Sept. 26, p.
434)
Export controls, administration (EO 12755)
Haiti, blockage of government property (EOs 12775, 12779)
Haiti, trade tariffs; Generalized System of Preferences (Memorandum
of Apr. 25, p. 417)
Harmonized Tariff Schedule; report on modifications, authority
delegation to U.S. Trade Representative (Memorandum of Dec. 12, p. 443)
Israel, trade tariffs; Generalized System of Preferences (Proc.
6282)
Latvia; nondiscriminatory tariff treatment (Proc. 6320)
Lithuania; nondiscriminatory tariff treatment (Proc. 6320)
Malaysia, trade tariffs; Generalized System of Preferences
(Memorandum of Apr. 25, p. 417)
Maritime Day (Proc. 6294)
Mexico; trade tariffs, Generalized System of Preferences (Proc.
6309)
Mongolia; trade (Proc. 6308; EO 12746; Presidential Determination
Nos. 91-19 of Jan. 23, p. 393; 91-39 of June 3, p. 423; 91-44 of June
24, p. 426)
Namibia; trade tariffs, Generalized System of Preferences (Proc.
6245)
Nepal, trade tariffs; Generalized System of Preferences (Memorandum
of Apr. 25, p. 417)
Paraguay, trade tariffs; Generalized System of Preferences (Proc.
6245)
Peanuts; import quota, temporary modification (Proc. 6313)
Peru, trade tariffs; Generalized System of Preferences (Proc. 6309;
Memorandum of Apr. 25, p. 417)
Poland, trade tariffs; Generalized System of Preferences (Memorandum
of Apr. 25, p. 417)
Romania; trade (EO 12772; Presidential Determination No. 91-48, p.
430)
Sudan, trade tariffs; Generalized System of Preferences (Proc.
6282; Memorandum of Apr. 25, p. 417)
Sugars, syrups, and molasses; modification of tariff-rate quota
(Proc. 6301)
Syria, trade tariffs; Generalized System of Preferences (Memorandum
of Apr. 25, p. 417)
Union of Soviet Socialist Republics; trade (Procs. 6320, 6352;
Presidential Determination Nos. 91-39 of June 3, p. 423; 91-47 of Aug.
2, p. 429)
World Trade Week (Proc. 6291)
Yugoslavia, suspension of duty-free treatment under the GSP (Proc.
6389)
Yugoslavia, trade tariffs; Generalized System of Preferences
(Memorandum of Apr. 25, p. 417)
Transportation
Defense Transportation Day and Transportation Week (Proc. 6296)
Maritime Day, National (Proc. 6294)
Ocean Shipping, Advisory Commission on Conferences in; operation
facilitation (EO 12763)
Red Ribbon Month, National (Proc. 6374)
Wright Brothers Day (Proc. 6391)
Trauma Awareness Month (Proc. 6277)
Turkey; emergency military assistance (Presidential Determination
Nos. 91-16 of Jan. 16, p. 391 and 91-17 of Jan. 16, p. 392)
03 CFR -- 102.171 -- 102999 U
Union of Soviet Socialist Republics; trade (Procs. 6320, 6352;
Presidential Determination Nos. 91-39 of June 3, p. 423; 91-47 of Aug.
2, p. 429)
United Nations
Namibia/Angola accords; certification on compliance (Presidential
Determination No. 91-13 of Jan. 7, p. 389)
Refugee assistance and admissions (Presidential Determination Nos.
91-12 of Jan. 2, p. 388; 91-24 of Mar. 11, p. 409)
United Nations Day (Proc. 6362)
United States. See other part of title
03 CFR -- 102.171 -- 102999 V
Vermont Bicentennial Day (Proc. 6256)
Veterans
Defense Service Medal, National; availability to reservists in
Persian Gulf War (EO 12776)
Gold Star Mother's Day (Proc. 6331)
Hire a Veteran Week (Proc. 6373)
Health care services for Desert Storm personnel (EO 12751)
Korean War Veterans Remembrance Week (Proc. 6316)
Medal of Honor Day (Proc. 6263)
Memorial Day (Proc. 6292)
Military Families Recognition Day, National (Proc. 6379)
Pearl Harbor Remembrance Day, National (Proc. 6386)
POW/MIA Recognition Day, National (Proc. 6334)
Prisoner of War Recognition Day, Former (Proc. 6267)
Southwest Asia Service Medal; establishment (EO 12754)
Veterans Day (Proc. 6345)
Women Veterans Recognition Week, National (Proc. 6371)
World War II, Week for the National Observance of the 50th
Anniversary of (Proc. 6299)
Vietnam:
Refugee admissions (Presidential Determination 92-2 of Oct. 9, p.
436)
Transactions prohibition (Presidential Determination No. 91-52 of
Sept. 15, p. 432)
Vietnam, North; transactions prohibition (Presidential Determination
No. 91-52 of Sept. 15, p. 432)
Voluntarism
Heart Month, American (Proc. 6247)
Nurse Associations Week, Visiting (Proc. 6246)
Peace Corps, commemoration of the 30th anniversary (Proc. 6254)
Philanthropy Day, National (Proc. 6376)
Points of Light National Celebration of Community Service (Proc.
6269)
Volunteer Action Award, President's (EO 12782)
03 CFR -- 102.171 -- 102999 W
Water
Clean Water, Year and Month, 1992 (Proc. 6393)
Water Pollution Control Act, Federal; implementation (EO 12777)
Weapons, chemical and biological; export control (Notice of Nov.
14, p. 440)
Week. See specific observance
Western Sahara; refugee assistance (Presidential Determination No.
91-45 of July 8, p. 427)
Wheat reserve release; food assistance to Middle East, Africa, and
Asia (Presidential Determination No. 91-38 of May 31, p. 422)
White Cane Safety Day (Proc. 6344)
White House Fellowships, President's Commission on, continuation (EO
12774)
White House preservation committee; continuation (EO 12774)
Women
Breast Cancer Awareness Month, National (Proc. 6364)
Women and Girls in Sports Day (Proc. 6248)
Women Veterans Recognition Week, National (Proc. 6371)
Women's Equality Day (Proc. 6317)
Women's History Month (Proc. 6265)
Worker rights in foreign countries (Procs. 6244, 6245, 6282;
Memorandum of Apr. 25, p. 417)
World Food Day, 1991 and 1992 (Proc. 6356)
World Population Awareness Week (Proc. 6366)
World Trade Week (Proc. 6291)
World War II, Week for the National Observance of the 50th
Anniversary of (Proc. 6299)
Wright Brothers Day (Proc. 6391)
03 CFR -- 102.171 -- 102999 Y
Year. See specific observance.
Youth. See Children and youth
Yugoslavia:
Refugee and migration assistance (Presidential Determination 92-9 of
Dec. 16, p. 443)
Suspension of duty-free treatment under the GSP (Proc. 6389)
Trade tariffs, Generalized System of Preferences (Memorandum of Apr.
25, p. 417)
03 CFR -- 102.171 -- 102999 CFR Finding Aids
Editorial note: A list of CFR titles, subtitles, chapters,
subchapters, and parts, and an alphabetical list of agencies publishing
in the CFR are included in the CFR Index and Finding Aids volume to the
Code of Federal Regulations, which is published separately and revised
annually as of January 1.
The two finding aids on the following pages, the ''Table of CFR
Titles and Chapters'' and the ''Alphabetical List of Agencies Appearing
in the CFR'' apply to all 50 titles of the Code of Federal Regulations.
Reference aids specific to this volume appear in the section entitled
''Title 3 Finding Aids,'' found on page 471.
Chap.
03 CFR -- 102.171 -- 102999 Table of CFR Titles and Chapters
03 CFR -- 102.171 -- 102999 Title 1 -- General Provisions
I Administrative Committee of the Federal Register (Parts 1 -- 49)
II Office of the Federal Register (Parts 50 -- 299)
III Administrative Conference of the United States (Parts 300 -- 399)
IV Miscellaneous Agencies (Parts 400 -- 500)
03 CFR -- 102.171 -- 102999 Title 2 -- (Reserved)
03 CFR -- 102.171 -- 102999 Title 3 -- The President
I Executive Office of the President (Parts 100 -- 199)
03 CFR -- 102.171 -- 102999 Title 4 -- Accounts
I General Accounting Office (Parts 1 -- 99)
II Federal Claims Collection Standards (General Accounting Office --
Department of Justice) (Parts 100 -- 299)
III General Accounting Office (CASB) (Parts 300 -- 499)
03 CFR -- 102.171 -- 102999 Title 5 -- Administrative Personnel
I Office of Personnel Management (Parts 1 -- 1199)
II Merit Systems Protection Board (Parts 1200 -- 1299)
III Office of Management and Budget (Parts 1300 -- 1399)
IV Advisory Committee on Federal Pay (Parts 1400 -- 1499)
V The International Organizations Employees Loyalty Board (Parts 1500
-- 1599)
VI Federal Retirement Thrift Investment Board (Parts 1600 -- 1699)
VII Advisory Commission on Intergovernmental Relations (Parts 1700 --
1799)
VIII Office of Special Council (Parts 1800 -- 1899)
IX Appalachian Regional Commission (Parts 1900 -- 1999)
XI United States Soldiers' and Airmen's Home (Parts 2100 -- 2199)
XIV Federal Labor Relations Authority, General Counsel of the Federal
Labor Relations Authority and Federal Service Impasses Panel (Parts 2400
-- 2499)
XV Office of Administration, Executive Office of the President (Parts
2500 -- 2599)
XVI Office of Government Ethics (Parts 2600 -- 2699)
03 CFR -- 102.171 -- 102999 Title 6 -- (Reserved)
03 CFR -- 102.171 -- 102999 Title 7 -- Agriculture
Subtitle A -- Office of the Secretary of Agriculture (Parts 0 -- 26)
Subtitle B -- Regulations of the Department of Agriculture
I Agricultural Marketing Service (Standards, Inspections, Marketing
Practices), Department of Agriculture (Parts 27 -- 209)
II Food and Nutrition Service, Department of Agriculture (Parts 210
-- 299)
III Animal and Plant Health Inspection Service, Department of
Agriculture (Parts 300 -- 399)
IV Federal Crop Insurance Corporation, Department of Agriculture
(Parts 400 -- 499)
V Agricultural Research Service, Department of Agriculture (Parts 500
-- 599)
VI Soil Conservation Service, Department of Agriculture (Parts 600 --
699)
VII Agricultural Stabilization and Conservation Service (Agricultural
Adjustment), Department of Agriculture (Parts 700 -- 799)
VIII Federal Grain Inspection Service, Department of Agriculture
(Parts 800 -- 899)
IX Agricultural Marketing Service (Marketing Agreements and Orders;
Fruits, Vegetables, Nuts), Department of Agriculture (Parts 900 -- 999)
X Agricultural Marketing Service (Marketing Agreements and Orders;
Milk), Department of Agriculture (Parts 1000 -- 1199)
XI Agricultural Marketing Service (Marketing Agreements and Orders;
Miscellaneous Commodities), Department of Agriculture (Parts 1200 --
1299)
XIV Commodity Credit Corporation, Department of Agriculture (Parts
1400 -- 1499)
XV Foreign Agricultural Service, Department of Agriculture (Parts
1500 -- 1599)
XVI Rural Telephone Bank, Department of Agriculture (Parts 1600 --
1699)
XVII Rural Electrification Administration, Department of Agriculture
(Parts 1700 -- 1799)
XVIII Farmers Home Administration, Department of Agriculture (Parts
1800 -- 2099)
XXI Foreign Economic Development Service, Department of Agriculture
(Parts 2100 -- 2199)
XXII Office of International Cooperation and Development, Department
of Agriculture (Parts 2200 -- 2299)
XXV Office of the General Sales Manager, Department of Agriculture
(Parts 2500 -- 2599)
XXVI Office of Inspector General, Department of Agriculture (Parts
2600 -- 2699)
XXVII Office of Information Resources Management, Department of
Agriculture (Parts 2700 -- 2799)
XXVIII Office of Operations, Department of Agriculture (Parts 2800 --
2899)
XXIX Office of Energy, Department of Agriculture (Parts 2900 -- 2999)
XXX Office of Finance and Management, Department of Agriculture
(Parts 3000 -- 3099)
XXXI Office of Environmental Quality, Department of Agriculture
(Parts 3100 -- 3199)
XXXII Office of Grants and Program Systems, Department of Agriculture
(Parts 3200 -- 3299)
XXXIII Office of Transportation, Department of Agriculture (Parts
3300 -- 3399)
XXXIV Cooperative State Research Service, Department of Agriculture
(Parts 3400 -- 3499)
XXXVI National Agricultural Statistics Service, Department of
Agriculture (Parts 3600 -- 3699)
XXXVII Economic Research Service, Department of Agriculture (Parts
3700 -- 3799)
XXXVIII World Agricultural Outlook Board, Department of Agriculture
(Parts 3800 -- 3899)
XXXIX Economic Analysis Staff, Department of Agriculture (Parts 3900
-- 3999)
XL Economics Management Staff, Department of Agriculture (Parts 4000
-- 4099)
XLI National Agricultural Library, Department of Agriculture (Part
4100)
03 CFR -- 102.171 -- 102999 Title 8 -- Aliens and Nationality
I Immigration and Naturalization Service, Department of Justice
(Parts 1 -- 499)
03 CFR -- 102.171 -- 102999 Title 9 -- Animals and Animal Products
I Animal and Plant Health Inspection Service, Department of
Agriculture (Parts 1 -- 199)
II Packers and Stockyards Administration, Department of Agriculture
(Parts 200 -- 299)
III Food Safety and Inspection Service, Meat and Poultry Inspection,
Department of Agriculture (Parts 300 -- 399)
03 CFR -- 102.171 -- 102999 Title 10 -- Energy
I Nuclear Regulatory Commission (Parts 0 -- 199)
II Department of Energy (Parts 200 -- 699)
III Department of Energy (Parts 700 -- 999)
X Department of Energy (General Provisions) (Parts 1000 -- 1099)
XV Office of the Federal Inspector for the Alaska Natural Gas
Transportation System (Parts 1500 -- 1599)
XVII Defense Nuclear Facilities Safety Board (Parts 1700 -- 1799)
03 CFR -- 102.171 -- 102999 Title 11 -- Federal Elections
I Federal Election Commission (Parts 1 -- 9099)
03 CFR -- 102.171 -- 102999 Title 12 -- Banks and Banking
I Comptroller of the Currency, Department of the Treasury (Parts 1 --
199)
II Federal Reserve System (Parts 200 -- 299)
III Federal Deposit Insurance Corporation (Parts 300 -- 399)
IV Export-Import Bank of the United States (Parts 400 -- 499)
V Office of Thrift Supervision, Department of The Treasury (Parts 500
-- 599)
VI Farm Credit Administration (Parts 600 -- 699)
VII National Credit Union Administration (Parts 700 -- 799)
VIII Federal Financing Bank (Parts 800 -- 899)
IX Federal Housing Finance Board (Parts 900 -- 999)
XI Federal Financial Institutions Examination Council (Parts 1100 --
1199)
XIII Farm Credit System Assistance Board (Parts 1300 -- 1399)
XIV Farm Credit System Insurance Corporation (Parts 1400 -- 1499)
XV Oversight Board (Parts 1500 -- 1599)
XVI Resolution Trust Corporation (Parts 1600 -- 1699)
03 CFR -- 102.171 -- 102999 Title 13 -- Business Credit and Assistance
I Small Business Administration (Parts 1 -- 199)
III Economic Development Administration, Department of Commerce
(Parts 300 -- 399)
03 CFR -- 102.171 -- 102999 Title 14 -- Aeronautics and Space
I Federal Aviation Administration, Department of Transportation
(Parts 1 -- 199)
II Office of the Secretary, Department of Transportation (Aviation
Proceedings) (Parts 200 -- 399)
III Office of Commercial Space Transportation, Department of
Transportation (Parts 400 -- 499)
V National Aeronautics and Space Administration (Parts 1200 -- 1299)
03 CFR -- 102.171 -- 102999 Title 15 -- Commerce and Foreign Trade
Subtitle A -- Office of the Secretary of Commerce (Parts 0 -- 29)
Subtitle B -- Regulations Relating to Commerce and Foreign Trade
I Bureau of the Census, Department of Commerce (Parts 30 -- 199)
II National Institute of Standards and Technology, Department of
Commerce (Parts 200 -- 299)
III International Trade Administration, Department of Commerce (Parts
300 -- 399)
IV Foreign-Trade Zones Board (Parts 400 -- 499)
VII Bureau of Export Administration, Department of Commerce (Parts
700 -- 799)
VIII Bureau of Economic Analysis, Department of Commerce (Parts 800
-- 899)
IX National Oceanic and Atmospheric Administration, Department of
Commerce (Parts 900 -- 999)
XI Technology Administration, Department of Commerce (Parts 1100 --
1199)
XII United States Travel and Tourism Administration, Department of
Commerce (Parts 1200 -- 1299)
XIII East-West Foreign Trade Board (Parts 1300 -- 1399)
XIV Minority Business Development Agency (Parts 1400 -- 1499)
Subtitle C -- Regulations Relating to Foreign Trade Agreements
XX Office of the United States Trade Representative (Parts 2000 --
2099)
Subtitle D -- Regulations Relating to Telecommunications and
Information
XXIII National Telecommunications and Information Administration,
Department of Commerce (Parts 2300 -- 2399)
03 CFR -- 102.171 -- 102999 Title 16 -- Commercial Practices
I Federal Trade Commission (Parts 0 -- 999)
II Consumer Product Safety Commission (Parts 1000 -- 1799)
03 CFR -- 102.171 -- 102999 Title 17 -- Commodity and Securities
Exchanges
I Commodity Futures Trading Commission (Parts 1 -- 199)
II Securities and Exchange Commission (Parts 200 -- 399)
IV Department of the Treasury (Parts 400 -- 499)
03 CFR -- 102.171 -- 102999 Title 18 -- Conservation of Power and
Water Resources
I Federal Energy Regulatory Commission, Department of Energy (Parts 1
-- 399)
III Delaware River Basin Commission (Parts 400 -- 499)
VI Water Resources Council (Parts 700 -- 799)
VIII Susquehanna River Basin Commission (Parts 800 -- 899)
XIII Tennessee Valley Authority (Parts 1300 -- 1399)
03 CFR -- 102.171 -- 102999 Title 19 -- Customs Duties
I United States Customs Service, Department of the Treasury (Parts 1
-- 199)
II United States International Trade Commission (Parts 200 -- 299)
III International Trade Administration, Department of Commerce (Parts
300 -- 399)
03 CFR -- 102.171 -- 102999 Title 20 -- Employees' Benefits
I Office of Workers' Compensation Programs, Department of Labor
(Parts 1 -- 199)
II Railroad Retirement Board (Parts 200 -- 399)
III Social Security Administration, Department of Health and Human
Services (Parts 400 -- 499)
IV Employees' Compensation Appeals Board, Department of Labor (Parts
500 -- 599)
V Employment and Training Administration, Department of Labor (Parts
600 -- 699)
VI Employment Standards Administration, Department of Labor (Parts
700 -- 799)
VII Benefits Review Board, Department of Labor (Parts 800 -- 899)
VIII Joint Board for the Enrollment of Actuaries (Parts 900 -- 999)
IX Office of the Assistant Secretary for Veterans' Employment and
Training, Department of Labor (Parts 1000 -- 1099)
03 CFR -- 102.171 -- 102999 Title 21 -- Food and Drugs
I Food and Drug Administration, Department of Health and Human
Services (Parts 1 -- 1299)
II Drug Enforcement Administration, Department of Justice (Parts 1300
-- 1399)
03 CFR -- 102.171 -- 102999 Title 22 -- Foreign Relations
I Department of State (Parts 1 -- 199)
II Agency for International Development, International Development
Cooperation Agency (Parts 200 -- 299)
III Peace Corps (Parts 300 -- 399)
IV International Joint Commission, United States and Canada (Parts
400 -- 499)
V United States Information Agency (Parts 500 -- 599)
VI United States Arms Control and Disarmament Agency (Parts 600 --
699)
VII Overseas Private Investment Corporation, International
Development Cooperation Agency (Parts 700 -- 799)
IX Foreign Service Grievance Board Regulations (Parts 900 -- 999)
X Inter-American Foundation (Parts 1000 -- 1099)
XI International Boundary and Water Commission, United States and
Mexico, United States Section (Parts 1100 -- 1199)
XII United States International Development Cooperation Agency (Parts
1200 -- 1299)
XIII Board for International Broadcasting (Parts 1300 -- 1399)
XIV Foreign Service Labor Relations Board; Federal Labor Relations
Authority; General Counsel of the Federal Labor Relations Authority;
and the Foreign Service Impasse Disputes Panel (Parts 1400 -- 1499)
XV African Development Foundation (Parts 1500 -- 1599)
XVI Japan-United States Friendship Commission (Parts 1600 -- 1699)
03 CFR -- 102.171 -- 102999 Title 23 -- Highways
I Federal Highway Administration, Department of Transportation (Parts
1 -- 999)
II National Highway Traffic Safety Administration and Federal Highway
Administration, Department of Transportation (Parts 1200 -- 1299)
III National Highway Traffic Safety Administration, Department of
Transportation (Parts 1300 -- 1399)
03 CFR -- 102.171 -- 102999 Title 24 -- Housing and Urban Development
Subtitle A -- Office of the Secretary, Department of Housing and
Urban Development (Parts 0 -- 99)
Subtitle B -- Regulations Relating to Housing and Urban Development
I Office of Assistant Secretary for Equal Opportunity, Department of
Housing and Urban Development (Parts 100 -- 199)
II Office of Assistant Secretary for Housing-Federal Housing
Commissioner, Department of Housing and Urban Development (Parts 200 --
299)
III Government National Mortgage Association, Department of Housing
and Urban Development (Parts 300 -- 399)
V Office of Assistant Secretary for Community Planning and
Development, Department of Housing and Urban Development (Parts 500 --
599)
VI Office of Assistant Secretary for Community Planning and
Development, Department of Housing and Urban Development (Parts 600 --
699)
VII Office of the Secretary, Department of Housing and Urban
Development (Section 8 Housing Assistance Programs and Public and Indian
Housing Programs) (Parts 700 -- 799)
VIII Office of the Assistant Secretary for Housing -- Federal Housing
Commissioner, Department of Housing and Urban Development (Section 8
Housing Assistance Programs and Section 202 Direct Loan Program) (Parts
800 -- 899)
IX Office of Assistant Secretary for Public and Indian Housing,
Department of Housing and Urban Development (Parts 900 -- 999)
X Office of Assistant Secretary for Housing -- Federal Housing
Commissioner, Department of Housing and Urban Development (Interstate
Land Sales Registration Program) (Parts 1700 -- 1799)
XI Solar Energy and Energy Conservation Bank, Department of Housing
and Urban Development (Parts 1800 -- 1899)
XII Office of Inspector General, Department of Housing and Urban
Development (Parts 2000 -- 2099)
XV Mortgage Insurance and Loan Programs under the Emergency
Homeowners' Relief Act, Department of Housing and Urban Development
(Parts 2700 -- 2799)
XX Office of Assistant Secretary for Housing -- Federal Housing
Commissioner, Department of Housing and Urban Development (Parts 3200 --
3699)
XXV Neighborhood Reinvestment Corporation (Parts 4100 -- 4199)
03 CFR -- 102.171 -- 102999 Title 25 -- Indians
I Bureau of Indian Affairs, Department of the Interior (Parts 1 --
299)
II Indian Arts and Crafts Board, Department of the Interior (Parts
300 -- 399)
III National Indian Gaming Commission (Parts 500 -- 599)
IV Office of Navajo and Hopi Indian Relocation (Parts 700 -- 799)
03 CFR -- 102.171 -- 102999 Title 26 -- Internal Revenue
I Internal Revenue Service, Department of the Treasury (Parts 1 --
799)
03 CFR -- 102.171 -- 102999 Title 27 -- Alcohol, Tobacco Products and
Firearms
I Bureau of Alcohol, Tobacco and Firearms, Department of the Treasury
(Parts 1 -- 299)
03 CFR -- 102.171 -- 102999 Title 28 -- Judicial Administration
I Department of Justice (Parts 0 -- 199)
III Federal Prison Industries, Inc., Department of Justice (Parts 300
-- 399)
V Bureau of Prisons, Department of Justice (Parts 500 -- 599)
VI Offices of Independent Counsel, Department of Justice (Parts 600
-- 699)
VII Office of Independent Counsel (Parts 700 -- 799)
03 CFR -- 102.171 -- 102999 Title 29 -- Labor
Subtitle A -- Office of the Secretary of Labor (Parts 0 -- 99)
Subtitle B -- Regulations Relating to Labor
I National Labor Relations Board (Parts 100 -- 199)
II Bureau of Labor-Management Relations and Cooperative Programs,
Department of Labor (Parts 200 -- 299)
III National Railroad Adjustment Board (Parts 300 -- 399)
IV Office of Labor-Management Standards, Department of Labor (Parts
400 -- 499)
V Wage and Hour Division, Department of Labor (Parts 500 -- 899)
IX Construction Industry Collective Bargaining Commission (Parts 900
-- 999)
X National Mediation Board (Parts 1200-1299)
XII Federal Mediation and Conciliation Service (Parts 1400-1499)
XIV Equal Employment Opportunity Commission (Parts 1600-1699)
XVII Occupational Safety and Health Administration, Department of
Labor (Parts 1900 -- 1999)
XX Occupational Safety and Health Review Commission (Parts 2200 --
2499)
XXV Pension and Welfare Benefits Administration, Department of Labor
(Parts 2500 -- 2599)
XXVI Pension Benefit Guaranty Corporation (Parts 2600 -- 2699)
XXVII Federal Mine Safety and Health Review Commission (Parts 2700 --
2799)
03 CFR -- 102.171 -- 102999 Title 30 -- Mineral Resources
I Mine Safety and Health Administration, Department of Labor (Parts 1
-- 199)
II Minerals Management Service, Department of the Interior (Parts 200
-- 299)
III Board of Surface Mining and Reclamation Appeals, Department of
the Interior (Parts 300 -- 399)
IV Geological Survey, Department of the Interior (Parts 400 -- 499)
VI Bureau of Mines, Department of the Interior (Parts 600 -- 699)
VII Office of Surface Mining Reclamation and Enforcement, Department
of the Interior (Parts 700 -- 999)
03 CFR -- 102.171 -- 102999 Title 31 -- Money and Finance: Treasury
Subtitle A -- Office of the Secretary of the Treasury (Parts 0 -- 50)
Subtitle B -- Regulations Relating to Money and Finance
I Monetary Offices, Department of the Treasury (Parts 51 -- 199)
II Fiscal Service, Department of the Treasury (Parts 200 -- 399)
IV Secret Service, Department of the Treasury (Parts 400 -- 499)
V Office of Foreign Assets Control, Department of the Treasury (Parts
500 -- 599)
VI Bureau of Engraving and Printing, Department of the Treasury
(Parts 600 -- 699)
VII Federal Law Enforcement Training Center, Department of the
Treasury (Parts 700 -- 799)
VIII Office of International Investment, Department of the Treasury
(Parts 800 -- 899)
03 CFR -- 102.171 -- 102999 Title 32 -- National Defense
Subtitle A -- Department of Defense
I Office of the Secretary of Defense (Parts 1 -- 399)
V Department of the Army (Parts 400 -- 699)
VI Department of the Navy (Parts 700 -- 799)
VII Department of the Air Force (Parts 800 -- 1099)
Subtitle B -- Other Regulations Relating to National Defense
XII Defense Logistics Agency (Parts 1200-1299)
XVI Selective Service System (Parts 1600-1699)
XIX Central Intelligence Agency (Parts 1900 -- 1999)
XX Information Security Oversight Office (Parts 2000 -- 2099)
XXI National Security Council (Parts 2100 -- 2199)
XXIV Office of Science and Technology Policy (Parts 2400 -- 2499)
XXVII Office for Micronesian Status Negotiations (Parts 2700 -- 2799)
XXVIII Office of the Vice President of the United States (Parts 2800
-- 2899)
03 CFR -- 102.171 -- 102999 Title 33 -- Navigation and Navigable
Waters
I Coast Guard, Department of Transportation (Parts 1 -- 199)
II Corps of Engineers, Department of the Army (Parts 200 -- 399)
IV Saint Lawrence Seaway Development Corporation, Department of
Transportation (Parts 400 -- 499)
03 CFR -- 102.171 -- 102999 Title 34 -- Education
Subtitle A -- Office of the Secretary, Department of Education (Parts
1 -- 99)
Subtitle B -- Regulations of the Offices of the Department of
Education
I Office for Civil Rights, Department of Education (Parts 100 -- 199)
II Office of Elementary and Secondary Education, Department of
Education (Parts 200 -- 299)
III Office of Special Education and Rehabilitative Services,
Department of Education (Parts 300 -- 399)
IV Office of Vocational and Adult Education, Department of Education
(Parts 400 -- 499)
V Office of Bilingual Education and Minority Languages Affairs,
Department of Education (Parts 500 -- 599)
VI Office of Postsecondary Education, Department of Education (Parts
600 -- 699)
VII Office of Educational Research and Improvement, Department of
Education (Parts 700 -- 799)
03 CFR -- 102.171 -- 102999 Title 35 -- Panama Canal
I Panama Canal Regulations (Parts 1 -- 299)
03 CFR -- 102.171 -- 102999 Title 36 -- Parks, Forests, and Public
Property
I National Park Service, Department of the Interior (Parts 1 -- 199)
II Forest Service, Department of Agriculture (Parts 200 -- 299)
III Corps of Engineers, Department of the Army (Parts 300 -- 399)
IV American Battle Monuments Commission (Parts 400 -- 499)
V Smithsonian Institution (Parts 500 -- 599)
VII Library of Congress (Parts 700 -- 799)
VIII Advisory Council on Historic Preservation (Parts 800 -- 899)
IX Pennsylvania Avenue Development Corporation (Parts 900-999)
XI Architectural and Transportation Barriers Compliance Board (Parts
1100 -- 1199)
XII National Archives and Records Administration (Parts 1200 -- 1299)
03 CFR -- 102.171 -- 102999 Title 37 -- Patents, Trademarks, and
Copyrights
I Patent and Trademark Office, Department of Commerce (Parts 1 --
199)
II Copyright Office, Library of Congress (Parts 200 -- 299)
III Copyright Royalty Tribunal (Parts 300 -- 399)
IV Assistant Secretary for Technology Policy, Department of Commerce
(Parts 400-499)
V Under Secretary for Technology, Department of Commerce (Parts 500
-- 599)
03 CFR -- 102.171 -- 102999 Title 38 -- Pensions, Bonuses, and
Veterans' Relief
I Department of Veterans Affairs (Parts 0 -- 99)
03 CFR -- 102.171 -- 102999 Title 39 -- Postal Service
I United States Postal Service (Parts 1-999)
III Postal Rate Commission (Parts 3000 -- 3099)
03 CFR -- 102.171 -- 102999 Title 40 -- Protection of Environment
I Environmental Protection Agency (Parts 1 -- 799)
V Council on Environmental Quality (Parts 1500-1599)
03 CFR -- 102.171 -- 102999 Title 41 -- Public Contracts and Property
Management
Subtitle B -- Other Provisions Relating to Public Contracts
50 Public Contracts, Department of Labor (Parts 50-1 -- 50-999)
51 Committee for Purchase from the Blind and Other Severely
Handicapped (Parts 51-1 -- 51-99)
60 Office of Federal Contract Compliance Programs, Equal Employment
Opportunity, Department of Labor (Parts 60-1 -- 60-999)
61 Office of the Assistant Secretary for Veterans Employment and
Training, Department of Labor (Parts 61-1 -- 61-999)
Subtitle C -- Federal Property Management Regulations System
101 Federal Property Management Regulations (Parts 101-1 -- 101-99)
105 General Services Administration (Parts 105-1 -- 105-999)
109 Department of Energy Property Management Regulations (Parts 109-1
-- 109-99)
114 Department of the Interior (Parts 114-1 -- 114-99)
115 Environmental Protection Agency (Parts 115-1 -- 115-99)
128 Department of Justice (Parts 128-1 -- 128-99)
132 Department of the Air Force (Parts 132-1 -- 132-99)
Subtitle D -- Other Provisions Relating to Property Management
(Reserved)
Subtitle E -- Federal Information Resources Management Regulations
System
201 Federal Information Resources Management Regulation (Parts 201-1
-- 201-99)
Subtitle F -- Federal Travel Regulation System
301 Travel Allowances (Parts 301-1 -- 301-99)
302 Relocation Allowances (Parts 302-1 -- 302-99)
303 Payment of Expenses Connected with the Death of Certain Employees
(Parts 303-1 -- 303-2)
304 Payment from a non-Federal source for travel expenses (Parts
304-1 -- 304-99)
03 CFR -- 102.171 -- 102999 Title 42 -- Public Health
I Public Health Service, Department of Health and Human Services
(Parts 1 -- 199)
IV Health Care Financing Administration, Department of Health and
Human Services (Parts 400 -- 499)
V Office of Inspector General-Health Care, Department of Health and
Human Services (Parts 1000 -- 1999)
03 CFR -- 102.171 -- 102999 Title 43 -- Public Lands: Interior
Subtitle A -- Office of the Secretary of the Interior (Parts 1 --
199)
Subtitle B -- Regulations Relating to Public Lands
I Bureau of Reclamation, Department of the Interior (Parts 200 --
499)
II Bureau of Land Management, Department of the Interior (Parts 1000
-- 9999)
03 CFR -- 102.171 -- 102999 Title 44 -- Emergency Management and
Assistance
I Federal Emergency Management Agency (Parts 0 -- 399)
IV Department of Commerce and Department of Transportation (Parts 400
-- 499)
03 CFR -- 102.171 -- 102999 Title 45 -- Public Welfare
Subtitle A -- Department of Health and Human Services, General
Administration (Parts 1 -- 199)
Subtitle B -- Regulations Relating to Public Welfare
II Office of Family Assistance (Assistance Programs), Family Support
Administration, Department of Health and Human Services (Parts 200 --
299)
III Office of Child Support Enforcement (Child Support Enforcement
Program), Family Support Administration, Department of Health and Human
Services (Parts 300 -- 399)
IV Office of Refugee Resettlement, Family Support Administration,
Department of Health and Human Services (Parts 400 -- 499)
V Foreign Claims Settlement Commission of the United States,
Department of Justice (Parts 500 -- 599)
VI National Science Foundation (Parts 600 -- 699)
VII Commission on Civil Rights (Parts 700 -- 799)
VIII Office of Personnel Management (Parts 800 -- 899)
X Office of Community Services, Family Support Administration,
Department of Health and Human Services (Parts 1000 -- 1099)
XI National Foundation on the Arts and the Humanities (Parts 1100 --
1199)
XII ACTION (Parts 1200 -- 1299)
XIII Office of Human Development Services, Department of Health and
Human Services (Parts 1300 -- 1399)
XVI Legal Services Corporation (Parts 1600 -- 1699)
XVII National Commission on Libraries and Information Science (Parts
1700 -- 1799)
XVIII Harry S. Truman Scholarship Foundation (Parts 1800 -- 1899)
XX Commission on the Bicentennial of the United States Constitution
(Parts 2000 -- 2099)
XXI Commission on Fine Arts (Parts 2100 -- 2199)
XXII Christopher Columbus Quincentenary Jubilee Commission (2200 --
2299)
03 CFR -- 102.171 -- 102999 Title 46 -- Shipping
I Coast Guard, Department of Transportation (Parts 1 -- 199)
II Maritime Administration, Department of Transportation (Parts 200
-- 399)
III Coast Guard (Great Lakes Pilotage), Department of Transportation
(Parts 400 -- 499)
IV Federal Maritime Commission (Parts 500 -- 599)
03 CFR -- 102.171 -- 102999 Title 47 -- Telecommunication
I Federal Communications Commission (Parts 0 -- 199)
II Office of Science and Technology Policy and National Security
Council (Parts 200 -- 299)
III National Telecommunications and Information Administration,
Department of Commerce (Parts 300 -- 399)
03 CFR -- 102.171 -- 102999 Title 48 -- Federal Acquisition
Regulations System
1 Federal Acquisition Regulation (Parts 1 -- 99)
2 Department of Defense (Parts 200 -- 299)
3 Department of Health and Human Services (Parts 300 -- 399)
4 Department of Agriculture (Parts 400 -- 499)
5 General Services Administration (Parts 500 -- 599)
6 Department of State (Parts 600 -- 699)
7 Agency for International Development (Parts 700 -- 799)
8 Department of Veterans Affairs (Parts 800 -- 899)
9 Department of Energy (Parts 900 -- 999)
10 Department of the Treasury (Parts 1000 -- 1099)
12 Department of Transportation (Parts 1200 -- 1299)
13 Department of Commerce (Parts 1300 -- 1399)
14 Department of the Interior (Parts 1400 -- 1499)
15 Environmental Protection Agency (Parts 1500 -- 1599)
16 Office of Personnel Management Federal Employees Health Benefits
Acquisition Regulation (Parts 1600 -- 1699)
17 Office of Personnel Management (Parts 1700 -- 1799)
18 National Aeronautics and Space Administration (Parts 1800 -- 1899)
19 United States Information Agency (Parts 1900 -- 1999)
22 Small Business Administration (Parts 2200 -- 2299)
24 Department of Housing and Urban Development (Parts 2400 -- 2499)
25 National Science Foundation (Parts 2500 -- 2599)
28 Department of Justice (Parts 2800 -- 2899)
29 Department of Labor (Parts 2900 -- 2999)
34 Department of Education Acquisition Regulation (Parts 3400 --
3499)
35 Panama Canal Commission (Parts 3500 -- 3599)
44 Federal Emergency Management Agency (Parts 4400 -- 4499)
51 Department of the Army Acquisition Regulations (Parts 5100 --
5199)
52 Department of the Navy Acquisition Regulations (Parts 5200 --
5299)
53 Department of the Air Force Federal Acquisition Regulation
Supplement (Parts 5300 -- 5399)
57 African Development Foundation (Parts 5700 -- 5799)
61 General Services Administration Board of Contract Appeals (Parts
6100 -- 6199)
63 Department of Transportation Board of Contract Appeals (Parts 6300
-- 6399)
99 Cost Accounting Standards Board, Office of Federal Procurement
Policy, Office of Management and Budget (Parts 9900-9999)
03 CFR -- 102.171 -- 102999 Title 49 -- Transportation
Subtitle A -- Office of the Secretary of Transportation (Parts 1 --
99)
Subtitle B -- Other Regulations Relating to Transportation
I Research and Special Programs Administration, Department of
Transportation (Parts 100 -- 199)
II Federal Railroad Administration, Department of Transportation
(Parts 200 -- 299)
III Federal Highway Administration, Department of Transportation
(Parts 300 -- 399)
IV Coast Guard, Department of Transportation (Parts 400 -- 499)
V National Highway Traffic Safety Administration, Department of
Transportation (Parts 500 -- 599)
VI Urban Mass Transportation Administration, Department of
Transportation (Parts 600 -- 699)
VII National Railroad Passenger Corporation (AMTRAK) (Parts 700 --
799)
VIII National Transportation Safety Board (Parts 800 -- 899)
X Interstate Commerce Commission (Parts 1000 -- 1399)
03 CFR -- 102.171 -- 102999 Title 50 -- Wildlife and Fisheries
I United States Fish and Wildlife Service, Department of the Interior
(Parts 1 -- 199)
II National Marine Fisheries Service, National Oceanic and
Atmospheric Administration, Department of Commerce (Parts 200 -- 299)
III International Regulatory Agencies (Fishing and Whaling) (Parts
300 -- 399)
IV Joint Regulations (United States Fish and Wildlife Service,
Department of the Interior and National Marine Fisheries Service,
National Oceanic and Atmospheric Administration, Department of
Commerce); Endangered Species Committee Regulations (Parts 400 -- 499)
V Marine Mammal Commission (Parts 500 -- 599)
VI Fishery Conservation and Management, National Oceanic and
Atmospheric Administration, Department of Commerce (Parts 600 -- 699)
03 CFR -- 102.171 -- 102999 CFR Index and Finding Aids
Subject/Agency Index List of Agency Prepared Indexes Parallel Tables of
Statutory Authorities and Rules Acts Requiring Publication in the
Federal Register List of CFR Titles, Chapters, Subchapters, and Parts
03 CFR -- 102.171 -- 102999 Alphabetical List of Agencies Appearing in
the CFR
CFR Title, Subtitle or
Agency
Chapter
ACTION 45, XII
Administrative Committee of the Federal Register 1, I
Administrative Conference of the United States 1, III
Advisory Commission on Intergovernmental Relations 5, VII
Advisory Committee on Federal Pay 5, IV
Advisory Council on Historic Preservation 36, VIII
African Development Foundation 22, XV; 48, 57
Agency for International Development 22, II; 48, 7
Agricultural Marketing Service 7, I, IX, X, XI
Agricultural Research Service 7, V
Agricultural Stabilization and Conservation Service 7, VII
Agriculture Department
Agricultural Marketing Service 7, I, IX, X, XI
Agricultural Research Service 7, V
Agricultural Stabilization and Conservation Service 7, VII
Animal and Plant Health Inspection Service 7, III; 9, I
Commodity Credit Corporation 7, XIV
Cooperative State Research Service 7, XXXIV
Economic Analysis Staff 7, XXXIX
Economic Research Service 7, XXXVII
Economics Management Staff 7, XL
Energy, Office of 7, XXIX
Environmental Quality, Office of 7, XXXI
Farmers Home Administration 7, XVIII
Federal Acquisition Regulation 48, 4
Federal Crop Insurance Corporation 7, IV
Federal Grain Inspection Service 7, VIII
Finance and Management, Office of 7, XXX
Food and Nutrition Service 7, II
Food Safety and Inspection Service 9, III
Foreign Agricultural Service 7, XV
Foreign Economic Development Service 7, XXI
Forest Service 36, II
General Sales Manager, Office of 7, XXV
Grants and Program Systems, Office of 7, XXXII
Information Resources Management, Office of 7, XXVII
Inspector General, Office of 7, XXVI
International Cooperation and Development Office 7, XXII
National Agricultural Library 7, XLI
National Agricultural Statistics Service 7, XXXVI
Operations Office 7, XXVIII
Packers and Stockyards Administration 9, II
Rural Electrification Administration 7, XVII
Rural Telephone Bank 7, XVI
Secretary of Agriculture, Office of 7, Subtitle A
Soil Conservation Service 7, VI
Transportation, Office of 7, XXXIII
World Agriculture Outlook Board 7, XXXVIII
Air Force Department 32, VII; 41, Subtitle C, Ch. 132
Federal Acquisition Regulation Supplement 48, 53
Alaska Natural Gas Transportation System, Office of the Federal
Inspector 10, XV
Alcohol, Tobacco and Firearms, Bureau of 27, I
AMTRAK 49, VII
American Battle Monuments Commission 36, IV
Animal and Plant Health Inspection Service 7, III; 9, I
Appalachian Regional Commission 5, IX
Architectural and Transportation Barriers Compliance Board 36, XI
Arms Control and Disarmament Agency, U.S. 22, VI
Army Department 32, V
Engineers, Corps of 33, II; 36, III
Federal Acquisition Regulation 48, 51
Assistant Secretary for Technology Policy, Department of Commerce 37,
IV
Benefits Review Board 20, VII
Bicentennial of the United States Constitution, Commission on the 45,
XX
Bilingual Education and Minority Languages Affairs, Office of 34, V
Blind and Other Severely Handicapped, Committee for Purchase from 41,
51
Board for International Broadcasting 22, XIII
Budget, Office of Management and 5, III
Census Bureau 15, I
Central Intelligence Agency 32, XIX
Child Support Enforcement, Office of 45, III
Christopher Columbus Quincentenary Jubilee Commission 45, XXII
Civil Rights Commission 45, VII
Civil Rights, Office for (Education Department) 34, I
Claims Collection Standards, Federal 4, II
Coast Guard 33, I; 46, I, III; 49, IV
Commerce Department 44, IV
Census Bureau 15, I
Assistant Secretary for Technology Policy 37, IV
Economic Affairs, Under Secretary 37, V
Economic Analysis, Bureau of 15, VIII
Economic Development Administration 13, III
Endangered Species Committee 50, IV
Export Administration Bureau 15, VII
Federal Acquisition Regulation 48, 13
Fishery Conservation and Management 50, VI
International Trade Administration 15, III; 19, III
National Institute of Standards and Technology 15, II
National Marine Fisheries Service 50, II, IV
National Oceanic and Atmospheric Administration 15, IX; 50, II, III,
IV, VI
National Telecommunications and Information Administration 15, XXIII;
47, III
Patent and Trademark Office 37, I
Productivity, Technology and Innovation, Assistant Secretary for 37,
IV
Secretary of Commerce, Office of 15, Subtitle A
Technology Administration 15, XI
Under Secretary for Technology 37, V
United States Travel and Tourism Administration 15, XII
Commercial Space Transportation, Office of, Department of
Transportation 14, III
Commission on the Bicentennial of the United States Constitution 45,
XX
Committee for Purchase from the Blind and Other Severely Handicapped
41, 51
Commodity Credit Corporation 7, XIV
Commodity Futures Trading Commission 17, I
Community Planning and Development, Office of Assistant Secretary for
24, V, VI
Community Services, Office of 45, X
Comptroller of the Currency 12, I
Construction Industry Collective Bargaining Commission 29, IX
Consumer Product Safety Commission 16, II
Cooperative State Research Service 7, XXXIV
Copyright Office 37, II
Copyright Royalty Tribunal 37, III
Cost Accounting Standards Board, Office of Federal Procurement Policy
48, 99
Council on Environmental Quality 40, V
Customs Service, United States 19, I
Defense Department 32, Subtitle A
Air Force Department 32, VII; 41, Subtitle C, Ch. 132
Army Department 32, V; 33, II; 36, III, 48, 51
Engineers, Corps of 33, II; 36, III
Federal Acquisition Regulation 48, 2
Navy Department 32, VI; 48, 52
Secretary of Defense, Office of 32, I
Defense Logistics Agency 32, XII
Defense Nuclear Facilities Safety Board 10, XVII
Delaware River Basin Commission 18, III
Drug Enforcement Administration 21, II
East-West Foreign Trade Board 15, XIII
Economic Affairs, Under Secretary (Commerce) 37, V
Economic Analysis, Bureau of 15, VIII
Economic Analysis Staff, Department of Agriculture 7, XXXIX
Economic Development Administration 13, III
Economics Management Staff 7, XL
Economic Research Service 7, XXXVII
Education, Department of
Bilingual Education and Minority Languages Affairs, Office of 34, V
Civil Rights, Office for 34, I
Educational Research and Improvement, Office of 34, VII
Elementary and Secondary Education, Office of 34, II
Federal Acquisition Regulation 48, 34
Postsecondary Education, Office of 34, VI
Secretary of Education, Office of 34, Subtitle A
Special Education and Rehabilitative Services, Office of 34, III
Vocational and Adult Education, Office of 34, IV
Educational Research and Improvement, Office of 34, VII
Elementary and Secondary Education, Office of 34, II
Employees' Compensation Appeals Board 20, IV
Employees Loyalty Board, International Organizations 5, V
Employment and Training Administration 20, V
Employment Standards Administration 20, VI
Endangered Species Committee 50, IV
Energy, Department of 10, II, III, X; 41, 109
Federal Acquisition Regulation 48, 9
Federal Energy Regulatory Commission 18, I
Energy, Office of, Department of Agriculture 7, XXIX
Engineers, Corps of 33, II; 36, III
Engraving and Printing, Bureau of 31, VI
Environmental Protection Agency 40, I; 41, 115; 48, 15
Environmental Quality, Office of (Agriculture Department) 7, XXXI
Equal Employment Opportunity Commission 29, XIV
Equal Opportunity, Office of Assistant Secretary for 24, I
Executive Office of the President 3, I
Administration, Office of 5, XV
Export Administration Bureau 15, VII
Export-Import Bank of the United States 12, IV
Family Assistance, Office of 45, II
Family Support Administration 45, II, III, IV, X
Farm Credit Administration 12, VI
Farm Credit System Assistance Board 12, XIII
Farm Credit System Insurance Corporation 12, XIV
Farmers Home Administration 7, XVIII
Federal Acquisition Regulation 48, 1
Federal Aviation Administration 14, I
Federal Claims Collection Standards 4, II
Federal Communications Commission 47, I
Federal Contract Compliance Programs, Office of 41, 60
Federal Crop Insurance Corporation 7, IV
Federal Deposit Insurance Corporation 12, III
Federal Election Commission 11, I
Federal Emergency Management Agency 44, I; 48, 44
Federal Energy Regulatory Commission 18, I
Federal Financial Institutions Examination Council 12, XI
Federal Financing Bank 12, VIII
Federal Grain Inspection Service 7, VIII
Federal Highway Administration 23, I, II; 49, III
Federal Home Loan Mortgage Corporation 1, IV
Federal Housing Finance Board 12, IX
Federal Information Resources Management Regulations 41, Subtitle E,
Ch. 201
Federal Inspector for the Alaska Natural Gas Transportation System,
Office of 10, XV
Federal Labor Relations Authority, and General Counsel of the Federal
Labor Relations Authority 5, XIV; 22, XIV
Federal Law Enforcement Training Center 31, VII
Federal Maritime Commission 46, IV
Federal Mediation and Conciliation Service 29, XII
Federal Mine Safety and Health Review Commission 29, XXVII
Federal Pay, Advisory Committee on 5, IV
Federal Prison Industries, Inc. 28, III
Federal Procurement Policy Office 48, 99
Federal Property Management Regulations 41, 101
Federal Property Management Regulations System 41, Subtitle C
Federal Railroad Administration 49, II
Federal Register, Administrative Committee of 1, I
Federal Register, Office of 1, II
Federal Reserve System 12, II
Federal Retirement Thrift Investment Board 5, VI
Federal Service Impasses Panel 5, XIV
Federal Trade Commission 16, I
Federal Travel Regulation System 41, Subtitle F
Finance and Management, Department of Agriculture 7, XXX
Fine Arts Commission 45, XXI
Fiscal Service 31, II
Fish and Wildlife Service, United States 50, I, IV
Fishery Conservation and Management 50, VI
Fishing and Whaling, International Regulatory Agencies 50, III
Food and Drug Administration 21, I
Food and Nutrition Service 7, II
Food Safety and Inspection Service 9, III
Foreign Agricultural Service 7, XV
Foreign Assets Control, Office of 31, V
Foreign Claims Settlement Commission of United States 45, V
Foreign Economic Development Service 7, XXI
Foreign Service Grievance Board 22, IX
Foreign Service Impasse Disputes Panel 22, XIV
Foreign Service Labor Relations Board 22, XIV
Foreign-Trade Zones Board 15, IV
Forest Service 36, II
General Accounting Office 4, I, II, III
General Sales Manager, Office of 7, XXV
General Services Administration
Contract Appeals Board 48, 61
Federal Acquisition Regulation 48, 5
Federal Information Resources Management Regulations 41, Subtitle E,
Ch. 201
Federal Property Management Regulations System 41, 101, 105
Federal Travel Regulation System 41, Subtitle F
Payment of Expenses Connected With the Death of Certain Employees 41,
303
Reduction in Meeting and Training Allowance Payments 41, 304
Relocation Allowances 41, 302
Travel Allowances 41, 301
Geological Survey 30, IV
Government Ethics, Office of 5, XVI
Government National Mortgage Association 24, III
Grants and Program Systems, Office of 7, XXXII
Great Lakes Pilotage 46, III
Harry S. Truman Scholarship Foundation 45, XVIII
Health and Human Services, Department of 45, Subtitle A
Child Support Enforcement, Office of 45, III
Community Services, Office of 45, X
Family Assistance, Office of 45, II
Family Support Administration 45, II, III, IV, X
Federal Acquisition Regulation 48, 3
Food and Drug Administration 21, I
Health Care Financing Administration 42, IV
Human Development Services Office 45, XIII
Inspector General, Office of 42, V
Public Health Service 42, I
Refugee Resettlement, Office of 45, IV
Social Security Administration 20, III; 45, IV
Health Care Financing Administration 42, IV
Housing and Urban Development, Department of
Community Planning and Development, Office of Assistant Secretary for
24, V, VI
Equal Opportunity, Office of Assistant Secretary for 24, I
Federal Acquisition Regulation 48, 24
Government National Mortgage Association 24, III
Housing -- Federal Housing Commissioner, Office of Assistant
Secretary for 24, II, VIII, X, XX
Inspector General, Office of 24, XII
Mortgage Insurance and Loan Programs Under Emergency Homeowners'
Relief Act 24, XV
Public and Indian Housing, Office of Assistant Secretary for 24, IX
Secretary, Office of 24, Subtitle B, VII
Solar Energy and Energy Conservation Bank 24, XI
Housing -- Federal Housing Commissioner, Office of Assistant
Secretary for 24, II, VIII, X, XX
Human Development Services Office 45, XIII
Immigration and Naturalization Service 8, I
Indian Affairs, Bureau of 25, I
Indian Arts and Crafts Board 25, II
Information Agency, United States 22, V; 48, 19
Information Resources Management, Office of, Agriculture Department
7, XXVII
Information Security Oversight Office 32, XX
Inspector General, Office of, Agriculture Department 7, XXVI
Inspector General, Office of, Health and Human Services Department
42, V
Inspector General, Office of, Housing and Urban Development
Department 24, XII
Inter-American Foundation 22, X
Intergovernmental Relations, Advisory Commission on 5, VII
Interior Department
Endangered Species Committee 50, IV
Federal Acquisition Regulation 48, 14
Federal Property Management Regulations System 41, 114
Fish and Wildlife Service, United States 50, I, IV
Geological Survey 30, IV
Indian Affairs, Bureau of 25, I
Indian Arts and Crafts Board 25, II
Land Management Bureau 43, II
Minerals Management Service 30, II
Mines, Bureau of 30, VI
National Park Service 36, I
Reclamation Bureau 43, I
Secretary of the Interior, Office of 43, Subtitle A
Surface Mining and Reclamation Appeals, Board of 30, III
Surface Mining Reclamation and Enforcement, Office of 30, VII
United States Fish and Wildlife Service 50, I, IV
Internal Revenue Service 26, I
International Boundary and Water Commission, United States and Mexico
22, XI
International Cooperation and Development Office, Department of
Agriculture 7, XXII
International Development, Agency for 22, II
International Development Cooperation Agency 22, XII
International Development, Agency for 22, II
Overseas Private Investment Corporation 22, VII
International Joint Commission, United States and Canada 22, IV
International Organizations Employees Loyalty Board 5, V
International Regulatory Agencies (Fishing and Whaling) 50, III
International Trade Administration 15, III; 19, III
International Trade Commission, United States 19, II
Interstate Commerce Commission 49, X
Japan-United States Friendship Commission 22, XVI
Joint Board for the Enrollment of Actuaries 20, VIII
Justice Department 28, I; 41, 128
Drug Enforcement Administration 21, II
Federal Acquisition Regulation 48, 28
Federal Claims Collection Standards 4, II
Federal Prison Industries, Inc. 28, III
Foreign Claims Settlement Commission of the United States 45, V
Immigration and Naturalization Service 8, I
Offices of Independent Counsel 28, VI
Prisons, Bureau of 28, V
Labor Department
Benefits Review Board 20, VII
Employees' Compensation Appeals Board 20, IV
Employment and Training Administration 20, V
Employment Standards Administration 20, VI
Federal Acquisition Regulation 48, 29
Federal Contract Compliance Programs, Office of 41, 60
Federal Procurement Regulations System 41, 50
Labor-Management Relations and Cooperative Programs, Bureau of 29, II
Labor-Management Standards, Office of 29, IV
Mine Safety and Health Administration 30, I
Occupational Safety and Health Administration 29, XVII
Pension and Welfare Benefits Administration 29, XXV
Public Contracts 41, 50
Secretary of Labor, Office of 29, Subtitle A
Veterans' Employment and Training, Office of the Assistant Secretary
for 41, 61; 20, IX
Wage and Hour Division 29, V
Workers' Compensation Programs, Office of 20, I
Labor-Management Relations and Cooperative Programs, Bureau of 29, II
Labor-Management Standards, Office of 29, IV
Land Management, Bureau of 43, II
Legal Services Corporation 45, XVI
Library of Congress 36, VII
Copyright Office 37, II
Management and Budget, Office of 5, III; 48, 99
Marine Mammal Commission 50, V
Maritime Administration 46, II
Merit Systems Protection Board 5, II
Micronesian Status Negotiations, Office for 32, XXVII
Mine Safety and Health Administration 30, I
Minerals Management Service 30, II
Mines, Bureau of 30, VI
Minority Business Development Agency 15, XIV
Miscellaneous Agencies 1, IV
Monetary Offices 31, I
Mortgage Insurance and Loan Programs Under the Emergency Homeowners'
Relief Act, Department of Housing and Urban Development 24, XV
National Aeronautics and Space Administration 14, V; 48, 18
National Agricultural Library 7, XLI
National Agricultural Statistics Service 7, XXXVI
National Archives and Records Administration 36, XII
National Bureau of Standards 15, II
National Capital Planning Commission 1, IV
National Commission for Employment Policy 1, IV
National Commission on Libraries and Information Science 45, XVII
National Credit Union Administration 12, VII
National Foundation on the Arts and the Humanities 45, XI
National Highway Traffic Safety Administration 23, II, III; 49, V
National Indian Gaming Commission 25, III
National Institute of Standards and Technology 15, II
National Labor Relations Board 29, I
National Marine Fisheries Service 50, II, IV
National Mediation Board 29, X
National Oceanic and Atmospheric Administration 15, IX; 50, II, III,
IV, VI
National Park Service 36, I
National Railroad Adjustment Board 29, III
National Railroad Passenger Corporation (AMTRAK) 49, VII
National Science Foundation 45, VI; 48, 25
National Security Council 32, XXI
National Security Council and Office of Science and Technology Policy
47, II
National Telecommunications and Information Administration 15, XXIII;
47, III
National Transportation Safety Board 49, VIII
Office of Navajo and Hopi Indian Relocation 25, IV
Navy Department 32, VI; 48, 52
Neighborhood Reinvestment Corporation 24, XXV
Nuclear Regulatory Commission 10, I
Occupational Safety and Health Administration 29, XVII
Occupational Safety and Health Review Commission 29, XX
Office of Independent Counsel 28, VII
Offices of Independent Counsel, Department of Justice 28, VI
Operations Office, Department of Agriculture 7, XXVIII
Overseas Private Investment Corporation 22, VII
Oversight Board 12, XV
Packers and Stockyards Administration 9, II
Panama Canal Commission 48, 35
Panama Canal Regulations 35, I
Patent and Trademark Office 37, I
Payment of Expenses Connected With the Death of Certain Employees 41,
303
Peace Corps 22, III
Pennsylvania Avenue Development Corporation 36, IX
Pension and Welfare Benefits Administration, Department of Labor 29,
XXV
Pension Benefit Guaranty Corporation 29, XXVI
Personnel Management, Office of 5, I; 45, VIII; 48, 17
Federal Employees Health Benefits Acquisition Regulation 48, 16
Postal Rate Commission 39, III
Postal Service, United States 39, I
Postsecondary Education, Office of 34, VI
President's Commission on White House Fellowships 1, IV
Presidential Documents 3
Prisons, Bureau of 28, V
Productivity, Technology and Innovation, Assistant Secretary
(Commerce) 37, IV
Property Management Regulations System, Federal 41, Subtitle C
Public Contracts, Department of Labor 41, 50
Public Health Service 42, I
Railroad Retirement Board 20, II
Reclamation Bureau 43, I
Reduction in Meeting and Training Allowance Payments 41, 304
Refugee Resettlement, Office of 45, IV
Regional Action Planning Commissions 13, V
Relocation Allowances 41, 302
Research and Special Programs Administration 49, I
Resolution Trust Corporation 12, XVI
Rural Electrification Administration 7, XVII
Rural Telephone Bank 7, XVI
Saint Lawrence Seaway Development Corporation 33, IV
Science and Technology Policy, Office of 32, XXIV
Science and Technology Policy, Office of, and National Security
Council 47, II
Secret Service 31, IV
Securities and Exchange Commission 17, II
Selective Service System 32, XVI
Small Business Administration 13, I; 48, 22
Smithsonian Institution 36, V
Social Security Administration 20, III; 45, IV
Soil Conservation Service 7, VI
Solar Energy and Energy Conservation Bank, Department of Housing and
Urban Development 24, XI
Soldiers' and Airmen's Home, United States 5, XI
Special Counsel, Office of 5, VIII
Special Education and Rehabilitative Services, Office of 34, III
State Department 22, I
Federal Acquisition Regulation 48, 6
Surface Mining and Reclamation Appeals, Board of 30, III
Susquehanna River Basin Commission 18, VIII
Technology Administration 15, XI
Tennessee Valley Authority 18, XIII
Thrift Supervision Office, Department of the Treasury 12, V
Trade Representative, United States, Office of 15, XX
Transportation, Department of 44, IV
Coast Guard 33, I; 46, I, III; 49, IV
Commercial Space Transportation, Office of 14, III
Contract Appeals Board 48, 63
Federal Acquisition Regulation 48, 12
Federal Aviation Administration 14, I
Federal Highway Administration 23, I, II; 49, III
Federal Railroad Administration 49, II
Maritime Administration 46, II
National Highway Traffic Safety Administration 23, II, III; 49, V
Research and Special Programs Administration 49, I
Saint Lawrence Seaway Development Corporation 33, IV
Secretary of Transportation, Office of 14, II; 49, Subtitle A
Urban Mass Transportation Administration 49, VI
Transportation, Office of, Department of Agriculture 7, XXXIII
Travel Allowance 41, 301
Travel and Tourism Administration, United States 15, XII
Treasury Department 17, IV
Alcohol, Tobacco and Firearms, Bureau of 27, I
Comptroller of the Currency 12, I
Customs Service, United States 19, I
Engraving and Printing, Bureau of 31, VI
Federal Acquisition Regulation 48, 10
Federal Law Enforcement Training Center 31, VII
Fiscal Service 31, II
Foreign Assets Control, Office of 31, V
Internal Revenue Service 26, I
Monetary Offices 31, I
Secret Service 31, IV
Secretary of the Treasury, Office of 31, Subtitle A
Thrift Supervision Office 12, V
United States Customs Service 19, I
Truman, Harry S. Scholarship Foundation 45, XVIII
Under Secretary for Technology, Department of Commerce 37, V
United States and Canada, International Joint Commission 22, IV
United States Arms Control and Disarmament Agency 22, VI
United States Customs Service 19, I
United States Fish and Wildlife Service 50, I, IV
United States Information Agency 22, V; 48, 19
United States International Development Cooperation Agency 22, XII
United States International Trade Commission 19, II
United States Postal Service 39, I
United States Soldiers' and Airmen's Home 5, XI
United States Trade Representative, Office of 15, XX
United States Travel and Tourism Adminstration 15, XII
Urban Mass Transportation Administration 49, VI
Veterans Affairs Department 38, I; 48, 8
Veterans' Employment and Training, Office of the Assistant Secretary
for 41, 61; 20, IX
Vice President of the United States, Office of 32, XXVIII
Vocational and Adult Education, Office of 34, IV
Wage and Hour Division 29, V
Water Resources Council 18, VI
Workers' Compensation Programs, Office of 20, I
World Agriculture Outlook Board 7, XXXVIII
The President
3
1991 COMPILATION
AND
PARTS 100-102
Revised as of January 1, 1992
Published by
the Office of the Federal Register
National Archives and Records Administration
as a Special Edition of
the Federal Register
DC 20402-9328
03 CFR -- 102.171 -- 102999 Table of Contents
Page
List of Title 3 Compilations iv
Explanation of the Code of Federal Regulations v
Explanation of This Title vii
How To Cite This Title ix
Title 3 xi
1991 Compilation -- Presidential Documents 1
Chapter I -- Executive Office of the President 447
Title 3 Finding Aids 471
Tables 473
List of CFR Sections Affected
Index
CFR Finding Aids
Table of CFR Titles and Chapters
Alphabetical List of Agencies Appearing in the CFR *ERR08*
03 CFR -- 102.171 -- 102999 Title 3 Compilations
03 CFR -- 102.171 -- 102999 *ERR08*
03 CFR -- 102.171 -- 102999 Explanation of the Code of Federal
Regulations
The Code of Federal Regulations is a codification of the general and
permanent rules published in the Federal Register by the Executive
departments and agencies of the Federal Government. The Code is divided
into 50 titles which represent broad areas subject to Federal
regulation. Each title is divided into chapters which usually bear the
name of the issuing agency. Each chapter is further subdivided into
parts covering specific regulatory areas.
ISSUE DATES
Each volume of the Code is revised at least once each calendar year
and issued on a quarterly basis approximately as follows:
Title 1 through Title 16 as of January 1
Title 17 through Title 27 as of April 1
Title 28 through Title 41 as of July 1
Title 42 through Title 50 as of October 1
The appropriate revision date is printed on the cover of each volume.
LEGAL STATUS
The contents of the Federal Register are required to be judicially
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie
evidence of the text of the original documents (44 U.S.C. 1510).
HOW TO USE THE CODE OF FEDERAL REGULATIONS
The Code of Federal Regulations is kept up to date by the individual
issues of the Federal Register. These two publications must be used
together to determine the latest version of any given rule.
To determine whether a Code volume has been amended since its
revision date (in this case, January 1, 1992), consult the List of CFR
Sections Affected (LSA), which is issued monthly, and the ''Cumulative
List of Parts Affected,'' which appears in the Reader Aids section of
the daily Federal Register. These two lists will identify the Federal
Register page number of the latest amendment of any given rule.
EFFECTIVE AND EXPIRATION DATES
Each volume of the Code contains amendments published in the Federal
Register since the last revision of that volume of the Code. Source
citations for the regulations are referred to by volume number and page
number of the Federal Register and date of publication. Publication
dates and effective dates are usually not the same and care must be
exercised by the user in determining the actual effective date. In
instances where the effective date is beyond the cut-off date for the
Code a note has been inserted to reflect the future effective date. In
those instances where a regulation published in the Federal Register
states a date certain for expiration, an appropriate note will be
inserted following the text.
OMB CONTROL NUMBERS
The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires Federal
agencies to display an OMB control number with their information
collection request. Many agencies have begun publishing numerous OMB
control numbers as amendments to existing regulations in the CFR. These
OMB numbers are placed as close as possible to the applicable
recordkeeping or reporting requirements.
OBSOLETE PROVISIONS
Provisions that become obsolete before the revision date stated on
the cover of each volume are not carried. Code users may find the text
of provisions in effect on a given date in the past by using the
appropriate numerical list of sections affected. For the period before
January 1, 1986, consult either the ''List of CFR Sections Affected,
1949-1963, 1964-1972, and 1973-1985,'' published in three separate
volumes. For the period beginning January 1, 1986, a ''List of CFR
Sections Affected'' is published at the end of each CFR volume.
CFR INDEXES AND TABULAR GUIDES
A subject index to the Code of Federal Regulations is contained in a
separate volume, revised annually as of January 1, entitled CFR Index
and Finding Aids. This volume contains the Parallel Table of Statutory
Authorities and Agency Rules (Table I), and Acts Requiring Publication
in the Federal Register (Table III). A list of CFR Titles, Chapters,
and Parts and an alphabetical list of agencies publishing in the CFR are
also included in this volume.
An index to the text of ''Title 3 -- The President'' is carried
within that volume.
The Federal Register Index is issued monthly in cumulative form.
This index is based on a consolidation of the ''Contents'' entries in
the daily Federal Register.
A List of CFR Sections Affected (LSA) is published monthly, keyed to
the revision dates of the 50 CFR titles.
REPUBLICATION OF MATERIAL
There are no restrictions on the republication of material appearing
in the Code of Federal Regulations.
INQUIRIES AND SALES
For a summary, legal interpretation, or other explanation of any
regulation in this volume, contact the issuing agency. Inquiries
concerning editing procedures and reference assistance with respect to
the Code of Federal Regulations may be addressed to the Director, Office
of the Federal Register, National Archives and Records Administration,
Washington, D.C. 20408 (telephone 202-523-3517). Sales are handled
exclusively by the Superintendent of Documents, Government Printing
Office, Washington, D.C. 20402 (telephone 202-783-3238).
MARTHA L. GIRARD
Director,
Office of the Federal Register.
January 1, 1992.
*ERR08*
03 CFR -- 102.171 -- 102999 Explanation of This Title
This volume of ''Title 3 -- The President'' contains a compilation of
Presidential documents and a codification of regulations issued by the
Executive Office of the President.
The 1991 Compilation contains the full text of those documents signed
by the President that were required to be published in the Federal
Register. Signature date rather than publication date is the criterion
for inclusion. With each annual volume, the Presidential documents
signed in the previous year become the new Compilation.
Chapter I contains regulations issued by the Executive Office of the
President. This section is a true codification like other CFR volumes,
in that its contents are organized by subject or regulatory area and are
updated by individual issues of the Federal Register.
Presidential documents in this volume may be cited ''3 CFR, 1991
Comp.'' Thus, the preferred abbreviated citation for Proclamation 6241,
appearing on page 1 of this book, is ''3 CFR, 1991 Comp., p. 1.''
Chapter I entries may be cited ''3 CFR.'' Thus, the preferred
abbreviated citation for Section 100.735-1, appearing in Chapter I of
this book, is ''3 CFR 100.735-1.''
This book is one of the volumes in a series that began with
Proclamation 2161 of March 19, 1936, and Executive Order 7316 of March
13, 1936, and that has been continued by means of annual compilations
and periodic cumulations. The entire Title 3 series, as of January 1,
1992, is encompassed in the volumes listed on page iv.
For readers interested in proclamations and Executive orders prior to
1936, there is a two-volume set entitled Proclamations and Executive
Orders, Herbert Hoover (March 4, 1929, to March 4, 1933). Codified
Presidential documents are published in the Codification of Presidential
Proclamations and Executive Orders (April 13, 1945 -- January 20, 1989).
Other public Presidential documents not required to be published in the
Federal Register, such as speeches, messages to Congress, and
statements, can be found in the Weekly Compilation of Presidential
Documents and the Public Papers of the Presidents series. Each of these
Office of the Federal Register publications is available for sale from
the Superintendent of Documents, Government Printing Office, Washington,
DC 20402.
This book was prepared in the Presidential Documents and Legislative
Division by Susannah C. Hurley.
*ERR08*
*ERR08*
03 CFR -- 102.171 -- 102999 Title 3 -- The President
Page
1991 Compilation -- Presidential Documents:
Proclamations 1
Executive Orders 309
Other Presidential Documents 387
Chapter I -- Executive Office of the President:
Part 100 447
Part 101 461
Part 102 462
Finding Aids:
Table 1 -- Proclamations 473
Table 2 -- Executive Orders 477
Table 3 -- Other Presidential Documents
Table 4 -- Presidential Documents Affected During 1991
Table 5 -- Statutes Cited as Authority for Presidential Documents
List of CFR Sections Affected
Index
CFR Finding Aids
Table of CFR Titles and Chapters
Alphabetical List of Agencies Appearing in the CFR
04 CFR 0.0 4 CFR Ch. I (1-1-92 Edition)
04 CFR 0.0 General Accounting Office
04 CFR 0.0 Title 4 -- Accounts
Part
chapter i -- General Accounting Office 2
chapter ii -- Federal Claims Collection Standards (General Accounting
Office -- Department of Justice) 101
chapter iii -- General Accounting Office (CASB) 301
04 CFR 0.0 4 CFR Ch. I (1-1-92 Edition)
04 CFR 0.0 General Accounting Office
04 CFR 0.0 CHAPTER I -- GENERAL ACCOUNTING OFFICE
04 CFR 0.0
04 CFR 0.0 SUBCHAPTER A -- PERSONNEL SYSTEM
Part
Page
2 Purpose and general provision
3 Employment
4 Employee performance and utilization
5 Compensation
6 Attendance and leave
7 Personnel relations and services
8 Insurance and annuities
9 Senior Executive Service
11 Recognition of attorneys and other representatives
04 CFR 0.0
04 CFR 0.0 SUBCHAPTER B -- GENERAL PROCEDURES
21 Bid protest regulations
22 Procedures for decisions on appropriated fund expenditures which
are of mutual concern to agencies and labor organizations
25 Conduct in the General Accounting Office building and on its
grounds
27 General Accounting Office Personnel Appeals Board -- organization
28 General Accounting Office Personnel Appeals Board -- procedures
04 CFR 0.0
04 CFR 0.0 SUBCHAPTER C -- CLAIMS; GENERAL
30 Scope of subchapter
31 Claims against the United States; general procedure
32 Review and reconsideration of General Accounting Office claims
settlements
33 Deceased civilian officers and employees; procedures for
settlement of accounts
34 Deceased members of the Armed Forces and National Guard;
procedures for settlement of accounts
35 Deceased public creditors generally, claim settlement procedures
36 Incompetent public creditors; procedures for settlement of
accounts
04 CFR 0.0
04 CFR 0.0 SUBCHAPTER D -- TRANSPORTATION
51 Determinations
52 Uniform standards and procedures for transportation transactions
53 Review of General Services Administration transportation
settlement actions
56 Joint regulations for advance payment of charges for
transportation services furnished the United States
04 CFR 0.0
04 CFR 0.0 SUBCHAPTER E -- STANDARDIZED FISCAL PROCEDURES
75 Certificates and approvals of basic vouchers and invoices
04 CFR 0.0
04 CFR 0.0 SUBCHAPTER F -- RECORDS
81 Public availability of General Accounting Office records
82 Furnishing records of the General Accounting Office in judicial
proceedings
83 Privacy procedures for personnel records
04 CFR 0.0 SUBCHAPTER G -- STANDARDS FOR WAIVER OF CLAIMS FOR
ERRONEOUS PAYMENT OF PAY AND ALLOWANCES
91 Standards for waiver
92 Procedure
93 (Reserved)
04 CFR 0.0
04 CFR 0.0 4 CFR Ch. I (1-1-92 Edition)
04 CFR 0.0 General Accounting Office
04 CFR 0.0 SUBCHAPTER A -- PERSONNEL SYSTEM
04 CFR 0.0 PART 2 -- PURPOSE AND GENERAL PROVISION
Sec.
2.1 Purpose, scope, and applicability.
2.2 References.
2.3 GAO Personnel Appeals Board.
2.4 Merit system principles.
2.5 Prohibited personnel practices.
2.6 Veterans' preference.
Authority: 31 U.S.C. 732.
Source: 45 FR 68375, Oct. 15, 1980, unless otherwise noted.
04 CFR 2.1 Purpose, scope, and applicability.
(a) This regulation establishes and sets forth the basic policy for
the General Accounting Office (GAO) personnel system. Personnel
management is a primary responsibility of all who plan, direct, or
supervise the work of employees. The objective of personnel management
is to contribute to the effective accomplishment of GAO's mission
through proper acquisition, development, fair treatment, motivation,
compensation and productive utilization of employees.
(b) Nothing in this regulation prohibits or restricts any lawful
effort to achieve equal employment opportunity through affirmative
action.
04 CFR 2.2 References.
(a) Subchapters III and IV of Chapter 7 of Title 31 U.S.C.
(b) Title 5, United States Code.
(45 FR 68375, Oct. 15, 1980, as amended at 47 FR 56979, Dec. 22,
1982)
04 CFR 2.3 GAO Personnel Appeals Board.
The General Accounting Office Personnel Appeals Board is established
by 31 U.S.C. 751. This board will promulgate regulations providing for
employee appeals and establishing its operating procedures.
(47 FR 56979, Dec. 22, 1982)
04 CFR 2.4 Merit system principles.
(a) Merit personnel systems are based on the principle that an
organization is best served by motivated, competent, honest and
productive workers. In a merit system, employees are hired, promoted,
rewarded, and retained on the basis of individual ability and fitness
for employment without regard to race, color, sex, religion, age, or
national origin. Central to this principle is the protection of
employees from discrimination, improper political influence and personal
favoritism.
(b) Equal employment opportunity is an integral part of every merit
system. Affirmative action plans, designed to provide a work force
reflective of the Nation's diversity, must assure that both in operation
and results the merit system reflects equal opportunity at every step of
the personnel process.
(c) GAO personnel systems shall embody the following merit system
principles:
(1) Recruitment should be from qualified individuals from appropriate
sources in an endeavor to achieve a work force from all segments of
society, and selection and advancement should be determined solely on
the basis of relative ability, knowledge, and skills, after fair and
open competition which assures that all receive equal opportunity.
(2) All employees and applicants for employment should receive fair
and equitable treatment in all aspects of personnel management without
regard to political affiliation, race, color, religion, national origin,
sex, marital status, age, or handicapping condition, and with proper
regard for their privacy and constitutional rights.
(3) Equal pay should be provided for work of substantially equal
value, with appropriate consideration of both national and local rates
paid by employers in the private sector, and appropriate incentives and
recognition should be provided for excellence in performance.
(4) All employees should maintain high standards of integrity,
conduct, and concern for the public interest.
(5) The work force should be used efficiently and effectively.
(6) Employees should be retained on the basis of the adequacy of
their performance, inadequate performance should be corrected, and
employees should be separated who cannot or will not improve their
performance to meet required standards.
(7) Employees should be provided effective education and training in
cases in which such education and training would result in better
organizational and individual performance.
(8) Employees should be protected against arbitrary action, personal
favoritism, or coercion from partisan political purposes and prohibited
from using their official authority or influence for the purpose of
interfering with or affecting the results of an election or a nomination
for election.
(9) Employees should be protected against reprisal for the lawful
disclosure of information which the employee reasonably believes
evidences: a violation of any law, rule or regulation; or
mismanagement, a gross waste of funds, an abuse of authority, or a
substantial and specific danger to public health or safety.
04 CFR 2.5 Prohibited personnel practices.
Any GAO employee who has authority to take, direct others to take,
recommend, or approve any personnel action, shall not, with respect to
such authority engage in the following prohibited personnel practices.
(a) Discrimination. GAO employees shall not discriminate for or
against any employee or applicant for employment --
(1) On the basis of race, color, religion, sex, or national origin,
as prohibited under section 717 of the Civil Rights Act of 1964 (42
U.S.C. 2000 e-16);
(2) On the basis of age, as prohibited under section 12 and 15 of the
Age Discrimination in Employment Act of 1967 (29 U.S.C. 631, 633a);
(3) On the basis of sex, as prohibited under section 6(d) of the Fair
Labor Standards Act of 1938 (29 U.S.C. 206(d));
(4) On the basis of handicapping condition, as prohibited under
section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 791); or
(5) On the basis of marital status or political affiliation, as
prohibited under any law, rule, or regulation.
(b) Recommendations or statements. GAO employees shall not solicit
or consider any recommendation or statement, oral or written, with
respect to any individual who requests or is under consideration for any
personnel action unless such recommendation or statement is based on the
personal knowledge or records of the person furnishing it and consists
of --
(1) An evaluation of the work performance, ability, aptitude, or
general qualifications of such individual, or
(2) An evaluation of the character, loyalty, or suitability of such
individual.
(c) Political activity. GAO employees shall not coerce the political
activity of any person (including the providing of any political
contribution or service), or take any action against any employee or
applicant for employment as a reprisal for the refusal of any person to
engage in such political activity.
(d) Compete for employment. GAO employees shall not deceive or
willfully obstruct any person with respect to such person's right to
compete for employment.
(e) Influencing competition. GAO employees shall not influence any
person to withdraw from competition for any position for the purpose of
improving or injuring the prospects of any other person for employment.
(f) Preference or advantage. GAO employees shall not grant any
preference or advantage not authorized by law, rule, or regulation to
any employee or applicant for employment (including defining the scope
or manner of competition or the requirements for any position) for the
purpose of improving or injuring the prospects of any particular person
for employment.
(g) Relatives. GAO employees who are serving as public officials (as
defined in section 3110(a)(2) of title 5, United States Code) shall not
appoint, employ, promote, advance, or advocate for appointment,
employment, promotion, or advancement, in or to a GAO position any
individual who is a relative (as defined in section 3110(a)(3) of title
5, U.S. Code) of such employee.
(h) Reprisals. GAO employees shall not take or fail to take a
personnel action with respect to any employee or applicant for
employment as a reprisal for --
(1) A disclosure of information by an employee or applicant which the
employee or applicant reasonably believes evidences --
(i) A violation of any law, rule, or regulation, or
(ii) Mismanagement, a gross waste of funds, an abuse of authority, or
a substantial and specific danger to public health or safety, if such
disclosure is not specifically prohibited by law and if such information
is not specifically required by Executive order to be kept secret in the
interest of national defense or the conduct of foreign affairs; or
(2) A disclosure to the General Counsel of the GAO Personnel Appeals
Board of information which the employee or applicant reasonably believes
evidences --
(i) A violation of any law, rule, or regulation, or
(ii) Mismanagement, a gross waste of funds, an abuse of authority, or
a substantial and specific danger to public health or safety.
(i) Reprisals for appeals. GAO employees shall not take or fail to
take any personnel action against any employee or applicant for
employment as a reprisal for the exercise of any appeal right granted by
any law, rule, or regulation.
(j) Discrimination for conduct. GAO employees shall not discriminate
for or against any employee or applicant for employment on the basis of
conduct which does not adversely affect the performance of the employee
or applicant or the performance of others; except that nothing in this
paragraph shall prohibit an agency from taking into account in
determining suitability or fitness any conviction of the employee or
applicant for any crime under the laws of any State, or the District of
Columbia, or of the United States.
(k) Other personnel actions. GAO employees shall not take or fail to
take any other personnel action if the taking of or failure to take such
action violates any law, rule or regulation implementing, or directly
concerning, the merit system principles described in 2.4.
(l) Information to the Congress. Nothing in this section shall be
construed to authorize the withholding of information from the Congress
or the taking of any personnel action against an employee who discloses
information to the Congress.
04 CFR 2.6 Veterans' preference.
(a) GAO will provide preference, for any individual who would be a
preference eligible in the executive branch, in a manner and to an
extent consistent with preference eligibles in the executive branch.
(b) Appeals from preference decisions will be heard by the GAO
Personnel Appeals Board.
04 CFR 2.6 PART 3 -- EMPLOYMENT
Sec.
3.1 Appointment, promotion, and assignment.
3.2 Oath of office.
3.3 Assignments to and from States.
Authority: 31 U.S.C. 732.
Source: 45 FR 68376, Oct. 15, 1980, unless otherwise noted.
04 CFR 3.1 Appointment, promotion, and assignment.
Employees of GAO shall be appointed, promoted and assigned solely on
the basis of merit and fitness, but without regard to the provisions of
Title 5, United States Code, governing appointments and other personnel
actions in the competitive service.
04 CFR 3.2 Oath of office.
The provisions of Subchapter II of Chapter 33 of Title 5, U.S. Code,
and Office of Personnel Management implementing regulations apply to
General Accounting Office employees.
04 CFR 3.3 Assignments to and from States.
The provisions of Subchapter VI of Chapter 33 of Title 5, U.S. Code,
and Office of Personnel Management implementing regulations apply to
General Accounting Office employees.
04 CFR 3.3 PART 4 -- EMPLOYEE PERFORMANCE AND UTILIZATION
Sec.
4.1 Training.
4.2 Performance appraisal.
4.3 Removal for unacceptable performance.
4.4 Incentive awards.
Authority: 31 U.S.C. 732.
Source: 45 FR 68376, Oct. 15, 1980, unless otherwise noted.
04 CFR 4.1 Training.
The provisions of Chapter 41, of Title 5, United States Code, and
Office of Personnel Management implementing regulations apply to General
Accounting Office employees.
04 CFR 4.2 Performance appraisal.
(a) The GAO shall develop one or more performance appraisal systems
which provide for periodic appraisals of job performance of employees;
encourages employee participation in establishing performance standards;
and uses the results of performance appraisal as a basis for training,
rewarding, reassigning, promoting, reducing in grade, retaining, and
removing employees.
(b) Each performance appraisal system shall provide for --
(1) Establishing performance standards which will, to the maximum
extent feasible, permit the accurate evaluation of job performance on
the basis of job-related criteria (which may include the extent of
courtesy demonstrated to the public) for each GAO employee.
(2) As soon as practicable, but not later than October 1, 1981, with
respect to initial appraisal periods, and thereafter at the beginning of
each following appraisal period, communicating to reach GAO employee the
performance standards and the critical elements of the employee's
position.
(3) Annually evaluating each employee during the appraisal period on
such standards.
(4) Recognizing and rewarding employees whose performance so
warrants.
(5) Assisting employees in improving unacceptable performance.
(6) Reassigning, reducing in grade, or removing employees who
continue to have unacceptable performance but only after an opportunity
to demonstrate acceptable performance.
04 CFR 4.3 Removal for unacceptable performance.
GAO may reduce in grade/pay level or remove an employee for
unacceptable performance in accordance with the provisions of this
section.
(a) Employee entitlement. A GAO employee whose reduction in
grade/pay level or removal is proposed under this section is entitled to
--
(1) An advance written notice of the proposed action which identifies
--
(i) Specifies instances of unacceptable performance by the employee
on which the proposed action is based; and
(ii) The critical elements of the employee's position involved in
each instance of unacceptable performance.
(2) Be represented by an attorney or other representative.
(3) A reasonable time to answer orally and in writing.
(4) A written decision which --
(i) Specific the instances of unacceptable performance by the
employee on which the reduction in grade/pay level or removal is based.
(ii) Unless proposed by the Comptroller General or by a senior
manager (e.g., the Deputy Comptroller General, an Assistant Comptroller
General, or a Division or Office Director) has been concurred in by an
employee who is in a higher position than the employee who proposed the
action.
(b) Decisions to retain, reduce in grade/pay level or remove. The
decision to retain, reduce in grade or remove a GAO employee --
(1) Shall be made within 30 days after the date of expiration of the
notice period, and
(2) In the case of reduction in grade/pay level or removal, may be
based only on those instances of unacceptable performance by the
employee --
(i) Which occurred during the 1-year period ending on the date of the
notice of the proposed action.
(ii) For which the notice and other requirements of this section are
complied with.
(c) Performance improvement. If because of performance improvement
by the employee during the notice period, the employee is not reduced in
grade/pay level or removed, and the employee's performance continues to
be acceptable for 1 year from the date of advance written notice, any
records shall be retained only as prescribed by other recordkeeping
requirements, such as grievances, adverse action appeals, or
discrimination complaints. In these circumstances any entry or notation
of unacceptable performance shall be removed from the employee's
official personnel folder and maintained in separate files to be used
only in connection with an employee initiated complaint.
(d) Appeals. A GAO employee who has been reduced in grade/pay level
or removed under this section is entitled to appeal the action to the
GAO Personnel Appeals Board.
(e) Nonapplicability. This section does not apply to --
(1) The reduction to the grade/pay level previously held of a
supervisor or manager who has not completed the trail period.
(2) The reduction in grade/pay level or removal of a GAO employee who
is serving a trial period under an initial appointment or who has not
completed 1 year of current continuous employment under other than a
temporary appointment limited to 1 year or less.
(3) Employees in the GAO Senior Executive Service.
04 CFR 4.4 Incentive awards.
The provisions of Chapter 45 of Title 5, United States Code and
Office of Personnel Management implementing regulations apply to General
Accounting Office employees.
04 CFR 4.4 PART 5 -- COMPENSATION
Sec.
5.1 Pay.
5.2 Grade and pay retention.
5.3 Merit pay.
5.4 Pay administration.
5.5 Travel, transportation, and subsistence.
5.6 Allowances.
Authority: 31 U.S.C. 732.
Source: 45 FR 68377, Oct. 15, 1980, unless otherwise noted.
04 CFR 5.1 Pay.
(a) Pay principles. Pay of the employees of GAO shall be fixed by
the Comptroller General consistent with the principles that --
(1) There be equal pay for work of substantially equal value.
(2) Pay distinctions be maintained in keeping with work and
performance distinctions.
(3) Pay rates be comparable with private enterprise pay rates for the
same levels of work.
(4) Pay levels be interrelated to the General Schedule.
(b) Pay rates. (1) The Comptroller General shall publish a schedule
of pay rates which shall apply to GAO employees. Except as provided in
paragraph (b) (2) of this section, and regulations for the GAO Senior
Executive Service, the highest rate under such schedule shall not exceed
the highest rate of basic pay payable for grade GS-15 under the General
Schedule.
(2) Such schedule may provide for rates which do not exceed the
maximum rate payable for grade GS-18 of the General Schedule for up to
one hundred employees, reduced by the number of employees who are in the
GAO Senior Executive Service, other than those in such service pursuant
to 31 U.S.C. 733(c).
(c) Pay adjustments. Except as provided in regulations for the GAO
Senior Executive Service and the Merit Pay System, the pay of GAO
employees shall be adjusted at the same time and to the same extent as
rates of basic pay are adjusted for the General Schedule.
(45 FR 68377, Oct. 15, 1980, as amended at 47 FR 56979, Dec. 22,
1982)
04 CFR 5.2 Grade and pay retention.
(a) Change of positions. Any GAO employee who is placed in a lower
grade position as a result of a reduction-in-force may be entitled to
the retained grade of the higher position he or she previously held.
The employee receives this entitlement (which is for a period of 2
years) if he or she has served for at least 52 consecutive weeks in one
or more positions at a grade or grades higher than the new position.
The 2-year period begins on the date of placement to the lower grade
position.
(b) Reclassification. Any GAO employee who is in a position which is
reduced in grade is entitled to have the grade of such position before
reduction be treated as the retained grade of such employee for the
2-year period beginning on the date of reduction in grade. However,
this section shall not apply to any reduction in the grade of a position
which had not been classified at the higher grade for a continuous
period of at least 1 year immediately before such reduction.
(c) Retained grade. For the 2-year period referred to in paragraphs
(a) and (b) of this section, the retained grade of GAO employees shall
be treated as the grade of the employee's position for all purposes
(including pay and pay administration, retirement, life insurance and
eligibility for training and promotion) except --
(1) For purposes of 5.2(a).
(2) For purposes of applying any reduction-in-force procedures.
(3) For purposes of determining whether the employee is covered by a
merit pay system.
(4) For such other purposes as the Comptroller General may provide by
regulation.
(d) Termination of retained grade. The foregoing provisions of this
section shall cease to apply to any GAO employee who --
(1) Has a break in service of 1 workday or more;
(2) Is demoted for personal cause or at the employee's request;
(3) Is placed in, or declines, a reasonable offer of, a position the
grade of which is equal or higher than the retained grade; or
(4) Elects in writing to have the benefits of this chapter terminate.
(e) Pay retention. (1) Any GAO employee: who ceases to be entitled
to a retained grade by reason of the expiration of the 2-year period;
or who (but for this paragraph) would be subject to a reduction in pay
under circumstances prescribed by the Comptroller General by regulation
to warrant the application of this paragraph is entitled to --
(2) Basic pay at a rate equal to the employee's allowable former rate
of basic pay, plus 50 percent of the amount of each increase in the
maximum rate of basic pay payable for the employee's position
immediately after such reduction in pay if such allowable former rate
exceeds such maximum rate for such grade.
(f) ''Allowable former rate of basic pay.'' This means the lower of
--
(1) The rate of basic pay payable to the employee immediately before
the reduction in pay; or
(2) 150 percent of the maximum rate of basic pay payable for the
grade of the employee's position immediately after such reduction in
pay.
(g) Termination of retained pay. The pay retention provisions in
5.2(e) shall cease to apply to a GAO employee who --
(1) Has a break in service of 1 workday or more.
(2) Is entitled by operation of 5.1, 5.2, and 5.3 to a rate of
basic pay which is equal to or higher than, or declines a reasonable
offer of a position the rate of basic pay for which is equal to or
higher than, the rate to which the employee is entitled under 5.2(e);
or
(3) Is demoted for personal cause or at the employee's request.
(h) Remedial actions. Under regulations prescribed by the
Comptroller General, Personnel shall --
(1) Obtain and make available to employees receiving benefits under
this section, information on vacancies in other Federal agencies.
(2) Take such steps as may be appropriate to assure employees
receiving benefits under this section have the opportunity to obtain
necessary qualifications for the selection to positions which would
minimize the need for the application of this section; and
(3) Establish a program under which employees receiving benefits
under this section are given priority in the consideration for or
placement in positions which are equal to their retained grade or pay.
(i) Appeals. In the case of the termination of any benefits to a GAO
employee under this section on the grounds that such employee declined a
reasonable offer of a position the grade or pay of which was equal to or
greater than their retained grade or pay, after administrative remedies
have been exhausted, such termination may be appealed to the GAO
Personnel Appeals Board under procedures prescribed by the Board.
04 CFR 5.3 Merit pay.
The Comptroller General may promulgate regulations establishing a
merit pay system for such employees of the General Accounting Office as
the Comptroller General considers appropriate. The merit pay system
shall be designed to carry out purposes consistent with those set forth
in section 5401(a) of Title 5, United States Code, which provides --
5401. Purpose
(a) It is the purpose of this chapter to provide for --
(1) A merit pay system which shall --
(A) Within available funds, recognize and reward quality performance
by varying merit pay adjustments;
(B) Use performance appraisals as the basis for determining merit pay
adjustments;
(C) Within available funds, provide for training to improve
objectivity and fairness in the evaluation of performance; and
(D) Regulate the costs of merit pay by establishing appropriate
control techniques; and
(2) A cash award program which shall provide cash awards for superior
accomplishment and special service.
04 CFR 5.4 Pay administration.
The provisions of Chapter 55 of Title 5, U.S. Code and the Office of
Personnel Management implementing regulations apply to General
Accounting Office employees.
04 CFR 5.5 Travel, transportation, and subsistence.
The provisions of Chapter 57 of Title 5, U.S. Code and the
implementing regulations for the Executive Branch apply to General
Accounting Office employees.
04 CFR 5.6 Allowances.
The provisions of Chapter 59 of Title 5, U.S. Code and the
implementing regulations for the Executive Branch apply to General
Accounting Office employees.
04 CFR 5.6 PART 6 -- ATTENDANCE AND LEAVE
Authority: 31 U.S.C. 732.
04 CFR 6.1 Applicable law and regulations.
The provision of subpart E, title 5, United States Code and the
Office of Personnel Management implementing regulations regarding
''Attendance and Leave'' apply to General Accounting Office employees.
This includes hours of work, annual leave, sick leave, and other paid
leave.
(45 FR 68378, Oct. 15, 1980, as amended at 47 FR 56979, Dec. 22,
1982)
04 CFR 6.1 PART 7 -- PERSONNEL RELATIONS AND SERVICES
Sec.
7.1 Labor management relations.
7.2 Equal employment opportunity.
7.3 Political activities.
7.4 Employment limitations, foreign gifts and decorations, and
misconduct.
7.5 Adverse actions: Suspensions for 14 days or less.
7.6 Adverse actions: Removal, suspension for more than 14 days,
reduced in grade or pay, reduced in pay or furloughed for 30 days or
less.
7.7 Other appeals and grievances.
7.8 Services to employees.
Authority: 31 U.S.C. 732.
Source: 45 FR 68378, Oct. 15, 1980, unless otherwise noted.
04 CFR 7.1 Labor management relations.
(a) Policy. Each employee of GAO has the right, freely and without
fear of penalty or reprisal, to form, join, or assist an employee
organization, or to refrain from such activity.
(b) Labor relations program. A labor relations program consistent
with Chapter 71 of Title 5, United States Code will be developed for the
General Accounting Office.
04 CFR 7.2 Equal employment opportunity.
(a) Policy. All personnel actions affecting employees or applicants
for employment in GAO shall be taken without regard to race, color,
religion, age, sex, national origin, political affiliation, marital
status or handicapping condition.
(b) Equal opportunity recruiting program. GAO shall conduct
continuing programs for the recruitment of members of minorities and
women for positions in GAO in a manner designed to eliminate
underrepresentation of minorities and women in the various categories of
employment in GAO. Special efforts will be directed at recruiting in
minority communities, in educational institutions, and from other
sources from which minorities can be recruited. GAO will conduct a
continuing program of evaluation and oversight of such recruiting
programs to determine their effectiveness in eliminating minority and
women underrepresentation.
(c) Statutory rights and remedies. Nothing in this order shall be
construed to abolish or diminish any right or remedy granted to
employees of or applicants for employment in GAO --
(1) By section 717 of the Civil Rights Act of 1964 (42 U.S.C.
2000e-16);
(2) By sections 12 and 15 of the Age Discrimination in Employment Act
of 1967 (29 U.S.C. 631, 633a);
(3) By section 6(d) of the Fair Labor Standards Act of 1938 (29
U.S.C. 206(d));
(4) By sections 501 and 505 of the Rehabilitation Act of 1973 (29
U.S.C. 791, 794a); or
(5) By any other law prohibiting discrimination in Federal employment
on the basis of race, color, religion, age, sex, national origin,
political affiliation, marital status or handicapping condition.
(d) Authorities granted thereunder to the Equal Employment
Opportunity Commission, Office of Personnel Management, the Merit
Systems Protection Board, or any other agency in the executive branch
concerning oversight and appeals shall be exercised by the GAO Personnel
Appeals Board. Other responsibilities shall be exercised by the
Comptroller General.
04 CFR 7.3 Political activities.
(a) In this section:
(1) Contribution means any gift, subscription, loan, advance, deposit
of money, allotment of money, or anything of value given or transferred
by one person to another, including in cash, by check, by draft, through
a payroll deduction or allotment plan, by pledge or promise, whether or
not enforceable, or otherwise.
(2) Election includes a primary, special, and general election.
(3) Employee means an individual who occupies a position in the
General Accounting Office.
(4) Employer or employing authority means the Comptroller General,
his principals, or an employee's supervisor.
(5) Federal workplace means any place, site, installation, building,
room, or facility in which any department or agency conducts official
business, including, but not limited to, office buildings, forts,
arsenals, navy yards, post offices, vehicles, ships, and aircraft.
(6) Nonpartisan election means --
(i) An election at which none of the candidates is to be nominated or
elected as representing a political party any of whose candidates for
presidential elector received votes in the last preceding election at
which presidential electors were selected; and
(ii) An election involving a question or issue which is not
specifically identified with a political party, such as a constitutional
amendment, referendum, approval of a municipal ordinance, or any
question or issue of a similar character.
(7) Partisan when used as an adjective refers to a political party.
(8) Political fund means any fund, organization, political action
committee, or other entity that, for purposes of influencing in any way
the outcome of any partisan election, receives or expends money or
anything of value or transfers money or anything of value to any other
fund, political party, candidate, organization, political action
committee, or other entity.
(9) Political party means a national political party, a state
political party, and an affiliated organization.
(b) All employees are free to engage in political activity to the
widest extent consistent with the restrictions imposed by law and this
section. Each employee retains the right to --
(1) Register and vote in any election;
(2) Express his opinion as an individual privately and publicly on
political subjects and candidates;
(3) Display a political picture, sticker, badge, or button;
(4) Participate in the nonpartisan activities of a civic, community,
social, labor, or professional organization, or of a similar
organization;
(5) Be a member of a political party or other political organization
and participate in its activities to the extent consistent with law;
(6) Attend a political convention, rally, fund-raising function, or
other political gathering;
(7) Sign a political petition as an individual;
(8) Make a financial contribution to a political fund, political
party, or organization;
(9) Take an active part, as an independent candidate, or in support
of an independent candidate in a partisan election covered by paragraphs
(h), (i), and (j) of this section;
(10) Take an active part, as a candidate or in support of a
candidate, in a nonpartisan election;
(11) Be politically active in connection with a question which is not
specifically identified with a political party, such as a constitutional
amendment, referendum, approval of a municipal ordinance or any other
question or issue of a similar character;
(12) Serve as an election judge or clerk, or in a similar position to
perform nonpartisan duties as prescribed by state or local law; and
(13) Otherwise participate fully in public affairs, except as
prohibited by law, in a manner which does not materially compromise
his/her efficiency or integrity as an employee or the neutrality,
efficiency, or integrity of the agency.
(c) Paragraph (b) of this section does not authorize an employee to
engage in political activity in violation of law, while on duty. The
Comptroller General may prohibit or limit the participation of an
employee or class of employees in an activity permitted by paragraph (b)
of this section, if participation in the activity would interfere with
the efficient performance of official duties, or create a conflict or
apparent conflict of interests.
(d) An employee may not use his/her official authority or influence
for the purpose of interfering with or affecting the result of an
election.
(e) An employee may not take an active part in political management
or in a political campaign, except as permitted by this section.
(f) Activities prohibited by paragraph (e) of this section include
but are not limited to --
(1) Serving as an officer of a political party, a member of a
national, state, or local committee of a political party, an officer or
member of a committee of a partisan political club, or being a candidate
for any of these positions;
(2) Organizing or reorganizing a political party organization or
political club;
(3) Directly or indirectly soliciting, receiving, collecting,
handling, disbursing, or accounting for assessments, contributions, or
other funds for a partisan political purpose;
(4) Organizing, selling tickets to, promoting, or actively
participating in a fund-raising activity of a candidate in a partisan
election or of a political party, or political club;
(5) Taking an active part in managing the political campaign of a
candidate for public office in a partisan election or a candidate for
political party office;
(6) Becoming a candidate for, or campaigning for, an elective public
office in a partisan election;
(7) Soliciting votes in support of or in opposition to a candidate
for public office in a partisan election or a candidate for political
party office;
(8) Acting as recorder, watcher, challenger, or similar officer at
the polls on behalf of a political party or a candidate in a partisan
election;
(9) Driving voters to the polls on behalf of a political party or a
candidate in a partisan election;
(10) Endorsing or opposing a candidate for public office in a
partisan election or a candidate for political party office in a
political advertisement, a broadcast, campaign, literature, or similar
material;
(11) Serving as a delegate, alternate, or proxy to a political party
convention;
(12) Addressing a convention, caucus, rally, or similar gathering of
a political party in support of or in opposition to a partisan candidate
for public office or political party office;
(13) Initiating or circulating a partisan nominating petition;
(14) Soliciting, collecting, or receiving a contribution at or in the
federal workplace from any employee for any political party, political
fund, or other partisan recipient;
(15) Paying a contribution at or in the federal workplace to any
employee who is the employer or employing authority of the person making
the contribution for any political party, political fund, or other
partisan recipient; and
(16) Soliciting, paying, collecting, or receiving a contribution at
or in the federal workplace from any employee for any political party,
political fund, or other partisan recipient.
(g) Paragraph (f) of this section does not apply to --
(1) The Comptroller General or the Deputy Comptroller General;
(2) An employee who resides in a municipality or other political
subdivision designated under paragraph (i), subject to the conditions of
paragraphs (i) and (j) of this section; or
(3) An employee who works on an irregular or occasional basis, on the
days that he/she performs no services.
(h) Paragraph (f) of this section does not prohibit activity in
political management or in a political campaign by an employee in
connection with --
(1) A nonpartisan election, or
(2) Subject to the conditions and limitations established by the
Comptroller General, an election held in a municipality or political
subdivision designated under paragraph (i) of this section.
(i) For the purpose of paragraph (h)(2) of this section, the
Comptroller General may designate a municipality or political
subdivision in Maryland or Virginia in the immediate vicinity of the
District of Columbia or a municipality in which the majority of voters
are employed by the Government of the United States, when the
Comptroller General determines that, because of special or unusual
circumstances, it is in the domestic interest of employees to
participate in local elections. The following municipalities and
political subdivisions have been designated:
Annapolis
Anne Arundel County
Berwyn Heights
Bethesda
Bladensburg
Bowie
Brentwood
Capitol Heights
Cheverly
Chevy Chase, sections 1, 2, 3, and 4 Martin's Additions 1, 2, 3, and
4 to Chevy Chase
Chevy Chase View
College Park
Cottage City
District Heights
Edmonston
Fairmont Heights
Forest Heights
Garrett Park
Glendarden
Glen Echo
Greenbelt
Howard County
Hyattsville
Kensington
Landover Hills
Montgomery County
Morningside
Mount Rainier
New Carrollton
North Beach
North Brentwood
North Chevy Chase
Northwest Park
Prince Georges County
Riverdale
Rockville
Seat Pleasant
Somerset
Takoma Park
University Park
Washington Grove
Alexandria
Arlington County
Clifton
Fairfax County
Town of Fairfax
Falls Church
Herndon
Loudoun County
Manassas
Manassas Park
Portsmouth
Prince William County
Stafford County
Vienna
Anchorage, AK
Benicia, CA
Bremerton, WA
Centerville, GA
Crane, IN
District of Columbia
Elmer City, WA
Huachuca City, AZ
New Johnsonville, TN
Norris, TN
Port Orchard, WA
Sierra Vista, AZ
Warner Robins, GA
(j) An employee who resides in a municipality or political
subdivision listed in paragraph (i) of this section may take an active
part in political management and political campaigns in connection with
partisan elections for local offices of the municipality or political
subdivision, subject to the following limitations:
(1) Participation in politics shall be as an independent candidate or
on behalf of, or in opposition to, an independent candidate.
(2) Candidacy for, and service in, an elective office shall not
result in neglect of or interference with the performance of the duties
of the employee or create a conflict, or apparent conflict, of
interests.
(53 FR 26421, July 13, 1988)
04 CFR 7.4 Employment limitations, foreign gifts and decorations, and
misconduct.
The provisions of Subchapters II, IV, and V of Chapter 73 of title 5,
United States Code and implementing regulations thereunder continue to
apply to this office.
04 CFR 7.5 Adverse actions: Suspensions for 14 days or less.
(a) Policy. A GAO employee may be suspended for 14 days or less for
such cause as will promote the efficiency of GAO (including discourteous
conduct to the public confirmed by an immediate supervisor's report of
four such instances within any 1-year period or any other pattern of
discourteous conduct). Suspension means placing an employee, for
disciplinary reasons, temporarily in a status without duties and pay.
(b) Employee entitlement. An employee against whom a suspension for
14 days or less is proposed is entitled to --
(1) An advance written notice stating the specific reasons for the
proposed action;
(2) A reasonable time to answer orally and in writing and to furnish
affidavits and other documentary evidence in support of the answer;
(3) Be represented by an attorney or other representative; and
(4) A written decision and the specific reasons therefore at the
earliest practicable date.
(c) Documentation. Copies of the notice of proposed action, the
answer of the employee if written, a summary thereof if made orally, the
notice of decision and reasons therefor, and any order effecting the
suspension, together with any supporting material, shall be maintained
by Personnel and shall be furnished to the employee affected upon the
employee's request.
(d) Nonapplicability. This section is not applicable to -- (1) An
employee who is serving a trial period under an initial appointment in
GAO or who has not completed 1 year of current continuous employment in
the same or similar positions in GAO under other than a temporary
appointment limited to 1 year or less.
(2) A suspension in the interest of national security.
04 CFR 7.6 Adverse actions: Removal, suspension for more than 14 days,
reduced in grade, reduced in pay or furloughed for 30 days or less.
(a) Policy. A GAO employee may be removed, suspended for more than
14 days, reduction in grade or pay, or furlough for 30 days or less for
such cause as will promote the efficiency of GAO. Furloughed means
placing an employee in a temporary status without duties and pay because
of lack of work or funds or other nondisciplinary reasons.
(b) Employee entitlement. An employee against whom an action is
proposed under this section is entitled to --
(1) At least 30 days' advance written notice, unless there is
reasonable cause to believe the employee has committed a crime for which
a sentence of imprisonment may be imposed, stating the specific reasons
for the proposed action,
(2) A reasonable time to answer orally and in writing and to furnish
affidavits and other documents in support of the answer.
(3) Be represented by an attorney or other representative; and
(4) A written decision and the specific reasons therefor at the
earliest practicable date.
(c) Appeals. After administrative remedies have been exhausted, an
employee against whom an action is taken under this section is entitled
to appeal to the GAO Personnel Appeals Board.
(d) Documentation. Copies of the notice of proposed action, the
answer of the employee if written, a summary thereof when made orally,
the notice of decision and reasons therefor, and any order affecting an
action covered by this section, together with any supporting material,
shall be maintained by Personnel and shall be furnished to the GAO
Personnel Appeals Board upon its request and to the employee affected
upon the employee's request.
(e) Nonapplicability. This section does not apply to --
(1) Employees who are serving a trial period under an initial
appointment or who has not completed 1 year of current continuous
employment under other than a temporary appointment limited to 1 year or
less.
(2) A suspension or removal of an employee in the interests of
national security.
(3) A reduction in force.
(4) The reduction in grade of a supervisor or manager who has not
completed the probationary period.
(5) A reduction in grade or removal for unacceptable performance
under Part 4.
(6) An action ordered by the GAO Personnel Appeals Board.
04 CFR 7.7 Other appeals and grievances.
The personnel system shall provide procedures for the processing of
complaints and grievances which are not otherwise provided for.
04 CFR 7.8 Services to employees.
The provisions of Chapter 79 of Title 5, United States Code, and the
Office of Personnel Management implementing regulations apply to General
Accounting Office employees.
04 CFR 7.8 PART 8 -- INSURANCE AND ANNUITIES
Authority: 31 U.S.C. 732.
04 CFR 8.1 Applicable law and regulations.
The provisions of subpart G, title 5, United States Code and
implementing regulations for the Executive Branch covering compensation
for work injuries, retirement, unemployment compensation, life
insurance, and health insurance apply to General Accounting Office
employees.
(45 FR 68380, Oct. 15, 1980, as amended at 47 FR 56979, Dec. 22,
1982)
04 CFR 8.1 PART 9 -- SENIOR EXECUTIVE SERVICE
Authority: 31 U.S.C. 733.
04 CFR 9.1 GAO Senior Executive Service.
(a) The Comptroller General may promulgate regulations establishing a
General Accounting Office Senior Executive Service which meets the
requirements set forth in section 3131 of Title 5, United States Code,
which provides --
The Senior Executive Service shall be administered so as to --
(1) Provide for a compensation system, including salaries, benefits,
and incentives, and for other conditions of employment, designed to
attract and retain highly competent senior executives;
(2) Ensure that compensation, retention, and tenure are contingent on
executive success which is measured on the basis of individual and
organizational performance (including such factors as improvements in
efficiency, productivity, quality of work or service, cost efficiency,
and timeliness of performance and success in meeting equal employment
opportunity goals);
(3) Assure that senior executives are accountable and responsible for
the effectiveness and productivity of employees under them;
(4) Recognize exceptional accomplishment;
(5) Enable the head of an agency to reassign senior executives to
best accomplish the agency's mission;
(6) Provide for severance pay, early retirement, and placement
assistance for senior executives who are removed from the Senior
Executive Service for nondisciplinary reasons;
(7) Protect senior executives from arbitrary or capricious actions;
(8) Provide for program continuity in the management of GAO programs;
(9) Maintain a merit personnel system free of prohibited personnel
practices;
(10) Ensure accountability for honest, economical, and efficient
Government;
(11) Ensure compliance with all applicable personnel laws, rules, and
regulations, including those related to equal employment opportunity,
political activity, and conflicts of interest;
(12) Provide for the initial and continuing systematic development of
highly competent senior executives;
(13) Provide for an executive system which is guided by the public
interest and free from improper political interference; and
(14) Appoint career executives to fill Senior Executive Service
positions to the extent practicable, consistent with the effective and
efficient implementation of agency policies and responsibilities.
(b) Requirements for positions included in the GAO Senior Executive
System. The GAO Senior Executive Service may include --
(1) The 100 positions authorized by 31 U.S.C. 732(c)(4);
(2) The position of the General Counsel authorized by 31 U.S.C.
731(c);
(3) The 5 positions authorized by 31 U.S.C. 731(d); and
(4) The 10 positions authorized by 31 U.S.C. 731(e)(2).
(45 FR 68380, Oct. 15, 1980, as amended at 47 FR 56979, Dec. 22,
1982)
04 CFR 9.1 PART 11 -- RECOGNITION OF ATTORNEYS AND OTHER
REPRESENTATIVES
Sec.
11.1 Right to representation before the General Accounting Office.
11.2 Practice by attorneys.
11.3 Authority to represent in payment cases.
11.4 Authority to represent in other cases.
11.5 Revocation of authority to represent.
Authority: 31 U.S.C. 711.
Source: 41 FR 35155, Aug. 20, 1976. Redesignated at 45 FR 68374,
Oct. 15, 1980, unless otherwise noted.
04 CFR 11.1 Right to representation before the General Accounting
Office.
Each person having a claim or other rights assertable in the General
Accounting Office may pursue such claim or right individually or through
an attorney or other representative.
04 CFR 11.2 Practice by attorneys.
Any person who is a member in good standing of the bar of the Supreme
Court of the United States or of the highest court of any State,
territory, or the District of Columbia, and is not under any order of
any court suspending, enjoining, restraining, disbarring, or otherwise
restricting him in the practice of law, may represent others before the
General Accounting Office.
04 CFR 11.3 Authority to represent in payment cases.
In the prosecution of claims involving payments to be made by the
United States, a proper power of attorney is required before an attorney
or other representative may be recognized. A power of attorney from the
principal may also be requested in other cases.
04 CFR 11.4 Authority to represent in other cases.
When an attorney acting in a representative capacity appears in
person or signs a document submitted to the General Accounting Office in
connection with a matter other than one involving a payment to be made
by the United States, his personal appearance or signature shall
constitute a representation that he is authorized and qualified to
represent the particular party in whose behalf he acts. In the case of
representatives other than attorneys, a simple written declaration from
the principal will be accepted as evidence of the authority of the
representative to act on behalf of the principal.
04 CFR 11.5 Revocation of authority to represent.
Prior to the conclusion of action by the General Accounting Office on
a matter in which a principal is represented by another person whose
authority to act is established under either 11.3 or 11.4, the
principal may revoke the authority of his representative. Such
revocation is not effective unless it is in writing and signed by the
principal and until the written revocation is received by the General
Accounting Office. Upon notification of the death of the principal
during the pendency of any matter involving representation of the
principal by an attorney or other party, the General Accounting Office
will consider the representative's authority to have been automatically
revoked.
04 CFR 11.5 SUBCHAPTER B -- GENERAL PROCEDURES
04 CFR 11.5 PART 21 -- BID PROTEST REGULATIONS
Sec.
21.0 Definitions.
21.1 Filing of protest.
21.2 Time for filing.
21.3 Notice of protest, submission of agency report and time for
filing of comments on report.
21.4 Withholding of award and suspension of contract performance.
21.5 Hearings.
21.6 Remedies.
21.7 Time for decision by the General Accounting Office.
21.8 Express Option.
21.9 Effect of judicial proceedings.
21.10 Signing and distribution of decisions.
21.11 Nonstatutory protests.
21.12 Request for reconsideration.
Authority: 31 U.S.C. 3551-3556.
04 CFR 21.0 Definitions.
(a) Interested party for the purposes of filing a protest, means an
actual or prospective bidder or offeror whose direct economic interest
would be affected by the award of a contract or by the failure to award
a contract.
(b) Interested party for the purpose of participation in a protest
means an awardee if the award has been made, or if no award has been
made, all bidders or offerors who appear to have a substantial prospect
of receiving an award if the protest is denied.
(c) Federal agency means any executive department or independent
establishment in the executive branch, including any wholly owned
government corporation, and any establishment in the legislative or
judicial branch, except the Senate, the House of Representatives and the
Architect of the Capitol and any activities under his direction.
(d) Contracting agency means a federal agency which has awarded or
proposes to award a contract under a protested procurement.
(e) All ''days'' referred to are deemed to be ''working days'' of the
federal government except in 21.4, where in large part the statutory
language is repeated. Except as otherwise provided, in computing a
period of time prescribed by these regulations, the day from which the
designated period of time begins to run shall not be counted, but the
last day of the period shall be counted unless that day is not a working
day of the federal government, in which event the period shall include
the next working day. Time for filing any document or copy thereof with
the General Accounting Office expires at 5:30 p.m. Eastern Standard Time
or Eastern Daylight Savings Time as applicable on the last day on which
such filing may be made.
(f) Adverse agency action is any action or inaction on the part of a
contracting agency which is prejudicial to the position taken in a
protest filed with the agency. It may include but is not limited to: a
decision on the merits of a protest; a procurement action such as the
opening of bids or receipt of proposals, the award of a contract, or the
rejection of a bid despite the pendency of a protest; or contracting
agency acquiescence in and active support of continued and substantial
contract performance.
(g) The term filed regarding protests to the General Accounting
Office means receipt of the protest and other submissions in the General
Accounting Office.
(49 FR 49419, Dec. 20, 1984, as amended at 52 FR 46448, Dec. 8, 1987;
56 FR 3762, Jan. 31, 1991)
04 CFR 21.1 Filing of protest.
(a) An interested party may protest to the General Accounting Office
a solicitation issued by or for a federal agency for the procurement of
property or services, or the proposed award or the award of such a
contract. After an interested party protests a particular procurement
or proposed procurement of automated data processing equipment and
services to the General Services Administration Board of Contract
Appeals under section III(h) of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 759(h)) and while that protest is
pending before the Board that procurement or proposed procurement may
not be the subject of a protest to the General Accounting Office. An
interested party who has filed a protest with the Board may not protest
the same matter to the General Accounting Office.
(b) Protests must be in writing and addressed as follows: General
Counsel, General Accounting Office, 441 G Street, NW., Washington, D.C.
20548, Attention: Procurement Law Control Group.
(c) A protest filed with the General Accounting Office shall:
(1) Include the name, address and telephone number of the protester,
(2) Include an original signed by the protester or its
representative, and at least one copy,
(3) Identify the issuing agency and the solicitation and/or contract
number,
(4) Set forth a detailed statement of the legal and factual grounds
of protest including copies of relevant documents,
(5) Specifically request a ruling by the Comptroller General of the
United States (Comptroller General), and
(6) State the form of relief requested.
(d) The protester shall furnish a copy of the protest (including
relevant documents not issued by the contracting agency) to the
individual or location designated by the contracting agency in the
solicitation for receipt of protests. If there is no designation in the
solicitation, the protester shall furnish a copy of the protest to the
contracting officer. The designated individual or location, or if
applicable, the contracting officer must receive a copy of the protest
no later than 1 day after the protest is filed with the General
Accounting Office. The protest document must indicate that a copy has
been furnished or will be furnished within 1 day to the appropriate
individual or location.
(e) No formal briefs or other technical forms of pleading or motion
are required. Protest submissions should be concise, logically
arranged, and clearly state legally sufficient grounds of protest.
Protests of different procurements should be separately filed. If
requested, the General Accounting Office will time/date stamp and return
a copy of the protest provided by the protester.
(f) A protest filed with the General Accounting Office may be
dismissed for failure to comply with any of the requirements of this
section. However, a protest shall not be dismissed for failure to
comply with paragraph (d) of this section where the contracting officer
has actual knowledge of the basis of protest or the agency, in the
preparation of its report, is not otherwise prejudiced by the
protester's noncompliance.
(49 FR 49419, Dec. 20, 1984, as amended at 52 FR 46448, Dec. 8, 1987)
04 CFR 21.2 Time for filing.
(a)(1) Protests based upon alleged improprieties in a solicitation
which are apparent prior to bid opening or the time set for receipt of
initial proposals shall be filed prior to bid opening or the time set
for receipt of initial proposals. In procurements where proposals are
requested, alleged improprieties which do not exist in the initial
solicitation but which are subsequently incorporated into the
solicitation must be protested not later than the next closing date for
receipt of proposals following the incorporation.
(2) In cases other than those covered in paragraph (a)(1) of this
section, protests shall be filed not later than 10 days after the basis
of protest is known or should have been known, whichever is earlier.
(3) If a protest has been filed initially with the contracting
agency, any subsequent protest to the General Accounting Office filed
within 10 days of formal notification of or actual or constructive
knowledge of initial adverse agency action will be considered, provided
the initial protest to the agency was filed in accordance with the time
limits prescribed in paragraph (a)(1) and (a)(2) of this section, unless
the contracting agency imposes a more stringent time for filing, in
which case the agency's time for filing will control. In cases where an
alleged impropriety in a solicitation is timely protested to a
contracting agency, any subsequent protest to the General Accounting
Office must be filed within the 10-day period provided by this
paragraph.
(b) Protests which are untimely on their face may be dismissed. It
is the protesters' obligation to include in its protest all the
information needed to demonstrate its timeliness and protesters will not
be permitted to introduce for the first time in a request for
reconsideration filed pursuant to 21.12 the information upon which the
timeliness of the protest relies.
(c) The General Accounting Office, for good cause shown, or where it
determines that a protest raises issues significant to the procurement
system, may consider any protest which is not filed timely.
(49 FR 49419, Dec. 20, 1984, as amended at 52 FR 46448, Dec. 8, 1987;
56 FR 3762, Jan. 31, 1991)
04 CFR 21.3 Notice of protest, submission of agency report and time for
filing of comments on report.
(a) The General Accounting Office shall notify the contracting agency
by telephone within 1 day of the filing of a protest, and shall promptly
mail confirmation of that notification to the contracting agency and
also mail an acknowledgment of the protest to the protester. The
contracting agency shall immediately give notice of the protest to the
contractor if award has been made or, if no award has been made, to all
bidders or offerors who appear to have a substantial and reasonable
prospect of receiving an award if the protest is denied. The
contracting agency shall furnish copies of the protest submissions to
such parties with instructions to communicate further directly with the
General Accounting Office. All parties shall furnish copies of any such
communications to the contracting agency and to other participating
interested parties.
(b) Material submitted by a protester will not be withheld from any
interested party outside the government or from any federal agency which
may be involved in the protest except to the extent that the withholding
of information is permitted or required by law or regulation. If the
protester considers that the protest contains material which should be
withheld, a statement advising of this fact must be affixed to the front
page of the protest submission and the allegedly protected information
must be so identified wherever it appears.
(c) The contracting agency shall file a complete report on the
protest with the General Accounting Office within 25 days from the date
of the telephone notice of the protest from the General Accounting
Office. The report shall contain copies of all relevant documents
including, as appropriate: the protest, the bid or proposal submitted
by the protester, the bid or proposal of the firm which is being
considered for award, or whose bid or proposal is being protested, all
evaluation documents, the solicitation, including the specifications or
portions relevant to the protest, the abstract of bids or offers or
relevant portions, any other documents that are relevant to the protest,
and the contracting officer's statement setting forth findings, actions,
recommendations and any additional evidence or information deemed
necessary in determining the validity of the protest. The statement
shall be fully responsive to all allegations of the protest which the
agency contests. Pursuant to section 3553(f) of the Competition In
Contracting Act of 1984, 31 U.S.C. 3553(f) (1988), the contracting
agency shall simultaneously furnish a copy of the report to the
protester and interested parties who have responded to the notice given
under paragraph (a) of this section. The copy of the report filed with
the General Accounting Office shall also identify the parties who have
been furnished copies of the report.
(d) Copies of the report on the protest provided to the General
Accounting Office, the protester and interested parties entitled to
receive them under paragraph (c) of this section shall include all
relevant documents, subject to the following:
(1) Any party may request that the General Accounting Office issue a
protective order limiting the release of particular documents to counsel
for the protester and the interested parties entitled to receive the
documents, where the documents are claimed to contain information that
is privileged, or the release of which would result in a competitive
advantage. The request shall be filed with the General Accounting
Office, with copies furnished simultaneously to all parties as soon as
practicable after the protest is filed, but in no case more than 20 days
after the protest filing date.
(2) Requests by any party that particular documents be excluded from
coverage of the protective order, or that particular parties or
individuals be included in or excluded from the protective order, shall
be filed with the General Accounting Office, with copies furnished
simultaneously to all parties, within 2 days after receipt of a copy of
the protective order request. Any rebuttal to such a request shall be
filed with the General Accounting Office, with copies furnished
simultaneously to all parties, within 1 day after receipt of a copy of
the request. The terms of the protective order shall be established
prior to the due date for the agency report under 21.3(c).
(3) All individuals seeking access to documents covered by a
protective order issued under 21.3(d)(2) must represent a party and
shall submit an application to the General Accounting Office, with
copies furnished simultaneously to all parties, certifying that the
individual is not involved in competitive decisionmaking in connection
with federal procurements. Each application shall include a detailed
written statement supporting the certification. The certification need
not be furnished by employees of the contracting agency.
(4) Where the existence or relevance of additional documents first
becomes evident after a protective order has been issued under
21.3(d)(2), any party may request that the documents be covered by the
protective order. Any party to the protective order also may request
that individuals not already covered by the protective order be included
in the order. Requests as to additional documents or individuals shall
be filed with the General Accounting Office, with copies furnished
simultaneously to all parties. Any rebuttal to such a request must be
filed within 1 day after receipt of a copy of the request.
(5) Any violation of the terms of a protective order may result in
the imposition of such sanctions as the General Accounting Office deems
appropriate, including but not limited to referral of a possible
violation to appropriate bar associations or other disciplinary bodies,
and restricting the practice of counsel before the General Accounting
Office. A party whose protected information is improperly disclosed
shall be entitled to all remedies under law or equity, including breach
of contract.
(6) Where a protective order is not issued, and the agency withholds
relevant documents from a party for any reason, the agency shall include
in the report filed with the General Accounting Office and in the copies
of the report provided to all parties a list of the documents withheld
and the reasons for withholding them. All relevant documents and any
documents specifically requested by the protester shall be furnished to
the General Accounting Office.
(e) A protester may request in writing specific documents it
considers relevant to its protest grounds, including but also in
addition to the documents described in paragraph (c) of this section.
The request must be filed with the General Accounting Office and with
the individual or location referred to in 21.1(d) concurrent with the
filing of the protest. A request that fails to meet one or more of the
requirements of this paragraph may be dismissed.
(f) The protester may subsequently request additional documents if
the existence or relevance of such documents first becomes evident from
the agency report. Any request for such documents must be filed with
the General Accounting Office and with the contracting agency within 2
days of the protester's receipt of the agency report. The contracting
agency must respond within 5 days by filing with the General Accounting
Office and the other parties, the requested documents in accordance with
21.3(d). A request by any party that release of any additional
documents be covered by protective order shall be made in accordance
with 21.3(d)(4) within this 5-day period.
(g) The General Accounting Office shall decide within 5 days of the
receipt of the contracting agency's report under paragraph (c) of this
section or its response under paragraph (f) of this section whether any
documents withheld from the protester or other interested party shall be
released to the protester or other interested party and whether that
release should be pursuant to a protective order under 21.3(d)(2). If
the General Accounting Office determines that withheld documents should
be released, it will furnish the documents to the party or parties
entitled to receive them subject to the terms of the protective order,
if any, or advise the agency to do so.
(h) When withheld documents are so released, protester's comments on
the agency report shall be filed within 7 days of its receipt of the
released documents. If the General Accounting Office determines that
the documents were properly withheld, the protester's comments are due
within 10 days of its receipt of the agency report as under paragraph
(j) of this section.
(i) When the contracting agency fails to provide documents in
accordance with 21.3(d), the General Accounting Office may take any or
all of the following actions:
(1) Provide documents to the party or parties entitled to receive
them;
(2) Use any authority available under chapter 7 of title 31, United
States Code, to obtain the documents;
(3) Draw an inference unfavorable to the agency;
(4) Not allow responses to designated arguments or bases of protest
by the agency; or
(5) Impose such other sanctions as may be appropriate.
(j) Comments on the agency report shall be filed with the General
Accounting Office within 10 days after receipt of the report, with a
copy furnished by the commenting party to the contracting agency and
other participating interested parties. Failure of the protester to
file comments, or to file a written statement requesting that the case
be decided on the existing record, or to request an extension under this
section within the 10-day period will result in dismissal of the
protest. The General Accounting Office will assume the protester
received the agency report no later than the scheduled due date as
specified in the acknowledgment of protest furnished by the General
Accounting Office, unless otherwise advised by the protester. The
General Accounting Office upon a showing that the specific circumstances
of the protest require a period longer than 10 days for the submission
of comments on the agency report, may set a new date for the submission
of such comments. Extensions are to be considered exceptional and will
be granted sparingly.
(k) The contracting agency may request, in writing, an extension of
the 25-day report submission time period. The request shall set forth
the reasons for which the extension is needed. The General Accounting
Office will determine, in writing, whether the specific circumstances of
the protest require a period longer than 25 days for the submission of
the report and, if so, will set a new date for the submission of the
report. Extensions are to be considered exceptional and will be granted
sparingly. The agency should make its request for an extension as
promptly as possible to permit it to submit a timely report should the
General Accounting Office deny the request.
(l) The General Accounting Office may at its discretion permit the
submission of additional statements by the parties, including the
contracting agency, if the party requests to do so and the General
Accounting Office determines such statements are necessary for the fair
resolution of the protest. The General Accounting Office may at its
discretion permit the submission of statements relevant to the protest
from parties other than interested parties as defined in 21.0 (a) and
(b) such as federal agencies other than the contracting agency or trade
associations.
(m) Notwithstanding any other provision of this section, when on its
face a protest does not state a valid basis for protest or is untimely
(unless the protest is to be considered pursuant to 21.2(b)) or
otherwise not for consideration by the General Accounting Office, it
will summarily dismiss the protest without requiring the submission of
an agency report. When the propriety of a dismissal becomes clear only
after information is provided by the contracting agency or is otherwise
obtained by the General Accounting Office, it will dismiss the protest
at that time. If the General Accounting Office has dismissed the
protest, it will notify the contracting agency that a report need not be
submitted. Among the protests which may be dismissed without
consideration of the merits are those concerning the following:
(1) Contract administration. The administration of an existing
contract is within the discretion of the contracting agency. Disputes
between a contractor and the agency are resolved pursuant to the
disputes clause of the contract and the Contract Disputes Act of 1978.
41 U.S.C. 601-13 (1988).
(2) Small business size standards and standard industrial
classification. Challenges of established size standards or the size
status of particular firms, and challenges of the selected standard
industrial classification are for review solely by the Small Business
Administration. 15 U.S.C. 637(b)(6) (1988); 13 CFR 121.3-6 (1984).
(3) Small Business Certificate of Competency Program. Any referral
made to the Small Business Administration pursuant to section 8(b)(7) of
the Small Business Act, or any issuance of a certificate of competency
or refusal to issue a certificate under such section is not reviewed by
the General Accounting Office absent a showing of possible fraud or bad
faith on the part of government officials.
(4) Procurements under section 8(a) of the Small Business Act. Since
contracts are let under section 8(a) of the Small Business Act to the
Small Business Administration at the contracting officer's discretion
and on such terms as agreed upon by the procuring agency and the Small
Business Administration, the decision to place or not to place a
procurement under the 8(a) program is not subject to review absent a
showing of possible fraud or bad faith on the part of government
officials or that regulations may have been violated. 15 U.S.C. 637(a)
(1988).
(5) Affirmative determination of responsibility by the Contracting
Officer. Because a determination that a bidder or offeror is capable of
performing a contract is based in large measure or subjective judgments
which generally are not readily susceptible of reasoned review, an
affirmative determination of responsibility will not be reviewed, absent
a showing that such determination was made fraudulently or in bad faith
or that definitive responsibility criteria in the solicitation were not
met.
(6) Procurement protested to the General Services Administration
Board of Contract Appeals. Interested parties may protest a procurement
or proposed procurement of automated data processing equipment and
services to the General Services Administration Board of Contract
Appeals. After a particular procurement or proposed procurement is
protested to the Board, the procurement may not, while the protest is
before the Board, be the subject of a protest to the General Accounting
Office. An interested party who has filed a protest with the Board may
not protest the same matter to the General Accounting Office. 40 U.S.C.
759(h), as amended by section 2713 of the Competition In Contracting Act
of 1984, 40 U.S.C. 759(h) (1988).
(7) Protests not filed either in the General Accounting Office or the
contracting agency within the time limits set forth in 21.2.
(8) Procurements by agencies other than Federal agencies as defined
by section 3 of the Federal Property and Administrative Services Act of
1949, 40 U.S.C. 472. Protests of procurements of proposed procurements
by such agencies (e.g., U.S. Postal Service, Federal Deposit Insurance
Corporation, nonappropriated fund activities) are beyond the General
Accounting Office bid protest jurisdiction as established in section
2741 of the Competition In Contracting Act of 1984, 31 U.S.C. 3551-3556
(1988).
(9) Walsh-Healey Public Contracts Act. Challenges of the legal
status of a firm as a regular dealer or manufacturer within the meaning
of the Walsh-Healey Act is for determination solely by the procuring
agency, the Small Business Administration (if a small business is
involved) and the Secretary of Labor. 41 U.S.C. 35-45 (1988).
(10) Subcontractor protests. The General Accounting Office will not
consider subcontractor protests except where the subcontract is by or
for the government.
(11) Judicial proceedings. The General Accounting Office will not
consider protests where the matter involved is the subject of litigation
before a court of competent jurisdiction, unless the court requests a
decision by the General Accounting Office. The General Accounting
Office will not consider protests where the matter involved has been
decided on the merits by a court of competent jurisdiction.
(n) A protest decision may not be delayed by the failure of a party
to file a submission within the specified time limits. Consequently,
the failure of any party or contracting agenty to comply with the
prescribed time limits may result in resolution of the protest without
consideration of the untimely submission.
(49 FR 49419, Dec. 20, 1984, as amended at 52 FR 46448, Dec. 8, 1987;
56 FR 3763, Jan. 31, 1991)
04 CFR 21.4 Withholding of award and suspension of contract
performance.
Sections 3553 (c) and (d) of the Competition in Contracting Act of
1984, 31 U.S.C. 3553(c) and (d) (Supp. III 1985), set forth the
following requirements regarding the withholding of award and suspension
of contract performance when a protest is filed with the General
Accounting Office. The requirements are included here for informational
purposes.
(a) When the contracting agency receives notice of a protest from the
General Accounting Office prior to award of a contract it may not award
a contract under the protested procurement while the protest is pending
unless the head of the procuring activity responsible for award of the
contract determines in writing and reports to the General Accounting
Office that urgent and compelling circumstances significantly affecting
interests of the United States will not permit waiting for the General
Accounting Office decision. This finding may be made only if the award
is otherwise likely to occur within 30 days.
(b) When the contracting agency receives notice of a protest from the
General Accounting Office after award of a contract, but within 10 days
of the date of contract award, it shall immediately direct the
contractor to cease contract performance and to suspend related
activities that may result in additional obligations being incurred by
the government under that contract while the protest is pending. The
head of the procuring activity responsible for award of the contract may
authorize contract performance notwithstanding the pending protest if he
determines in writing and reports to the General Accounting Office that:
(1) Performance of the contract is in the government's best interest,
or
(2) Urgent and compelling circumstances significantly affecting
interests of the United States will not permit waiting for the General
Accounting Office's decision.
(49 FR 49419, Dec. 20, 1984, as amended at 52 FR 46449, Dec. 8, 1987)
04 CFR 21.5 Hearings.
(a) A request for a hearing may be made by the protester, an
interested party who has responded to the notice given under 21.3(a) or
the contracting agency. The request shall set forth the reasons why a
hearing is needed for the particular protest and should be made at the
earliest possible time in the protest proceeding. The request should
also identify any specific factual disputes essential to the resolution
of the protest which the requester believes cannot be resolved without
oral testimony. The determination to hold a hearing will be at the
discretion of the General Accounting Office.
(b) Prior to the hearing, the General Accounting Office may hold
pre-hearing conferences to discuss and resolve procedural matters
related to the protest, which may include such matters as whether a
protective order should be issued under 21.3(d)(2), whether other
restrictions on the release of documents may be imposed, which
representatives of the parties should attend the hearing and what
procedures should be used at the hearings.
(c) Hearings will be conducted by a General Accounting Office hearing
official on a date set by the General Accounting Office as soon as
practicable after receipt by the protester and participating interested
parties of the agency report and relevant documents. Although hearings
ordinarily will be conducted at the General Accounting Office in
Washington, DC, hearings may, at the discretion of the General
Accounting Office, be conducted at other appropriate locations.
Ordinarily, only one hearing will be held on a protest.
(d) All interested parties as defined in 21.0(b) shall be invited to
attend the hearing. Other participants in the procurement who are not
interested parties may be permitted to attend as observers and may
participate in the hearing only to the extent allowed by the General
Accounting Office hearing official. If privileged information or
information, the release of which would result in a competitive
advantage, is to be disclosed at the hearing, the General Accounting
Office hearing official, in his or her discretion, may restrict
attendance for all or part of the proceeding.
(e) All parties shall be represented by individuals who are
knowledgeable about the subject mater of the protest. The General
Accounting Office may designate representatives of the parties to attend
the hearing. Such representatives may be questioned by the attending
parties and the hearing official under such procedures as the General
Accounting Office may establish.
(f) Hearings shall normally be recorded and/or transcribed. If a
recording or transcript is made, any party may obtain copies at its own
expense.
(g) If the representative of any party, whose attendance has been
requested by the General Accounting Office, refuses to attend such
hearing or fails to answer a relevant question, the General Accounting
Office may draw a inference unfavorable to the party refusing to
cooperate.
(h) If a hearing is held, no separate comments under 21.3(j) should
be submitted unless specifically requested by the General Accounting
Office. All parties may file comments on the hearing and report as
appropriate with the General Accounting Office, with copies furnished to
the other parties within 7 days of the date on which the hearing was
held. The General Accounting Office may adjust the time for submission
of comments in appropriate circumstances. Failure of the protester to
file comments, or to file a written statement requesting that the case
by decided on the existing record by the date due may result in
dismissal of the protest.
(i) In the post-hearing comments, parties should reference all
testimony, admissions, or comments made during the hearing that they
consider relevant to the disposition of the protest. Where appropriate,
relevant findings of fact by the General Accounting Office hearing
official shall be part of the bid protest decision.
(56 FR 3764, Jan. 31, 1991)
04 CFR 21.6 Remedies.
(a) If the General Accounting Office determines that a solicitation,
proposed award, or award does not comply with statute or regulation, it
shall recommend that the contracting agency implement any combination of
the following remedies which it deems appropriate under the
circumstances:
(1) Refrain from exercising options under the contract;
(2) Terminate the contract;
(3) Recompete the contract;
(4) Issue a new solicitation;
(5) Award a contract consistent with statute and regulation; or
(6) Such other recommendations as the General Accounting Office
determines necessary to promote compliance.
(b) In determining the appropriate recommendation, the General
Accounting Office, shall, except as specified in paragraph (c) of this
section, consider all the circumstances surrounding the procurement or
proposed procurement including, but not limited to, the seriousness of
the procurement deficiency, the degree of prejudice to other interested
parties or to the integrity of the competitive procurement system, the
good faith of the parties, the extent of performance, cost to the
government, the urgency of the procurement and the impact of the
recommendation on the contracting agency's mission.
(c) If the head of the procuring activity makes the finding referred
to in 21.4(b)(1) that performance of the contract notwithstanding a
pending protest is in the government's best interest, the General
Accounting Office shall make its recommendation under paragraph (a) of
this section without regard to any cost or disruption from terminating,
recompeting or reawarding the contract.
(d) If the General Accounting Office determines that a solicitation,
proposed award, or award does not comply with statute or regulation it
may declare the protester to be entitled to reasonable costs of:
(1) Filing and pursuing the protest, including attorney's fees; and
(2) Bid and proposal preparation.
(e) If the contracting agency decides to take corrective action in
response to a protest, the General Accounting Office may declare the
protester to be entitled to recover reasonable costs of filing and
pursuing the protest, including attorneys' fees. The protester may file
comments with the General Accounting Office regarding whether costs
should be awarded within 10 days after being advised that the
contracting agency has decided to take corrective action. The protester
shall furnish a copy of any such comments to the contracting agency,
which may file a response within 10 days after receipt of the
protester's comments, with a copy furnished to the protester. The
General Accounting Office will issue a declaration of entitlement to
costs for each case where costs are awarded after corrective action is
taken.
(f)(1) If the General Accounting Office decides that the protester is
entitled to the recovery of such costs, the protester and the
contracting agency shall attempt to reach agreement on the amount of the
costs. The protester shall file its claim for costs, detailing and
certifying the time expended and costs incurred, with the contracting
agency within 60 days after receipt of the decision on the protest or
the declaration of entitlement to costs. Failure to file the claim
within such time shall result in forfeiture of the protester's right to
recover its costs. The General Accounting Office may consider an
untimely claim for good cause shown.
(2) The contracting agency shall issue a decision on the claim for
costs as soon as practicable after the claim is filed. If the protester
and the contracting agency cannot reach agreement within a reasonable
time, the General Accounting Office will determine the amount. In such
cases, the General Accounting Office may declare the protester to be
entitled to the costs of pursuing the claim for costs before the General
Accounting Office.
(49 FR 49419, Dec. 20, 1984, as amended at 52 FR 46449, Dec. 8, 1987;
56 FR 3764, Jan. 31, 1991)
04 CFR 21.7 Time for decision by the General Accounting Office.
(a) The General Accounting Office shall issue a decision on a protest
within 90 days from the date the protest is filed with it.
(b) In those protests for which the General Accounting Office invokes
the express option under 21.8, the General Accounting Office shall
issue a decision within 45 calendar days from the date the protest is
filed with it.
(c) Under exceptional circumstances the General Accounting Office may
extend the deadlines in paragraph (a) of this section on a case-by-case
basis by stating in writing the reasons that the specific circumstances
of the protest require a longer period.
(49 FR 49419, Dec. 20, 1984)
04 CFR 21.8 Express option.
(a) At the request of the protester, the contracting agency or an
interested party for an expeditious decision, the General Accounting
Office will consider the feasibility of using an express option.
(b) The express option will be invoked solely at the discretion of
the General Accounting Office only in those cases suitable for
resolution within 45 calendar days.
(c) Requests for the express option must be in writing and received
in the General Accounting Office no later than 3 days after the protest
is filed. The General Accounting Office will determine within 2 days of
receipt of the request whether to invoke the express option and will
notify the contracting agency, protester and interested parties who have
responded to the notice under 21.3(a).
(d) When the express option is used the filing deadlines in 21.3 and
the provisions of 21.5 shall not apply and:
(1) The contracting agency shall file a complete report with the
General Accounting Office on the protest within 10 days from the date it
receives notice from the General Accounting Office that the express
option will be used and furnish copies of the report to the protester
and interested parties who have responded to the notice under 21.3(a).
(2) Comments on the agency report shall be filed with the General
Accounting Office within 5 days after receipt of the report with a copy
furnished by the commenting party to the contracting agency and other
participating interested parties.
(3) The General Accounting Office may arrange a conference to
ascertain and clarify the material issues at any time deemed appropriate
during the protest proceeding.
(4) The General Accounting Office shall issue its decision within 45
calendar days from the date the protest is filed with it. Decisions on
protests decided under the express option may at the discretion of the
General Accounting Office and with the consent of the protester and the
contracting agency be summary in form.
(e) Where circumstances demonstrate that the case is no longer
suitable for resolution within 45 calendar days, the General Accounting
Office may establish new deadlines within the constraints established in
21.7 (a) and (c) regarding the issuance of a decision and in 21.3 (i)
and (j) regarding the submission of the agency report.
(49 FR 49419, Dec. 20, 1984, as amended at 52 FR 46449, Dec. 8, 1987;
56 FR 3764, Jan. 31, 1991)
04 CFR 21.9 Effect of judicial proceedings.
(a) The General Accounting Office will dismiss any protest where the
matter involved is the subject of litigation before a court of competent
jurisdiction, unless the court requests a decision by the General
Accounting Office. The General Accounting Office will dismiss any
protest where the matter involved has been decided on the merits by a
court of competent jurisdiction.
(b) Where the court requests a decision by the General Accounting
Office, the times for filing the agency report ( 21.3(i)), filing
comments on the report ( 21.3(k)), holding a conference and filing
comments ( 21.5), and issuing a decision ( 21.7) may be changed if the
court so orders.
(49 FR 49419, Dec. 20, 1984, as amended at 52 FR 46450, Dec. 8, 1987)
04 CFR 21.10 Signing and distribution of decisions.
Each bid protest decision shall be signed by the Comptroller General
or a designee for that purpose. A copy of the decision shall be made
available to all participating interested parties, the protester, the
head of the contracting activity responsible for the protested
procurement, the senior procurement executive of each federal agency
involved, and any member of the public.
(49 FR 49419, Dec. 20, 1984)
04 CFR 21.11 Nonstatutory protests.
(a) The General Accounting Office may consider protests concerning
sales by a federal agency or procurements by agencies of the government
other than federal agencies as defined in 21.0(b), if the agency
involved has agreed in writing to have its protests decided by the
General Accounting Office.
(b) All of the provisions of these Bid Protest Regulations shall
apply to any nonstatutory protest decided by the General Accounting
Office except for the provisions of 21.6(d) pertaining to entitlement
to reasonable costs of filing and pursuing the protest, including
attorney's fees. Sections 3553 (c) and (d) of the Competition in
Contracting Act of 1984, 31 U.S.C. 3553 (c) and (d) (Supp. III 1985),
pertaining to withholding of award and suspension of contract
performance shall not apply.
(49 FR 49419, Dec. 20, 1984, as amended at 52 FR 46450, Dec. 8, 1987)
04 CFR 21.12 Request for reconsideration.
(a) Reconsideration of a decision of the General Accounting Office
may be requested by the protester, any interested party who participated
in the protest, and any federal agency involved in the protest. The
General Accounting Office will not consider any request for
reconsideration which does not contain a detailed statement of the
factual and legal grounds upon which reversal or modification is deemed
warranted, specifying any errors of law made or information not
previously considered.
(b) Request for reconsideration of a decision of the General
Accounting Office shall be filed, with copies to any federal agency and
interested parties who participated in the protest, not later than 10
days after the basis for reconsideration is known or should have been
known, whichever is earlier. The term ''filed'' as used in this section
means receipt in the General Accounting Office.
(c) A request for reconsideration shall be subject to those bid
protest regulations consistent with the need for prompt and fair
resolution of the matter. The filing of a request for reconsideration
will not invoke Section 3553 (c) or (d) of the Competition in
Contracting Act of 1984, 31 U.S.C. 3553 (c) and (d) (Supp. III 1985)
relating to the withholding of award and the suspension of contract
performance.
(49 FR 49419, Dec. 20, 1984, as amended at 52 FR 46450, Dec. 8, 1987)
04 CFR 21.12 PART 22 -- PROCEDURES FOR DECISIONS ON APPROPRIATED FUND
EXPENDITURES WHICH ARE OF MUTUAL CONCERN TO AGENCIES AND LABOR
ORGANIZATIONS
Sec.
22.1 Purpose and scope.
22.2 Who may request a decision.
22.3 Contents of a request for a decision.
22.4 Service.
22.5 Request for an advisory opinion.
22.6 Time for issuance of decisions and advisory opinions.
22.7 Deference to grievance and arbitration procedures established
pursuant to 5 U.S.C. Chapter 71.
22.8 Discretion to decline issuance of a decision.
22.9 Distribution of decisions.
Authority: 31 U.S.C. 711 and 3529.
Source: 45 FR 55691, Aug. 21, 1980, unless otherwise noted.
Redesignated at 45 FR 68374, Oct. 15, 1980.
04 CFR 22.1 Purpose and scope.
This part sets forth the procedures which govern requests for
decisions concerning the legality of appropriated fund expenditures on
matters of mutual concern to Federal agencies and labor organizations
participating in the labor-management program established pursuant to 5
U.S.C. Chapter 71, and other Federal sector labor-management programs.
It gives labor organizations and Federal agencies equal access to GAO on
any matter of mutual concern involving the expenditure of appropriated
funds, and extends the right to request an advisory opinion on such
matters to arbitrators and other neutral parties. It also provides
guidance as to when GAO will defer to procedures established pursuant to
5 U.S.C. Chapter 71.
04 CFR 22.2 Who may request a decision.
Heads of Federal agencies and departments (or their designees), heads
of labor organizations representing Federal employees (or their
designees), and authorized certifying or disbursing officers may request
a decision under this part.
04 CFR 22.3 Contents of a request for a decision.
A request for a decision shall be in writing, dated, signed by the
requester, addressed to the Comptroller General of the United States,
General Accounting Office, Washington, DC 20548, and contain as
applicable:
(a) The name and address of the party requesting the decision;
(b) A statement of the question to be decided, a presentation of all
relevant facts, and a statement of the party's argument;
(c) Copies of all pertinent records and support documents;
(d) Notice as to whether the matter is subject to a negotiated
grievance procedure, and whether a grievance has been filed or any other
procedure has been invoked to adjudicate the same or a substantially
similar matter before the Federal Labor Relations Authority or other
administrative body or court; and
(e) A power of attorney or statement of authority to represent if
required by 4 CFR part 11.
(45 FR 55691, Aug. 21, 1980. Redesignated at 45 FR 68374, Oct. 15,
1980, and amended at 47 FR 56980, Dec. 22, 1982)
04 CFR 22.4 Service.
(a) Any person requesting a decision under this part is responsible
for promptly forwarding a copy of the request and supporting documents
to all known interested parties. Service shall be made by registered or
certified mail or in person. When service is by mail, the date of
service shall be the date when the document served is deposited in the
United States mail.
(b) A signed and dated statement of service shall be submitted along
with the request and indicate the names of the parties and persons
served, their addresses, the date of service, the nature of the document
served, and the manner in which service was made.
(c) Any party served or any other person may submit a written
response to the request for a decision to the Comptroller General of the
United States, General Accounting Office, Washington, DC 20548. Any
such response should be submitted within 20 calendar days after the date
of service of the request in order to ensure that it will be considered.
Copies of written responses shall be promptly forwarded to all know
interested parties in the manner prescribed in paragraphs (a) and (b) of
this section.
04 CFR 22.5 Request for an advisory opinion.
(a) Arbitrators and other neutral parties authorized to administer 5
U.S.C. Chapter 71 may request an advisory opinion on any matter
involving the expenditure of appropriated funds which is of mutual
concern to Federal agencies and labor organizations. A request for an
advisory opinion shall be in writing, dated, signed by the requester,
addressed to the General Counsel, U.S. General Accounting Office,
Washington DC 20548, and contain all of the information referred to in
22.3 (a) through (d). Consistent with 22.8, the General Counsel
retains the discretion to decline to issue an advisory opinion.
(b) Service of a request for an advisory opinion on the parties to
the dispute or on other interested parties is discretionary with the
requesting party. If service is made, it shall be in a manner
consistent with 22.4 (a) and (b), except that where the persons served
have been previously provided with copies of records and support
documents, the requester may instead serve them with a listing of the
documents submitted to GAO.
(c) Any party served with a copy of a request for an advisory opinion
may submit written comments on the request to the General Counsel, U.S.
General Accounting Office, Washington, DC 20548. Copies of such
comments shall be promptly served on all known interested parties.
Comments should be submitted within 20 calendar days after the date of
service of the request in order to ensure consideration by the General
Counsel.
(d) A copy of the advisory opinion of the General Counsel will be
forwarded to the requester and to all persons who have been served with
a copy of the request.
04 CFR 22.6 Time for issuance of decisions and advisory opinions.
Decisions and advisory opinions under this part will be issued as
expeditiously as possible, normally within 60 calendar days after the
expiration of the 20 day period for filing responses pursuant to
22.4(c) or 22.5(b). Where a delay is anticipated, interested parties
will be notified and provided with a tentative date for issuance of the
decision or advisory opinion.
04 CFR 22.7 Deference to grievance and arbitration procedures
established pursuant to 5 U.S.C. Chapter 71.
(a) Final and binding arbitration awards. Payments made pursuant to
an arbitration award which is final and binding under 5 U.S.C. 7122 (a)
or (b) will be considered conclusive on GAO in its settlement of the
accounts involved, and the Comptroller General will not review or
comment on the merits of such an award. However, payments made pursuant
to such an award do not constitute precedent for payment in other
instances not covered by the award.
(b) Matters subject to a grievance procedure. The Comptroller
General will not issue a decision or comment on the merits of a matter
which is subject to a negotiated grievance procedure authorized by 5
U.S.C. 7121, except upon the request of an authorized certifying or
disbursing officer, or the joint request of an agency and labor
organization. Requests will be considered joint for purposes of this
subsection when the other party has been served pursuant to 22.4 and
has not objected to submission of the matter to GAO.
(c) Claims against the United States. Except as provided in
paragraph (a) of this section, nothing in this section restricts or
limits an individual's right to have a claim against the United States
adjudicated pursuant to part 31 of Title 4, Code of Federal Regulations.
04 CFR 22.8 Discretion to decline issuance of a decision.
The Comptroller General will not issue a decision on (a) any matter
which the Comptroller General finds is more properly within the
jurisdiction of the Federal Labor Relations Authority or other
administrative body or court of competent jurisdiction, or (b) on a
matter which the Comptroller General finds is unduly speculative or
otherwise not appropriate for decision.
04 CFR 22.9 Distribution of decisions.
(a) A copy of a decision of the Comptroller General will be forwarded
to the requester and to all other interested parties of record.
(b) Any person interested in receiving copies of decisions issued
under this part may request to be placed on the distribution list
maintained for that purpose. Requests should be directed to the Chief,
Legal Information and Reference Services, U.S. General Accounting
Office, Washington, DC 20548.
04 CFR 22.9 PART 25 -- CONDUCT IN THE GENERAL ACCOUNTING OFFICE
BUILDING AND ON ITS GROUNDS
Sec.
25.1 Applicability and governing laws.
25.2 Inspection.
25.3 Admission to the GAO building.
25.4 Preservation of property.
25.5 Conformity with signs and directions.
25.6 Disturbances.
25.7 Gambling.
25.8 Alcoholic beverages and narcotics.
25.9 Soliciting, vending, and debt collection.
25.10 Posting and distributing materials.
25.11 Photographs for news, advertising, or commercial purposes.
25.12 Dogs and other animals.
25.13 Vehicular and pedestrian traffic.
25.14 Weapons and explosives.
25.15 Nondiscrimination.
25.16 Penalties.
Authority: 31 U.S.C. 783.
Source: 55 FR 2359, Jan. 24, 1990, unless otherwise noted.
04 CFR 25.1 Applicability and governing laws.
These rules and regulations, and the laws of the United States and
the District of Columbia, apply to the General Accounting Office (GAO)
Building and its grounds, 441 G Street NW., in the District of Columbia,
and to all persons while in the building or while entering or leaving
it.
04 CFR 25.2 Inspection.
Packages, briefcases, and other containers as well as vehicles and
their contents are subject to inspection while in or when being brought
into, or when being removed from the GAO Building. A full search of a
person may accompany an arrest or apprehension.
04 CFR 25.3 Admission to the GAO building.
A person may be admitted to the GAO Building after presentation of
personal identification to conduct lawful business with GAO, its
employees, or other tenants of the GAO Building and for any other
purposes authorized by the Comptroller General or his designee. During
normal working hours, the GAO Building shall be open to the public
unless specific circumstances require it to be closed to the public to
ensure the orderly conduct of government business. Outside of normal
working hours, the GAO Building shall be closed to the public unless the
Comptroller General or his designee has approved the
after-normal-working-hours use of the Building or portions thereof.
When the Building, or a portion thereof, is closed to the public,
admission will be restricted to authorized persons who shall register
upon entry and exit, and shall, when requested, display government or
other identifying credentials to the guards, security staff, or other
authorized individuals. Failure to comply with such a request is a
violation of these regulations.
04 CFR 25.4 Preservation of property.
The improper disposal of rubbish in the GAO Building or on its
grounds, the willful destruction of or damage to the GAO Building or to
its grounds or fixtures, the theft of property, the creation of any
hazard to persons or things in the GAO Building or on its grounds, the
throwing of articles of any kind from or at the GAO Building, or the
climbing on any part of the GAO Building, is prohibited.
04 CFR 25.5 Conformity with signs and directions.
Persons in the GAO Building or on its grounds shall at all times
comply with official signs of a prohibitory, regulatory, or directory
nature and with the direction of the guards, security staff, or other
authorized individuals.
04 CFR 25.6 Disturbances.
Loitering, disorderly conduct, or other conduct in the GAO Building
or on its grounds which creates loud or unusual noise or a nuisance;
which unreasonably obstructs the usual use of entrances, foyers,
lobbies, corridors, offices, elevators, escalators, stairways, or
parking areas; which otherwise impedes or disrupts the performance of
official duties by government employees; or which prevents the general
public from obtaining the administrative services provided in the GAO
Building in a timely manner, is prohibited.
04 CFR 25.7 Gambling.
Participating in games for money or other personal property or
operating gambling devices, conducting a lottery or pool, or selling or
purchasing numbers tickets in the GAO Building or on its grounds is
prohibited. This prohibition shall not apply to the vending or exchange
of chances by licensed blind operators of vending facilities for any
lottery set forth in a law of the District of Columbia and conducted by
the District of Columbia and authorized by section 2(a)(5) of the
Randolph-Sheppard Act (20 U.S.C. 107, et seq.).
04 CFR 25.8 Alcoholic beverages and narcotics.
Operating a motor vehicle while in the GAO Building, its grounds or
on its entry ramps by a person under the influence of alcoholic
beverages, narcotic drugs, hallucinogens, marijuana, barbiturates, or
amphetamines is prohibited. It is prohibited for anyone to enter or be
in the GAO Building or to be on its grounds while under the influence
of, or using, possessing, selling or distributing any narcotic drug,
hallucinogen, marijuana, barbiturate, or amphetamine. This prohibition
shall not apply in cases where the drug is being used as prescribed for
a patient by a licensed physician. It is prohibited for anyone to enter
the GAO Building or its grounds, or be on the premises while under the
influence of alcoholic beverages. The use of alcoholic beverages in the
GAO Building is prohibited except when specifically authorized by the
Comptroller General or his designee for a particular event. The
Comptroller General or his designee shall be advised of such events and
shall inform the guards and other security staff of the time and precise
locations of these events.
04 CFR 25.9 Soliciting, vending, and debt collection.
Soliciting alms, commercial or political soliciting, and vending of
all kinds, displaying or distributing commercial advertising, or
collecting private debts in the GAO Building is prohibited. This rule
does not apply to:
(a) National or local drives for funds for welfare, health, or other
purposes as authorized by the ''Manual on Fund Raising Within the
Federal Service,'' issued by the U.S. Office of Personnel Management;
(b) Concessions or personal notices posted by employees on authorized
bulletin boards;
(c) Solicitation of labor organization membership or dues authorized
by occupant agencies under the Civil Service Reform Act of 1978 (Pub. L.
95-454) or the General Accounting Office Personnel Act of 1980, Public
Law 96-191 (31 U.S.C. sec. 732(e));
(d) Occupants of space leased for commercial purposes, or made
available for cultural, educational, or recreational use under section 1
of Public Law 100-545, October 28, 1988, 102 Stat. 2727, 2728 (31
U.S.C. 782).
04 CFR 25.10 Posting and distributing materials.
Posting or affixing materials, such as pamphlets, handbills or
flyers, on bulletin boards or elsewhere in the GAO Building or on its
grounds is prohibited, except as authorized by these rules and
regulations or when such displays are conducted as part of authorized
government activities. Distribution of materials, such as pamphlets,
handbills or flyers is prohibited, unless conducted as part of
authorized government activities. Any person or organization proposing
to post or distribute materials in any part of the GAO Building or on
its grounds shall first obtain a permit from the Comptroller General or
his designee and shall conduct the posting or distribution in accordance
with the guidelines provided by the Comptroller General or his designee.
Failure to comply with those guidelines is a violation of these
regulations.
04 CFR 25.11 Photographs for news, advertising, or commercial purposes.
Photographs may be taken in the GAO Building only with the approval
or authorization of the Comptroller General or his designee.
04 CFR 25.12 Dogs and other animals.
Dogs and other animals, except seeing eye dogs or other guide dogs,
shall not be brought into the GAO Building or on its grounds for other
than official purposes.
04 CFR 25.13 Vehicular and pedestrian traffic.
(a) Drivers of all vehicles entering, leaving or while on GAO
property or in the GAO Building shall drive in a careful and safe manner
at all times and shall comply with all posted traffic signs and with the
signals and directions of the guards, security staff, or other
authorized individuals;
(b) The blocking of entrances, driveways, walks, loading platforms or
fire hydrants on GAO property is prohibited; and
(c) Except in emergencies, parking on GAO property or in the GAO
Building is not allowed without a permit. Parking in unauthorized
locations or in locations reserved for other persons, or parking
contrary to the direction of posted signs or instructions of guards is
prohibited. Vehicles parked in violation of posted restrictions or
warning signs shall be subject to removal at the owners' risk and
expense.
(d) The Comptroller General or his designee may supplement this
paragraph from time to time by issuing and posting such specific traffic
directives as may be required. When issued and posted, such directives
shall have the same force and effect as if made a part hereof. Proof
that a motor vehicle was parked in violation of these regulations or
directives may be taken as prima facie evidence that the registered
owner was responsible for the violation.
04 CFR 25.14 Weapons and explosives.
No person while entering or in the GAO Building or on its grounds
shall carry or possess firearms, other dangerous or deadly weapons,
explosives or items intended to be used to fabricate an explosive or
incendiary device, either openly or concealed, except for official
purposes.
04 CFR 25.15 Nondiscrimination.
There shall be no discrimination by segregation or otherwise against
any person or persons because of race, creed, sex, color, or national
origin in furnishing or by refusing to furnish the use of any facility
of a public nature, including all services, privileges, accommodations
and activities provided in the GAO Building.
04 CFR 25.16 Penalties.
Whoever shall be found guilty of violating any rule or regulation
governing the GAO Building is subject to a fine of not more than $500,
or imprisonment for not more than 6 months, or both. Nothing in these
rules and regulations shall be construed to abrogate any other Federal
laws applicable to the GAO Building.
04 CFR 25.16 PART 27 -- GENERAL ACCOUNTING OFFICE PERSONNEL APPEALS
BOARD -- ORGANIZATION
Sec.
27.1 The Board.
27.2 The Chairperson, Vice Chairperson.
27.3 The General Counsel.
Authority: 31 U.S.C. 753.
Source: 54 FR 24137, June 6, 1989, unless otherwise noted.
04 CFR 27.1 The Board.
The General Accounting Office Personnel Appeals Board, hereinafter
the Board, is composed of five members appointed by the Comptroller
General, in accordance with the provisions of 31 U.S.C. 751. The Board
may designate a panel of its members or an individual Board member to
take any action within the scope of the Board's authority, subject to
later reconsideration by the Board.
04 CFR 27.2 The Chairperson, Vice Chairperson.
The members of the Board shall select from among its membership a
Chairperson, hereinafter the Chair, who shall serve as the chief
executive and administrative officer of the Board. The members of the
Board may select from among its membership a Vice Chairperson,
hereinafter the Vice Chair, who shall serve in the absence of the Chair
and in other matters delegated by the Chair.
04 CFR 27.3 The General Counsel.
The Chairman shall select an individual and the Comptroller General
shall appoint the individual selected by the Chair to serve as the
General Counsel of the Board. The General Counsel, at the request of
the Board, shall investigate matters under the jurisdiction of the
Board, and otherwise assist the Board in carrying out its functions,
unless to do so would create a conflict of interest for the General
Counsel.
04 CFR 27.3 Pt. 28
04 CFR 27.3 PART 28 -- GENERAL ACCOUNTING OFFICE PERSONNEL APPEALS BOARD; PROCEDURES
04 CFR 27.3 Subpart A -- Purpose, General Definitions, and Jurisdiction
Sec.
28.1 Purpose and scope.
28.2 Jurisdiction.
28.3 General definitions.
28.4 Time limits.
04 CFR 27.3 Subpart B -- Procedures
28.8 Informal procedural advice.
28.9 Procedures -- general.
28.10 Notice of appeal rights.
28.11 Filing a charge with the General Counsel.
28.12 General Counsel procedures.
28.15 Scope and policy.
28.16 Revocation, amendment or waiver of rules.
28.17 Internal appeals of Board employees.
28.18 Filing a petition for review and request for hearing with the
Board.
28.19 Content of GAO response.
28.20 Number of pleadings, service, and response.
28.21 Prehearing procedures and motions practice.
28.22 Administrative judges.
28.23 Disqualification of administrative judges.
28.24 Sanctions.
28.25 Representation.
28.26 Witness fees.
28.27 Intervenors.
28.28 Substitution.
28.29 Consolidation or joinder.
28.40 Statement of purpose.
28.41 Explanation, scope, and methods.
28.42 Voluntary discovery and protective orders.
28.43 Compelling discovery.
28.44 Taking of depositions.
28.45 Admissions of fact and genuineness of documents.
28.46 Motion for subpoena.
28.47 Motion to quash.
28.48 Service.
28.49 Return of service.
28.50 Enforcement.
28.55 Scheduling the hearing.
28.56 Hearing procedures, conduct, and copies of exhibits.
28.57 Public hearings.
28.58 Transcript.
28.59 Official record.
28.60 Briefs.
28.61 Burden and degree of proof.
28.62 Closing the record.
28.65 Service of documents.
28.66 Admissibility.
28.67 Production of statements.
28.68 Stipulations.
28.69 Judicial notice.
28.80 Explanation.
28.81 Criteria for certification.
28.82 Procedure.
28.86 Board procedures; recommended decisions.
28.87 Board procedures; initial decisions.
28.88 Board procedures; enforcement.
28.89 Attorney fees and costs.
28.90 Board procedures; judicial review.
04 CFR 27.3 Subpart C -- Oversight Procedures
28.91 General.
28.92 Oversight of GAO EEO program.
04 CFR 27.3 Subpart D -- Special Procedures-Equal Employment
Opportunity (EEO) Cases
28.95 Purpose and scope.
28.96 Applicability of general procedures.
28.97 Class actions in EEO cases.
28.98 Individual charges in EEO cases.
28.99 Petitions for review to the Board in EEO cases.
28.100 Civil action -- discrimination complaints.
28.101 Effect on administrative processing.
04 CFR 27.3 Subpart E -- Special Procedures -- Representation
Proceedings
28.110 Purpose.
28.111 Scope.
28.112 Who may file petitions.
28.113 Contents of representation petitions.
28.114 Pre-investigation proceedings.
28.115 Processing petitions.
28.116 Conduct of elections.
04 CFR 27.3 Subpart F -- Special Procedures -- Unfair Labor Practices
28.120 Authority of the Board.
28.121 Unfair labor practices -- Board procedures.
28.122 Negotiability issues -- compelling need.
28.123 Standards of Conduct for Labor Organizations.
28.124 Review of arbitration awards.
04 CFR 27.3 Subpart G -- Corrective Action, Disciplinary and Stay
Proceedings
28.130 General authority.
28.131 Corrective action proceedings.
28.132 Disciplinary proceedings.
28.133 Stay proceedings.
04 CFR 27.3 Subpart H -- Appeals by Members of the Senior Executive
Service
28.140 Personnel actions involving SES members.
28.141 Performance-based actions.
04 CFR 27.3 Subpart I -- Ex Parte Communications
28.145 Policy.
28.146 Explanation and definitions.
28.147 Prohibited communications.
28.148 Reporting of communications.
28.149 Sanctions.
04 CFR 27.3 Subpart J -- Savings Provisions
28.155 Savings provisions.
Authority: 31 U.S.C. 753.
Source: 46 FR 35478, July 9, 1981, unless otherwise noted.
04 CFR 27.3 Subpart A -- Purpose, General Definitions, and Jurisdiction
Source: 54 FR 24139, June 6, 1989, unless otherwise noted.
04 CFR 28.1 Purpose and scope.
(a) The purpose of these rules is to establish the procedures to be
followed:
(1) By the GAO, in its dealings with the Board;
(2) By employees of the GAO or applicants for employment by the GAO,
or by groups or organizations claiming to be affected adversely by the
operations of the GAO personnel system;
(3) By employees or organizations petitioning for protection of
rights or extension of benefits granted to them under Subchapters III
and IV of Chapter 7 of Title 31, U.S.C.; and
(4) By the Board, in carrying out its responsibilities under
Subchapters III and IV of Chapter 7 of Title 31, U.S.C.
(b) The scope of the Board's operations encompasses the investigation
and, where necessary, adjudication of cases arising under 31 U.S.C. 753.
In addition, the Board has authority for oversight of the equal
employment opportunity program at GAO. This includes the review of
policies and evaluation of operations as they relate to EEO objectives
and, where necessary, the ordering of corrective action for violation of
or inconsistencies with equal employment opportunity laws.
(c) The intent of Subchapters III and IV of Chapter 7 of Title 31,
U.S.C. is to provide GAO independence in administering its labor and
employee relations function, while ensuring that ''GAO employees are
entitled to the same rights and protection as employees in the executive
branch'' H.R. Rep. No. 96-494, p. 15 (1980).
(d) In considering any procedural matter not specifically addressed
in these rules, the Board will be guided, but not bound, by the Federal
Rules of Civil Procedure.
04 CFR 28.2 Jurisdiction.
(a) The Board has jurisdiction to hear and decide the following
actions brought by the General Counsel:
(1) Proceedings in which the General Counsel seeks to stay a
personnel action based upon an alleged prohibited personnel practice
that has occurred or is about to occur;
(2) Proceedings in which the General Counsel seeks corrective action
for an alleged prohibited personnel practice; and
(3) Proceedings in which the General Counsel seeks discipline for a
GAO employee who has allegedly committed a prohibited personnel practice
or who has allegedly engaged in prohibited political activity.
(b) The Board has jurisdiction to hear any action brought by any
person or group of persons in the following subject areas:
(1) An officer or employee appeal involving a removal, suspension for
more than 14 days, reduction in grade or pay, or furlough of not more
than 30 days;
(2) A prohibited personnel practice under 31 U.S.C. 732(b)(2);
(3) A decision of an appropriate unit of employees for collective
bargaining;
(4) An election or certification of a collective bargaining
representative;
(5) A matter appealable to the Board under the labor-management
relations program under 31 U.S.C. 732(e), including an unfair labor
practice under 31 U.S.C. 732(e)(1);
(6) An action involving discrimination prohibited under 31 U.S.C.
732(f)(1); and
(7) An issue about GAO personnel which the Comptroller General by
regulation decides the Board shall resolve.
(c) Limitations on appellate jurisdiction, collective bargaining
agreements and election of procedures.
(1) Where an employee is covered by a collective bargaining agreement
which provides for an exclusive negotiated grievance procedure for
actions involving discrimination under 5 U.S.C. 7702, reduction-in-grade
or adverse actions under either 5 U.S.C. 4303 or 7512, the employee may
raise the matter under either the negotiated grievance procedure or
under the Board's appellate procedures but not both. However, selection
of the negotiated grievance procedure in no manner prejudices the right
of an employee to request the Board to review the final decision from
the negotiated grievance procedure in which prohibited discrimination
was at issue. Other matters which are covered by a negotiated grievance
procedure under 5 U.S.C. 7121 may not be appealed to the Board.
(2) Election of procedure. Where a covered employee has initially
elected to use an exclusive negotiated grievance procedure, he/she may
not appeal the matter to the Board. This election, however, does not
prohibit an employee from requesting Board review of a decision
involving discrimination, as described in paragraph (c)(1) of this
section.
04 CFR 28.3 General definitions.
In this part --
Administrative Judge means any individual designated by the Board to
preside over a hearing conducted on matters within its jurisdiction. An
administrative judge may be a member of the Board, an employee of the
Board, or any individual qualified by experience or training to conduct
a hearing and is appointed to do so by the Board. When a panel of
Members or the full Board is hearing a case, the Chair shall designate
one of the members to exercise the responsibilities of the
administrative judge in the proceedings.
Board means the General Accounting Office Personnel Appeals Board as
established by 31 U.S.C. 751.
Charge means any request filed with the PAB General Counsel on any
matters within the jurisdiction of the Board, under the provisions of
Subchapter IV of Chapter 7 of Title 31, United States Code.
Charging Party means any person filing a charge with the General
Counsel for investigation.
Comptroller General means the Comptroller General of the United
States.
Days means calendar days.
Exceptions to the Recommended Decision means a request filed by a
party with the Board that objects to the findings and/or conclusions of
a recommended decision.
Executive Assistant means the Executive Assistant of the Board.
GAO means the General Accounting Office.
General Counsel means the General Counsel of the Board, as provided
for under 31 U.S.C. 752.
Initial Decision means the adjudicatory statement of a case that is
issued by an administrative judge who is a member of the Board.
Person means an employee or applicant for employment, a labor
organization or the GAO.
Petition for Review means any request filed with the Board for action
to be taken on matters within the jurisdiction of the Board, under the
provisions of Subchapter IV of Chapter 7 of Title 31, United States
Code.
Petitioner means any person filing a petition for review for Board
consideration.
Pleading means a document that initiates a cause of action before the
Board, responds to a cause of action, amends a cause of action, responds
to an amended cause of action, requests reconsideration of a decision,
responds to a request for reconsideration, requests reconsideration of a
recommended decision or responds to such a request.
Recommended Decision means the adjudicatory statement of a case that
is issued by an administrative judge, who is not a member of the Board.
Request for Reconsideration means a request filed with the Board for
review of an initial decision.
Solicitor means the attorney appointed by the Board to provide advice
and assistance to the Board in carrying out its adjudicatory functions
and to otherwise provide assistance as directed by the Board.
04 CFR 28.4 Time limits.
(a) To compute the number of days for filing under these rules, the
first day shall be the day after the event from which the time period
begins to run and the last day for filing shall be included in the
computation. When the last day falls on a Saturday, Sunday or federal
government holiday, then the filing deadline will be the next regular
federal government workday.
(b) The Board may waive the time limits in these rules for good cause
shown.
04 CFR 28.4 Subpart B -- Procedures
Source: 54 FR 24140, June 6, 1989, unless otherwise noted.
04 CFR 28.8 Informal procedural advice.
(a) Persons may seek informal advice on all aspects of the Board's
procedures by contacting the Board's Solicitor or General Counsel.
(b) Informal procedural advice will be supplied within the limits of
available time and staff.
04 CFR 28.9 Procedures -- general.
(a) The procedures described in this subpart are generally applicable
to the processing of all matters presented for consideration by the
Board. Where special procedures are to be followed, they will be
prescribed in those subsequent subparts to which they are particularly
applicable.
(b) All pleadings, motions, and attachments thereto shall not exceed
60 pages. The Board may waive this limitation for good cause shown.
Pleadings, motions, and attachments thereto filed with the Board shall
be on standard letter-size paper (8 1/2 x 11).
04 CFR 28.10 Notice of appeal rights.
(a) The GAO shall be responsible for ensuring that employees are
routinely advised of their appeal rights to the Board and that
employees, who are the object of an adverse or performance-based action,
are, at the time of the action, adequately advised of their appeal
rights to the Board. The notice in adverse and performance-based
actions must be accompanied by proof of service.
(b) Notice in adverse and performance-based actions shall include:
(1) Time limits for appealing to the Board and the address of the
Board;
(2) A copy of the Board's regulations; and
(3) Notice of the right to representation and right to a hearing.
04 CFR 28.11 Filing a charge with the General Counsel.
(a) Who may file.
(1) Any GAO employee or applicant for employment claiming to be
affected adversely by GAO action or inaction which is within the Board's
jurisdiction under Subchapter IV of Chapter 7 of Title 31, United States
Code.
(2) Non-EEO class actions. One or more employees or applicants for
employment may file a charge as representative of a class of employees
or applicants for employment in any matter within the Board's
jurisdiction. See 28.97 for EEO class actions.
(b) When to file.
(1) Charges relating to adverse and performance-based actions must be
filed within 20 days after the effective date of the action.
(2) Charges relating to other personnel actions must be filed within
20 days after the effective date of the action or 20 days after the
charging party knew or should have known of the action.
(3) Charges relating to adverse and performance-based actions
(paragraph (b)(1) of this section) and other personnel actions
(paragraph (b)(2) of this section) that also raise an allegation of
prohibited discrimination must be filed in accordance with paragraph
(b)(4) of this section.
(4) Charges relating to discrimination complaints shall be filed any
time after 120 days have passed since the filing of a formal complaint
of discrimination with GAO, except that, when GAO has issued a final
agency decision, the charge shall be filed within 20 days from receipt
by the charging party of the final agency decision.
(5) Charges relating to continuing violations shall be filed at any
time.
(c) How to file. Charges shall be filed at the Office of the General
Counsel (Academy Building, 717 Fifth Street, NW., Washington, DC) or by
mail addressed to the General Counsel, Personnel Appeals Board, Academy
Building, General Accounting Office, Washington, DC 20548. When filed
by mail, the postmark shall be the date of filing for all submissions to
the General Counsel.
(d) What to file. The charging party shall include in any charge the
following information:
(1) Name of the charging party or a clear description of the group or
class of persons on whose behalf the charge is being filed;
(2) The names and titles of persons, if any, responsible for actions
the charging party wishes to have the General Counsel review;
(3) The actions complained about, including dates, reasons given, and
internal appeals taken;
(4) The charging party's reasons for believing the actions to be
improper;
(5) Remedies sought by the charging party;
(6) Name and address of the representative, if any, who will act for
the charging party in any further stages of the matter; and
(7) Signature of the charging party or the charging party's
representative.
(e) The General Counsel shall not represent a petitioner when the
only issue is attorney fees. When attorney fees are the only issue
raised in a charge to the General Counsel, the General Counsel shall
transmit the charge to the Board for processing under 28.18 through
28.88 as a petition for review.
04 CFR 28.12 General Counsel procedures.
(a) The General Counsel shall serve on the agency a copy of the
charge, investigate the matters raised in a charge, refine the issues
where appropriate, and attempt to settle all matters at issue.
(b) The General Counsel's investigation may include gathering
information from GAO and interviewing and taking statements from
witnesses. Employees of GAO who are requested by the General Counsel to
participate in any investigation under these Rules shall be on official
time.
(c) Following the investigation, the General Counsel shall provide
the charging party with a Right to Appeal Letter. Accompanying this
letter will be a statement of the General Counsel advising the charging
party of the results of the investigation. This statement of the
General Counsel is not subject to discovery and may not be introduced
into evidence before the Board.
(d) If, following the investigation, the General Counsel determines
that there are not reasonable grounds to believe that the charging
party's rights under Subchapter IV of Chapter 7 of Title 31, United
States Code, have been violated, then the General Counsel shall not
represent the charging party. If the General Counsel determines that
there are reasonable grounds to believe that the charging party's rights
under Subchapter IV of Chapter 7 of Title 31, United States Code, have
been violated, then the General Counsel shall represent the charging
party, unless the charging party elects not to be represented by the
General Counsel. Any charging party may represent himself/herself or
obtain other representation.
(e) When the charging party elects to be represented by the General
Counsel, the General Counsel is to direct the representation in the
charging party's case. The charging party may also retain a private
representative in such cases. However, the role of a private
representative is limited to assisting the General Counsel as the
General Counsel determines to be appropriate.
(f) When the General Counsel is not participating in a case, the
General Counsel may request permission to intervene with regard to any
issue in which the General Counsel finds a significant public interest
with respect to the preservation of the merit system.
04 CFR 28.12 Hearing Procedures for Cases Before the Board -- General
04 CFR 28.15 Scope and policy.
The rules in this subpart apply to actions brought by any person,
except as otherwise provided in 28.17. These rules also apply to
actions brought by the General Counsel, except as otherwise provided in
Subpart G. It is the policy of the Board that these rules shall be
applied in a manner which expedites the processing of each case, but
with due regard to the rights of all parties.
04 CFR 28.16 Revocation, amendment or waiver of rules.
(a) The Board may revoke or amend these regulations by publishing
proposed changes within GAO and providing for a comment period of not
less than 30 days. Following the comment period, any changes to the
rules are final once they are published in the Federal Register. Notice
of publication in the Federal Register must be published throughout GAO.
(b) An administrative judge or the Board may waive a Board regulation
in any case for good cause shown if application of the regulation is not
required by statute.
04 CFR 28.17 Internal appeals of Board employees.
(a) The provisions of the GAO Personnel Act, its implementing
regulations, and the Board's procedural rules apply in the same manner
to employees of the Board as they do to other GAO employees, with the
following exceptions.
(1) The General Counsel has no cause of action in his/her own
employment matters except for the statutory bases such as prohibited
discrimination and prohibited personnel practices, as described at 31
U.S.C. 732 (b)(2) and (f)(1).
(2) When an employee of the Board has an EEO complaint, the employee
shall consult either with the Solicitor or with the General Counsel and
seek advice on filing an EEO complaint. If the matter cannot be
resolved within 10 days, the Solicitor or General Counsel shall notify
the employee of his/her right to file an EEO complaint. The employee
shall have 20 days from receipt of this notice to file an EEO complaint
with the General Counsel. Upon receipt of an EEO complaint, the General
Counsel shall arrange for processing in accordance with paragraph (b) of
this section.
(3) When an employee of the Board has any other issue that would be
subject to the Board's jurisdiction, the employee shall file a charge
with the General Counsel and the General Counsel shall arrange for
processing in accordance with paragraph (b) of this section.
(b) The responsibilities and functions of the Board's General Counsel
will be assumed by an attorney who is not a current or former employee
of the Board or the GAO. The services of that attorney, who shall be
knowledgeable in federal personnel matters, will be paid for by the
Board. The attorney will be selected by an impartial body as described
below.
(1) If agreed to by the Special Counsel of the Merit Systems
Protection Board (MSPB) (or the EEOC, as appropriate), that body will
appoint and detail a person from among its attorneys to perform the
functions of the General Counsel.
(2) If the MSPB Special Counsel (or the EEOC) does not agree to such
a procedure, an appointment of an attorney will be sought from the
Federal Mediation and Conciliation Service (FMCS).
(3) In any event, whatever person is so appointed, he/she will
possess all of the powers and authority possessed by the General Counsel
in employee appeal cases.
(c) The adjudication responsibilities and functions of the Board will
be assumed by a person who is not a current or former employee of the
Board or the GAO. The services of that person, who shall be
knowledgeable in federal personnel matters, will be paid for by the
Board. The person will be selected by an impartial body as described
below.
(1) If agreed to by the MSPB (or the EEOC, as appropriate), that body
will appoint and detail one of its administrative law judges or
administrative judges to perform the Board's adjudicative functions.
(2) If the MSPB (or the EEOC) does not agree to such a procedure, an
appointment of an arbitrator will be sought from the FMCS.
(3) In any event, whatever person is so appointed, he/she will
possess all of the powers and authority possessed by the Board in
employee appeals cases. The decision of the administrative law judge,
administrative judge, or arbitrator shall be a final decision of the
Board, in the same manner as if rendered by the Board under 4 CFR
28.86(e). Judicial review of the decision may be pursuant to 4 CFR
28.88.
(d) Any employee of the Board who believes that he/she is aggrieved
by any personnel matter that is not reviewable by the Board under 31
U.S.C. 753(a) may file a grievance as follows:
(1) Informal Step. The employee must discuss the complained of
incident with his/her supervisor as soon as possible after the
complained of incident.
(2) Step 1. If the supervisor is unable to resolve the matter
informally to the satisfaction of the employee, then the employee may
file a formal grievance with the supervisor. The formal grievance must
be filed by the employee with the supervisor within 20 days after the
complained of incident. The supervisor must respond to the employee in
writing within 10 days.
(3) Step 2.
(i) If the employee is not satisfied with the supervisor's response,
the employee has 10 days in which to apppeal to the Chair. In this
appeal, the employee must forward to the Chair the formal grievance, the
supervisor's response and a brief statement from the employee explaining
why the supervisor's response is not satisfactory.
(ii) The Chair or another member designated by the Chair, shall meet
with the employee and discuss the matter of concern within 10 days after
receipt of the step 2 appeal. The Chair or designee shall issue a
written resolution of the grievance.
(4) Step 3. Within 10 days after receipt of the Chair's resolution
or within 60 days after initiating step 2, whichever occurs first, the
employee may request that the full Board review the grievance. The
decision of the full Board is the final decision in the matter.
04 CFR 28.18 Filing a petition for review and request for hearing with
the Board.
(a) Who may file. Any GAO employee or applicant for employment, who
has received a Right to Appeal Letter from the General Counsel and who
is claiming to be affected adversely by a GAO action or inaction which
is within the Board's jurisdiction under Subchapter IV of Chapter 7 of
Title 31, United States Code, may file a petition for review.
(b) When to file. Petitions for review must be filed within 20 days
after receipt by the charging party of the Right to Appeal Letter from
the General Counsel.
(c) How to file. Petitions shall be filed as follows: by hand
delivery at the Office of the Board (Academy Building, 717 Fifth Street,
NW., Washington, DC) or by mail to the Personnel Appeals Board, Academy
Building, General Accounting Office, Washington, DC 20548. When filed
by mail, the postmark shall be the exclusive date of filing for all
submissions to the Board.
(d) What to file. The petition for review shall include the
following information:
(1) Name of the petitioner, or a clear description of the group or
class of persons on whose behalf the petition is being filed;
(2) The names and titles of persons, if any, responsible for actions
the petitioner wishes to have the Board review;
(3) The actions being complained about, including dates, reasons
given, and internal appeals taken;
(4) Petitioner's reasons for believing the actions to be improper;
(5) Remedies sought by the petitioner;
(6) Name and address of the representative, if any, who will act for
the petitioner in any further stages of the matter;
(7) Whether a hearing is requested; and
(8) Signature of the petitioner or petitioner's representative.
(e) Failure to raise a claim or defense in the petition for review
shall not bar its submission later unless to do so would prejudice the
rights of the other parties and unduly delay the proceedings.
(f) Right to hearing. In an unfair labor practice proceeding there
will be a hearing conducted by the administrative judge. In all other
proceedings, the employee/petitioner has a right to a hearing or may
request a determination based on the record. A request by GAO for a
hearing may be granted at the discretion of the administrative judge. A
denial of such a request shall state the basis for the denial.
(g) Non-EEO class actions. One or more employees may file a petition
for review as representatives of a class of employees in any matter
within the Board's jurisdiction. For the purpose of determining whether
it is appropriate to treat an appeal as a class action, the
administrative judge will be guided, but not controlled, by the
applicable provisions of the Federal Rules of Civil Procedure. See
28.97 for EEO class actions.
04 CFR 28.19 Content of GAO response.
(a) Within 20 days after receiving a copy of a petition for review,
the GAO shall file a response containing at least the following:
(1) A statement of GAO's position on each of the issues raised by the
petitioner, including admissions, denials or explanations of each
allegation made in the petition and any other defenses to the petition.
(2) Designation of, and signature by, the GAO representative
authorized to act for the GAO in the matter.
(b) Failure to raise a claim or defense in the response shall not bar
its submission later unless to do so would prejudice the rights of the
other parties and unduly delay the proceedings.
04 CFR 28.20 Number of pleadings, service, and response.
(a) Number. One original and seven copies of all pleadings,
including the petition for review, and amendments to the petition, the
response to the petition for review and amendments to the response, the
request for reconsideration or the response to a request for
reconsideration, must be filed with the Board.
(b) Service -- (1) Service by the Board. The Board will serve copies
of a petition for review upon the parties to the proceeding by mail.
The Board will attach a service list indicating the names and addresses
of the parties to the proceeding or their designated representatives.
The Board will not serve copies of any pleadings, motions, or other
submissions by the parties after the initial petition for review.
(2) Service by the parties. The parties shall serve on each other
one copy of all pleadings other than the initial petition for review.
Service shall be made by mailing or by delivering personally a copy of
the pleading to each party on the service list previously provided by
the Board. Each pleading must be accompanied by a certificate of
service specifying how and when service was made. It shall be the duty
of all parties to notify the Board and one another in writing of any
changes in the names or addresses on the service list.
(c) Time limitations for response to pleadings. Unless otherwise
specified by the administrative judge or this Subpart, a party shall
have 20 days from receipt to respond to a pleading served by another
party.
(d) Size limitations. Size limitations are set forth at 28.9(b).
04 CFR 28.21 Prehearing procedures and motions practice.
(a) Amendments to petitions. The Board, at its discretion, may allow
amendments to a petition for review as long as all persons who are
parties to the proceeding have adequate notice to prepare for the new
allegations and if to do so would not prejudice the rights of the other
parties and unduly delay the proceedings.
(b) Motions practice. When an action is before an administrative
judge, motions of the parties shall be filed with the administrative
judge and shall be in writing except for oral motions made during the
hearing. An original and 3 copies of written motions shall be filed
with the administrative judge. When an action is before the Board, an
original and 7 copies of any motion shall be filed with the Board.
Copies shall be served simultaneously upon the other parties to the
proceeding. An original and 3 copies of responses in opposition to
written motions must be filed with the administrative judge, or if the
action is before the Board an original and 7 copies must be filed with
the Board, and served simultaneously upon the other parties to the
proceeding within 20 days of receipt of the motion, unless the
administrative judge requires a shorter response time. All written
motions and responses thereto shall include a proposed order, where
applicable. A certificate of service will be filed with all motions and
responses thereto showing service by mail or personal delivery of the
motion to the other parties. Additional responses to the motion or to
the response to the motion by either party may be filed only with the
approval of the administrative judge. Motions for extension of time
will be granted only for good cause shown.
(c) Order for a hearing. The administrative judge shall order a
hearing or deny a request for a hearing in accordance with 28.18(f).
The administrative judge may, at his/her own initiative, order a
hearing. When there is no hearing, the administrative judge may issue a
decision and order based upon the written submissions of the parties.
The administrative judge may allow oral argument at his/her discretion.
(d) General Counsel Settlement. Where the General Counsel under
28.12(a) transmits a settlement, which has been agreed to by the
parties, the settlement agreement shall be the final disposition of the
case.
04 CFR 28.22 Administrative judges.
(a) Exercise of authority. Administrative judges may exercise
authority as provided in paragraph (b) of this section upon their own
initiative or upon the motion of a party, as appropriate.
(b) Authority. Administrative judges shall conduct fair and
impartial hearings and take all necessary action to avoid delay in the
disposition of all proceedings. They shall have all powers necessary to
that end unless otherwise limited by law, including, but not limited to,
the authority to:
(1) Administer oaths and affirmations;
(2) Issue subpoenas in accordance with 28.46;
(3) Rule upon offers of proof and receive relevant evidence;
(4) Rule upon discovery issues as appropriate under 28.42 through
28.45;
(5) Convene a hearing as appropriate, regulate the course of the
hearing, maintain decorum and exclude from the hearing any disruptive
persons;
(6) Exclude from the hearing any witness whose later testimony might
be colored by testimony of other witnesses or any persons whose presence
might have a chilling effect on a testifying witness;
(7) Rule on all motions, witness and exhibit lists and proposed
findings;
(8) Require the filing of memoranda of law and the presentation of
oral argument with respect to any question of law;
(9) Order the production of evidence and the appearance of witnesses
whose testimony would be relevant, material and nonrepetitious;
(10) Impose sanctions as provided under 28.24 of this part;
(11) Hold prehearing conferences for the settlement and
simplification of issues; and
(12) File recommended or initial decisions, as appropriate.
04 CFR 28.23 Disqualification of administrative judges.
(a) In the event that an administrative judge considers
himself/herself disqualified, he/she shall withdraw from the case,
stating on the record the reasons therefor, and shall immediately notify
the Board of the withdrawal.
(b) Any party may file a motion requesting the administrative judge
to withdraw on the basis of personal bias or other disqualification and
specifically setting forth the reasons for the request. This motion
shall be filed as soon as the party has reason to believe there is a
basis for disqualification.
(c) The administrative judge shall rule on the motion. If the motion
is denied, the party requesting withdrawal may request certification of
the issue to the Board as an interlocutory appeal under 28.80 through
28.82. Failure of the party to request certification shall be considered
a waiver of the request for withdrawal.
04 CFR 28.24 Sanctions.
The administrative judge may impose sanctions upon the parties as
necessary to serve the ends of justice, including but not limited to the
instances set forth in this section.
(a) Failure to comply with an order. When a party fails to comply
with an order, including an order for taking a deposition, the
production of evidence within the party's control, a request for
admission, and/or production of witnesses, the administrative judge may:
(1) Draw an inference in favor of the requesting party on the issue
related to the information sought.
(2) Prohibit the party failing to comply with such order from
introducing evidence concerning, or otherwise relying upon, testimony
relating to the information sought.
(3) Permit the requesting party to introduce secondary evidence
concerning the information sought.
(4) Strike any part of the pleadings or other submissions of the
party failing to comply with such request.
(b) Failure to prosecute or defend. If a party fails to prosecute or
defend an appeal, the administrative judge may dismiss the action with
prejudice or rule for the petitioner.
(c) Failure to make timely filing. The administrative judge may
refuse to consider any motion or other action which is not filed in a
timely fashion in compliance with this subpart.
04 CFR 28.24 Parties, Practitioners, and Witnesses
04 CFR 28.25 Representation.
(a) All parties to an appeal may be represented in any matter
relating to the appeal. The parties shall designate their
representatives, if any, in the petition for review or responsive
pleading. Any subsequent changes in representation shall also be in
writing and submitted to the administrative judge.
(b) A party may choose any representative so long as the person is
willing and available to serve. However, the other party or parties may
challenge the representative on the grounds of conflict of interest or
conflict of position. This challenge must be made by motion to the
administrative judge within 10 days after receipt of the notice of
designation, and shall be ruled upon by the administrative judge prior
to any further proceedings in the case. These procedures apply equally
to original and subsequent designations of representatives. In the
event the selected representative is disqualified, the party affected
shall be given a reasonable time to obtain another representative.
(c) The administrative judge, on his/her own motion, may disqualify a
party's representative on the grounds described in paragraph (b) of this
section.
04 CFR 28.26 Witness fees.
The costs involved in the appearance of witnesses in any Board
proceeding shall be allocated as follows:
(a) Persons employed by the GAO shall, upon request by the
administrative judge to GAO, be made available to participate in the
hearing and shall be in official duty status for this purpose and shall
not receive witness fees. Payment of travel and per diem expenses shall
be governed by applicable laws and regulations.
(b) Employees of other federal agencies called to testify at a Board
proceeding shall, at the request of the administrative judge and with
the approval of the employing agency, be in official duty status during
any period of absence from normal duties caused by their testimony, and
shall not receive witness fees. Payment of travel and per diem expenses
shall be governed by applicable laws and regulations. In the event that
the employing agency refuses the request to release the employee-witness
in an official duty status, the employee-witness may be paid a witness
fee in accordance with paragraph (d) of this section.
(c) When the General Counsel is the petitioner or is representing the
petitioner, the General Counsel shall pay witness fees and arrange for
travel and per diem expenses consistent with applicable law and
regulation.
(d) Witnesses who are not covered by paragraphs (a), (b) or (c) of
this section are entitled to the same witness fees as those paid to
subpoenaed witnesses under 28 U.S.C. 1821. The fees, in the first
instance, shall be paid by the party requesting their appearance,
subject to a subsequent decision otherwise in accordance with 28.89.
Such fees shall be tendered to the witness at the time the subpoena is
served, or, when the witness appears voluntarily, at the time of
appearance. A federal agency or corporation is not required to tender
witness fees in advance. Payment of travel and per diem expenses shall
be governed by applicable law and regulation.
04 CFR 28.27 Intervenors.
(a) Intervenors are persons who are allowed to participate in a
proceeding because the proceeding, or its outcome, may affect their
rights or duties. A request to intervene may be made by motion to the
administrative judge under paragraph (c) of this section.
(b) Any person may, by motion, request the administrative judge for
permission to intervene. The motion shall state the reasons why the
person should be permitted to intervene.
(c) A motion for permission to intervene will be granted where a
determination is made by the administrative judge or Board that the
requestor will be affected directly by the outcome of the proceeding,
including any person alleged to have committed a prohibited personnel
practice under 5 U.S.C. 2302(b). Denial of a motion for intervention may
be appealed to the Board.
(d) Intervenors who are granted permission to intervene will be
considered full parties to the hearing and will have the same rights and
duties as a party with two exceptions:
(1) Intervenors will not have an independent right to a hearing.
(2) Intervenors may participate in Board proceedings only on the
issues affecting them, as determined by the administrative judge or
Board.
04 CFR 28.28 Substitution.
(a) If a petitioner dies or is otherwise unable to pursue the appeal,
the action shall be completed upon substitution of proper parties or by
the representative of the original party. Substitution will not be
permitted where the interests of the original party have terminated
because of death or other disability.
(b) A motion for substitution shall be filed by the representative or
proper party within 90 days after the death of the petitioner or other
disabling event.
04 CFR 28.29 Consolidation or joinder.
(a) Explanation. (1) Consolidation may occur where two or more
parties have cases which should be united because they contain identical
or similar issues or in such other circumstances as justice requires.
(2) Joinder may occur where one person has two or more appeals
pending and they should be united for consideration. For example, a
single appellant who has one appeal pending challenging a 30-day
suspension and another appeal pending challenging a subsequent dismissal
might have the cases joined.
(b) Action by administrative judge. An administrative judge may
consolidate or join cases on his/her own initiative or on the motion of
a party if to do so would expedite processing of the cases and not
adversely affect the interests of the parties.
04 CFR 28.29 Discovery
04 CFR 28.40 Statement of purpose.
Proceedings before the Board shall be conducted as expeditiously as
possible with due regard to the rights of the parties. Discovery is
designed to enable a party to obtain relevant information needed for
presentation of the party's case. These regulations are intended to
provide a simple method of discovery. They will be interpreted and
applied so as to avoid delay and to facilitate adjudication of the case.
The parties are expected to initiate and complete needed discovery with
a minimum amount of Board intervention.
04 CFR 28.41 Explanation, scope, and methods.
(a) Explanation. Discovery is the process apart from the hearing
whereby a party may obtain relevant information from another person,
including a party, which has not otherwise been provided. Relevant
information includes information which appears reasonably calculated to
lead to the discovery of admissible evidence. This information is
obtained for the purpose of assisting the parties in developing,
preparing, and presenting their cases. The Federal Rules of Civil
Procedure may be used as a general guide for discovery practices in
proceedings before the Board, except as to matters specifically covered
by these regulations. The Federal Rules of Civil Procedure shall be
interpreted as instructive rather than controlling in any event.
(b) Scope. Any person may be examined pursuant to paragraph (c) of
this section regarding any nonprivileged matter which is relevant to the
issue under appeal including the existence, description, nature,
custody, condition, and location of documents or other tangible things
and the identity and location of persons having knowledge of relevant
facts. The information sought must appear reasonably calculated to lead
to the discovery of admissible evidence.
(c) Methods. Discovery may be obtained by one or more of the methods
provided under the Federal Rules of Civil Procedure, including: written
interrogatories, depositions, production of documents or things for
inspection or copying, and requests for admission addressed to parties.
04 CFR 28.42 Voluntary discovery and protective orders.
(a) Discovery from a party. A party seeking discovery from another
party shall initiate the process by serving a request for discovery on
the other party. The request for discovery shall conform to the
following requirement:
(1) It shall state the time limit for responding, as prescribed in
paragraph (d) of this section.
(2) In the case of a request for deposition of a party, reasonable
notice in writing shall be given to every party to the action. The
notice shall:
(i) Specify the time and place of the taking of the deposition, and
(ii) Be served on the person to be deposed.
(3) When a request for discovery is directed to an officer or
employee of GAO, the agency shall make the officer or employee available
on official time for the purpose of responding to the request and shall
assist the officer or employee as necessary in providing relevant
information that is available to the agency. For purposes of discovery
under these regulations, a party includes an intervenor.
(b) Discovery from a nonparty. Parties are encouraged to attempt to
obtain voluntary discovery from nonparties whenever possible. A party
seeking discovery from a nonparty may initiate the process by serving a
request for discovery on the nonparty and on all other parties to the
proceeding.
(c) Responses to discovery requests.
(1) A party shall answer a discovery request within the time provided
by paragraph (d)(2) of this section either by furnishing to the
requesting party the information or testimony requested or agreeing to
make deponents available to testify within a reasonable time or by
stating an objection to the particular request and the reasons for
objection or by requesting a protective order.
(2) Upon the failure or refusal of a party to respond in full to a
discovery request, the requesting party may file with the administrative
judge a motion to compel in accordance with 28.42(d)(4). A copy of the
motion shall be served on the other party and on any nonparty from whom
the discovery was sought. The motion shall be accompanied by:
(i) A copy of the original request served on the other party and a
statement showing the relevancy and materiality of the information
sought.
(ii) A copy of the objections to discovery or, where appropriate, a
verified statement that no response has been received.
(3) The other party and any other nonparty from whom discovery was
sought shall respond to the motion to compel within the time limits set
forth in (d)(4) of this section.
(d) Time limits. (1) Requests for discovery shall be served within
30 days after the service list is issued by the Board to all parties.
(2) A party or nonparty shall respond to a discovery request within
20 days after service on the party or nonparty of the request. Any
discovery requests following the initial request shall be served within
10 days of the date of service of the prior response, unless otherwise
directed. Deposition witnesses shall give their testimony at the time
and place stated in the notice of deposition-taking or in the subpoena,
unless otherwise agreed to by the parties.
(3) In responding to a discovery request, a party or nonparty shall
respond as fully as possible, except to the extent that the party or
nonparty objects to the discovery or requests a protective order. Any
objection or request for protective order shall be filed within the time
limits set forth in paragraph (d)(2) of this section. Any objection
shall be addressed to the party requesting discovery and shall state the
particular grounds for the objection. Any request for protective order
shall state the grounds for the protective order and shall be served on
the administrative judge and any other party and nonparty to the action.
The administrative judge shall rule on the request for protective
order.
(4) Motions for an order compelling discovery shall be filed with the
administrative judge within 10 days of filing of objections or within 10
days of the expiration of the time limits for response when no response
or an alleged inadequate response is received. Opposition to a motion
to compel must be filed with the administrative judge within 10 days of
the date of service of the motion.
(5) Discovery shall be completed by the time designated by the
administrative judge, but no later than 65 days after the filing of the
appeal. A later date may be set by the administrative judge after due
consideration of the particular situation including the dates set for
hearing and closing of the case record.
(6) The time limits prescribed in this section may be altered by the
administrative judge for good cause shown.
04 CFR 28.43 Compelling discovery.
(a) Motion for an order compelling discovery. Motions for orders
compelling discovery shall be submitted to the administrative judge as
set forth at 28.42(c)(2) and (d)(4) above.
(b) Content of order. Any order issued may include, where
appropriate:
(1) Provision for notice to the person to be deposed as to the time
and place of such deposition.
(2) Such conditions or limitations concerning the conduct or scope of
the proceedings or the subject matter as may be necessary to prevent
undue delay or to protect any party or deponent from undue expense,
embarrassment or oppression.
(3) Limitations upon the time for conducting depositions, answering
written interrogatories, or producing documentary evidence.
(4) Other restrictions upon the discovery process as determined by
the administrative judge.
(c) Failure to comply with an order compelling discovery may subject
the noncomplying party to sanctions under 28.24. Failure to comply with
an order compelling discovery may subject a noncomplying nonparty to
enforcement proceedings under 28.50.
04 CFR 28.44 Taking of depositions.
Depositions may be taken before any person not interested in the
outcome of the proceedings who is authorized by law to administer oaths.
04 CFR 28.45 Admissions of fact and genuineness of documents.
(a) Any party may be served with requests for the admission of the
genuineness of any relevant documents identified within the request or
the truth of any relevant matters of fact or application of law to the
facts as set forth in the request.
(b) Within the time period prescribed by 28.42(d)(2), the party on
whom the request is served must submit to the requesting party:
(1) A sworn statement specifically denying, admitting, or expressing
a lack of knowledge after making reasonable inquiry regarding the
specific matters on which an admission is requested; and/or
(2) An objection to a request for the admission of the genuineness of
any relevant document may be filed, in whole or in a part, on the
grounds that the matters contained therein are privileged, irrelevant,
or otherwise improper.
(c) Upon a failure or refusal of a party to respond or object to a
request for admissions within the prescribed time period, the request
shall be deemed admitted.
04 CFR 28.45 Subpoenas
04 CFR 28.46 Motion for subpoena.
(a) Authority to issue subpoenas. Any member of the Board may issue
subpoenas requiring the attendance and testimony of witnesses and the
production of documentary or other evidence from any place in the United
States or any territory or possession thereof, the Commonwealth of
Puerto Rico, or the District of Columbia; and order the taking of
depositions and order responses to written interrogatories.
(b) Motion. A motion for the issuance of a subpoena requiring the
attendance and testimony of witnesses or the production of documents or
other evidence under 28.46(a) shall be submitted to the administrative
judge.
(c) Forms and showing. Motions for subpoenas shall be submitted in
writing to the administrative judge and shall specify with particularity
the books, papers, or testimony desired and shall be supported by a
showing of general relevance and reasonable scope and a statement of the
facts expected to be proven thereby.
(d) Rulings. Where the administrative judge is not a Board member,
the motion shall be referred with a recommendation for decision to a
Board member. The Board member shall promptly rule on the request.
Where the administrative judge is a Board member, he/she shall rule
directly on the request.
04 CFR 28.47 Motion to quash.
Any person against whom a subpoena is directed may file a motion to
quash or limit the subpoena setting forth the reasons why the subpoena
should not be complied with or why it should be limited in scope. This
motion shall be filed with the administrative judge within 20 days after
service of the subpoena.
04 CFR 28.48 Service.
Service of a subpoena may be made by a United States Marshal or
Deputy Marshal or by any person who is over 18 years of age.
04 CFR 28.49 Return of service.
When service of a subpoena is effected by a person other than a
United States Marshal or Deputy Marshal, that person shall certify on
the return of service that the prescribed fees have been tendered or
provided for and that service was made either:
(1) In person,
(2) By registered or certified mail, or
(3) By delivery to a responsible person (named) at the residence or
place of business (as appropriate) of the person to be served.
04 CFR 28.50 Enforcement.
If a person has been served with a Board subpoena but fails or
refuses to comply with its terms, the party seeking compliance may file
a written motion for enforcement with the administrative judge or make
an oral motion for enforcement while on record at a hearing. The party
shall present the return of service and, except where the witness was
required to appear before the administrative judge, shall submit
affidavit evidence of the failure or refusal to obey the subpoena. The
Board may then request the appropriate United States district court to
enforce the subpoena.
04 CFR 28.50 Hearings
04 CFR 28.55 Scheduling the hearing.
The notice of initial hearing shall fix the date, time and place of
hearing. GAO, upon request of the administrative judge, shall provide
appropriate hearing space. Motions for postponement by either party
shall be made in writing and accompanied by an affidavit setting forth
the reasons for the request and shall be granted only upon a showing of
good cause. When the parties agree on postponement, motions may be made
orally and shall be granted only upon a showing of good cause.
04 CFR 28.56 Hearing procedures, conduct, and copies of exhibits.
(a) The Board may designate one or more administrative judges to
conduct hearings on appropriate matters.
(b) The hearing will be conducted as an administrative proceeding
and, ordinarily, the rules of evidence will not be strictly followed.
(c) Parties will be expected to present their cases in a concise
manner limiting the testimony of witnesses and submission of documents
to relevant matters.
(d) Any party to a hearing offering exhibits into the record shall
submit two copies of all such exhibits to the administrative judge, plus
one copy for each opposing party that is separately represented.
(e) Each party to a proceeding shall be responsible for bringing the
proper number of copies of an exhibit to the hearing.
(f) Multipage exhibits shall be paginated in the lower right hand
corner and the first page shall indicate the total number of pages in
the exhibit.
04 CFR 28.57 Public hearings.
(a) Hearings shall be open to the public. However, the
administrative judge, at his or her discretion, may order a hearing or
any part thereof closed, where to do so would be in the best interests
of the petitioner, a witness, the public, or other affected persons.
Any order closing the hearing shall set forth the reasons for the
administrative judge's decision. Any objections thereto shall be made a
part of the record.
(b) Regardless of whether a hearing is open or closed, the GAO
technical representative, who is not expected to testify, the GAO
representative, the petitioner and the petitioner's representative each
has a right to be present at the hearing.
04 CFR 28.58 Transcript.
(a) Preparation. A verbatim record made under supervision of the
administrative judge shall be kept of every hearing and shall be the
sole official record of the proceeding. Upon request, a copy of a
transcript of the hearing shall be made available to each party.
Additional copies of the transcript shall be made available to a party
upon payment of costs. Exceptions to the payment requirement may be
granted for good cause shown. Motions for an exception shall be made in
writing and accompanied by an affidavit setting forth the reasons for
the request and shall be granted upon a showing of good cause. Requests
for copies of transcripts shall be directed to the executive assistant.
The executive assistant may, by agreement with the person making the
request, make arrangements with the official hearing reporter for
required services to be charged to the requester.
(b) Corrections. Corrections to the official transcript will be
permitted. Motions for correction must be submitted within 30 days of
the receipt of the transcript. Corrections of the official transcript
will be permitted only when errors of substance are involved and only
upon approval of the administrative judge. The administrative judge may
make changes at any time with notice to the parties.
04 CFR 28.59 Official record.
The transcript of testimony and exhibits, together with all papers
and motions filed in the proceedings, shall constitute the exclusive and
official record.
04 CFR 28.60 Briefs.
(a) Length. Principal briefs shall not exceed 60 pages and reply
briefs 30 pages, exclusive of tables and pages limited only to
quotations of statutes, rules, and the like. Motions to file extended
briefs shall be granted only for good cause shown.
(b) Format. Every brief must be easily readable. Pages must be 8
1/2 x 11 inches with margins at least one inch on all sides.
Typewritten briefs must have double spacing between each line of text,
except for quoted texts which may be single spaced.
(c) Number of copies. An original and 3 copies of briefs shall be
filed with the administrative judge and one copy served on each party
separately. When an action is before the Board, an original and seven
copies of each brief must be filed with the Board and one copy served on
each party separately represented.
04 CFR 28.61 Burden and degree of proof.
(a) In appealable actions, as defined by 5 U.S.C. 7701(a), agency
action must be sustained by the Board if:
(1) It is a performance-based action and is supported by substantial
evidence; or
(2) It is brought under any other provision of law, rule, or
regulation as defined by 5 U.S.C. 7701(a) and is supported by a
preponderance of evidence.
(b) Notwithstanding paragraph (a) of this section, the agency's
decision may not be sustained if the petitioner:
(1) Shows harmful error in the application of the agency's procedures
in arriving at such decision;
(2) Shows that the decision was based on any prohibited personnel
practice described in 4 CFR 2.5; or
(3) Shows that the decision was not in accordance with law.
(c) In any other action within the Board's jurisdiction, the
petitioner shall have the responsibility of presenting the evidence in
support of the action and shall have the burden of proving the
allegations of the appeal by a preponderance of the evidence.
(d) Definitions. The following definitions shall apply: ''Harmful
error'' means error by the agency in the application of its procedures
which, in the absence or cure of the error, might have caused the agency
to reach a conclusion different than the one reached. The burden is
upon the petitioner to show that, based upon the record as a whole, the
error was harmful, i.e., caused substantial harm or prejudice to his/her
rights.
''Preponderance of the evidence'' means that degree of relevant
evidence which a reasonable person, considering the record as a whole,
would accept as sufficient to support a conclusion that the matter
asserted is more likely to be true than not true.
''Substantial evidence'' means that degree of relevant evidence which
a reasonable person, considering the record as a whole, might accept as
adequate to support a conclusion, even though other reasonable persons
might disagree. This is a lower standard of proof than preponderance of
the evidence.
04 CFR 28.62 Closing the record.
(a) When there is a hearing, the record shall be closed at the
conclusion of the hearing. However, when the administrative judge
allows the parties to submit argument, briefs, or documents previously
identified for introduction into evidence, the record shall be left open
for such time as the administrative judge grants for that purpose.
(b) If the parties waive a hearing, the record shall be closed on the
date set by the administrative judge as the final date for the receipt
of submissions of the parties to the matter.
(c) Once the record is closed, no additional evidence or argument
shall be accepted into the record except upon a showing that new and
material evidence has become available which was not available despite
due diligence prior to the closing of the record. However, the
administrative judge shall make part of the record any motions for
attorney fees, any supporting documentation, and determinations thereon,
and any approved correction to the transcript.
04 CFR 28.62 Evidence
04 CFR 28.65 Service of documents.
Any document submitted with regard to any pleading, motion, or brief
shall be served upon all parties to the proceeding.
04 CFR 28.66 Admissibility.
Evidence or testimony may be excluded from consideration by the
administrative judge if it is irrelevant, immaterial, or unduly
repetitious.
04 CFR 28.67 Production of statements.
After an individual has given evidence in a proceeding, any party may
request a copy of any prior signed statement made by that individual
which is relevant to the evidence given. If the party refuses to
furnish the statement, the administrative judge may draw an adverse
inference from the failure to produce or may exclude the relevant
portion of the evidence given by the individual from consideration.
04 CFR 28.68 Stipulations.
The parties may stipulate as to any matter of fact. Such a
stipulation will satisfy a party's burden of proving the fact alleged.
04 CFR 28.69 Judicial notice.
The administrative judge on his/her own motion or on motion of a
party, may take judicial notice of matters of common knowledge or
matters that can be verified. Judicial notice taken of any fact
satisfies a party's burden of proving the fact noticed.
04 CFR 28.69 Interlocutory Appeals
04 CFR 28.80 Explanation.
An interlocutory appeal is an appeal to the Board of a ruling made by
an administrative judge during the course of a proceeding. This appeal
may be permitted by the administrative judge if he/she determines that
the issue presented is of such importance to the proceeding that it
requires the Board's immediate attention. The Board makes a decision on
the issue and the administrative judge acts in accordance with that
decision.
04 CFR 28.81 Criteria for certification.
Rulings of the administrative judge may not be appealed during the
course of the hearing unless the administrative judge certifies the
ruling for review by the Board. The administrative judge shall certify
a ruling for review only if it can be shown that:
(a) The ruling involves an important question of law or policy about
which there is substantial ground for difference of opinion; and
(b) An immediate ruling will materially advance the completion of the
proceeding, or denial of an immediate ruling will cause undue harm to a
party or the public.
04 CFR 28.82 Procedure.
(a) Motion for certification. A party seeking review by
interlocutory appeal must file a motion for certification with the
administrative judge within ten days of receipt of the administrative
judge's determination. The motion shall include arguments in support of
both the certification and the determination to be made by the Board.
Responses, if any, shall be filed within ten days of receipt of the
motion for certification.
(b) Certification and review. The administrative judge shall grant
or deny a motion for certification following receipt of the motion and
response, if any. If certification is granted, the record shall be
referred to the Board. If certification is denied, the issue may be
raised in exceptions to the recommended decision or in a request for
reconsideration filed in accordance with 28.86 after issuance of the
recommended decision or initial decision, respectively.
(c) Stay of hearing. The stay of the hearing during the time an
interlocutory appeal is pending is at the discretion of the
administrative judge. However, when the administrative judge refuses to
stay the hearing during the time an interlocutory appeal is pending, the
Board is not precluded from staying a hearing pending a decision on the
interlocutory appeal.
04 CFR 28.82 Board Decisions, Attorney's Fees, and Judicial Review
04 CFR 28.86 Board procedures; recommended decisions.
(a) Non-member recommended decisions. Where an administrative judge,
who is not a Board member, conducts a hearing, the administrative judge
shall transmit to the parties and to the Board a recommended decision.
(b) Exceptions to the recommended decision shall be filed within 30
days from issuance as follows: By hand delivery by any party at the
office of the Board (Academy Building, 717 Fifth Street, NW.,
Washington, DC) or by mail to the Personnel Appeals Board, Academy
Building, General Accounting Office, Washington, DC 20548. When filed
by mail, the postmark shall be the exclusive date of filing. The party
filing the exceptions shall serve the Board with an original and 7
copies and shall serve one copy of the exceptions on other parties. The
exceptions shall include all supporting material and shall set forth
objections to the recommended decision, with references to applicable
laws or regulations, and with specific reference to the record. The
responding party shall have 30 days from receipt of the exceptions to
file any reply. Additional responsive pleadings may be filed only with
the approval of the Board.
(c) Regardless of whether exceptions to a recommended decision are
filed with the Board, the Board shall review the recommended decision.
In reviewing the recommended decision, the Board shall review the record
as though it were making the initial decision. The Board may adopt,
reverse, remand, modify or vacate the recommended decision, in whole or
in part. Where no party files exceptions to a recommended decision and
the Board is considering any action other than adopting the recommended
decision in whole as the final decision, the Board shall provide the
parties an opportunity to address the issues it is considering. Where
appropriate, the Board shall issue a final decision and order a date for
compliance. In reviewing any recommended decision, the Board may:
(1) Issue a single decision which decides the case;
(2) Hear oral arguments;
(3) Require the filing of briefs;
(4) Remand the proceedings to the administrative judge to take
further testimony or evidence or make further findings or conclusions;
or
(5) Take any other action necessary for final disposition of the
case.
(d) The Board shall reject a recommended decision, in whole or in
part, on the basis of its own motion or on the basis of exceptions filed
by the parties, when the Board finds that:
(1) New and material evidence is available that, despite due
diligence, was not available when the record was closed;
(2) The recommended decision is based on an erroneous interpretation
of statute or regulation;
(3) The recommended decision is arbitrary, capricious, an abuse of
discretion, or otherwise not consistent with law;
(4) The recommended decision is not made consistent with required
procedures and results in harmful error; or
(5) The recommended decision is unsupported by evidence required by
the requisite burden of proof as set forth at 28.61.
(e) The decision of the Board shall be final and subject to judicial
review pursuant to 28.90.
04 CFR 28.87 Board procedures; initial decisions.
(a) Initial decisions by a member or panel of members. Where a Board
member or panel of members hears a case, an initial decision shall be
issued to the Board and to the parties. The initial decision --
(1) Shall contain the date upon which the initial decision will
become final, which will be at least 30 days from issuance and
(2) Shall become final on that date unless, within 30 days from
issuance of the initial decision, a party files a request for
reconsideration or the Board decides to reconsider the initial decision
on its own motion.
(b) A request for reconsideration of an initial decision shall be
filed within 30 days from issuance as follows: by hand delivery by any
party at the office of the Board (Academy Building, 717 Fifth Street,
NW., Washington, DC) or by mail to the Personnel Appeals Board, Academy
Building, General Accounting Office, Washington, DC 20548. When filed
by mail, the postmark shall be the exclusive date of filing. The party
filing the request for reconsideration shall serve the Board with an
original and 7 copies and shall serve one copy of the request on other
parties. The request for reconsideration shall include all supporting
material and shall set forth objections to the initial decision, with
references to applicable laws or regulations, and with specific
reference to the record. The responding party shall have 30 days from
receipt of the request for reconsideration to file any reply.
Additional responsive pleadings may be filed only with the approval of
the Board.
(c) When a request for reconsideration is filed, the Board shall
review the initial decision. In reviewing the initial decision, the
Board may review the record as though it were making the initial
decision. The Board may affirm, reverse, remand, modify or vacate the
initial decision, in whole or in part. Where appropriate, the Board
shall issue a final decision and order a date for compliance. In
reviewing any initial decision, the Board may:
(1) Issue a single decision which decides the case;
(2) Hear oral arguments;
(3) Require the filing of briefs;
(4) Remand the proceedings to the administrative judge to take
further testimony or evidence or make further findings or conclusions;
or
(5) Take any other action necessary for final disposition of the
case.
(d) The Board shall reject an initial decision, in whole or in part,
on the basis of its own motion or on the basis of a request for
reconsideration, when the Board finds that:
(1) New and material evidence is available that, despite due
diligence, was not available when the record was closed;
(2) The initial decision is based on an erroneous interpretation of
statute or regulation;
(3) The initial decision is arbitrary, capricious, an abuse of
discretion, or otherwise not consistent with law;
(4) The initial decision is not made consistent with required
procedures and results in harmful error; or
(5) The initial decision is unsupported by evidence required by the
requisite burden of proof as set forth at 28.61.
(e) The decision of the Board shall be final and subject to judicial
review pursuant to 28.90.
04 CFR 28.88 Board procedures; enforcement.
(a) A person required to take any action under the terms of a Board
decision or order shall carry out its terms promptly, and shall, within
30 days after the decision or order becomes final, provide the Board and
all parties to the proceeding with a compliance report specifying:
(1) The manner in which compliance with the provisions of the
decision or order has been accomplished.
(2) The reasons why compliance with any provisions of the Board's
order has not been fully accomplished.
(3) The steps being taken to ensure full compliance.
(b) When the Board does not receive a compliance report in accordance
with paragraph (a) of this section, the Executive Assistant shall make
inquiries to determine the status of the compliance report. When the
executive assistant establishes that a complete compliance report is not
forthcoming, the executive assistant shall report the failure to file a
complete compliance report to the Board.
(c) Any person and/or the General Counsel may petition the Board for
enforcement of a final decision of the Board. The petition shall
specifically set forth the reasons why the petitioner believes there is
non-compliance.
(d) Upon receipt of a non-compliance report from its Executive
Assistant or of a petition for enforcement of a final decision, the
Board may issue a notice to any person to show cause why there was
non-compliance. Following a show cause proceeding, the Board may seek
judicial enforcement of its decision or order.
04 CFR 28.89 Attorney fees and costs.
Within 20 days after receipt of a notice of final decision by the
Board or other final resolution of the case, the petitioner, if he/she
is the prevailing party, may submit a request for the award of
reasonable attorney fees and costs. GAO may file a response to the
request within 20 days after its receipt. Motions for attorney fees
shall be filed in accordance with 28.21 of these regulations. Rulings
of the Board on attorney fees and costs shall be consistent with the
standards set forth at 5 U.S.C. 7701(g). The Board's decision on
attorney fees and costs shall be a final decision, in accordance with
28.87.
04 CFR 28.90 Board procedures; judicial review.
(a) A final decision by the Board under 31 U.S.C. 753(a) (1), (2),
(3), (6), or (7) may be appealed to the United States Court of Appeals
for the Federal Circuit within 30 days after the date the petitioner
receives notice from the Board of the final decision.
(b) Special provisions regarding civil actions in discrimination
complaints are set forth at 28.100.
(c) The Board may designate the Solicitor, the General Counsel or any
other qualified individual to represent it in any judicial proceeding
involving a Board decision or the interpretation of a Board rule or of
the GAO Personnel Act.
04 CFR 28.90 Subpart C -- Oversight Procedures
04 CFR 28.91 General.
Section 732(f) of Title 31, U.S.C. provides that, with respect to
employees and applicants for employment in the GAO, the authority
granted in the legislation under 31 U.S.C. 732(f)(2), which involves
oversight of the EEO program and appeals relating to EEO matters, shall
be exercised by the Board. The EEO appeals procedures are delineated in
Subpart D of these regulations. This Subpart specifies the oversight
procedures required to ensure that the goals of the legislation will be
attained through the development and administration of personnel
procedures as well as by dealing with specific cases involving
allegations of illegal practices.
(46 FR 35478, July 9, 1981, as amended at 47 FR 56981, Dec. 22, 1982.
Redesignated at 54 FR 24138, June 6, 1989)
04 CFR 28.92 Oversight of GAO EEO program.
(a) In order to carry out the purpose of this subpart, the Board may
require from GAO the following:
(1) Such plans, procedures and regulations as GAO may develop in
order to carry out the purposes enumerated in 28.95;
(2) Reports regarding its efforts to publicize to its employees the
procedures to be followed for receiving advice and for filing complaints
regarding the enforcement of laws prohibiting discrimination in
employment;
(3) Quarterly statistical reports of pre-complaint counseling and of
pending complaints, in a manner prescribed by the Board;
(4) An annual report on its equal employment opportunity affirmative
action program and its Federal Equal Employment Opportunity Recruitment
Program; and
(5) Any other information requested by the Board regarding equal
employment opportunity within the GAO that may be required by the Board
in the time frame and format established by the Board after consultation
with the Comptroller General or his/her designee.
(b) The Board shall review and evaluate the regulations, procedures
and practices of the GAO, including the information filed with it in
accordance with 28.92(a), and shall:
(1) Require the GAO to make any changes the Board determines are
needed due to violations of or inconsistencies with Subchapters III and
IV of Chapter 7 of Title 31, U.S.C. or equal employment opportunity
laws, and
(2) Report to the Congress on the overall progress being made in
effectuating the purposes of Subchapters III and IV of Chapter 7 of
Title 31, U.S.C.
(46 FR 35478, July 9, 1981, as amended at 47 FR 56981, Dec. 22, 1982.
Redesignated and amended at 54 FR 24138, June 6, 1989)
04 CFR 28.92 Subpart D -- Special Procedures -- Equal Employment Opportunity (EEO) Cases
04 CFR 28.95 Purpose and scope.
The procedures in this subpart relate to complaints filed against any
GAO policies or specific actions which petitioners claim are in
violation of:
(a) Section 717 of the Civil Rights Act of 1964 (42 U.S.C.
2000e-16), prohibiting discrimination based on race, color, religion,
sex or national origin;
(b) Sections 12 and 15 of the Age Discrimination in Employment Act of
1967 (29 U.S.C. 631, 633a) prohibiting discrimination on account of age;
(c) Section 6(d) of the Fair Labor Standards Act of 1938 (29 U.S.C.
206(d)), prohibiting discrimination in wages on the basis of sex;
(d) Sections 501 and 505 of the Rehabilitation Act of 1973 (29 U.S.C.
791, 794a) prohibiting discrimination on the basis of handicap; or
(e)''(A)ny other law prohibiting discrimination in Federal employment
on the basis of race, color, religion, age, sex, national origin,
political affiliation, marital status or handicapping condition. . .''
31 U.S.C. 732(f)(2).
(46 FR 35478, July 9, 1981, as amended at 47 FR 56981, Dec. 22, 1982.
Redesignated at 54 FR 24138, June 6, 1989)
04 CFR 28.96 Applicability of general procedures.
Except where a different procedure is provided for in this subpart,
the procedures to be followed by all parties in cases arising under this
subpart shall be the General Procedures as prescribed in Subpart B of
these regulations.
(46 FR 35478, July 9, 1981. Redesignated at 54 FR 24138, June 6,
1989)
04 CFR 28.97 Class actions in EEO cases.
(a) Prior to invoking the Board's procedures in a case alleging
prohibited discrimination on behalf of a class of GAO employees or
applicants for employment, a complaint must first be filed with GAO in
accordance with GAO Order 2713.2.
(b) A petition for review of GAO's disposition of any EEO class
complaint may be submitted to the Board when:
(1) GAO issues a determination rejecting or canceling the class
complaint;
(2) GAO issues a determination accepting the class action, but with
modifications that are not satisfactory to the agent of the class;
(3) A period of more than 180 days has elapsed since the formal class
complaint was filed and the GAO has not issued a final decision; or
(4) The complaint has been resolved by a GAO decision that, in whole
or in part, has not satisfied the agent for the class.
(c) In class actions in EEO cases, no charge shall be filed or
investigated by the General Counsel prior to filing a petition for
review with the Board. However, the General Counsel may request
permission to intervene with regard to any issue in which the General
Counsel finds a significant public interest with respect to the
preservation of the merit system.
(d) The parties shall not have a right to a hearing on a petition for
review in class actions under this section. Upon a showing of good
cause as to why an evidentiary hearing is necessary, the Board may order
such a hearing. Alternatively, the Board may, after a review of the
administrative record and on its own motion, order a hearing for the
purpose of gathering additional evidence. If no hearing is ordered, the
Board's decision shall be based upon a review of the administrative
record developed in the GAO class complaint process.
(e) Standards. For the purpose of determining whether it is
appropriate to treat an appeal as a class action, the administrative
judge will be guided, but not controlled, by the applicable provisions
of the Federal Rules of Civil Procedure.
(51 FR 7739, Mar. 6, 1986. Redesignated and amended at 54 FR 24138,
June 6, 1989)
04 CFR 28.98 Individual charges in EEO cases.
(a) Prior to invoking the Board's procedures in a case alleging
prohibited discrimination, a complaint must first be filed with GAO in
accordance with GAO Order 2713.2.
(b) A charge relating to GAO's disposition of any individual EEO
complaint may be submitted to the General Counsel when:
(1) The complaint or a portion thereof has been rejected by the GAO;
or
(2) A period of more than 120 days has elapsed since the complaint
was filed, and the GAO has not issued a final decision; or
(3) The complaint has been resolved by a GAO decision which, in whole
or in part, has not satisfied the complainant.
(c) Where a charging party wishes to file a combination of claims,
only a portion of which involve discrimination, the charging party must
first file a complaint in the agency EEO complaint process. Where a
complaint filed in the agency EEO complaint process relates to non-EEO
issues that are within the Board's jurisdiction in addition to
EEO-related allegations, the subsequent charge filed with the General
Counsel under paragraph (b) of this section shall be considered a timely
appeal of the non-EEO issues.
(d) The charging party shall file the charge with the General Counsel
in accordance with 28.11. The General Counsel shall investigate the
charge in accordance with 28.12.
(51 FR 7740, Mar. 6, 1986. Redesignated and amended at 54 FR 24138,
June 6, 1989)
04 CFR 28.99 Petitions for review to the Board in EEO cases.
(a) The provisions of 28.18 through 28.90, inclusive, shall govern
the Board's procedures in processing petitions filed under this subpart.
(b) Remedial action provided in Board orders in these cases may
include:
(1) Provision for offers of employment, re-employment or promotion,
with or without back pay, when the Board decides such action is required
to make whole the individual found to have been discriminated against.
(2) Notification to all GAO employees of the action ordered to be
taken to expunge the effect of the discrimination;
(3) Correction of GAO personnel records, as necessary, to reflect the
purpose of the Board order; and,
(4) Any other action the Board believes proper to correct the effect
of the discrimination found to have occurred.
(51 FR 7740, Mar. 6, 1986. Redesignated and amended at 54 FR 24138,
June 6, 1989)
04 CFR 28.100 Civil action; discrimination complaints.
(a) Race, color, religion, sex, or national origin. An employee or
applicant alleging violations of 42 U.S.C. 2000e-16 (Title VII of the
Civil Rights Act of 1964, as amended) may file suit in Federal District
Court --
(1) After 180 days from filing a complaint with GAO if there is no
final decision on that complaint or within 30 days of receipt of notice
of final action taken by GAO, or
(2) After 180 days from filing a charge with the General Counsel if
there is no final decision by the Board on that discrimination appeal or
within 30 days of receipt of notice of final action by the Board.
(b) Handicapping condition. An employee or applicant alleging
discrimination based upon a handicapping condition (29 U.S.C. 791, 794a,
Rehabilitation Act) may file suit in Federal District Court --
(1) After 180 days from filing a complaint with GAO if there is no
final decision on that complaint or within 30 days of receipt of notice
of final action taken by GAO, or
(2) After 180 days from filing a charge with the General Counsel if
there is no final decision by the Board on that discrimination appeal or
within 30 days of receipt of notice of final action by the Board.
(c) Age. An employee or applicant alleging discrimination based upon
age (29 U.S.C. 631, 633a, Age Discrimination in Employment Act) may
forego administrative action altogether and file a civil action in U.S.
District Court after giving GAO 30 days Notice of Intent to File such
action. The Notice shall be filed within 180 days after the alleged
unlawful practice occurred. When such notice is provided and no
administrative complaint is filed, a civil action may be filed in the
appropriate U.S. District Court within two years or, if the violation is
willful, three years of the date of the alleged ADEA violation. An
employee or applicant for employment, who has filed an administrative
complaint alleging age discrimination, may file suit in Federal District
Court --
(1) After 180 days from filing a complaint with GAO if there is no
final decision on that complaint or within 30 days of receipt of notice
of final action taken by GAO, or
(2) After 180 days from filing a charge with the General Counsel if
there is no final decision by the Board on that discrimination appeal or
within 30 days of receipt of notice of final action by the Board.
(d) Sex-based salary inequity. An employee or applicant alleging
discrimination based upon salary inequity due to sex (29 U.S.C. 206d,
Equal Pay Act provisions of the Fair Labor Standards Act) may forego
administrative action altogether and file suit in U.S. District Court.
(e) In lieu of filing a civil action in U.S. District Court, a final
decision of the Board involving prohibited discrimination (31 U.S.C.
732(f)(1)) may be appealed in accordance with 31 U.S.C. 755, to the
United States Court of Appeals for the Federal Circuit within 30 days
after the date the petitioner receives notice from the Board of the
final decision.
(54 FR 24138, June 6, 1989)
04 CFR 28.101 Effect on administrative processing.
Any proceeding before the Board shall be terminated when an employee
or applicant who is alleging violations of 42 U.S.C. 2000e-16 (Title VII
of Civil Rights Act of 1964, as amended) (Rehabilitation Act, 29 U.S.C.
791, 794c) or who is alleging violations based upon a handicapping
condition or who is alleging age discrimination (29 U.S.C. 631, 633a),
files suit in Federal District Court pursuant to 28.100 (a), (b) or
(c).
(54 FR 24138, June 6, 1989)
04 CFR 28.101 Subpart E -- Special Procedures -- Representation Proceedings
04 CFR 28.110 Purpose.
The procedures in this subpart relate to the Board's duty under 31
U.S.C. 753(a) (4) and (5) to determine appropriate units of GAO
employees for collective bargaining, to conduct elections in order to
determine whether the employees in any such units wish to select a labor
organization to represent them in collective bargaining, and,
thereafter, to certify labor organizations so selected as the designated
exclusive bargaining representative. They are referred to in these
regulations as ''representation proceedings''.
(46 FR 35478, July 9, 1981, as amended at 47 FR 56981, Dec. 22, 1982.
Redesignated at 54 FR 24138, June 6, 1989)
04 CFR 28.111 Scope.
The Board shall consider, decide and order corrective action (as
appropriate) in cases arising from determinations of appropriate units
of employees for collective bargaining and cases arising from elections
and certifications of collective bargaining representatives. Board
decisions in these matters will be made with due regard for relevant
provisions of GAO Orders and with the objective of insuring that the GAO
labor relations program is consistent with Chapter 71 of Title 5, United
States Code, which prescribes the standards for the labor relations
program in the executive branch.
(46 FR 35478, July 9, 1981. Redesignated at 54 FR 24138, June 6,
1989)
04 CFR 28.112 Who may file petitions.
(a) Representation petitions may be filed by:
(1) A labor organization which wishes to be designated as the
exclusive representative for collective bargaining by the GAO employees
in an appropriate unit, or by a labor organization which desires to
replace another currently having that status;
(2) An employee or a group of employees (or an individual on
his/her/their behalf) desiring a new election to determine whether a
labor organization has ceased to represent a majority of employees in a
unit;
(3) The GAO if it has a good faith reason to doubt the continued
desire of a group of its employees to be represented by a labor
organization which is currently the exclusive representative of the
employees in an appropriate unit;
(4) The GAO or a labor organization currently recognized as an
exclusive representative, desiring the Board to clarify an earlier unit
determination or certification;
(5) Any person seeking clarification of, or an amendment to, a
certification then in effect or any other matter relating to
representation.
(b) Notwithstanding the provisions of paragraph (a) of this section,
no petition may be filed which seeks representation rights for employees
in a unit --
(1) Where an election has been held within the previous 12 calendar
months and in such election a majority of the employees voting chose a
labor organization for certification as the unit's exclusive
representative or
(2) Where an existing collective bargaining agreement is in effect,
unless the petition for exclusive recognition is filed not more than 105
days and not less than 60 days before the expiration of the collective
bargaining agreement or
(3) Where an excellent collective bargaining agreement is in effect
for more than three years, then the petition for recognition shall be
filed not more than 105 days and not less than 60 days before the third
anniversary and each subsequent anniversary of the collective bargaining
agreement.
(46 FR 35478, July 9, 1981, as amended at 48 FR 29666, June 28, 1983.
Redesignated at 54 FR 24138, June 6, 1989)
04 CFR 28.113 Contents of representation petitions.
(a) The contents of representation petitions filed under 28.65(a)(1)
shall consist of:
(1) A detailed identification of the unit of employees to which the
petition applies, and their geographical location within the GAO, the
classifications of employees to be included and excluded, and the number
of employees involved.
(2) Names, addresses and officers of any other labor organizations
known by the petitioner to be interested in representing employees
covered by the petition, including a labor organization which is party
to a current collective bargaining agreement covering any employees in
the unit;
(3) Name, address, affiliation, if any, and telephone number of the
petitioning organization;
(4) A copy of the constitution and bylaws of the organization,
together with a statement that these documents, as well as a roster of
the organization's officers and representatives and a statement of the
objectives, have also been supplied to the GAO.
(5) A declaration by the signer of the petition, under penalties of
the Criminal Code (18 U.S.C. 1101), that the petition's contents are
true and correct, to the best of his/her knowledge and belief;
(6) The signature of the representative of the petitioner, including
title and telephone number; and
(7) Membership cards, dues records, or signed statements by employees
indicating their desire to be represented by the labor organization, or
similar evidence acceptable to the Board, showing that at least 30
percent of the employees in the proposed unit wish to be represented by
the petitioner.
(b) The contents of petitions filed under 28.65(a)(2) shall conform
to those provided for in paragraph (a) of this section, except that the
information required by paragraphs (a)(4) and (a)(7) of this section
need not be supplied. Additionally, a petition under 28.65(a)(2) shall
include evidence satisfactory to the Board that at least 30 percent of
the employees in the unit no longer wish to be represented by the labor
organization currently having bargaining rights.
(c) The contents of petitions filed under 28.65(a)(3) shall conform
to those provided in petitions under paragraph (a) of this section,
except that the information required by paragraphs (a)(4) and (a)(7) of
this section need not be supplied, but shall include a detailed
statement giving the objective considerations which support the GAO's
good faith reason for doubting the labor organization's continued status
as the exclusive representative.
(d) The contents of petitions filed under 28.65(a)(4) shall include
the information required under paragraph (a) of this section, with the
exception of the information required by paragraphs (a)(4) and (a)(7) of
this section. Also, instead of the information required in paragraph
(a)(1) of this section, the petition shall identify the existing unit
and the date the organization was recognized by the GAO or certified as
the exclusive representative, and shall explain the changes desired in
the unit and the reasons therefor.
(e) Petitions under 28.65(a)(5) shall be filed on forms to be
supplied by the Board, upon request.
(46 FR 35478, July 9, 1981. Redesignated at 54 FR 24138, June 6,
1989)
04 CFR 28.114 Pre-investigation proceedings.
(a) Upon the filing of a valid petition, the General Counsel may
request GAO to notify employees as to the existence of the petition by
posting a notice for at least 10 days in locations appropriately
selected to reach all employees in the unit covered by the petition.
The notice shall include a request that the Board's General Counsel be
notified of the existence of any other interested parties.
(b) GAO shall supply the General Counsel with any information in its
possession concerning other potentially interested labor organizations,
copies of relevant correspondence, and copies of existing or recently
expired agreements covering any employees in the unit. The GAO shall
also provide a list of employees it believes should be included in the
unit together with their classifications and the names and
classifications of those employees it proposes to exclude from the unit.
(c) All interested parties shall meet as soon as possible after the
expiration of the ten-day posting period and shall attempt to resolve
any issues in controversy.
(d) A labor organization may become an intervenor in any
representation proceeding by satisfying the General Counsel within the
ten-day posting period that it represents at least ten percent of the
employees in the proposed unit or submits other evidence that it is the
exclusive representative of the employees involved.
(46 FR 35478, July 9, 1981. Redesignated at 54 FR 24138, June 6,
1989)
04 CFR 28.115 Processing petitions.
(a) Upon the expiration of the ten-day posting period, and after the
General Counsel considers an appropriate period has elapsed for
consultation among the parties to resolve or identify issues, the
General Counsel shall prepare a report to the Board which may recommend:
(1) Approval of any agreement entered into by the parties during
their consultations including an agreement on the appropriate units, on
the withdrawal of the petition, or on a joint request to conduct an
election to determine which labor organization, if any, the employees
select to be their exclusive bargaining representative;
(2) Dismissal of the petition as being without merit; or
(3) Issuance of a notice of hearing for the purpose of disposing of
the remaining issues raised in the petition.
(b) The General Counsel's report shall be supplied to all interested
parties, and, unless all parties agree to a shorter period, they shall
have 15 days during which to file any response with the Board.
(c) The Board, as expeditiously as feasible after the expiration of
the period specified in paragraph (b) of this section, but no later than
30 days thereafter, shall either approve the report and order
appropriate steps to carry out its recommendations, or remand it to the
General Counsel with further instructions.
(d) Where a hearing is ordered, a Hearing Officer shall be designated
by the Board. The report of the Hearing Officer shall include Findings
of Fact and Recommendations.
(e) After receiving the report from the Hearing Officer, and after
providing the parties with an opportunity for comment, the Board shall
issue a Decision and Order determining the appropriate unit, directing
an election, dismissing the petition or making some other appropriate
disposition of the matter.
(f) Final Decisions and Orders issued by the Board based on hearings
held in accordance with paragraphs (d) and (e) of this section shall not
be considered final decisions subject to appeal before the Circuit
Courts of Appeal.
(46 FR 35478, July 9, 1981. Redesignated at 54 FR 24138, June 6,
1989)
04 CFR 28.116 Conduct of elections.
(a) The Board shall supervise any election it orders to be conducted,
but may delegate ministerial functions relating to an election to any
qualified independent organization; to members of the Board's full-time
staff; or to temporary employees hired for this purpose.
(b) Appropriate notices setting forth details of the election shall
be posted by GAO as directed by the Board.
(c) The Board shall, through its agents chosen to conduct the
election:
(1) Provide the opportunity for all qualified voters to indicate
their choices in secrecy;
(2) Offer qualified voters the opportunity to vote for any labor
organization on the ballot, or to reject all labor organizations;
(3) Permit all parties to observe all aspects of the election
procedure other than any which would interfere with the secrecy of the
ballot;
(4) Provide for all parties to challenge the eligibility of any
voters, and to impound the ballots of such voters, subject to later
determination of eligibility should the number of challenges potentially
affect the results;
(5) Certify to all parties the results of the election.
(d) Upon receiving a report of the results of the election, the Board
shall:
(1) If necessary rule on the challenges and adjust the results
accordingly;
(2) Formally announce the results and, where appropriate, designate a
labor organization as the exclusive collective bargaining agent, or
withdraw such a designation;
(3) Where one or more of the labor organizations on the ballot has
received the vote of 30% of the employees eligible to vote, but none has
gained a majority of the votes cast, order a runoff election between the
two choices receiving the largest number of votes in the original
election, unless, because of a tie vote or for some other reason, the
result is inconclusive; and,
(4) Where the result is inconclusive, conduct no more than one
additional election on that petition to clarify the result.
(46 FR 35478, July 9, 1981. Redesignated at 54 FR 24138, June 6,
1989)
04 CFR 28.116 Subpart F -- Special Procedures -- Unfair Labor Practices
04 CFR 28.120 Authority of the Board.
(a) The procedures in this subpart relate in part to the Board's
functions ''to consider and order corrective or disciplinary action in
cases arising from *** a matter appealable to the Board under the
labor-management relations program under'' 31 U.S.C. 732(e)(2)
''including a labor practice prohibited under 31 U.S.C. 732(e)(1).
753(a)(6).
(b) The system so established by the Comptroller General is required
to provide that each employee of the GAO has the right to form, join or
assist, or not form, join or assist an employee organization, freely and
without penalty or reprisal and for a labor-management relations
program, consistent with Chapter 71 of Title 5, U.S.C. (31 U.S.C.
732(3)).
(47 FR 56981, Dec. 22, 1982. Redesignated at 54 FR 24138, June 6,
1989)
04 CFR 28.121 Unfair labor practices -- Board procedures.
(a) Unfair labor practices are defined at GAO Order 2711.1 dated
October 1, 1980. An allegation that a provision of GAO Order 2711.1 is
inconsistent with Chapter 71 of Title 5, United States Code, and thereby
denies to an employee or labor organization rights comparable to those
granted by Chapter 71 of Title 5, United States Code, may also be raised
under the unfair labor practice procedure.
(b) An allegation that unfair labor practices have been committed
shall be subject to the procedures appearing in Subpart B for the filing
of charges, investigation by the General Counsel, and the Board's
disposition, except as set forth in paragraph (c) of this section.
(c) No petition for review may be filed based on any alleged unfair
labor practice which occurred or was discovered more than 6 months
before the filing of an unfair labor practice charge with the charged
party, as provided in paragraph 14b of GAO Order 2711.1, or more than 9
months before the filing of a charge with the General Counsel.
(51 FR 7740, Mar. 6, 1986. Redesignated at 54 FR 24138, June 6, 1989)
04 CFR 28.122 Negotiability issues -- compelling need.
Where the GAO and an exclusive bargaining representative disagree on
whether a matter is subject to negotiation as part of the requirement to
bargain in good faith, the matter shall be appealable to the Board under
the following procedures:
(a) When, in connection with negotiations, a proposal is declared
nonnegotiable, the party submitting the proposal shall, prior to the
close of negotiations, submit to the other party a Request for Formal
Negotiability Determination reciting the proposal in question. The
party declaring the proposal nonnegotiable shall, within ten (10) days,
deliver to the other party a Formal Negotiability Determination stating
the basis for the Determination.
(b) A Formal Negotiability Determination may be appealed to the Board
within 20 days from receipt by filing a Petition for Review with the
Board. A complete statement of argument from the petitioner should
accompany the Petition for Review.
(c) The Board shall serve the Respondent with a copy of the Petition
for Review and accompanying argument. Respondent shall have 20 days in
which to reply to the Petition for Review.
(d) One or more members of the Board shall review the arguments, hold
a hearing if the Hearing Officer deems it necessary, and issue a
decision.
(e) The decision shall become final in accordance with 28.25.
(46 FR 35478, July 9, 1981. Redesignated at 54 FR 24138, June 6,
1989)
04 CFR 28.123 Standards of Conduct for Labor Organizations.
(a) The GAO shall only accord recognition to labor organizations that
are free from corrupt influences and from influences opposed to basic
democratic principles. An organization is not required to prove it is
free from such influence if it is subject to governing requirements
calling for the maintenance of:
(1) Democratic procedures;
(2) Freedom from totalitarian influence;
(3) Independence on the part of its agents and officers from any
business or financial interests which represent conflicts of interest or
potential conflicts of interest; and
(4) Fiscal integrity, including provision for the dissemination of
regular financial reports to its members.
(b) A labor organization which has or seeks recognition as a
representative of employees under this chapter shall file financial and
other reports with the Board and comply with trusteeship and election
standards.
(c) A labor organization which has or seeks recognition under these
Rules, shall adhere to principles enunciated in the Regulations issued
by the Assistant Secretary of Labor for Labor/Management Relations
regarding standards of conduct for labor organizations in the public
sector. Complaints of violations of this section shall be filed with
the Board. In any matter arising under this section, the Board may
require a labor organization to cease and desist from violations of this
section and require it to take such actions as it considers appropriate
to carry out the policies of this section.
(d) This chapter does not authorize participation in the management
of a labor organization or acting as a representative of a labor
organization by a management official, a supervisor, or a confidential
employee, or by any employee if the participation or activity would
result in a conflict or apparent conflict of interest or would otherwise
be incompatible with law or with the official duties of the employee.
(e) In the case of any labor organization which by omission or
commission has willfully and intentionally called or participated in a
strike, work stoppage or slowdown, or picketed in a manner which
interfered with the operations of a government agency, or has condoned
such activity, the Board shall, upon an appropriate finding it has made
of such a violation --
(1) Revoke the recognition status of the labor organization; or
(2) Take any other appropriate disciplinary action.
(f) The General Counsel may charge a labor organization with
violations of this section. The Board shall conduct proceedings with
regard to such charge and may require a labor organization to take such
actions as it deems necessary to carry out the policies of this section.
(46 FR 35478, July 9, 1981. Redesignated at 54 FR 24138, June 6,
1989)
04 CFR 28.124 Review of arbitration awards.
(a) Either party to an arbitration proceeding conducted pursuant to a
grievance procedure under a collective bargaining agreement may file an
exception to the arbitrator's award within 30 days of its receipt, and
shall serve such to all other parties.
(b) An opposition to the exception may be filed with the Board, and
shall be served on all other parties, within 30 days after receipt of
the exception.
(c) An exception shall be carefully documented as to the reasons
therefor.
(d) The Board's decision regarding an exception shall be based on:
(1) A finding that the award is contrary to any law, rule,
regulation, or Order; or
(2) Other grounds similar to those applied by federal courts in
private sector labor-management relations.
(e) If no exception to an arbitrator's award is filed within 30 days
after it is issued, the award shall be final and binding.
(46 FR 35478, July 9, 1981. Redesignated at 54 FR 24138, June 6,
1989)
04 CFR 28.124 Subpart G -- Corrective Action, Disciplinary and Stay Proceedings
04 CFR 28.130 General authority.
The procedures in this Subpart relate to the Board's functions ''to
consider, decide and order corrective or disciplinary action (as
appropriate) in cases arising'' from any area within the Board's
jurisdiction.
(46 FR 35478, July 9, 1981. Redesignated at 54 FR 24139, June 6,
1989)
04 CFR 28.131 Corrective action proceedings.
(a) When information comes to the attention of the General Counsel
suggesting that a prohibited personnel practice may have occurred,
exists or is to be taken, the General Counsel shall investigate the
matter to the extent necessary to determine whether there are reasonable
grounds to believe that a prohibited personnel practice has occurred,
exists or is to be taken.
(b) If the General Counsel terminates any investigation under this
section which is not also the subject of a charge, the General Counsel
shall prepare and transmit to any person on whose allegation the
investigation was initiated, a written statement notifying the person of
the termination of the investigation and the reasons therefore.
(c) If the General Counsel determines that there are reasonable
grounds to believe that a prohibited personnel practice has occurred,
exists or is to be taken which requires corrective action and which is
not also the subject of a charge, the General Counsel shall report the
determination together with any findings or recommendations to the GAO.
(d) If, after a reasonable period, GAO has not taken the corrective
action recommended, the General Counsel may file a petition for review
with the Board. Such petition for review shall be processed in
accordance with 28.19 through 28.25.
(51 FR 7740, Mar. 6, 1986. Redesignated at 54 FR 24139, June 6, 1989)
04 CFR 28.132 Disciplinary proceedings.
(a) If the General Counsel determines after any investigation under
28.103 or 31 U.S.C. 752(b) that disciplinary action should be initiated
against an employee, the General Counsel shall prepare a written
complaint against the employee containing his/her determination,
together with a statement of the supporting facts, and present the
complaint and the statement to the employee and the Board in accordance
with paragraphs (b) and (c) of this section.
(b) In the case of an employee in a confidential, policy making,
policy-determining, or policy-advocating position appointed by the
President, by and with the advice and consent of the Senate, the
complaint and statement referred to in paragraph (a) of this section,
with any response by the employee, shall be presented to the Congress
for appropriate action in lieu of being presented under paragraph (d) of
this section.
(c) Any employee against whom a complaint has been presented to the
Board under paragraph (a) of this section is entitled to:
(1) A reasonable time to answer orally and in writing and to furnish
affidavits and other documentary evidence in support of the answer;
(2) Be represented by an attorney or other representative;
(3) A hearing before the Board or a member designated by the Board;
(4) Have a transcript kept of any hearing under paragraph (c)(3) of
this section; and
(5) A written decision and reasons therefor at the earliest
practicable date, including a copy of a final decision ordering
disciplinary action.
(d) A final order of the Board may order disciplinary action
consisting of removal, reduction in grade, debarment from GAO employment
for a period not to exceed 5 years, suspension, reprimand, or an
assessment of civil penalty not to exceed $1,000.
(e) There may be no administrative appeal from an order of the Board
under paragraph (d) of this section. An employee subject to a final
decision ordering disciplinary action under this section may obtain
judicial review of the order in the U.S. Court of Appeals for the
judicial circuit in which the employee resides or to the U.S. Court of
Appeals for the District of Columbia in accordance with 31 U.S.C. 752.
(46 FR 35478, July 9, 1981, as amended at 47 FR 56981, Dec. 22, 1982.
Redesignated at 54 FR 24139, June 6, 1989)
04 CFR 28.133 Stay proceedings.
(a) If the General Counsel determines after an investigation under
these rules that there are reasonable grounds to believe that a
personnel action was taken, or is to be taken, as a result of a
prohibited personnel practice, the General Counsel may request any
member of the Board to order a temporary stay of the personnel action
for a period of not more than 60 days.
(b) Content of request. Each request must be signed by the General
Counsel or his/her representative and must set forth:
(1) The names of the parties.
(2) The agency and officials involved.
(3) The nature of the action to be stayed.
(4) A concise statement of facts justifying the charge that the
personnel action was or is to be the result of a prohibited personnel
practice.
(5) The laws or regulations that were or will be violated if the stay
is not issued.
(c) A Board member shall order a temporary stay under paragraph (a)
of this section, unless the member determines that such a stay would not
be appropriate. Unless denied, any temporary stay requested shall be
granted within 3 working days after the date of request.
(d) The Board may grant a further temporary stay or a permanent stay
if the Board concurs in the determination of the General Counsel and
after an opportunity for oral or written comment by the General Counsel
and GAO. A permanent stay by the Board is final and appealable in
accordance with 28.90.
(e) Additional information and vacating a stay. At any time, the
Board, or a member of the Board, where appropriate, may require the
General Counsel and/or the agency to appear and present further
information or explanation on a request for a stay, to file supplemental
briefs or memoranda, or to supply factual information needed by the
Board in making a determination regarding a stay. A stay may be vacated
only by a decision of the full Board.
(54 FR 24139, June 6, 1989)
04 CFR 28.133 Subpart H -- Appeals by Members of the Senior Executive Service
04 CFR 28.140 Personnel actions involving SES members.
Members of the GAO Senior Executive Service (SES) may appeal adverse
actions relating to misconduct, malfeasance or similar action to the
Board in accordance with subpart B. Members of the GAO SES who allege
that they have been subjected to a personnel action that constitutes a
prohibited personnel practice or prohibited discrimination may appeal to
the Board in accordance with subpart B or subpart D respectively.
(46 FR 35478, July 9, 1981. Redesignated at 54 FR 24139, June 6,
1989)
04 CFR 28.141 Performance based actions.
A career appointee removed from SES to a GAO position outside the SES
for less than fully successful executive performance shall, upon notice
of such removal, be entitled, upon request, to an informal hearing
before a member of the Board designated by the Chairman of the Board.
At the hearing the career appointee may appear and present arguments,
but such hearing shall not give the career appointee the right to
initiate an action with the Board under another provision of these
rules, nor need the removal action be delayed as a result of the
granting of such hearing.
(46 FR 35478, July 9, 1981. Redesignated at 54 FR 24139, June 6,
1989)
04 CFR 28.141 Subpart I -- Ex Parte Communications
Source: 48 FR 29666, June 28, 1983, unless otherwise noted.
04 CFR 28.145 Policy.
It is the policy of the Board to strictly regulate ex parte
communications between members of the Board and their decision-making
personnel and any interested party to a proceeding before the Board.
(48 FR 29666, June 28, 1983. Redesignated at 54 FR 24139, June 6,
1989)
04 CFR 28.146 Explanation and definitions.
(a) Ex parte communications are oral or written communications
between decision-making personnel of the Board and an interested party
to a proceeding without providing the other parties to the proceeding a
chance to participate. Not all ex parte communications are prohibited,
however, only those which involve the merits of the case or those which
violate other rules requiring submissions to be in writing.
Accordingly, interested parties may make inquiries about such matters as
the status of a case, when it will be heard, and the method for
transmitting evidence to the Board. Such communications should be
directed to the Administrative Officer to the Board. Parties may not
inquire about such matters as what defense they should use, whether
their evidence is adequate, make a submission orally which is required
to be in writing, or otherwise inquire as to the merits of a pending
case.
(b) In this subpart --
(1) Interested party includes:
(i) Any party, including the General Counsel of the Board, or
representative of a party involved in a proceeding before the Board;
(ii) any person desiring to intervene in any proceeding before the
Board; or
(iii) Any other person who might be affected by the outcome of a
proceeding before the Board.
(2) ''Decision-making personnel'' means the Board, a panel of Board
members, a Board member, a Hearing Officer and/or an employee of the
Board, other than the General Counsel of the Board, who reasonably can
be expected to participate in the decision-making process of the Board.
(48 FR 29666, June 28, 1983. Redesignated at 54 FR 24139, June 6,
1989)
04 CFR 28.147 Prohibited communications.
Ex parte communications concerning the merits of any matter before
the Board for adjudication or which would otherwise violate rules
requiring written submissions are prohibited from the time the
interested party involved has knowledge that the matter may be
considered by the Board until the Board has rendered a final decision on
the case.
(48 FR 29666, June 28, 1983. Redesignated at 54 FR 24139, June 6,
1989)
04 CFR 28.148 Reporting of communications.
Any communication made in violation of this section shall be made a
part of the record in the proceeding and an opportunity for rebuttal
allowed. If the communication was oral, a memorandum stating the
substance of the discussion shall be placed in the record.
(48 FR 29666, June 28, 1983. Redesignated at 54 FR 24139, June 6,
1989)
04 CFR 28.149 Sanctions.
The following sanctions shall be available for violations of this
subpart:
(a) The Board, a panel of Board members, a Board member or a Hearing
Officer, as necessary, may, in the interest of justice, require the
offending party to show cause why his/her claim, interest, motion or
petition should not be dismissed, denied or otherwise adversely
affected.
(b) The Board, a panel of Board members, a Board member or a Hearing
Officer, as necessary, may invoke such sanctions against any offending
party as may be appropriate under the circumstances.
(48 FR 29666, June 28, 1983. Redesignated at 54 FR 24139, June 6,
1989)
04 CFR 28.149 Subpart J -- Savings Provisions
04 CFR 28.155 Savings provisions.
Cases in which a charge has been filed with the General Counsel prior
to June 6, 1989, will continue to be processed in accordance with the
rules previously in effect. In circumstances in those previously filed
cases where the prior rules contain no specific guidance, the provisions
of these rules shall apply.
(54 FR 24149, June 6, 1989)
04 CFR 28.155 SUBCHAPTER C -- CLAIMS; GENERAL
04 CFR 28.155 PART 30 -- SCOPE OF SUBCHAPTER
Authority: 31 U.S.C. 711 and 3702.
04 CFR 30.1 Coverage of regulations in Subchapter C.
The regulations in Subchapter C relate to all classes of claims by
and against the United States except:
(a) Those claims which are under the exclusive jurisdiction of
administrative agencies pursuant to specific statutory authority;
(b) Claims for charges for transportation services furnished for the
account of the United States, which now are to be filed with the General
Services Administration or the agencies out of whose activities they
arise. However, claims by carriers and forwarders against the United
States for amounts administratively deducted from transportation payment
vouchers in connection with loss or damage to property are covered by
this subchapter and are to be filed in the General Accounting Office.
(27 FR 12044, Dec. 6, 1962, as amended at 40 FR 60036, Dec. 31, 1975;
47 FR 56980, Dec. 22, 1982)
04 CFR 30.1 PART 31 -- CLAIMS AGAINST THE UNITED STATES; GENERAL
PROCEDURE
Sec.
31.1 Scope of part.
31.2 Form of claim.
31.3 Claim filed by attorney or agent.
31.4 Where claims should be filed, appeals.
31.5 Statutory limitations on claims.
31.6 Information relating to claims presented to the Claims Group,
Accounting and Financial Management Division of the General Accounting
Office.
31.7 Basis of claim settlements.
31.8 Form of claim settlements.
Authority: 31 U.S.C. 711. Interpret or apply 31 U.S.C. 3702.
04 CFR 31.1 Scope of part.
This part prescribes general procedures applicable to claims against
the United States which must be adjudicated in the General Accounting
Office or in the agency out of whose activities the claim arose before
payment is made or denied exclusive of transportation claims. Special
procedures applicable to specified types or classes of claims against
the United States are contained in the subsequent parts of this
subchapter.
(22 FR 10890, Dec. 28, 1957, as amended at 54 FR 25437, June 15,
1989)
04 CFR 31.1 Filing Requirements for Claimants
04 CFR 31.2 Form of claim.
Unless otherwise specifically provided, claims will be considered
only when presented in writing over the signature and address of the
claimant or over the signature of the claimant's authorized agent or
attorney. Generally, no particular form is required for filing a claim;
however, claim forms are prescribed in succeeding parts of this
subchapter for specific classes of claims.
(22 FR 10890, Dec. 28, 1957)
04 CFR 31.3 Claim filed by attorney or agent.
A claim filed by an agent or attorney must be supported by a duly
executed power of attorney or other documentary evidence of the agent's
or attorney's right to act for the claimant. See part 11 of this
chapter.
(22 FR 10890, Dec. 28, 1957, as amended at 45 FR 84955, Dec. 24,
1980; 54 FR 51867, Dec. 19, 1989)
04 CFR 31.4 Where claims should be filed, appeals.
A claimant should file his or her claim with the administrative
department or agency out of whose activities the claim arose. The
agency shall initially adjudicate the claim. If the claimant is not
satisfied with the agency's determination, he or she may appeal that
determination to the Claims Group, General Accounting Office. Claims
which cannot be resolved by the department or agency shall be
transmitted to the Claims Group, General Accounting Office, for
resolution. Claims referred by agencies or by claimants to the General
Accounting Office, or any correspondence regarding a claim, should be
addressed to: Claims Group, U.S. General Accounting Office, Washington,
DC 20548.
(54 FR 51868, Dec. 19, 1989)
04 CFR 31.5 Statutory limitations on claims.
(a) Statutory limitations relating to claims generally. All claims
against the United States Government, except as otherwise provided by
law, are subject to the 6-year statute of limitations contained in 31
U.S.C. 3702(b). To satisfy the statutory limitation, a claim must be
received by the General Accounting Office, or by the department or
agency out of whose activities the claim arose, within 6 years from the
date the claim accrued. The burden of establishing compliance with the
statute of limitations rests with the claimant.
(b) Statutory limitation on check claims. The statutory limitation
on claims on account of checks appearing to have been paid are contained
in 31 U.S.C. 3702(c). To protect their own interests, it is the
responsibility of claimants to present their claims for the proceeds of
checks to the Treasurer of the United States or the General Accounting
Office if the statutory period of limitation is about to expire.
(c) Other statutory limitations. It is not intended to imply that
statutes of limitation imposed by Congress are necessarily limited to
those cited in paragraphs (a) and (b) of this section. It is incumbent
on claimants to inform themselves regarding other possible statutory
limitations.
(23 FR 7478, Sept. 26, 1958, as amended at 40 FR 60036, Dec. 31,
1975; 47 FR 56980, Dec. 22, 1982; 54 FR 51868, Dec. 19, 1989)
04 CFR 31.5 Information Relating to Claims
04 CFR 31.6 Information relating to claims presented to the Claims
Group, General Government Division of the General Accounting Office.
Claimants or their authorized representatives may obtain information
relating to claims which have been presented to the Claims Group,
General Government Division of the General Accounting Office by
addressing correspondence to
Claims Group, General Government Division,
U.S. General Accounting Office,
Washington, DC 20548.
or by calling in person at that Office at 441 G Street NW.
(23 FR 7478, Sept. 26, 1958, as amended at 40 FR 60036, Dec. 31,
1975; 54 FR 25437, June 15, 1989)
04 CFR 31.7 Basis of claim settlements.
Claims are settled on the basis of the facts as established by the
Government agency concerned and by evidence submitted by the claimant.
Settlements are founded on a determination of the legal liability of the
United States under the factual situation involved as established by the
written record. The burden is on claimants to establish the liability
of the United States, and the claimants' right to payment. The
settlement of claims is based upon the written record only.
(22 FR 10890, Dec. 28, 1957)
04 CFR 31.8 Form of claim settlements.
(a) Allowed claims. The Claims Group, General Government Division of
the General Accounting Office will certify claims for payment either by
use of a Certificate of Settlement, GAO Form 39, or by certificate of
allowance placed on the voucher when voucher procedures are in effect.
(b) Disallowed claims. When part of a claim is allowed and part
disallowed, a statement relating to the disallowed portion will be
included on the certificate of settlement or the voucher. When the full
amount of a claim is disallowed, the claimant will be advised by
issuance of Settlement Certificate, GAO Form 44.
(23 FR 7478, Sept. 26, 1958, as amended at 40 FR 60036, Dec. 31,
1975; 54 FR 25438, June 15, 1989)
04 CFR 31.8 PART 32 -- REVIEW AND RECONSIDERATION OF GENERAL ACCOUNTING
OFFICE CLAIMS SETTLEMENTS
Sec.
32.1 Who may obtain review.
32.2 Basis for request for review.
32.3 Return of check or warrant with request for review.
Authority: 31 U.S.C. 711.
04 CFR 32.1 Who may obtain review.
Settlements made pursuant to 31 U.S.C. 3702 will be reviewed: (a) In
the discretion of the Comptroller General upon the written application
of: (1) A claimant whose claim has been settled or (2) the head of the
department or Government established to which the claim or account
relates, or (b) upon motion of the Comptroller General at any time.
(22 FR 10890, Dec. 28, 1957, as amended at 47 FR 56980, Dec. 22,
1982)
04 CFR 32.2 Basis for request for review.
Applications for review of claim settlements should state the errors
which the applicant believes have been made in the settlement and which
form the basis of his request for reconsideration.
(22 FR 10890, Dec. 28, 1957)
04 CFR 32.3 Return of check or warrant with request for review.
Unless otherwise directed by the Comptroller General on the
presentation of proper facts in the particular case, the check issued
upon a settlement must not be cashed when its amount includes any item
as to which review is applied for, but should accompany the application
for review.
(22 FR 10890, Dec. 28, 1957)
04 CFR 32.3 PART 33 -- DECEASED CIVILIAN OFFICERS AND EMPLOYEES;
PROCEDURES FOR SETTLEMENT OF ACCOUNTS
Sec.
33.1 Scope of part.
33.2 Definitions.
33.3 Forms prescribed for procedures in this part.
33.4 Notifying employees; agency responsibility.
33.5 Designation of beneficiary.
33.6 Claims settlement jurisdiction.
33.7 Securing claim on employee's death.
33.8 Claims involving minors or incompetents.
33.9 Return of unnegotiated Government checks.
33.10 Applicability of general procedures.
Authority: 31 U.S.C. 711. Interpret or apply 5 U.S.C. 5582 and 5583.
04 CFR 33.1 Scope of part.
(a) Accounts covered by this part. This part prescribes forms and
procedures for the prompt settlement of accounts of deceased civilian
officers and employees of the Federal Government and of the government
of the District of Columbia (including wholly owned and mixed-ownership
Government corporations), as contemplated by 5 U.S.C. 5581, 5582, 5583.
The term ''deceased employees'' as used in this part includes former
civilian officers and employees who die subsequent to separation from
the employing agency.
(b) Exceptions. The procedures prescribed by this part do not apply
to:
(1) Accounts of deceased officers and employees of the Federal land
banks, Federal intermediate credit banks, or regional banks for
cooperatives (see 5 U.S.C. 5581(1)).
(2) Payment of unpaid balance of salary or other sums due deceased
Senators or officers or employees of the Senate (see 2 U.S.C. 36a; 5
U.S.C. 5581(1)).
(3) Payment of unpaid balance of salary or other sums due deceased
Members of the House of Representatives (see 2 U.S.C. 38a). See 33.6
for settlement of accounts of deceased officers and employees of the
House of Representatives.
(33 FR 685, Jan. 19, 1968)
04 CFR 33.2 Definitions.
The term ''unpaid compensation,'' as defined in the act and when used
in this part, means the pay, salary, or allowances, or other
compensation due on account of the services of the decedent for the
Federal Government or the government of the District of Columbia. It
shall include, but not be limited to,
(a) All per diem in lieu of subsistence, mileage, and amounts due in
reimbursement of travel expenses, including incidental and miscellaneous
expenses which are incurred in connection with the travel and for which
reimbursement is due;
(b) All allowances upon change of official station;
(c) All quarters and cost-of-living allowances and overtime or
premium pay;
(d) Amounts due for payment of cash awards for employees'
suggestions;
(e) Amounts due as refund of salary deductions for U.S. Savings
bonds;
(f) Payment for all accumulated and current accrued annual or
vacation leave equal to the compensation the decedent would have
received had he lived and remained in the service until the expiration
of the period of such annual or vacation leave;
(g) The amounts of all checks drawn in payment of such compensation
which were not delivered by the Government to the officer or employee
during his lifetime or of any unnegotiated checks returned to the
Government because of the death of the officer or employee.
(26 FR 12275, Dec. 23, 1961)
04 CFR 33.3 Forms prescribed for procedures in this part.
Forms prescribed for procedures in this part are:
SF 1152 Designation of Beneficiary, Unpaid Compensation for Deceased
Civilian Employee.
SF 1153 Claim of Designated Beneficiary and/or Surviving Spouse for
Unpaid Compensation of Deceased Civilian Employee.
SF 1155 Claim for Unpaid Compensation of Deceased Civilian Employee
(No Designated Beneficiary or Surviving Spouse).
(23 FR 7479, Sept. 26, 1958)
04 CFR 33.4 Notifying employees; agency responsibility.
Each agency of the Government affected will bring to the attention of
its civilian employees the provisions of the act relative to their right
to designate a beneficiary or beneficiaries to receive the amounts due
and the disposition to be made of unpaid amounts where no beneficiary or
beneficiaries have been designated.
(22 FR 10891, Dec. 28, 1957)
04 CFR 33.5 Designation of beneficiary.
(a) Designation Form. SF 1152, Designation of Beneficiary, Unpaid
Compensation of Deceased Civilian Employee, is prescribed for use by
employees in designating a beneficiary and in changing or revoking a
previous designation. However, in the absence of the prescribed form,
any designation, change, or cancellation of beneficiary witnessed and
filed in accordance with the general requirements of this part shall be
acceptable. Each agency subject to the provisions of the act will
furnish the employee SF 1152 upon request therefor.
(b) Who may be designated. An employee may designate any person or
persons as beneficiary. The term ''person or persons'' as used in this
part includes a legal entity or the estate of the deceased employee.
(c) Executing and filing a designation of beneficiary form. The SF
1152 must be executed in duplicate by the employee and filed with the
employing agency where the proper officer will sign it and insert the
date of receipt in the space provided on each part, file the original,
and return the duplicate to the employee. The designation will be filed
in the particular office which authorizes payment of the employee's
compensation, or such other place as the head of the agency may direct.
(d) Effective period of a designation. A designation of beneficiary,
properly executed and filed in the agency of employment, unless earlier
changed or revoked in writing, will be effective as long as employment
by the same agency continues and thereafter until the employee is
transferred or reemployed by the same or another department or agency of
the Government. Should an employee resign and be reemployed, or be
transferred to another agency, and desire the unpaid compensation to be
paid to a designated beneficiary, another designation of beneficiary
form must be executed, as directed in paragraph (c) of this section. If
an amount should become due from the agency from which the employee was
separated, it will be the responsibility of such agency to ascertain,
prior to payment, if the employee was reemployed and executed a
designation of beneficiary in connection with such employment, and to
pay the compensation to any person or persons so designated. A new
designation of beneficiary is not required as to an employee whose
agency or site function, records, equipment, and personnel are absorbed
by another agency.
(e) Change or revocation of a designation. A designation of
beneficiary previously made may be changed or revoked as of a later date
by the execution and filing of another SF 1152 by the employee, as
directed in paragraph (c) of this section. When a designation of
beneficiary is changed or revoked, the employing agency should return
the earlier designation to the employee.
(22 FR 10891, Dec. 28, 1957, as amended at 28 FR 12923, Dec. 5, 1963)
04 CFR 33.6 Claims settlement jurisdiction.
(a) District of Columbia, Canal Zone Government and Government
corporations. Claims for unpaid compensation due deceased employees of
the government of the District of Columbia and the Canal Zone Government
on the Isthmus of Panama shall be paid by these entities and those of
wholly owned and mixed ownership Government corporations may be paid by
the corporations. 5 U.S.C. 5583(b).
(b) Other agencies. Except as otherwise provided in paragraph (c) of
this section, claims for unpaid compensation due deceased employees of
other agencies of the Federal Government, including officers and
employees of the House of Representatives, may be paid by those
agencies.
(c) General Accounting Office. Except as provided in paragraph (a)
of this section, claims for unpaid compensation due deceased employees
of the Federal Government will be paid only upon settlement by the
Claims Group, Accounting and Financial Management Division of the
General Accounting Office in the following cases:
(1) When doubt exists as to the amount or validity of the claim.
(2) When doubt exists as to the person(s) properly entitled to
payment.
(3) When the claim involves uncurrent checks. Unnegotiated and/or
undelivered checks for unpaid compensation due the decedent which are
drawn on designated depositaries and have not been paid prior to the
close of the fiscal year next following the fiscal year in which the
checks were issued are uncurrent. Claims for the proceeds of such
checks must be submitted to the Claims Group, Accounting and Financial
Management Division of the General Accounting Office for settlement
pursuant to the provisions of 31 U.S.C. 3328(b). The checks, if
available, should accompany the claims.
(d) Payment as provided in paragraphs (a), (b), and (c) of this
section shall be made to the person or persons surviving at date of
death in the following order of precedence:
(1) To the beneficiary or beneficiaries designated by the employee in
a writing received in the employing agency prior to his death;
(2) If there is no designated beneficiary, to the surviving spouse of
the employee;
(3) If none of the above, to the child or children of the employee
and decendents of deceased children by representation;
(4) If none of the above, to the parents of the deceased employee or
the survivor of them;
(5) If none of the above, to the duly appointed legal representative
of the estate of the deceased employee; and
(6) If none of the above, to the person or persons entitled under the
laws of the domicile of the employee at the time of his death. 5 U.S.C.
5582(b).
When the person(s) otherwise entitled to payment has not submitted a
claim and cannot be located within 3 years after the death of the
employee, payment shall be made to the person(s) in the same class of
entitlement, or in the absence of anyone in the same class then the
person(s) next in order of precedence as described in this paragraph.
(37 FR 26291, Dec. 9, 1972, as amended at 40 FR 60036, Dec. 31, 1975;
47 FR 56980, Dec. 22, 1982)
04 CFR 33.7 Securing claim on employee's death.
As soon as practicable after the death of a civilian employee
included within the provisions of the act, the agency in which he or she
was last employed, upon determining that unpaid compensation is due the
decedent, will request each designated beneficiary or, if no beneficiary
was designated, the surviving spouse, to execute SF 1153, Claim of
Designated Beneficiary and/or Surviving Spouse for Unpaid Compensation
of Deceased Civilian Employee. When there is no designated beneficiary
or surviving spouse, the employing agency will furnish the person or
persons next in order of precedence, in accordance with the first
section of the act, 5 U.S.C. 61f, SF 1155, Claim for Unpaid Compensation
of Deceased Civilian Employee (No Designated Beneficiary or Surviving
Spouse). When the designated beneficiary is the estate of the decedent,
the employing agency will furnish the legal representative, heir, or
heirs of the decedent SF 1055, Claim Against the United States for
Amounts Due in the Case of a Deceased Creditor, prescribed in part 35 of
this chapter, since this form will elicit the information required for
settlement of such claims. Any assistance deemed necessary for the
proper execution of the forms will be furnished to all claimants by the
employing agency.
(22 FR 10891, Dec. 28, 1957)
04 CFR 33.8 Claims involving minors or incompetents.
(a) If a guardian or committee has been appointed for a minor or
incompetent appearing entitled to unpaid compensation, the claim should
be supported by a short certificate of the court showing the appointment
and qualification of the claimant in such capacity.
(b) If no guardian or committee has been or will be appointed, the
initial claim should be supported by a statement showing:
(1) Claimant's relationship to the minor or incompetent, if any;
(2) The name and address of the person having care and custody of the
minor or incompetent;
(3) That any moneys received will be applied to the use and benefit
of the minor or incompetent; and
(4) That the appointment of a guardian or committee is not
contemplated.
(26 FR 12275, Dec. 23, 1961)
04 CFR 33.9 Return of unnegotiated Government checks.
All unnegotiated U.S. Government checks drawn to the order of a
decedent representing unpaid compensation as defined in 33.2, and in
the possession of the claimant, should be returned to the employing
agency concerned. Claimants should be instructed to return any other
U.S. Government checks, drawn to the order of a decedent for purposes
other than unpaid compensation, such as veterans benefits, social
security benefits, or Federal tax refunds, to the agency from which
received with request for further instructions from that agency.
(23 FR 7479, Sept. 26, 1958)
04 CFR 33.10 Applicability of general procedures.
When not in conflict with this part, the provisions of part 31 of
this subchapter relating to procedures applicable to claims generally,
are also applicable to the settlement of accounts of deceased civilian
officers and employees.
(22 FR 10891, Dec. 28, 1957)
04 CFR 33.10 PART 34 -- DECEASED MEMBERS OF THE ARMED FORCES AND
NATIONAL GUARD; PROCEDURES FOR SETTLEMENT OF ACCOUNTS
Sec.
34.1 Scope of part.
34.2 Forms for filing claims.
34.3 Jurisdiction.
34.4 Furnishing forms and assistance to claimants.
34.5 Claims involving minors or incompetents.
34.6 Claims for unnegotiated Government checks.
34.7 Applicability of general claim procedures.
Authority: 31 U.S.C. 711. Interpret or apply 10 U.S.C. 2771; 32
U.S.C. 714; sec. 3, 70A Stat. 619, as amended, 33 U.S.C. 857a; and
sec. 4, 70A Stat. 619, as amended, 42 U.S.C. 213a.
Source: 26 FR 12275, Dec. 23, 1961, unless otherwise noted.
04 CFR 34.1 Scope of part.
(a) This part prescribes forms and procedures for the prompt
settlement of the accounts of:
(1) Deceased members of the Armed Forces (including deceased
commissioned officers of the Public Health Service and the National
Oceanic and Atmospheric Administration) pursuant to 10 U.S.C. 2771.
(2) Deceased members of the National Guard pursuant to 32 U.S.C.
714.
(b) A designation of beneficiary under 10 U.S.C. 2771 or 32 U.S.C.
714, properly executed and filed in the place designated for such
purpose in the regulations of the department concerned, will be
effective thereafter until:
(1) Expressly changed or revoked in writing or (2) the serviceman
transfers to a different branch of the military service or (3) returns
to the same or a different branch after a break in service.
(c) The term deceased members as used in the part includes former
members who die subsequent to discharge or separation from the service.
(d) The payment provisions of 10 U.S.C. 2771 and 32 U.S.C. 714 are
effective only when the member's death occurs on or after January 1,
1956. Claims relating to the accounts of members dying before such date
are for consideration by the Claims Group, Accounting and Financial
Management Division of the General Accounting Office.
(e) The term pay and allowances when used in this part includes any
amount due a decedent from the service of which he was a member,
exclusive of amounts payable administratively pursuant to other specific
authority.
(33 FR 685, Jan. 19, 1968, as amended at 37 FR 26291, Dec. 9, 1972;
37 FR 26707, Dec. 15, 1972; 40 FR 60036, Dec. 31, 1975)
04 CFR 34.2 Forms for filing claims.
The following standard forms are prescribed for use in the settlement
of accounts to which this part relates:
SF 1174 -- Claim of Designated Beneficiary for Unpaid Pay and
Allowances of Deceased Member of the Armed Forces.
SF 1175 -- Claim for Unpaid Pay and Allowances of Deceased Member of
the Armed Forces (No Designated Beneficiary).
04 CFR 34.3 Jurisdiction.
(a) Administrative agencies. Except as otherwise provided in
paragraph (b) of this section, pay and allowances due deceased members
of the Armed Forces and deceased members of the National Guard shall be
paid by the military service or department concerned.
(b) General Accounting Office. Payments shall be made only upon
settlement by the Claims Group, Accounting and Financial Management
Division of the General Accounting Office in the following cases:
(1) When doubt exists as to the amount or validity of the claim.
(2) When doubt exists as to the person(s) properly entitled to
payment.
(3) When the claim involves uncurrent checks. Unnegotiated and/or
undelivered checks for pay and allowances due the decedent which are
drawn on designated depositaries and have not paid prior to the close of
the fiscal year next following the fiscal year in which the checks were
issued are uncurrent. Claims for the proceeds of such checks must be
submitted to the Claims Group, Accounting and Financial Management
Division of the General Accounting Office for settlement pursuant to the
provisions of 31 U.S.C. 3328(b). The checks, if available, should
accompany the claims.
(c) Payment as provided in paragraphs (a) and (b) of this section
shall be made to the person or persons surviving at date of death in the
following order of precedence:
(1) Beneficiary designated by the member in writing to receive an
amount, if the designation is received, before the deceased member's
death, at the place named in the regulations prescribed by the Secretary
concerned.
(2) Surviving spouse.
(3) Children and their descendants, by representation.
(4) Father and mother in equal parts or, if either is dead, the
survivor.
(5) Legal representative.
(6) Person entitled under the law of the domicile of the deceased
member.
When the person(s) otherwise entitled to payment has not submitted a
claim and cannot be located within 3 years after the death of the
member, payment shall be made to the person(s) in the same class of
entitlement, or in the absence of anyone in the same class then the
person(s) next in order of precedence as described in this paragraph.
(37 FR 26291, Dec. 9, 1972, as amended at 40 FR 60036, Dec. 31, 1975;
47 FR 56980, Dec. 22, 1982)
04 CFR 34.4 Furnishing forms and assistance to claimants.
As soon as practicable after death of a member, the department under
which the member was serving at date of death will furnish the
designated beneficiary or beneficiaries Standard Form 1174, Claim of
Designated Beneficiary for Unpaid Pay and Allowances of Deceased Member
of the Armed Forces, for use in filing claim for any unpaid pay or
allowances that may be due the decedent. If there is no designated
beneficiary, the department will furnish the person or persons next in
order of precedence, in accordance with 10 U.S.C. 2771(a) or 32 U.S.C.
714(a), SF 1175, Claim for Unpaid Pay and Allowances of Deceased Member
of the Armed Forces (No Designated Beneficiary). Any assistance deemed
necessary for the proper execution of the forms will be furnished to all
claimants by the departments concerned.
04 CFR 34.5 Claims involving minors or incompetents.
(a) If a guardian or committee has been appointed for a minor or
incompetent appearing entitled to unpaid amounts, the claims should be
supported by a short certificate of the court showing the appointment
and qualification of the claimant in such capacity.
(b) If no guardian or committee has been or will be appointed, the
initial claim should be supported by a statement showing
(1) Claimant's relationship to the minor or incompetent, if any;
(2) The name and address of the person having care and custody of the
minor or incompetent;
(3) That any moneys received will be applied to the use and benefit
of the minor or incompetent; and
(4) That the appointment of a guardian or committee is not
contemplated.
04 CFR 34.6 Claims for unnegotiated Government checks.
Unnegotiated U.S. Government checks drawn to the order of the
decedent by the service of which he was a member should be returned to
the department concerned for consideration in connection with the
settlement of the member's account. Claimants should be advised that
all other unnegotiated U.S. Government checks drawn to the order of the
decedent should be returned to the agency from which received with
request for further instructions from that agency.
04 CFR 34.7 Applicability of general claim procedures.
When not in conflict with this part, the provisions of part 31 of
this title, relating to procedures applicable to claims generally, are
also applicable to the settlement of accounts of deceased members.
(33 FR 685, Jan. 19, 1968)
04 CFR 34.7 PART 35 -- DECEASED PUBLIC CREDITORS GENERALLY, CLAIM
SETTLEMENT PROCEDURES
Sec.
35.1 Scope of part.
35.2 Form prescribed for procedures in this part.
35.3 Claim filing requirements.
35.4 Return of unnegotiated Government checks.
35.5 Claims involving minors.
Authority: 31 U.S.C. 711. Interpret or apply 31 U.S.C. 3702.
Source: 25 FR 6234, July 2, 1960, unless otherwise noted.
04 CFR 35.1 Scope of part.
This part relates to the settlement of claims for amounts alleged to
be due the estates of deceased individual public creditors, except when
such claims are within the jurisdiction of administrative agencies
pursuant to specific authority. The claims coming within the scope of
this part include, among others, claims for amounts due deceased
contractors (whether under terminated or continuing contracts) and other
deceased public creditors for supplies furnished and services rendered.
(26 FR 12276, Dec. 23, 1961)
04 CFR 35.2 Form prescribed for procedures in this part.
The following standard form is prescribed for use in filing claims on
behalf of deceased public creditors: SF 1055 -- Claim Against the
United States for Amounts Due in the Case of a Deceased Creditor.
04 CFR 35.3 Claim filing requirements.
(a) Use of prescribed form. Claims to which this chapter relates,
including claims for the proceeds of U.S. Government checks, will be
filed on SF 1055.
(b) Assisting claimants in filing claims. Such assistance as is
deemed necessary may be given to claimants by the administrative
agencies to insure proper execution and submission of the claim forms,
SF 1055.
(c) Where claims should be filed. Claims for amounts due deceased
public creditors will be filed initially in the administrative office
out of whose activities they arise.
04 CFR 35.4 Return of unnegotiated Government checks.
All unnegotiated U.S. Government Checks in possession of a claimant
which are drawn to the order of a deceased public creditor should be
returned to the agency from which received.
04 CFR 35.5 Claims involving minors.
(a) If a guardian has been appointed for a minor appearing entitled
to unpaid amounts the claim should be supported by a short certificate
of the court showing the appointment and qualification of the claimant
in such capacity.
(b) If no guardian has been or will be appointed, the initial claim
should be supported by a statement showing:
(1) Claimant's relationship to the minor, if any;
(2) The name and address of the person having care and custody of the
minor;
(3) That any moneys received will be applied to the use and benefit
of the minor; and
(4) That the appointment of a guardian is not contemplated.
(26 FR 12276, Dec. 23, 1961)
04 CFR 35.5 PART 36 -- INCOMPETENT PUBLIC CREDITORS; PROCEDURES FOR
SETTLEMENT OF ACCOUNTS
Sec.
36.1 Scope of part.
36.2 Where claims should be filed.
36.3 Claim filing requirements.
36.4 Disposition of unnegotiated and undelivered Government checks.
36.5 Applicability of general claim procedures.
Authority: 31 U.S.C. 711. Interpret or apply 31 U.S.C. 3702.
Source: 23 FR 7480, Sept. 26, 1958, unless otherwise noted.
04 CFR 36.1 Scope of part.
This part prescribed the procedures applicable to the settlement of
claims for amounts due incompetent public creditors of the United
States, including claims for the proceeds of Government checks drawn on
the Treasurer of the United States or other authorized Government
depository to the order of such creditors, except those claims which are
under the exclusive jurisdiction of administrative agencies pursuant to
specific statutory authority.
04 CFR 36.2 Where claims should be filed.
Claims for amounts due incompetent public creditors will be filed
initially with the Government agency out of whose activities they arise.
(33 FR 685, Jan. 19, 1968)
04 CFR 36.3 Claim filing requirements.
(a) Form of claim. No form is prescribed for use in making claim for
sums due incompetent creditors of the United States. Such claims must
be filed in writing over the signature and full address of the person
claiming on behalf of the incompetent creditor and must set forth the
connection of the incompetent creditor with the U.S. Government, giving
the name of the department, bureau, establishment or agency involved.
(b) Claim filed by guardian or committee -- (1) Initial claim. The
initial claim filed by the guardian or committee of the estate of an
incompetent must be accompanied by a short certificate of the court
showing the appointment and qualification of the claimant as guardian or
committee.
(2) Claims for recurring payments. Subsequent claims from guardians
or committees for recurring payments need not be accompanied by an
additional certificate of the court, but they must be supported by a
statement that the appointment is still in full force and effect.
(c) Claims filed by other than guardian or committee. When the
amount due the incompetent is small and no guardian or committee of the
estate has been or will be appointed, payment may be made, in the
discretion of the Comptroller General, to the person or persons having
care or custody of the incompetent, or to close relatives who will hold
the amount for the use and benefit of the incompetent. The claim must
be supported by a statement showing:
(1) That no guardian or committee has been or will be appointed;
(2) The claimant's relationship to the incompetent, if any;
(3) The name and address of the person having care and custody of the
incompetent; and
(4) That any amount paid to the claimant will be applied to the use
and benefit of the incompetent.
04 CFR 36.4 Disposition of unnegotiated and undelivered Government
checks.
All unnegotiated U.S. Government checks in possession of the
claimant, drawn to the order of the incompetent public creditor and
involved in the claim, should be returned to the agency from which
received.
04 CFR 36.5 Applicability of general claim procedures.
The provisions of part 31 of this subchapter relating to the
procedures applicable to claims generally are applicable also to the
settlement of accounts of incompetent public creditors to which this
chapter relates.
04 CFR 36.5 SUBCHAPTER D -- TRANSPORTATION
04 CFR 36.5 PART 51 -- DETERMINATIONS
Authority: 31 U.S.C. 711. Interpret or apply 31 U.S.C. 3511 and
3512.
04 CFR 51.1 Scope of part.
This part contains basic determinations by the Comptroller General as
to the extent he deems it necessary to continue or discontinue to
exercise the authority to prescribe forms and uniform procedures
provided in 31 U.S.C. 3511.
(40 FR 47511, Oct. 9, 1975, as amended at 47 FR 56989, Dec. 22, 1982)
04 CFR 51.2 Standard forms and procedures.
In connection with the audit of payments for transportation services
furnished for the account of the United States and the adjustment of
claims pertaining thereto, the Administrator, General Services
Administration, may prescribe standard forms and procedures without
consultation with the General Accounting Office, except that the
prescription thereof is subject to the uniform standards and procedures
necessary to permit performance of the discretionary function vested by
statute in the Comptroller General and other uniform fiscal requirements
deemed necessary, as prescribed in 4 CFR part 52.
(47 FR 50843, Nov. 10, 1982)
04 CFR 51.2 PART 52 -- UNIFORM STANDARDS AND PROCEDURES FOR
TRANSPORTATION TRANSACTIONS
Authority: 31 U.S.C. 711. Interpret or apply 31 U.S.C. 3511, 3512,
3513, 3526 and 3529; sec. 901(a), 49 Stat. 2015, 46 U.S.C. 1241(a);
sec. 5, 88 Stat. 2104, 49 U.S.C. 1517.
04 CFR 52.1 Scope of part.
This part contains uniform standards and procedures relating to
discretionary functions vested by statute in the Comptroller General and
to matters requiring uniformity of fiscal practices relating to
transportation transactions entered into for the account of the U.S.
Government.
(40 FR 47512, Oct. 9, 1975)
04 CFR 52.2 Use of American flag vessels and certificated air carriers.
(a) Transportation of passengers. Section 901 of the Merchant Marine
Act of 1936, 46 U.S.C. 1241, requires the use of American flag vessels
for travel on official business; and section 5 of the International Air
Transportation Fair Competitive Practices Act of 1974, 49 U.S.C. 1517,
requires the use of air carriers certificated under section 401 of the
Federal Aviation Act of 1958 (American flag) for Government-financed
passenger transportation (including but not limited to Government
dependents, consultants, grantees, contractors and subcontractors), when
such carriers are available. Compliance with section 901 and section 5
is required whether the transportation expenses are paid by the United
States or reimbursed to the traveler.
(b) Transportation of personal effects and freight. Section 901 of
the Merchant Marine Act of 1936, 46 U.S.C. 1241, requires the use of
American flag vessels by officers and employees of the United States for
the transportation of their personal effects, when such vessels are
available, and section 5 of the International Air Transportation Fair
Competitive Practices Act of 1974, 49 U.S.C. 1517, requires the use of
air carriers certificated under section 401 of the Federal Aviation Act
of 1958 (American flag) for any Government-financed movement of freight
by air when such air carriers are available.
(c) Disallowance of expenditures. The Comptroller General will
disallow any expenditures for commercial non-American-flag air or
foreign-flag ocean passenger transportation, or for foreign-flag ocean
transportation of personal effects or non-American-flag air
transportation of freight, unless there is attached to the payment
voucher a certificate or memorandum adequately explaining why
American-flag service was unavailable signed by the traveler or other
responsible official of the agency authorizing the travel or
transportation who has knowledge of the facts concerning such usage.
(d) Required documentation. Each voucher for reimbursement of
expenses for travel in whole or in part via a non-American-flag air or
foreign flag ocean carrier, and each bill for payment of transportation
services furnished in whole or in part by a non-American-flag air or
foreign flag ocean carrier will be supported by the following
documentation:
(1) Required certificate. The certificate or memorandum required
under this part should be substantially as follows:
I certify that it (is) (was) necessary for -------------------- (name
of traveler or agency) to use -------------------- (foreign-flag
vessel(s)) -------------------- or noncertificated /1/ air carrier(s)
-------------------- flight identification No(s). or to transport
(personal effects) (freight) between -------------------- and
-------------------- en route from -------------------- to
-------------------- on -------------------- (date) for the following
reasons:
----------------------------------------------
----------------------------------------------
----------------------------------------------
Date XXXXXXXXX
Signature of traveler or authorizing officer XXXXXXXXX
Title or position XXXXXXXXXXX
Organization XXXXXXXXXXXXX
(2) Documentation for passenger and freight transportation by
American-flag direct air carriers. All bills submitted by American-flag
direct air carriers for payment for commercial foreign air passenger or
freight transportation must contain either: (i) A certification by the
carrier that no non-American-flag air carriers were used in the carriage
of the passenger or freight or (ii) copies of documents required to be
retained by the carrier under 14 CFR part 249 that would indicate which
portion of the through movement was performed by American-flag and
non-American-flag air carriers, together with the certificate required
in paragraph (d)(1) of this section covering such usage.
(3) Documentation by indirect air carriers. All bills submitted by
indirect air carriers as defined in 14 CFR 296.1 and 297.1 for the
payment of transportation charges for the movement of freight by air
must be supported by a copy of the air waybill and manifest required to
be executed by 14 CFR 296.70 and 297.51.
(e) Responsibility of carrier to secure certificate. The certificate
or memorandum required under paragraph (d)(1) of this section must be
obtained by the ocean or air carrier or freight forwarder and submitted
as support in billing charges for transportation services.
(f) Responsibility of accountable officers. Certifying officers and
military disbursing officers have the responsibility in the first
instance of determining the accuracy and acceptability of the
certification or memorandum and other documentation required in
paragraph (d) of this section which must be attached to bills involving
transportation by non-American-flag air carriers and foreign-flag
vessels prior to the certification of such bills. When there is doubt
as to the acceptability of the certification, accountable officers or
the head of the agency involved may request an advance decision by
addressing a submission to the Comptroller General of the United States,
U.S. General Accounting Office, Washington, DC 20548.
(g) Responsibility of General Services Administration. In auditing
vouchers for payment of transportation charges to carriers and
forwarders, the General Services Administration will ascertain that
payments involving the use of a non-American-flag vessel or air carrier
are supported by the required certificate or memorandum and
documentation required in paragraph (d) of this section justifying such
use. When there is doubt as to the accuracy or acceptability of any
justification, the matter will be referred to the Comptroller General
for decision.
(40 FR 47512, Oct. 9, 1975, as amended at 47 FR 56980, Dec. 22, 1982)
/1/ Section 401 of Federal Aviation Act of 1958 (49 U.S.C. 1501).
04 CFR 52.2 PART 53 -- REVIEW OF GENERAL SERVICES ADMINISTRATION
TRANSPORTATION SETTLEMENT ACTIONS
Sec.
53.1 Definitions.
53.2 Actions reviewable by Comptroller General.
53.3 Requests for review.
53.4 Copies to General Services Administration.
Authority: 31 U.S.C. 711. Interpret or apply sec. 322, 54 Stat.
955, as amended, 49 U.S.C. 66(b).
Source: 40 FR 47513, Oct. 9, 1975, unless otherwise noted.
04 CFR 53.1 Definitions.
(a) Claim means any bill or demand, including submission of voucher
or supplemental bill, for payment of charges for transportation and
related services by a carrier or forwarder entitled under 49 U.S.C. 66
to payment for such services prior to audit by the General Services
Administration.
(b) Settlement means any action taken by the General Services
Administration in connection with the audit of payments for
transportation and related services furnished for the account of the
United States that has a dispositive effect, including:
(1) Deduction action (or refund by carrier) in adjustment of asserted
transportation overcharges;
(2) Disallowance of a claim, or supplemental bill, for charges for
transportation and related services, either in whole or in part;
(3) Any other action that entails finality of administrative
consideration.
04 CFR 53.2 Actions reviewable by Comptroller General.
Actions taken by the General Services Administration on a claim by a
carrier or freight forwarder entitled under 49 U.S.C. 66 to be paid for
transportation services prior to audit that have dispositive effect and
constitute a settlement action as defined in 53.1 will be reviewed by
the Comptroller General, provided request for review of such action is
made within six months (not including time of war) from the date such
action is taken or within the periods of limitation specified in 49
U.S.C. 66(a), whichever is later.
04 CFR 53.3 Requests for review.
Requests for review of settlement actions by the General Services
Administration should be addressed to the Comptroller General of the
United States, U.S. General Accounting Office, Washington, D.C. 20548.
Each request for review must identify the transaction as to which review
is requested by the date the action was taken, the Government bill of
lading or Government transportation request number, the carrier's bill
number, Government voucher number and date of payment, General Services
Administration claim number, or other identifying information, to enable
speedy location of the pertinent records. Each request for review
should state why the action taken is believed erroneous and specify any
factual, technical, or legal basis relied on.
04 CFR 53.4 Copies to General Services Administration.
Review of settlement actions will be expedited if a copy of the
document requesting review by the Comptroller General is sent to the
General Services Administration to facilitate assembly of the pertinent
records.
04 CFR 53.4 PART 56 -- JOINT REGULATIONS FOR ADVANCE PAYMENT OF CHARGES
FOR TRANSPORTATION SERVICES FURNISHED THE UNITED STATES
Sec.
56.1 Prescription of standards.
56.2 Payment prior to Government confirmation of satisfactory
performance.
56.3 Bonding requirements.
Authority: Sec. 1(b), 86 Stat. 1163, 1164, as amended by sec. 201,
88 Stat. 1959 (49 U.S.C. 66(c)).
04 CFR 56.1 Prescription of standards.
The regulations in this part are issued jointly by the Comptroller
General of the United States and the Secretary of the Treasury under the
provisions of 49 U.S.C. 66(c) which authorizes payment of charges for
transportation services to carriers or forwarders in advance of the
completion of services without regard to 31 U.S.C. 3324: Provided, The
carrier or forwarder has issued the usual ticket, receipt, bill of
lading or equivalent document covering the service involved.
Regulations, prescribed by the head of an agency in implementation of
this part will be reviewed by the General Accounting Office as a part of
its audit of the agency's activities.
(41 FR 53769, Dec. 9, 1976, as amended at 48 FR 4647, Feb. 2, 1983)
04 CFR 56.2 Payment prior to Government confirmation of satisfactory
performance.
Where a carrier or forwarder has issued the usual ticket, receipt,
bill of lading or equivalent document, and subject to limitations
prescribed by the Administrator, General Services Administration, or his
designee, administrative procedures may provide for payment of bills for
charges for transportation services furnished for the account of the
United States prior to Government confirmation of the satisfactory
completion of such services except those bills presented by:
(a) An assignee bank or financial institution under the authority of
31 U.S.C. 3727 and 41 U.S.C. 15;
(b) Payees who are in bankruptcy proceedings or are subject to the
control of a receiver, trustee, or other similar representative;
(c) Payees who consistently fail to refund overcharges without
assertion of substantial defenses or other valid reasons when notified
by the General Services Administration or any other interested
Government agency;
(d) Payees who without good cause fail to make timely disposition or
settlement of loss or damage or other claims asserted by agencies of the
United States;
(e) Payees owing substantial sums of money to the United States
concerning which no adequate arrangements for settlement have been made;
(f) Payees in such bad financial condition as to justify a
determination that the Government's best interests require consideration
of special payment rules for their account;
(g) Payees who do business with the United States infrequently and
who previously have not been administratively approved for payment upon
presentation of bills;
(h) Any other person or business organization determined
administratively for valid reasons to be ineligible for payment unless
after review of the facts and in the absence of objection by the U.S.
General Accounting Office it is determined administratively that the
best interests of the United States will not be jeopardized by such
payment.
(41 FR 53769, Dec. 9, 1976, as amended at 48 FR 4647, Feb. 2, 1983)
04 CFR 56.3 Bonding requirements.
Whenever the head of an agency of the United States or his designee
determines in any particular case that a bond (or other form of
guarantee or assurance) of an acceptable surety is essential for the
account of any particular carrier or forwarder in order to protect the
interests of the United States where payments are to be made prior to
Government confirmation of the satisfactory completion of transportation
services a bond may be required and held by the agency making such
requirement. The bond shall be for such amount as in the discretion of
the responsible Government officers is necessary for the protection of
the Government's best interests but shall not exceed $10,000 unless the
head of the agency or his designee certifies that a bond for a higher
amount is justified in the circumstances.
(41 FR 53769, Dec. 9, 1976)
04 CFR 56.3 SUBCHAPTER E -- STANDARDIZED FISCAL PROCEDURES
04 CFR 56.3 PART 75 -- CERTIFICATES AND APPROVALS OF BASIC VOUCHERS AND
INVOICES
Authority: 31 U.S.C. 711 and 3511.
04 CFR 75.1 Contractors' and vendors' certificates.
(a) The General Accounting Office no longer requires that a
certificate as to correctness and nonpayment be executed on the bills
and invoices of contractors and vendors, with the exception that
carriers, or other corporations, agencies, or persons furnishing
transportation and accessorial services to the Government must continue
to execute the certificates as provided in chapter 101 of 41 CFR part
41. Pending the eventual elimination of the contractors' and vendors'
certificates from all other standard voucher forms, the certificates on
such other forms need no longer be executed. However, the elimination
of this requirement does not dispense with the necessity for the
specific certification of facts required by certain contracts.
(b) The omission of the certificate from bills or invoices submitted
for payment to Government agencies does not in any manner lessen the
responsibility of contractors and vendors in complying with all
statutory requirements applicable to transactions with the Government,
nor will it be construed as mitigating their liability for asserting
false, fictitious, or fraudulent claims against the United States,
penalties for which are set forth in 18 U.S.C. 287.
(22 FR 10906, Dec. 28, 1957, as amended at 47 FR 50843, Nov. 10,
1982; 47 FR 56980, Dec. 22, 1982)
04 CFR 75.1 SUBCHAPTER F -- RECORDS
04 CFR 75.1 PART 81 -- PUBLIC AVAILABILITY OF GENERAL ACCOUNTING OFFICE
RECORDS
Sec.
81.1 Purpose and scope of part.
81.2 Administration.
81.3 Definitions.
81.4 Requests for identifiable records.
81.5 Records originating outside GAO, or records involving work in
progress.
81.6 Records which may be exempt from disclosure.
81.7 Fees and charges.
81.8 Public reading facility.
Authority: 31 U.S.C. 711.
Source: 49 FR 38527, Oct. 1, 1984, unless otherwise noted.
04 CFR 81.1 Purpose and scope of part.
This part implements the policy of the U.S. General Accounting Office
(GAO) with respect to the public availability of GAO records. While GAO
is not subject to the Freedom of Information Act (5 U.S.C. 552), GAO's
disclosure policy follows the spirit of the act consistent with its
duties and functions and responsibility to the Congress. Application of
this act to GAO is not to be inferred from the provisions of these
regulations.
04 CFR 81.2 Administration.
The administration of this part is the duty and responsibility of the
Director, Office of Policy (OP), U.S. General Accounting Office, 441 G
Street, NW., Washington, D.C. 20548, and to that end the Director shall
promulgate such supplemental rules or regulations as may be necessary.
04 CFR 81.3 Definitions.
As used in this part:
(a) Identifiable means a reasonably specific description of a
particular record sought, such as the date of the record, subject
matter, agency or person involved, etc., which will permit location or
retrieval of the record.
(b) Records includes all books, papers, manuals, maps, photographs,
reports, and other documentary materials, regardless of physical form or
characteristics under the control of GAO in pursuance of law or in
connection with the transaction of public business. In the context of a
request for a record or records, the term ''records'' refers only to a
record in being and under the control of GAO. It does not include the
compiling or procuring of a record. Nor does it include library or
museum material made or acquired and preserved solely for reference or
exhibition purposes, or extra copies of documents preserved only for
convenience of reference. It is intended that GAO publications are not
within the purview of this order. GAO published reports and decisions
or listing of reports should be obtained from the U.S. General
Accounting Office, Information Handling and Support Facility (IHSF),
P.O. Box 6015, Gaithersburg, Md. 20877, phone (202) 275-6241.
(c) Records available to the public means records which may be
examined or copied or of which copies may be obtained, in accordance
with this part, by the public or representatives of the press regardless
of interest and without specific justification.
(d) Disclose or disclosure means making available for examination or
copying, or furnishing a copy.
(e) Person includes an individual, partnership, corporation,
association, or public or private organization other than a Federal
agency.
04 CFR 81.4 Requests for identifiable records.
(a) A request to inspect or obtain a copy of an identifiable record
of GAO must be submitted in writing to the Director, OP (see 81.2), who
will promptly acknowledge and record the request.
(b) The Director, OP, or other GAO organizational unit will promptly
honor the request if no valid objection exists to the propriety of such
action and the requester is willing and able to pay the prescribed fees
for making the record available for inspection or copying or being
provided with a copy.
(c) In the event of an objection or doubt as to the propriety of
providing the requester with a copy of the record sought, every effort
will be made to resolve such problems as quickly as possible, including
consultation with appropriate GAO elements. If it is determined that
the record should be withheld, the Director, OP, shall inform the
requester in writing that the request has been denied; shall identify
the material withheld; and shall explain the basis for the denial.
(d) A person whose request is denied shall be informed that further
consideration of his/her request may be obtained by a letter to the
Comptroller General of the United States setting forth the basis for the
belief that the denial of the request was unwarranted.
04 CFR 81.5 Records originating outside GAO, or records involving work
in progress.
(a) It is the policy of GAO not to provide records from its files
that originate in another agency or nonfederal organization to persons
who may not be entitled to obtain the records from the originator. In
such instances, requesters will be referred to the person or
organization that originated the records.
(b) In order to avoid disruption of work in progress, and in the
interests of fairness to those who might be adversely affected by the
release of information which has not been fully reviewed to assure its
accuracy and completeness, it is the policy of GAO not to provide
records which are part of ongoing reviews or other current projects. In
response to such requests, GAO will inform the requester of the
estimated completion date of the review or project so that the requester
may then ask for the records. At that time, the records may be released
unless exempt from disclosure under 81.6.
04 CFR 81.6 Records which may be exempt from disclosure.
The public disclosure of GAO records contemplated by this part does
not apply to records, or parts thereof, within any of the categories
listed below. Unless precluded by law, the Director, OP, may
nevertheless release records within these categories.
(a) Congressional correspondence and other papers relating to work
performed in response to a congressional request (unless authorized by
the congressional requester), and congressional contact memoranda.
(b) Records specifically required by an Executive Order to be kept
secret in the interest of national defense or foreign policy. An
example of this category is a record classified under Executive Order
12356, National Security Information.
(c) Records related solely to the internal personnel rules and
practices of an agency. This category includes, in addition to internal
matters of personnel administration, internal rules and practices which
cannot be disclosed without prejudice to the effective performance of an
agency function. Examples within the purview of this exemption are
guidelines, and procedures for auditors, investigators, or examiners.
(d) Records specifically exempted from disclosure by statute provided
that such statute (1) requires that the matters be withheld from the
public in such a manner as to leave no discretion on the issue, or (2)
establishes particular criteria for withholding or refers to particular
types of matters to be withheld.
(e) Records containing trade secrets and commercial or financial
information obtained from a person and privileged or confidential. This
exemption may include, but is not limited to, business sales statistics,
inventories, customer lists, scientific or manufacturing processes or
development information.
(f) Personnel and medical files and similar files the disclosure of
which could constitute a clearly unwarranted invasion of personal
privacy. This exemption excludes from disclosure all personnel and
medical files, and all private or personal information contained in
other files, which, if disclosed to the public, would amount to a
clearly unwarranted invasion of the privacy of any person. An example
of such other files within the exemption would be files compiled to
evaluate candidates for security clearance.
(g) Records and information compiled for law enforcement purposes.
(h) Records having information contained in or related to
examination, operation, or condition reports prepared by, on behalf of,
or for the use of an agency responsible for the regulation or
supervision of financial institutions.
(i) Records containing geological and geophysical information and
data (including maps) concerning wells.
(j) Inter-agency or intra-agency memoranda, letters or other
materials that are part of the deliberative process. For example, this
exemption includes internal communications such as GAO or other agency
draft reports, and those portions of internal drafts, memoranda and
workpapers containing opinions, recommendations, advice or evaluative
remarks of GAO employees. This exemption seeks to avoid the inhibiting
of internal communications, and the premature disclosure of documents
which would be detrimental to an agency function.
(k) Records in addition to those described in paragraph (j) of this
section containing information customarily subject to protection as
privileged in a court or other proceedings, such as information
protected by the doctor-patient, attorney-work product, or lawyer-client
privilege.
(l) Unsolicited records containing information submitted by any
person to GAO in confidence and records which GAO has obligated itself
not to disclose. An example of records covered by this exemption would
be information obtained by the GAO Fraud Referral and Investigations
Group (GAO Hotline).
(49 FR 38527, Oct. 1, 1984, as amended at 53 FR 50913, Dec. 19, 1988)
04 CFR 81.7 Fees and charges.
(a) No fee or charge will be made for:
(1) Records provided under provisions of this part when the direct
search and reproduction costs are less than $25.
(2) Records requested which are not found or which are determined to
be exempt under provisions of this part.
(3) Staff-hours spent in resolving any legal or policy questions
pertaining to the request.
(4) Copies of records including those certified as true copies, that
are furnished for official use to any officer or employee of the federal
government.
(5) When necessary or desirable to the performance of a function of
GAO, copies of pertinent records furnished to a party having a direct
and immediate interest in a matter pending before the Office.
(b) When costs are $25 or more, the fees and charges described below,
will be assessed for the direct costs of search and reproduction of
records available to the public under this part.
(1) The reproduction charge per page shall be 20 cents.
(2) Certification of authenticity shall be $10 for each certificate.
(3) Search for records by office personnel.
(i) Clerical personnel -- $10 an hour.
(ii) Professional personnel -- $20 an hour.
(4) Other direct costs related to the request may be charged for such
items as computer searches.
(c) GAO shall notify the requester and may require an advance deposit
where the anticipated fees will exceed $50.
(d) Fees and charges shall be paid by check or money order payable to
the U.S. General Accounting Office.
(e) Fees established by this section may be waived or reduced upon a
determination by the Director, OP, that disclosure of the information is
in the public interest because it is likely to contribute significantly
to public understanding of the operations or activities of the
government and is not primarily in the commerical interest of the
requester. Persons seeking such waiver or reduction of fees may be
required to submit a statement setting forth the intended purpose for
which the records are requested or otherwise indicate how disclosure
will primarily benefit the public and, in appropriate cases, explain why
the volume of records requested is necessary. Determinations pursuant
to this paragraph are solely within the discretion of GAO.
(49 FR 38527, Oct. 1, 1984, as amended at 53 FR 50913, Dec. 19, 1988)
04 CFR 81.8 Public reading facility.
A public reading facility shall be maintained by the General
Accounting Office at 441 G Street NW., Washington, DC. The facility,
under the control of the Office of the General Counsel, shall be open to
the public from 8:30 a.m. to 5:00 p.m. except Saturdays, Sundays, and
holidays.
(53 FR 50913, Dec. 19, 1988)
04 CFR 81.8 PART 82 -- FURNISHING RECORDS OF THE GENERAL ACCOUNTING
OFFICE IN JUDICIAL PROCEEDINGS
Sec.
82.1 Court subpoenas or requests.
82.2 Fees and charges.
Authority: 31 U.S.C. 711, 713, 714, 718, 3523, 2524, 2526, and 3529.
04 CFR 82.1 Court subpoenas or requests.
(a) A subpoena or request from a court for records of the General
Accounting Office should be directed to the Comptroller General of the
United States and served upon the Records Management and Services
Officer, Office of Information Systems and Services.
(b) In honoring a court subpoena or request original records may be
presented for examination but must not be presented as evidence or
otherwise used in any manner by reason of which they may lose their
identity as official records of the General Accounting Office. They
must not be marked or altered, or their value as evidence impaired,
destroyed, or otherwise affected. In lieu of the original records,
certified copies will be presented for evidentiary purposes since they
are admitted in evidence equally with the originals (31 U.S.C. 704).
(33 FR 358, Jan. 10, 1968, as amended at 45 FR 84955, Dec. 24, 1980;
47 FR 56980, Dec. 22, 1982)
04 CFR 82.2 Fees and charges.
The provisions of 81.7 of this chapter are applicable to this part;
however, where the charging of fees is appropriate, they need not be
collected in advance.
(33 FR 358, Jan. 10, 1968, as amended at 47 FR 56980, Dec. 22, 1982)
04 CFR 82.2 PART 83 -- PRIVACY PROCEDURES FOR PERSONNEL RECORDS
Sec.
83.1 Purpose and scope of part.
83.2 Administration.
83.3 Definitions.
83.4 Conditions of disclosure.
83.5 Specific disclosure of information.
83.6 Accounting of certain disclosures.
83.7 GAO policy and requirements.
83.8 Standards of conduct.
83.9 Social Security number.
83.10 First Amendment rights.
83.11 Official Personnel Folder.
83.12 Procedures for individual access to records.
83.13 Inquiries.
83.14 Denial of access requests.
83.15 Request for amendment of record.
83.16 Administrative review of request for amendment of record.
83.17 Fees.
83.18 Rights of legal guardians.
83.19 Government contractors.
83.20 Mailing lists.
83.21 Exemptions.
Appendix I to part 83 -- Memorandum of Understanding
Authority: 31 U.S.C. 711(1); Memorandum of Understanding between
the U.S. Office of Personnel Management, the National Archives and
Records Service of the General Services Administration and the U.S.
General Accounting Office; 4 CFR part 81; 5 CFR parts 294-297; and 31
U.S.C. 731, et seq.
Source: 50 FR 13162, Apr. 3, 1985, unless otherwise noted.
04 CFR 83.1 Purpose and scope of part.
This part describes the policy and prescribes the procedures of the
U.S. General Accounting Office (GAO) with respect to maintaining and
protecting the privacy of GAO personnel records. While GAO is not
subject to the Privacy Act (Act) (5 U.S.C. 552a), GAO's policy is to
conduct its activities in a manner that is consistent with the spirit of
the Act and its duties, functions, and responsibilities to the Congress.
Application of the Privacy Act to GAO is not to be inferred from the
provisions of these regulations. These regulations are designed to
safeguard individuals against invasions of personal privacy by requiring
GAO, except as otherwise provided by law, to --
(a) Protect privacy interests of individuals by imposing requirements
of accuracy, relevance, and confidentiality for the maintenance and
disclosure of personnel records;
(b) Inform individuals of the existence of systems of personnel
records maintained by GAO containing personal information; and
(c) Inform individuals of the right to see and challenge the contents
of personnel records containing information about them.
This part applies to all systems of personnel records (as defined in
83.3(g)) for which GAO is responsible.
04 CFR 83.2 Administration.
The administration of this part is the duty and responsibility of the
Director, Personnel, U.S. General Accounting Office, 441 G Street NW.,
Washington, D.C. 20548. To this end, the Director, Personnel, in
consultation with the Office of the General Counsel, is authorized to
issue such supplemental regulations or procedural directives as may be
necessary and appropriate.
(a) The Director, Personnel, shall have general responsibility and
authority for implementing this part, including --
(1) Approving all systems of personnel records to be maintained by
GAO (whether physically located in GAO's Office of Personnel or
elsewhere), including the contents and uses of such systems, accounting
methods, and security methods; and
(2) Responding to an individual's request to gain access to or amend
his or her own personnel records.
(b) The Director, Personnel, may delegate within GAO any of his
functions under this part.
04 CFR 83.3 Definitions.
As used in this part:
(a) Individual means a citizen of the United States or an alien
lawfully admitted for permanent residence;
(b) Information means papers, records, photographs, magnetic storage
media, micro storage media, and other documentary materials, regardless
of physical form or characteristics, containing data about an individual
and required by GAO in pursuance of law or in connection with the
discharge of official business, as defined by statute, regulation, or
administrative procedure;
(c) Maintain includes to collect, to use, or to disseminate;
(d) Personnel record means any record concerning an individual which
is maintained pursuant to GAO's personnel management process or
personnel policy setting process;
(e) Record means any item, collection, or grouping of information
about an individual that is maintained by GAO, including, but not
limited to, education, financial transactions, medical history, criminal
history, or employment history, that contains the name or other
identifying particular assigned to the individual, such as a
fingerprint, voice print, or a photograph;
(f) Routine use means the disclosure of a record for a purpose which
is compatible with the purpose for which it was collected;
(g) System of personnel records means a group of personnel records
under the control of GAO from which information is retrieved by the name
of the individual or by some identifying number, symbol, or other
indentifying particular assigned to the individual; and,
(h) System manager means the Director of Personnel, his designee, or
other GAO official designated by the Comptroller General, who has the
authority to decide matters relative to systems of personnel records
maintained by GAO.
04 CFR 83.4 Conditions of disclosure.
GAO shall not disclose any record that is contained in a system of
personnel records by an means of communication to any person or
organization, including another agency, without the prior written
consent of the individual to whom the record pertains, unless disclosure
of the record would be:
(a) To those officers and employees of GAO who have a need for the
record in the performance of their duties; or
(b) Required under regulations implementing the public availability
of GAO records published at part 81 of this chapter, or authorized under
83.5; or
(c) For a routine use as defined in 83.3(f); or
(d) To a recipient who has provided GAO with advance adequate written
assurance that the record will be used solely as a statistical research
or reporting record, and the record is to be transferred in a form that
is not individually identifiable; or
(e) To another agency or an instrumentality of any governmental
jurisdiction within or under the control of the United States for a
civil or criminal law enforcement activity if the activity is authorized
by law, if the head of the agency or instrumentality has made a written
request to GAO specifying the particular record desired and the law
enforcement activity for which the record is sought; or
(f) To any person pursuant to a showing of compelling circumstances
affecting the health or safety of an individual (not necessarily the
data subject) if upon such disclosure notification is transmitted to the
last known address of the subject of the personnel record; or
(g) To either House of Congress, or, to the extent of matter within
its jurisdiction, any committee or subcommittee of Congress; or
(h) Pursuant to the order of a court of competent jurisdiction or in
connection with any judicial or quasi-judicial proceedings; or
(i) To the Bureau of the Census for purposes of planning or carrying
out a census or survey or related activity pursuant to the provisions of
Title 13, United States Code; or
(j) To the National Archives of the United States as a record which
has sufficient historical or other value to warrant its continued
preservation by the U.S. Government, or for evaluation by the
Administrator of General Services or his designee to determine whether
the record has such value; or
(k) To a consumer reporting agency in accordance with 31 U.S.C.
3711(f).
04 CFR 83.5 Specific disclosure of information.
(a) This section governs responses to a member of the public,
prospective employers, and law enforcement officials, for access to
information covered by this part. It does not limit in any way other
disclosures of information pursuant to other provisions of this part.
(b) The following information about most present and former GAO
employees is available to the public:
(1) Name;
(2) Present and past position titles;
(3) Present and past grades;
(4) Present and past salaries; and
(5) Present and past duty stations (which include room numbers, shop
designations, or other identifying information regarding buildings or
places of employment.
(c) Disclosure of the above information will not be made where the
information requested is a list of present or past position titles,
grades, salaries, and/or duty stations of Government employees which, as
determined by the Director, Personnel, is:
(1) Selected in such a way as to constitute a clearly unwarranted
invasion of personal privacy because the nature of the request calls for
a response that would reveal more about the employees on whom
information is sought than the five enumerated items; or
(2) Would otherwise be protected from mandatory disclosure under an
exemption of part 81 of this title concerning the public availability of
GAO records.
(d) In addition to the information that may be made available under
paragraph (a) of this section, GAO may make available the following
information to a prospective employer of a GAO employee or former GAO
employee:
(1) Tenure of employment;
(2) Civil service status;
(3) Length of service in GAO and the Government; and
(4) When separated, the date and reason for separation shown on the
required standard form.
(e) In addition to the information to be made available under
paragraph (a) of this section, the home address of an employee shall be
made available to a police or court official on receipt of a proper
request stating that an indictment has been returned against the
employee or that complaint, information, accusation, or other writ
involving nonsupport or a criminal offense has been filed against the
employee and the employee's address is needed for service of a summons,
warrant, subpoena, or other legal process.
(f) Except as provided in paragraphs (a) through (e) of this section,
and except as provided in this part, information required to be included
in an Official Personnel Folder is not available to the public and is
protected from disclosure by 81.6(f) of this chapter.
(g) Personnel Appeal Files. (Those records maintained by the General
Accounting Office Personnel Appeals Board of petitions or appeals filed
with the Board by GAO employees, former employees, or applicants for
employment. Such records do not include any of the investigative files
or reports of the Personnel Appeals Board General Counsel. See 4 CFR
28.18(c)). GAO, upon receipt of a request which identifies the
individual from whose file the information is sought, shall disclose the
following information from a Personnel Appeal File to a member of the
public, except when the disclosure would constitute a clearly
unwarranted invasion of personal privacy:
(1) Confirmation of the name of the individual from whose file the
information is sought and the names of the other parties concerned;
(2) The status of the case;
(3) The decision on the case;
(4) The nature of the action appealed; and
(5) With the consent of the parties concerned, other reasonably
identified information from the file.
(h) Leave records. The annual and sick leave record of an employee,
or information from these records, is not to be made available to the
public by GAO or other Government agency.
(i) Examinations and related subjects. Information concerning the
results of examinations will be released only to the individual
concerned, and to those parties explicitly designated in writing by the
individual. The names of applicants for GAO positions or eligibles on
GAO or civil service registers, certificates, employment lists, or other
lists of eligibles, or their ratings or relative standings are not
information available to the public.
(j) Investigations. (1) Upon written request, GAO will disclose to
the parties concerned any report of personnel investigation under its
control, or an extract of the report, to the extent the report is
involved in a processed before GAO. For the purpose of this paragraph,
the ''parties concerned'' means the Government employee involved in the
proceeding, his or her representative designated in writing, and the
representative of GAO involved in the proceeding. Where GAO obtains
reports of personnel investigations or information from such reports
from other government agencies on condition that it not release such
data, GAO will refer parties requesting such information to the
originating agency where their request will be processed.
(2) GAO will not make a report of investigation or information from a
report under its control available to the public or to witnesses, except
as otherwise required under GAO regulations implementing the public
availability of records published at part 81 of this chapter.
04 CFR 83.6 Accounting of certain disclosures.
(a) With respect to each system of personnel records, GAO shall,
except for disclosures made under 83.4(a) and 83.4(b), keep an
accurate accounting of --
(1) The date, nature, and purpose of disclosure of a record to any
person; and
(2) The name and address of the person, agency, or organization to
whom the disclosure is made.
(b) Such accounting shall be retained for at least 3 years or the
life of the record, whichever is longer, after the disclosure for which
the accounting is made.
(c) Except for disclosures made under 83.4(e), the accounting shall
be available upon written request to the individual named in the record.
04 CFR 83.7 GAO policy and requirements.
(a) GAO shall maintain in its personnel records only such information
about an individual as is relevant and necessary to accomplish an
authorized official purpose. Authority to maintain personnel records
does not constitute authority to maintain information in the record
merely because a need for it may develop in the future. Both
Government-wide and internal agency personnel records shall contain only
information concerning an individual that is relevant and necessary to
accomplish GAO's personnel management objectives as required by statute,
GAO internal directive, or formal agreements between GAO and other
Federal agencies.
(b) GAO shall make every reasonable effort to collect information
about an individual directly from that individual when the information
may result in adverse determinations about the individual's rights,
benefits, and privileges under Federal programs. Factors to be
considered in determining whether to collect the data from the
individual concerned or a third party are:
(1) The nature of the information is such that it can only be
obtained from another party;
(2) The cost of collecting the information directly from the
individual is unreasonable when compared with the cost of collecting it
from another party;
(3) There is virtually no risk that information collected from other
parties, if inaccurate, could result in a determination adverse to the
individual concerned;
(4) The information supplied by an individual must be verified by
another party; or
(5) Provisions are made, to the greatest extent practical, to verify
information collected from another party with the individual concerned.
(c) GAO shall inform each individual whom it asks to supply
information for a personnel record, on the form which it uses to collect
the information or on a separate form that can be retained by the
individual, of --
(1) The authority for the solicitation of the information and whether
disclosure of such information is mandatory or voluntary;
(2) The principal purpose or purposes for which the information is
intended to be used;
(3) The routine uses which may be made of the information, as
published pursuant to paragraph (d)(4) of this section; and
(4) The effects, if any, of not providing all or any part of the
requested information;
(d) Subject to the provisions of paragraph (i) of this section, GAO
shall publish in the Federal Register, upon establishment or revision, a
notice of the existence and character of its systems of personnel
records. Such notice shall include --
(1) The name and location(s) of each system of personnel records;
(2) The categories of individuals about whom records are maintained
in each such system;
(3) The categories of records maintained in each system of personnel
records;
(4) Each routine use of the records contained in each system of
personnel records, including the categories of users and the purpose(s)
of such use;
(5) The policies and practices of GAO regarding storage,
retrievability, access controls, retention, and disposal of the records;
(6) The title and business address of the GAO official who is
responsible for maintaining each system of personnel records;
(7) GAO procedures whereby an individual can ascertain whether a
system of personnel records contains a record pertaining to the
individual;
(8) Procedures whereby an individual can request access to any record
pertaining to him contained in any system of personnel records, and how
the individual may contest its content; and
(9) The categories of sources of records in each system of personnel
records.
(e) GAO shall maintain all records which it uses in making any
determination about any individual with such accuracy, relevancy,
timeliness, and completeness as is reasonably necessary to assure
fairness to the individual in the determination;
(f) GAO shall, prior to disseminating any record about an individual
to any person other than a Federal agency, make all reasonable efforts
to reassure that such records are accurate, complete, timely, and
relevant for GAO's purposes;
(g) GAO shall make reasonable efforts to serve notice on an
individual or his authorized representative when any personnel record on
such individual is being made available to any person under compulsory
legal process as soon as practicable after service of the subpoena or
other legal process;
(h) GAO shall establish rules of conduct for persons involved in the
design, development, operation, or maintenance of any system of
personnel records or files or in maintaining any record, and to instruct
each person with respect to such rules and requirements of this part,
including any other rules and procedures adopted pursuant to this part;
(i)(1) GAO shall establish and maintain appropriate administrative,
technical and physical safeguards to ensure the security and
confidentiality of personnel records. At a minimum, these controls
shall require that all persons whose official duties require access to
and use of personnel records be responsible and accountable for
safeguarding those records and for ensuring that the records are secured
whenever they are not in use or under the direct control of authorized
persons. Generally, personnel records should be held, processed, or
stored only where facilities and conditions are adequate to prevent
unauthorized access;
(2) Except for access by the data subject, only employees whose
official duties require and authorize access shall be allowed to handle
and use personnel records, in whatever form or media the records might
appear. To the extent feasible, entry into personnel record storage
areas shall be similarly limited. Documentation of the removal of
records from storage areas must be kept so that adequate control
procedures can be established to assure that removed records are
returned intact on a timely basis and properly controlled during such
period of removal.
(3) In addition to following the above security requirements,
managers of automated personnel records shall establish and maintain
administrative, technical, physical, and security safeguards for data
about individuals in automated records, including input and output
documents, reports, punched cards, magnetic tapes, disks, and on-line
computer storage. As a minimum, the safeguards must be sufficient to:
(i) Prevent careless, accidental, or unintentional disclosure,
modification, or destruction of identifiable personal data;
(ii) Minimize the risk of improper access, modification, or
destruction of identifiable personnel data;
(iii) Prevent casual entry by persons who have no official reason for
access to such data;
(iv) Minimize the risk of unauthorized disclosure where use is made
of identifiable personal data in testing of computer programs;
(v) Control the flow of data into, through, and from computer
operations;
(vi) Adequately protect identifiable data from environmental hazards
and unnecessary exposure; and
(vii) Assure adequate internal audit procedures to comply with these
procedures.
(4) The disposal of identifiable personal data in automated files is
to be accomplished in such a manner as to make the data unobtainable to
unauthorized personnel. Unneeded personal data stored on reusable
media, such as magnetic tapes and disks, must be erased prior to release
of the media for reuse.
(j) At least 30 days prior to publication of information under
paragraph (d)(4) of this section, GAO shall publish in the Federal
Register notice of any new use or intended use of the information in the
system, and provide an opportunity for interested persons to submit
written data, views, or arguments to GAO.
04 CFR 83.8 Standards of conduct.
(a) GAO employees whose official duties involve the maintenance and
handling of personnel records shall not disclose information from any
personnel record unless disclosure is part of their official duties or
required by statute, regulation, or internal procedure.
(b) Any GAO employee who makes an unauthorized disclosure of
personnel records or a disclosure of information derived from such
records, knowing that such disclosure is unauthorized, or otherwise
knowingly violates these regulations, shall be subject to appropriate
disciplinary action. GAO employees are prohibited from using personnel
information not available to the public, obtained through official
duties, for commercial solicitation or sale, or for personal gain. Any
employee who knowingly violates this prohibition shall be subject to
appropriate disciplinary action.
04 CFR 83.9 Social Security number.
(a) GAO may not require individuals to disclose their Social Security
Number (SSN) unless disclosure would be required --
(1) Under Federal statute; or
(2) Under any statute, executive order, or regulation that authorizes
any Federal, State, or local agency maintaining a system of records that
was in existence and operating prior to January 1, 1975, to request the
SSN as a necessary means of verifying the identity of an individual.
(b) Individuals asked to voluntarily provide their SSN shall suffer
no penalty or denial of benefits for refusing to provide it.
(c) When GAO requests an individual to disclose his or her SSN, it
shall inform that individual whether that disclosure is mandatory or
voluntary, by what statutory or other authority such number is
solicited, and what uses will be made of it.
04 CFR 83.10 First Amendment rights.
Personnel records or entries thereon describing how individuals
exercise rights guaranteed by the First Amendment to the United States
Constitution are prohibited, unless expressly authorized by statute or
by the individual concerned, or unless pertinent to and within the scope
of an authorized law enforcement activity. These rights include, but
are not limited to, free exercise of religious and political beliefs,
freedom of speech and the press, and freedom to assemble and to petition
the Government.
04 CFR 83.11 Official Personnel Folder.
(a) GAO shall establish and maintain an Official Personnel Folder for
each of its employees, except as provided in the GAO/U.S. OPM/GSA
Memorandum of Understanding (see subsection (b)). Except as provided
for in Federal Personnel Manual (FPM) Supplement 293-31 there will be
only one Official Personnel Folder maintained for each employee.
(b) GAO/U.S. OPM/GSA Memorandum of Understanding. The Memorandum of
Understanding agreed to by the U.S. General Accounting Office, the U.S.
Office of Personnel Management (U.S. OPM), and the National Archives and
Records Service of the General Services Administration (GSA), Appendix
I, constitutes the official and sole agreement concerning the continuity
and coordination of the Official Personnel Folder.
(c) GAO policy is to assure continuity and coordination of the
Official Personnel Folder when a person, for whom an Official Personnel
Folder has been established, separates from GAO, or transfers to or from
GAO from or to a Federal agency subject to regulations of the U.S. OPM
relating to Official Personnel Folders. GAO will maximize the pooling
of information between itself and those Federal agencies subject to U.S.
OPM rules and regulations concerning the Official Personnel Folder so
that a GAO employee may transfer to and from other Federal agencies with
one complete and informative Official Personnel Folder.
(d) Ownership of Official Personnel Folder. (1) The Official
Personnel Folders of individuals whose employment with GAO terminated
prior to October 1, 1980, are the records of U.S. OPM and are under the
jurisdiction and control of U.S. OPM.
(2) The Official Personnel Folders of current GAO employees whose GAO
employment began on or after October 1, 1980, and who have had no
previous employment by an executive branch agency of the Federal
government shall be under the jurisdiction and control of, and are the
records of GAO. GAO shall retain jurisdiction over such records even
when they are transferred to an executive branch agency.
(3) The Official Personnel Folders of current GAO employees who were
employed prior to October 1, 1980, by either GAO or an executive branch
agency shall be under the control of GAO, but those records established
prior to October 1, 1980, by GAO, and all records established as a
result of employment by an executive branch agency shall remain under
the jurisdiction of, and be part of the records of, U.S. OPM.
(4) GAO will maintain those Official Personnel Folders containing
records of employment by an executive branch Federal agency, or by GAO
prior to October 1, 1980, in compliance with regulations of the U.S.
OPM in accordance with the procedures contained in the Memorandum of
Understanding and the provisions of regulations of U.S. OPM contained in
5 CFR parts 293, 294, and 297, as well as the provisions of FPM Chapters
293, 294, and 297.
(e) Maintenance and content of Folder. GAO shall maintain in the
Official Personnel Folder the reports of selection and other personnel
actions named in section 2951 of title 5, United States Code. The
Folder shall also contain permanent records affecting the employee's
status and service as required by U.S. OPM instructions and as
designated in FPM Supplement 293-31.
(f) Use of existing Folders upon transfer or reemployment. In
accordance with paragraph (a) of this section, GAO shall request the
transfer of the Official Personnel Folder for a person who was
previously employed with a Federal agency that maintains such a Folder.
The Folder so obtained shall be used in lieu of establishing a new
Official Personnel Folder.
(1) When a person for whom an Official Personnel Folder has been
established transfers from GAO to another Federal agency that maintains
the Folder, GAO shall, on request, transfer the Folder to the new
employing agency.
(2) Before transferring the Official Personnel Folder, GAO shall --
(i) Remove those records of a temporary nature filed on the left side
of the Folder; and
(ii) Ensure that all permanent documents of the Folder are complete,
correct, and present in the Folder in accordance with FPM Supplement
293-31.
(g) Disposition of Folders of former Federal employees. (1) Folders
containing the personnel records of individuals separated from
employment with GAO will be retained by GAO for 30 days after
separation, and may be retained for an additional 60 days. Thereafter,
the Folder shall be transferred to the same location and in the same
manner as Official Personnel Folders of persons separated from Federal
agencies which are subject to U.S. OPM regulations in accordance with
the Memorandum of Understanding.
(2) GAO shall remove temporary records from the Folder before it is
transferred in accordance with guidelines applicable to Federal agencies
which are subject to U.S. OMP regulations.
(3) If a former GAO employee is reappointed in the Federal service,
the employee's Folder shall, upon request, be transferred to the new
employing agency.
(h) Access requests and amendments to the Official Personnel Folder.
Requests for access to, disclosure from, correction of, or amendments to
documents contained in the Official Personnel Folder will be made in
accordance with the Memorandum of Understanding.
04 CFR 83.12 Procedures for individual access to records.
(a) Upon written request by any individual outside of GAO or upon
written or oral request by any officer or employee of GAO to gain access
to his or her record or to any information pertaining to the individual
which is contained in a system of personnel records, and not otherwise
exempted, GAO shall permit the individual and upon the individual's
request a person of his or her own choosing to accompany him or her, to
review the record and have a copy made of all or any portion thereof in
a form comprehensible to him or her, except that GAO may require the
individual to furnish a written statement authorizing discussion of that
individual's record in the accompanying person's presence. When access
to the records has been granted by a system manager or designee:
(1) Inspection in person may be made in the office designated in the
system notice during the hours specified by GAO.
(2) Upon the determination of the designated GAO official, records
may be transferred to a GAO office more convenient to the data subject
to review.
(3) Generally, GAO will not furnish certified copies of records.
Where certified copies of records are to be furnished, they may be
mailed at the request of the data subject or, as determined by GAO, only
after payment of any fee levied in accordance with 83.17 is received.
(4) In no event shall original records be made available for review
by the individual except in the presence of a system manager or
designee.
(b) The general identifying information items that the designated GAO
official may ask to be furnished before a specific inquiry is granted
include:
(1) Full name, signature, and home address;
(2) Picture identification card;
(3) The current or last place and dates of Federal employment, if
appropriate; and
(4) Social security number (for those systems of records retrieved by
this identifier).
(c) A request or inquiry from someone other than the individual to
whom the information pertains shall contain such documents or copies of
documents that establish the relationship or authorize access as
follows:
(1) When the requester is the parent or legal guardian of a data
subject who is a minor, the requester shall identify the relationship
with the data subject and furnish a certified or authenticated (e.g.
notarized) copy of any document establishing parentage or appointment as
legal guardian.
(2) Where the requester is the legal guardian of a data subject who
has been declared incompetent by the courts, the requester shall
identify the relationship with the data subject and furnish a certified
or authenticated copy of the court's appointment of guardianship.
(3) Where the requester is a representative of the data subject, the
requester shall identify the relationship with the data subject or the
data subject's parent or legal guardian, and furnish documentation
designating the representative as having the authority to act on behalf
of the data subject.
(d) When the requester appears in person and cannot be identified by
sight and signature, proof of identity is required as follows:
(1) When a request is from the data subject, the means of proof, in
order of preference, are:
(i) A document bearing the individual's photograph and signature (for
example, driver's license, passport, or military or civilian
identification card); or
(ii) Two documents bearing the individual's signature (for example,
Medicare card, unemployment insurance book, employer identification
card, major credit card, professional, draft, or union membership card).
(2) When a request is made by the parent, legal guardian, or
authorized representative of the data subject, the means of identifying
the requester and his or her authority for acting on behalf of the data
subject shall be as prescribed in paragraph (c) of this section. In
addition, the requester shall establish the identity of the data subject
by requiring the identifying information in paragraph (b) of this
section.
(e) When a written inquiry or request is received from the data
subject, or from the data subject's parent, legal guardian, or
authorized representative, it should be signed and --
(1) For an inquiry, contain sufficient identifying information about
the data subject to permit searching of the record system(s) and to
permit response; and
(2) For an access request --
(i) From the data subject, contain sufficient information to locate
the record and establish that the requester and the data subject are the
same (e.g. matching signatures); or
(ii) From the data subject's parent, legal guardian, or authorized
representative, contain sufficient information to locate the record,
match identity with the data subject, and such documentation of
association or authorization as is prescribed in paragraphs (c) and (d)
of this section.
(f) The signed request from the data subject, or from the data
subject's parent, legal guardian, or authorized representative specified
in paragraph (c) of this section shall be sufficient proof of identity
of the requester, unless for good cause, the system manager or designee
determines that there is a need to require some notarized or certified
evidence of the identity of the requester.
04 CFR 83.13 Inquiries.
(a) General inquiries to request assistance in identifying which
system of records may contain a record about an individual may be made
in person or by mail to the Director, Personnel.
(b) An inquiry that requests GAO to determine if it has, in a given
system of personnel records, a record about the inquirer, should be
addressed to the official identified in the Federal Register notice for
that system. Inquirers should specify the name of the system of
personnel records, if known, as published in the Federal Register. Such
inquiries should contain the identifying data prescribed in 83.12
before a search can be made of that particular system of records.
04 CFR 83.14 Denial of access requests.
(a) If an access request is denied, the official denying the request
shall give the requester the following information:
(1) The official's name, position title, and business mailing
address;
(2) The date of the denial;
(3) The reasons for the denial, including citation of appropriate
sections of this or any other applicable part; and
(4) The individual's opportunities for further administrative
consideration, including the name, position title, and address of the
GAO official (see paragraph (c) of this section) responsible for such
further review.
(b) Denial of a request for access to records will be made only by
the official GAO designee and only upon a determination that:
(1) The record is subject to an exemption under 83.21 when the
system manager has elected to invoke the exemption; or
(2) The record is information compiled in reasonable anticipation of
a civil action or proceeding; or
(3) The data subject or authorized representative of the data subject
refuses to abide by procedures for gaining access to records.
(c) A request for administrative review of a denial shall be made to
the Assistant Comptroller General for Human Resources, U.S. General
Accounting Office, 441 G Street, NW, Washington, D.C. 20548. The
Assistant Comptroller General shall acknowledge receipt of a request for
administrative review of a denial of access within 10 working days after
receipt of the request. If it is not possible to reach a decision
within an additional 10 working days, the requester shall be informed of
the approximate date (within 30 working days) when such a decision may
be expected.
(d) In reaching a decision, the Assistant Comptroller General will
review the criteria prescribed in this section which were cited as the
basis for denying access, and may seek additional information as deemed
necessary.
04 CFR 83.15 Request for amendment of record.
(a) Individuals may request the amendment of their records in writing
or in person by contacting the system manager or designee indicated in
the notice of systems of records published by GAO in the Federal
Register. Time limits will be measured from receipt at the proper
office.
(b) A request for amendment should include the following:
(1) The precise identification of the records sought to be amended,
deleted, or added.
(2) A statement of the reasons for the request, with all available
documents and material that substantiate the request.
(c) GAO shall permit an individual to request amendment of a record
pertaining to the individual. Not later than 10 working days after the
date of receipt of such request, the designated GAO official shall
acknowledge in writing such request and, promptly, either --
(1) Make any correction of any portion thereof which the individual
believes is not accurate, relevant, timely, or complete; or
(2) Inform the individual of the refusal to amend the record in
accordance with his or her request, the reason for the refusal, and the
name and business address of the GAO official responsible for the
refusal.
(3) The GAO offical shall permit an individual who disagrees with the
refusal by the designated GAO official to amend his or her record to
request review of such refusal. A request for administrative review of
a denial shall be made in accordance with 83.16.
(4) In any disclosure containing information about which the
individual has filed a statement of disagreement, occurring after the
filing of the statement under 83.16(d), GAO shall clearly note any
portion of the record which is disputed and provide copies of a concise
statement of the reasons for not making the amendments requested, to
persons or other agencies to whom the disputed record has been
disclosed.
(5) Nothing in this section shall allow an individual access to any
information compiled in reasonable anticipation of a civil action or
proceeding.
(d) If necessary, the official authorized to rule on a request for
amendment may seek additional information pertinent to the request to
assure that a fair, equitable, and accurate decision is reached.
(e) The following criteria will be considered by the system manager
or designee in reviewing initial requests for amendment of records:
(1) The sufficiency of the evidence submitted by the data subject;
(2) The factual accuracy of the information submitted and the
information in the record;
(3) The relevancy, necessity, timeliness, and completeness of the
information in light of the purpose for which it was collected;
(4) The degree of possibility that denial of the request could result
in unfair determinations adverse to the data subject;
(5) The character of record sought to be amended;
(6) The propriety and feasibility of complying with specific means of
amendment requested by the data subject; and
(7) The possible involvement of the record in a judicial or
quasi-judicial process.
04 CFR 83.16 Administrative review of request for amendment of record.
(a) A request for administrative review of GAO's denial to amend a
record in GAO's system of personnel records shall be addressed to the
Assistant Comptroller General for Human Resources, U.S. General
Accounting Office, 441 G Street, NW, Washington, D.C. 20548. The
Assistant Comptroller General shall acknowledge receipt of a request for
administrative review of a denial of amendment within 10 working days.
(b) If a decision cannot be made within an additional 10-day period,
a letter will be sent within that time explaining the delay and
furnishing an expected date for the decision. A decision on the request
must be made within 30 working days after receipt of the request. Only
for good cause shown, and at the discretion of the Assistant Comptroller
General for Human Resources can this time limit be extended. Any
extension requires written notification to the requester explaining the
reason for the extension and furnishing a new expected date for the
decision. Generally, such extension shall be for no more than an
additional 30 working days.
(c) When a request for administrative review of an amendment denial
is submitted, the individual must provide a copy of the original request
for amendment, a copy of the initial denial, and a statement of the
specific reasons why the initial denial is believed to be in error.
(d) An individual requesting an amendment of a record has the burden
of supplying information in support of the propriety and necessity of
the amendment request. The decision on the request will then be
rendered based on a review of the data submitted. The GAO official is
not required to gather supporting evidence for the individual and will
have the right to verify the evidence which the individual submits.
(e) Amendment of a record will be denied upon a determination by the
system manager or designee that:
(1) The record is subject to an exemption from the provisions of this
part, allowing amendment of records;
(2) The information submitted by the data subject is not accurate,
relevant, or of sufficient probative value;
(3) The amendment would violate a statute or regulation;
(4) The individual refuses to provide information which is necessary
to process the request to amend the record; or
(5) The record for which amendment is requested is a record presented
in a judicial or quasi-judicial proceeding, or maintained in
anticipation of being used in a judicial or quasi-judicial proceeding,
when such record is or will become available to the individual under
that proceeding.
(f) If, after review, the Assistant Comptroller General for Human
Resources also refuses to amend the record in accordance with the
request, the individual will be permitted to file with the system
manager or designee of the system of records concerned a concise
statement setting forth the reasons for his or her disagreement. Any
such statement of disagreement will be treated in accordance with
paragraph (c)(4) of 83.15.
04 CFR 83.17 Fees.
(a) Generally, GAO's policy is to provide the first copy of any
record or portion thereof, furnished as a result of this part, at no
cost to the data subject or authorized representative. However, in
cases where GAO deems it appropriate (for example, where the record is
voluminous), the system manager or designee in his or her discretion may
charge a fee when the cost for copying the record (at a rate of 20 cents
per page) would be in excess of ten dollars ($10).
(b) There shall be no fees charged or collected from a data subject
for the following:
(1) Search for or retrieval of the data subject's records;
(2) Review of the records;
(3) Making a copy of a record when it is a necessary part of the
process of making the record available for review;
(4) Copying at the initiative of GAO without a request from the
individual;
(5) Transportation of the record; and
(6) Making a copy of an amended record to provide the individual with
evidence of the amendment.
(c) Certification of authenticity shall be $10 for each certificate,
which fee may be waived in the discretion of the system manager or
designee.
04 CFR 83.18 Rights of legal guardians.
For the purposes of this part, the parent of any minor, or the legal
guardian of any individual who has been declared to be incompetent due
to physical or mental incapacity or age by a court of competent
jurisdiction, may act on behalf of the individual.
04 CFR 83.19 Government contractors.
When GAO provides by a contract for the operation by or on behalf of
GAO of a system of personnel records to accomplish a function of GAO,
GAO shall, consistent with its authority, cause the requirements of this
part to be applied to such system. Any such contractor and any employee
of such contractor, if such contract is agreed to on or after the
effective date of this section, shall be considered, for the purposes of
this part, to be an employee of GAO. Contractor employees will be
required to observe the confidentiality requirements of this part.
Violations of this part by contractor employees may be a sufficient
ground for contract termination.
04 CFR 83.20 Mailing lists.
An individual's name and address may not be sold or rented by GAO
unless such action is specifically authorized by law. This provision
shall not be construed to require the withholding of names and addresses
otherwise permitted to be made public.
04 CFR 83.21 Exemptions.
(a) All personnel records are exempted from 83.6(c), 83.12, 83.13,
83.14, and 83.15, relating to making an accounting of disclosures
available to the data subject or his authorized representative and
access to and amendment of the records and other sections relating to
procedural requirements of the above-cited sections if the record is:
(1) Specifically authorized under criteria established by an
Executive order to be kept secret in the interest of national defense or
foreign policy and is in fact classified pursuant to such Executive
order. See 31 U.S.C. 716(e)(1) and 718(b)(3) concerning the
applicability of these requirements to GAO.
(2) Investigatory material compiled for law enforcement purposes:
Provided, however, That if any individual is denied any right,
privilege, or benefit that he would otherwise be entitled to by Federal
law, or for which he would otherwise be eligible, as a result of the
maintenance of such material, such material shall be provided to such
individual, except to the extent that the disclosure of such material
would reveal the identity of a source who furnished information to the
Government under an express promise that the identity of the source
would be held in confidence, or, prior to the effective date of this
section, under an express or implied promise that the identity of the
source would be held in confidence;
(3) Maintained in connection with providing protection services to
the President of the United States or other individuals pursuant to
section 3056 of Title 18, United States Code;
(4) Required by statute to be maintained and used solely as
statistical records;
(5) Investigatory material compiled solely for the purposes of
determining suitability, eligibility, or qualifications for Federal
civilian employment, military service, Federal contracts, or access to
classified information, but only to the extent that the disclosure of
such material would reveal the identity of the source who furnished
information to the Government under an express promise that the identity
of the source would be held in confidence, or, prior to the effective
date of this section, under an express or implied promise that the
identity of the source would be held in confidence (see 83.5(j)(1) for
the procedure to be used to obtain investigative data originated by
other Government agencies);
(6) Testing or examination material used solely to determine
individual qualifications for appointment or promotion in the Federal
service the disclosure of which would compromise the objectivity or
fairness of the testing or examination process; or
(7) Evaluation material used to determine potential for promotion in
the armed services, but only to the extent that the disclosure of such
material would reveal the identity of a source who furnished information
to the Government under an express promise that the identity of the
source would be held in confidence, or, prior to the effective date of
this section, under an express or implied promise that the identity of
the source would be held in confidence.
04 CFR 83.21 Pt. 83, App. I
04 CFR 83.21 Appendix I to part 83 -- Memorandum of Understanding
This memorandum of understanding constitutes an agreement between the
U.S. Office of Personnel Management (OPM), the National Archives and
Records Service of the General Services Administration (NARS), and the
U.S. General Accounting Office (GAO) concerning:
(1) The maintenance of the Official Personnel Folder (OPF) of an
individual who has been employed in a position subject to the provisions
of Title 5, U.S.C. and to the regulations and procedures issued by OPM
to govern the Federal civil service, and also in a position subject to
the GAO Personnel Act of 1980 (Pub. L. 96-191) and its implementing
regulations and procedures;
(2) The exchange of personnel documents and data between the Federal
civil service administered by OPM and the personnel system administered
by GAO;
(3) The establishment of procedures for processing requests for
access to, disclosure from, and amendment of documents in the OPF of an
individual who has service under both personnel systems;
(4) The establishment of procedures to be followed by the National
Personnel Records Center (NPRC) when responding to requests pertaining
to separated employees in any of the following circumstances:
(a) When the OPF contains documentation resulting from employment in
both systems;
(b) When a request is received for transfer of an OPF between
systems;
(c) When processing a request for an OPF, and that OPF contains only
records of GAO employment since October 1, 1980;
(5) The agreement of the parties to consult and cooperate in matters
relating to the establishment and revision of personnel procedures which
may have mutual effect so as to insure the sharing of essential
information while minimizing the recordkeeping burden of all three
parties.
04 CFR 83.21 SUBCHAPTER G -- STANDARDS FOR WAIVER OF CLAIMS FOR ERRONEOUS PAYMENTS OF PAY AND ALLOWANCES, AND OF TRAVEL, TRANSPORTATION, AND RELOCATION EXPENSES AND ALLOWANCES
04 CFR 83.21 PART 91 -- STANDARDS FOR WAIVER
Sec.
91.1 Purpose and scope of subchapter.
91.2 Definitions.
91.3 Exclusions.
91.4 Authority to waive.
91.5 Conditions for waiver.
91.6 Effect of waiver.
Authority: 31 U.S.C. 711. Interpret or apply 5 U.S.C. 5584, 10
U.S.C. 2774, and 32 U.S.C. 716, as amended by Pub. L. 99-224, 99 Stat.
1741, December 28, 1985, Title X, sec. 1009, Pub. L. 100-702, 102
Stat. 4667, November 19, 1988, and Title VI, sec. 657, Pub. L.
102-190, 105 Stat. 1290, December 5, 1991.
Source: 56 FR 49583, Sept. 30, 1991, unless otherwise noted.
04 CFR 91.1 Purpose and scope of subchapter.
This subchapter implements 5 U.S.C. 5584, 10 U.S.C. 2774, and 32
U.S.C. 716. It prescribes the effect of and the standards and procedures
for waiver of claims of the United States arising out of erroneous
payments of pay and allowances, and erroneous payments of travel,
transportation, and relocation expenses and allowances, made to or on
behalf of employees of an agency or members of the uniformed services,
including the National Guard, the collection of which would be against
equity and good conscience and not in the best interests of the United
States. These regulations do not affect any authority under any other
statute to litigate, settle, compromise, or waive any claim of the
United States.
04 CFR 91.2 Definitions.
(a) Agency means --
(1) An executive agency as defined in 5 U.S.C. 105, including the
General Accounting Office,
(2) The Government Printing Office,
(3) The Library of Congress,
(4) The Office of the Architect of the Capitol,
(5) The Botanic Garden, and
(6) The Administrative Office of the United States Courts, the
Federal Judicial Center, and any of the courts set forth in section 610
of title 28, U.S. Code. Section 610 defines ''courts'' to include the
courts of appeals and district courts of the United States, the United
States District Court for the District of the Canal Zone, the District
Court of Guam, the District Court of the Virgin Islands, the United
States Claims Court and the Court of International Trade.
(b) Secretary concerned shall have the same meaning as it does in
section 101(5) of title 37, U.S. Code.
(c) Head of an agency means the head of each agency listed in
paragraphs (a) (1) through (5) of this section and the Director,
Administrative Office of the United States Courts, for the agencies and
courts listed in paragraph (a)(6) of this section.
(d) Uniformed services means the Army, Navy, Air Force, Marine Corps,
Coast Guard, National Oceanic and Atmospheric Administration, and Public
Health Service.
(e) National Guard means the Army National Guard, the Air National
Guard, the Army National Guard of the United States, and Air National
Guard of the United States.
(f) Employee means an officer or employee as defined in 5 U.S.C.
2104 and 2105 who is or was employed in a civilian capacity by an
agency.
(g) As it relates to employees, the term --
(1) Pay means salary, wages, pay, compensation, emoluments, and
remuneration for services. It includes but is not limited to overtime
pay; night, standby, irregular and hazardous duty differential; pay
for Sunday and holiday work; payment for accumulated and accrued leave;
and severance pay.
(2) Allowances includes but is not limited to payments for quarters,
uniforms, and overseas cost of living expenses.
(3) Travel, transportation or relocation expenses and allowances
includes but is not limited to items referred to in 5 U.S.C. 5701-5709
and 5721-5734, 22 U.S.C. 4081, and other comparable provisions, payment
of which is made on or after December 28, 1985.
(h) Member means a member or former member of the uniformed services,
or member or former member of the National Guard.
(i) As it relates to members, the term --
(1) Pay includes but is not limited to base and longevity pay, basic
pay, training duty pay, special and incentive pays, readjustment pay,
severance pay, mustering-out pay, retainer pay, retired pay, retirement
pay, lump-sum leave pay, and equivalent pay.
(2) Allowances includes but is not limited to payments in lieu of
subsistence, quarters, uniforms, clothing, personal money allowance,
family separation allowance, and overseas station allowance.
(3) Travel and transportation allowances includes but is not limited
to items referred to in 37 U.S.C. 404-411 and other comparable
provisions, payment of which is made on or after December 28, 1985.
(j) Aggregate amount means the gross amount of the claim against the
employee, member, or other person from whom collection is sought.
04 CFR 91.3 Exclusions.
This part does not apply to:
(a) Employees of the District of Columbia Government,
(b) Employees of the legislative branch of the Government, except
employees of the Architect of the Capitol, the Government Printing
Office, the Library of Congress, the Botanic Garden, and the General
Accounting Office.
04 CFR 91.4 Authority to waive.
(a) The Comptroller General of the United States, or his designee,
may grant waiver in whole or in part of a claim of the United States in
any amount arising out of an erroneous payment of pay or allowances made
to employees on or after July 1, 1960, and to members on or after
October 2, 1972, or an erroneous payment of travel, transportation or
relocation expenses or allowances made on or after December 28, 1985, to
an employee or member, when all of the requirements for waiver are met.
Claims referred to the Attorney General for litigation will not be
considered for waiver by the Comptroller General of the United States
without first having obtained the agreement of the Attorney General.
(b) The Director of the Administrative Office of the United States
Courts may grant waiver in whole or in part of a claim of the United
States in an amount aggregating not more than $10,000 arising out of an
erroneous payment of pay or allowances or an erroneous payment of
travel, transportation or relocation expenses or allowances to an
officer or employee of the Administrative Office of the United States
Courts, the Federal Judicial Center, or any of the courts listed in
91.2(a)(6). This authority applies with respect to any claim arising
before November 19, 1988, that was pending on that date and to any claim
which arose on or after that date.
(c) The head of an agency or the Secretary concerned, or his designee
--
(1) May grant waiver in whole or in part of a claim of the United
States in an amount aggregating not more than $1500, when all the
requirements for waiver are met, except that the Director of the
Administrative Office of the United States Courts may grant waiver in
whole or in part of a claim in an amount aggregating not more than
$10,000;
(2) May deny waiver of a claim in any amount, provided that the
employee, member, or other person from whom collection is sought must be
advised of the right to appeal the denial to the General Accounting
Office pursuant to the procedures set forth in part 92 of this
subchapter; and
(3) May not grant waiver of any claim that is the subject of an
exception made by the Comptroller General in the account of any
accountable officer, or that has been referred to the General Accounting
Office or to the Attorney General.
(d) The Government's claim against an employee or member for
repayment of an advance of funds for travel or relocation expenses may
be considered for waiver if --
(1) The advance was made to cover expenses erroneously authorized;
(2) The employee or member actually spent the advance in reliance on
the erroneous travel authorization; and
(3) The employee or member is indebted to the Government for
repayment of all or part of the amounts advanced after the advance is
applied against any legitimate expenses incurred by the employee or
member.
(56 FR 49583, Sept. 30, 1991, as amended at 56 FR 67467, Dec. 31,
1991)
04 CFR 91.5 Conditions for waiver.
(a) Three-year application period.
(1) An application for waiver must be received in the General
Accounting Office or in the agency or department which made the
erroneous payment within 3 years immediately following the date on which
the erroneous payment was discovered, or in the case of certain
applications received prior to July 25, 1977, as provided in 5 U.S.C.
5584(b).
(2) The employee, member, or other person from whom collection is
sought shall be promptly notified of the discovery of an erroneous
payment. In determining the date of discovery of an erroneous payment,
all doubts are to be resolved in favor of the applicant.
(b) Waiver may be granted only when collection would be against
equity and good conscience and not in the best interests of the United
States. Generally, these criteria will be met by a finding that the
erroneous payment occurred through administrative error and that there
is no indication of fraud, misrepresentation, fault, or lack of good
faith on the part of the employee, member, or other person having an
interest in obtaining a waiver of the claim. Generally, waiver is
precluded when an employee, member, or other person having an interest
in obtaining waiver receives a significant unexplained increase in pay
or allowances, or otherwise knows, or reasonably should know, that an
erroneous payment has occurred, and fails to make inquiries or bring the
matter to the attention of the appropriate officials. Waiver under this
standard must necessarily depend upon the facts existing in the
particular case. The facts upon which waiver is based should be
recorded in detail and made a part of the written record in accordance
with the provisions of part 92 of this subchapter.
04 CFR 91.6 Effect of waiver.
(a) In the audit and settlement of the accounts of any accountable
officer or official, full credit shall be given for any amounts with
respect to which collection by the United States is waived.
(b) An erroneous payment, the collection of which is waived pursuant
to this subchapter, is deemed a valid payment for all purposes.
04 CFR 91.6 PART 92 -- PROCEDURE
Sec.
92.1 Who may apply for waiver.
92.2 Where to apply.
92.3 Report of the agency or department.
92.4 Action by the agency or department.
92.5 Initial action by the General Accounting Office and appeals to
the Comptroller General.
92.6 Refund of amounts repaid and waived.
92.7 Written record.
92.8 Register of waivers.
92.9 Referral of claims for collection or litigation.
Authority: 31 U.S.C. 711. Interpret or apply 5 U.S.C. 5584, 10
U.S.C. 2774, and 32 U.S.C. 716, as amended by Pub. L. 99-224, 99 Stat.
1741, December 28, 1985, Title X, sec. 1009, Pub. L. 100-702, 102
Stat. 4667, November 19, 1988, and Title VI, sec. 657, Pub. L.
102-190, 105 Stat. 1290, December 5, 1991.
Source: 56 FR 49584, Sept. 30, 1991, unless otherwise noted.
04 CFR 92.1 Who may apply for waiver.
An application for waiver may be initiated by an employee, member, or
other person from whom collection is sought, or by an authorized
official of the agency or department that made the erroneous payment, or
by the Comptroller General of the United States.
04 CFR 92.2 Where to apply.
(a) An application for waiver filed by an employee, member, or other
person from whom collection is sought shall be submitted to the agency
or department that made the erroneous payment.
(b) After the agency or department has taken the actions required by
92.3 and 92.4, the employee, member, or other person from whom
collection is sought may request the agency or department to submit the
matter to the General Accounting Office.
(c) The agency or department shall submit all waiver applications
aggregating more than $1500 for which the agency recommends approval and
all appeals, regardless of the amount, for consideration by the General
Accounting Office to: Director, Claims Group, General Government
Division. U.S. General Accounting Office, Washington, DC 20548.
(d) The submission shall include all of the information required by
92.3 and 92.4, and any written comments on the matter submitted by the
employee, member, or other person from whom collection is sought.
(56 FR 49584, Sept. 30, 1991, as amended at 56 FR 67467, Dec. 31,
1991)
04 CFR 92.3 Report of the agency or department.
(a) Except as provided in paragraph (b) of this section, upon
initiation of an application for waiver, the agency or department shall
prepare a written report containing a chronological summary of the facts
and circumstances including:
(1) The names and mailing addresses of each employee, member, or
other person from whom collection is sought, or a statement that the
person cannot reasonably be located;
(2) The aggregate amount of the claim;
(3) The date the erroneous payment was discovered;
(4) The date the employee, member, or other person from whom
collection is sought was notified of the error and a statement of the
erroneous amounts paid before and after receipt of such notice;
(5) A statement as to the circumstances under which the erroneous
payment was made, the applicant's knowledge of the erroneous payment and
the steps the applicant took, if any, to bring the matter to the
attention of the appropriate official and the agency's response;
(6) A determination as to whether there is any indication of fraud,
misrepresentation, fault, or lack of good faith on the part of the
employee, member, or other interested person and the factual basis for
such a determination;
(7) A statement as to whether or not the erroneous payment is the
subject of an exception made by the Comptroller General of the United
States;
(8) Legible copies or the originals of supporting documents such as
leave and earnings statements, travel authorizations and vouchers, and
military orders;
(9) Statements of the employee, member, or other interested person;
(10) A statement as to the reason the agency or department believes
the erroneous payment occurred and the corrective action taken to
prevent the occurrence of similar erroneous payments.
(b) No written report is required where the amount involved is $100
or less and there is no indication of fraud, misrepresentation, fault,
or lack of good faith.
04 CFR 92.4 Action by the agency or department.
Upon completion of the report, the agency or department,
(a) Shall grant or deny waiver if authorized by 91.4 (b) or (c) of
this subchapter, or refer the matter to the General Accounting Office in
accordance with 92.2(c), and;
(b) Shall provide the applicant written notice as to whether the
application for waiver has been granted, denied, or referred to the
General Accounting Office, provided the person can reasonably be
located. When waiver is denied, the notice shall state the basis for
that decision and that, upon request, the agency or department will
forward an appeal to the General Accounting Office pursuant to 92.2.
04 CFR 92.5 Initial action by the General Accounting Office and appeals
to the Comptroller General.
(a) The Claims Group will issue a letter to the agency or department
granting or denying waiver in whole or in part. In every case where
waiver is denied in whole or in part, the Claims Group will send a copy
of the letter to the employee, member, or other person from whom
collection is sought.
(b) Letters issued by the Claims Group granting or denying waiver may
be appealed to the Comptroller General upon written request by the
agency or department, or by the employee, member, or other person from
whom collection is sought. The request should fully explain the errors
alleged and the basis of the appeal and should be addressed to:
Director, Claims Group, General Government Division, U.S. General
Accounting Office, Washington, DC 20548.
(c) The Comptroller General will issue a decision on the appeal and
will send a copy of the decision to the agency or department, and to the
employee, member, or other person from whom collection is sought.
04 CFR 92.6 Refund of amounts repaid and waived.
(a) When an employee, member, or other person from whom collection is
sought has repaid all or part of a claim to the United States and all or
part of the claim is subsequently waived, the application for waiver
shall be construed as an application for a refund and the agency or
department shall, to the extent of the waiver, refund the amount paid.
However, no refund shall be paid where the employee, member, or other
person from whom collection is sought cannot reasonably be located
within 2 years after the effective date of the waiver. Refunds shall be
charged to the account into which the agency deposited the collection.
(b) When no refund is made to an otherwise eligible person, the
written record should include information as to the attempts made to
locate that person and other pertinent information.
04 CFR 92.7 Written record.
(a) The report of the agency or department, any written comments
submitted by the employee, member or other person from whom collection
is sought, an account of the waiver action taken and the reasons
therefor, and other pertinent information such as the action taken to
refund amounts repaid shall constitute the written record in each case.
(b) The agency shall retain the written record for 6 years and 3
months for review by the General Accounting Office.
(c) Upon request by an employee, member, or other person against whom
collection is sought, the agency or department shall make the written
record of the waiver application that pertains to them available for
inspection.
04 CFR 92.8 Register of waivers.
(a) The agency or department shall maintain a register for each of
the categories listed in paragraph (b) of this section showing the
disposition of each application for waiver considered pursuant to this
subchapter. These registers shall be retained for review by the General
Accounting Office.
(b) The register required in paragraph (a) of this section shall
contain the following information:
(1) The total amount waived by the agency or department;
(2) The number and dollar amount of waiver applications granted in
full;
(3) The number of waiver applications granted in part and denied in
part and the dollar amount of each;
(4) The number and dollar amount of waiver applications denied in
their entirety;
(5) The number of waiver applications referred to the General
Accounting Office for action;
(6) The dollar amount refunded as a result of waiver action by the
agency or department; and
(7) The dollar amount refunded as a result of waiver action by the
General Accounting Office.
04 CFR 92.9 Referral of claims for collection or litigation.
No claim for the recovery of an erroneous payment that is under
consideration for waiver shall be referred to the Attorney General
unless the time remaining for suit within the applicable limitation does
not permit such waiver consideration prior to referral.
04 CFR 92.9 PART 93 -- (Reserved)
04 CFR 92.9 4 CFR Ch. II (1-1-92 Edition)
04 CFR 92.9 Federal Claims Collection Standards
04 CFR 92.9 CHAPTER II -- FEDERAL CLAIMS COLLECTION
04 CFR 92.9 STANDARDS (GENERAL ACCOUNTING
04 CFR 92.9 OFFICE -- DEPARTMENT OF JUSTICE)
Part
Page
04 CFR 92.9
04 CFR 92.9 4 CFR Ch. II (1-1-92 Edition)
04 CFR 92.9 Federal Claims Collection Standards
04 CFR 92.9 PART 101 -- SCOPE OF STANDARDS
Sec.
101.1 Prescription of standards.
101.2 Definitions.
101.3 Antitrust, fraud, tax, and interagency claims excluded.
101.4 Compromise, waiver, or disposition under other statutes not
precluded.
101.5 Conversion claims.
101.6 Subdivision of claims not authorized.
101.7 Required administrative proceedings.
101.8 Omissions not a defense.
Authority: 31 U.S.C. 3711.
Source: 49 FR 8896, Mar. 9, 1984, unless otherwise noted.
04 CFR 101.1 Prescription of standards.
The regulations in this chapter, issued jointly by the Comptroller
General of the United States and the Attorney General of the United
States under 31 U.S.C. 3711(e)(2), prescribe standards for the
administrative collection, compromise, termination of agency collection,
and the referral to the General Accounting Office, and to the Department
of Justice for litigation, of civil claims as defined by 31 U.S.C.
3701(b), by the Federal Government for money or property. Additional
guidance is contained in Title 4 of the General Accounting Office Policy
and Procedures Manual for Guidance of Federal Agencies. Regulations
prescribed by the head of an agency pursuant to 31 U.S.C. 3711(e)(1)
will be reviewed by the General Accounting Office as a part of its audit
of the agency's activities.
04 CFR 101.2 Definitions.
(a) Claim and debt. For the purposes of these standards, the terms
''claim'' and ''debt'' are deemed synonymous and interchangeable. They
refer to an amount of money or property which has been determined by an
appropriate agency official to be owed to the United States from any
person, organization, or entity, except another Federal agency.
(b) A debt is considered delinquent if it has not been paid by the
date specified in the agency's initial written notification ( 102.2 of
this chapter) or applicable contractual agreement, unless other
satisfactory payment arrangements have been made by that date, or if, at
any time thereafter, the debtor fails to satisfy obligations under a
payment agreement with the creditor agency.
(c) As used in this chapter, referral for litigation means referral
to the Department of Justice for appropriate legal proceedings, unless
the agency concerned has statutory authority for handling its own
litigation.
(d) In this chapter, words in the plural form shall include the
singular and vice versa; and words importing the masculine gender shall
include the feminine and vice versa. The terms ''includes'' and
''including'' do not exclude matters not listed but which are in the
same general class.
04 CFR 101.3 Antitrust, fraud, tax, and interagency claims excluded.
(a) The standards in this chapter relating to compromise, suspension,
and termination of collection action (parts 103 and 104) do not apply to
any claim based in whole or in part on conduct in violation of the
antitrust laws, or to any claim as to which there is an indication of
fraud, the presentation of a false claim, or misrepresentation on the
part of the debtor or any other party having an interest in the claim.
Only the Department of Justice has authority to compromise, suspend, or
terminate collection action on such claims. The standards in this
chapter relating to the administrative collection of claims (part 102)
do apply, but only to the extent authorized by the Department of Justice
in a particular case. Upon identification of a claim of any of the
types described in the first sentence of this paragraph, the agency
involved should refer the matter promptly to the Department of Justice.
At its discretion, the Department of Justice may return the claim to the
forwarding agency for further handling in accordance with the
regulations in this chapter.
(b) Tax claims, as to which differing exemptions, administrative
considerations, enforcement considerations, and statutes apply, are also
excluded from the coverage of this chapter.
(c) This chapter does not apply to claims between Federal agencies.
Federal agencies should attempt to resolve interagency claims by
negotiation. If the claim cannot be resolved by the agencies involved,
it should be referred to the General Accounting Office.
04 CFR 101.4 Compromise, waiver, or disposition under other statutes
not precluded.
Nothing contained in this chapter is intended to preclude agency
disposition of any claim under statutes and implementing regulations
other than Subchapter II of Chapter 37 of Title 31 of the United States
Code and these Standards, providing for the collection, compromise,
termination of collection action, or waiver in whole or in part of such
a claim. See, for example, the Federal Medical Care Recovery Act, 76
Stat. 593, 42 U.S.C. 2651 et seq., and applicable regulations, 28 CFR
43.1 et seq. In such cases, the laws and regulations which are
specifically applicable to claims collection activities of a particular
agency take precedence over this chapter. Except as provided in 102.19
of this chapter (Exemptions), the standards set forth in this chapter
should be followed in the disposition of civil claims by the Federal
Government by collection, compromise, or termination of collection
action (other than by waiver pursuant to other statutory authority)
where neither the specific statute nor its implementing regulations
establish standards governing such matters.
04 CFR 101.5 Conversion claims.
The instructions contained in this chapter are directed primarily at
the recovery of money on behalf of the United States and the
circumstances in which Government claims may be disposed of for less
than the full amount claimed. Nothing contained in this chapter is
intended, however, to deter an agency from demanding the return of
specific property or from demanding, in the alternative, either the
return of the property or the payment of its value.
04 CFR 101.6 Subdivision of claims not authorized.
Claims may not be subdivided to avoid the monetary ceiling
established by 31 U.S.C. 3711(a)(2). A debtor's liability arising from a
particular transaction or contract shall be considered a single claim in
determining whether the claim is one of less than $20,000, exclusive of
interest, penalties, and administrative costs, for purposes of
compromise ( 103.1 of this chapter) or suspension or termination of
collection action ( 104.1 of this chapter).
04 CFR 101.7 Required administrative proceedings.
Nothing contained in this chapter is intended to require an agency to
omit, foreclose, or duplicate administrative proceedings required by
contract or other laws or regulations.
04 CFR 101.8 Omissions not a defense.
The standards set forth in this chapter shall apply to the
administrative handling of civil claims of the Federal Government for
money or property but the failure of an agency to comply with any
provision of this chapter shall not be available as a defense to any
debtor.
04 CFR 101.8 PART 102 -- STANDARDS FOR THE ADMINISTRATIVE COLLECTION OF
CLAIMS
Sec.
102.1 Aggressive agency collection action.
102.2 Demand for payment.
102.3 Collection by administrative offset.
102.4 Administrative offset against amounts payable from Civil
Service Retirement and Disability Fund.
102.5 Use of consumer reporting agencies.
102.6 Contracting for collection services.
102.7 Personal interview with debtor.
102.8 Contact with debtor's employing agency.
102.9 Suspension or revocation of license or eligibility.
102.10 Liquidation of collateral.
102.11 Collection in installments.
102.12 Exploration of compromise.
102.13 Interest, penalties, and administrative costs.
102.14 Analysis of costs.
102.15 Documentation of administrative collection action.
102.16 Automation.
102.17 Prevention of overpayments, delinquencies, and defaults.
102.18 Use and disclosure of mailing addresses.
102.19 Exemptions.
102.20 Additional administrative collection action.
Authority: Subchapter II of Chapter 37 of Title 31, U. S. C. .
Source: 49 FR 8897, Mar. 9, 1984, unless otherwise noted.
04 CFR 102.1 Aggressive agency collection action.
(a) Each Federal agency shall take aggressive action, on a timely
basis with effective followup, to collect all claims of the United
States for money or property arising out of the activities of, or
referred to, that agency in accordance with the standards set forth in
this chapter. However, nothing contained in this chapter is intended to
require the General Accounting Office or the Department of Justice to
duplicate collection actions previously undertaken by any other agency,
or to perform collection actions which should have been undertaken by
any other agency in accordance with the standards set forth in this
chapter.
(b) All agencies are expected to cooperate with one another in their
debt collection activities.
04 CFR 102.2 Demand for payment.
(a) Appropriate written demands shall be made promptly upon a debtor
of the United States in terms which inform the debtor of the
consequences of failure to cooperate. A total of three progressively
stronger written demands at not more than 30-day intervals will normally
be made unless a response to the first or second demand indicates that a
further demand would be futile and the debtor's response does not
require rebuttal. In determining the timing of demand letters, agencies
should give due regard to the need to act promptly so that, as a general
rule, if necessary to refer the debt to the Department of Justice for
litigation, such referral can be made within one year of the agency's
final determination of the fact and the amount of the debt. When
necessary to protect the Government's interests (for example, to prevent
the statute of limitations, 28 U.S.C. 2415, from expiring), written
demand may be preceded by other appropriate actions under this chapter,
including immediate referral for litigation.
(b) The initial demand letter should inform the debtor of: (1) The
basis for the indebtedness and whatever rights the debtor may have to
seek review within the agency; (2) the applicable standards for
assessing interest, penalties, and administrative costs ( 102.13); and
(3) the date by which payment is to be made, which normally should be
not more than 30 days from the date that the initial demand letter was
mailed or hand-delivered. Agencies should exercise care to insure that
demand letters are mailed or hand-delivered on the same day that they
are actually dated. Apart from this, there is no prescribed format for
the demand letters. Agencies should utilize demand letters and
procedures that will lead to the earliest practicable determination of
whether the debt can be resolved administratively or must be referred
for litigation.
(c) As appropriate to the circumstances, agencies may consider
including, either in the initial demand letter or in subsequent letters,
such items as the agency's willingness to discuss alternative methods of
payment, policies with respect to use of consumer reporting agencies (
102.5) and collection services ( 102.6), the agency's intentions with
respect to referral of the debt to the Department of Justice for
litigation, and, depending on applicable statutory authority, the
debtor's entitlement to consideration of waiver.
(d) Agencies should respond promptly to communications from the
debtor, within 30 days whenever feasible, and should advise debtors who
dispute the debt to furnish available evidence to support their
contentions.
(e) If, either prior to the initiation of, at any time during, or
after completion of the demand cycle, an agency determines to pursue
offset, then the procedures specified in 102.3, 102.4, or 5 U.S.C.
5514, as applicable, should be followed. The availability of funds for
offset and the agency's determination to pursue it release the agency
from the necessity of further compliance with paragraphs (a), (b), and
(c) of this section. If the agency has not already sent the first
demand letter, the agency's written notification of its intent to offset
must give the debtor the opportunity to make voluntary payment, a
requirement which will be satisfied by compliance with the notice
requirements of 102.3, 102.4, or 5 U.S.C. 5514.
04 CFR 102.3 Collection by administrative offset.
(a) Collection by administrative offset will be undertaken in
accordance with these standards and implementing regulations established
by each agency on all claims which are liquidated or certain in amount
in every instance in which such collection is determined to be feasible
and not otherwise prohibited.
(1) For purposes of this section, the term ''administrative offset''
has the meaning provided in 31 U.S.C. 3716(a)(1).
(2) Whether collection by administrative offset is feasible is a
determination to be made by the creditor agency on a case-by-case basis,
in the exercise of sound discretion. Agencies should consider not only
whether administrative offset can be accomplished, both practically and
legally, but also whether offset is best suited to further and protect
all of the Government's interests. In appropriate circumstances,
agencies may give due consideration to the debtor's financial condition,
and are not required to use offset in every instance in which there is
an available source of funds. Agencies may also consider whether offset
would tend to substantially interfere with or defeat the purposes of the
program authorizing the payments against which offset is contemplated.
For example, under a grant program in which payments are made in advance
of the grantee's performance, offset will normally be inappropriate.
This concept generally does not apply, however, where payment is in the
form of reimbursement.
(b) Except as provided in 101.4, this paragraph or 102.4, the
standards in this paragraph shall apply to the collection of debts by
administrative offset under 31 U.S.C. 3716, some other statutory
authority, or the common law.
(1) Agencies shall prescribe regulations for the exercise of
administrative offset.
(2) Agency regulations required by paragraph (b)(1) of this section
shall establish procedures for providing a debtor, before the offset is
made, with appropriate procedural rights. Except as otherwise required
by law, those regulations shall provide for: Written notice of the
nature and amount of the debt, and the agency's intention to collect by
offset; opportunity to inspect and copy agency records pertaining to
the debt; opportunity to obtain review within the agency of the
determination of indebtedness; and opportunity to enter into a written
agreement with the agency to repay the debt. Agency regulations shall
also establish procedures for making requests for offset to other
agencies holding funds payable to the debtor, and for processing
requests for offset that are received from other agencies.
(i) Agencies have discretion and should exercise sound judgment in
determining whether to accept a repayment agreement in lieu of offset.
The determination should balance the Government's interest in collecting
the debt against fairness to the debtor. If the debt is delinquent and
the debtor has not disputed its existence or amount, an agency should
accept a repayment agreement in lieu of offset only if the debtor is
able to establish that offset would result in undue financial hardship
or would be against equity and good conscience.
(ii) In cases where the procedural requirements specified in
paragraph (b)(2) of this section have previously been provided to the
debtor in connection with the same debt under some other statutory or
regulatory authority, such as pursuant to a notice of audit
disallowance, the agency is not required to duplicate those requirements
before taking administrative offset.
(3) Agencies may not initiate administrative offset to collect a debt
under 31 U.S.C. 3716 more than 10 years after the Government's right to
collect the debt first accrued, unless facts material to the
Government's right to collect the debt were not known and could not
reasonably have been known by the official or officials of the
Government who were charged with the responsibility to discover and
collect such debts. When the debt first accrued is to be determined
according to existing law regarding the accrual of debts, such as under
28 U.S.C. 2415.
(4) Agencies are not authorized by 31 U.S.C. 3716 to use
administrative offset with respect to: (i) Debts owed by any State or
local Government; (ii) debts arising under or payments made under the
Social Security Act, the Internal Revenue Code of 1954, or the tariff
laws of the United States; or (iii) any case in which collection of the
type of debt involved by administrative offset is explicitly provided
for or prohibited by another statute. However, unless otherwise
provided by contract or law, debts or payments which are not subject to
administrative offset under 31 U.S.C. 3716 may be collected by
administrative offset under the common law or other applicable statutory
authority.
(5) Agencies may effect administrative offset against a payment to be
made to a debtor prior to the completion of the procedures required by
paragraph (b)(2) of this section if: (i) Failure to take the offset
would substantially prejudice the Government's ability to collect the
debt, and (ii) the time before the payment is to be made does not
reasonably permit the completion of those procedures. Such prior offset
must be promptly followed by the completion of those procedures.
Amounts recovered by offset but later found not to be owed to the
Government shall be promptly refunded.
(c) Type of hearing or review: (1) For purposes of this section,
whenever an agency is required to afford a debtor with a hearing or
review within the agency, the agency shall provide the debtor with a
reasonable opportunity for an oral hearing when: (i) An applicable
statute authorizes or requires the agency to consider waiver of the
indebtedness involved, the debtor requests waiver of the indebtedness,
and the waiver determination turns on an issue of credibility or
veracity; or (ii) the debtor requests reconsideration of the debt and
the agency determines that the question of the indebtedness cannot be
resolved by review of the documentary evidence, for example, when the
validity of the debt turns on an issue of credibility or veracity.
Unless otherwise required by law, an oral hearing under this section is
not required to be a formal evidentiary-type hearing, although the
agency should always carefully document all significant matters
discussed at the hearing.
(2) This section does not require an oral hearing with respect to
debt collection systems in which determinations of indebtedness or
waiver rarely involve issues of credibility or veracity and the agency
has determined that review of the written record is ordinarily an
adequate means to correct prior mistakes. In administering such a
system, the agency is not required to sift through all of the requests
received in order to accord oral hearings in those few cases which may
involve issues of credibility or veracity.
(3) In those cases where an oral hearing is not required by this
section, the agency shall nevertheless accord the debtor a ''paper
hearing,'' that is, the agency will make its determination on the
request for waiver or reconsideration based upon a review of the written
record.
(d) Appropriate use should be made of the cooperative efforts of
other agencies in effecting collection by administrative offset,
including use of the Army Holdup List. Generally, agencies should not
refuse to comply with requests from other agencies to initiate
administrative offset to collect debts owed to the United States, unless
the requesting agency has not complied with the applicable provisions of
these standards or the offset would be otherwise contrary to law.
(e) Collection by offset against a judgment obtained by a debtor
against the United States shall be accomplished in accordance with 31
U.S.C. 3728.
(f) Whenever the creditor agency is not the agency which is
responsible for making the payment against which administrative offset
is sought, the latter agency shall not initiate the requested offset
until it has been provided by the creditor agency with an appropriate
written certification that the debtor owes a debt (including the amount)
and that the provisions of this section have been fully complied with.
(g) When collecting multiple debts by administrative offset, agencies
should apply the recovered amounts to those debts in accordance with the
best interests of the United States, as determined by the facts and
circumstances of the particular case, paying special attention to
applicable statutes of limitations.
04 CFR 102.4 Administrative offset against amounts payable from Civil
Service Retirement and Disability Fund.
(a) Unless otherwise prohibited by law, agencies may request that
moneys which are due and payable to a debtor from the Civil Service
Retirement and Disability Fund be administratively offset in reasonable
amounts in order to collect in one full payment or a minimal number of
payments debts owed to the United States by the debtor. Such requests
shall be made to the appropriate officials of the Office of Personnel
Management in accordance with such regulations as may be prescribed by
the Director of that Office.
(b) When making a request for administrative offset under paragraph
(a) of this section, an agency shall include a written certification
that:
(1) The debtor owes the United States a debt, including the amount of
the debt;
(2) The requesting agency has complied with the applicable statutes,
regulations, and procedures of the Office of Personnel Management; and
(3) The requesting agency has complied with the requirements of
102.3 of this part, including any required hearing or review.
(c) Once an agency decides to request administrative offset under
paragraph (a) of this section, it should make the request as soon as
practical after completion of the applicable procedures in order that
the Office of Personnel Management may identify and ''flag'' the
debtor's account in anticipation of the time when the debtor requests or
becomes eligible to receive payments from the Fund. This will satisfy
any requirement that offset be initiated prior to expiration of the
applicable statute of limitations. At such time as the debtor makes a
claim for payments from the Fund, if at least a year has elapsed since
the offset request was originally made, the debtor should be permitted
to offer a satisfactory repayment plan in lieu of offset upon
establishing that changed financial circumstances would render the
offset unjust.
(d) If the requesting agency collects part or all of the debt by
other means before deductions are made or completed pursuant to
paragraph (a) of this section, the agency shall act promptly to modify
or terminate its request for offset under paragraph (a) of this section.
(e) This section does not require or authorize the Office of
Personnel Management to review the merits of the requesting agency's
determination with respect to the amount and validity of the debt, its
determination as to waiver under an applicable statute, or its
determination to provide or not provide an oral hearing.
04 CFR 102.5 Use of consumer reporting agencies.
(a) Agencies shall develop and implement procedures for reporting
delinquent debts to consumer reporting agencies. For purposes of this
section, the term ''consumer reporting agency'' has the meaning provided
in 31 U.S.C. 3701(a)(3).
(b) In developing procedures under paragraph (a) of this section,
agencies must have due regard for compliance with the Privacy Act of
1974, as amended, 5 U.S.C. 552a. However, consumer reporting agencies
themselves are not subject to the Privacy Act.
(c) Agency procedures developed under paragraph (a) of this section
shall be consistent with the requirements of 31 U.S.C. 3711(f) and
102.3(c) of this part.
04 CFR 102.6 Contracting for collection services.
(a) All agencies have authority to contract for collection services
to recover delinquent debts, provided that the following conditions are
satisfied:
(1) The authority to resolve disputes, compromise claims, suspend or
terminate collection action, and refer the matter for litigation (
105.1) must be retained by the agency;
(2) The contractor shall be subject to the Privacy Act of 1974, as
amended, to the extent specified in 5 U.S.C. 552a(m), and to applicable
Federal and State laws and regulations pertaining to debt collection
practices, such as the Fair Debt Collection Practices Act, 15 U.S.C.
1692;
(3) The contractor must be required to account strictly for all
amounts collected; and
(4) The contractor must agree to provide any data contained in its
files relating to 105.2(a) (1), (2), and (3) of this chapter upon
returning an account to the creditor agency for subsequent referral to
the Department of Justice for litigation.
(b) Funding of collection service contracts:
(1) An agency may fund a collection service contract on a fixed-fee
basis, that is, payment of a fixed fee determined without regard to the
amount actually collected under the contract. Payment of the fee under
this type of contract must be charged to available agency
appropriations.
(2) An agency may also fund a collection service contract on a
contingent-fee basis, that is, by including a provision in the contract
permitting the contractor to deduct its fee from amounts collected under
the contract. The fee should be based on a percentage of the amount
collected, consistent with prevailing commercial practice.
(3) An agency may enter into a contract under paragraph (b)(1) of
this section only if and to the extent provided in advance in its
appropriation act or other legislation, except that this requirement
does not apply to the use of a revolving fund authorized by statute.
(4) Except as authorized under pargraph (b)(2) of this section, or
unless otherwise specifically provided by law, agencies must deposit all
amounts recovered under collection service contracts (or by agency
employees on behalf of the agency) in the Treasury as miscellaneous
receipts pursuant to 31 U.S.C. 3302.
04 CFR 102.7 Personal interview with debtor.
Agencies will undertake personal interviews with their debtors
whenever this is feasible, having regard for the amounts involved and
the proximity of agency representatives to such debtors.
04 CFR 102.8 Contact with debtor's employing agency.
When a debtor is employed by the Federal Government or is a member of
the military establishment or the Coast Guard, and collection by offset
cannot be accomplished in accordance with 5 U.S.C. 5514, the employing
agency will be contacted for the purpose of arranging with the debtor
for payment of the indebtedness by allotment or otherwise in accordance
with section 206 of Executive Order 11222, May 8, 1965, 30 FR 6469.
04 CFR 102.9 Suspension or revocation of license or eligibility.
Agencies seeking the collection of statutory penalties, forfeitures,
or debts provided for as an enforcement aid or for compelling compliance
should give serious consideration to the suspension or revocation of
licenses or other privileges for any inexcusable, prolonged or repeated
failure of a debtor to pay such a claim, and the debtor should be so
advised. Any agency making, guaranteeing, insuring, acquiring, or
participating in loans should give serious consideration to suspending
or disqualifying any lender, contractor, broker, borrower or other
debtor from doing further business with it or engaging in programs
sponsored by it if such a debtor fails to pay its debts to the
Government within a reasonable time, and the debtor should be so
advised. The failure of any surety to honor its obligations in
accordance with 31 U.S.C. 9305 is to be reported to the Treasury
Department at once. Notification that a surety's certificate of
authority to do business with the Federal Government has been revoked or
forfeited by the Treasury Department will be forwarded by that
Department to all interested agencies.
04 CFR 102.10 Liquidation of collateral.
An agency holding security or collateral which may be liquidated and
the proceeds applied on debts due it through the exercise of a power of
sale in the security instrument or a nonjudicial foreclosure should do
so by such procedures if the debtor fails to pay the debt within a
reasonable time after demand, unless the cost of disposing of the
collateral will be disproportionate to its value or special
circumstances require judicial foreclosure. The agency should provide
the debtor with reasonable notice of the sale, an accounting of any
surplus proceeds, and any other procedures required by contract or law.
Collection from other sources, including liquidation of security or
collateral, is not a prerequisite to requiring payment by a surety or
insurance concern unless such action is expressly required by statute or
contract.
04 CFR 102.11 Collection in installments.
(a) Whenever feasible, and except as otherwise provided by law, debts
owed to the United States, together with interest, penalties, and
administrative costs as required by 102.13 of this part, should be
collected in full in one lump sum. This is true whether the debt is
being collected by administrative offset or by another method, including
voluntary payment. However, if the debtor is financially unable to pay
the indebtedness in one lump sum, payment may be accepted in regular
installments. Agencies should obtain financial statements from debtors
who represent that they are unable to pay the debt in one lump sum.
Agencies which agree to accept payment in regular installments should
obtain a legally enforceable written agreement from the debtor which
specifies all of the terms of the arrangement and which contains a
provision accelerating the debt in the event the debtor defaults. The
size and frequency of installment payments should bear a reasonable
relation to the size of the debt and the debtor's ability to pay. If
possible, the installment payments should be sufficient in size and
frequency to liquidate the Government's claim in not more than 3 years.
Installment payments of less than $50 per month should be accepted only
if justifiable on the grounds of financial hardship or for some other
reasonable cause. An agency holding an unsecured claim for
administrative collection should attempt to obtain an executed
confess-judgment note, comparable to the Department of Justice Form
USA-70a, from a debtor when the total amount of the deferred
installments will exceed $750. Such notes may be sought when an
unsecured obligation of a lesser amount is involved. When attempting to
obtain confess-judgment notes, agencies should provide their debtors
with written explanation of the consequences of signing the note, and
should maintain documentation sufficient to demonstrate that the debtor
has signed the note knowingly and voluntarily. Security for deferred
payments other than a confess-judgment note may be accepted in
appropriate cases. An agency may accept installment payments
notwithstanding the refusal of a debtor to execute a confess-judgment
note or to give other security, at the agency's option.
(b) If the debtor owes more than one debt and designates how a
voluntary installment payment is to be applied as among those debts,
that designation must be followed. If the debtor does not designate the
application of the payment, agencies should apply payments to the
various debts in accordance with the best interests of the United
States, as determined by the facts and circumstances of the particular
case, paying special attention to applicable statues of limitations.
04 CFR 102.12 Exploration of compromise.
Agencies may attempt to effect compromise, preferably during the
course of personal interviews, in accordance with the standards set
forth in part 103 of this chapter.
04 CFR 102.13 Interest, penalties, and administrative costs.
(a) Except as provided in paragraphs (h) and (i) of this section,
agencies shall assess interest, penalties, and administrative costs on
debts owed to the United States pursuant to 31 U.S.C. 3717. Before
assessing these charges, an agency must mail or hand-deliver a written
notice to the debtor explaining the agency's requirements concerning the
charges. (See 102.2 of this part.)
(b) Interest shall accrue from the date on which notice of the debt
and the interest requirements is first mailed or hand-delivered to the
debtor (on or after October 25, 1982), using the most current address
that is available to the agency. If an agency uses an ''advance
billing'' procedure -- that is, if it mails a bill before the debt is
actually owed -- it can include the required interest notification in
the advance billing, but interest may not start to accrue before the
debt is actually owed. Agencies should exercise care to insure that the
notices required by this section are dated and mailed or hand-delivered
on the same day.
(c) The rate of interest assessed shall be the rate of the current
value of funds to the U.S. Treasury (i.e., the Treasury tax and loan
account rate), as prescribed and published by the Secretary of the
Treasury in the Federal Register and the Treasury Fiscal Requirements
Manual Bulletins annually or quarterly, in accordance with 31 U.S.C.
3717. An agency may assess a higher rate of interest if it reasonably
determines that a higher rate is necessary to protect the interests of
the United States. The rate of interest, as initially assessed, shall
remain fixed for the duration of the indebtedness, except that where a
debtor has defaulted on a repayment agreement and seeks to enter into a
new agreement, the agency may set a new interest rate which reflects the
current value of funds to the Treasury at the time the new agreement is
executed. Interest should not be assessed on interest, penalties, or
administrative costs required by this section. However, if the debtor
defaults on a previous repayment agreement, charges which accrued but
were not collected under the defaulted agreement shall be added to the
principal to be paid under a new repayment agreement.
(d) An agency shall assess against a debtor charges to cover
administrative costs incurred as a result of a delinquent debt, -- that
is, the additional costs incurred in processing and handling the debt
because it became delinquent as defined in 101.2(b) of this chapter.
Calculation of administrative costs should be based upon actual costs
incurred or upon cost analyses establishing an average of actual
additional costs incurred by the agency in processing and handling
claims against other debtors in similar stages of delinquency.
Administrative costs may include costs incurred in obtaining a credit
report or in using a private debt collector, to the extent they are
attributable to delinquency.
(e) An agency shall assess a penalty charge, not to exceed 6 percent
a year, on any portion of a debt that is delinquent as defined in
101.2(b) of this chapter for more than 90 days. This charge need not be
calculated until the 91st day of delinquency, but shall accrue from the
date that the debt became delinquent.
(f) When a debt is paid in partial or installment payments, amounts
received by the agency shall be applied first to outstanding penalty and
administrative cost charges, second to accrued interest, and third to
outstanding principal.
(g) An agency shall waive the collection of interest on the debt or
any portion of the debt which is paid within 30 days after the date on
which interest began to accrue. An agency may extend this 30-day
period, on a case-by-case basis, if it reasonably determines that such
action is appropriate. Also, an agency may waive, in whole or in part,
the collection of interest, penalties, and/or administrative costs
assessed under this section under the criteria specified in part 103 of
this chapter relating to the compromise of claims (without regard to the
amount of the debt), or if the agency determines that collection of
these charges would be against equity and good conscience or not in the
best interests of the United States. Waiver under the first sentence of
this paragraph (g) is mandatory. Under the second and third sentences,
it may be exercised only in accordance with regulations issued by the
agency identifying the standards and appropriate circumstances for
waiver. Examples of situations which agencies may consider including in
their interest waiver regulations are: (1) Waiver of interest pending
consideration of a request for reconsideration, administrative review,
or waiver of the underlying debt under a permissive statute, and (2)
waiver of interest where the agency has accepted an installment plan
under 102.11 of this part, there is no indication of fault or lack of
good faith on the part of the debtor, and the amount of interest is
large enough in relation to the size of the installments that the debtor
can reasonably afford to pay that the debt will never be repaid.
(h) Where a mandatory waiver or review statute applies, interest and
related charges may not be assessed for those periods during which
collection action must be suspended under 104.2(c)(1) of this chapter.
(i) Exemptions. (1) The provisions of 31 U.S.C. 3717 do not apply:
(i) To debts owed by any State or local government;
(ii) To debts arising under contracts which were executed prior to,
and were in effect on (i.e., were not completed as of), October 25,
1982;
(iii) To debts where an applicable statute, regulation required by
statute, loan agreement, or contract either prohibits such charges or
explicitly fixes the charges that apply to the debts involved; or
(iv) To debts arising under the Social Security Act, the Internal
Revenue Code of 1954, or the tariff laws of the United States.
(2) However, agencies are authorized to assess interest and related
charges on debts which are not subject to 31 U.S.C. 3717 to the extent
authorized under the common law or other applicable statutory authority.
04 CFR 102.14 Analysis of costs.
Agency collection procedures should provide for periodic comparison
of costs incurred and amounts collected. Data on costs and
corresponding recovery rates for debts of different types and in various
dollar ranges should be used to compare the cost effectiveness of
alternative collection techniques, establish guidelines with respect to
points at which costs of further collection efforts are likely to exceed
recoveries, assist in evaluating offers in compromise, and establish
minimum debt amounts below which collection efforts need not be taken.
Cost and recovery data should also be useful in justifying adequate
resources for an effective collection program, evaluating the
feasibility and cost effectiveness of contracting for debt collection
services under 102.6, and determining appropriate charges for
administrative costs under 102.13(d).
04 CFR 102.15 Documentation of administrative collection action.
All administrative collection action shall be documented and the
bases for compromise, or for termination or suspension of collection
action, should be set out in detail. Such documentation shall be
retained in the appropriate claims file.
04 CFR 102.16 Automation.
Agencies should automate their debt collection operations to the
extent it is cost effective and feasible.
04 CFR 102.17 Prevention of overpayments, delinquencies, and defaults.
Agencies should establish procedures to identify the causes of
overpayments, delinquencies, and defaults and the corrective actions
needed.
04 CFR 102.18 Use and disclosure of mailing addresses.
(a) When attempting to locate a debtor in order to collect or
compromise a debt under this chapter, an agency may send a written
request to the Secretary of the Treasury (or designee) in order to
obtain a debtor's mailing address from the records of the Internal
Revenue Service.
(b) An agency may disclose a mailing address obtained under paragraph
(a) of this section to other agents, including collection service
contractors, in order to facilitate the collection or compromise of
debts under this chapter, except that a mailing address may be disclosed
to a consumer reporting agency only for the limited purpose of obtaining
a commercial credit report on the particular taxpayer.
(c) Each agency shall ensure, by appropriate regulations and contract
administration, that the agency and its agents, including consumer
reporting agencies and collection service contractors, comply with the
provisions of 26 U.S.C. 6103(p)(4) and applicable regulations of the
Internal Revenue Service.
04 CFR 102.19 Exemptions.
(a) The preceding sections of this part, to the extent they reflect
remedies or procedures prescribed by the Debt Collection Act of 1982,
such as administrative offset ( 102.3 and 102.4), use of consumer
reporting agencies ( 102.5), contracting for collection services (
102.6), and interest and related charges ( 102.13), do not apply to
debts arising under or payments made under the Internal Revenue Code of
1954, as amended (26 U.S.C. 1 et seq.), the Social Security Act (42
U.S.C. 301 et seq.), or the tariff laws of the United States. However,
these remedies and procedures may still be authorized with respect to
debts which are exempt from the purview of the Debt Collection Act of
1982, to the extent that they are authorized under some other statute or
the common law.
(b) This section should not be construed as prohibiting use of these
authorities or requirements when collecting debts owed by persons
employed by agencies administering the laws cited in the preceding
paragraph unless the debt ''arose under'' those laws.
04 CFR 102.20 Additional administrative collection action.
Nothing contained in this chapter is intended to preclude the
utilization of any other administrative remedy which may be available.
04 CFR 102.20 PART 103 -- STANDARDS FOR THE COMPROMISE OF CLAIMS
Sec.
103.1 Scope and application.
103.2 Inability to pay.
103.3 Litigative probabilities.
103.4 Cost of collecting claim.
103.5 Enforcement policy.
103.6 Joint and several liability.
103.7 Compromise for a combination of reasons.
103.8 Further review of compromise offers.
103.9 Restrictions.
Authority: 31 U.S.C. 3711.
Source: 49 FR 8902, Mar. 9, 1984, unless otherwise noted.
04 CFR 103.1 Scope and application.
(a) The standards set forth in this part apply to the compromise of
claims pursuant to 31 U.S.C. 3711. The head of an agency may exercise
such compromise authority with respect to claims for money or property
arising out of the activities of that agency where the claim, exclusive
of interest, penalties, and administrative costs, does not exceed
$20,000, prior to the referral of such claims to the General Accounting
Office, or to the Department of Justice for litigation. The Comptroller
General may exercise such compromise authority with respect to claims
referred to the General Accounting Office prior to their further
referral for litigation. Only the Comptroller General may effect the
compromise of a claim that arises out of an exception made by the
General Accounting Office in the account of an accountable officer,
including a claim against the payee, prior to its referral by that
Office for litigation. Agency heads, including the Comptroller General,
may designate officials within their respective agencies to exercise the
authorities referred to in this section.
(b) When the claim, exclusive of interest, penalties, and
administrative costs, exceeds $20,000, the authority to accept the
compromise rests solely with the Department of Justice. The agency
should evaluate the offer, using the factors set forth in this part. If
the agency then wishes to accept the compromise, it must refer the
matter to the Department of Justice, using the Claims Collection
Litigation Report. See 4 CFR 105.2(b). Claims for which the gross
amount is over $100,000 shall be referred to the Commercial Litigation
Branch, Civil Division, Department of Justice, Washington, D.C. 20530.
Claims for which the gross original amount is $100,000 or less shall be
referred to the United States Attorney in whose judicial district the
debtor can be found. The referral should specify the reasons for the
agency's recommendation. Justice Department approval is not required if
the agency wishes to reject the compromise offer.
04 CFR 103.2 Inability to pay.
(a) A claim may be compromised pursuant to this part if the
Government cannot collect the full amount because of: (1) The debtor's
inability to pay the full amount within a reasonable time, or (2) the
refusal of the debtor to pay the claim in full and the Government's
inability to enforce collection in full within a reasonable time by
enforced collection proceedings.
(b) In determining the debtor's inability to pay, the following
factors, among others, may be considered:
(1) Age and health of the debtor;
(2) Present and potential income;
(3) Inheritance prospects;
(4) The possibility that assets have been concealed or improperly
transferred by the debtor; and
(5) The availability of assets or income which may be realized by
enforced collection proceedings.
(c) The agency should give consideration to the applicable exemptions
available to the debtor under State and Federal law in determining the
Government's ability to enforce collection. Uncertainty as to the price
which collateral or other property will bring at forced sale may
properly be considered in determining the Government's ability to
enforce collection. A compromise effected under this section should be
for an amount which bears a reasonable relation to the amount which can
be recovered by enforced collection procedures, having regard for the
exemptions available to the debtor and the time which collection will
take.
(d) Compromises payable in installments are to be discouraged.
However, if payment of a compromise by installments is necessary, a
legally enforceable agreement for the reinstatement of the prior
indebtedness less sums paid thereon and acceleration of the balance due
upon default in the payment of any installment should be obtained,
together with security in the manner set forth in 102.11 of this
chapter, in every case in which this is possible.
(e) If the agency's files do not contain reasonably up-to-date credit
information as a basis for assessing a compromise proposal, such
information may be obtained from the individual debtor by obtaining a
statement executed under penalty of perjury showing the debtor's assets
and liabilities, income and expenses. Forms such as Department of
Justice Form OBD-500 or OBD-500B may be used for this purpose. Similar
data may be obtained from corporate debtors using a form such as
Department of Justice Form OBD-500C or by resort to balance sheets and
such additional data as seems required.
04 CFR 103.3 Litigative probabilities.
A claim may be compromised pursuant to this part if there is a real
doubt concerning the Government's ability to prove its case in court for
the full amount claimed, either because of the legal issues involved or
a bona fide dispute as to the facts. The amount accepted in compromise
in such cases should fairly reflect the probability of prevailing on the
legal question involved, the probabilities with respect to full or
partial recovery of a judgment, paying due regard to the availability of
witnesses and other evidentiary support for the Government claim, and
related pragmatic considerations. In determining the litigative risks
involved, proportionate weight should be given to the probable amount of
court costs and attorney fees pursuant to the Equal Access to Justice
Act which may be assessed against the Government if it is unsuccessful
in litigation. See 28 U.S.C. 2412.
04 CFR 103.4 Cost of collecting claim.
A claim may be compromised pursuant to this part if the cost of
collecting the claim does not justify the enforced collection of the
full amount. The amount accepted in compromise in such cases may
reflect an appropriate discount for the administrative and litigative
costs of collection, paying heed to the time which it will take to
effect collection. Costs of collecting may be a substantial factor in
the settlement of small claims, but normally will not carry great weight
in the settlement of large claims. In determining whether the cost of
collecting justifies enforced collection of the full amount, it is
legitimate to consider the positive effect that enforced collection of
some claims may have on the collection of other claims. Since debtors
are more likely to pay when first requested to do so if an agency has a
policy of vigorous collection of all claims, the fact that the cost of
collection of any one claim may exceed the amount of the claim does not
necessarily mean that the claim should be compromised. The practical
benefits of vigorous collection of a small claim may include a
demonstration to other debtors that resistance to payment is not likely
to succeed.
04 CFR 103.5 Enforcement policy.
Statutory penalties, forfeitures, or debts established as an aid to
enforcement and to compel compliance may be compromised pursuant to this
part if the agency's enforcement policy in terms of deterrence and
securing compliance, both present and future, will be adequately served
by acceptance of the sum to be agreed upon. Mere accidential or
technical violations may be dealt with less severely than willful and
substantial violations.
04 CFR 103.6 Joint and several liability.
When two or more debtors are jointly and severally liable, collection
action will not be withheld against one such debtor until the other or
others pay their proportionate shares. The agency should not attempt to
allocate the burden of paying such claims as between the debtors but
should proceed to liquidate the indebtedness as quickly as possible.
Care should be taken that a compromise agreement with one such debtor
does not release the agency's claim against the remaining debtors. The
amount of a compromise with one such debtor shall not be considered a
precedent or as morally binding in determining the amount which will be
required from other debtors jointly and severally liable on the claim.
04 CFR 103.7 Compromise for a combination of reasons.
A claim may be compromised for one or for more than one of the
reasons authorized in this part.
04 CFR 103.8 Further review of compromise offers.
If an agency holds a debtor's firm written offer of compromise which
is substantial in amount and the agency is uncertain as to whether the
offer should be accepted, it may refer the offer, the supporting data,
and particulars concerning the claim to the General Accounting Office or
to the Department of Justice. The General Accounting Office or the
Department of Justice may act upon such an offer or return it to the
agency with instructions or advice.
04 CFR 103.9 Restrictions.
Neither a percentage of a debtor's profits nor stock in a debtor
corporation will be accepted in compromise of a claim. In negotiating a
compromise with a business concern, consideration should be given to
requiring a waiver of the tax-loss-carry-forward and tax-loss-carry-back
rights of the debtor.
04 CFR 103.9 PART 104 -- STANDARDS FOR SUSPENDING OR TERMINATING
COLLECTION ACTION
Sec.
104.1 Scope and application.
104.2 Suspension of collection activity.
104.3 Termination of collection activity.
104.4 Transfer of claims.
Authority: 31 U.S.C. 3711(a)(3).
Source: 49 FR 8903, Mar. 9, 1984, unless otherwise noted.
04 CFR 104.1 Scope and application.
(a) The standards set forth in this part apply to the suspension or
termination of collection action pursuant to 31 U.S.C. 3711(a)(3) on
claims which do not exceed $20,000, exclusive of interest, penalties,
and administrative costs, after deducting the amount of partial payments
or collections, if any. The head of an agency (or designee) may suspend
or terminate collection action under this part with respect to claims
for money or property arising out of activities of that agency prior to
the referral of such claims to the General Accounting Office or to the
Department of Justice for litigation. The Comptroller General (or
designee) may exercise such authority with respect to claims referred to
the General Accounting Office prior to their further referral for
litigation.
(b) If, after deducting the amount of partial payments or
collections, if any, a claim exceeds $20,000, exclusive of interest,
penalties, and administrative costs, the authority to suspend or
terminate rests solely with the Department of Justice. If the agency
thinks suspension or termination may be appropriate, it should evaluate
the matter, using the factors set forth in this part. if the agency
then concludes that suspension or termination is appropriate, it must
refer the matter to the Department of Justice, using the Claims
Collection Litigation Report. See 4 CFR 105.2(b). The referral should
specify the reasons for the agency's recommendation. If the agency
decides not to suspend or terminate collection action on the claim,
Justice Department approval is not required. If an agency determines
that its claim is plainly erroneous or clearly without legal merit, it
may terminate collection action regardless of the amount involved,
without the need for Department of Justice concurrence.
04 CFR 104.2 Suspension of collection activity.
(a) Inability to locate debtor. Collection action may be suspended
temporarily on a claim when the debtor cannot be located after diligent
effort and there is reason to believe that future collection action may
be sufficiently productive to justify periodic review and action on the
claim, with due consideration for the size and amount which may be
realized thereon. The following sources may be of assistance in
locating missing debtors: Telephone directories; city directories;
postmasters; drivers' license records; automobile title and
registration records; state and local governmental agencies; the
Internal Revenue Service ( 102.18 of this chapter); other Federal
agencies; employers, relatives, friends; credit agency skip locate
reports, and credit bureaus. Suspension as to a particular debtor
should not defer the early liquidation of security for the debt. Every
reasonable effort should be made to locate missing debtors sufficiently
in advance of the bar of the applicable statute of limitations, such as
28 U.S.C. 2415, to permit the timely filing of suit if such action is
warranted. If the missing debtor has signed a confess-judgment note and
is in default, referral of the note for the entry of judgment should not
be delayed because of the debtor's missing status.
(b) Financial condition of debtor. Collection action may also be
suspended temporarily on a claim when the debtor owns no substantial
equity in realty or personal property and is unable to make payments on
the Government's claim or effect a compromise at the time but the
debtor's future prospects justify retention of the claim for periodic
review and action, and:
(1) The applicable statute of limitations has been tolled or started
running anew; or
(2) Future collection can be effected by offset, notwithstanding the
statute of limitations, with due regard to the 10-year limitation
prescribed by 31 U.S.C. 3716(c)(1); or
(3) The debtor agrees to pay interest on the amount of the debt on
which collection action will be temporarily suspended, and such
temporary suspension is likely to enhance the debtor's ability to fully
pay the principal amount of the debt with interest at a later date.
(c) Request for waiver or administrative review. (1) If the statute
under which waiver or administrative review is sought is ''mandatory,''
that is, if it prohibits the agency from collecting the debt prior to
the agency's consideration of the request for waiver or review (see
Califano v. Yamasaki, 422 U.S. 682 (1979)), then collection action must
be suspended until either: (i) The agency has considered the request
for waiver/review, or (ii) the applicable time limit for making the
waiver/review request, as prescribed in the agency's regulations, has
expired and the debtor, upon proper notice, has not made such a request.
(2) If the applicable waiver/review statute is ''permissive,'' that
is, if it does not require all requests for waiver/review to be
considered, and if it does not prohibit collection action pending
consideration of a waiver/review request (for example, 5 U.S.C. 5584),
collection action may be suspended pending agency action on a
waiver/review request based upon appropriate consideration, on a
case-by-case basis, as to whether:
(i) There is a reasonable possibility that waiver will be granted, or
that the debt (in whole or in part) will be found not owing from the
debtor;
(ii) The Government's interests would be protected, if suspension
were granted, by reasonable assurance that the debt could be recovered
if the debtor does not prevail; and
(iii) Collection of the debt will cause undue hardship.
(3) If the applicable statutes and regulations would not authorize
refund by the agency to the debtor of amounts collected prior to agency
consideration of the debtor's waiver/review request in the event the
agency acts favorably on it, collection action should ordinarily be
suspended, without regard to the factors specified in paragraph (c)(2)
of this section, unless it appears clear, based on the request and the
surrounding circumstances, that the request is frivolous and was made
primarily to delay collection.
04 CFR 104.3 Termination of collection activity.
The head of an agency (or designee) may terminate collection activity
and consider the agency's file on the claim closed under the following
standards:
(a) Inability to collect any substantial amount. Collection action
may be terminated on a claim when it becomes clear that the Government
cannot collect or enforce collection of any significant sum from the
debtor, having due regard for the judicial remedies available to the
Government, the debtor's future financial prospects, and the exemptions
available to the debtor under State and Federal law. In determining the
debtor's inability to pay, the following factors, among others, may be
considered: Age and health of the debtor; present and potential
income; inheritance prospects; the possibility that assets have been
concealed or improperly transferred by the debtor; the availability of
assets or income which may be realized by enforced collection
proceedings.
(b) Inability to locate debtor. Collection action may be terminated
on a claim when the debtor cannot be located, and either: (1) There is
no security remaining to be liquidated, or (2) the applicable statute of
limitations has run and the prospects of collecting by offset,
notwithstanding the bar of the statute of limitations, are too remote to
justify retention of the claim.
(c) Cost will exceed recovery. Collection action may be terminated
on a claim when it is likely that the cost of further collection action
will exceed the amount recoverable thereby.
(d) Claim legally without merit. Collection action should be
terminated immediately on a claim whenever it is determined that the
claim is legally without merit.
(e) Claim cannot be substantiated by evidence. Collection action
should be terminated when it is determined that the evidence necessary
to prove the claim cannot be produced or the necessary witnesses are
unavailable and efforts to induce voluntary payment are unavailing.
04 CFR 104.4 Transfer of claims.
When an agency has doubt as to whether collection action should be
suspended or terminated on a claim, it may refer the claim to the
General Accounting Office for advice. When a significant enforcement
policy is involved in reducing a statutory penalty or forfeiture to
judgment, or recovery of a judgment is a prerequisite to the imposition
of administrative sanctions, such as the suspension or revocation of a
license or the privilege of participating in a Government sponsored
program, an agency may refer such a claim for litigation even though
termination of collection activity might otherwise be given
consideration under 104.3 (a) or (c). Claims on which an agency holds
a judgment by assignment or otherwise will be referred to the Department
of Justice for further action if renewal of the judgment lien or
enforced collection proceedings are justified under the criteria
discussed in this part, unless the agency concerned has statutory
authority for handling its own litigation.
04 CFR 104.4 PART 105 -- REFERRALS TO DEPARTMENT OF JUSTICE OR GAO
Sec.
105.1 Prompt referral.
105.2 Claims collection litigation report.
105.3 Preservation of evidence.
105.4 Minimum amount of referrals to Department of Justice.
105.5 Preliminary referrals to GAO.
Authority: 31 U.S.C. 3711.
Source: 49 FR 8904, Mar. 9, 1984, unless otherwise noted.
04 CFR 105.1 Prompt referral.
(a) Except as provided in paragraphs (b) and (c) of this section,
claims on which aggressive collection action has been taken in
accordance with part 102 of this chapter and which cannot be
compromised, or on which collection action cannot be suspended or
terminated, in accordance with parts 103 and 104 of this chapter, shall
be promptly referred to the Department of Justice for litigation.
Claims for which the gross original amount is over $100,000 shall be
referred to the Commercial Litigation Branch, Civil Division, Department
of Justice, Washington, D.C. 20530. Claims for which the gross original
amount is $100,000 or less shall be referred to the U.S. Attorney in
whose judicial district the debtor can be found. Referrals should be
made as early as possible, consistent with aggressive agency collection
action and the observance of the regulations contained in this chapter,
and in any event, well within the period for bringing a timely suit
against the debtor. Ordinarily, referrals should be made within one
year of the agency's final determination of the fact and the amount of
the debt.
(b) Claims arising from audit exceptions taken by the General
Accounting Office to payments made by agencies must be referred to the
General Accounting Office for review and approval prior to referral to
the Department of Justice for litigation, unless the agency concerned
has been granted an exception by the General Accounting Office.
(c) When the merits of the Government's claim, the amount owed on the
claim, or the propriety of acceptance of a proposed compromise,
suspension, or termination are in doubt, the agency concerned should
refer the matter to the General Accounting Office for resolution and
instructions prior to proceeding with collection action and/or referral
to the Department of Justice for litigation.
(d) Once a claim has been referred to GAO or to the Department of
Justice pursuant to this section, the referring agency shall refrain
from having any contact with the debtor and shall direct the debtor to
GAO or the Department of Justice, as appropriate, when questions
concerning the claim are raised by the debtor. GAO or the Department of
Justice, as appropriate, shall be immediately notified by the referring
agency of any payments which are received from the debtor subsequent to
referral of a claim under this section.
04 CFR 105.2 Claims collection litigation report.
(a) Unless an exception has been granted by the Department of Justice
in consultation with the General Accounting Office, the Claims
Collection Litigation Report (CCLR), which was officially implemented by
the General Accounting Office on January 20, 1983, shall be used with
all referrals of administratively uncollectible claims made pursuant to
105.1. As required by the CCLR, the following information shall be
included.
(1) Report of prior collection actions. A checklist or brief summary
of the actions previously taken to collect or compromise the claim will
be forwarded with the claim upon its referral. If any of the
administrative collection actions enumerated in part 102 of this chapter
have been omitted, the reason for their omission must be provided. GAO,
the U.S. Attorney, or the Civil Division of the Department of Justice
may return claims at their option when there is insufficient
justification for the omission of one or more of the administrative
collection actions enumerated in part 102 of this chapter.
(2) Current address of debtor. The current address of the debtor, or
the name and address of the agent for a corporation upon whom service
may be made shall be provided. Reasonable and appropriate steps will be
taken to locate missing parties in all cases. Referrals to the
Department of Justice for the institution of foreclosure or other
proceedings, in which the current address of any party is unknown, will
be accompanied by a listing of the prior known addresses of such party
and a statement of the steps taken to locate that party.
(3) Credit data. Reasonably current credit data indicating that
there is a reasonable prospect of effecting enforced collection from the
debtor, having due regard for the exemptions available to the debtor
under State and Federal law and the judicial remedies available to the
Government, shall be included.
(i) Such credit data may take the form of:
(A) A commercial credit report;
(B) An agency investigative report showing the debtor's assets,
liabilities, income, and expenses;
(C) The individual debtor's own financial statement executed under
penalty of perjury reflecting the debtor's assets, liabilities, income,
and expenses; or
(D) An audited balance sheet of a corporate debtor.
(ii) Such credit data may be omitted if:
(A) A surety bond is available in an amount sufficient to satisfy the
claim in full;
(B) The forced sale value of the security available for application
to the Government's claim is sufficient to satisfy the claim in full;
(C) The referring agency wishes to liquidate loan collateral through
judicial foreclosure but does not desire a deficiency judgment;
(D) The debtor is in bankruptcy or receivership;
(E) The debtor's liability to the Government is fully covered by
insurance, in which case the agency will furnish such information as it
can develop concerning the identity and address of the insurer and the
type and amount of insurance coverage; or
(F) The nature of the debtor is such that credit data is not normally
available or cannot reasonably be obtained, for example, a unit of State
or local government.
(b) Agencies shall also use the CCLR when referring claims to the
Department of Justice in order to obtain the approval of that Department
with respect to compromise, suspension, or termination, as required by
103.1(b) and 104.1(b).
04 CFR 105.3 Preservation of evidence.
Care will be taken to preserve all files, records, and exhibits on
claims referred or to be referred to the Department of Justice for
litigation. Under no circumstances should original documents be sent to
the Department of Justice or to the U.S. Attorney without specific prior
approval to do so. Copies of relevant documents should be sent whenever
necessary.
04 CFR 105.4 Minimum amount of referrals to Department of Justice.
Agencies will not refer claims of less than $600, exclusive of
interest, penalties, and administrative costs, for litigation unless:
(a) Referral is important to a significant enforcement policy, or (b)
the debtor not only has the clear ability to pay the claim but the
Government can effectively enforce payment, having due regard for the
exemptions available to the debtor under State and Federal law and the
judicial remedies available to the Government.
04 CFR 105.5 Preliminary referrals to GAO.
Preliminary referrals of claims to the General Accounting Office, as
required by 105.1(b) and (c), will be in accordance with instructions,
including monetary limitations, contained in the General Accounting
Office Policy and Procedures Manual for Guidance of Federal Agencies,
and the provisions of 105.2 and 105.3 of this part.
04 CFR 105.5 4 CFR Ch. III (1-1-92 Edition)
04 CFR 105.5 General Accounting Office (CASB)
04 CFR 105.5 CHAPTER III -- GENERAL ACCOUNTING OFFICE (CASB)
Editorial Note: For the benefit of CFR users, this edition of 4 CFR
chapter III includes a special feature, the preambles to parts 331, 332,
351, and 400-420 of the regulations of the Cost Accounting Standards
Board. The inclusion of the preambles is a joint effort by the Office
of the Federal Register and the Cost Accounting Standards Board to
provide readers with the administrative history of the regulations. The
preambles appear as originally published in the daily Federal Register,
in supplements to their respective parts. Further explanatory notes are
printed immediately after the table of contents to each part.
04 CFR 105.5 SUBCHAPTER A -- ADMINISTRATION
Part
Page
301 General information and organization
302 Responsibilities and conduct
303 Release of information
304 Delegations of authority
305 Cost Accounting Standards Board bylaws
04 CFR 105.5
04 CFR 105.5 SUBCHAPTER B -- (RESERVED)
04 CFR 105.5 SUBCHAPTER C -- PROCUREMENT PRACTICES
331 Contract coverage
332 Modified contract coverage
04 CFR 105.5
04 CFR 105.5 SUBCHAPTER D -- (RESERVED)
04 CFR 105.5 SUBCHAPTER E -- DISCLOSURE STATEMENT
351 Basic requirements
04 CFR 105.5
04 CFR 105.5 SUBCHAPTER F -- (RESERVED)
04 CFR 105.5 SUBCHAPTER G -- COST ACCOUNTING STANDARDS
400 Definitions
401 Cost accounting standard -- consistency in estimating,
accumulating and reporting costs
402 Cost accounting standard -- consistency in allocating costs
incurred for the same purpose.
403 Allocation of home office expenses to segments
404 Capitalization of tangible assets
405 Accounting for unallowable costs
406 Cost accounting standard -- cost accounting period
407 Use of standard costs for direct material and direct labor
408 Accounting for costs of compensated personal absence
409 Cost accounting standard -- depreciation of tangible capital
assets
410 Allocation of business unit general and administrative expenses
to final cost objectives
411 Cost accounting standard -- accounting for acquisition costs of
material
412 Cost accounting standard for composition and measurement of
pension cost
413 Adjustment and allocation of pension cost
414 Cost accounting standard -- cost of money as an element of the
cost of facilities capital
415 Accounting for the cost of deferred compensation
416 Accounting for insurance costs
417 Cost of money as an element of the cost of capital assets under
construction
418 Allocation of direct and indirect costs
420 Accounting for independent research and development costs and bid
and proposal costs
04 CFR 105.5
04 CFR 105.5 4 CFR Ch. III (1-1-92 Edition)
04 CFR 105.5 General Accounting Office (CASB)
04 CFR 105.5 SUBCHAPTER A -- ADMINISTRATION
04 CFR 105.5 PART 301 -- GENERAL INFORMATION AND ORGANIZATION
04 CFR 105.5 Subpart A -- Organization
Sec.
301.1 Purpose.
301.2 General statement of the Board's functions.
301.3 Methods.
301.4 Offices.
301.5 Views and comments.
301.6 Public hearings.
301.7 Formal submission.
301.8 Final publication.
301.9 Transmittal to the Congress.
301.10 Organization and delegation of authority.
301.11 Availability of information and materials.
Authority: Sec. 103, 84 Stat. 796; 50 U.S.C. App. 2168.
Source: 36 FR 23916, Dec. 16, 1971, unless otherwise noted.
04 CFR 105.5 Subpart A -- Organization
04 CFR 301.1 Purpose.
This part together with part 303, Release of Information, and part
304, Delegations, of this chapter is published in compliance with Pub.
L. 90-23, section (a)(1), 5 U.S.C. 552(a)(1), and constitutes a
description of the Cost Accounting Standards Board.
04 CFR 301.2 General statement of the Board's functions.
In general, the Board promulgates cost accounting standards designed
to achieve uniformity and consistency in the cost accounting practices
followed by defense contractors. It also promulgates rules and
regulations for the implementation of such standards.
04 CFR 301.3 Methods.
In carrying out its functions, the Cost Accounting Standards Board
utilizes the following methods.
(a) The Board employs a staff consisting of various specialists
dealing with particular areas of administrative and technical work, who
advise the Board and perform duties assigned to them or which have been
specifically delegated to them.
(b) Rules are published in the Federal Register and codified in this
Title 4 of the Code of Federal Regulations. These rules may be
inspected in the Board's offices or purchased from the Superintendent of
Documents, Government Printing Office. The published rules include:
(1) Procedural regulations which govern the formal and informal
methods whereby persons dealing with the Board can present information
to the Board to enable the Board to promulgate rules, regulations, and
cost accounting standards and to perform other duties for which it is
responsible under section 719 of the Defense Production Act of 1950, as
amended (50 U.S.C. App. 2168).
(2) Rules, regulations, and cost accounting standards which prescribe
for relevant Federal agencies and for defense contractors and
subcontractors various substantive and procedural requirements relating
to cost accounting standards for use in connection with defense
contracts.
(3) Regulations delegating matters to the Board's staff and
describing how the public may deal with the Board in obtaining
information.
(4) Board bylaws which govern Board membership, meetings, and formal
action by Board vote.
(c) The Board may at its discretion respond to requests for
interpretation of its rules, regulations, and cost accounting standards.
04 CFR 301.4 Offices.
The Cost Accounting Standards Board's offices are located in the
General Accounting Office Building, 441 G Street NW., Washington, DC
20548. The hours of business for the Board are 8:30 a.m. to 5 p.m.,
local time, Monday through Friday, excluding holidays observed by the
Federal Government in Washington, D.C.
04 CFR 301.5 Views and comments.
Proposed rules, regulations, or cost accounting standards of the Cost
Accounting Standards Board shall be published for comment in the Federal
Register. All parties affected thereby shall be afforded a period of
not less than 30 days in which to submit to the Board their views and
comments on the proposal; but in exceptional cases, the Board may
provide for fewer than 30 days for the submission of views and comments.
When fewer than 30 days are allowed, the Board notice inviting views
and comments shall state the reasons therefor.
04 CFR 301.6 Public hearings.
Public hearings to assist the Board in developing its rules,
regulations, and cost accounting standards may be held to the extent the
Board in its sole discretion deems desirable. Notices of such hearings
shall be given by publication in the Federal Register.
04 CFR 301.7 Formal submission.
All formal submissions required or permitted to be made to the Board
under the rules, regulations, or cost accounting standards should be
addressed to the Cost Accounting Standards Board, 441 G Street NW.,
Washington, DC 20548, in an original and two copies, unless otherwise
provided by the rule, regulation, or standard under which submission is
made. Where no form requirement is there specified, submission in
letter or other reasonable form will be accepted.
04 CFR 301.8 Final publication.
Any proposed rule, regulation, or cost accounting standard required
to be published under section 719(i)(A) of the Defense Production Act of
1950, as amended, 50 U.S.C. App. 2168(i)(A), shall be published in the
Federal Register after the Board has considered views and comments
submitted pursuant to 301.5 and any public hearing held pursuant to
301.6.
04 CFR 301.9 Transmittal to the Congress.
Transmittal to the Congress of any proposed rule, regulation, or cost
accounting standard as required by section 719(h)(3) of the Defense
Production Act of 1950, as amended, 50 U.S.C. App. 2168(h)(3), shall be
made simultaneously with final publication of the proposed rule,
regulation, or cost accounting standard as provided for in 301.8.
04 CFR 301.10 Organization and delegation of authority.
The Board, consisting of the Comptroller General of the United States
who is the Chairman and four Board members appointed by him for terms of
4 years, acts to carry out the duties and responsibilities of the Cost
Accounting Standards Board, established by Pub. L. 91-379, 84 Stat.
796, 50 U.S.C. App. 2166, 2168. The Board's staff of professional,
technical, and supporting personnel is directed and supervised by the
Executive Secretary. Delegations of authority to the Executive
Secretary and other staff members are described in detail in part 304 of
this title 4.
04 CFR 301.11 Availability of information and materials.
The Board publishes a regulation in 4 CFR part 303 concerning the
availability for inspection and copying of Board records. That
regulation states in detail what information is available, and what and
where records may be inspected. Generally speaking, the following
records are maintained and available.
(a) Minutes of Board meetings.
(b) Substantive regulations of general applicability and general
policy and interpretation of general applicability.
(c) Rules, regulations, and cost accounting standards issued pursuant
to section 719 of the Defense Production Act of 1950, as amended, 50
U.S.C. App. 2168.
(d) A record of every Board proceeding including the final votes of
each member of the Board participating in the proceeding.
04 CFR 301.11 PART 302 -- RESPONSIBILITIES AND CONDUCT
04 CFR 301.11 Subpart A -- General Provisions
Sec.
302.1 Purpose.
302.2 Definitions.
302.3 Interpretation and advisory service.
302.4 Compliance.
302.5 Disciplinary and other remedial actions.
302.6 Effecting disciplinary and remedial actions.
302.7 Release of information.
302.8 Distribution of regulation.
04 CFR 301.11 Subpart B -- Regulation Governing Ethical and Other
Conduct and Responsibilities of Board Members
302.11 General provisions.
04 CFR 301.11 Subpart C -- Regulation Governing Ethical and Other
Conduct and Responsibilities of Employees
302.21 General policy on conduct.
302.22 Proscribed actions.
302.23 Gifts, entertainment, and favors.
302.24 Permissible gifts, entertainment, and favors.
302.25 Gifts to superiors.
302.26 Gifts from foreign governments.
302.27 Reimbursement of travel and living expenses.
302.28 Indebtedness of employees.
302.29 Reports on indebtedness.
302.30 Gambling, betting, and lotteries.
302.31 Use of Government property.
302.32 Misuse of information.
302.33 Prohibited financial interests.
302.34 Bribery, graft, and conflicts of interest.
302.35 Conflicts resulting from assignments.
302.36 Disqualification procedure.
302.37 Nondisqualifying interests.
302.38 Outside employment and other activity.
302.39 Articles and speeches.
302.40 File of articles and speeches.
302.41 General conduct prejudicial to the Government.
302.42 Miscellaneous statutory provisions.
04 CFR 301.11 Subpart D -- Regulation Governing Ethical and Other
Conduct and Responsibilities of Special Government Employees
302.51 Use of Government employment.
302.52 Use of inside information.
302.53 Teaching, lecturing, and writing.
302.54 Coercion.
302.55 Gifts, entertainment, and favors.
302.56 Miscellaneous statutory provisions.
04 CFR 301.11 Subpart E -- Prohibited Activities by Former Employees
302.61 Prohibited activities.
04 CFR 301.11 Subpart F -- Regulation Governing Statements of
Employment and Financial Interests
302.71 Form and content of statements.
302.72 Requirement to submit statements.
302.73 Employees not required to submit statements.
302.74 Employee's complaint on filing requirement.
302.75 Where to submit statements.
302.76 When to submit statements.
302.77 Supplementary statements.
302.78 Interests of employees' relatives.
302.79 Information not known by employees.
302.80 Information not required.
302.81 Confidentiality of statements.
302.82 Review of statements by the Chairman.
302.83 Review of statements by the Executive Secretary.
302.84 Findings of no conflict of interest.
302.85 Findings of conflict of interest.
302.86 Effect of employees' statements on other requirements.
302.87 Specific provisions for special Government employees.
302.88 Waiver of statements from certain special Government
employees.
302.89 Time for submission of statements by special Government
employees.
302.90 Circumstances requiring statements from special Government
employees.
Authority: Sec. 103, 84 Stat. 796; 50 U.S.C. App. 2168.
Source: 36 FR 23917, Dec. 16, 1971, unless otherwise noted.
04 CFR 301.11 Subpart A -- General Provisions
04 CFR 302.1 Purpose.
The Government service requires the maintenance of unusually high
standards of honesty, integrity, impartiality, and conduct by Government
employees and special Government employees to assure the proper
performance of Government business and the maintenance of confidence by
citizens in their Government. This is especially true of service in the
Cost Accounting Standards Board because of the unique functions and
special trust placed upon the Board as an agent of the Congress. Board
members, employees, and special Government employees are, therefore,
expected and required to exercise informed judgments to avoid misconduct
and conflicts of interest and the appearance of conflicts of interest.
In accordance with these concepts, this regulation sets forth the
regulations and policies of the Cost Accounting Standards Board which
prescribe standards of conduct and responsibilities including guidance
on conflict of interest laws and the requirement for reporting
employment and financial interests for its Board members, employees, and
special Government employees.
04 CFR 302.2 Definitions.
In this regulation:
(a) Board means the Cost Accounting Standards Board, established by
section 719 of the Defense Production Act of 1950, as amended, added by
section 103 of Pub. L. 91-379, 84 Stat. 795.
(b) Chairman means the Comptroller General of the United States or,
in the event of the absence or incapacity of the Comptroller General or
during a vacancy in the office, the official of the General Accounting
Office acting as Comptroller General.
(c) Board member means the Chairman and a person appointed by him
pursuant to section 719(a) of Pub. L. 91-379.
(d) Executive Secretary means the employee appointed by the Board as
Executive Secretary pursuant to section 719(b) of Pub. L. 91-379, or in
the event of the absence or incapacity of the Executive Secretary or
during a vacancy in that position, the employee delegated or designated
to act as Executive Secretary.
(e) Employee means an officer or employee of the Board other than a
special Government employee.
(f) Special Government employee means an officer or employee who is
retained, designated, appointed, or employed to perform, with or without
compensation, for a period not to exceed 130 days during any period of
365 days, temporary duties for the Board either on a full-time or
intermittent basis (18 U.S.C. 202).
(g) Person means an individual, a corporation, a company, an
association, a firm, a partnership, a society, a joint stock company, or
any other organization or institution.
(h) Former employee means a former Board employee or former special
Government employee of the Board, as defined in paragraph (f) of this
section.
(i) Words importing the masculine gender include the feminine as
well, and words importing the plural include the singular.
04 CFR 302.3 Interpretation and advisory service.
The Executive Secretary, with the approval of the Chairman shall
designate a Counselor for the Board who shall be responsible for
providing counseling services and authoritative advice and guidance to
Board members, employees, and special Government employees who seek
advice and guidance from him on conflicts of interest questions.
04 CFR 302.4 Compliance.
(a) The Chairman shall be responsible for seeing to it that this
regulation is fully complied with and for issuing whatever supplementary
instructions are deemed desirable. Except as otherwise specifically
provided for in this regulation, any matter coming within the provisions
of this regulation arising in the Board will be referred immediately to
the Chairman for appropriate disposition.
(b) Employees of another agency of the Government who are detailed to
the Board for a period of time which is anticipated to equal or exceed 1
year shall submit a signed statement to the Executive Secretary that
they are conducting themselves in compliance with the standards, rules,
or regulations of conduct in force in their own detailing agency. Since
their own agency regulations cover similar subject matter, they will not
be required to comply with this regulation, except as to the necessity
for obtaining consent to certain outside activities including teaching,
speaking, and writing for publication (see 302.38(b)).
04 CFR 302.5 Disciplinary and other remedial actions.
(a) A violation of any part of this regulation by a Board member,
employee, or special Government employee may be cause for appropriate
disciplinary action which may be in addition to any penalty prescribed
by law.
(b) When, after consideration of the explanation of the employee or
special Government employee provided by 302.85, the Chairman decides
that remedial action is required, he shall take immediate steps to end
the conflict of interest or the appearance of conflict of interest.
Remedial action may include one or more of the following, but is not
limited to them:
(1) Changes in assigned duties;
(2) Divestment by the employee or special Government employee of his
conflicting interest;
(3) Disciplinary action;
(4) Disqualification for a particular assignment.
04 CFR 302.6 Effecting disciplinary and remedial actions.
Remedial action, whether disciplinary or otherwise, shall be effected
in accordance with applicable laws and regulations.
04 CFR 302.7 Release of information.
(a) The Board may from time to time publish or release statements of
practice and policy, as well as those matters required to be published,
or made available to the general public by 5 U.S.C. 552 and those
proposed and final standards, rules, and regulations required to be
published in the Federal Register by section 719 of Pub. L. 91-379.
(b) Proposals, working papers, staff papers, and similar writings
which have not been so published or made available to the general public
shall be considered as privileged internal Board matters, and no
publication of them or comments on them shall be made to the general
public, and no information relating to them shall be divulged to the
general public by any Board member, employee, or special Government
employee, without prior approval of the Chairman.
(c) The prohibition contained in this paragraph regarding premature
release or discussion of internal Board matters is not intended in any
way to prevent or hamper Board members, employees, or special Government
employees from correspondence or discussion of Board matters and
writings with others in the proper discharge of their duties. It is,
however, designed to facilitate confidential discussions within the
Board and to prevent disclosure of confidential or non-public
information. It is in addition to statutory prohibitions and other
provisions of this regulation (see 302.32, 302.33, 302.38, 302.52, and
302.53) covering use of information obtained as a result of membership
on or employment with the Board.
04 CFR 302.8 Distribution of regulation.
(a) A copy of this regulation shall be furnished each Board member,
employee, and special Government employee.
(b) Copies of pertinent laws and instructions relating to ethical and
other conduct will be made available in the Office of the General
Counsel of the Board, upon request by Board members, employees, and
special Government employees.
04 CFR 302.8 Subpart B -- Regulation Governing Ethical and Other Conduct and Responsibilities of Board Members
04 CFR 302.11 General provisions.
(a) A Board member who is also an officer or employee of an agency or
department in the legislative or executive branch of the U.S.
Government or of any independent agency of the United States or of the
District of Columbia is subject to the laws, regulations, and
requirements affecting that office or employment and shall be subject to
this regulation only to the extent that it establishes duties or
responsibilities relating particularly to service with the Cost
Accounting Standards Board.
(b) All other Board members are employees or special Government
employees as defined in 302.2. They are subject to the provisions of
this regulation as employees or as special Government employees, except
in those cases where a rule or requirement is stated herein as
applicable specifically to Board members. (See 302.5(a), 302.72(a),
302.75(a), and 302.82.)
04 CFR 302.11 Subpart C -- Regulation Governing Ethical and Other Conduct and Responsibilities of Employees
04 CFR 302.21 General policy on conduct.
The personal demeanor of employees of the Board is subject to the
closest public and official scrutiny; and as representatives of the
Board, employees are judged by their personal associates and activities
as well as by their official actions and conduct. In all their
dealings, employees of the Board shall so conduct themselves as to
permit no reasonable basis for suspicion of unethical conduct or
practices. The obligation to protect fully the interests of the
Government as a whole and the Board as an agency of the Congress,
demands the avoidance of circumstances which invite conflict between
self-interest and the integrity of employment with the Board. Loyalty
to the Board and its programs and purposes is a necessary attribute.
04 CFR 302.22 Proscribed actions.
An employee shall avoid any action, whether or not specifically
prohibited by this subpart, which might result in, or create the
appearance of:
(a) Using public office for private gain;
(b) Giving improper preferential treatment to any person;
(c) Impeding Government efficiency or economy;
(d) Losing complete independence or impartiality;
(e) Making a Government decision outside official channels; or
(f) Affecting adversely the confidence of the public in the integrity
of the Government or its operations.
04 CFR 302.23 Gifts, entertainment, and favors.
Except as provided in 302.24 and 302.27 of this subpart, an
employee shall not solicit or accept, directly or indirectly, any gift,
gratuity, favor, entertainment, loan, or any other thing of monetary
value, from a person who:
(a) Has, or is seeking to obtain, contractual or other business or
financial relations with the Federal Government;
(b) Conducts operations or activities that are subject to audit,
investigation, decision, or regulation by the Board;
(c) Has interests that may be substanatially affected by the
performance or nonperformance of the employee's official duty.
04 CFR 302.24 Permissible gifts, entertainment, and favors.
Despite the limitations established by 302.23 of this subpart, the
following exceptions are made:
(a) A gift, gratuity, favor, entertainment, loan, or other similar
favor of monetary value may be accepted by the employee when it or they
stem from a family or personal relationship, such as those between the
employee and his parents, children, or spouse, and when the
circumstances make it clear that it is those relationships rather than
the business of the persons concerned which are the motivating factors.
(b) Food and refreshments of nominal value may be accepted on
infrequent occasions in the ordinary course of a luncheon or dinner
meeting or other meeting or on an inspection tour where the employee may
properly be in attendance.
(c) Loans from banks and other financial institutions may be accepted
on customary terms to finance the proper and usual activities of
employees, such as home mortgage loans.
(d) Unsolicited advertising or promotional material, such as pens,
pencils, note pads, calendars, and other items of nominal value may be
accepted.
04 CFR 302.25 Gifts to superiors.
An employee shall not solicit a contribution from another employee
for a gift to an official superior, make a donation as a gift to an
official superior, or accept a gift presented as a contribution from an
employee receiving less pay than himself (5 U.S.C. 7351).
04 CFR 302.26 Gifts from foreign governments.
An employee shall not accept a gift, present, decoration, or other
thing from a foreign government unless authorized by Congress as
provided by the U.S. Constitution and in Pub. L. 89-673, 80 Stat. 952.
04 CFR 302.27 Reimbursement of travel and living expenses.
Neither 302.23 nor 302.38 of this subpart precludes an employee
from receipt of bona fide reimbursement, unless prohibited by law, for
expenses of travel and such other necessary subsistence as is compatible
with this subpart when not engaged on official business. However, this
paragraph does not allow an employee to be reimbursed, or payment to be
made on his behalf, for excessive personal living expenses, gifts,
entertainment, or other personal benefits. When traveling on official
business, no reimbursement may be accepted from private sources.
Note: Notwithstanding this paragraph, the requirements relating to
the acceptance of contributions and awards, travel, subsistence and
other expenses in section 4111(a), 5 U.S.C. and the regulations
thereunder in subpart G, part 410, Book III, Supplement 990-1, Federal
Personnel Manual, continue to apply.
04 CFR 302.28 Indebtedness of employees.
An employee shall pay each just financial obligation in a proper and
timely manner, especially one imposed by law such as Federal, State, or
local taxes. For the purposes of this paragraph, a ''just financial
obligation'' means one acknowledged by the employee or reduced to
judgment by a court, and ''in a proper and timely manner'' means in a
manner which the Board determines does not, in the circumstances,
reflect adversely on the Board as his employer. In the event of a
dispute between an employee and an alleged creditor, this paragraph does
not require the Board to determine the validity of the disputed debt.
04 CFR 302.29 Reports on indebtedness.
While the Board will not become a collection agency for private
creditors of an employee, each complaint of nonpayment of a debt will be
referred to the employee concerned and the employee will be requested to
report in writing as to what he proposes to do about the debt.
04 CFR 302.30 Gambling, betting, and lotteries.
An employee shall not participate, while on Government owned or
leased property or while on duty for the Government, in any gambling
activity including the operation of a gambling device, in conducting a
lottery or pool, in a game for money or property, or in selling or
purchasing a numbers slip or ticket.
04 CFR 302.31 Use of Government property.
An employee shall not directly or indirectly use, or allow the use
of, Government property of any kind, including property leased to the
Government, for other than officially approved activities. An employee
has a positive duty to protect and conserve Government property,
including equipment, supplies, and other property entrusted or issued to
him.
04 CFR 302.32 Misuse of information.
For the purpose of furthering a private interest, an employee shall
not, except as provided in section (b) of this subpart, directly or
indirectly use, or allow the use of, official information obtained
through or in connection with his Government employment which has not
been made available to the general public.
04 CFR 302.33 Prohibited financial interests.
An employee shall not:
(a) Have a direct or indirect financial interest that conflicts
substantially or appears to conflict substantially with his Government
duties and responsibilities.
(b) Engage in, directly or indirectly, a financial transaction as a
result of, or primarily relying on, information obtained through his
Government employment.
04 CFR 302.34 Bribery, graft, and conflicts of interest.
An employee shall not engage in acts prohibited by Chapter 11 of
Title 18, United States Code, relating to bribery, graft, and conflicts
of interest as appropriate to the employee concerned. Three of the more
important ''conflict of interest'' provisions are summarized as follows:
(a) An employee may not, except as provided by law for the proper
discharge of his official duties, receive, agree to receive, ask, or
seek any compensation for services by him or another in connection with
any proceeding, request for a ruling, or other determination before any
Government agency or officer in which the United States is a party or
has a direct and substantial interest (18 U.S.C. 203).
(b) An employee may not, except in the discharge of his official
duties, represent anyone else (with or without compensation) before a
court or Government agency in a matter in which the United States is a
party or has a direct or substantial interest (18 U.S.C. 205).
(c) An employee shall not receive any salary or anything of monetary
value from a private source as compensation for his services to the
Government (18 U.S.C. 209).
04 CFR 302.35 Conflicts resulting from assignments.
An employee will not participate in any audit, investigation, survey,
examination, ruling, decision or determination, contract, claim,
controversy, or other matter before the Board in which he, his spouse,
minor child, partner, organization in which he is serving as officer,
director, trustee, partner or employee, or any person or organization
with whom he is negotiating or has any arrangement concerning
prospective employment, has a financial interest, with the following
exceptions:
(a) The employee need not disqualify himself if his financial
holdings are in shares of widely held diversified mutual funds or
regulated investment companies in which he does not serve as director,
officer, partner, or advisor. The indirect interest in business
entities which the holder of shares in a widely diversified mutual fund
or regulated investment company of stocks in business entities is hereby
exempted from the provisions of 18 U.S.C. 208(a) in accordance with the
provisions of 18 U.S.C. 208(b)(2) as being too remote or inconsequential
to affect the integrity of the employee's services.
(b) If the employee first informs the Chairman through the Executive
Secretary, in writing, of the nature and circumstances of the audit,
investigation, survey, examination, ruling, decision or determination,
contract, claim, controversy, or other matter in which he is
participating and makes full disclosure of the financial interest and
receives in advance a written determination made by the Chairman that
the interest is not so substantial as to be deemed likely to affect the
integrity of the employee's services, the employee need not consider
himself disqualified (18 U.S.C. 208(b)).
04 CFR 302.36 Disqualification procedure.
Where the employee, his spouse, minor child, partner, organization in
which he is serving as officer, director, trustee, partner or employee,
or any person with whom he is negotiating or has an arrangement
concerning prospective employment, has a financial interest in any
matter in which he is participating as part of his official duties, he
will so inform the Chairman through the Executive Secretary, in writing,
and he will thereupon be relieved of his duties and responsibilities in
that particular matter unless the Executive Secretary, after
consultation with and the approval of the Chairman finds that pursuant
to 302.35(b) of this subpart, the interest is too remote or too
inconsequential to affect the integrity of the employee's services, in
which case the Chairman will so notify the employee in writing. In
cases of disqualification of the employee, the assignment of the
employee will be changed, or the matter will be reassigned to another
employee. A memorandum of disqualification will be made and forwarded
by the Chairman to the employee with copies to the Executive Secretary
and the Counselor for the Board.
04 CFR 302.37 Nondisqualifying interests.
This subpart does not preclude an employee from having a financial
interest or engaging in financial transactions to the same extent as a
private citizen not employed by the Government so long as it is not
prohibited by applicable law or regulations.
04 CFR 302.38 Outside employment and other activity.
(a) An employee shall not engage in outside employment or other
outside activity not compatible with the full and proper discharge of
the duties and responsibilities of his Government employment.
Incompatible activities include but are not limited to:
(1) Acceptance of a fee, compensation, gift, payment of expense, or
any other thing of monetary value in circumstances in which acceptance
may result in, or create the appearance of, a conflict of interest;
(2) Outside employment which tends to impair his mental or physical
capacity to perform his Government duties and responsibilities in an
acceptable manner.
(b) Employees may (subject to the provisions of paragraph (c)(3) of
this section) engage in teaching, lecturing, and writing that is not
prohibited by law or these regulations. An employee shall not, however,
either for or without compensation, engage in teaching, lecturing, or
writing, including teaching, lecturing, or writing for the purpose of
the special preparation of a person or class of persons for an
examination of the Civil Service Commission or Board of Examiners for
the foreign service, that depends on information obtained as a result of
his Government employment, except when that information has been made
available to the general public or will be made available on request, or
when the Chairman gives written authorization for the use of nonpublic
information on the basis that such use is in the public interest.
(c) This paragraph does not preclude an employee from:
(1) Participation in the activities of national or State political
parties not precluded by law;
(2) Participation in the affairs of or acceptance of an award for a
meritorious public contribution or achievement given by a charitable,
religious, professional, social, fraternal, nonprofit, educational and
recreational, public service, or civic organization;
(3) Outside employment when permission has been granted in advance by
the Executive Secretary or his designee, and the employee has been
notified in writing of the approval. This permission will be granted in
accordance with the following policies, procedures, and limitations:
(i) In considering requests for outside employment, the following
criteria will be applied -- the provisions of applicable law, the
regulations and policies incorporated in this subpart including the
possibility of conflicts of interest, the general attendance record of
the employee, the nature of his official duties in relation to the
nature of the duties which will comprise the outside employment; the
financial need or other justification for such outside employment, and
the hours of work required by the outside employment;
(ii) An employee will request permission to engage in outside
employment by executing, in full, GAO Form 256 (Rev. 10/67) and
forwarding it through his immediate supervisor to the Executive
Secretary or his designee;
(iii) The Executive Secretary or his designee will, upon receipt of a
fully executed GAO Form 256 (Rev. 10/67), evaluate the request in light
of existing law and policies and regulations;
(iv) The Executive Secretary or his designee will officially approve
or disapprove the request, and the employee will be notified. If the
action taken on the request is not agreed to by the employee, the
request and all recommendations will be submitted to the chairman for
ultimate determination. The chairman will thereupon consider the entire
record, make the final determination, and cause the employee to be
notified;
(v) Grants of permission to engage in outside employment will
normally expire 3 calendar years from the date of last issue, unless
sooner revoked or modified. Permission to engage in outside employment
which is about to expire will be considered for renewal upon receipt of
a request on GAO Form 256 (Rev. 10/67). Procedures for renewal will be
the same as those for original application and should be made, if
continuity of permission is desired, from 30 to 60 days before the
expiration of current permission;
(vi) Permission to engage in outside employment extends only to the
specific employment described in the request considered. New requests
must be made in writing in accordance with these procedures to cover any
changes or modifications in outside employment;
(vii) An employee with permission to engage in outside employment
will not hold himself out to the public as an attorney or accountant by
such means as:
(a) Placing his name on an office door,
(b) Having his name listed in the classified section of the telephone
directory, or
(c) Using business stationery with his name on letterheads or
envelopes.
(viii) Permission to engage in outside employment will not be granted
for the purpose of representing clients in court or before Government
agencies except in rare cases when permission may be granted for
specific appearances;
(ix) An employee may be permitted to engage in income tax work and to
sign income tax returns as a preparer, provided:
(a) The taxpayer has no Government contracts and has no business with
the U.S. Government,
(b) The employee does not in any manner intercede with or appear for
the taxpayer before the Internal Revenue Service, the courts, or other
Government body.
(x) An employee may not use his employment with the Board as a means
of soliciting or obtaining outside employment;
(xi) An employee may not engage in outside employment while he is on
sick leave from his duties. Deviations from this policy may be
permitted in rare instances when prior approval is obtained from the
Executive Secretary;
(xii) Employees in grades equivalent to GS-13 and higher will not,
normally, be given permission to engage in outside employment.
Exceptions will be made for good and sufficient reasons, such as where a
critical need exists for additional income by the employee or where the
employment is found to be in the public interest in terms of opportunity
for valuable experience beneficial both to the employee and to the
Board. Each request for an exception under this paragraph shall be in
sufficient detail to permit a judgment that it is merited. If an
exception is made for employees in grades equivalent to GS-13 and
higher, permission will be granted for 1-year intervals.
04 CFR 302.39 Articles and speeches.
Employees who prepare, with or without compensation, articles for
publication and speeches for delivery shall submit drafts thereof to the
Executive Secretary or his designee prior to publication or delivery
when:
(a) Any reference is made or to be made to the employee's employment
by the Board.
(b) The subject of the article or speech concerns the work of the
Board.
04 CFR 302.40 File of articles and speeches.
The Board Library will maintain a permanent file of all published
articles and speeches by employees of the Board. In order that this
file be complete and current each employee who has had an article
published or has made a speech shall send two copies thereof to the
library.
04 CFR 302.41 General conduct prejudicial to the Government.
An employee shall not engage in criminal, infamous, immoral, or
notorious disgraceful conduct, or other conduct prejudicial to the
Government, nor shall he conduct himself in such a manner as to give
rise to a reasonable belief that he is engaging in criminal, infamous,
immoral, or notorious disgraceful conduct.
04 CFR 302.42 Miscellaneous statutory provisions.
Each employee will acquaint himself with each statute that relates to
his ethical and other conduct as an employee of the Board with
particular reference to the following:
(a) House Concurrent Resolution 175, 85th Congress, second session,
72 Stat. B12, the ''Code of Ethics for Government Service.''
(b) Chapter 11 of Title 18, United States Code, relating to bribery,
graft, and conflicts of interest, as appropriate to the employees
concerned.
(c) The prohibition against lobbying with appropriated funds (18
U.S.C. 1913).
(d) The prohibitions against disloyalty and striking (5 U.S.C. 7311,
18 U.S.C. 1918).
(e) The prohibition against the employment of a member of a Communist
organization (50 U.S.C. 784).
(f) The prohibitions against (1) the disclosure of classified
information (18 U.S.C. 798, 50 U.S.C. 783); and (2) the disclosure of
confidential information (18 U.S.C. 1905).
(g) The provision relating to the habitual use of intoxicants to
excess (5 U.S.C. 7352).
(h) The prohibition against the misuse of a Government vehicle (31
U.S.C. 638a(c)).
(i) The prohibition against the misuse of the franking privilege (18
U.S.C. 1719).
(j) The prohibition against interference with civil service
examinations (18 U.S.C. 1917).
(k) The prohibition against fraud or false statement in a Government
matter (18 U.S.C. 1001).
(l) The prohibition against mutilating or destroying a public record
(18 U.S.C. 2071).
(m) The prohibition against counterfeiting and forging transportation
requests (18 U.S.C. 508).
(n) The prohibitions against (1) embezzlement of Government money or
property (18 U.S.C. 641); (2) failing to account for public money (18
U.S.C. 643); and (3) embezzlement of the money or property of another
person in the possession of an employee by reason of his employment (18
U.S.C. 654).
(o) The prohibition against unauthorized use of documents relating to
claims from or by the Government.
(p) The prohibition against proscribed political activities -- in
Subchapter III of Chapter 73 of Title 5, United States Code, and 18
U.S.C. 602, 603, 607, and 608.
(q) The prohibition against an employee acting as the agent of a
foreign principal registered under the Foreign Agents Registration Act
(18 U.S.C. 219).
Excerpts from the more important statutes of general applicability
are quoted in Appendix A to Comptroller General's Order No. 1.21.
04 CFR 302.42 Subpart D -- Regulation Governing Ethical and Other Conduct and Responsibilities of Special Government Employees
04 CFR 302.51 Use of Government employment.
A special Government employee shall not use his Government employment
for a purpose that is, or gives the appearance of being, motivated by
the desire for private gain for himself or another person, particularly
one with whom he has family, business, or financial ties.
04 CFR 302.52 Use of inside information.
A special Government employee shall not use inside information
obtained as a result of his Government employment for private gain for
himself or another person either by direct action on his part or by
counsel, recommendation, or suggestion to another person, particularly
one with whom he has family, business, or financial ties. For the
purposes of this paragraph, ''inside information'' means information
obtained by reason of his Government employment which has not been made
available to the general public.
04 CFR 302.53 Teaching, lecturing, and writing.
A special Government employee may, without prior approval, teach,
lecture, or write in a manner not otherwise inconsistent with 302.32
and 302.38 of subpart C of this regulation.
04 CFR 302.54 Coercion.
A special Government employee shall not use his Government employment
to coerce, or give the appearance of coercing, a person to provide
financial benefit to himself or another person, particularly one with
whom he has family, business, or financial ties.
04 CFR 302.55 Gifts, entertainment, and favors.
Except as provided in 302.24 of subpart C of this regulation (as in
the case of employees), a special Government employee, while so employed
or in connection with his employment, shall not receive or solicit,
either for himself or another person, particularly one with whom he has
family, business, or financial ties, anything of value as a gift,
gratuity, loan, entertainment, or favor from a person who:
(a) Has, or is seeking to obtain, contractual or other business or
financial relations with the Board.
(b) Has an interest that may be substantially affected by the
performance or nonperformance of his official duties.
04 CFR 302.56 Miscellaneous statutory provisions.
Each special Government employee shall acquaint himself with each
statute that relates to his ethical and other conduct as a special
Government employee of the Board and the Government with particular
reference to the statutes cited in 302.42 of subpart C of this
regulation and the following:
(a) A special Government employee may not, otherwise than as provided
by law for the proper discharge of his official duties, receive or agree
to receive, or solicit any compensation for any services by himself or
another, and may not, except in the proper discharge of his duties,
represent or assist anyone, with or without compensation, before a
department, agency, court, court-martial, officer, or any civil,
military, or naval commission, in connection with a particular matter in
which the United States is a party or has a direct or substantial
interest: Provided, however, That these restrictions apply to a special
Government employee only in relation to a particular matter involving a
specific party or parties:
(1) In which he has at any time participated personally and
substantially as a Government employee or special Government employee
through decision, approval, disapproval, recommendation, the rendering
of advice, investigation, or otherwise; or
(2) Which is pending in the department or agency of the Government in
which he is serving, except that this provision ( 302.56(a)(2) of this
subpart) shall not apply when he has served in such department or agency
no more than 60 days during the immediately preceding period of 365
days. He is bound by the restraint of this provision despite the fact
that the matter is not one in which he has ever participated personally
and substantially (18 U.S.C. 203, 205).
(b) A special Government employee shall not participate in his
governmental capacity in any matter in which to his knowledge he, his
spouse, minor child, partner, organization in which he is serving as
officer, director, trustee, partner or employee, or any person or
organization with whom he is negotiating or has any arrangement
concerning prospective employment, has a financial interest (18 U.S.C.
208).
(c) After his Government employment has ended, a special Government
employee is subject to the prohibition pertaining to a ''former
employee'' in matters connected with his former duties (18 U.S.C.
202(a), 207).
(d) To the extent that the conflict of interest statutes apply to a
special Government employee, they apply to his activities on all days
during the period of his appointment to the Board, beginning with the
date on which he takes an oath of office as a Government employee,
whether he works on a full-time or intermittent basis. Similarly, the
ethical standards prescribed in this subpart apply to the special
Government employee during the full period of his appointment as an
employee, and not merely on the days on which he performs services as an
employee.
04 CFR 302.56 Subpart E -- Prohibited Activities by Former Employees
04 CFR 302.61 Prohibited activities.
A former employee shall not:
(a) At any time after his Government employment has ended, knowingly
represent anyone other than the United States in connection with a
matter in which the United States is a party or has an interest and in
which he participated personally and substantially for the Government
(18 U.S.C. 207(a)).
(b) For 1 year after his Government employment has ended, appear
personally before any court or Government agency as agent or attorney
for anyone other than the Government in connection with a matter in
which the Government is a party or has a substantial interest and which
was under his official responsibility as an employee of the Government
at any time during the last year of his Government employment (18 U.S.C.
202(b) and 207(b)).
04 CFR 302.61 Subpart F -- Regulation Governing Statements of Employment and Financial Interests
04 CFR 302.71 Form and content of statements.
(a) The statements of employment and financial interests required to
be submitted by this subpart shall contain, as a minimum, the
information required by GAO Form 310 (Rev. 9/67) and GAO Form 311 (Rev.
9/67), respectively.
(b) The submission of a statement of employment and financial
interests is not intended to relieve the employee from complying with
other applicable provisions of law or this regulation. In particular,
the employee is not thereby permitted to participate in a matter where
such participation is prohibited by 18 U.S.C. 208.
04 CFR 302.72 Requirement to submit statements.
Except as otherwise provided in this regulation, statements of
employment and financial interests (GAO Form 310, Rev. 9/67) will be
required from the following:
(a) Board members and the Executive Secretary and any staff assistant
to a Board member. Any Board member filing equivalent statements of
employment and financial interests in connection with his employment at
another Federal agency shall not be required to submit this information
in connection with employment at the Board.
(b) Employees in positions equivalent to grades GS-14 or above under
the Federal Employees Classification Act.
(c) Special Government employees, subject to the provisions of
302.87-302.90, inclusive, of this subpart.
04 CFR 302.73 Employees not required to submit statements.
Employees in positions equivalent to grades GS-13 and below under the
Federal Employees Classification Act are excluded from the reporting
requirement of 302.72 of this subpart. The likelihood of their
involvement in a conflicts-of-interest situation is remote or the degree
of supervision over them and the review of their work is such that the
integrity of the Government is protected. This paragraph does not in
any way modify or limit any employee's responsibilities under
302.33-302.36, inclusive, of subpart C of this regulation.
04 CFR 302.74 Employee's complaint on filing requirement.
An employee who feels that his position has been improperly included
by this subpart as one requiring the submission of a statement of
employment and financial interests may obtain a review of that
requirement by filing a grievance with the Chairman.
04 CFR 302.75 Where to submit statements.
(a) The Chairman will file a statement of employment and financial
interests (GAO Form 310) with the Director, Office of Personnel
Management, General Accounting Office, who will retain it. The other
Board members, the Executive Secretary and staff assistants will file a
statement of employment and financial interests (GAO Form 310) with the
Chairman.
(b) Employees required to submit a statement of employment and
financial interests will submit their statements (GAO Form 310) to the
Executive Secretary.
04 CFR 302.76 When to submit statements.
Each employee required to submit a statement of employment and
financial interests shall submit that statement to the appropriate
officer designated in 302.75 of this subpart.
(a) Ninety days after the effective date of this regulation, if
employed on or before that effective date (unless the employee has
already submitted a statement as required by this regulation and that
statement continues to be accurate).
(b) Thirty days after his entrance on duty in or after his promotion
to a position subject to this subpart.
04 CFR 302.77 Supplementary statements.
Changes in, or additions to, the information contained in an
employee's statement of employment and financial interests shall be
reported in a supplementary statement as of June 30 of each year in
which the changes occur. If no changes or additions occur, a negative
report is required. Notwithstanding the filing of the annual report
required by this paragraph, each employee shall at all times avoid
acquiring a financial interest that could result in taking an action
that would result in a violation of the conflicts-of-interest provisions
of section 208 of Title 18, United States Code, or subparts C and D of
this regulation.
04 CFR 302.78 Interests of employees' relatives.
The interest of a spouse, minor child, or other member of an
employee's immediate household is considered to be an interest of the
employee. For the purpose of this paragraph, ''member of an employee's
immediate household'' means those relatives by blood who are residents
of the employee's household.
04 CFR 302.79 Information not known by employees.
If any information required to be included on a statement of
employment and financial interests or supplementary statement, including
holdings placed in trust, is not known to the employee but is known to
another person, the employee shall request that other person to submit
information in his behalf.
04 CFR 302.80 Information not required.
(a) This regulation does not require an employee to submit on a
statement of employment and financial interests or supplementary
statement any information relating to the employee's connection with, or
interest in, a professional society or a charitable, religious, social,
fraternal, recreational, public service, civic, or political
organization or a similar organization not conducted as a business
enterprise. For the purpose of this paragraph, education and other
institutions doing research and development or related work involving
grants of money from or contracts with the Government are deemed
''business enterprises'' and are required to be included in an
employee's statement of employment and financial interests.
(b) An employee need not report on his statement of employment and
financial interests shares of widely held, diversified mutual funds or
regulated investment companies in which he does not serve as director,
officer, partner, or advisor. The indirect interest in business
entities which the holder of shares in a widely diversified mutual fund
or regulated investment company derives from ownership by the fund of
investment company of stocks in business entities is considered too
remote or inconsequential to affect the integrity of the employee's
services.
04 CFR 302.81 Confidentiality of statements.
Statements of employment and financial interests and supplementary
statements shall be retained in a confidential file secured in an
appropriate manner by the Chairman or the Executive Secretary. No
persons other than the Chairman or the Executive Secretary, as to
employees or special Government employees under his direction, or the
Counselor for the Board shall have access to such statements and then
only to carry out the purposes of this regulation. No disclosure of
information shall be made from such statements except as specifically
authorized by the Chairman for good cause shown.
04 CFR 302.82 Review of statements by the Chairman.
The Chairman and the Counselor for the Board, if requested to do so
by the Chairman, will review each statement of employment and financial
interests and each supplementary statement submitted directly to the
Chairman by reason of 302.75(a) of this subpart, as well as all
relevant information from other sources incident thereto to determine
whether there are any conflicts of interest or apparent conflicts of
interest. Where no conflicts of interest or apparent conflicts of
interest are found, the cases will be considered resolved unless other
pertinent information becomes available. If questions of conflicts of
interest or apparent conflicts of interest arise, pertinent procedures
established for employees and special Government employees elsewhere in
this regulation will be followed.
04 CFR 302.83 Review of statements by the Executive Secretary.
The Executive Secretary, for other employees or special Government
employees, together with the Counselor for the Board, will review each
statement of employment and financial interests, each supplementary
statement, and all relevant information from other sources, if any, to
determine whether there are any conflicts of interest or apparent
conflicts of interest on the part of the employee or special Government
employee submitting the statement. If it is pertinent to a
conflict-of-interest decision, the Executive Secretary may request the
employee or special Government employee to supplement the information on
GAO Form 310 or GAO Form 311 by stating the number or amount of shares,
stock options, bonds, and other securities owned by him, his spouse,
minor child, or other members of his immediate household.
04 CFR 302.84 Findings of no conflict of interest.
If the Executive Secretary believes that there are no conflicts of
interest or apparent conflicts of interest in individual cases, the
matter will be considered resolved unless other information on the case
becomes available or circumstances change.
04 CFR 302.85 Findings of conflict of interest.
With respect to statements of employment and financial interests
reviewed by the Executive Secretary under 302.83 of this subpart, when
the Executive Secretary or the Counselor for the Board believes that the
statement or information from other sources discloses a conflict of
interest or an apparent conflict of interest, the employee or special
Government employee concerned will be asked to explain the conflict or
appearance of conflict. If his explanation is satisfactory, the case
will be considered closed unless further information or changed
circumstances reactivate it. If there is believed to be a conflict or
apparent conflict of interest on the part of the employee or special
Government employee, a report will be made of the case to the Chairman
for final disposition. This report will contain the views of the
Executive Secretary and those of the Counselor for the Board, will point
out specifically the areas of conflict or apparent conflict and the
reasons why it is felt that a conflict or apparent conflict exists or
does not exist, and will be signed by both these officials. The report
will also contain a summary of the employee's explanation signed by him.
The Chairman will then consider the matter, afford the employee or
special Government employee concerned an opportunity to explain the
conflict or apparent conflict, make a final decision, and take
appropriate action in accordance with 302.5(b) and 302.6 of subpart A.
04 CFR 302.86 Effect of employees' statements on other requirements.
The statement of employment and financial interests and supplementary
statements required of employees are in addition to, and not in
substitution for, or in derogation of, any similar requirement imposed
by law, order, or regulation. The submission of a statement of
employment and financial interests or supplementary statement by an
employee does not permit him or any other person to participate in a
matter in which his or the other person's participation is prohibited by
law, order, or regulation.
04 CFR 302.87 Specific provisions for special Government employees.
Except as provided in 302.88 of this subpart, each special
Government employee, by the use of GAO Form 211 (Rev. 9/67), shall
submit a statement of employment and financial interests which reports:
(a) All other employment; and
(b) The financial interests of the special Government employee as
indicated on GAO Form 311. A special Government employee need not
report financial interests in widely held, diversified mutual funds or
regulated investment companies in which he does not serve as director,
officer, partner, or advisor.
04 CFR 302.88 Waiver of statements from certain special Government
employees.
(a) The provisions of 302.87 of this subpart are waived for special
Government employees who are employed for the purpose of rendering
advice, counsel, or expert services on recruiting and staff development
including CPA review courses, because such employment is of a nature and
at such a level of responsibility that any financial interests that they
may have would be too remote to affect the integrity of their services
to the Board and the submission of statements would be unnecessary.
(b) In addition, the Chairman may waive the requirement of 302.87 of
this subpart for the submission of a statement of employment and
financial interests in the case of a special Government employee when he
finds that the duties performed by that special Government employee are
of a nature and at such level of responsibility that the submission of
the statement by the special Government employee is not necessary to
protect the integrity of the Board.
04 CFR 302.89 Time for submission of statements by special Government
employees.
A statement of employment and financial interests required to be
submitted under 302.87 of this subpart shall be submitted not later
than the time of employment of the special Government employee. Each
special Government employee shall keep his statement current throughout
his employment with the Board by submission of supplementary statements
contained in his statement of employment and financial interests every
90 days after his appointment until he is no longer subject to 302.87
of this subpart. Upon reappointment immediately following separation,
the special Government employee shall file a new statement or certify
that the latest statement on file is currently correct, whichever is
proper.
04 CFR 302.90 Circumstances requiring statements from special
Government employees.
In all cases where the employment of a special Government employee to
work on a specific audit, accounting, legal, or other problem is
contemplated, or where a special Government employee already employed to
render advice, counsel, or expert services on recruitment and staff
development is to be assigned work on a specific audit, legal, or other
problem, procedures outlined in 302.83, 302.87, and 302.89 will be
followed.
04 CFR 302.90 PART 303 -- RELEASE OF INFORMATION
Sec.
303.1 Purpose.
303.2 Records covered.
303.3 Exempted records.
303.4 Time and place where records may be inspected or copied.
303.5 Fees for copying.
303.6 Procedure for requesting records.
303.7 Production of board records.
303.8 Use of records.
303.9 Refusal to make record available.
Authority: Sec. 103, 84 Stat. 796; 50 U.S.C. App. 2168 and 81
Stat. 54; 5 U.S.C. 552.
Source: 36 FR 23923, Dec. 16, 1971, unless otherwise noted.
04 CFR 303.1 Purpose.
This regulation describes the manner in which records of the Cost
Accounting Standards Board shall be available for public inspection and
copying.
04 CFR 303.2 Records covered.
(a) As used herein, Board records include all interpretations,
opinions, orders, manuals, papers, files, letters, memoranda, studies,
reports, information, or other documentary materials in being other than
documentary materials which are in the possession of the Board but which
are records of another Government agency. Not included within Board
''records'' are objects, equipment, and other nondocumentary materials.
04 CFR 303.3 Exempted records.
As used herein, exempted records include those Board records which,
pursuant to 5 U.S.C. 552(b) or other applicable law or regulation, are
not required to be made available generally for inspection or copying.
Notwithstanding the fact that the Board is not required to do so, an
exempted record may be made available when the Board in its discretion
determines that such action is appropriate.
04 CFR 303.4 Time and place where records may be inspected or copied.
Records may be inspected and copied at the Board's offices, General
Accounting Office Building, 441 G Street, NW., Washington, DC during the
Board's normal business hours, 8:30 a.m. to 5 p.m., local time, Monday
through Friday, excluding holidays observed by the Federal Government in
Washington, D.C.
04 CFR 303.5 Fees for copying.
(a) The fee for searching for and duplicating Board records shall be
$5.00 for each full hour of time required. No charge will be made for
fractions of an hour.
(b) Any inquiry that appears to involve a total of more than 10 hours
of search and duplication time will not be regarded as a request for
information under this part 303 unless this part is specifically cited
or the inquirer specifically agrees to accept costs necessary to cover
the estimated number of hours involved.
(c) Notwithstanding the foregoing, no charge or a reduced charge will
be made whenever the Executive Secretary of the Cost Accounting
Standards Board determines that a waiver or reduction of the fee is in
the public interest because furnishing the information can be considered
as primarily benefiting the general public.
(40 FR 18541, Apr. 29, 1975)
04 CFR 303.6 Procedure for requesting records.
(a) A request to inspect or copy, or have copied, the Board's records
may be made in person, by telephone, or in writing.
(b) Requests for records shall be specific and must identify the
precise records or materials which are desired by name, date, number, or
other identifying data sufficient to allow the Board's staff to locate,
retrieve, and prepare the record for inspection or copying and to delete
exempted matter where appropriate. Blanket or generalized requests need
not be honored, and may be returned to the person making the request.
04 CFR 303.7 Production of board records.
Every effort will be made to respond to requests with reasonable
dispatch. Requests for the same record will be filled on a first-come,
first-served basis, but use of a document by the Board or its staff will
be given precedence over any request pursuant to this 303.7.
04 CFR 303.8 Use of records.
(a) If a person requesting a record cannot view it at the Board's
offices during normal business hours, he may ask to have the record
copied and mailed to him for which he will be charged the appropriate
fee.
(b) Any record which is available for inspection at the Board's
offices may be copied.
(c) Under no circumstances may records be removed from the Board's
offices.
04 CFR 303.9 Refusal to make record available.
(a) Where the material requested is not in being, is not a record, is
an exempted record, or is otherwise unavailable, the request will be
denied. The person making the request will be informed within 10
working days after receipt of the request for the material of the denial
and the reason therefor.
(b) Not more than 20 days after a request for a record is denied
pursuant to paragraph (a) of this section, the person making the request
may appeal the denial to the Chairman, Cost Accounting Standards Board,
who will make determinations on such appeals. The appeal shall be by
letter, and shall identify the material requested and denied in the same
manner as it was identified in the initial request; shall indicate the
dates of the request and denial; and shall indicate the expressed basis
for the denial. In addition, the letter of appeal shall state briefly
and succinctly the reasons why the record should be made available.
(c) The Chairman may consult with others in making his determination,
and shall by letter inform the requester, within 20 business days after
receipt of the appeal, whether the requested material will be made
available in whole or in part. If the request is denied in whole or in
part, the basis for denial will be stated.
(40 FR 18541, Apr. 29, 1975)
04 CFR 303.9 PART 304 -- DELEGATIONS OF AUTHORITY
Sec.
304.1 Purpose.
304.2 Contracting authority.
304.3 Waivers and exemptions.
304.4 Fees for copying records.
Authority: Sec. 103, 84 Stat. 796; 50 U.S.C. App. 2168.
04 CFR 304.1 Purpose.
This part publishes all delegations of authority by the Board, except
delegations dealing with internal administrative matters which do not
affect the public.
(36 FR 23924, Dec. 16, 1971)
04 CFR 304.2 Contracting authority.
(a) The Cost Accounting Standards Board hereby delegates to the
Executive Secretary of the Board authority to enter into, administer,
and settle contracts in furtherance of the Board's duties and
responsibilities and designates the Executive Secretary as Contracting
Officer of the Cost Accounting Standards Board.
(b) This authority, including authority to designate successor
contracting officers, may be redelegated.
(c) This delegation is effective the date hereof and until revoked.
(36 FR 23924, Dec. 16, 1971)
04 CFR 304.3 Waivers and exemptions.
(a) The Cost Accounting Standards Board hereby delegates to the
Executive Secretary of the Board, acting in consultation with the
Chairman of the Board, authority to exercise the Board's authority under
331.3(c) of the Board's Contract Coverage (4 CFR 331.3(c)) of its rules
and regulations, providing the Executive Secretary concludes that a
request for an exemption or waiver submitted pursuant to that 331.3(c)
must be acted on before he can obtain the required number of opinions of
the members of the Cost Accounting Standards Board on that request.
(b) This authority may not be redelegated.
(c) This delegation is effective February 26, 1973, and until
revoked.
(38 FR 5621, Mar. 2, 1973)
04 CFR 304.4 Fees for copying records.
(a) The Cost Accounting Standards Board hereby delegates to the
Executive Secretary of the Board authority to exercise the Board's
authority under 303.5(a), release of information (4 CFR 303.5(a)), of
its rules and regulations.
(b) This authority may be redelegated.
(c) This delegation is effective July 25, 1973 and until revoked.
(38 FR 19831, July 24, 1973)
04 CFR 304.4 PART 305 -- COST ACCOUNTING STANDARDS BOARD BYLAWS
Sec.
305.1 Purpose.
305.2 Membership.
305.3 Quorum.
305.4 Board action.
305.5 Meetings.
305.6 Executive sessions.
305.7 Minutes.
305.8 Amendments to these bylaws.
Authority: Sec. 103, 84 Stat. 796; 50 U.S.C. App. 2168.
Source: 36 FR 23924, Dec. 16, 1971, unless otherwise noted.
04 CFR 305.1 Purpose.
This part publishes the bylaws adopted by the Board to govern Board
membership, meetings, and formal actions by Board vote.
04 CFR 305.2 Membership.
The Board is composed of the Comptroller General of the United States
and the four members appointed by him. In the event of the absence or
incapacity of the Comptroller General or during a vacancy in the office,
the official of the General Accounting Office acting as Comptroller
General shall serve as Chairman of the Board. In the event of the
absence of any of the other four Board members, a representative of that
member may attend the Board meeting, but he shall have no vote, and his
attendance shall not be counted to establish a quorum.
04 CFR 305.3 Quorum.
Three Board members shall constitute a quorum of the Board.
04 CFR 305.4 Board action.
Board action shall be by majority vote of the members present and
voting, except that any vote to publish a proposed standard, rule, or
regulation in the Federal Register for comment or any vote to promulgate
a standard, rule, or regulation shall require at least three affirmative
votes of the five Board members. The Chairman may vote on all matters
presented for a vote, not merely to resolve tie votes. The results of
final votes shall be reported in the minutes of the meeting, and the
vote of a Board member may be recorded at his request.
04 CFR 305.5 Meetings.
The Board shall meet at the call of the Chairman. Agenda for Board
meetings shall be proposed by the Chairman, but any Board member may
request any item to be placed on the agenda.
04 CFR 305.6 Executive sessions.
Any Board member may request that the Board meet in executive
session, and the Chairman shall thereupon order such a session.
04 CFR 305.7 Minutes.
The Executive Secretary of the Board shall be responsible for keeping
accurate minutes of Board meetings and for maintaining Board files.
04 CFR 305.8 Amendments to these bylaws.
These bylaws may be supplemented or amended by the Board, but only
after notice of the proposal to supplement or amend has been given in
the call to the meeting. Any change in 305.2, Membership, of this part
must be in accord with the provisions of section 719 of Pub. L.
91-379, 50 U.S.C. App. 2168.
04 CFR 305.8 SUBCHAPTER B -- (RESERVED)
04 CFR 305.8 SUBCHAPTER C -- PROCUREMENT PRACTICES
04 CFR 305.8 PART 331 -- CONTRACT COVERAGE
Sec.
331.10 Purpose and scope.
331.20 Definitions.
331.30 Applicability, exemption, and waiver.
331.40 (Reserved)
331.50 Contract clause.
331.51 Findings.
331.60 Disclosure requirements.
331.70 Interpretation.
331.71 Materiality.
331.72 Relationship to Part 332.
331.80 Effective date.
Preambles A -- M
Authority: Sec. 103, 84 Stat. 796 (50 U.S.C. App. 2168).
Source: 45 FR 62011, Sept. 18, 1980 unless otherwise noted.
Editorial Note: A supplement, consisting of the preambles to these
regulations as they appeared in the Federal Register, follows the text
of this part. These preambles, which are intended to explain the
regulations in non-technical language, are printed in chronological
order to provide an administrative history of the cost accounting
standards.
The preamble to the original publication of this part (37 FR 4139,
Feb. 29, 1972) is set forth in preamble A of the supplement. The
preambles to amendments affecting the original publication of this part
are set forth in preambles B and C of the supplement.
The preamble to a complete revision and republication of this part
(38 FR 30725, Nov. 7, 1973) is set forth in preamble D of the
supplement. For amendments affecting the complete revision and
republication, see preambles E through L of the supplement.
Preamble M sets forth a complete revision and republication of this
part (see 45 FR 62011, Sept. 18, 1980).
For preambles to amendments and revisions which affect only certain
sections, see the references following those sections.
04 CFR 331.10 Purpose and scope.
The regulations contained in this part are promulgated to implement
the standards and the rules and regulations established by the Cost
Accounting Standards Board pursuant to 50 U.S.C. App. 2168 (Pub. L.
91-379, Aug. 15, 1970). The requirements set forth herein shall be
binding upon all relevant Federal agencies and upon defense contractors
and subcontractors.
04 CFR 331.20 Definitions.
(a) A relevant Federal agency is any Federal agency making a national
defense procurement and any agency whose responsibilities include
review, approval, or other action affecting such a procurement.
(b) A defense contractor is any person who enters into a contract
with the United States for the production of material or the performance
of services for the national defense.
(c) A defense subcontractor is any person other than the United
States who contracts, at any tier, to perform any part of a defense
contractor's contract.
(d) National defense is any program for military and atomic energy
production or construction, military assistance to any foreign nations,
stockpiling, space, and directly related activity.
(e) An established catalog or market price of commercial items sold
in substantial quantities to the general public is as defined in the
Defense Acquisition Regulation (32 CFR 3.807-1(b)), in effect at the
date of the contract.
(f) A negotiated subcontract is any subcontract except a firm
fixed-price subcontract made by a contractor or subcontractor after
receiving offers from at least two persons not associated with each
other or with such contractor or subcontractor, providing:
(1) The solicitation to all competitors is identical,
(2) Price is the only consideration in selecting the subcontractor
from among the competitors solicited, and
(3) The lowest offer received in compliance with the solicitation
from among those solicited is accepted.
(g) A Disclosure Statement is the Disclosure Statement required by
Cost Accounting Standards Board regulation (part 351 of this chapter).
(h) A covered contract is any negotiated national defense prime
contract or subcontract which pursuant to requirements of the Cost
Accounting Standards Board is required to include a Cost Accounting
Standards clause (see 4 CFR part 331 and this chapter).
(i) A business unit is any segment of an organization, or an entire
business organization which is not divided into segments.
(j) A segment is one of two or more divisions, product departments,
plants, or other subdivisions of an organization reporting directly to a
home office, usually identified with responsibility for profit and/or
producing a product or service. The term includes Government-owned
contractor-operated (GOCO) facilities, and joint ventures and
subsidiaries (domestic and foreign) in which the organization has a
majority ownership. The term also includes those joint ventures and
subsidiaries (domestic and foreign) in which the organization has less
than a majority of ownership, but over which it exercises control.
(k) A cost accounting practice is any disclosed or established
accounting method or technique which is used for measurement of cost,
assignment of cost to cost accounting periods, or allocation of cost to
cost objectives.
(1) Measurement of cost encompasses accounting methods and techniques
used in defining the components of cost, determining the basis for cost
measurement, and establishing criteria for use of alternative cost
measurement techniques. The determination of the amount paid or a
change in the amount paid for a unit of goods and services is not a cost
accounting practice. Examples of cost accounting practices which
involve measurement of costs are:
(i) The use of either historical cost, market value, or present
value;
(ii) The use of standard cost or actual cost; or
(iii) The designation of those items of cost which must be included
or excluded from tangible capital assets or pension cost.
(2) Assignment of cost to cost accounting periods refers to a method
or technique used in determining the amount of cost to be assigned to
individual cost accounting periods. Examples of cost accounting
practices which involve the assignment of cost to cost accounting
periods are requirements for the use of specified accrual basis
accounting or cash basis accounting for a cost element.
(3) Allocation of cost to cost objectives includes both direct and
indirect allocation of cost. Examples of cost accounting practices
involving allocation of cost to cost objectives are the accounting
methods or techniques used to accumulate cost, to determine whether a
cost is to be directly or indirectly allocated, to determine the
composition of cost pools, and to determine the selection and
composition of the appropriate allocation base.
(l) A change to a cost accounting practice is any alteration in a
cost accounting practice, as defined in paragraph (k) of this section,
whether or not such practices are covered by a Disclosure Statement,
except that:
(1) The initial adoption of a cost accounting practice for the first
time a cost is incurred, or a function is created, is not a change in
cost accounting practice. The partial or total elimination of a cost or
the cost of a function is not a change in cost accounting practice. As
used here, function is an activity or group of activities that is
identifiable in scope and has a purpose or end to be accomplished.
(2) The revision of a cost accounting practice for a cost which
previously had been immaterial is not a change in cost accounting
practice.
(m) Illustrations of changes. (1) In all of the following cases
where a ''change to a cost accounting practice'' has taken place,
modifications to the affected contracts would be considered in
accordance with this part 331, Contract Coverage, and part 332, Modified
Contract Coverage, as amended. In accordance with 331.71, price
adjustments, with appropriate application of offsets, would be required
only if the net cost impact of the change were material.
(2) The following are illustrations of changes which meet the
proposed definition of ''change to a cost accounting practice'' because:
(i) The method or technique used for measuring costs has been
changed.
(ii) The method or technique used for assignment of cost-to-cost
accounting periods has been changed.
(iii) The method or technique used for allocating costs has been
changed.
(3) The following are illustrations of changes which do not meet the
definition of ''change to a cost accounting practice'' and accordingly
do not require price adjustments under the CAS contract clauses set
forth in 331.50 and 332.50.
(n) A small business concern is any concern, firm, person,
corporation, partnership, cooperative or other business enterprise which
pursuant to 15 U.S.C. 637(b)(6) and the rules and regulations of the
Small Business Administration set forth in 13 CFR part 121, is
determined to be a small business concern for the purpose of Government
procurement.
04 CFR 331.30 Applicability, exemption, and waiver.
(a) The head of each relevant Federal agency shall cause or require a
clause set forth in 331.50 captioned Cost Accounting Standard to be
inserted in all negotiated defense contracts in excess of $100,000,
except as provided in paragraph (b) of this section, other than
contracts entered into by the agency where the price is based on: (1)
Established catalog or market prices of commerical items sold in
substantial quantities to the general public, or (2) prices set by law
or regulation.
(b) The requirements of paragraph (a) of this section shall not be
applicable to:
(1) Any contract or subcontract awarded to a small business concern.
(2) Any contract or subcontract awarded for performance in a business
unit which is eligible to use the provisions of part 332 of the Board's
regulations and which elects to use that part.
(3) Any contract or subcontract awarded to an educational institution
whose cost principles are subject to Federal Management Circular 73-8
except contracts that are to be performed by a federally funded research
and development center (FFRDC) operated by such an institution. A FFRDC
is a laboratory or similar operation which is designated as such by the
National Science Foundation. If a contract or any part of a contract
awarded to an exempt educational institution is to be performed by a
FFRDC, the contract shall contain the clause set forth in 331.50 or
332.50, as appropriate, and the requirements of that clause shall be
applicable to that part of the contract effort, and the costs thereof,
which are performed by the FFRDC. Costs incurred by the institution
which may be allocated to the FFRDC are specifically exempted by this
provision as is the requirement to prepare part VIII of the disclosure
statement (CASB-DS-1 or CASB-DS-2).
(4) Any contract awarded to a labor surplus area concern pursuant to
procedures providing for a partial set-aside for such concern as set out
in DAR 1-804, 32 CFR 1-804, and FPR 1-1.804, 41 CFR 1-1.804.
(5) Any contract or subcontract awarded to a foreign government or an
agency or instrumentality of such government or, insofar as the
requirements of Cost Accounting Standards 403 (4 CFR part 403) or any
subsequent standards are concerned, any contract or subcontract awarded
to a foreign concern.
Note: This exemption does not relieve foreign concerns of any
obligation to comply with the Cost Accounting Standards set forth in 4
CFR parts 401 and 402 and to submit a Disclosure Statement.
(6) Any subcontract to be performed outside the United States either
by an agency of a foreign government or by a foreign concern in
connection with the class of hydrofoil guided missile ship know as the
''NATO PHM Ship.''
(7) Any contract or subcontract of $500,000 or less, unless the
business unit to whom it is awarded (i) is performing one or more
covered contracts and (ii) has not received notification of final
acceptance of all items of work to be delivered under all such
contracts. For the purposes of this paragraph (b)(7) an order issued by
one segment to another segment shall be treated as a subcontract.
(8) Any contract or subcontract awarded to a United Kingdom
contractor for performance substantially in the United Kingdom:
Provided, That the contractor has filed with the U.K. Ministry of
Defence, for retention by the Ministry, a completed Disclosure Statement
(Form CASB-DS-1) which shall adequately describe its cost accounting
practices. Whenever that contractor is already required to follow U.K.
Government Accounting Conventions, the disclosed practices shall be in
accord with the requirements of those Conventions. Such contract or
subcontract shall also contain the following provision:
The contractor agrees that it will consistently follow the cost
accounting practices disclosed on Form CASB-DS-1 in estimating,
accumulating and reporting costs under this contract. In the event the
contractor fails to follow such practices, it agrees that the contract
price shall be adjusted, together with payment of interest, if such
failure results in increased costs paid by the U.S. Government.
Interest shall be determined in accordance with the rules and
regulations of the Cost Accounting Standards Board. The contractor
agrees that the Disclosure Statement filed with the U.K. Ministry of
Defence shall be available for inspection and use by representatives of
the contracting agency, the Cost Accounting Standards Board, and the
Comptroller General of the United States.
(9) Any firm fixed price contract or subcontract awarded without
submission of any cost data: Provided, That the failure to submit such
data is not attributable to a waiver of the requirement for certified
cost or pricing data.
(c)(1) Upon request of the Secretary of Defense, the Deputy Secretary
of Defense, an Under Secretary of Defense, or the Deputy Under Secretary
of Defense, Research and Engineering (Acquisition Policy), or outside
the Department of Defense, of officials in equivalent positions, the
Cost Accounting Standards Board may waive all or any part of the
requirements of paragraph (a) of this section with respect to a national
defense contract or subcontract. Any request for a waiver shall
describe the proposed contract or subcontract for which waiver is sought
and shall contain:
(i) An unequivocal statement that the proposed contractor or
subcontractor refuses to accept a contract containing all or a specified
part of the Cost Accounting Standards clause and the specific reason for
that refusal,
(ii) A statement whether the proposed contractor or subcontractor has
accepted any prime contract or subcontract with any Federal department
or agency containing the Cost Accounting Standards clause,
(iii) The amount of the proposed award and the sum of all awards by
the department or agency requesting the waiver to the proposed
contractor or subcontractor in each of the preceding 3 years,
(iv) A statement that no other source of the supplies or services
being procured is available to satisfy the needs of the agency on a
timely basis,
(v) A statement of any alternative methods of fulfilling the project
or program needs and the agency's reasons for rejecting such
alternatives,
(vi) A statement of the steps being taken by the procuring agency to
establish other sources of supply for future procurements of the
products or services for which a waiver is being requested, and
(vii) Any other information that may aid the Board in evaluating the
requested waiver.
(2) Except as provided herein, the authority in paragraph (c)(1) of
this section shall not be delegated. For any contract or subcontract
for the procurement of substantially the same product or service from
the same contractor for whom, pursuant to paragraph (c)(1) of this
section, a waiver has previously been requested and granted by the Cost
Accounting Standards Board, authority contained in paragraph (c)(1) of
this section, may be delegated by the Secretary of Defense to the
Secretaries of the Military Departments and to the Director, Defense
Supply Agency, and by the heads of other agencies to officials in
equivalent positions.
331.40 (Reserved)
04 CFR 331.50 Contract clause.
Except as provided in either 331.30 or part 332 of this chapter the
clause set forth below shall be inserted in all negotiated national
defense prime contracts and subcontracts.
(a) Unless the Cost Accounting Standards Board has prescribed rules
or regulations exempting the contractor or this contract from standards,
rules, and regulations promulgated pursuant to 50 U.S.C. App. 2168
(Pub. L. 91-379, August 15, 1970), the contractor, in connection with
this contract shall:
(1) By submission of a Disclosure Statement, disclose in writing his
cost accounting practices as required by regulations of the Cost
Accounting Standards Board. The practices disclosed for this contract
shall be the same as the practices currently disclosed and applied on
all other contracts and subcontracts being performed by the contractor
and which contain a Cost Accounting Standards clause. If the contractor
has notified the Contracting Officer that the Disclosure Statement
contains trade secrets and commercial or financial information which is
privileged and confidential, the Disclosure Statement will be protected
and will not be released outside of the Government.
(2) Follow consistently his cost accounting practices in accumulating
and reporting contract performance cost data concerning this contract.
If any change in cost accounting practices is made for purposes of any
contract or subcontract subject to Cost Accounting Standards Board
requirements, the change must be applied prospectively to this contract,
and the Disclosure Statement must be amended accordingly. If the
contract price or cost allowance of this contract is affected by such
changes, adjustment shall be made in accordance with subparagraph (a)(4)
or (a)(5) below, as appropriate.
(3) Comply with all Cost Accounting Standards in effect on the date
of award of this contract or if the contractor has submitted cost or
pricing data, on the date of final agreement on price as shown on the
contractor's signed certificate of current cost or pricing data. The
contractor shall also comply with any Cost Accounting Standard which
hereafter becomes applicable to a contract or subcontract of the
contractor. Such compliance shall be required prospectively from the
date of applicability to such contract or subcontract.
(4) (A) Agree to an equitable adjustment as provided in the changes
clause of this contract if the contract cost is affected by a change
which, pursuant to (3) above, the contractor is required to make to his
cost accounting practices.
(4) (B) Negotiate with the contracting officer to determine the terms
and conditions under which a change may be made to a cost accounting
practice, other than a change made under other provisions of this
subparagraph (4): Provided, That no agreement may be made under this
provision that will increase costs paid by the United States.
(4) (C) When the parties agree to a change to a cost accounting
practice, other than a change under (4)(A) above, negotiate an equitable
adjustment as provided in the changes clause of this contract.
(5) Agree to an adjustment of the contract price or cost allowance,
as appropriate, if he or a subcontractor fails to comply with an
applicable Cost Accounting Standard or to follow any cost accounting
practice consistently and such failure results in any increased costs
paid by the United States. Such adjustment shall provide for recovery
of the increased costs to the United States together with interest
thereon computed at the rate determined by the Secretary of the Treasury
pursuant to Pub. L. 92-41, 85 Stat. 97, or 7 percent per annum,
whichever is less, from the time the payment by the United States was
made to the time the adjustment is effected.
(b) If the parties fail to agree whether the contractor or a
subcontractor has complied with an applicable Cost Accounting Standard,
rule, or regulation of the Cost Accounting Standards Board and as to any
cost adjustment demanded by the United States, such failure to agree
shall be a dispute concerning a question of fact within the meaning of
the disputes clause of this contract.
(c) The contractor shall permit any authorized representatives of the
head of the agency, of the Cost Accounting Standards Board, or of the
Comptroller General of the United States to examine and make copies of
any documents, papers, or records relating to compliance with the
requirements of this clause.
(d) The contractor shall include in all negotiated subcontracts which
he enters into the substance of this clause except paragraph (b), and
shall require such inclusion in all other subcontracts of any tier,
including the obligation to comply with all Cost Accounting Standards in
effect on the date of award of the subcontract or if the subcontractor
has submitted cost or pricing data, on the date of final agreement on
price as shown on the subcontractor's signed certificate of current cost
or pricing data. This requirement shall apply only to negotiated
subcontracts in excess of $100,000 where the price negotiated is not
based on:
(1) Established catalog or market prices of commercial items sold in
substantial quantities to the general public, or
(2) Prices set by law or regulation, and except that the requirement
shall not apply to negotiated subcontracts otherwise exempt from the
requirement to include a Cost Accounting Standards clause by reason of
331.30(b) of Title 4, Code of Federal Regulations (4 CFR 331.30(b)).
04 CFR 331.51 Findings.
Prior to the utilization of the provisions of paragraph (a)(4)(C) of
the contract clause set out in 331.50(b), the contracting officer shall
make a finding that the change is desirable and is not detrimental to
the interests of the Government.
04 CFR 331.60 Disclosure requirements.
General provisions concerning filing of a Disclosure Statement and
the time at which such Disclosure Statement must be filed are set forth
in part 351 of this chapter.
04 CFR 331.70 Interpretation.
(a) Increased costs paid by the United States as referred to in the
Cost Accounting Standards clause in 331.50 shall be deemed to have
resulted whenever the cost paid by the Government results from a change
in a contractor's cost accounting practices or from a failure to comply
with applicable Cost Accounting Standards, and such cost is higher than
it would have been had the practices not been changed or applicable Cost
Accounting Standards been complied with.
(b) If the contractor under any fixed price contract, including a
firm fixed price contract, fails during contract performance to follow
his cost accounting practices or to comply with applicable Cost
Accounting Standards, increased cost paid by the United States under
contracts containing the clause set forth in 331.50(a) is measured by
the difference between the contract price agreed to and the contract
price that would have been agreed to had the contractor proposed in
accordance with the cost accounting practices used during contract
performance. The determination of the contract price that would have
been agreed to will be left to the contracting parties and will depend
on the circumstances of each case.
(c) The statutory requirement underlying this interpretation is that
the United States not pay increased costs, including a profit enlarged
beyond that in the contemplation of the parties to the contract when the
contract costs, price, or profit is negotiated, by reason of a
contractor's failure to use applicable Cost Accounting Standards or to
follow consistently his cost accounting practices. In making price
adjustments under the Cost Accounting Standards clause in 331.50, in
fixed-price or cost-reimbursement incentive contracts, or contracts
providing for prospective or retroactive price redetermination, the
Federal agency shall apply this requirement appropriately in the
circumstances.
(d) The contractor and the contracting officer may enter into an
agreement as contemplated by paragraph (a)(4)(B) of the Cost Accounting
Standards clause in 331.50, covering a change in practice proposed by
the Government or the contractor for all of the contractor's contracts
for which the contracting officer is responsible, provided that the
agreement does not permit any increase in the cost paid by the
Government. Such agreement may be made final and binding,
notwithstanding the fact that experience may subsequently establish that
the actual impact of the change differed from that agreed to.
(e) To facilitate agreements with a contractor who has a large number
of contracts affected by a proposed change in his cost accounting
practices or affected by application of Cost Accounting Standards,
contracting agencies are urged to establish procedures under which the
contractor may seek, and in proper cases obtain, agreement with a single
official concerning the impact of the proposed change or application of
standards upon all such contracts of the agency.
(f) An adjustment to the contract price or of cost allowances
pursuant to the Cost Accounting Standards clause in 331.50 may not be
required when a change in cost accounting practices or a failure to
follow Standards or cost accounting practices is estimated to result in
increased costs being paid under a particular contract by the United
States. This circumstance may arise when a contractor is performing two
or more covered contracts and the change or failure affects all such
contracts. The change or failure may increase the cost paid under one
or more of the contracts, while decreasing the cost paid under one or
more of the contracts. In such case, the Government will not require
price adjustment for any increased costs paid by United States so long
as the cost decreased under one or more contracts are at least equal to
the increased cost under the other affected contracts, provided that the
contractor and all affected contracting officers agree on the method by
which the price adjustments are to be made for all affected contracts.
In this situation, the contracting agencies would, of course, require an
adjustment of the contract price or cost allowances, as appropriate, to
the extent that the increases under certain contracts were not offset by
the decreases under the remaining contracts.
04 CFR 331.71 Materiality.
(a) In determining whether amounts of cost are material or
immaterial, the following criteria shall be considered where
appropriate; no one criterion is necessarily determinative.
(1) The absolute dollar amount involved. The larger the dollar
amount, the more likely that it will be material.
(2) The amount of contract cost compared with the amount under
consideration. The larger the proportion of the amount under
consideration to contract cost the more likely it is to be material.
(3) The relationship between a cost item and a cost objective.
Direct cost items, especially if the amounts are themselves part of a
base for allocation of indirect cost, will normally have more impact
than the same amount of indirect costs.
(4) The impact on Government funding. Changes in accounting
treatment will have more impact if they influence the distribution of
costs between Government and non-Government cost objectives than if all
cost objectives have Government financial support.
(5) The cumulative impact of individually immaterial items. It is
appropriate to consider whether such impacts (i) tend to offset one
another, or (ii) tend to be in the same direction and hence to
accumulate into a material amount.
(6) The cost of administrative processing of the price adjustment
modification shall be considered. If the cost to process exceeds the
amount to be recovered, it is less likely the amount will be material.
(b)(1) A contract modification for price adjustment or cost allowance
under the Cost Accounting Standards clause is required only if the cost
impact is material.
(2) Where a contractor is in noncompliance and does not change a cost
accounting practice because the cost impact is immaterial, the
contracting agency is not relieved of its responsibilities to assure
that an appropriate price adjustment is obtained if the cost impact of
the noncompliance subsequently becomes material. The contractor shall
be notified that the Government's decision to forbear action for
noncompliance is solely because the cost impact at the time of the
notice is immaterial. If at any time thereafter, the Government
determines that the cost impact of noncompliance with respect to the
practice in question is material, the Government then must require
action under paragraph (a)(5) of the contract clause set forth in
331.50 for any cost accounting period in which the cost impact is
material. The fact that the Government does not pursue a price
adjustment does not excuse the contractor from his obligation to comply
with the Standard involved.
(3) Whether cost impact is recognized by modifying a single contract,
several but not all contracts, or all contracts, or any other suitable
technique, is a contract administration matter. The Standards, rules,
and regulations of the Board do not in any way restrict the capacity of
the parties to select the method by which the cost impact attributable
to a change in cost accounting practice is recognized.
04 CFR 331.72 Relationship to Part 332.
Contracts subject to this part may be performed during a cost
accounting period in which a previously awarded contract subject to part
332 of this chapter is also being performed. Compliance with the
requirements established by this part may compel the use of cost
accounting practices for contracts covered by this part that are not
required under part 332 of this chapter. Under these circumstances, the
cost accounting practices applicable to contracts subject to part 332 of
this chapter need not be changed. Any resulting differences in
practices between the contracts subject to this part and those subject
to part 332 of this part shall not constitute violations of Standard 401
or 402.
04 CFR 331.80 Effective date.
Part 331, as amended, must be applied to contracts with a date of
award after April 1, 1981, or if the contractor has submitted cost or
pricing data, with a date of final agreement on price after that date.
04 CFR 331.80 Pt. 331, Preamble A
04 CFR 331.80 Preamble A
Preamble to Original Publication, 2-29-72
The material set forth below is the preamble to the original
publication of part 331, February 29, 1972, at 37 FR 4139. For the
preamble to the republication of part 331 (Nov. 7, 1973, 38 FR 37025),
see preamble D of this Supplement. Portions of this preamble relating
to parts 351, 400, and 401 have been omitted; they can be found in the
supplements to their respective parts. This preamble to the publication
of February 29, 1972, is included as part of the administrative history
of part 331.
General comments. The purpose of the regulations promulgated today
by the Cost Accounting Standards Board is to implement section 719 of
the Defense Production Act of 1950, as amended, 50 U.S.C. app. 2168,
which provides for development of Cost Accounting Standards to be used
in connection with negotiated national defense contracts and for
disclosure of cost accounting practices to be used in such contracts.
The Board believes the materials being promulgated today constitute a
significant initial step toward accomplishing one of its major
objectives -- improved cost accounting and the proper determination of
the cost of negotiated defense contracts. The regulations spell out
contract coverage (part 331), disclosure requirements (part 351), a
compilation of Definitions (part 400), and two Cost Accounting
Standards, one calling for consistency in estimating, accumulating, and
reporting costs (part 401), and the other calling for consistency in
allocating costs incurred for the same purpose (part 402).
Development of the material being promulgated today began many months
ago with extensive research. It included examining publications on the
subject, conferring with knowledgeable, representatives of various
Government agencies, Government contractors, industry associations, and
professional accounting associations, and identifying and considering
all available viewpoints. From this research, the initial versions of
the material now being published were developed. As a part of the
continuing research effort, these initial drafts were sent to 81
agencies, associations, and Government contractors which had expressed
interest in assisting the Board in its work, and their comments were
solicited. Some national defense contractors field-tested the material
to see how it would apply to and affect their operations and advised the
Board of their findings. In each step of the research process, the
Board and its staff have urged and received active participation and
assistance by Government, industry, and accounting organizations. Their
cooperative efforts contributed in large measure to the exposure draft
published in the December 30, 1971, Federal Register for comment.
To better assure that all who might want to comment had an
opportunity to do so, the Board supplemented the Federal Register notice
by sending copies of the Federal Register materials directly to about
175 organizations and individuals who had expressed interest or had
provided assistance in the development of the published material. Also,
a press release was distributed announcing the publication, which
resulted in numerous articles in journals. The Board availed itself of
all opportunities to publicize the proposals and solicit comments on
them.
Written comments in response to the published material were requested
by February 4, 1972. Comments were received from 105 sources, including
Government agencies, professional associations, industry associations,
public accounting firms, individual companies, and others. The Board
appreciates the obvious care and attention devoted by commentators, and
as will be seen below, the Board has greatly benefited from the comments
received.
Many of the comments received were addressed to all parts of the
proposed Board rules as well as to the question of public availability
of the Disclosure Statements. All of the comments received have been
carefully considered by the Board taking into account the requirements
of section 719. Understandably, many of the comments were addressed to
issues which recur in two or more of the proposed parts while others
dealt only with specific sections. Comments which dealt with 11 general
issues are discussed separately below followed by a section-by-section
analysis of other comments. Appropriate changes have been made in the
material promulgated based on the Board's disposition of the comments
received.
Those comments and suggestions received which are of particular
significance are discussed below.
1. Public availability of disclosure statement. In a special notice
in the notice of proposed rule making, the Board sought comments to
assist it in its determination of whether Disclosure Statements
submitted by defense contractors and subcontractors should be available
to the general public, pursuant to the Public Information Section of the
Administrative Procedure Act (5 U.S.C. 552) or whether such information
was properly within one of the statutory exceptions to the legal
requirement for public availability.
With few exceptions, both Government and industry commentators urged
that the Disclosure Statements not be made available to the general
public. Numerous arguments were presented. Among them were that public
disclosure by a Government official would violate 18 U.S.C. 1905 (a
provision in the Criminal Code making it a crime for a Government
official to make certain matters public in certain circumstances), thus
making disclosure improper under an exception to the requirement for
public availability set out in 5 U.S.C. 552(b)(3); that the cost
accounting practices were trade secrets or property of considerable
value and that disclosure would deprive the company of their value
without compensation; that disclosure would reduce competition; and
that the public might be misled in that it might construe disclosures
respecting the defense segment of a contractor's business as
representative of his entire business organization.
An argument in favor of making the Disclosure Statements available to
the public was made by a public interest group. It argued that 5 U.S.C.
552 clearly applies to Disclosure Statements, which do not fall within
any exception to public availability; that the public requires access
to Disclosure Statements in order to consider adequately and comment
intelligently on any Cost Accounting Standards proposed by the Board;
that public availability would enhance competition; that Disclosure
Statements which are ultimately approved will form a body of precedents
to guide others in complying with future Board Standards and that public
availability will enable citizens and the Congress to hold both the
Board and contracting officials accountable for implementation of
section 719. A few commentators stated that they favored, or could see
no harm to companies from, public availability of contractors' disclosed
practices.
The Board is especially impressed with arguments that cost accounting
practices have never been made public, that companies have regarded and
treated them as confidential, and that a company's competitive position
would be damaged by public disclosure of its cost accounting practices.
Since disclosure will be required of many companies or divisions of
companies whose principal competitors are not subject to Board
regulations, the Board recognizes there might arise competitive
disadvantage to the disclosing company or division if its competitors
may see its disclosure but need make none themselves. The Board has, in
light of these latter arguments, concluded that information received in
response to Disclosure Statements is within the exception set forth at 5
U.S.C. 552(b)(4) and that the Board will not make Disclosure Statements
public in any case when the company or segment files its statement
specifically conditioned on the Government's agreement to treat the
Disclosure Statement as confidential information.
A provision to this effect has been added at 351.4(d) of part 351.
Additionally, paragraph (a)(1) of the contract clause set forth at
331.5 has been modified to this effect, and a provision added to it so
that subcontractors may submit Disclosure Statements directly to the
contracting officer.
While the Board has concluded that public availability of the
Disclosure Statements of identified contractors is not required, it
will, nevertheless, implement its announced intention of compiling
statistical summaries of disclosure data and making those studies
available to the public. The Board believes that the creation of a data
bank of cost accounting practices will greatly benefit the Board's own
research efforts and the formulation of Cost Accounting Standards;
summaries of these data or studies of them should also prove to be of
great value to the public. Aggregated information not identified to
particular contractors will, therefore, be made available to the public.
2. Contractor-subcontractor relationships. Several commentators,
stating that contractors cannot dictate the cost accounting practices of
their subcontractors at any tier, urged that the Board not hold
contractors responsible for increased costs to the United States arising
from the failure of subcontractors to follow Cost Accounting Standards
or disclosed cost accounting practices. Several commentators also urged
that the contractor not be subject to the possibility of a default
termination by reason of the actions or inactions of any of its
subcontractors at any tier. Finally, some commentators urged that the
Board establish a novel concept of privity between the contracting
agency and subcontractors with respect to any concerns stemming from
Board rules, regulations, and Cost Accounting Standards.
The Board has dealt with many of the issues touched on by these
commentators in its conclusions, discussed below, respecting the phasing
of applicability and the proposed termination-for-default language in
the Contract Clause. The Board is also mindful of the desirability of
its maintaining neutrality with respect to contracting policies outside
its jurisdiction; thus it should avoid establishing a standard or
policy which would influence decisions of whether work should be
performed in-house or subcontracted. A Board policy permitting
contractors to avoid responsibility for the actions of their
subcontractors could surely have such an impact.
The Board reaffirms the established principle that prime contractors
are responsible to the Government for performance of their contracts in
all required respects and urges that contractors who are fearful of
deficiencies in their subcontractors' performances protect themselves by
use of whatever means they currently employ under other flow-down
contractual requirements.
3. Exemptions. Many commentators urged the Board to provide
exemptions either to the requirement to file a Disclosure Statement or
to both that requirement and the requirement to follow Cost Accounting
Standards. Exemptions were urged for subcontractors below the first
tier, subcontractors with small amounts of defense contracting business,
producers of basic or raw materials, colleges and universities,
construction contractors, firms which would qualify as small businesses,
and others.
The Board has long been concerned with the question of appropriate
exemptions. It has specifically requested interested groups to offer
suggestions for criteria for use by the Board in considering exemptions.
It also requested its staff to study exemptions and has discussed the
staff investigations at Board meetings. In light of these studies and
the comments received, the Board has found no persuasive reasons for
issuing blanket or class exemptions at this time.
The Board recognizes, however, that individual Cost Accounting
Standards may by their nature be inapplicable or inappropriate to
certain classes or categories of defense contractors or contracts. The
Board will continue to consider exemptions from individual proposed Cost
Accounting Standards as appropriate.
With respect to the requirement to submit a Disclosure Statement, the
Board's proposed regulation provides a phasing of that requirement. The
Board remains convinced that a company which together with its
subsidiaries received prime contract awards of negotiated national
defense contracts including supplemental awards during Federal fiscal
year 1971 totaling more than $30 million should be required to submit a
Disclosure Statement as soon as part 351 of the Board's regulations
becomes effective. In order to provide both to other contractors and to
Government agencies adequate time within which to study the use of
Disclosure Statements, however, the Board will defer determination of
the date after which other affected contractors and subcontractors may
be required to file Disclosure Statements. From time to time, the Board
will announce the dates of applicability to other contractors and
subcontractors.
4. Applicability date of standards, rules, and regulations. A
related issue raised by many commentators is a request that Cost
Accounting Standards be made applicable 90 days after issuance or at the
beginning of the contractor's next fiscal year, whichever is later. In
order to provide the maximum benefits from use of Cost Accounting
Standards, the Board has decided not to adopt any rule which would
automatically delay the effective date of Cost Accounting Standards
beyond the dates contemplated in section 719(h). That section provides
a minimum of 4 months' notice from the date of promulgation, to
contractors of the likely applicability of a Cost Accounting Standard.
The Board regards this as an adequate time for companies to prepare for
use of the standard. The Board nevertheless recognizes that certain
standards by their nature may require deferring applicability to the
beginning of a contractor's fiscal year next following the effective
date, and in such cases that applicability will be stated in the
standards concerned.
5. Agency administrative responsibility. Many commentators, noting
the Board's statutory responsibility to promote uniformity and
consistency in cost accounting practices used in defense contracting and
subcontracting, have suggested that uniformity would be promoted by
giving the Board or another single Federal agency the sole implementing
responsibility respecting Board regulations. Thus, some commentators
recommended that the Board itself issue regulations prescribing the
frequency of submission of Disclosure Statements and where they must be
submitted. Other commentators urged that the Board issue a single
regulation prescribing exact methods by which increased costs to the
United States will be determined. Other commentators urged that the
Board prescribe methods by which advance agreements affecting more than
one contract shall be made, some commentators urging that the Board
itself make those agreements. Others urged that the Board rule that the
contracting agencies must act to approve or disapprove Disclosure
Statements within a stated period of time. And finally, some
commentators urged that the Board itself be the sole agency to approve
the cost accounting practices disclosed through submission of a
Disclosure Statement.
The Board finds these recommendations cogent. It also recognizes
that to act pursuant to them would require a Board regulation directed
to the administrative and contracting procedures of many Federal
agencies and in some cases -- such as the recommendation for Board
approval of disclosed cost accounting practices -- substitute a Board
regulation for the exercise of contracting officers discretion.
The Board, therefore, has decided not to implement at this time the
suggestions set forth in this connection. The Board nevertheless will
watch closely during the early implementation by contracting agencies of
Board rules, regulations, and Cost Accounting Standards so that it may
become aware of any diversity of regulations or actions by contracting
agencies. If the Board finds that an unacceptable amount of diversity
has arisen, it will be prepared to reconsider the recommendations that
the Board issue its own regulations in many of the areas left by Board
regulations to the discretion of contracting agencies.
Many commentators have expressed concern about the problems which
could arise from inconsistent actions by different Federal agencies
respecting disclosed practices, changes in practices, and equitable
adjustment of contract prices and costs. The Board has directed its
staff to work with representatives of relevant Federal agencies with the
objective of obtaining designation of a single contracting officer for
each contractor or major component thereof in order to achieve
consistent practices within the standards issued by the Board.
6. Contract modifications. Several commentators have urged that
negotiated contract changes and amendments over $100,000 to contracts
which are themselves not subject to Board jurisdiction should not be
covered. One commentator pointed out that in a long-term contract, most
changes represent ''instead of'' type changes with cost of price
adjustments only for the incremental effect of the change. This
commentator stated that there is no practical way separately to identify
these incremental costs.
The Board is persuaded that for the time being it should not cover
negotiated modifications to contracts exempt at their inception. It has
therefore, eliminated coverage for the time being of such contract
modifications. In doing so, however, the Board intends that the annual
extension of existing negotiated contracts and similar contract
modifications would not be exempt from the Board's rules, regulations,
and Cost Accounting Standards.
7. Definitions. The Board is also persuaded of the value of one
commentator's suggestion that the Board provide a compilation of
definitions of the words or phases defined in individual Cost Accounting
Standards, making those definitions applicable to all such standards.
Consequently, a new part 400 has been added, and all terms defined in
parts 401 and 402 have been placed in it, although they also remain in
the particular standards in which they are defined. As more standards
are added, any terms defined in them will also be added to part 400.
However, terms defined in parts 331 and 351 are not included in the
glossary of definitions, nor are terms used in those parts necessarily
to bear the meanings ascribed to those terms in part 400.
8. Application to individual contracts. Several commentators urged
that the Board adopt the date of final agreement on a negotiated price
as a cut-off date for the disclosure of cost accounting practices. The
Board has reviewed the merits of selecting that date rather than the
date of award to establish the date as of which the contractor's
Disclosure Statement must accurately reflect his cost accounting
practices, at least with respect to those contracts where cost or
pricing data have been submitted pursuant to Pub. L. 87-653. The Board
has decided to use the date of final agreement on price, as shown on the
signed certificate of current cost or pricing data, with respect to
contractors who have submitted cost or pricing data, and to use the date
of award of the contract for all other contractors. In addition, the
Board has concluded that it is appropriate to use those dates to
establish which Cost Accounting Standards shall be applicable to the
proposal and to the contract at its inception. Appropriate changes in
parts 331, 351, and 401 have been made to reflect this decision.
9. Price adjustments. Many commentators stated that where a
contractor's departure from existing disclosed practices is occasioned
by the contractor's wish to adopt a newly issued Cost Accounting
Standard for all contracts, the Government should be willing to provide
upward price adjustment whenever an existing contract is rendered
thereby more expensive to perform. The view was often expressed that
contractors could not maintain one accounting practice for contracts
subject to a particular Cost Accounting Standard, but a different
practice for contracts not so subject; therefore, it was alleged, once
a contractor had to adopt a standard for any one contract, he would of
necessity adopt it for all contracts and amend his Disclosure Statement
accordingly.
The Board notes in this connection that the Cost Accounting Standard
at part 402 requires consistency in the allocation of all direct and
indirect costs under all covered contracts. If a Cost Accounting
Standard were issued which required a company to modify its disclosed
cost accounting practices with respect to its earlier practice of
allocating direct and indirect costs, part 402 would require emendment
of existing disclosed practices so as to meet that requirement. In such
a case, the Board believes it would be unfair to deny an equitable price
adjustment arising from such amendment.
Further, the Board has been persuaded by the strong arguments from
industry commentators that companies with more than one contract,
subject to different Cost Accounting Standards, cannot maintain multiple
records to account for each contract related to its set of standards.
Another industry commentator stated that the vast majority of companies
must apply any required cost accounting practices across their total
business, and that it would be impractical if not impossible for
companies to apply different practice to different contracts.
The Board has accommodated this view by enabling contractors to apply
uniform practices to all covered contracts. Such application will also
serve to improve cost accounting practices for all contracts.
The Board has consequently modified both part 331 and part 351 to
provide three things: First, that a contractor's practices disclosed
for any contract shall be the same as the practices currently disclosed
and applied on all other covered contracts and subcontracts being
performed by that contractor. Second, that a contractor must amend his
disclosure of cost accounting practices as new standards are issued and
become applicable to new contracts if a change in practices is
necessary, so that, at any given time, the same practices prevail under
all of the contractor's existing contracts and subcontracts subject to
Board jurisdiction. Similarly, contractors must amend Disclosure
Statements to reflect any change in practices disclosed under later
contracts. Third, that for those amendments of disclosed practices
applicable to a particular contract which are occasioned by the issuance
of a new Cost Accounting Standard, the Government will equitably adjust
the contract price in accordance with the changes clause in the contract
or reimburse any increased costs under that contract.
In view of the phasing of the requirement to file a Disclosure
Statement, the Board has adopted a contract provision that will provide
equitable adjustments in appropriate cases when a contractor who has not
yet filed a Disclosure Statement is required to change his established
cost accounting practices to comply with newly issued Cost Accounting
Standards. On the other hand, any departure from disclosed cost
accounting practices which is not required by a newly issued Cost
Accounting Standard will not be subject to equitable price adjustment,
but only to price adjustment downward in the event that that departure
would otherwise result in increased costs being paid by the United
States. The Board wishes to emphasize that if the parties to a
contractual negotiation mutually agree to a price based on exclusion of
costs which are allocable under the contractor's disclosed cost
accounting practices, such agreement shall not affect the requirement
for conformity with Board rules, regulations, and Cost Accounting
Standards in the contractor's allocation of costs between the contract
being negotiated and other work.
10. Materiality. The Board notes that many commentators urged that a
concept of materiality be incorporated in the Board's regulations, to
the end that minimal or insignificant modifications of or failures to
use disclosed cost accounting practices would not be subject to price
adjustment.
The Board agrees that the administration of its rules, regulations,
and Cost Accounting Standards should be reasonable and not seek to deal
with insignificant amounts of cost. Since this rule of common sense is
already practiced by the Government, the Board does not believe that
there is any need to attempt to formulate and state in acceptable
concept of materiality applicable to all Board rules, regulations, and
standards, although the Board might consider doing so if subsequent
events indicate the necessity therefor. The Board does recognize that
in particular standards a ''materiality'' statement may be useful, and
in such cases, it will include one. See for example the addition at
402.50(e).
11. Additional requirements by agencies. As a final general point,
concern was expressed that Federal agencies might require submission of
cost proposals in ways inconsistent with the cost accounting practices
of some or all of the potential offerors. The Board recognizes that
this has happened in the past, but it notes that Board rules,
regulations, and Cost Accounting Standards are to be used by relevant
Federal agencies as well as by contractors and subcontractors, and it
believes that henceforth requests for proposals must be fully consistent
with such rules, regulations, and standards, although of course the
Federal agency may ask for supplementary information to accompany
proposals if this is needed to meet the agency's requirements.
04 CFR 331.80 Other Comments
Section 331.2 Definitions. A few commentators recommended modifying
the definition of ''relevant Federal agency.'' Their purpose was to
assure that agencies such as the General Accounting Office and the
Renegotiation Board were excluded from the definition of such agencies.
Those recommendations have not been accepted, since the Board believes
the General Accounting Office, the Renegotiation Board, and other
agencies whose responsibilities include review, approval, or other
action affecting national defense procurements are within the meaning of
''relevant Federal agencies.''
One Federal agency urged that the definition of ''national defense''
be supplemented at the end by adding the phrase ''including R. & D.
and services.'' The Board believes this addition unnecessary, in light
of the definition at 331.2(b) of ''defense contractor,'' and the
definition of ''material'' set out in 50 U.S.C. App. 2152 as including
''technical information.'' The Board, of course, agrees that contractors
for research and development as well as other services are national
defense contractors in light of these definitions.
Several commentators urged that the definition of ''negotiated
subcontract'' at 331.2(f) be broadened to reflect what the commentators
believed was the Board's purpose in this definition, that of precluding
jurisdiction over subcontracts made after adequate price competition.
That is not the Board's intention; instead, the Board intended to
exclude from the term ''negotiated subcontract'' only a subcontract made
under conditions which are as close to the conditions governing Federal
advertised contracts as possible. Accordingly, the Board has not
accepted these suggestions, but it has added language to clarify its
intention.
In connection with this comment, the Board notes that several
commentators urged that the Board exempt altogether from its
jurisdiction any contract made after adequate price competition. The
Board believes that any such exemption would be unwarranted and
undesirable in view of the legislative history of section 719.
Section 331.5 Contract clause. The major changes in the contract
clause urged by commentators have already been discussed in points 2 and
9 of the discussion of general comments. Commentators raised a number
of additional points with respect to this contract clause. A great many
commentators objected to the provision in paragraph (e) for termination
for default. Many commentators urged that the requirement to repay
increased costs to the United States should be deemed the sole remedy
for a refusal or failure to comply with the requirements of the contract
clause. While that remedy may be adequate for almost all cases
involving a failure to follow Cost Accounting Standards or disclosed
cost accounting practices, it would not be adequate to meet other
possible situations, where, for example, a contractor refused to make a
post-award submission of a Disclosure Statement or refused to grant
access to records as required by the contract clause. In view of the
fact that breach of any of the requirements of this clause would be a
breach of a material condition of the contract, the default clause
generally applicable to performance of the contract provides adequate
coverage. Consequently, the Board has deleted the specific termination
language in this contract clause as requested by many commentators.
Some commentators urged deletion or modification of paragraph (c) of
the contract clause, which the Board has not done, since that language
is prescribed by section 719(j). Other commentators urged that the
Board set forth a specific period during which contractor and
subcontractor documents, papers, or records relating to compliance with
Cost Accounting Standards must be retained. The Board believes that
there is no need to do so, since the general records retention
requirements of any particular contract will establish that period.
One Federal agency requested that the disputes language in paragraph
(d) be modified to accommodate that agency's practice of permitting
subcontractors to bring contract disputes directly to that agency's
Board of Contract Appeals. The Board has accepted this recommendation.
Two Federal agencies recommended deletion of the definitions in this
contract clause as unnecessarily duplicating 331.2. The Board agrees
and has made the deletion, except that the definition of ''negotiated
subcontractor'' has been retained in the contract clause for the
convenience of contractors and subcontractors.
Other suggestions were received in which the Board was urged to
modify other language in the contract clause which is taken directly
from provisions in section 719. Preferring to use the statutory
language, the Board has not accepted these suggestions. It has however,
modified its proposal in paragraph (b) so as to adopt the statutory
language, as urged by one commentator.
Section 331.6 Post award disclosure. Two Federal agencies urged that
the contracting agencies be authorized to make awards whenever the head
of the agency concluded that it was impractical to secure a Disclosure
Statement from a contractor or from a subcontractor. Recognizing that
any avoidable delays in making procurements are undesirable, the Board
has accepted this recommendation. The Board does not expect that the
authority thus provided to agency heads will be abused, and it will be
informed of all actions taken pursuant to this authority.
Effective date and application. For the convenience of readers, the
following summarizes the effective dates set forth in 331.8, 351.4(e),
and parts 400, 401, and 402, which were transmitted to the Congress on
February 24, 1972, pursuant to section 719(h)(3) of the Defense
Production Act of 1950 as amended. After the expiration of a period of
60 calendar days of continuous session following the date of transmittal
to the Congress, the regulations herein promulgated shall take effect as
set forth in those regulations, unless there is passed by the two Houses
a concurrent resolution stating in substance that the Congress does not
favor the proposed standards, rules or regulations.
1. The provisions of 331.4 are to be included in all solicitations
issued on or after July 1, 1972, which are likely to lead to contracts
covered by standards, rules, and regulations of the Cost Accounting
Standards Board.
2. The provisions of 331.5 are to be included in all contracts
resulting from solicitations covered by 1 above. In addition, these
provisions are to be included in any other contract which is within the
jurisdiction of the Cost Accounting Standards Board and which is awarded
after October 1, 1972.
3. The provisions of part 351 will be applicable to any contractor
who submits a proposal which results in contracts containing the clause
in 331.5 and whose net awards of negotiated national defense prime
contracts during Federal fiscal year 1971 totaled more than $30 million.
Contractors whose net awards were less than that amount may be required
to complete or submit a Disclosure Statement as the Board announces
extensions of this requirement to such contractors.
4. Any contractor having a contract awarded prior to July 1, 1972,
which contains a clause which already incorporates requirements
governing submission of Disclosure Statements and application of Cost
Accounting Standards will be required to comply with the provisions of
that clause. In this connection, such contractor and the respective
contracting agencies whose contracts contain such a clause should review
those contracts to determine whether negotiations should be instituted
to make parts 400 through 402 applicable to them.
04 CFR 331.80 Pt. 331, Preamble B
04 CFR 331.80 Preamble B
Preamble to Amendment of 6-29-72
This amendment redesignated 331.3 as 331.3(a) and added a new
331.3(b). The preamble and amendment were published on June 29, 1972, at
37 FR 12784. Although part 331 was subsequently republished and revised
on November 7, 1973 (38 FR 30725), the preamble to the amendment of June
29, 1972, is included as part of the administrative history of the
regulation.
The purpose of this publication by the Cost Accounting Standards
Board is to adopt a modification to 331.3. Applicability, of its rules
and regulations. The modification adopted today was initially published
in the Federal Register of May 23, 1972 (37 FR 10454). Comments
regarding that notice of proposed rulemaking were invited to be
submitted to the Board by June 23, 1972.
The prescribed period has passed, and no comment opposing the
proposed modification has been received. In view of this and for the
reasons set forth on May 23, 1972, Federal Register, modification to
331.3 of the Board's rules and regulations is adopted and made effective
on July 1, 1972.
04 CFR 331.80 Pt. 331, Preamble C
04 CFR 331.80 Preamble C
Preamble to Amendments of 2-13-73
This amendment adds a new paragraph (c) to 331.3, and deletes
331.6(c). The preamble and amendments were published on February 12,
1973, at 38 FR 4237. Although part 331 was subsequently republished and
revised on November 7, 1973 (38 FR 30725), the preamble to the amendment
of February 12, 1973, is included as part of the administrative history
of part 331.
The purpose of this publication by the Cost Accounting Standards
Board is to adopt a modification to part 331, Contract Coverage, of its
rules and regulations. The modification was published initially in the
Federal Register of December 8, 1972 (37 FR 26127). Some of the
material in the modification was also published in the Federal Register
of October 6, 1972 (37 FR 21177). Comments regarding the publication on
December 8 were invited to be submitted to the Board by January 15,
1973.
The Board received 14 comments from a wide range of commentators.
The Board is grateful for their interest and takes this occasion to
thank them for the comments.
One commentator urged the Board to require certain additional
information to support waiver applications pursuant to paragraphs
(1)(i), (1)(iii), and (2)(i) of 331.3(c). The Board agrees that such
additional information will assist it in deciding whether to grant a
waiver and therefore has adopted this proposal.
Two commentators urged that the signed, unequivocal statement by a
proposed contractor or subcontractor that it refuses to accept a
contract containing the Cost Accounting Standards clause might not be
obtainable even when there has been such a refusal. The Board agrees
and has consequently modified the requirement at 331.3(c)(1)(i) so that
the agency's statement of the fact of an unequivocal refusal, and of the
contractor's or subcontractor's specific reasons therefor, will be
sufficient to satisfy this requirement.
A commentator suggested that the Board provide for exemption from
particular portions of the Cost Accounting Standards clause, as well as
providing for exemption from all of it. The Board agrees that it is
helpful to spell out such authority and has modified its proposal
accordingly.
The Honorable Wright Patman, Chairman of the Committee on Banking and
Currency of the House of Representatives, noting that any extensive use
of the Board's proposed authority could seriously weaken the objectives
of section 719 of the Defense Production Act of 1950, as amended,
requested that within 30 days after acting on any request for an
exemption the Board transmit to him a full report of the exemption
request and its action thereon. The Board is pleased to comply with
this request. A similar report will also be submitted to the Chairman
of the Committee on Banking, Housing, and Urban Affairs of the U.S.
Senate.
Another commentator urged in the interest of assuring maximum access
by the public and the Congress to the Board's actions that requests for
waivers be published in the Federal Register and that comments on them
be solicited that the Board's action on a request and an explanation of
it be published in the Federal Register, and, finally, that
notwithstanding any prior publication, that the Board include in its
annual report to Congress a listing of every request for waivers
received during the year, together with an explanation of the Board's
action granting or denying the request. This commentator, asserting
that the Board does not have unlimited discretion to grant waivers or
exceptions, urges that the standards the Board will apply in acting on
requests for waivers be stated.
The Board adopts the suggestion that it include in its annual reports
to Congress a listing of the requests it receives for waivers and its
disposition of those requests. The Board, however, does not believe
that it should publish a notice of requested waiver and solicit
comments. As noted above, the Board will provide full information to
the Congress and to the public through its reports on its actions on
waivers. With respect to this commentator's suggestion that the Board
publish the criteria which it will use in acting on requests for
waivers, the Board is satisfied that those criteria clearly are implicit
in the information which the Board is requiring to be submitted in
support of a request for a waiver.
Several commentators urged that the Board delegate its waiver
authority to the procuring agencies, stating essentially that waivers
could thus be granted more expeditiously. The Board has not accepted
this suggestion, since it believes that it should retain control over a
matter as important as a total exemption from the requirements of
section 719 of the Defense Production Act of 1950, as amended, and also
because the Board is convinced that its retention of its waiver
authority will not unduly delay action on waiver requests. In this
connection, the Board reemphasizes its comments published in the Federal
Register for December 8, 1972 (37 FR 26127) that, ''The Board * * * is
prepared to act promptly in response to requests for waivers but * * *
the Board's ability to respond promptly will depend in very large
measure on whether or not the agency's request for a waiver is in full
accord with the proposed requirements.'' If experience shows that
delegation of this authority is warranted, the Board will, however,
reconsider this suggestion.
Some of these commentators also urged that the level of agency
officials authorized to submit requests for waivers to the Board be
modified to include persons at levels of responsibility below those
indicated in the Board's proposal. The Board believes that the level
proposed will not unduly burden the procuring agencies and will assure
that any request for a waiver of the Board's regulations will receive
consideration at a very high level within the procuring agency before
submission to the Board. It, therefore, does not adopt this suggestion
at this time, although it may reconsider this suggestion if experience
warrants.
Some commentators urged the Board to expand its proposal to permit
exemptions on broader bases, instead of confining the exemption
authority to particular cases of demonstrated need. The Board does not
accept this suggestion, since it does not anticipate wholesale or,
indeed, even very numerous requests for waivers. Nevertheless, should a
need for broader exemption action be justified, the Board can deal with
that need under its authority in section 719(h)(2) of the Defense
Production Act of 1950, as amended.
One commentator urged an outright exemption for both foreign and
domestic concerns for work performed outside the United States, and
other commentators urged the exemption of all subcontracts performed in
Canada. The Board has adopted neither of these proposals, since it
believes that the arguments advanced for them are unpersuasive in light
of the purposes of section 719. The Board believes, further, that the
exemption authority being adopted today provides an adequate basis for
waivers where they are appropriate.
A commentator is concerned that the phrase, ''on a timely basis,'' in
331.3(c)(1)(iv) and 331.3(c)(2)(ii), if given a narrow interpretation,
might suggest that timeliness of delivery is the only condition for
granting a waiver. That commentator points out that other conditions
also may warrant consideration. The Board agrees with the commentator,
but it does not believe that a modification of its proposal is necessary
to avoid the narrow interpretation feared.
In the interest of clarity, the waiver provision in 331.6(c) is
deleted from that section and transferred to 331.3(c).
The Board has revised its proposal as discussed above and has made
minor technical improvements. The revised proposal is adopted today.
04 CFR 331.80 Preamble D
04 CFR 331.80 Pt. 331, Preamble D
Preamble to Republication, 11-7-73
This publication (38 FR 30725, Nov. 7, 1973) revised and republished
part 331.
The purpose of this publication by the Cost Accounting Standards
Board is to amend parts 331, 351, 400, 401, 402, 403, and 404 of its
rules and regulations. The amendments, which are minor clarifications
to the regulations, were published in the Federal Register of September
5, 1973 (38 FR 23971). The amendments:
(a) Renumber parts 331 and 351 to facilitate insertion of future
modifications to those parts; (b) clarify one section of the contract
clause at 331.5; and (c) modify certain definitions in parts 400, 401,
402, 403, and 404 for the purposes of uniformity among the various
parts. Only one comment in response to the September publication has
been received by the Board. This expressed agreement with the proposed
changes.
In view of the foregoing, the following amendments to the Board's
regulations are being made effective November 7, 1973:
04 CFR 331.80 Preamble E
04 CFR 331.80 Pt. 331, Preamble E
Preamble to Amendment of 9-19-74
This amendment revised paragraph (c)(4) of 331.30, and was published
on September 19, 1974, at 39 FR 33681.
The purpose of this publication by the Cost Accounting Standards
Board is to adopt a modification to part 331, Contract Coverage, of its
rules and regulations. The modification adopted today was initially
published in the Federal Register of August 9, 1974 (39 FR 28645).
Comments regarding that notice of proposed rulemaking were invited to be
submitted to the Board by September 9, 1974.
The August 9, 1974, publication proposed an amendment to
331.30(c)(4) to permit, under certain circumstances, submission of
waiver requests from a level below that of the agency head. No
objection to the Board's proposal has been made. Therefore, the
proposal has been adopted for the reasons expressed in the August 9,
1974, publication.
04 CFR 331.80 Pt. 331, Preamble F
04 CFR 331.80 Preamble F
Preamble to Amendments of 12-24-74
This document amended 331.30(a), added 331.30(b)(8), and amended
331.40 and 331.50. It was published Dec. 24, 1974, at 39 FR 44389.
The purpose of this publication by the Cost Accounting Standards
Board is to adopt modifications to part 331, Contract Coverage, and part
351, Basic Requirements, of its rules and regulations. These
modifications will provide an exemption from Cost Accounting Standards
Board requirements for certain national defense contracts and
subcontracts of $500,000 or less.
Public Law 91-379 requires that Cost Accounting Standards must be
used in all negotiated prime contract and subcontract national defense
procurements with the United States in excess of $100,000, with certain
stated exceptions. From time to time the Board refers to contracts
subject to its rules and regulations as ''covered contracts''. Section
719(h)(2) of Pub. L. 91-379 authorizes the Cost Accounting Standard
Board to prescribe rules exempting from its requirements such classes or
categories of national defense contractors and subcontractors as it
determines, on the basis of the size of the contracts involved or
otherwise, are appropriate and consistent with the purposes sought to be
achieved by Pub. L. 91-379. The Board has granted several exemptions
to classes or categories of contractors and subcontractors and also has
established a procedure under which waiver of the Board's requirements
may be granted for individual contracts.
A proposed exemption increasing the minimum contract amount requiring
compliance with Cost Accounting Standards Board rules, regulations and
Standards from $100,000 to $500,000 was published by the Board on
September 27, 1974 (39 FR 34669). The Board received 82 responses to
the September 27 proposal. Comments were received from individual
companies, government agencies, professional associations, industry
associations, public accounting firms, and individuals. All of these
comments have been carefully considered by the Board, and the Board
takes this opportunity to express its appreciation for the helpful
suggestions which have been furnished.
The comments below summarize the major issues discussed by
respondents in connection with the initial publication and explain the
Board's disposition of these issues.
Issuance of the exemption. Practically all the commentators
expressed concurrence in the proposed exemption, giving either
unqualified support or support with added comments that additional
exemptions should also be considered. However, three commentators -- a
consulting firm, a major aerospace company and a Government agency --
disagreed with the proposed exemption, stating that an increase in the
threshold for compliance with CAS requirements was inconsistent with the
Board's objective of establishing uniformity and consistency among
contractors doing business with the Government.
The Board agrees that the adoption of the proposed regulation will
exempt a substantial number of contractors and subcontractors who
otherwise would be covered, and consequently will permit such companies
to follow accounting practices other than those set out in Cost
Accounting Standards. However, the Board is aware that compliance with
its rules, regulations and standards may involve additional
administrative effort, particularly on the part of small companies,
which may not be commensurate with the benefit to the Government or the
contractor resulting from such compliance. The Board, after considering
the efforts required by both the Government and its contractors to
assure compliance on all covered contracts in excess of $100,000, is
persuaded that maximum benefit to the Government with minimum cost can
be achieved by limiting the mandatory application of its standards to
contractors who receive awards which constitute a substantial majority
of the national defense procurement dollars. As was stated at the time
the proposed exemption was issued for comment, some 70 percent of the
prime contractors of the Department of Defense did not receive one or
more negotiated awards in excess of $500,000 in Fiscal Year 1973. Thus,
only 30 percent, or approximately 750 prime contractors, who received
contract awards totaling $20 billion, would continue to be covered. The
exemption would remove coverage from only about 10 percent of the dollar
value of annual DOD awards.
In view of the foregoing, the Board considers the proposed exemption
increasing the minimum contract amount requiring compliance with the
Cost Accounting Standards Board rules, regulations, and standards to be
in keeping with the purposes sought to be achieved by Pub. L. 91-379
and to be an appropriate exercise of the authority granted to the Board
by section 719(h)(2) of that law.
Increase exemption on all contracts to $500,000. A number of
commentators suggested that the $500,000 single contract threshold for
compliance with Board rules, regulations, and standards be changed to
exempt all contracts of $500,000 or less. Those giving reasons in
support of this suggestion generally based their comments on
simplification of administration. These commentators felt that it would
be difficult for the Government or prime contractors, when awarding a
prime contract or subcontract in excess of $100,000 to determine whether
the contractor or subcontractor had in existence a prior $500,000
covered contract.
The Board, in proposing the $500,000 threshold, did so with the
intent of exempting those companies which do not receive contracts in
excess of $500,000 from the Government. However, it was decided in the
interest of consistency in cost accounting practices that once a
contractor had received a covered contract of that size, compliance with
CASB rules, regulations and standards on contracts at the level
established in Pub. L. 91-379 was appropriate. This is also consistent
with the desire expressed by contractors to follow a single set of
accounting practices. Further, the requirement for coverage of
contracts in excess of $100,000 where the contractor already has
received a covered contract in excess of $500,000 will permit the small
contracts to be available for equitable adjustment if subsequently
issued standards should become applicable. Moreover, once the
administrative effort has been expended to comply with standards for
contracts in excess of $500,000, compliance with standards on contracts
above the statutory threshold of $100,000 requires little added effort.
With respect to the commentators' statements concerning the
difficulties, when making an award exceeding $100,000, of determining
whether a contractor or subcontractor had in existence a prior award
exceeding $500,000, the Board feels that an administrative requirement
can be established for obtaining this information. A similar
requirement now exists concerning the disclosure statement, whereby
contractors are required to submit a disclosure statement, state that
they have previously filed a disclosure statement, or submit a
certificate of monetary exemption. The Board feels that a similar
requirement can be set concerning the $500,000 level. The Board is not
persuaded that this matter would create problems of sufficient
significance to eliminate coverage down to the $100,000 level.
In considering the advantages of the exemption as proposed compared
to its assessment of the administrative difficulties foreseen by
commentators, the Board is persuaded that its proposal relative to
coverage of awards in excess of $100,000 should not be changed.
Exemption based on sales. A number of commentators urged that the
Board establish an exemption based on sales, using either minimum annual
dollar amount of sales to the Government, or Government sales as a
percentage of total annual sales, or a combination of these two factors.
The most frequently suggested amount was $10 million of sales to the
Government or Government sales amounting to 10 percent of total annual
sales. The objective sought by these commentators was an exemption of
those companies or business units whose sales to the Government
constituted a reasonably small portion of their total annual sales and
whose business was essentially commercially oriented.
The Board has given lengthy consideration to the use of a sales basis
for the establishment of a minimum threshold for compliance with its
rules, regulations and standards. It did not use that basis at this
time due to the nature of the problems involved in administering an
exemption based on sales. In either of the situations suggested by
commentators, the representation concerning the amount of sales must be
made by the contractor and subsequently verified by the Government.
This verification would impose very substantial and time-consuming
efforts on both the Government and the contractor. Particularly in the
case of Government sales as a percentage of total sales, Government
representatives would be placed in the position of examining a
contractor's total sales, including those made in its commercial
business. Examination of a company's records concerning its total sales
is not presently performed by Government procurement activities and
would present new and unique problems to both parties as well as
requiring substantial additional effort on the part of Government
representatives.
An exemption based on sales would require a measurement period during
which a contractor's status with respect to compliance with standards
would be determined. Contracts under which sales were recorded during
this period would not be subject to standards. If the volume of sales
during the measurement period exceeded a stated threshold, a contractor
would then be required to comply with standards under contracts received
in subsequent periods. Thus, the contracts that brought the contractor
under the Board's rules would not be subject to standards, while those
received at a later time would be.
The Board has decided that the administrative problems involved with
an exemption based on sales should be considered before establishing
such a threshold. The Board will continue to study these problems and
investigate whether exemptions based on criteria other than a minimum
contract amount would be appropriate and consistent with the purposes of
Pub. L. 91-379.
Retroactivity. Several commentators requested that the Board modify
its proposal so as to provide retroactive exemption to existing
contracts where the circumstances are such that these existing contracts
would have been exempt if awarded after the effective date of the
proposed regulation.
The Board has no authority to modify existing contractual agreements
between the government procurement agencies and their contractors.
However, the Board sees nothing inconsistent with its regulations or
with Pub. L. 91-379 in modification by the procurement agencies of
contracts in this category, assuming of course that the Government
receives adequate consideration for deletion of the CAS requirements.
Increase minimum amount. A number of commentators recommended that
the exemption proposed be increased to an amount greater than $500,000,
the figure of $1,000,000 being frequently mentioned. The Board is not
now prepared to raise further the minimum contract amount requiring
compliance with its promulgations. The Board, in studying an exemption
based on minimum contract amount, concluded that the $500,000 threshold
was the most appropriate one for achieving its objectives, all factors
considered. The Board will continue to examine various limitations but
considers that the threshold established in the proposed exemption best
meets its requirements and obligations at this time.
Effect of final payment under contracts subject to CAS clause.
Several commentators urged that the exemption of contracts of $500,000
or less should not be dependent on the final payment on contracts which
are subject to Board requirements, on the grounds that final payment can
occur a substantial period of time after completion of work on a
contract and that there are many technicalities in closing out a
contract which do not involve cost accounting applications.
The Board considers this point to be well taken and has changed the
requirement in 331.30(b)(8) where it first appears to ''notification of
final acceptance of all items or work to be delivered.'' At that time it
is considered that all direct costs will have been charged to the
contract since all work will have been completed, and any further
accounting transactions would be the result of adjustments not directly
related to contract performance.
Reduction of contract price by exclusion of commercial items. Some
commentators, in reading the introductory comments to the Board's
initial publication of this exemption, interpreted the phrase ''minimum
contract amount requiring compliance'' in a manner not at all intended
by the Board. These commentators interpreted this phrase to permit the
price of a contract subject to standards to be reduced by the value of
those individual contract items or subassemblies of final contract items
whose prices could be considered to be ''catalog'' or ''market'' prices,
if sold separately. They requested that the regulation be clarified to
reflect their interpretation of the Board's introductory comments.
Those requesting this clarification misunderstood the Board's
intentions. The Board does not intend that the price of a contract be
adjusted to exclude the price of items or subassemblies which, if
purchased separately, might be exempt from the Board's promulgations.
Consequently, the change in the regulation requested by commentators on
this point would be completely inappropriate.
Definition of contractor. One commentator noted that the prefatory
comments to the Board's September 27, 1974, publication specifically
mentioned the fact that receipt of a contract in excess of $500,000 by
one business unit of a multi-unit company would not in itself require
other units of the same company to follow Board requirements. This
commentator requested that the definitions of ''defense contractor'' and
''defense subcontractor'' contained in 331.20 (b) and (c) be modified
to reflect this intention by the Board.
As the Board stated in its September 27 publication, its contract
requirements have been applied to business units, such as a profit
center, division, subsidiary, or similar unit of a company, which
perform the contract, even in those cases where the contract was entered
into on behalf of the overall company rather than the business unit.
This application of the Board's requirements to a performing business
unit is well established and unchallenged, and clarification of the
definitions of ''contractor'' and ''subcontractor'' does not appear
necessary.
Effective date. Several commentators raised questions concerning the
effective date of the eligibility for this exemption in relation to
awards received prior to January 1, 1975. Contractors who have received
a prime contract or subcontract in excess of $500,000 subject to cost
accounting standards prior to January 1, 1975, and on which notification
of final acceptance of all items or work to be delivered on that
contract or subcontract has not been received, is a contractor who has
''already received a contract or subcontract in excess of $500,000,'' as
that phrase is used in 331.30(b)(8). Therefore, today's publication
requires that a contractor meeting this test will be required to comply
with standards on all covered prime contracts or subcontracts in excess
of $100,000 received after January 1, 1975, under the provisions of
331.30.
04 CFR 331.80 Pt. 331, Preamble G
04 CFR 331.80 Preamble G
Preamble to Amendments of 2-2-76
This amendment added paragraph (b)(9) to 331.30 and was published on
February 2, 1976, at 41 FR 4809.
Purpose. The purpose of this publication by the Cost Accounting
Standards Board is to adopt a modification to part 331, Contract
Coverage, of its rules and regulations. This modification will provide
a conditional exemption for contracts and subcontracts made with United
Kingdom firms for performance substantially in the United Kingdom.
The Cost Accounting Standards Board is authorized by Pub. L. 91-379
to prescribe rules and regulations exempting from its requirements such
classes or categories of defense contractors or subcontractors under
contracts negotiated in connection with national defense procurements as
it determines, on the basis of the size of the contracts involved or
otherwise, are appropriate and consistent with the purposes sought to be
achieved by the Act. Pursuant to this authorization the Board has
issued a regulation, 331.30, Applicability, exemption and waiver, of
Title 4, Code of Federal Regulations, which, among other things,
establishes a procedure by which procuring agencies may request a waiver
of the Board's requirements for a particular contract or subcontract.
The Board from 1972 to date has granted 45 waivers requested by
procuring departments and agencies. Of that number, 23 were for
contracts or subcontracts to be performed by United Kingdom firms each
of which is a defense supplier to the U.K. Government and also is
essentially a sole source supplier for the particular item being
purchased by the U.S. Department of Defense. The waivers granted to
U.K. firms have been based in general on the urgency and essentiality of
the procurements, which were reported to preclude any alternative to
making the proposed awards. However, the U.K. firms were reported as
having objections to complying with the Board's rules and regulations,
on the grounds that their accounting practices have been approved by the
U.K. Government, their major customer, and may not thereafter be changed
without further approval. They were reported as stating that they
cannot assume an obligation to comply with Cost Accounting Standards
which could be in conflict with U.K. Government Accounting Conventions
and the governmentally approved accounting practices for the individual
firms.
In view of the recurrence of this position and the high proportion of
waiver requests involving U.K. firms, the Board undertook discussions
with the U.K. Ministry of Defence concerning the application of Cost
Accounting Standards and the Board's rules and regulations to firms
which are U.K. defense contractors. As a result of these discussions it
has been determined that U.K. defense contractors do disclose their
accounting practices to the Ministry of Defence and that the Ministry of
Defence approves companies' practices which then cannot be changed
without further approval. It has further been determined that a Review
Board for Government Contracts, whose chairman and members are nominated
by the Government and industry and appointed by the Treasury, but which
is established as an independent organization, among other duties
periodically reviews and makes recommendations for changes in U.K.
Government Accounting Conventions. The Review Board has also issued or
sponsored certain cost accounting standards for use by U.K. firms in
contracting with the Ministry of Defence.
On November 17, 1975, the Board published for public comment in the
Federal Register (40 FR 53271) a proposal for a conditional exemption
for U.K. firms performing substantially in the U.K. Nine responses were
received to that publication. Responses were received from government
departments, defense contractors, an industry association and two
individuals. All of these comments have been considered by the Board,
and the Board takes this opportunity to express its appreciation for the
helpful suggestions which have been furnished.
The comments below summarize the major issues discussed by
respondents to the initial publication and explain the Board's
disposition of these issues.
U.K. Government Accounting Conventions. Two United States Government
departments were concerned that the reference in the proposed
conditional exemption to the obligation of U.K. firms to disclose cost
accounting practices which would be in accord with U.K. Government
Accounting Conventions implied or could be understood to require that
when matters mandated by the Conventions were in conflict with certain
requirements of the Armed Services Procurement Regulation and Energy
Research and Development Administration procurement regulations, the
policies of the Conventions would prevail.
One of the departments pointed out that the Conventions permit
reimbursement of four kinds of costs which are either by U.S. law or by
U.S. procurement policy not allowable costs in U.S. contracts. These
are entertainment expenses, product advertising, certain donations and
certain non-incurred capital costs. The Board recognizes that the
Conventions deal broadly with matters which can be regarded as relating
to both allocability and allowability of costs. They do indicate that
in certain circumstances, the indicated costs are allowable costs under
U.K. contracts. However, cost accounting practices covered by Disclosure
Statements do not deal with the allowability of costs, only with their
measurement and allocation. Where appropriate, a disclosed practice
must result in measurement and allocation of a cost in accord with the
Conventions; whether that cost is or is not allowed as a cost under
U.S. contracts is a matter for agreement by the parties to the contract
and is not affected by the requirement that disclosed cost accounting
practices be in accord with the Conventions.
Secondly, the department points out that the profit formula used by
the U.K. Government is different from the profit formula used in U.S.
negotiated procurements. The U.K. profit formula, however, is not a
part of the U.K. Government Accounting Conventions governing cost
accounting practices, nor does the Disclosure Statement deal with policy
on which profits are determined. Consequently, a requirement that
disclosed cost accounting practices be in accord with the Conventions
does not impinge on the authority of U.S. officials to prescribe policy
for the determination of profits under U.S. prime or subcontracts.
Thirdly, the department notes that there are differences between the
U.K. Government Accounting Conventions concerning independent research
and development and the provisions in ASPR Section XV which are used for
compliance with Pub. L. 91-441. Pub. L. 91-441 makes Department of
Defense appropriations unavailable for payment of a contractor's
independent research and development or bid and proposal costs, unless
the work which is paid for has a potential relationship to a military
function or operation and unless other conditions are met. The most
important of the other conditions is that there be an advance agreement
with the contractor. What has been said above about the allowability of
costs is applicable to this point also. Furthermore, nothing in the
Board's conditional exemption in any way controls the terms and
conditions upon which the Department of Defense may agree in advance
with a U.K. firm for the reimbursement to it of independent research and
development and bid and proposal costs.
Additionally, the department notes potential differences in the
treatment of depreciation costs under the Conventions and under the
applicable ASPR requirements, unmodified by the Board's Cost Accounting
Standards. The comment does not specify, nor does the Board find, any
significant differences at present. The Board does recognize that both
the U.S. and U.K. Governments may modify their tax laws and their
procurement regulations with an objective to encourage capital
investment, and that differences could some day arise. In such case,
the Conventions permit sufficient flexibility in individual cases to
allow U.S. agencies to reach agreement with U.K. firms on appropriate
annual depreciation costs.
Finally, this department has consistently requested unqualified
waivers from the Board for use in its prime and subcontracts with U.K.
firms. Such firms have in fact been required to follow U.K. Government
Accounting Conventions on their work for the U.K. Government, and the
department has been able to negotiate mutually agreeable prices for
contracts with them despite this circumstance. Under the Board's
conditional waiver, the department will have the advantage of a
Disclosure Statement from such firms, which could not have been
available when an unconditional waiver was sought and which should be of
material assistance in the negotiation and audit of new contracts.
The Board is glad that these questions were raised but does not
believe it is necessary to modify its proposed conditional exemption to
resolve them.
It is appropriate to note here that the Board has not specifically
required access to records of U.K. firms by appropriate U.S. officials,
as it might have done. Such a requirement appears unnecessary in view
of the standard provisions for access to records contained in U.S.
defense contracts and subcontracts for performance in the U.K. Access to
records through such standard provisions in those contracts will be
adequate to assure contractor compliance with the consistency
requirement of the conditional exemption.
Another commentator opposed the proposal largely on the basis of his
belief that the proposal would require adoption by U.S. price
negotiators and auditors of the pricing practices followed by the U.K.
Ministry of Defence. This belief appears to have been based on the
reference in the proposal to U.K. Government Accounting Conventions.
The Board sees nothing in the conditional exemption which would require
U.S. negotiators to accept pricing practices contrary to U.S.
procurement regulations and the agreements which U.S. negotiators reach
with U.K. firms in the pricing of prime or subcontracts.
This commentator also indicated that not all U.K. firms which are
U.S. prime or subcontractors are also suppliers to the U.K. Government.
The Board agrees that this could be the case and believes that if so, it
is not appropriate for the Board to require that all U.K. firms
necessarily adopt the U.K. Government Accounting Conventions. It has
consequently modified its proposal to provide that disclosed practices
must be in accord with the Conventions only when the disclosing
contractor is already required to follow the Conventions. Thus, certain
U.K. firms may be subject to neither Cost Accounting Standards nor U.K.
Government Accounting Conventions. In such cases, U.S. negotiators must
use that firm's Disclosure Statement in arriving at agreement on the
cost accounting practices to be followed in contracts subject to the
conditional exemption.
Retention of disclosure statements. A commentator pointed out that
while the Board had proposed that Disclosure Statements submitted by
U.K. firms be filed with the U.K. Ministry of Defence, the Board had not
specified that the Statements would be retained in the Ministry. Since
that was in fact the Board's intention, the Board has adopted a
modification to its proposal in order to make that intention clear.
Prime contractor-subcontractor relationships. Two matters relating
to prime contractor-subcontractor relationships were raised. A
commentator pointed out that a U.K. subcontract might be subject to
price adjustment if the subcontractor changed its disclosed cost
accounting practices during contract performance. In such a case, the
Government's action would presumably be to require a corresponding
change in the cost or price of the prime contract. The Board agrees
that this is so, and prime contractors may wish in the future, as some
have done in the past, to obtain agreement with U.K. subcontractors for
appropriate indemnification in the event the subcontractor's change in
practices causes a modification in the cost or price of the prime
contract. The Board previously discussed this situation in its original
publication of 4 CFR 331.50 and does not consider that specific language
addressed to this matter is required to be included in the conditional
exemption.
Another commentator stated that it was confident that the Board did
not intend that the conditional exemption apply to U.S. subcontractors
under prime contracts with U.K. firms and urged the Board to address
this matter specifically. The Board's proposal does not require any
flow-down of the clause, ''Consistency in Cost Accounting Practices'',
from U.K. prime contractors to first tier or lower tier subcontractors.
The Board may, after experience in use of that clause is gained,
reconsider this matter. In that case, the Board would then have to
consider whether it would be appropriate for the Board to require that a
U.K. prime contractor be required to pass down to any subcontractor,
whether or not a U.S. subcontractor, a more extensive contractual
obligation than is imposed on the prime contractor. For the time being,
the Board notes the likelihood that U.S. subcontractors under U.K. prime
contracts will already be subject to Cost Accounting Standards by reason
of other covered prime or subcontracts which that firm has entered into.
If this prior coverage has not taken place, the Board believes that the
value of achieving coverage through a flow-down provision in a U.K.
prime contract is too insignificant to justify the administrative
complexities of such a provision.
Further exemptions for foreign suppliers. A commentator, not wishing
to comment on the present proposal, nevertheless recommended that the
Board exempt all foreign suppliers, on the ground that problems in the
administration of the CAS clause are matters of contention and, in the
opinion of the commentator, pose relatively greater difficulties in the
administration of foreign contracts.
The Board has announced the establishment of projects to investigate
the administrative concerns of this commentator and others, and if those
concerns prove to be substantial, the Board will take appropriate
action. In the more than four years during which the CAS clause has
been required to be included in all appropriate foreign contracts and
subcontracts, absent a waiver, the Board has heard of no problem in the
administration of the clause which has posed any problem in foreign
contracts.
Whenever the Board believes a waiver of the CAS clause for foreign
firms has been persuasively proposed by a contracting agency, it will
grant such a waiver, but the Board's experience to date does not
indicate to it any reason to consider a blanket waiver for all foreign
prime contracts and subcontracts.
Miscellaneous comments. One commentator, from a major defense
contractor, deserves note by the Board because of what the Board
perceives to be major misconceptions and erroneous assumptions
underlying the comment.
The comment opposed the proposal for a conditional exemption and
favors an unqualified exemption. One reason given, to quote from this
comment, is:
By requiring a contract clause which will provide for a penalty to be
paid by the U.S. prime contractor in the event that a U.K.
subcontractor fails to consistently follow disclosed cost accounting
practices where such failure results in increased costs paid by the U.S.
Government, is to impose on the U.S. primes an obligation so vague and
impracticable as literally to be unique in the history of bilateral
contracting.
The Board believes this comment is wholly inaccurate. First, the
obligation to consistently follow disclosed or established cost
accounting practices is not imposed by the Board's current proposal --
it has been present in every U.K. prime contract or subcontract subject
to the CAS clause. Secondly, exactly the same obligation of a prime
contractor has existed for years with respect to every subcontract it
makes which includes the CAS clause. The Board does not believe that
the obligation arising under the conditional exemption is either vague
or impracticable, and it knows it is not unique.
Additionally, this commentator with respect to the same obligation
stated:
For the U.S. Government to impose such alien rules on the defense
contracting community in the United Kingdom * * * where neither the
Government of the United Kingdom nor the contractors have determined for
themselves that there are benefits to the imposition of such punitive
rules regarding accounting practices seems patently absurd. Further, to
impose on the procurement process such a nebulous and one-sided
contractual requirement by the use of the regulatory procedures which
will render the clause ''mandatory and non-negotiable'' is to express an
unwarranted contempt by the United States for the standards and
practices of business accounting and contracting procedures of the
United Kingdom.
Apart from the commentator's several adverse characterizations of the
Board's requirements, which are discussed generally below, this portion
of its comment does not appear to recognize that the Board's proposal
was discussed with the U.K. Government and with representatives of the
British defense industries. Through meetings in both Washington and
London and through continuing, close consultations, the Board has
confidence that its proposal has been carefully reviewed and discussed
within the United Kingdom and that its adoption will be welcomed by the
firms and governmental agencies affected by it. This careful
consultation, and the Board's subsequent proposal for a conditional
exemption, arose out of the Board's respect for, not its contempt of,
the standards and practices of cost accounting in the United Kingdom.
Finally, this commentator expressed its view that there have been no
discernible benefits whatever from the Board's regulations and its
further view that the Board has abundant evidence that its regulations
requiring consistency in following disclosed cost accounting practices
have resulted in ''substantial impairment of the economy, efficiency,
and effectiveness of procurement * * *''. The commentator concluded
this point by stating that since it regards the Board's consistency
requirement to be ''unfair, unworkable and doubtfully enforceable'', it
would use the proposed conditional exemption for U.K. firms only ''with
shame and reluctance.''
The Board has received reports from procurement agencies of major
benefits stemming from use of its consistency requirements, and the
Board believes that they have unquestionably improved the economy,
efficiency and effectiveness of procurement. The Board believes that
those requirements are fair, workable and enforceable.
As noted above, the Board is currently investigating suggestions made
by some U.S. defense contractors, including this commentator, to
determine whether there are substantial problems in the administration
of its requirements to follow disclosed accounting practices
consistently. The commentator offers no information concerning any such
problem, only its conclusion that the Board has acted wholly improperly
in proposing the U.K. conditional exemption. The Board does not agree.
Costs and benefits. The Board discerns no significant cost or
inflationary impact of the conditional exemption.
The benefits include a substantial reduction in the number of waiver
requests for United Kingdom firms, while establishing a consistency
requirement for all U.K. contractors which is necessarily lost when all
Board requirements are waived.
A United Kingdom firm could find that its obligations to follow U.K.
Government Accounting Conventions might require the firm to change a
disclosed cost accounting practice. In such an event, the Board hopes
that the cost impact on U.S. contracts or subcontracts of any such
change would be negotiated in advance of the effective date of a change
to the Convention, so as to avoid the imposition of any interest charges
on increased cost paid by the United States. The negotiation relating
to a change in disclosed practices would be patterned on the similar
negotiation required under Section (a)(4)(B) of the Cost Accounting
Standards Clause.
In view of the foregoing, the following change to part 331 of the
Board's regulations is being made effective February 2, 1976.
04 CFR 331.80 Pt. 331, Preamble H
04 CFR 331.80 Preamble H
Preamble to Amendments of 9-12-77
The amendments to 4 CFR part 331, 42 FR 45625, Sept. 12, 1977 were
published as a part of the document which set forth the original 4 CFR
part 332 and amendments to parts 351 and 403. The complete Preamble
appears in the supplement to part 332.
04 CFR 331.80 small business
Several commentators urged that all businesses which qualify as small
business concerns under the rules and regulations of the Small Business
Administration be exempted. The February 16, 1977 proposal would have
provided such an exemption only for a small business which received less
than $10 million in awards during its preceding fiscal year. Modified
coverage would have been provided for other small businesses. Research
indicates that there are very few companies which would fall into the
category of small businesses receiving awards of $10 million or more.
In the interest of using a single test, i.e., whether the contractor
qualifies as a small business concern, rather than a dual test which
would result only in a few small businesses being subject to modified
coverage, the Board has adopted the recommendation to exempt all small
business concerns. Research indicates that if this action had been
applied to Federal Fiscal Year 1976 it would have resulted in exemption
of 196 small business concerns which were doing business with the
Department of Defense and which had $460 million of contracts of the
type subject to Cost Accounting Standards. Consequently, on average,
each small business concern would have a relatively small amount of
covered contracts.
04 CFR 331.80 other categories
Various commentators renewed previous recommendations that the Board
exempt other categories of contracts and contractors. The categories
included colleges, universities, nonprofit organizations, hospitals, and
government-owned contractor-operated facilities. The Board has
considered these recommendations and concluded that none of these
categories should be exempted.
04 CFR 331.80 effective date
The effective date of the regulations being published today is March
10, 1978. Pub. L. 92-379 provides that regulations shall take effect
not earlier than the expiration of the first period of sixty calendar
days of continuous session of the Congress following the date on which a
copy of the regulations is transmitted to the Congress. The calendars
of the Congress indicate that the required sixty days will not pass
until some time in February 1978. Accordingly, March 10, 1978, has been
selected to assure sufficient time for the regulation to lie before the
Congress.
04 CFR 331.80 Pt. 331, Preamble I
04 CFR 331.80 Preamble I
Preamble to Amendments of 10-5-77
This document added 331.71 and was published Oct. 5, 1977, at 42 FR
54254.
Summary. This modification of the Cost Accounting Standards Board's
rules and regulations provides criteria for determining the materiality
of costs in given circumstances, in applying words or phrases of
materiality used in Cost Accounting Standards, and to limit price
adjustments to material amounts of cost.
Supplementary information. A discussion of the background and public
comments reveived in response to the initial publication of these
regulations and of the principal issues considered in preparing the
final promulgation precedes the regulations.
The purpose of this publication by the Cost Accounting Standards
Board is to adopt a modification to part 331, Contract Coverage, of its
rules and regulations. The modification will provide criteria for
determining the materiality of amounts of cost in given circumstances.
The Board initially considered publishing a definition of the terms
''cost accounting practice'' and ''change to either a disclosed cost
accounting practice or an established cost accounting practice'' along
with the modification dealing with materiality. That definition is
being handled separately by the Board, however, and will be considered
at a later date.
The Board is authorized by Pub. L. 91-379 to prescribe rules and
regulations for implementing Cost Accounting Standards. Pursuant to
this authority, the Board is today issuing a modification to its
regulations. Contractors and procurement agencies engaged in the
implementation and administration of CASB rules, regulations, and
Standards have recommended that the Board provide guidance concerning
materiality in the administration of the Board's rules, regulations, and
Standards.
Representatives from various organizations affected by Standards have
pointed out that guidance in this area will facilitate the
implementation and administration of CASB pronuncements. A similar
recommendation was also received by the Board at an Evaluation
Conference in June 1975. The General Accounting Office's Status Report
on the Cost Accounting Standards Program -- Accomplishments and Problems
(PSAD -- 76-154, Aug. 20, 1976), also referred to the need for guidance
on this subject.
Research in this area included a review of data submitted by
participants in the Evaluation Conference, an analysis of papers
submitted by various contractors, professional groups, trade
associations, and Government agencies, as well as a review of existing
procurement regulations, and existing CASB promulgations. A Staff draft
of an amendment dealing with materiality criteria and price adjustments
was distributed on August 13, 1976. Responses from 53 sources
contributed to the Board's further consideration of the issues involved
in this proposed amendment.
A proposed amendment to the Board's regulations was published in the
Federal Register on February 3, 1977 (42 FR 6591). A total of 45
responses were received from individual companies, Government agencies,
professional associations, industry associations, universities, and
others. The Board takes this opportunity to express its appreciation
for the helpful suggestions and criticisms which have been furnished.
The comments furnished by the organizations and individuals have
resulted in a number of changes in the amendment being promulgated
today. The following material summarizes the issues regarding
materiality that were discussed by respondents in connection with the
proposed modification and explains the changes made to the proposal
published February 3, 1977. The still relevant portions of the comments
which accompanied the February 3, 1977, publication have been
incorporated in this material.
04 CFR 331.80 Materiality Criteria
Generally, commentators felt the proposed materiality criteria were a
necessary, positive and useful step. However, some commentators
suggested that the proposed criteria were not sufficiently specific and
would not resolve the materiality questions that currently exist. Some
commentators suggested that quantitative criteria be added to the
proposed regulation; others suggested that the criteria proposed were
suitable.
At the present time, the Board is of the opinion that quantitative
limits should not be established for materiality determinations. The
essence of materiality criteria is to allow for the excise of judgment;
and absolute dollar amount in one case may be material while in another
case the same amount may be immaterial. Accordingly, quantitative
limits have not been added to the proposed amendment.
The materiality criteria being promulgated are designed for use in a
variety of situations and to resolve issues which have been raised by
various sources, Cost Accounting Standards establish the cost accounting
appropriate for the determination of contract costs. Departure from the
requirements of these Standards may occur and the cost effects of such
departure may be immaterial. The criteria serve to limit price
adjustments to material amounts of cost. The regulation also describes
the actions to be taken when immaterial amounts of cost are involved in
noncompliance with Standards. The criteria for materiality are also to
be used in applying words or phrases of materiality used in Cost
Accounting Standards. In particular Standards, the Board will continue
to give consideration to defining materiality in a specific manner as to
either the entire Standard or any provision thereof, whenever it appears
feasible and desirable to do so.
04 CFR 331.80 Administrative Costs
Commentators proposed that the administrative cost of processing a
change in cost accounting practice to both the Government and the
contractor should be one of the criteria used in determining
materiality. The Board's initial publication did not provide for
consideration of these costs in determining materiality. Generally,
such costs on the part of both the Government and the contractor are
absorbed as part of their routine operations. On a conceptual basis,
the determination of materiality should be made considering only the
amount of costs affected by the proposed changes. As a practical
matter, however, the administrative cost to process a contract price
adjustment is a factor in a materiality decision.
The Board is persuaded that the administrative cost of processing a
change in cost accounting practice should influence a decision as to
materiality. For example, if it is estimated that costs would be
changed by $10,000 through processing a change at a
Government-contractor administrative cost of $10,000, then processing
the change would be nonproductive whether or not, considering all
materiality factors, the estimated change in costs of $10,000 would be
judged material. Accordingly, the Board has added a provision to this
modification dealing with such costs.
04 CFR 331.80 Measurement of Cost Impact
Commentators suggested that the Board's regulations provide that
initially the determination of materiality should be done on a gross,
overall, basis rather than on an in-depth cost impact study. These
commentators asserted that a provision of this type would help to reduce
the time and cost of evaluating and processing proposed changes which
are judged to have an immaterial impact. Procedures for measuring and
processing cost impact due to both changes in cost accounting practice
and noncompliances with Cost Accounting Standards have been developed by
the procurement agencies, and they now require an estimate of the
general dollar magnitude of the change as a first step in the process.
The Board encourages the use of the materiality criteria promulgated
today in conjunction with the existing two-stage cost impact evaluation
procedure provided in procurement agency regulations. The Board
believes that the effective use of procedures established in agency
regulations will accomplish the saving in time and cost desired.
Some Government commentators proposed that 331.71(b)(2) be deleted.
They expressed the view that it dealt with administrative matters and
not criteria for the determination of materiality. The question of both
the contractor's and the Government's responsibility in situations where
noncompliance with Cost Accounting Standards resulted in a cost impact
which is immaterial has frequently arisen. The Board believes that the
implementation and administration of cost accounting rules, regulations,
and Standards will be facilitated by a statement of the Board's position
on this matter. Accordingly, the Board believes that the section in
question should be retained in its regulations.
04 CFR 331.80 Retroactive Application
Commentators expressed concern that 331.71(b)(2) would be applied
retroactively to immaterial items. The language of this section
requires that it be applied to the accounting period for which the cost
impact of a noncompliance becomes material and to succeeding cost
accounting periods. In any cost accounting period prior to that, by
reason of the provisions of this requirement, the cost impact of the
noncompliance would have been determined to be immaterial. Thus, no
contract modification was or is required.
04 CFR 331.80 Illustrations
The February 3, 1977, proposal contained two illustrations of the
application of the materiality criteria. A number of commentators
stated that the illustrations were too basic to be useful, and that the
problems related to the determination of materiality are too numerous
and too complex to be adequately illustrated in a regulation of this
type. The commentators suggested that the illustrations be eliminated.
The Board agrees, and has eliminated the examples in this section.
04 CFR 331.80 Pt. 331, Preamble J
04 CFR 331.80 Preamble J
Preamble to Amendments of 3-10-78
The document published at 43 FR 9775, Mar. 10, 1978, added
331.20(h), (i), and (j), 331.50(a)(4)(C), 331.51, 332.50(a)(5), and
332.51, revised 331.50(a)(4)(B), and (d) introductory text and (d) (1)
and (2), and amended parts 351, 403, 406, and 409.
The purpose of this publication by the Cost Accounting Standards
Board is to adopt a modification to part 331, Contract Coverage, and
part 332, Modified Contract Coverage, of its rules and regulations. The
Board is also withdrawing a proposal to modify 331.70. This
modification being adopted will (1) provide definitions of the terms
''cost accounting practice,'' and ''change to either a disclosed cost
accounting practice or an established cost accounting practice,'' (2)
permit the negotiation of equitable adjustments to reflect the cost
impact of changes agreed to by both parties to the contract, and (3)
establish the effective date for application of standards to
subcontracts. The December 1976 proposal to modify the method of
determining increased costs is being withdrawn.
The Board is authorized by Pub. L. 91-379 to prescribe rules,
regulations, and modifications for implementing cost accounting
standards. Pursuant to this authority, the Board is today issuing
modifications to its regulations. Contractors and procurement agencies
engaged in the implementation and administration of CASB rules,
regulations, and standards have recommended that the Board provide
guidance concerning the meaning of ''cost accounting practice'' and
''change to either a disclosed cost accounting practice or an
established cost accounting practice.''
Representatives from various organizations affected by standards have
pointed out that guidance in these areas will reduce disagreement and
facilitate the implementation and administration of CASB pronouncements.
Similar recommendations were also received by the Board at evaluation
conferences in June 1975 and October 1977. The General Accounting
Office's Status Report on the Cost Accounting Standards Program --
Accomplishments and Problems,'' (PSAD-76-154, August 20, 1976), also
referred to the need for guidance on these subjects.
Research in this area included a review of data submitted by
participants in the evaluation conferences, an analysis of papers
submitted by various contractors, professional groups, trade
associations, and Government agencies, as well as a review of existing
procurement regulations, the Internal Revenue Code, Accounting
Principles Board Opinion No. 20, and existing CASB promulgations. A
staff draft of amendments containing definitions of ''cost accounting
practice'' and ''change to either a disclosed cost accounting practice
or an established cost accounting practice'' was distributed on August
13, 1976. Responses from 53 sources contributed to the Board's further
consideration of the issues involved in these proposed amendments.
Proposed amendments to the Board's regulations were published in the
Federal Register on February 3, 1977 (42 FR 6591). A total of 45
responses were received from individual companies, Government agencies,
professional associations, industry associations, universities and
others. The proposed amendments were revised and republished for
comment on October 21, 1977 (42 FR 56130) and included a proposed change
to the CAS contract clause. A total of 40 responses were received to
that publication.
The Board takes this opportunity to express its appreciation for the
helpful suggestions and criticisms which have been furnished. These
comments have resulted in a number of changes and improvements in the
amendments being promulgated today. The following material summarizes
the issues discussed by respondents in connection with the proposed
modification and explains the changes made to the proposals published
February 3 and October 21, 1977. The still relevant portions of the
comments which accompanied the earlier publications have been
incorporated in this material.
04 CFR 331.80 Definition of Cost Accounting Practice
The need for a definition of ''cost accounting practice'' has been
raised by numerous inquiries from the field and by participants in the
evaluation conferences. The Board agrees, and believes that a
definition of this term can reduce disputes and contribute to increased
uniformity in the administration of the CAS contract clause.
A number of commentators expressed the view that the proposed
definition was workable and useful as presented, would serve to reduce
disagreements, and would facilitate the administration of cost
accounting standards. Some said that the proposal, if adopted, would go
a long way towards solving several problems identified in earlier
written communications to the Board and oral presentations to the Board
and its staff. Some encouraged the Board to promulgate the rule at an
early date and commended the Board for taking a very significant step
towards solving one of the troublesome and difficult areas of Cost
Accounting Standards.
Other commentators suggested that the proposed definition went beyond
the authority of the Board in that it included both the measurement of
cost and the assignment of cost to cost accounting periods.
They asserted that these are financial accounting topics and are not
within the realm of cost accounting. Still other commentators stated
that the Board was dealing with detailed practices and procedures rather
than Cost Accounting Standards and principles.
As early as March 1973, in the ''Statement of Operating Policies,
Procedures, and Objectives'' and more recently in the May 1977,
''Restatement of Objectives, Policies and Concepts,'' the Board stated
that Cost Accounting Standards will be established to define and measure
cost, determine the cost accounting periods to which costs are assigned,
and determine the manner in which costs are allocated to covered
contracts. The Board has spoken directly to the measurement of cost in
Cost Accounting Standards 404 and 412 and to the assignment of costs to
cost accounting periods in Cost Accounting Standards 408, 409 and 412.
The definitions being promulgated today are consistent with the Board's
authority and previously adopted view that cost accounting practices
include measurements of cost, assignment of cost to cost accounting
periods and allocation of costs to cost objectives.
Questions have been raised as to whether the measurement of cost
includes the determination of the price to be paid by the contractor for
goods and services. From the beginning of the project to define a cost
accounting practice, the Board has taken the position that the
determination of the amount paid or a change in the amount paid for
units of goods and services does not constitute a change in cost
accounting practices. The definition has been revised to convey this
concept more clearly.
With respect to commentators' views on the difference between Cost
Accounting Standards, principles, and practices, the Board's 1973
''Statement of Operating Policies, Procedures, and Objectives'' and the
1977 ''Restatement'' describe a Cost Accounting Standard as:
A Cost Accounting Standard is a statement formally issued by the Cost
Accounting Standards Board that: (1) Enunciates a principle or
principles to be followed, (2) establishes practices to be applied, or
(3) specifies criteria to be employed in selecting from alternative
principles and practices in estimating, accumulating, and reporting
costs of contracts subject to the rules of the Board. A Cost Accounting
Standard may be stated in terms as general or specific as the Cost
Accounting Standards Boards considers necessary to accomplish its
purpose.
This position is similar to the approach the accounting profession
takes in dealing with accounting principles for financial reporting.
The Accounting Principles Board Opinion No. 20, Accounting Changes,
states:
The term accounting principle includes not only accounting principles
and practices, but also the method of applying them.
Thus, in line with previous statements, the Cost Accounting Standards
Board reiterates its position that the terms ''principles and
practices'' include methods and techniques. The Board's position is
consistent with Pub. L. 91-379 and reflects one of the principal
purposes of setting Standards, which is to measure the full cost of
supplies and services acquired by the Government in a way that is fair
to both buyer and seller.
Commentators also raised the question of what should be the required
level of detail of a cost accounting practice. The issue is what is the
appropriate and necessary level of accounting detail for effective
implementation of Pub. L. 91-379. For cost allocation purposes the
Board has concluded that the level of detail should include not only the
type of base, e.g., direct labor, but also the composition of that base,
e.g., the elements of labor costs comprising the base. Similarly, the
level of detail should include the types of indirect cost pools as well
as the components or items of cost which make up those pools. As to
measurement of cost, the level of detail includes identification of
components of a particular item of cost and the basis on which cost is
measured.
04 CFR 331.80 Definition of Change to Either a Disclosed Cost
Accounting Practice or an Established Cost Accounting Practice
With respect to the February 3, 1977, proposed definition,
commentators requested expansion of those changes in cost accounting
practices which would not be subject to the provisions of paragraphs
(a)(4) and (a)(5) of the Cost Accounting Standards contract clause (4
CFR 331.50). Commentators recommended that changes to improve management
controls, accounting changes which the Government and contractors
believe would be beneficial in the long run, and changes due to changed
business circumstances should be added to 331.20 as actions which are
not considered as a change in cost accounting practice for purposes of
paragraphs (a)(4) and (a)(5) of the Cost Accounting Standards Contract
Clause (4 CFR 331.50).
The Board notes that in a dynamic business environment it may be
desirable to make changes of many types. These changes may include
organizational changes, changes in the way work is performed, and
changes in the product produced. There may be a variety of reasons for
these changes, such as better managerial control, new technology, or
changed business conditions.
These business changes by themselves are not changes in cost
accounting practices. Such changes may, however, cause a change in a
contractor's cost accounting practices. In a circumstance where there
is a change in a cost accounting practice, the contractor and Government
must take certain action under the provisions of the CAS contract
clause. Only when the contracting officer does not make the required
determination under the new 331.50(a)(4)(C) would contracts be amended
to insure that the Government does not pay any increased cost as a
consequence of the change.
The decision as to whether there is a change in cost accounting
practice is made through an analysis of the circumstances of each
individual situation based on the criteria being promulgated in these
regulations.
It is to be expected that the accounting system must change --
betterments, improvements, modifications or alterations to the system
are necessary to accommodate the business changes discussed above. The
Board notes that Pub. L. 91-379, in its provisions relative to failure
of a contractor to follow consistently his disclosed practices, makes no
distinction among the causes of changes in cost accounting practices.
Thus, accounting changes of the types described by the commentators,
which result in a failure of a contractor to follow consistently his
previously disclosed or established practices, remain subject to the CAS
contract clause (4 CFR 331.50). While a number of the suggestions made
have been adopted and are discussed in the following material, the
suggestions that changes in cost accounting practice due to changed
circumstances or to improve management control be excluded from
adjustment under the CAS contract cause have not been adopted by the
Board. These types of changes are subject to review and agreement by
the contracting officer and the contracts may be adjusted under new
331.50(a)(4)(C).
A number of commentators urged that changes resulting from issuances
of the Financial Accounting Standards Board should also be excluded from
paragraphs (a)(4) and (a)(5) adjustments. The legislative history
leading to creation of the Cost Accounting Standards Board shows that
standards and principles issued for financial accounting purposes were
not deemed suitable for cost accounting for negotiated Government
contracts. The Cost Accounting Standards Board views its own work as
relating directly to the preparation, use and review of cost accounting
data in the negotiation, administration and settlement of negotiated
defense contracts. The Board is the only body established by law with
the specific responsibility to promulgate Cost Accounting Standards and
these Standards have the force and effect of law in the negotiation,
administration and settlement of defense contracts.
The Board seeks to avoid conflict and disagreement with similar
organizations having other responsibilities in the area of accounting
Standards and through continuous liaison makes every reasonable effort
to do so. The Board will give careful consideration to the
pronouncements affecting financial reporting and in the formulation of
Cost Accounting Standards it will take these pronouncements into account
to the extent it can do so in accomplishing its objectives.
Nevertheless, the nature of the Board's statutory authority and its
mission to establish Cost Accounting Standards for negotiated defense
contracts is such that it must retain and exercise full respnsibility
for meeting its objectives. Accordingly, the Board has not adopted this
suggestion.
04 CFR 331.80 Alterations Not Considered Changes in Cost Accounting
Practices
The February 1977 proposed definitions specifically provided that
certain contractor actions should not be considered as changes in cost
accounting practices. These include the initial adoption of a cost
accounting practice or the elimination of a cost accounting practice. A
number of commentators expresssed the opinion that the accounting
treatment of a cost which up to a given point in time has been
immaterial in amount and now becomes material in amount is a situation
very similar to the establishment of a practice for the initial
incurrence of a cost. They pointed out that Accounting Principles Board
Opinion No. 20, Accounting Changes, treats this situation as a first
time incurrence of a cost rather than a change in accounting principle
or practice.
The Board has previously expressed the position that administration
of Cost Accounting Standards should be reasonable and not seek to deal
with immaterial amounts of costs. In concert with this position, the
Board in the October 1977 proposal modified 331.20(i) to provide that a
change in accounting for a cost which has previously been immaterial and
now becomes material is not a change in cost accounting practice.
The alterations described above are not treated under the CAS
contract clause as changes in cost accounting practices. They can,
however, result in the establishment of cost accounting practices.
Where such is the case, the requirements of the CAS contract clause (4
CFR 331.50) will apply. The new practices must be followed consistently
on all CAS contracts, and Disclosure Statements updated where
appropriate.
04 CFR 331.80 Subsequent Changes Under a Standard
The Board's October 1977 proposal provided that when a Standard with
which the contractor has complied subsequently requires the contractor
to alter a cost accounting practice in order to remain in compliance,
that alteration shall not be a change in cost accounting practice for
purposes of paragraphs (a)(4) and (a)(5) of the CAS clause. Some
commentators said that theis proposal was inconsistent with the Board's
position in 4 CFR part 403. Others said that unless a contract
adjustment can be made under CAS regulations no acceptable adjustment
mechanism was available. Most commentators generally felt that changes
of this type should be dealt with under CAS regulations.
The Board believes that this provision is not inconsistent with 4 CFR
part 403. In that Standard, the Board was limiting use of equitable
adjustment to the first time that a particular allocation provision of
the Standard was applied.
The Board recognizes the points made by the commentators, however,
and has concluded that a change in cost accounting practice to remain in
compliance with a Standard does not constitute a failure to comply with
Cost Accounting Standards or to follow consistently disclosed cost
accounting practices. Accordingly, the Board has deleted from the
regulations being published today the provision excepting adjustments
for subsequent changes under a Standard from being considered under
paragraph (a)(4) of the Board's regulations, because changes of this
type will be covered by new paragraph (a)(4)C) of the CAS contract
clause which calls for negotiation of an equitable adjustment. The Board
also notes that contractors who have filed Disclosure Statements would
be required to amend such Statements to describe the practices to be
followed.
04 CFR 331.80 Change Compelled by Law or Regulation
A number of commentators urged the Board to delete the exception in
its October 1977 proposal for price adjustments under cost accounting
standards for changes compelled by law or regulation 331.20(i)(3). Some
contended that all changes, regardless of motivation, should be
considered for adjustment under the Board's new proposed subparagraph
dealing with changes agreed to by the parties. Other commentators urged
the Board to remove the exception to preclude a contractor from
experiencing a windfall or suffering a loss because of such changes.
The Board agrees with the suggestions made to delete this paragraph,
because the Board feels that all contractor proposed changes in cost
accounting practice should be considered for contract adjustment.
Therefore, a contractor desiring to make a change in cost accounting
practice for any reason must negotiate with the contracting officer
under the appropriate paragraph of the CAS contract clause.
Should a situation arise where major changes in cost accounting
practices would be required by contractors to comply with express
provisions of a law or regulation, the Board would seek to accommodate
any such requirement by a change in its standards, rules or regulations.
The Board has deleted from these amendments the proposed
331.20(i)(3) which dealt with changes compelled by law or regulation.
04 CFR 331.80 Illustrations
Many commentators said that all or some of the illustrations should
be deleted, while other commentators said they should be retained. The
Board included the illustrations to demonstrate the application of the
definitions in situations of the type which have been reported to the
Board in the past.
The Board noted that some of the illustrations dealing with changes
in organization were being misinterpreted. In effect, the commentators
expanded the illustrations to include situations not set forth in the
illustrations. The Board concluded that in view of the extent of
misinterpretation, it would be questionable value to revise the
illustrations to cover all the situations described by commentators.
Accordingly, several illustrations dealing with accounting changes
related to organizational changes have been deleted.
As the Board stated when the proposed definitions were published in
February 1977, the accounting effects of any organizational change must
be considered separately and a final decision concerning a change must
be based on an evaluation of those effects. Thus, an organizational
change per se is not a change in cost accounting practice. One must
look at any accounting revision brought about for any reason, including
one caused by a change in organization.
By including the illustrations the Board does not intend to imply
that all possible situations are covered nor are the illustrations to be
used as limitations for accounting changes. The Board believes that the
changes made to this section are responsive to the statements made by
commentators.
04 CFR 331.80 Contract Clause
The Board proposed in October 1977 that where the parties agree to a
change in cost accounting practice they should negotiate an equitable
adjustment for any cost impact on existing contracts. Most commentators
agree with this proposal but some felt that the contracting officer's
agreement should not be necessary. Others urged the Board to state that
a contracting officer's disagreement with a change is subject to the
disputes clause of the contract. Further, a number of commentators
suggested that the new contract adjustment paragraph be renumbered
(a)(4)(C) to avoid confusion with the pre-existing numbering series.
Finally, some commentators asked if the Board planned to make comparable
revisions to its part 332, Modified Contract Coverage.
The October 1977 proposal was in response to urging by both
contractor and Government agency representatives to establish an
alternative to paragraph (a)(4)(B) for adjusting contracts where both
parties agreed that a change in cost accounting practice was desirable.
Under that proposal, a method was established providing for equitable
adjustment for these changes. The Board does not agree that contracting
officer's agreement is not necessary and remains convinced that
Government agreement to the change is essential to protect the
Government's interests.
With respect to the treatment of a contracting officer's disagreement
with a proposed change in cost accounting practice under the disputes
clause of the contract, the Board believes this should be determined
under agencies' general rules governing appeals from various types of
decisions by contracting officers. Accordingly, the Board has not
specifically provided for the application of the disputes clause in this
situation.
The Board agrees with the suggestion concerning the renumbering of
the paragraph dealing with equitable adjustments for changes in cost
accounting practices agree to by the parties. The amendments being
published today have that paragraph numbered (a)(4)(C). Designating the
new paragraph as (a)(4)(C) eliminates the need to change citations in
other subparagraphs in section 331 from those previously existing in
CASB regulations.
With respect to the question concerning comparable revisions to part
332, the new definitions and illustrations are incorporated in 332.20
by the existing cross reference to 331.20. The Board's regulation
concerning changes in cost accounting practices agreed to by the
contracting officer will be incorporated in 332.50(a) and 332.51 by
amendments being published today.
04 CFR 331.80 Increased Cost Paid
Commentators at the 1977 Evaluation Conference and respondents to the
February 3 and the October 21, 1977, proposals requested that the Board
remove from its regulations the prohibition against increased costs paid
because of changes in cost accounting practices ( 331.50(a)(4)(B))
and/or that the expression ''increased costs paid'' (4 CFR 331.70) be
redefined to exclude fixed price contracts. The Board has established a
priorty project to perform a comprehensive review of part 331 of its
regulations, including the treatment of increased costs paid.
04 CFR 331.80 Contacting Officer Determination
Many commentators objected to the Board's including a requirement
that a contracting officer make a finding that a change is desirable and
is not detrimental to the interest of the Government. Some claimed that
such a requirement encroached on management's prerogative to design an
accounting system to meet its needs; others said the decision
concerning changes was an administrative matter, better left to the
agencies. Others suggested that different terms be substituted for some
of the words. Finally, some commentators said that the Board should
require only that agencies prescribe appropriate regulations for the use
of the equitable adjustment provision for accounting changes agreed to
by the parties.
The Board understands the concerns expressed by the commentators on
this matter. It should be recognized, however, that the Board is
proposing that equitable adjustments be negotiated for accounting
changes not required by Standards. This type of provision was requested
by many contractors and Government agencies in the past. These groups
insist that agreed-to changes should be allowed and that the contractor
should not be required to pay for any increased costs on existing
contracts resulting from such desirable changes. The Board is
responding to these requests by providing for equitable adjustments for
those proposed changes with which the contracting officer agrees if he
finds them to be desirable and not detrimental to the interests of the
Government.
Management certainly can propose any changes it feels desirable for
its own accounting system. If a change is not desirable from the
Government's point of view, the Board sees no justification for
permitting the contractor to realize economic benefits on existing
contracts from the change.
The Board's regulation merely recognizes the contracting officer's
position and does not encroach on the administrative responsibilities of
the procurement agencies. A contracting officer would routinely make
certain that a contractor's proposed change is not detrimental to the
Government before agreeing to allow increases in contract prices.
Some suggested alternative words for ''desirable'' were:
''Appropriate, warranted, equitable, fair or reasonable.'' The Board
concludes that all of these tests are encompassed by the Board's
language. Accordingly, this statement has not been changed.
The Board expects adminstrative agencies to publish regulations they
feel necessary to define what they conclude is ''desirable and is not
detrimental to the interest of the Government.'' Thus, the Board does
not agree that it is getting involved in administrative matters.
The Board agrees with the commentators who suggested that the second
sentence of 331.51, which required that the contracting officer
document the basis for his finding, be eliminated. The Board believes
that the stated documentation requirement is redundant with other
language in this subparagraph, and accordingly, that sentence has been
eliminated.
04 CFR 331.80 Withdrawal of Proposed Alternative Method of Determining
''Increased Costs''
On December 29, 1976, a proposal was published in the Federal
Register to amend 331.70(b) which, if adopted, would have permitted
procurement agencies to use either an estimate-to-complete approach or
an original-negotiation-data approach to determine increased costs paid
by the United States. As proposed, agencies would have been authorized
to use the estimate-to-complete method when negotiations had not been
based on cost estimates or such estimates were not readily determinable
by the procuring agency.
Most of the comments received expressed opposition to all or part of
the proposal. Upon reexamining the subject in light of the comments
received, the Board concludes that the proposed alternative method would
not provide sufficient improvement in the administration of Standards to
warrant its adoption. Additionally, none of the alternatives suggested
by the commentators appears likely to benefit the procurement process
materially. Accordingly, the proposal to amend 331.70(b), Contract
Coverage, as published in the Federal Register of December 29, 1976, is
hereby withdrawn. This subject will be considered in the Board's
comprehensive review of part 331.
04 CFR 331.80 Costs and Benefits
The definitions promulgated today fill a void that thad been
recognized in numerous comments to the Board and the procurement
agencies. The Board believes that the material being promulgated today
is in keeping with its responsibility and authority as provided in Pub.
L. 91-379. The Board believes further that the appropriate use of the
definitions can significantly reduce the time and effort involved in the
administration of Cost Accounting Standards. The Board concludes,
therefore, that there will be virtually no costs involved in
implementing these regulations and that there will be significant
benefits with no inflationary effects.
04 CFR 331.80 Miscellaneous Amendments
A number of miscellaneous amendments are being published today to
conform language in certain paragraphs of title 4 CFR parts 351, 403,
406 and 409. These amendments add references to the new
331.50(a)(4)(C).
04 CFR 331.80 Effective Date
The following changes to the Board's regulations are being made
effective today, March 10, 1978.
04 CFR 331.80 Pt. 331, Preamble K
04 CFR 331.80 Preamble K
Preamble to Amendments of 6-8-78
The document published at 43 FR 24819, June 8, 1978, added
331.30(b)(3) and revised 403.70(b), 408.70, and 410.70 and 415.80.
Portions of this preamble, relating to parts 401 through 410 and 415
have been omitted; they can be found in the supplements to their
respective parts.
The Cost Accounting Standards Board is authorized by Pub. L. 91-379
to prescribe rules and regulations exempting from its requirements such
classes or categories of defense contractors or subcontractors under
contracts negotiated in connection with national defense procurements as
it determines on the basis of the size of the contracts involved or
otherwise, are appropriate and consistent with the purposes sought to be
achieved by the Act.
The Cost Accounting Standards Board has been requested by several
Federal agencies and by representatives of educatioal institutions to
consider the extent to which its standards, rules, and regulations
should apply to educational institutions that are subject to Federal
Management Circular 73-8 or OMB Circular A-21 and to consider whether an
exemption for such institutions from Board promulgations is appropriate.
The Board had provided exemptions for them in certain specific
standards where the application would not be appropriate.
On March 15, 1978, the Board published for comment in the Federal
Register (43 FR 10699) a proposal to exempt most educational
institutions. The exemption would not apply to contracts with federally
funded research and development centers operated by such educational
institutions. Forty-seven comments have been received, all of which
favored the proposed action by the Board although some respondents
requested minor changes and clarifications.
A few commentators expressed concern that an educational institution
receiving a contract from the Government could apportion the contract
effort between the university and the FFRDC to take advantage of
differences in cost accounting required under CAS and under FMC 73-8.
If this becomes a problem, the procuring agencies are able to take the
necessary corrective action.
Several commentators noted that there could be some misunderstanding
concerning the applicability of CAS 403 to the university which is
functioning as a ''home office'' for an FFRDC. The Board intends that
CAS 403 not be applicable to the university in this situation and minor
changes have been made to the language to clarify its intent.
One commentator indicated that the definition of FFRDC is not
meaningful and suggested that the Board list the criteria by which NSF
designates an FFRDC. Since coverage is intended only for those
organizations designated as FFRDC's by the NSF based on whatever
criteria they deemed appropriate, inclusion of their current criteria
would not be useful. Accordingly, no changes have been made in the
definition included in 331.30(b)(3).
One commentator noted that the removal of current exemptions from CAS
403, 408, and 410 for FFRDC's will require a transitional period. It is
considered that the provisions of 403.70(a), 408.80, and 410.80 will
furnish sufficient time for compliance by the FFRDC's with those
standards. Section 403.70(a) provides that a contractor, if not exempt,
shall be required to comply at the start of his first cost accounting
period following receipt of the award of a negotiated national defense
contract making the standard applicable. A contract awarded after
August 1, 1978, will make the standard applicable to a FFRDC.
Consequently, a FFRDC must comply with CAS 403 as of the start of its
next cost accounting period after receipt of a contract after August 1.
Standards 408 and 410 apply in the same way. It is recognized that all
FFRDC's do not necessarily receive a new contract each year and that
annual funding may be by means of an amendment to an existing contract.
Applicability would be at the start of a cost accounting period after
receipt of a new contract or after receipt of the annual extension of an
existing contract.
The Board having found the exemption appropriate and consistent with
purposes sought to be achieved by Pub. L. 91-379, is modifying its
regulations as set forth below.
04 CFR 331.80 Pt. 331, Preamble L
04 CFR 331.80 Preamble L
Preamble to Amendments of 11-14-78
The document published on Nov. 14, 1978, at 43 FR 52693 revised
331.30 (b)(5), (c)(1) and (c)(2).
The Cost Accounting Standards Board is today promulgating amendments
to its regulations dealing with exemptions for contracts and
subcontracts performed by foreign governments and foreign concerns. On
July 31, 1978, the Cost Accounting Standards Board published a proposal
under which contracts or subcontracts with foreign concerns could be
exempted from certain individual standards if an authorized official of
a relevant Federal agency determines that application of the standards
to such contracts or subcontracts is inappropriate. The Board received
12 comments on the proposal.
One commentator opposed the proposal as unnecessary because the Board
itself has authority to grant exemptions when such action is appropriate
and asserted that delegation is undesirable because such decisions are
too important to be delegated. The Board agrees that decisions
concerning exemptions are important and has carefully considered the
proposed action in the light of all comments and other available
information. Based on that consideration the Board has concluded that
it should grant a specific categoric exemption. Consequently no
delegations are needed. Moreover because of the categoric exemption,
the need to amend individual standards is obviated.
One government agency to whom delegation of authority was proposed
noted that in implementing the delegation, one of the factors it would
consider in determining whether the application of an individual
standard is appropriate is the matter of sovereignty. Because of the
action being taken today, there is no need to comment on the appropriate
weight to be assigned to that factor.
Another commentator also discussed sovereignty and suggested that the
United States has no legal right to impose the requirements of its laws
and regulations on foreign contracts. To support this assertion, the
commentator cited an official of the Department of Defense who
attributed some of the difficulties in foreign procurements to the
insistence upon contracts rather than general agreements. Whether a
contract or some other instrument is used is something to be decided by
other agencies of the government and not by the CASB. The Board has
long recognized that its Standards are not applicable to noncontractual
arrangements and agrees with the suggestion that if the procuring
agencies used some noncontractual arrangement to transact business with
foreign contractors, CAS would be inapplicable to the transaction.
However, when the parties agree to use a negotiated national defense
contract or subcontract as the vehicle for transacting business, the
agreement must include the standards, rules, and regulations of the
Board.
One commentator expressed the opinion that no substantial benefit
would accrue to the United States under the limited exemption originally
proposed but that a complete exemption from all Cost Accounting
Standards Board requirements would be beneficial. Instead of the
proposed exemption and delegation, that commentator recommended that all
contracts and subcontracts with foreign firms and governments be exempt
from all CAS requirements. The Board does not agree that a limited
exemption would produce no significant benefits but that a complete
exemption would. Significant benefits accrue to the United States
Government from all standards, in part because each standard enhances
the likelihood of achieving the goal of uniformity and consistency set
forth in Pub. L. 91-379. The Board believes that by exempting foreign
contracts from some standards there is a detriment rather than a benefit
insofar as the public law itself is concerned. Nonetheless the Board
has been advised that the requirement to apply some standards has become
a significant impediment to efficient, successful contracting with
foreign concerns and foreign governments.
The exemption being granted today will remove that impediment while
continuing to provide protection through the application of CAS 401 and
402. In addition, foreign concerns will still be required to file
Disclosure Statements.
The requirements of CAS 401 and 402 are fundamental to any sound cost
accounting program. In the Board's view application of these standards
is essential to provide some assurance that a contractor's cost
accounting practices are sufficient to provide reliable information on
which to base the negotiation, administration, and settlement of
contracts. Similarly, the requirement for disclosure which is also
being continued unchanged, serves to assure that necessary information
about cost accounting practices is available to the Government.
Several commentators recommended that in addition to contracts with
foreign contractors, the Board should exempt contracts with foreign
governments. The Board has concluded that this recommendation has merit
and the exemption being promulgated today has been amended accordingly.
Because the exemption established in 1972 for the Canadian Commercial
Corp., an agency of the Canadian Government, is included in today's
exemption action, the 1972 exemption is being withdrawn.
One commentator suggested a need to define ''foreign concerns'' and
another recommended that ''performance'' be defined. The term ''foreign
concern'' has already been defined by the Board in 331.30(c)(2).
As to what constitutes ''performance,'' the Board believes that in
general it encompasses the contractor's activity under the contract up
to the point of inspection and acceptance of the items called for by the
contract. However, because of the complexity and variety of contracts,
the Board believes that the contracting agency can best determine
whether a specific contract is to be performed outside the United
States.
A number of commentators suggested various changes in the delegation
procedures proposed by the Board. Since the Board is withdrawing the
delegation, there is no need to consider these suggestions.
One commentator suggested that the reference in 331.30(c) to the
Assistant Secretary of Defense (Installations and Logistics) be changed
to reflect organizational changes in the Department of Defense. This
revision has been made.
04 CFR 331.80 Pt. 331, Preamble M
04 CFR 331.80 Preamble M
Preamble to Revision, 9-18-80
The material set forth below is the preamble to the revision and
republication of part 331, September 18, 1980, at 45 FR 62011. This
preamble to the publication of September 18, 1980, is included as part
of the administrative history of part 331.
04 CFR 331.80 Summary
On June 1, 1979, the Board published in the Federal Register proposed
revisions to parts 331, 332 and 351 of its regulations dealing with
contract coverage and the filing of Disclosure Statements. Based on
comments to its June 1 proposal, the Board made substantial
modifications in the proposed revisions and republished the revised
parts again for comment on February 8, 1980. After considering the
comments to the second publication and reviewing all suggestions from
interested parties, the Board has determined that the revised
regulations are ready for promulgation. It believes that the revised
regulations will result in improved administration and will be more
readily understood by parties subject to the regulations.
04 CFR 331.80 Effective Date
April 1, 1981.
04 CFR 331.80 Supplementary Information
In the Federal Register of June 1, 1979, (44 FR 31655) the CASB
published for comment proposed revisions to parts 331, 332 and 351 of
its regulations. The revisions were made for the purpose of simplifying
these parts of the regulations and to modify them where experience
indicated that changes would be desirable. Thirty-six responses were
received by the Board to its request for comments.
The Board after consideration of the comments modified its proposed
revisions and again published the revised parts for comment in the
Federal Register of February 8, 1980 (45 FR 8677). Twenty comments were
received to the February publication. The Board wishes to thank all of
the respondents for their constructive suggestions which were of
substantial assistance to the Board in its review and revision of these
parts.
In the February 8 proposal two areas of the regulations drew a
substantial number of comments from the respondents, the exemption of
firm fixed price contracts (FFPs) awarded without submission of cost
data and the definition of ''increased costs paid by the Government'' as
such may occur under FFPs after award. The Board's views on these two
areas and on other comments received are as follows:
1. Exemption. Commentators generally endorsed the Board's proposal to
exempt FFPs awarded without submission of any cost data. However, most
commentators urged the exemption be expanded to require that cost data
be certified or that the data have been relied on as the basis of price.
The Board is not persuaded that the suggested modifications should be
made in describing those contracts which would be subject to this
exemption. Situations occur in which cost data are submitted in support
of a price but are not certified because the award is designated as
adequate price competition. Whether the data are used in a particular
case can be difficult to establish. The Board however is satisfied that
such data would not be submitted unless they were to be used. Because
of this and because of the administrative simplicity of the test, the
Board believes that the circumstances which would support an exemption
of certain FFPs being adopted today is appropriate.
One commentator opposed the establishment of this exemption on the
grounds it provided a positive incentive for a potential contractor to
seek to avoid submission of cost data. Controlling law and regulations
establish the circumstances under which a potential contractor may be
required to submit cost data to support a price proposal in a national
defense procurement. In addition Government representatives have
authority to act to assure that the Government's interests are properly
protected. Consequently, whether a potential contractor may or may not
have an incentive to avoid submitting cost data is not determinative as
to whether such data are submitted. The Board believes that Government
representatives, in cases where they deem it appropriate, will obtain
whatever data they are entitled to. Nonetheless, the Board acknowledges
that linking application of Cost Accounting Standards to submission of
cost data could result in requests for waivers from the cost data
submission requirements that would not be made if cost data alone were
involved. In order to preclude this result the Board has revised the
exemption so that contracts on which submission of cost data was avoided
by obtaining a waiver of cost or pricing data requirements nonetheless
remain subject to the Cost Accounting Standards requirements.
2. ''Increased costs paid'' under FFPs after contract award. In its
February 8 proposal the Board deleted certain proposed revisions
contained in its June 1, 1979 proposal concerning the adjustment of FFP
contracts in view of the objections of most commentators to the proposed
changes. The Board in its February proposal limited changes in the
regulations affecting FFPs to a clarification in 331.70(b) concerning
the measurement of increased costs paid by the United States under those
contracts. The modified 331.70(b) paragraph was the subject of adverse
comment by a majority of industry commentators who maintain that under
FFP contracts once price is agreed to, there can be no increased cost
paid by the U.S. attributed to any subsequent changes the contractor may
make in its cost accounting practices.
The question of adjustment of FFPs has been the subject of extensive
discussions since 1972. In its original promulgations the Board
recognized that there was increased cost paid by the U.S. under a FFP
contract if during the accumulating and reporting process the contractor
adopted practices that reduced his cost allocations below the allocation
determined during the estimating process. It is noted that in the
proposed contract regulations published for comment on December 30,
1971, a provision the same in all essential aspects to the present
331.70(b) was included. At that time no commentator questioned the
applicability of CAS to FFPs.
The second sentence of Section (h)(1) of Pub. L. 91-379 is as
follows:
Such regulations shall require * * * a contract price adjustment,
with interest, for any increased cost paid because of the defense
contractor's failure to comply with * * * standards or to follow
consistently his disclosed cost accounting practices * * * in pricing
contract proposals and in accumulating and reporting contract
performance cost data.
This provision prescribes price adjustments for all contracts where
there is a failure to comply in pricing proposals and in accumulating
and reporting costs. Since the Congress did not exclude FFP contracts
when it provided for recovery of increased cost paid to the contractor
because of a failure to comply or failure to follow, it was and still is
incumbent on the Board to insure that, in the absence of an exemption,
such recovery is accomplished. Pub. L. 87-653, Truth in Negotiations,
provides that the price of a contract shall be adjusted to exclude any
significant sum by which a firm fixed price was increased because the
cost data furnished by the contractor, in essence, was insufficient to
enable the Government to judge accurately the contractor's cost
estimates used in negotiating. The Board's requirements for adjustments
to firm fixed price contracts when there is a failure to follow the cost
accounting practices on which price was based embody essentially the
same measurement principle. The Board's requirements concerning fixed
price contracts constitute a recognition of the fact that the price
agreed to at the outset is higher than the price that would have been
agreed to if the Government had known about the accounting change. This
constitutes a constructive increase in the costs paid by the United
States. In view of the foregoing, the Board's regulations will continue
to require recovery of increased costs paid by the United States on
FFPs. However, to emphasize that the contracting parties are the ones
to determine what the contract price would have been and that there are
no precise rules to be used in such determinations, further provision
has been added to 331.70(b).
(3) Modification of 331.70(f). One commentator suggested that
331.70(f) be modified to delete reference to ''all affected contracting
officers'' and place the authority to effect agreement in the hands of
one contracting officer delegated by affected agencies to handle CAS
matters. In 331.70(e) the Board urged that the contracting agencies
designate such an individual and generally agencies have done so.
However, this is a voluntary action of the agencies and the Board is not
in a position to make it mandatory.
Two commentators urged 331.70(f) be modified to refer to aggregate
cost increases and offsets rather than deal with adjustments to
individual contracts. In 331.70 (e) and (f) the CASB has suggested
techniques which it considers will permit substantially easier
administration in situations in which a number of covered contracts may
be involved. However, basic procurement statutes and Pub. L. 91-379
all deal with individual contracts and in the end adjustments must be
made on an individual contract basis. Consequently, it is considered
that reference to adjustments on an individual contract basis and
allowance for offset among contracts where appropriate is the more
precise way of discussing contract price adjustments.
(4) Statement on Fairness. One commentator requested the Board issue
a statement on fairness in the application of its contract clause and
related interpretations. The essence of the statement recommended would
be that the results in any particular case arising from application of
the Board's Standards, rules and regulations must be deemed ''fair'' in
some general undefined sense by the negotiating parties or the Board's
issuance may be disregarded. The Board's Restatement of Objectives,
Policies and Concepts contains a statement that a Standard is fair when,
in the Board's best judgment, it shows neither bias nor prejudice to
either party. The Board views its rules and regulations on contracts
and price adjustments in the same light. In any given case, the results
of contract pricing may ultimately be regarded as fair or unfair by
either or both parties to the contract because, on a case-by-case basis,
fairness is viewed from the personal vantage point of the particular
party. It is impossible to adopt such a subjective criteria and have
meaningful Standards. Consequently any attempt to define ''fairness''
in the context of individual contract negotiations is inappropriate.
(5) Miscellaneous. There were various miscellaneous comments and
suggestions on the Board's proposal to which the following comments are
addressed:
(a) Application of revised regulations. Two commentators requested
that the regulations, as revised by this promulgation, be applied to
existing contracts. To the extent the Board has restated its
interpretations to its regulations, such restatement would apply to
existing contracts. However, other modifications will become effective
only on the date specified in the revised regulations. This date is
established so that sufficient lead time is available to procurement
agencies to develop and publish any implementing regulations or
instructions. The revised regulations other than restated
interpretations will only apply to contracts and events which occur
after the effective date of the regulation.
(b) Section 351.120(a), Disclosure Statement revisions. This
paragraph was modified to provide that a Disclosure Statement must be
revised when a change is made by the contractor whether or not the
Government has agreed to the change. One commentator objected to this
revision on the grounds it would increase the contractor's workload
substantially. The change was made merely to clarify an existing
requirement. It does not make a substantial change in the requirements
set forth in the paragraph.
(c) Increase the threshold for contract coverage and Disclosure
Statement application. Several contractors requested that the Board
increase the threshold for contract coverage so as to make the
application of CASB requirements effective only on contracts of $500,000
or more. Commentators also stated that the threshold for Disclosure
Statement application should be increased. The Board has recently given
consideration to both of these suggestions and is of the opinion that
current thresholds are appropriate and no change in threshold
application has been made in the regulations published today.
(d) Deletion of post award disclosure under 331.60. One commentator
objected to the deletion under 331.60 of the provisions for post-award
submission of Disclosure Statements. The Board considers the time
currently provided under 351.40 to be more than adequate for the
preparation and submission of Disclosure Statements prior to award.
Consequently, it considers that provisions for post-award submission is
unnecessary.
(e) ''Cost to Complete'' method of 331.70(b). One commentator urged
that the Board provide under 331.70(b) for the use of the ''Cost of
Complete'' method of determining contract adjustments. It is considered
that this paragraph, as revised, gives the contracting parties
sufficient guidance with respect to the measurement of price impact.
Consequently, the requested change has not been made.
(f) Deletion of submission of disclosure statement of CASB. Since
the Board was receiving copies of disclosure statements to assist in its
research in developing standards and since that development has been
substantially completed, receipt by the Board of disclosure statements
is unnecessary. Consequently, this requirement has been deleted.
04 CFR 331.80 PART 332 -- MODIFIED CONTRACT COVERAGE
Sec.
332.10 Purpose.
332.20 Definition.
332.30 Applicability.
332.40 (Reserved)
332.50 Contract clause.
332.51 Findings.
332.60 Disclosure requirements.
332.70 Interpretation.
332.80 Effective date.
Preambles A -- B
Authority: Sec. 103, 84 Stat. 796 (50 U.S.C. App. 2168).
Source: 45 FR 62016, Sept. 18, 1980, unless otherwise noted.
Editorial Note: A supplement, consisting of the preambles to these
regulations as they appeared in the Federal Register, follows the text
of this part. These preambles are intended to explain the regulations
in non-technical language.
The preamble to the original publication of this part (42 FR 45625,
Sept. 12, 1977) is set forth in Preamble A of the supplement.
04 CFR 332.10 Purpose.
The regulations contained in this part are promulgated to provide
modified contract coverage for certain classes of business units.
04 CFR 332.20 Definition.
The definitions set forth in 331.20 of this chapter shall apply to
this part.
04 CFR 332.30 Applicability.
(a) Except for the award of a single covered contract of $10 million
or more the provisions of this part may be applied in lieu of part 331
of this chapter to any covered contract received by a business unit
which in its immediately preceding cost accounting period received less
than $10 million in awards of covered contracts: Providing, That the
sum of such awards equals less than 10 percent of the business unit's
total sales during that period.
(b) If in any cost accounting period the provisions of this part are
applied to any one award to a business unit, they must be applied to all
covered contracts awarded to that unit during that period, except under
the following conditions. If the business unit receives a single
contract award of $10 million or more, that contract must contain the
clause set forth in 331.50 of this chapter. Thereafter any covered
contract awarded in the same cost accounting period must also contain
that clause.
(c) Any covered contract awarded subject to this part shall remain
subject thereto even if a portion of the contract is performed in a
subsequent cost accounting period in which the business unit is exempt
from the requirements of the Cost Accounting Standards Board or
ineligible to use this part.
332.40 (Reserved)
04 CFR 332.50 Contract clause.
(a) Upon appropriate certification by the offeror that he is eligible
and elects to use this part, the following clause shall be inserted in
any resulting contract in lieu of the clause prescribed in 331.50 of
this chapter.
(a) The contractor, in connection with this contract shall: (1)
Comply with the requirements of 4 CFR parts 401, Consistency in
Estimating, Accumulating and Reporting Costs, and 402, Consistency in
Allocating Costs Incurred for the Same Purpose, in effect on the date of
award of this contract.
(2) If it is a business unit of a company required to submit a
Disclosure Statement. disclose in writing its cost accounting practices
as required by regulations of the Cost Accounting Standards Board. If
the contractor has notified the Contracting Officer that the Disclosure
Statement contains trade secrets and commercial or financial information
which is privileged and confidential, the Disclosure Statement will be
protected and will not be released outside of the Government.
(3) Follow consistently, his cost accounting practices. A change to
such practices may be proposed, however, by either the Government or the
contractor, and the contractor agrees to negotiate with the Contracting
Officer the terms and conditions under which a change may be made.
After the terms and conditions under which the change is to be made have
been agreed to, the change must be applied prospectively to this
contract, and the Disclosure Statement if affected must be amended
accordingly.
The contractor shall, when the parties agree to a change to a cost
accounting practice and the contracting officer has made the finding
required in 332.51 of the Cost Accounting Standards Board's
regulations, negotiate an equitable adjustment as provided in the
changes clause of this contract. In the absence of the required finding
no agreement may be made under this contract clause that will increase
costs paid by the United States.
(4) Agree to an adjustment of the contract price or cost allowance,
as appropriate, if he or a subcontractor fails to comply with the
applicable Cost Accounting Standards or to follow any cost accounting
practice and such failure results in any increased costs paid by the
United States. Such adjustment shall provide for recovery of the
increased costs to the United States together with interest thereon
computed at the rate determined by the Secretary of the Treasury
pursuant to Pub. L. 92-41, 85 Stat. 97, or 7 percent per annum,
whichever is less, from the time the payment by the United States was
made to the time the adjustment is effected.
(b) If the parties fail to agree whether the contractor has complied
with an applicable Cost Accounting Standard, rule or regulation or the
Cost Accounting Standards Board and as to any cost adjustment demanded
by the United States, such failure to agree shall be a dispute
concerning a question of fact within the meaning of the disputes clause
of this contract.
(c) The contractor shall permit any authorized representatives of the
head of the agency, of the Cost Accounting Standards Board, or of the
Comptroller General of the United States to examine and make copies of
any documents, papers, or records relating to compliance with the
requirements of this clause.
(d) The contractor shall include in all negotiated subcontracts which
he enters into the substance of this clause except paragraph (b) and
shall require such inclusion in all other subcontracts of any tier,
except that:
(1) If the subcontract is awarded to a business unit which pursuant
to part 331 is required to follow all Cost Accounting Standards, the
clause entitled ''Cost Accounting Standards'' set forth in 331.50 of
the Board's regulations shall be inserted in lieu of this clause, or
(2) This requirement shall apply only to negotiated subcontracts in
excess of $100,000 where the price negotiated is not based on
(i) Established catalog or market prices of commercial items sold in
substantial quantities to the general public or
(ii) Price set by law or regulation, or
(3) The requirement shall not apply to negotiated subcontracts
otherwise exempt from the requirement to include a Cost Accounting
Standards clause by reason of 331.30(b) of the Board's regulation.
04 CFR 332.51 Findings.
Prior to making any equitable adjustment under subparagraph (3) of
the contract clause set out in 332.50 the contracting officer shall
make a finding that the change is desirable and is not detrimental to
the interests of the Government.
04 CFR 332.60 Disclosure requirements.
General provisions concerning filing of a Disclosure Statement and
the time at which such Disclosure Statement must be filed are set forth
in part 351 of this chapter.
04 CFR 332.70 Interpretation.
(a) For the purpose of determining under 332.30(a) whether the sum
of covered contract awards equals less than 10 percent of the business
unit's total sales, an order received by the one segment from another
segment shall be treated in the same way that a subcontract award to the
receiving segment would be treated. In measuring sales for a year, a
transfer by one segment to another shall be deemed to be a sale by the
transferor.
(b) Contracts subject to this part 332 may be performed during a cost
accounting period in which a subsequently awarded contract subject to
part 331 is also being performed. Compliance with the requirements
established by part 331 may compel the use of cost accounting practices
for the subsequently awarded contract that are not required under this
part 332. Under these circumstances, the cost accounting practices
applicable to contracts subject to this part 332 need not be changed.
Any resulting differences in practices between the contracts subject to
this part and those subject to part 331 of this chapter shall not
constitute violations of Standard 401 or 402.
(c) In applying 332.30(a), business units using Federal Management
Circular 73-8 (Cost Principles for Educational Institutions) shall use
the amount of current funds expenditures in lieu of total sales.
(d) The interpretation set forth in 331.70 shall also apply to this
part.
04 CFR 332.80 Effective date.
Part 332, as amended, must be applied to contracts whose date of
award is April 1, 1981 or if the contractor has submitted cost or
pricing data, whose date of final agreement on price is after that date.
04 CFR 332.80 Pt. 332, Preamble A
04 CFR 332.80 Preamble A
Preamble to Original Publication 9-12-77
The material set forth below is the preamble to the original
publication of part 332, 42 FR 45625, Sept. 12, 1977.
04 CFR 332.80 Contract Coverage, Modified Contract Coverage, Basic
Requirements and Cost Accounting Standards
This publication adds a new part 332 and amends parts 331, 351 and
403 of the Cost Accounting Standards Board's rules, regulations and
Standards. The proposal to add part 332 and to amend parts 331 and 351
were published for comment in the February 16, 1977 Federal Register (42
FR 9389). The proposal to amend part 403 was published for comment in
the November 30, 1976 Federal Register (41 FR 52473). Appropriate
periods for comment on the proposals were provided. Numerous and
extensive comments were received concerning both proposals. The Board
appreciates the interest expressed by the commentators and thanks them
for their participation.
04 CFR 332.80 Comments of parts 332, 331 and 351
04 CFR 332.80 general
Many commentators expressed general approval of the proposal to
exempt certain businesses and provide modified coverage for others.
Information available to the Board does not demonstrate that the
benefits to be derived from applying all requirements to all contracts
clearly outweigh the cost of requiring such application. Moreover the
Board does not believe that many small companies with less sophisticated
accounting systems and small accounting staffs can comply with the
Board's requirements without experiencing inordinate difficulty and some
cost. Under these circumstances, the Board has concluded that it is
appropriate to remove completely the obligation of small businesses to
comply with Standards, rules, and regulations of the Board. In reaching
this conclusion the Board has also given some weight to the belief
expressed by a few commentators that the prospect of having to comply
with Board requirements has caused some companies to avoid Government
contracts.
As noted by some commentators who opposed the Board's proposal, the
granting of exemptions tends to reduce rather than increase uniformity
of cost accounting practices because of the exemptions. In that sense
the action may be viewed as not being in furtherance of that statutory
goal which is set forth in Pub. L. 91-379. It has long been recognized
that uniformity is an extremely important objective of the Board's
actions. It is not, however, the only consideration. If there were any
doubt on this point, the fact that the Law authorizes the Board to
prescribe rules and regulations exempting contractors from its
requirements should dispel that doubt. The Board believes that the
action being taken is consistent with its statutory duties viewed as a
whole even though uniformity among some business units will be reduced.
04 CFR 332.80 threshold determinations
Several commentators noted that the $10 million threshold provided in
part 332 would be based on all contracts subject to Cost Accounting
Standards rather than being limited to national defense contracts and
subcontracts. They noted that Pub. L. 91-379 does not apply to
nondefense contracts and that such contracts are subject to Board
Standards rules and regulations only to the extent that the
Administrator of General Services has extended coverage to it. Because
of this they urged that the calculation be made only on the basis of
national defense contracts and subcontracts. This recommendation has
been adopted by the Board.
The proposal to exempt all contracts under $500,000 was viewed as
generally desirable by many commentators. Some recommended that $1
million or more be established as the minimum coverage level. However,
some commentators opposed exempting small contracts of a contractor
required to follow Standards on large contracts. They contended that
once the contractor has to establish practices in compliance with
Standards, there is no additonal burden involved in applying those
practices to its small contracts. In any case it is unlikely that
application of those practices could result in burdens that would be
equal to those that would result from applying one set of cost
accounting practices to large contracts and another set to small
contracts. For this reason the Board has not adopted the proposal to
exempt all contracts under $500,000. Instead the existing provisions
providing for coverage of smaller contracts awarded to a business unit
which has received an award of $500,000 or more are being retained.
One commentator noted that some contractors receive contract awards
of $10 million or more every other year and few, if any, covered awards
in the intervening years. The large contracts would not be subject to
disclosure requirements or Standards under the February 16 proposal.
The Board has remedied this problem by providing that any single
contract award of $10 million or more is subject to all Standards and
must be covered by a Disclosure Statement.
04 CFR 332.80 small business
Several commentators urged that all businesses which qualify as small
business concerns under the rules and regulations of the Small Business
Administration be exempted. The February 16, 1977 proposal would have
provided such an exemption only for a small business which received less
than $10 million in awards during its preceding fiscal year. Modified
coverage would have been provided for other small businesses. Research
indicates that there are very few companies which would fall into the
category of small businesses receiving awards of $10 million or more.
In the interest of using a single test, i.e., whether the contractor
qualifies as a small business concern, rather than a dual test which
would result only in a few small businesses being subject to modified
coverage, the Board has adopted the recommendation to exempt all small
business concerns. Research indicates that if this action had been
applied to Federal Fiscal Year 1976 it would have resulted in exemption
of 196 small business concerns which were doing business with the
Department of Defense and which had $460 million of contracts of the
type subject to Cost Accounting Standards. Consequently, on average,
each small business concern would have a relatively small amount of
covered contracts.
04 CFR 332.80 other categories
Various commentators renewed previous recommendations that the Board
exempt other categories of contracts and contractors. The categories
included colleges, universities, nonprofit organizations, hospitals, and
Government-owned contractor-operated facilities. The Board has
considered these recommendations and concluded that none of these
categories should be exempted.
04 CFR 332.80 part 332 eligibility
The February 16 publication would require that a contractor have less
than $10 million in covered contracts and that the covered contracts be
less than 10% of total sales to be eligible for part 332. In discussing
this provision some commentators proposed a wide variety of tests in
lieu of the tests proposed in that publication. Some suggested using
only a dollar test or only a percentage test rather than both. The
amounts recommended ranged up to $100 million and 50 percent of total
sales. Some suggested using sliding scales to determine eligibility.
None of the suggested tests appear more likely to achieve the purposes
of the Board than the test originally proposed. The Board has therefore
retained its initial proposal.
04 CFR 332.80 scope of part 332
A number of commentators recommended that eligibility for part 332
should result in complete exemption. Others recommended that
requirement for compliance with parts 401 and 402 be the only
requirement and that the disclosure obligation be eliminated. The Board
believes that substantical benefits may be derived by continuing to
require compliance with parts 401 and 402. There is nothing which
suggests that compliance with the two Standards entails any significant
cost. Consequently this requirement is being retained. According to
information reported to the Board, adoption of part 332 will relieve 264
segments of 131 contractors of the requirements to comply with all
Standards but will remove only $405 million of contracts from full
coverage.
04 CFR 332.80 disclosure statement requirements
Many commentators suggested that preparation of a Disclosure
Statement was burdensome. They also contended that in the situation
where a large commercial contractor receives only a few small contracts
containing a Cost Accounting Standards clause the need for a Disclosure
Statement appears to be minimal. Some asserted that adoption of the
proposal to require a Disclosure Statement for all covered contracts
would reduce the number of companies that would accept contracts subject
to the Board's Standards, rules and regulations. The Board is persuaded
that for the time being Disclosure Statements should not be required for
all covered contracts. Accordingly it is not adopting the February 16
proposal. The Board is retaining the existing Disclosure Statement
requirement provided in part 351 except that a business unit will be
required to submit a Disclosure Statement if it is a company or a
segment of a company which received awards of national defense contracts
subject to Cost Accounting Standards in excess of $10 million during its
preceding cost accounting period rather than the preceding Federal
fiscal year.
04 CFR 332.80 revisions to part 351
Part 332 and the amendments to part 331 generally will result in
annual determinations being made of a contractor's obligation to follow
Standards and to submit Disclosure Statements. The determination will
be made on the basis of sales and awards data from the immediately
preceding cost accounting period. The requirement to continue to submit
a Disclosure Statement so long as the contractor has a contract subject
to Cost Accounting Standards will no longer apply. Disclosure
Statements must be maintained for and applied to only those contracts
which were awarded during a cost accounting period in which the
contractor met the filing requirements of 351.40. Sections 351.40 and
351.50 have been revised to reflect this change.
04 CFR 332.80 segments of large companies
A number of commentators sought to have small segments of large
companies treated in the same way that small businesses are treated. In
their view, small segments are competing in the same environment as
small business and are operating with essentially similar capacity and
resources. Therefore, such segments, they concluded, should be subject
to the same rules as small business. The Board does not accept this
line of reasoning. Even in those cases where a segment may appear to
operate as a small business its status as a segment precludes it from
being regarded in the same way. It has available to its capacities and
resources of the company of which it is a part. Also the policy
considerations of the Small Business Act have no applicability to
segments of a larger company. Further, as a practical matter, the rules
already exist in the Small Business Administration for identifying small
business concerns. There are no comparable rules for identifying small
segments.
As indicated by the February 16 proposal the Board nonetheless
recognizes that segments which are engaged in primarily noncovered work
should be eligible for modified coverage. This coverage is provided by
part 332. It will apply to segments which according to information
submitted to the Board have average covered sales of approximately $1.4
million per segment. The relatively small amount of covered contract
sales by each of these segments, the limited Government interest in the
total business activity of the unit and the fact that the implementation
and administration involves some cost lead to the conclusion that
modified coverage is appropriate and sufficient to protect the interests
of the Government.
04 CFR 332.80 summary
The results of the Board's adoption of part 332 and amendment of
parts 331 and 351 are:
1. None of the Board's requirements apply to a business unit unless
it has received an award of at least one covered contract of more than
$500,000. Thereafter covered contracts of more than $100,000 are
subject to the Board's requirements.
2. A Disclosure Statement must be submitted by any business unit
receiving a covered contract if it is either a company which received
net awards of negotiated national defense prime contracts and
subcontracts subject to Cost Accounting Standards totaling $10 million
or more in its preceding cost accounting period or a segment of such a
company.
3. Contracts awarded to any business unit which received less than
$10 million in awards of covered contracts in its preceding cost
accounting period are subject to:
(a) Standards 401 and 402, if the dollar amount of such awards is
equal to less than 10 percent of the business unit's total sales during
that period; or
(b) All Standards, if the dollar amount of such awards is equal to 10
percent or more of the business unit's total sales during that period.
4. Any single award of a covered contract of $10 million or more is
subject to all Standards and requires submission of a Disclosure
Statement.
5. Contracts awarded to any business unit which received $10 million
or more in awards of covered contracts during the preceding cost
accounting period are subject to all Standards.
6. Notwithstanding the foregoing, all businesses which qualify as
small business concerns under the rules and regulations of the Small
Business Administration are exempt from all Cost Accounting Standards
Board requirements.
04 CFR 332.80 Comments on Part 403
With respect to the amendment of part 403, the November 30, 1976
proposal was to revise that Standard to make it applicable to any
contract which was subject to Cost Accounting Standards generally. The
amendment being promulgated today retains this concept. However, as
recommended by a number of commentators, the Board deferred the
promulgation of this amendment pending the amendments to parts 331 and
351 and the addition of part 332 discussed above.
The decision to extend the application of part 403 to additional
contractors was made on the basis of extensive research. This research
included both those contractors who were already required to use part
403 and those who were expected to use it as a result of this amendment.
With respect to the current users, the Board is satisfied that this
Standard has resulted in more equitable allocations, with little
administrative effort in most cases. With respect to potential
additional users, the research indicated that many of these would have
to make few, if any, changes to comply with part 403 and that the
remainder could comply with little difficulty. The Board notes in
addition, an independent study by the Conference Board which found that
defense contractors who are using part 403 for contract costing purposes
are using the same allocation procedures for internal reporting
purposes. According to the Conference Board, it was typical of these
companies to allocate home office expenses on a blanket basis prior to
the promulgation of part 403. (Information Bulletin No. 17, February
1977.)
A number of commentators suggested various limitations for the
application of part 403. Some of these suggestions were expressed in
general terms. Some of the commentators recommended, for example, that
the requirement to use part 403 should not be extended to ''small
contractors.'' Alternatively or additionally it was recommended that
part 403 should not be required for a large contractor with little work
subject to Cost Accounting Standards. More specifically,
recommendations were received to exempt those contractors with less than
10 percent of their revenue from Government work. Others recommended
that contractors who have less than $10 million in contracts subject to
Cost Accounting Standards should be exempt. The Board believes that the
recommendations of this nature have been accommodated to the extent
desirable and practical by the amendments to parts 331 and 351 and the
addition of part 332 being promulgated today. Accordingly, any further
exemption from part 403, specifically, is considered to be unnecessary.
In publishing the proposed amendment to part 403 in the Federal
Register of November 30, 1976, the Board stated that there is evidence
that almost all contractors who were required to make significant
changes in their allocation practices as a result of part 403 did so
without undue trouble or expense. Several commentators questioned the
Board's conclusion in this regard. The Board's conclusion was based in
part on Staff research involving 147 home offices who now use part 403
to allocate home office expenses. This research sought to determine,
among other things, the administrative problems and expense involved in
making allocations pursuant to part 403. Government auditors reported
that of the 147 home offices, only 4 had problems in developing the
necessary data and that there was evidence of significant adminstrative
costs at one of these four offices. In addition, evidence of
significant administrative costs in making the allocations was found by
the Government auditors at four other of the 147 home offices.
Some of the respondents who questioned the Board's conclusions
regarding administrative problems and expense referred to an industry
report on the economic impact of Cost Accounting Standards as support
for this position. These respondents variously referred the Board to
those sections of the report which summarized (i) contractor's appraisal
of benefits from part 403; (ii) the number of contractors who were
required to make changes as a result of part 403; (iii) the number of
noncompliance notices issued in connection with part 403; and (iv) the
increase and decrease in costs allocated to Government work as a result
of CAS 403. Nothing in these sections, however, specifically addresses
the question of administrative problems or expense involved in complying
with part 403.
Two associations reported that, contrary to the Board's findings,
their member companies had experienced trouble and expense in complying
with part 403. These associations declined to identify the companies
involved, the nature of the problems, or the amount of the expenses.
Under these circumstances, there is no basis to alter the conclusion
that contractors have been able to make changes required as a result of
part 403 without undue trouble or expense.
One commentator stated that it would not be desirable to make more
contractors subject to part 403 because he believes it to be defective,
particularly with respect to its application to the allocation of state
and local taxes. With respect to the application of the Standard to the
allocation of state and local taxes specifically, the Board notes that
it reached its conclusion on the basis of considerable research and
extensive deliberation. Moreover, it has reexamined its conclusions,
even after the promulgation of part 403. Notwithstanding the views of
the commentator, the Board continues of the view that the provision in
question is proper. Accordingly, the Board does not agree that this
Standard should not be extended to additional contractors because of the
tax allocation provision.
04 CFR 332.80 effective date
The effective date of the regulations being published today is March
10, 1978. Pub. L. 91-379 provides that regulations shall take effect
not earlier than the expiration of the first period of sixty calendar
days of continuous session of the Congress following the date on which a
copy of the regulations is transmitted to the Congress. The calendars
of the Congress indicate that the required sixty days will not pass
until some time in February 1978. Accordingly, March 10, 1978, has been
selected to assure sufficient time for the regulation to lie before the
Congress.
04 CFR 332.80 Preamble B
Note: For text of Preamble B to part 332, see Preamble M to part
331, published at 45 FR 62009, Sept. 18, 1980.
04 CFR 332.80 SUBCHAPTER D -- (RESERVED)
04 CFR 332.80 SUBCHAPTER E -- DISCLOSURE STATEMENT
04 CFR 332.80 PART 351 -- BASIC REQUIREMENTS
Sec.
351.20 Purpose.
351.30 Definitions.
351.40 Filing requirement.
351.60 Forms.
351.70 Submission.
351.80 Incorporation of Disclosure Statement.
351.90 Adequacy of Disclosure Statement.
351.100 Effect of filing Disclosure Statement.
351.120 Amendment of Disclosure Statement.
351.130 Instructions and information.
351.140 Disclosure Statement.
351.145 Disclosure Statement -- colleges and universities.
Appendix A to Part 351 -- Principal Product or Service Code
Preambles A -- G
Authority: Sec. 103, 84 Stat. 796 (50 U.S.C. App. 2168).
Source: 38 FR 30728, Nov. 7, 1973, unless otherwise noted.
Editorial Note: A supplement, consisting of the preambles to these
regulations as they appeared in the Federal Register, follows the text
of this part. These preambles, which are intended to explain the
regulations in nontechnical language, are printed in chronological order
to provide an administrative history of the cost accounting standards.
The preamble to the original publication of this part (37 FR 4139,
Feb. 29, 1972) is set forth in preamble A of the supplement. The
preamble to an amendment affecting the original publication of this part
is set forth in preamble B of the supplement.
Part 351 was revised at 38 FR 30725, Nov. 7, 1973, with the
exception of 351.50(c) and the last sentence of 351.70. The preambles
to the revision of this part are set forth in preambles B and C.
For preambles to amendments and revisions which affect only certain
sections, see the references following those sections.
04 CFR 351.20 Purpose.
This regulation is promulgated pursuant to section 719 of the Defense
Production Act of 1950, as amended by 84 Stat. 796 (Pub. L. 91-379),
to provide the means by which affected persons can satisfy the
requirements established by that law for disclosure of their cost
accounting practices and to promulgate the Disclosure Statement form.
The regulation also sets forth the administrative procedures to be
followed by the Cost Accounting Standards Board and relevant Federal
agencies in connection with such disclosures.
04 CFR 351.30 Definitions.
The definitions set forth in 331.20 of this chapter shall apply to
this part.
(Sec. 719, Defense Production Act of 1950, as amended, Pub. L.
91-379 (50 U.S.C. App. 2168))
(45 FR 62017, Sept. 18, 1980)
Preamble: For preamble relating to 351.30, see preamble M to part
331.
04 CFR 351.40 Filing requirement.
(a) Who must file. (1) Any defense contractor which, together with
its segments, received net awards of negotiated national defense prime
contracts and subcontracts subject to Cost Accounting Standards totaling
more than $10 million in its most recent cost accounting period, must
submit a completed Disclosure Statement as specified in paragraph (b)(1)
of this section.
(2) Any business unit which receives a negotiated national defense
contract or subcontract which is subject to Cost Accounting Standards
and is for $10 million or more must submit a completed Disclosure
Statement as specified in paragraph (b)(2) of this section.
(3) Except as provided in 4 CFR 331.30(b) or except where the price
is based on (i) established catalog or market prices of commercial items
sold in substantial quantities to the general public or (ii) prices set
by regulation, a separate Disclosure Statement must be submitted
covering the practices of each segment of a defense contractor whose
costs included in the total price of any covered contract exceeds
$100,000. If the cost accounting practices are identical for more than
one segment of a contractor, only one statement need be submitted for
those segments, but each such segment must be identified.
(4) Each corporate or other home office which allocates costs to one
or more disclosing segments performing covered contracts shall file a
Part VIII of the Disclosure Statement.
(b) Time of filing. Any defense contractor required by paragraph
(a)(1) of this section to file a Disclosure Statement must do so prior
to award of the first covered contract received by the contractor or by
a segment of such contractor in the cost accounting period immediately
following the period in which the contractor receives awards totaling
$10 million. If the first covered contract is received within 90 days
of the start of the cost accounting period, the contractor is not
required to file until the end of the 90 days.
(2) Any business unit required by paragraph (a)(2) of this section to
submit a Disclosure Statement must do so as part of its proposal for
such contract unless the business unit has already submitted a
Disclosure Statement disclosing the practices used in the pricing of its
proposal.
(3) A corporate or home office required by paragraph (a)(4) of this
section to file a Disclosure Statement shall do so at the same time its
disclosing segment files its Disclosure Statement.
(c) Confidentiality of Disclosure Statement. (1) If the business
unit submitting a Disclosure Statement notifies the contracting agency
and the CASB that the Disclosure Statement contains trade secrets and
commercial or financial information which it regards as privileged and
confidential, the Disclosure Statement will be protected and will not be
released outside of the Government. (Persons submitting Disclosure
Statements containing such information should place an appropriate
legend on the face of the document at the time of submission.)
(2) If a subcontractor considers that the information in its
Disclosure Statement is privileged and confidential and declines to
provide it to the contractor or higher tier subcontractor, the
contractor may authorize direct submission of that subcontractor's
Disclosure Statement to the same Government offices to which the
contractor was required to submit its Disclosure Statement.
(d) Waiver. In the event the agency head determines that it is
impractical to secure a required Disclosure Statement, he may authorize
award of a contract or subcontract without submission of a Disclosure
Statement. He shall within 30 days thereafter submit a report to the
Cost Accounting Standards Board setting forth all material facts.
(Sec. 719, Defense Production Act of 1950, as amended, Pub. L.
91-379 (50 U.S.C. App. 2168))
(45 FR 62017, Sept. 18, 1980)
Preamble: For preamble relating to 351.40, see preamble M to part
331.
04 CFR 351.60 Forms.
(a) For the convenience of persons required to submit Disclosure
Statements, the Cost Accounting Standards Board has devised forms which
should be used. Form No. CASB-DS-1 is for general use. Form No.
CASB-DS-2 may be used by educational institutions operating FFRDCs.
Copies of the form may be requested by relevant Federal agencies for
distribution to affected contractors and subcontractors from the
Administrative Officer of the Cost Accounting Standards Board, 441 G
Street NW., Washington, DC 20548. If for any reason, copies of the form
cannot be obtained, the required information shall be supplied in a form
substantially in accord with the arrangement set forth in 351.130.
(b) Foreign contractors and subcontractors who are required to submit
a Disclosure Statement may, in lieu of filing a Form No. CASB-DS-1,
make disclosure by use of a disclosure form prescribed by an agency of
its Government, provided that the Cost Accounting Standards Board
determines that the information disclosed by that means will satisfy the
objectives of Pub. L. 91-379.
(Sec. 719, Defense Production Act of 1950, as amended, Pub. L.
91-379 (50 U.S.C. App. 2168))
(45 FR 62018, Sept. 18, 1980)
Preamble: For preamble relating to 351.60, see preamble M to part
331.
04 CFR 351.70 Submission.
Each national defense contractor shall submit a copy of each
Disclosure Statement, and any amendments thereto in accordance with the
method prescribed by each Federal agency for which the contractor is
performing or proposes to perform contracts subject to the rules,
regulations and standards of the Cost Accounting Standards Board.
(Sec. 719, Defense Production Act of 1950, as amended, Pub. L.
91-379 (50 U.S.C. App. 2168))
(45 FR 62018, Sept. 18, 1980)
Preamble: For preamble relating to 351.70, see preamble M to part
331.
04 CFR 351.80 Incorporation of Disclosure Statement.
Every solicitation for a contract which will be subject to the
standards, rules, and regulations of the Cost Accounting Standards Board
shall contain a provision allowing the contractor to identify and
incorporate by reference, a Disclosure Statement already on file which
will be applicable to that solicitation. Such identification and
incorporation shall satisfy the requirement for disclosure as a
condition of contracting. Agencies may, nonetheless, require submission
of additional copies of such Disclosure Statement to the extent deemed
necessary.
(Sec. 719, Defense Production Act of 1950, as amended, Pub. L.
91-379 (50 U.S.C. App. 2168))
(45 FR 62018, Sept. 18, 1980)
Preamble: For preamble relating to 351.80, see preamble M to part
331.
04 CFR 351.90 Adequacy of Disclosure Statement.
Federal agencies shall prescribe regulations by which each will
determine that a Disclosure Statement has adequately disclosed the
practices required to be disclosed by Cost Accounting Standards Board's
standards, rules, and regulations. Agencies are urged to coordinate
development of such regulations. The Disclosure Statement submitted to
the Cost Accounting Standards Board in accordance with 351.70, is for
evaluation and development of Board programs only. Consequently, such
submission to the Board does not satisfy the requirement for disclosure
as a condition of contracting, nor does any action by the Board with
respect to such statement constitute a finding of any kind regarding the
adequacy of the statements as submitted.
04 CFR 351.100 Effect of filing Disclosure Statement.
Unless the Federal agency involved provides otherwise either by
regulation or by specific notice to the contractor involved, a
Disclosure Statement submitted to the agency or incorporated by
reference shall be presumed adequate to meet the requirement that
disclosure be made as a condition of contracting. The fact that the
condition of contracting has been met shall serve only to establish what
the contractor's cost accounting practices are or are proposed to be.
In the absence of specific regulation or agreement, a disclosed practice
shall not, by virtue of such disclosure, be deemed to have been approved
by the agency involved as a proper, approved or agreed practice for
pricing proposals or accumulating and reporting contract performance
cost data.
04 CFR 351.120 Amendment of Disclosure Statement.
(a) Disclosure Statements must be amended when disclosed practices
are changed to comply with new Cost Accounting Standards. The
Statements must also be amended when practices are changed with or
without agreement of the Government under the provisions of
331.50(a)(4) (B) or (C) or 332.50(a)(3).
(b) Amendments shall be submitted to the same offices, including the
Cost Accounting Standards Board, to which submission would have to be
made were an original Disclosure Statement being filed. Revised
responses for Items 1.4.0 through 1.7.0, 8.1.0 or 8.2.0 must be
submitted at the beginning of the contractor's fiscal year only if the
response to an item in the Disclosure Statement on file requires a
change. If the contractor's sales were such that it would check the
same boxes in the Disclosure Statement, resubmission of responses
concerning these particular items is not required.
(c) For each revision of the Disclosure Statement (addition, change
or deletion), only the pages containing such revision shall be
resubmitted. Each resubmission shall include a new cover sheet and a
signed certification. In the first line of Item 0.4 of the cover sheet,
companies shall enter the date of the revision. On the next line of
Item 0.4 the date of the last cover sheet that was submitted shall be
entered. The numbers of the pages being revised and submitted with the
cover sheet shall be entered immediately above the certification. The
upper right corner of each revised page being submitted shall be marked
''Revised'' and dated with the date shown in the first line of Item 0.4.
Companies shall enter in the right margin of each page, an asterisk (*)
alongside each line containing a revision. For continuation sheets,
asterisks may be used in the right margin to identify revised material.
Agencies may prescribe criteria under which submission of a complete,
updated Disclosure Statement will be required.
(Sec. 719, Defense Production Act of 1950, as amended, Pub. L.
91-379 (50 U.S.C. App. 2168))
(45 FR 62018, Sept. 18, 1980)
Preamble: For preamble relating to 351.120, see preamble M to part
331.
04 CFR 351.130 Instructions and information.
The following instructions and information shall be used by persons
completing Disclosure Statements.
(a) This disclosure statement has been designed to meet the
requirements of Pub. L. 91-379, and persons completing it are to
describe their contract cost accounting practices. For timing of
requirement to file a disclosure statement, see 351.40. A statement
must be submitted by all defense contractors who enter into negotiated
national defense contracts with the United States in excess of $100,000
other than contracts where the price negotiated is based on (1)
established catalog or market prices of commercial items sold in
substantial quantities to the general public, or (2) prices set by law
or regulation, or contracts exempt under the provisions of 4 CFR
331.30(b). A separate disclosure statement must be submitted covering
the practices of each of the contractor's profit centers, divisions, or
similar organizational units, whose costs included in the total price of
any contract exceed $100,000, except where such costs are based on (i)
established catalog or market prices of commercial items sold in
substantial quantities to the general public, or (ii) prices set by law
or regulation, or contracts exempt under the provisions of 4 CFR
331.30(b). If the cost accounting practices under contracts are
identical for more than one organizational unit, then only one statement
need be submitted for those units, but each such organizational unit
must be identified. A disclosure statement will also be required for
each corporate or group office when costs are allocated to one or more
corporate segments performing contracts covered by Pub. L. 91-379, but
only Part VIII of the statement need be completed.
(b) The statement must be signed by an authorized signatory of the
reporting unit.
(c) The disclosure of a cost accounting practice by a contractor does
not determine the allowability of particular items of cost.
Irrespective of the practices disclosed by a contractor, the question of
whether or not, or the extent to which, a specific element of cost is
allowed under a contract remains for consideration in each specific
instance. Contractors are cautioned that the determination of the
allowability of cost items will remain a responsibility of the
contracting officers pursuant to the provisions of the applicable
procurement regulations.
(d) Unless the Federal agency involved provides otherwise, either by
regulation or by specific notice to the contractor involved, a
Disclosure Statement submitted to the agency or incorporated by
reference should be presumed adequate to meet the requirement that
disclosure be made as a condition of contracting. In the absence of
specific regulations or agreement, a disclosure practice should not, by
virtue of such disclosure, be deemed to have been approved by the agency
involved as a proper, approved, or agreed practice for pricing proposals
or accumulating and reporting contract performance cost data.
(e) The individual Disclosure Statement may be used in audits of
contracts or in negotiation of prices leading to contracts. The
authority of the audit agencies and the contracting officers is in no
way abrogated by the material presented by the contractor in his
Disclosure Statement. Contractors are cautioned that their disclosures
in response to the items herein must be complete and accurate; the
practices disclosed may have a significant impact on ways in which
contractors will be required to comply with Cost Accounting Standards.
(f) This Disclosure Statement should be answered by checking the
appropriate box or inserting the applicable Code letter which most
nearly describes the reporting unit's cost accounting practices. Part I
of the statement asks for general information concerning the reporting
unit. Part VIII covers Corporate and Group (Intermediate) offices whose
costs are allocated to one or more segments performing contracts covered
by Pub. L. 91-379. Part VIII should be completed by each such office,
and care should be taken to insure proper identification of such offices
on the cover of the Disclosure Statement. In short, while a Corporation
or group office may have more than one reporting unit submitting
Disclosure Statements, only one statement need be submitted to cover the
Corporate or Group Office operations.
(g) A number of questions in this statement may need narrative
answers requiring more space than is provided. In such instances, the
reporting unit should use the continuation sheets provided or a
facsimile thereof. The number of the question involved should be
indicated and the same coding required to answer the questions in the
statement should be used in presenting the answer in the continuation
sheet. The reporting unit should indicate on the last continuation
sheet used, the number of such sheets that were used.
(h) Contractors to whom Pub. L. 91-379 is applicable are required to
follow consistently their disclosed practices in pricing contract
proposals and in accumulating and reporting contract performance cost
data. If deviation from disclosed practices results in increased costs
being paid by the Government, contractors will be required to repay to
the Government the amount of the increased costs together with interest
charges.
(i) Pub. L. 91-379 contains an access to records clause, section
719(j) of the law states:
''For the purpose of determining whether a defense contractor or
subcontractor has complied with duly promulgated cost accounting
standards and has followed consistently his disclosed cost accounting
practices, any authorized representative of the head of the agency
concerned, of the Board, or of the Comptroller General of the United
States shall have the right to examine and make copies of any documents,
papers, or records of such contractor or subcontractor relating to
compliance with such cost accounting standards and principles.''
(38 FR 30725, Nov. 7, 1973, as amended at 39 FR 44391, Dec. 12, 1974)
Preambles: For preambles relating to 351.130, see preambles C and E
of the supplement to this part. For preamble to superseded regulations,
see preamble A of the supplement.
04 CFR 351.140 Disclosure Statement.
The data which are required to be disclosed are set forth in detail
in the Disclosure Statement form CASB-DS-1 which will be devised by the
Cost Accounting Standards Board and will be arranged substantially as
set forth below. For the form to be used by colleges and universities,
see 351.145.
Note: Forms CASB-DS-1 and CASB-DS-2, referred to in 351.140 and
351.145, respectively, when revised, will be modified in accordance with
the modifications to 4 CFR 351.130.
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(38 FR 30728, Nov. 7, 1973, as amended at 38 FR 34260, Dec. 12, 1973)
Preambles: For preambles relating to 351.140, see preambles C and D
of the supplement to this part. For preamble to superseded regulations,
see preamble A of the supplement.
04 CFR 351.145 Disclosure statement -- colleges and universities.
The data which are required to be disclosed by colleges and
universities are set forth in detail in the Disclosure Statement Form,
CASB-DS-2, which will be devised by the Cost Accounting Standards Board
and will be arranged substantially as set forth below.
Note: Forms CASB-DS-1 and CASB-DS-2, referred to in 4 CFR 351.140
and 351.145, respectively, when revised, will be modified in accordance
with the modifications to 4 CFR 351.130.
(38 FR 34260, Dec. 12, 1973)
Preamble: For preamble relating to 351.145, see preamble D of the
supplement to this part.
04 CFR 351.145 Pt. 351, App. A
04 CFR 351.145 Appendix A
The following codes and classification descriptions have been
selected from the Standard Industrial Classification Manual, 1967,
Executive Office of the President (Bureau of the Budget), which is used
by U.S. Government agencies to classify establishment data by industry.
For the most part, only those industries which account for a major
portion of defense contracting are specifically identified to a
significant 4-digit level, that is, a code whose last two digits are
each greater than zero. Where the specific industries are not
relatively large in defense contracting terms, either a group code
(ending in zero) or a major group code (ending in two zeros) is used.
An exception to this rule is made when only one specific industry is
assignable to a group, e.g., Metal Cases, Code 3411, is used because it
is the only industry in Group 3410. One other exception applies to the
group code rule: When a specific industry code is used and the group
has two or more specific industries, the remaining industry codes within
the group are consolidated into a group code ending in zero, e.g.,
Industrial Gases, is separately identified as Code 2813 and the
remaining industries in the group are consolidated into a Group Code
2810 for all other industrial organic and inorganic chemicals.
To obtain the appropriate code for entry in Item 1.3.0 of the
Disclosure Statement, each reporting organization should first examine
the list of major-group descriptions below to determine which apply to
the organization's products or services. Second, the specific codes and
descriptions for the major group or groups should be reviewed to select
the one code that most nearly identifies the product or service which
accounted for most of the organization's sales or shipments in the base
fiscal year used for the Disclosure Statement.
If research and development or modification and overhaul is
associated with a product, use a specific manufactured product code
(Codes 1911 through 3900) rather than a service code. For example,
development work associated with aircraft should be coded 3721
(aircraft) rather than 7391 (commercial research and development
laboratories).
Following are the major groups whose codes and descriptions are
included:
19 Ordnance and Accessories.
20 Food and Kindred Products.
21 Tobacco Manufactures.
22 Textile Mill Products.
23 Apparel.
24 Lumber and Wood Products except Furniture.
25 Furniture and Fixtures.
26 Paper and Allied Products.
27 Printing, Publishing and Allied Industries.
28 Chemicals and Allied Products.
29 Petroleum Refining.
30 Rubber and Miscellaneous Plastic Products.
31 Leather and Leather Products.
32 Stone, Clay, Glass and Concrete Products.
33 Primary Metal Industries.
34 Fabricated Metal Products, except Ordnance Machinery and
Transportation Equipment.
35 Machinery, except Electrical.
36 Electrical Machinery, Equipment and Supplies.
37 Transportation Equipment.
38 Professional, Scientific and Controlling Instruments;
Photographic and Optical Goods; Watches and Clocks.
39 Miscellaneous Manufactures.
15 Building Construction.
16 Construction, other than Building Construction.
17 Construction, Special Trade Contractors.
40 Railroad Transportation.
42 Motor Freight Transportation and Warehousing.
44 Water Transportation.
45 Transportation by Air.
47 Transportation Services.
48 Communication.
73 Miscellaneous Business Services.
80 Medical and Other Health Services.
82 Educational Services.
04 CFR 351.145 -- Pt. 351, Preamble A
04 CFR 351.145 -- Preamble A
Preamble to Original Publication, 2-29-72
The material set forth below is the preamble to the original
publication of part 351, February 29, 1972, at 37 FR 4139. For the
preambles to the revision of part 351 (October 4, 1973 and November 7,
1973), see preambles B and C. Portions of this preamble, relating to
parts 331, 400, and 401 have been omitted; they can be found in the
supplements to their respective parts. This preamble to the publication
of part 351 is included as part of the administrative history of part
351.
General comments. The purpose of the regulations promulgated today
by the Cost Accounting Standards Board is to implement section 719 of
the Defense Production Act of 1950, as amended, 50 U.S.C. App. 2168,
which provides for development of Cost Accounting Standards to be used
in connection with negotiated national defense contracts and for
disclosure of cost accounting practices to be used in such contracts.
The Board believes the materials being promulgated today constitute a
significant initial step toward accomplishing one of its major
objectives -- improved cost accounting and the proper determination of
the cost of negotiated defense contracts. The regulations spell out
contract coverage (part 331), disclosure requirements (part 351), a
compilation of Definitions (part 400), and two Cost Accounting
Standards, one calling for consistency in estimating, accumulating, and
reporting costs (part 401), and the other calling for consistency in
allocating costs incurred for the same purpose (part 402).
Development of the material being promulgated today began many months
ago with extensive research. It included examining publications on the
subject, conferring with knowledgeable representatives or various
Government agencies. Government contractors, industry associations, and
professional accounting associations, and identifying and considering
all available viewpoints. From this research, the initial versions of
the material now being published were developed. As a part of the
continuing research effort, these initial drafts were sent to 81
agencies, associations, and Government contractors which had expressed
interest in assisting the Board in its work, and their comments were
solicited. Some national defense contractors field-tested the material
to see how it would apply to and affect their operations and advised the
Board of their findings. In each step of the research process, the
Board and its staff have urged and received active participation and
assistance by Government, industry, and accounting organizations. Their
cooperative efforts contributed in large measure to the exposure draft
published in the December 30, 1971, Federal Register for comment.
To better assure that all who might want to comment had an
opportunity to do so, the Board supplemented the Federal Register notice
by sending copies of the Federal Register materials directly to about
175 organizations and individuals who had expressed interest or had
provided assistance in the development of the published material. Also,
a press release was distributed announcing the publication, which
resulted in numerous articles in journals. The Board availed itself of
all opportunities to publicize the proposals and solicit comments on
them.
Written comments in response to the published material were requested
by February 4, 1972. Comments were received from 105 sources, including
Government agencies, professional associations, industry, associations,
public accounting firms, individual companies, and others. The Board
appreciates the obvious care and attention devoted by commentators, and
as will be seen below, the Board has greatly benefited from the comments
received.
Many of the comments received were addressed to all parts of the
proposed Board rules as well as to the question of public availability
of the Disclosure Statements. All of the comments received have been
carefully considered by the Board taking into account the requirements
of section 719. Understandably, many of the comments were addressed to
issues which recur in two or more of the proposed parts while others
dealt only with specific sections. Comments which dealt with 11 general
issues are discussed separately below followed by a section-by-section
analysis of other comments. Appropriate changes have been made in the
material promulgated based on the Board's disposition of the comments
received.
Those comments and suggestions received which are of particular
significance are discussed below.
1. Public availability of disclosure statement. In a special notice
in the notice of proposed rule making, the Board sought comments to
assist it in its determination of whether Disclosure Statements
submitted by defense contractors and subcontractors should be available
to the general public, pursuant to the Public Information Section of the
Administrative Procedure Act (5 U.S.C. 552) or whether such information
was properly within one of the statutory exceptions to the legal
requirement for public availability.
With few exceptions, both Government and industry commentators urged
that the Disclosure Statements not be made available to the general
public. Numerous arguments were presented. Among them were that public
disclosure by a Government official would violate 18 U.S.C. 1905 (a
provision in the Criminal Code making it a crime for a Government
official to make certain matters public in certain circumstances), thus
making disclosure improper under an exception to the requirement for
public availability set out in 5 U.S.C. 552(b)(3); that the cost
accounting practices were trade secrets or property of considerable
value and that disclosure would deprive the company of their value
without compensation; that disclosure would reduce competition; and
that the public might be misled in that it might construe disclosures
respecting the defense segment of a contractor's business as
representative of his entire business organization.
An argument in favor of making the Disclosure Statements available to
the public was made by a public interest group. It argued that 5 U.S.C.
552 clearly applies to Disclosure Statements, which do not fall within
any exception to public availability; that the public requires access
to Disclosure Statements in order to consider adequately and comment
intelligently on any Cost Accounting Standards proposed by the Board;
that public availability would enhance competition; that Disclosure
Statements which are ultimately approved will form a body of precedents
to guide others in complying with future Board Standards and that public
availability will enable citizens and the Congress to hold both the
Board and contracting officials accountable for implementation of
section 719. A few commentators stated that they favored, or could see
no harm to companies from, public availability of contractors' disclosed
practices.
The Board is especially impressed with arguments that cost accounting
practices have never been made public, that companies have regarded and
treated them as confidential, and that a company's competitive position
would be damaged by public disclosure of its cost accounting practices.
Since disclosure will be required of many companies or divisions of
companies whose principal competitors are not subject to Board
regulations, the Board recognizes there might arise competitive
disadvantage to the disclosing company or division if its competitors
may see its disclosure but need make none themselves. The Board has, in
light of these latter arguments, concluded that information received in
response to Disclosure Statements is within the exception set forth at 5
U.S.C. 552(b)(4) and that the Board will not make Disclosure Statements
public in any case when the company or segment files its statement
specifically conditioned on the Government's agreement to treat the
Disclosure Statement as confidential information.
A provision to this effect has been added at 351.4(d) of part 351.
Additionally, paragraph (a)(1) of the contract clause set forth at
331.5 has been modified to this effect, and a provision added to it so
that subcontractors may submit Disclosure Statements directly to the
contracting officer.
While the Board has concluded that public availability of the
Disclosure Statements of identified contractors is not required, it
will, nevertheless, implement its announced intention of compiling
statistical summaries of disclosure data and making those studies
available to the public. The Board believes that the creation of a data
bank of cost accounting practices will greatly benefit the Board's own
research efforts and the formulation of Cost Accounting Standards;
summaries of these data or studies of them should also prove to be of
great value to the public. Aggregated information not identified to
particular contractors will, therefore, be made available to the public.
2. Contractor-subcontractor relationships. Several commentators,
stating that contractors cannot dictate the cost accounting practices of
their subcontractors at any tier, urged that the Board not hold
contractors responsible for increased costs to the United States arising
from the failure of subcontractors to follow Cost Accounting Standards
or disclosed cost accounting practices. Several commentators also urged
that the contractor not be subject to the possibility of a default
termination by reason of the actions or inactions of any of its
subcontractors at any tier. Finally, some commentators urged that the
Board establish a novel concept of privity between the contracting
agency and subcontractors with respect to any concerns stemming from
Board rules, regulations, and Cost Accounting Standards.
The Board has dealt with many of the issues touched on by these
commentators in its conclusions, discussed below, respecting the phasing
of applicability and the proposed termination-for-default language in
the Contract Clause. The Board is also mindful of the desirability of
its maintaining neutrality with respect to contracting policies outside
its jurisdiction; thus it should avoid establishing a standard or
policy which would influence decisions of whether work should be
performed in-house or subcontracted. A Board policy permitting
contractors to avoid responsibility for the actions of their
subcontractors could surely have such an impact.
The Board reaffirms the established principle that prime contractors
are responsible to the Government for performance of their contracts in
all required respects and urges that contractors who are fearful of
deficiencies in their subcontractors' performances protect themselves by
use of whatever means they currently employ under other flow-down
contractual requirements.
3. Exemptions. Many commentators urged the Board to provide
exemptions either to the requirement to file a Disclosure Statement or
to both that requirement and the requirement to follow Cost Accounting
Standards. Exemptions were urged for subcontractors below the first
tier, subcontractors with small amounts of defense contracting business,
producers of basic or raw materials, colleges and universities,
construction contractors, firms which would qualify as small businesses,
and others.
The Board has long been concerned with the question of appropriate
exemptions. It has specifically requested interested groups to offer
suggestions for criteria for use by the Board in considering exemptions.
It also requested its staff to study exemptions and has discussed the
staff investigations at Board meetings. In light of these studies and
the comments received, the Board has found no persuasive reasons for
issuing blanket or class exemptions at this time.
The Board recognizes, however, that individual Cost Accounting
Standards may by their nature be inapplicable or inappropriate to
certain classes or categories of defense contractors or contracts. The
Board will continue to consider exemptions from individual proposed Cost
Accounting Standards as appropriate.
With respect to the requirement to submit a Disclosure Statement, the
Board's proposed regulation provides a phasing of that requirement. The
Board remains convinced that a company which together with its
subsidiaries received prime contract awards of negotiated national
defense contracts including supplemental awards during Federal fiscal
year 1971 totaling more than $30 million should be required to submit a
Disclosure Statement as soon as part 351 of the Board's regulations
becomes effective. In order to provide both to other contractors and to
Government agencies adequate time within which to study the use of
Disclosure Statements, however, the Board will defer determination of
the date after which other affected contractors and subcontractors may
be required to file Disclosure Statements. From time to time, the Board
will announce the dates of applicability to other contractors and
subcontractors.
4. Applicability date of standards, rules, and regulations. A
related issue raised by many commentators is a request that Cost
Accounting Standards be made applicable 90 days after issuance or at the
beginning of the contractor's next fiscal year, whichever is later. In
order to provide the maximum benefits from use of Cost Accounting
Standards, the Board has decided not to adopt any rule which would
automatically delay the effective date of Cost Accounting Standards
beyond the dates contemplated in section 719(h). That section provides
a minimum of 4 months' notice from the date of promulgation, to
contractors of the likely applicability of a Cost Accounting Standard.
The Board regards this as an adequate time for companies to prepare for
use of the standard. The Board nevertheless recognizes that certain
standards by their nature may require deferring applicability to the
beginning of a contractor's fiscal year next following the effective
date, and in such cases that applicability will be stated in the
standards concerned.
5. Agency administrative responsibility. Many commentators, noting
the Board's statutory responsibility to promote uniformity and
consistency in cost accounting practices used in defense contracting and
subcontracting, have suggested that uniformity would be promoted by
giving the Board or another single Federal agency the sole implementing
responsibility respecting Board regulations. Thus, some commentators
recommended that the Board itself issue regulations prescribing the
frequency of submission of Disclosure Statements and where they must be
submitted. Other commentators urged that the Board issue a single
regulation prescribing exact methods by which increased costs to the
United States will be determined. Other commentators urged that the
Board prescribe methods by which advance agreements affecting more than
one contract shall be made, some commentators urging that the Board
itself make those agreements. Others urged that the Board rule that the
contracting agencies must act to approve or disapprove Disclosure
Statements within a stated period of time. And finally, some
commentators urged that the Board itself be the sole agency to approve
the cost accounting practices disclosed through submission of a
Disclosure Statement.
The Board finds these recommendations cogent. It also recognizes
that to act pursuant to them would require a Board regulation directed
to the administrative and contracting procedures of many Federal
agencies and in some cases -- such as the recommendation for Board
approval of disclosed cost accounting practices -- substitute a Board
regulation for the exercise of contracting officers' discretion.
The Board, therefore, has decided not to implement at this time the
suggestions set forth in this connection. The Board nevertheless will
watch closely during the early implementation by contracting agencies of
Board rules, regulations, and Cost Accounting Standards so that it may
become aware of any diversity of regulations or actions by contracting
agencies. If the Board finds that an unacceptable amount of diversity
has arisen, it will be prepared to reconsider the recommendations that
the Board issue its own regulations in many of the areas left by Board
regulations to the discretion of contracting agencies.
Many commentators have expressed concern about the problems which
could arise from inconsistent actions by different Federal agencies
respecting disclosed practices, changes in practices, and equitable
adjustment of contract prices and costs. The Board has directed its
staff to work with representatives of relevant Federal agencies with the
objective of obtaining designation of a single contracting officer for
each contractor or major component thereof in order to achieve
consistent practices within the standards issued by the Board.
6. Contract modifications. Several commentators have urged that
negotiated contract changes and amendments over $100,000 to contracts
which are themselves not subject to Board jurisdiction should not be
covered. One commentator pointed out that in a long-term contract, most
changes represent ''instead of'' type changes with cost of price
adjustments only for the incremental effect of the change. This
commentator stated that there is no practical way separately to identify
these incremental costs.
The Board is persuaded that for the time being it should not cover
negotiated modifications to contracts exempt at their inception. It
has, therefore, eliminated coverage for the time being of such contract
modifications. In doing so, however, the Board intends that the annual
extension of existing negotiated contracts and similar contract
modifications would not be exempt from the Board's rules, regulations,
and Cost Accounting Standards.
7. Definitions. The Board is also persuaded of the value of one
commentator's suggestion that the Board provide a compilation of
definitions of the words or phrases defined in individual Cost
Accounting Standards, making those definitions applicable to all such
standards. Consequently, a new part 400 has been added, and all terms
defined in parts 401 and 402 have been placed in it, although they also
remain in the particular standards in which they are defined. As more
standards are added, any terms defined in them will also be added to
part 400. However, terms defined in parts 331 and 351 are not included
in the glossary of definitions, nor are terms used in those parts
necessarily to bear the meanings ascribed to those terms in part 400.
8. Application to individual contracts. Several commentators urged
that the Board adopt the date of final agreement on a negotiated price
as a cut-off date for the disclosure of cost accounting practices. The
Board has reviewed the merits of selecting that date rather than the
date of award to establish the date as of which the contractor's
Disclosure Statement must accurately reflect his cost accounting
practices, at least with respect to those contracts where cost or
pricing data have been submitted pursuant to Pub. L. 87-653. The Board
has decided to use the date of final agreement on price, as shown on the
signed certificate of current cost or pricing data, with respect to
contractors who have submitted cost or pricing data, and to use the date
of award of the contract for all other contractors. In addition, the
Board has concluded that it is appropriate to use those dates to
establish which Cost Accounting Standards shall be applicable to the
proposal and to the contract at its inception. Appropriate changes in
parts 331, 351, and 401 have been made to reflect this decision.
9. Price adjustments. Many commentators stated that where a
contractor's departure from existing disclosed practices is occasioned
by the contractor's wish to adopt a newly issued Cost Accounting
Standard for all contracts, the Government should be willing to provide
upward price adjustment whenever an existing contract is rendered
thereby more expensive to perform. The view was often expressed that
contractors could not maintain one accounting practice for contracts
subject to a particular Cost Accounting Standard, but a different
practice for contracts not so subject; therefore, it was alleged, once
a contractor had to adopt a standard for any one contract, he would of
necessity adopt it for all contracts and amend his Disclosure Statement
accordingly.
The Board notes in this connection that the Cost Accounting Standard
at part 402 requires consistency in the allocation of all direct and
indirect costs under all covered contracts. If a Cost Accounting
Standard were issued which required a company to modify its disclosed
cost accounting practices with respect to its earlier practice of
allocating direct and indirect costs, part 402 would require amendment
of existing disclosed practices so as to meet that requirement. In such
a case, the Board believes it would be unfair to deny an equitable price
adjustment arising from such amendment.
Further, the Board has been persuaded by the strong arguments from
industry commentators that companies with more than one contract,
subject to different Cost Accounting Standards, cannot maintain multiple
records to account for each contract related to its set of standards.
Another industry commentator stated that the vast majority of companies
must apply any required cost accounting practices across their total
business, and that it would be impractical if not impossible for
companies to apply different practices to different contracts. The
Board has accommodated this view by enabling contractors to apply
uniform practices to all covered contracts. Such application will also
serve to improve cost accounting practices for all contracts.
The Board has consequently modified both part 331 and part 351 to
provide three things: First, that a contractor's practices disclosed
for any contract shall be the same as the practices currently disclosed
and applied on all other covered contracts and subcontracts being
performed by that contractor. Second, that a contractor must amend his
disclosure of cost accounting practices as new standards are issued and
become applicable to new contracts if a change in practices is
necessary, so that, at any given time, the same practices prevail under
all of the contractor's existing contracts and subcontracts subject to
Board jurisdiction. Similarly, contractors must amend Disclosure
Statements to reflect any change in practices disclosed under later
contracts. Third, that for those amendments of disclosed practices
applicable to a particular contract which are occasioned by the issuance
of a new Cost Accounting Standard, the Government will equitably adjust
the contract price in accordance with the changes clause in the contract
or reimburse any increased costs under that contract.
In view of the phasing of the requirement to file a Disclosure
Statement, the Board has adopted a contract provision that will provide
equitable adjustments in appropriate cases when a contractor who has not
yet filed a Disclosure Statement is required to change his established
cost accounting practices to comply with newly issued Cost Accounting
Standards. On the other hand, any departure from disclosed cost
accounting practices which is not required by a newly issued Cost
Accounting Standard will not be subject to equitable price adjustment,
but only to price adjustment downward in the event that that departure
would otherwise result in increased costs being paid by the United
States. The Board wishes to emphasize that if the parties to a
contractual negotiation mutually agree to a price based on exclusion of
costs which are allocable under the contractor's disclosed cost
accounting practices, such agreement shall not affect the requirement
for conformity with Board rules, regulations, and Cost Accounting
Standards in the contractor's allocation of costs between the contract
being negotiated and other work.
10. Materiality. The Board notes that many commentators urged that a
concept of materiality be incorporated in the Board's regulations, to
the end that minimal or insignificant modifications of or failures to
use disclosed cost accounting practices would not be subject to price
adjustment.
The Board agrees that the administration of its rules, regulations,
and Cost Accounting Standards should be reasonable and not seek to deal
with insignificant amounts of cost. Since this rule of common sense is
already practiced by the Government, the Board does not believe that
there is any need to attempt to formulate and state in acceptable
concept of materiality applicable to all Board rules, regulations, and
standards, although the Board might consider doing so if subsequent
events indicate the necessity therefor. The Board does recognize that
in particular standards a ''materiality'' statement may be useful, and
in such cases, it will include one. See for example the addition at
402.50(e).
11. Additional requirements by agencies. As a final general point,
concern was expressed that Federal agencies might require submission of
cost proposals in ways inconsistent with the cost accounting practices
of some or all of the potential offerors. The Board recognizes that
this has happened in the past, but it notes that Board rules,
regulations, and Cost Accounting Standards are to be used by relevant
Federal agencies as well as by contractors and subcontractors, and it
believes that henceforth requests for proposals must be fully consistent
with such rules, regulations, and standards, although of course the
Federal agency may ask for supplementary information to accompany
proposals if this is needed to meet the agency's requirements.
Section 351.14 Disclosure Statement. Several commentators pointed
out that the statement was too detailed or complex, or urged that the
Statement be modified to require only a statement of cost accounting
policy and philosophy. The Board believes that such generalized and
unspecific statements would not assist it adequately in performance of
its responsibilities. Further, in order to permit the statutory
requirements of disclosure of cost accounting practices and consistency
to be met, the Board concluded that the extent of detail now called for
in the Disclosure Statement is necessary.
Two commentators suggested that references to ASPR, the Internal
Revenue Code and financial accounting be deleted from the Disclosure
Statement since the contractors stated they are irrelevant to their cost
accounting practices. The Board did not agree with these suggestions
for the reason that in most cases the regulations have been referred to
in the Statement in lieu of redefining certain words, such as
''Independent Research and Development Costs.'' Furthermore, with
particular respect to the Internal Revenue Code, the Board cannot ignore
that income tax considerations often influence cost accounting
practices, such as those for depreciation.
The Board has deleted the item in the Statement calling for an
explanation of the difference between commercial and Government cost
accounting practices since the Board agrees with several commentators
that inclusion of such information in the Disclosure Statement is not
needed.
An educational institution and one association pointed out that the
terminology in the Disclosure Statement was not responsive to the
special circumstances of educational institutions. The Board made
appropriate word-changes to a number of items in the Statement to
accommodate educational institutions.
By far, the majority of the comments addressed to the Disclosure
Statement dealt with suggestions for clarification of terminology and
intent of the various items in the statement. The Board considered each
comment and made appropriate revisions to the statement. The part most
affected by these revisions is Part IV -- Indirect Costs. Several items
in the part were rearranged in sequence to improve clarity, and
instructions covering the items in Part IV were restated.
Effective date and application. For the convenience of readers, the
following summarizes the effective dates set forth in 331.8, 351.4(e),
and parts 400, 401, and 402, which were transmitted to the Congress on
February 24, 1972, pursuant to section 719(h)(3) of the Defense
Production Act of 1950 as amended. After the expiration of a period of
60 calendar days of continuous session following the date of transmittal
to the Congress, the regulations herein promulgated shall take effect as
set forth in those regulations, unless there is passed by the two Houses
a concurrent resolution stating in substance that the Congress does not
favor the proposed standards, rules, or regulations.
3. The provisions of part 351 will be applicable to any contractor
who submits a proposal which results in contracts containing the clause
in 331.5 and whose net awards of negotiated national defense prime
contracts during Federal fiscal year 1971 totaled more than $30 million.
Contractors whose net awards were less than that amount may be required
to complete or submit a Disclosure Statement as the Board announced
extensions of this requirement to such contractors.
4. Any contractor having a contract awarded prior to July 1, 1972,
which contains a clause which already incorporates requirements
governing submission of Disclosure Statements and application of Cost
Accounting Standards will be required to comply with the provisions of
that clause. In this connection, such contractor and the respective
contracting agencies whose contracts contain such a clause should review
those contracts to determine whether negotiations should be instituted
to make parts 400 through 402 applicable to them.
04 CFR 351.145 -- Pt. 351, Preamble B
04 CFR 351.145 -- Preamble B
Preamble to Amendments of 10-4-73
These amendments (38 FR 27507, Oct. 4, 1973) added 351.41 and
351.50(c), and amended 351.70.
The purpose of this publication by the Cost Accounting Standards
Board is to modify part 351, Basic Requirements, of its rules and
regulations. A proposed modification to part 351 was published in the
Federal Register of July 27, 1973 (38 FR 20101). That proposal was a
revision of an earlier proposal published on May 21, 1973. Thirty-three
sets of comments were received in response to the July publication and
after considering those comments (discussed below), the Board is today
publishing an amendment to its rules relative to the requirement for the
submission of Disclosure Statements by defense contractors.
The Board's July 27 proposal required that, in determining who must
file Disclosure Statements, only negotiated contracts of the type which
are subject to Cost Accounting Standards were to be considered. All
commentators who dealt with this matter supported the proposal. The
Board, therefore, in the amendments being published today, specifically
limits the contract awards to be included in the computation of a
contractor's volume of defense contracts in determining whether the
revised filing requirement has been met, to those of the type subject to
the Board's jurisdiction. The Board recognizes that Standards were not
required in contracts in Fiscal Year 1972. In view of this, the
amendment refers to ''negotiated national defense prime contracts of the
type which are subject to Cost Accounting Standards.'' This filing
requirement, therefore, includes all negotiated defense prime contracts
in excess of $100,000 except those where the negotiated price is based
on (1) established catalog or market prices of commercial items sold in
substantial quantities to the general public or (2) prices set by law or
regulation, or contracts which are otherwise exempt.
The amendment being published today by the Board to reduce the dollar
level above which filing of a Disclosure Statement will be required
excludes from the computation the amounts of all subcontracts and those
negotiated defense prime contracts not subject to Cost Accounting
Standards. In view of this exclusion, the Board is providing that if
the dollar volume of prime contract awards to be considered exceeds $10
million, the contractor will be required to submit a Disclosure
Statement. Also, in computing the amount, the amendments require that
contracts awarded in either Federal Fiscal Year 1972 or 1973 should be
considered. Contractors who meet the threshold amount in either year
would be required to file Disclosure Statements, effective April 1,
1974.
The Board believes that the inclusion of the amount of subcontract
awards in the Disclosure Statement filing requirement would be
appropriate because subcontracts, unless specifically exempt, are
subject to the Board's Standards, rules and regulations. The Board
recognizes, however, that there is a lack of records relative to the
nature of subcontracts awarded during fiscal years 1972 and 1973.
Because of this, the Board concludes that it is inappropriate to include
subcontracts in the determination of the threshold amount for filing
Disclosure Statements at this time.
The amendments being published today thus limit consideration to the
dollar value of prime contracts only. The Board wishes to point out,
however, that future levels of the threshold amount may call for
inclusion of the dollar value of subcontract awards in the calculation.
Contractors are hereby advised that they may be required to determine
the dollar value of negotiated defense subcontract awards subject to
Cost Accounting Standards beginning with July 1, 1973. Contractors and
subcontractors may find it advantageous to begin to identify and
accumulate the value of such awards separately.
A major defense agency commented that reduction of the threshold at
this time would be premature. It stated that a large number of
Disclosure Statements would now be required from contractors less likely
to have sophisticated accounting systems. Consequently, greater agency
manpower efforts would be required to review them for adequacy. Also,
the agency expressed concern with the upcoming work required for
compliance reviews and the possibility of negotiation of price
adjustments relative to Standards. Finally, it stated that a number of
manpower spaces have already been provided in order to support Board
requirements. The agency suggested that a threshold reduction be
deferred until after July 1, 1974.
The Board believes that Disclosure Statements from ''contractors less
likely to have sophisticated accounting systems'' would seem to be
especially needed by the Government in order to know more precisely how
such contractors account for their costs. Additionally, the Government
has gained a great deal of experience in reviewing the Disclosure
Statements already received, which should aid review of newly submitted
statements on an expeditious basis. With respect to the potential
workload required in compliance reviews, Government agencies have always
had a responsibility for reviewing contractor accounting practices and
the use of those practices for Government contract costing. The
Disclosure Statement provides a benchmark which should facilitate such
reviews in the future. Moreover, the Board is advised that most
Disclosure Statements filed under the existing $30 million threshold
have been reviewed for adequacy, and compliance reviews are now being
made as a part of other routine audit work.
The need to provide manpower spaces to support Board requirements is
to be expected. The advantages of the expanded disclosure requirement,
however, are many. For example, another defense agency strongly
endorsed the Board's proposal to reduce the threshold because of the
useful information provided in Disclosure Statements to contracting
officers and auditors. Additionally, one agency previously reported to
the Board that the Disclosure Statement has become a valuable tool in
giving the negotiator more cost visibility while another referred to the
Statement as a significant asset for use in reviewing contract
proposals. After considering the agencies' comments referred to above,
the Board has concluded that a reduction in the threshold is desirable
and within the capabilities of the agencies' staffs to review the
additional statements that would be submitted.
The Board's July proposal included an effective date of January 1,
1974. The Board has concluded that additional time between the
publication of these amendments and the effective date of the reduced
threshold should be given to allow agencies to prepare fully to handle
the additional volume of Disclosure Statements that will be submitted.
Also, additional time will further assure that contractors meeting the
new threshold requirement can complete the Disclosure Statement without
interference with the prospective award of contracts. For these
reasons, the amendments being published today require that contractors
meeting the threshold must submit a Disclosure Statement in order to
receive a covered contract after April 1, 1974.
Nine commentators urged the Board to provide an exemption for profit
centers, divisions, etc., which are predominately commercially oriented
and which have only a small dollar volume or percentage of covered
defense contracts. The Board has announced that it is initiating a
study to consider the establishment of a minimum dollar amount or
percentage of covered contract effort below which contractors' profit
centers and divisions would be exempt from Board Standards, rules and
regulations, including the disclosure requirement. In any case, the
Board has concluded that $10 million in covered contracts on a company
wide basis is a significant dollar volume and that it warrants
establishment of the requirement for submission of a Disclosure
Statement.
Two commentators objected to the establishment of an absolute dollar
amount of awards as a basis for determining the requirement for filing a
Disclosure Statement. They suggested that a percentage of overall
business would be more appropriate. This kind of information is not
available at the present time. In estimating the number of Disclosure
Statements that would be submitted at any threshold amount, and relating
that number of statements to the agency's capability to process them,
the Board uses statistics on contract awards maintained by defense
agencies. Because of this, for the present the Board has retained the
requirement to compute the threshold amount for filing a Disclosure
Statement in terms of a dollar volume of contract awards. The study
discussed above may provide information to allow the Board to consider
use of a percentage of covered contracts in relation to total business
as a factor in setting future threshold requirements.
While not specifically related to the Board's proposal of July 27,
1973, the Board has received a number of oral inquiries concerning the
intent of the second sentence of 351.120(d) of the Board's regulations,
which states:
Revised data for items 1.4.0 through 1.7.0, 8.1.0 and 8.2.0 must be
submitted annually at the beginning of the contractor's fiscal year.
The Board did not intend that the changes to these items should be
considered in counting the number of changes which would necessitate the
resubmission of an entire Disclosure Statement. This information, which
relates to the volume of business, should be sent to the recipients of
Disclosure Statements only on an annual basis and only if the responses
to the items in the Disclosure Statement on file require a change. If
on a year-to-year basis, the sales data remain such that the contractor
would check the same box in the Disclosure Statement, the Board's rules
and regulations do not require resubmission of data concerning these
particular items.
The Board's July 27 proposal included a requirement that contractors
were to submit a copy of their Disclosure Statement to the Board only
after a determination of adequacy has been made of the Statement. All
commentators who dealt with this point supported this proposal, and it
is included in the amendment being published today.
Today's publication is numbered in consonance with the new numbering
system published on September 5, 1973, as part of the proposal set forth
in 38 Federal Register 171 at page 23971 et seq. Pending adoption of
the September 5, proposal, references to 331.60, 351.40, 351.50, and
351.70 refer to 331.6, 351.4, 351.5 and 351.7 respectively of the
Board's current rules and regulations. The new 351.41 will be located
immediately after 351.4 which will become 351.40.
04 CFR 351.145 -- Pt. 351, Preamble C
04 CFR 351.145 -- Preamble C
Preamble to Revision of part 351, 11-7-73
This publication (38 FR 30725, Nov. 7, 1973) revised part 351 in its
entirety, with the exception of 351.41, 351.50(c) and the last
sentence of 351.70.
The purpose of this publication by the Cost Accounting Standards
Board is to amend parts 331, 351, 400, 401, 402, 403, and 404 of its
rules and regulations. The amendments, which are minor clarifications
to the regulations, were published in the Federal Register of September
5, 1973 (38 FR 23971). The amendments: (a) Re-number parts 331 and 351
to facilitate insertion of future modifications to those parts; (b)
clarify one section of the contract clause at 331.5; and (c) modify
certain definitions in parts 400, 401, 402, 403, and 404 for the
purposes of uniformity among the various parts. Only one comment in
response to the September publication has been received by the Board.
This expressed agreement with the proposed changes.
In view of the foregoing, the following amendments to the Board's
regulations are being made effective November 7, 1973:
04 CFR 351.145 -- Pt. 351, Preamble D
04 CFR 351.145 -- Preamble D
Preamble to Amendment of 12-12-73
This publication (38 FR 32460, Dec. 12, 1973) amended 351.140 and
added a new 351.145.
The purpose of this publication by the Cost Accounting Standards
Board is to modify part 351, Basic Requirements, of its rules and
regulations. A proposed modification to part 351 was published in the
Federal Register of September 17, 1973 (38 FR 26072). That proposal
dealt with a Disclosure Statement form designed expressly for submission
by colleges and universities. Comments were requested on that proposal
from the general public.
Public Law 91-379 which applies to most negotiated defense prime
contracts and subcontracts in excess of $100,000 requires that
contractors shall disclose in writing their cost accounting practices.
The Disclosure Statement form, CASB-DS-1 has been designed to facilitate
the meeting of this requirement by contractors. Representatives of
colleges and universities had expressed to the Board a desire to have a
separate Disclosure Statement to cover their practices. Form CASB-DS-2,
being published today, was devised for that purpose and incorporates
terminology more commonly used by colleges and universities.
Comments on the September 17 proposal were received from 15
commentators, who offered suggestions for changing the proposed form to
explain or further clarify the intent of the questions. Insofar as
practicable, the Board has made changes to the college and university
Disclosure Statement form to accommodate the suggestions made.
Colleges and universities required to submit Disclosure Statements
after April 1, 1974, should use Form CASB-DS-2. Any college or
university which has previously submitted a Disclosure Statement should
use Form CASB-DS-2 for any amendments which are to be effective after
April 1, 1974.
04 CFR 351.145 -- Pt. 351, Preamble E
04 CFR 351.145 -- Preamble E
Preamble to Amendments Published 12-24-74
This publication revised 351.40(a) and amended 351.130, and was
published on Dec. 24, 1974, at 39 FR 44389.
The purpose of this publication by the Cost Accounting Standards
Board is to adopt modifications to part 331, Contract Coverage, and part
351, Basic Requirements, of its rules and regulations. These
modifications will provide an exemption from Cost Accounting Standards
Board requirements for certain national defense contracts and
subcontracts of $500,000 or less.
Public Law 91-379 requires that Cost Accounting Standards must be
used in all negotiated prime contract and subcontract national defense
procurements with the United States in excess of $100,000, with certain
stated exceptions. From time to time the Board refers to contracts
subject to its rules and regulations as ''covered contracts''. Section
719(h)(2) of Pub. L. 91-379 authorizes the Cost Accounting Standard
Board to prescribe rules exempting from its requirements such classes or
categories of national defense contractors and subcontractors as it
determines, on the basis of the size of the contracts involved or
otherwise, are appropriate and consistent with the purposes sought to be
achieved by Pub. L. 91-379. The Board has granted several exemptions
to classes or categories of contractors and subcontractors and also has
established a procedure under which waiver of the Board's requirements
may be granted for individual contracts.
A proposed exemption increasing the minimum contract amount requiring
compliance with Cost Accounting Standards Board rules, regulations and
Standards from $100,000 to $500,000 was published by the Board on
September 27, 1974 (39 FR 34669). The Board received 82 responses to
the September 27 proposal. Comments were received from individual
companies, government agencies, professional associations, industry
associations, public accounting firms, and individuals. All of these
comments have been carefully considered by the Board, and the Board
takes this opportunity to express its appreciation for the helpful
suggestions which have been furnished.
The comments below summarize the major issues discussed by
respondents in connection with the initial publication and explain the
Board's disposition of these issues.
Issuance of the exemption. Practically all the commentators
expressed concurrence in the proposed exemption, giving either
unqualified support or support with added comments that additional
exemptions should also be considered. However, three commentators -- a
constituting firm, a major aerospace company and a Government agency --
disagreed with the proposed exemption, stating that an increase in the
threshold for compliance with CAS requirements was inconsistent with the
Board's objective of establishing uniformity and consistency among
contractors doing business with the Government.
The Board agrees that the adoption of the proposed regulation will
exempt a substantial number of contractors and subcontractors who
otherwise would be covered, and consequently will permit such companies
to follow accounting practices other than those set out in Cost
Accounting Standards. However, the Board is aware that compliance with
its rules, regulations and standards may involve additional
administrative effort, particularly on the part of small companies,
which may not be commensurate with the benefit to the Government or the
contractor resulting from such compliance. The Board, after considering
the efforts required by both the Government and its contractors to
assure compliance on all covered contracts in excess of $100,000, is
persuaded that maximum benefit to the Government with minimum cost can
be achieved by limiting the mandatory application of its standards to
contractors who receive awards which constitute a substantial majority
of the national defense procurement dollars. As was stated at the time
the proposed exemption was issued for comment, some 70 percent of the
prime contractors of the Department of Defense did not receive one or
more negotiated awards in excess of $500,000 in Fiscal Year 1973. Thus,
only 30 percent, or approximately 750 prime contractors, who received
contract awards totaling $20 billion, would continue to be covered. The
exemption would remove coverage from only about 10 percent of the dollar
value of annual DOD awards.
In view of the foregoing, the Board considers the proposed exemption
increasing the minimum contract amount requiring compliance with the
Cost Accounting Standards Board rules, regulations, and standards to be
in keeping with the purposes sought to be achieved by Pub. L. 91-379
and to be an appropriate exercise of the authority granted to the Board
by section 719(h)(2) of that law.
Increase exemption on all contracts to $500,000. A number of
commentators suggested that the $500,000 single contract threshold for
compliance with Board rules, regulations, and standards be changed to
exempt all contracts of $500,000 or less. Those giving reasons in
support of this suggestion generally based their comments on
simplification of administration. These commentators felt that it would
be difficult for the Government or prime contractors, when awarding a
prime contract or subcontract in excess of $100,000 to determine whether
the contractor or subcontractor had in existence a prior $500,000
covered contract.
The Board, in proposing the $500,000 threshold, did so with the
intent of exempting those companies which do not receive contracts in
excess of $500,000 from the Government. However, it was decided in the
interest of consistency in cost accounting practices that once a
contractor had received a covered contract of that size, compliance with
CASB rules, regulations and standards on contracts at the level
established in Pub. L. 91-379 was appropriate. This is also consistent
with the desire expressed by contractors to follow a single set of
accounting practices. Further, the requirement for coverage of
contracts in excess of $100,000 where the contractor already has
received a covered contract in excess of $500,000 will permit the small
contracts to be available for equitable adjustment if subsequently
issued standards should become applicable. Moreover, once the
administrative effort has been expended to comply with standards for
contracts in excess of $500,000, compliance with standards on contracts
above the statutory threshold of $100,000 requires little added effort.
With respect to the commentators' statements concerning the
difficulties, when making an award exceeding $100,000, of determining
whether a contractor or subcontractor had in existence a prior award
exceeding $500,000, the Board feels that an administrative requirement
can be established for obtaining this information. A similar
requirement now exists concerning the disclosure statement, whereby
contractors are required to submit a disclosure statement, state that
they have previously filed a disclosure statement, or submit a
certificate of monetary exemption. The Board feels that a similar
requirement can be set concerning the $500,000 level. The Board is not
persuaded that this matter would create problems of sufficient
significance to eliminate coverage down to the $100,000 level.
In considering the advantages of the exemption as proposed compared
to its assessment of the administrative difficulties foreseen by
commentators, the Board is persuaded that its proposal relative to
coverage of awards in excess of $100,000 should not be changed.
Exemption based on sales. A number of commentators urged that the
Board establish an exemption based on sales, using either minimum annual
dollar amount of sales to the Government, or Government sales as a
percentage of total annual sales, or a combination of these two factors.
The most frequently suggested amount was $10 million of sales to the
Government or Government sales amounting to 10 percent of total annual
sales. The objective sought by these commentators was an exemption of
those companies or business units whose sales to the Government
constituted a reasonably small portion of their total annual sales and
whose business was essentially commercially oriented.
The Board has given lengthy consideration to the use of a sales basis
for the establishment of a minimum threshold for compliance with its
rules, regulations and standards. It did not use that basis at this
time due to the nature of the problems involved in administering an
exemption based on sales. In either of the situations suggested by
commentators, the representation concerning the amount of sales must be
made by the contractor and subsequently verified by the Government.
This verification would impose very substantial and time-consuming
efforts on both the Government and the contractor. Particularly in the
case of Government sales as a percentage of total sales, Government
representatives would be placed in the position of examining a
contractor's total sales, including those made in its commercial
business. Examination of a company's records concerning its total sales
is not presently performed by Government procurement activities and
would present new and unique problems to both parties as well as
requiring substantial additional effort on the part of Government
representatives.
An exemption based on sales would require a measurement period during
which a contractor's status with respect to compliance with standards
would be determined. Contracts under which sales were recorded during
this period would not be subject to standards. If the volume of sales
during the measurement period exceeded a stated threshold, a contractor
would then be required to comply with standards under contracts received
in subsequent periods. Thus, the contracts that brought the contractor
under the Board's rules would not be subject to standards, while those
received at a later time would be.
The Board has decided that the administrative problems involved with
an exemption based on sales should be considered before establishing
such a threshold. The Board will continue to study these problems and
investigate whether exemptions based on criteria other than a minimum
contract amount would be appropriate and consistent with the purposes of
Pub. L. 91-379.
Retroactivity. Several commentators requested that the Board modify
its proposal so as to provide retroactive exemption to existing
contracts where the circumstances are such that these existing contracts
would have been exempt if awarded after the effective date of the
proposed regulation.
The Board has no authority to modify existing contractual agreements
between the government procurement agencies and their contractors.
However, the Board sees nothing inconsistent with its regulations or
with Pub. L. 91-379 in modification by the procurement agencies of
contracts in this category, assuming of course that the Government
receives adequate consideration for deletion of the CAS requirement.
Increase minimum amount. A number of commentators recommended that
the exemption proposed be increased to an amount greater than $500,000,
the figure of $1,000,000 being frequently mentioned. The Board is not
now prepared to raise further the minimum contract amount requiring
compliance with its promulgations. The Board, in studying an exemption
based on minimum contract amount, concluded that the $500,000 threshold
was the most appropriate one for achieving its objectives, all factors
considered. The Board will continue to examine various limitations but
considers that the threshold established in the proposed exemption best
meets its requirements and obligations at this time.
Effect of final payment under contracts subject to CAS clause.
Several commentators urged that the exemption of contracts of $500,000
or less should not be dependent on the final payment on contracts which
are subject to Board requirements, on the grounds that final payment can
occur a substantial period of time after completion of work on a
contract and that there are many technicalities in closing out a
contract which do not involve cost accounting applications.
The Board considers this point to be well taken and has changed the
requirement in 331.30(b)(8) where it first appears to ''notification of
final acceptance of all items or work to be delivered.'' At that time it
is considered that all direct costs will have been charged to the
contract since all work will have been completed, and any further
accounting transactions would be the result of adjustments not directly
related to contract performance.
Reduction of contract price by exclusion of commercial items. Some
commentators, in reading the introductory comments to the Board's
initial publication of this exemption, interpreted the phrase ''minimum
contract amount requiring compliance'' in a manner not at all intended
by the Board. These commentators interpreted this phrase to permit the
price of a contract subject to standards to be reduced by the value of
those individual contract items or subassemblies of final contract items
whose prices could be considered to be ''catalog'' or ''market'' prices,
if sold separately. They requested that the regulation be clarified to
reflect their interpretation of the Board's introductory comments.
Those requesting this clarification misunderstood the Board's
intentions. The Board does not intend that the price of a contract be
adjusted to exclude the price of items or subassemblies which, if
purchased separately, might be exempt from the Board's promulgations.
Consequently, the change in the regulation requested by commentators on
this point would be completely inappropriate.
Definition of contractor. One commentator noted that the prefatory
comments to the Board's September 27, 1974, publication specifically
mentioned the fact that receipt of a contract in excess of $500,000 by
one business unit of a multi-unit company would not in itself require
other units of the same company to follow Board requirements. This
commentator requested that the definitions of ''defense contractor'' and
''defense subcontractor'' contained in 331.20 (b) and (c) be modified
to reflect this intention by the Board.
As the Board stated in its September 27 publication, its contract
requirements have been applied to business units, such as a profit
center, division, subsidiary, or similar unit of a company, which
perform the contract, even in those cases where the contract was entered
into on behalf of the overall company rather than the business unit.
This application of the Board's requirements to a performing business
unit is well established and unchallenged, and clarification of the
definitions of ''contractor'' and ''subcontractor'' does not appear
necessary.
Effective date. Several commentators raised questions concerning the
effective date of the eligibility for this exemption in relation to
awards received prior to January 1, 1975. Contractors who have received
a prime contract or subcontract in excess of $500,000 subject to cost
accounting standards prior to January 1, 1975, and on which notification
of final acceptance of all items or work to be delivered on that
contract or subcontract has not been received, is a contractor who has
''already received a contract or subcontract in excess of $500,000,'' as
that phrase is used in 331.30(b)(8). Therefore, today's publication
requires that a contractor meeting this test will be required to comply
with standards on all covered prime contracts or subcontracts in excess
of $100,000 received after January 1, 1975, under the provisions of
331.30.
04 CFR 351.145 -- Pt. 351, Preamble F
04 CFR 351.145 -- Preamble F
Preamble to Amendments of 8-4-75
This publication (40 FR 32747, Aug. 4, 1975) amended 351.40 by
revising (c) and adding (f); deleted 351.41; amended 351.50 by
revising (a) and (c) and adding (d); and amended 351.120 by revising
(d) and adding (e). A correction to the language which amended 351.40
appeared at 40 FR 33819, Aug. 12, 1975.
The purpose of this publication by the Cost Accounting Standards
Board is to modify part 351, Basic Requirements, of its rules and
regulations and part 403, Allocation of Home Office Expenses to
Segments. A proposed modification to part 351 was published in the
Federal Register of April 3, 1975 (40 FR 14942). Twenty-seven sets of
comments were received in response to that publication. After
considering those comments, the most significant of which are discussed
below, the Board is today publishing an amendment to its rules relative
to the requirement for the submission of Disclosure Statements by
defense contractors and subcontractors.
1. Fiscal Year Coverage. The Board's April 3 proposal provided that
any company which, together with its subsidiaries, received more than
$10 million in prime contracts subject to Cost Accounting Standards in
Government fiscal years 1974 or 1975 would be required to file
Disclosure Statements. Board regulations now require the filing of
Disclosure Statements on the basis of prime contracts awarded in fiscal
years 1971, 1972 or 1973. There were no objections voiced by
commentators to the inclusion of fiscal years 1974 and 1975 in the
filing requirement. Accordingly, the amendments being published today
require that companies who exceeded the threshold amounts in either of
those fiscal years will be required to file Disclosure Statements.
2. Effective Date. The Board's proposal established July 1, 1975, as
the effective date for the requirement to include awards made in fiscal
years 1974 and 1975. Most commentators pointed out that in view of the
short time permitted between submission of comments on the proposal and
the July 1 date, any company which met the new requirement would not
have sufficient time to file a satisfactory Disclosure Statement to
permit receipt of a covered contract. The Board agrees, and
accordingly, the amendments being published today establish an effective
date of January 1, 1976, for the new requirement. Thus, any company
which, together with its subsidiaries, received more than $10 million in
prime contract awards subject to Cost Accounting Standards in Government
fiscal years 1974 or 1975 must submit a Disclosure Statement in order to
receive a covered national defense contract after January 1, 1976.
The April 3 proposal also provided for including subcontract awards
in the computation to determine if a company meets the requirement for
the filing of Disclosure Statements, beginning with Federal fiscal year
1976. The proposal stated that companies which met the threshold in
fiscal year 1976 would be required to file Disclosure Statements as of
July 1, 1976. In view of the need for a company to determine whether or
not it met the filing requirement and then have sufficient time in which
to prepare a satisfactory Disclosure Statement, the effective date for
filing a Disclosure Statement on the basis of fiscal year 1976 data has
been changed to March 31, 1977. For fiscal years subsequent to 1976,
companies will be required to file Disclosure Statements as a condition
of receiving a contract by March 31 following the end of the fiscal year
in which the threshold is met. This should permit contractors to make
their eligibility determination in sufficient time to allow preparation
of acceptable Disclosure Statements.
3. Inclusion of Subcontracts. The Board's proposal required that
beginning with Federal fiscal year 1976 (July 1, 1975-June 30, 1976)
companies would be required to include, in addition to prime contract
awards, the value of subcontract awards received subject to Cost
Accounting Standards in their computation to determine if they must file
Disclosure Statements. Beginning with that fiscal year and for all
subsequent fiscal years, the Board's proposal stated that any company
which, together with its subsidiaries, received more than $10 million in
prime contract awards and subcontract awards subject to Cost Accounting
Standards would be required to file Disclosure Statements.
Some commentators questioned how the value of awards was to be
considered in determining if a company met the threshold. The $10
million figure is to include both prime contract awards and subcontract
awards and may, in fact, be met by companies receiving only subcontracts
subject to Standards. There was no intention that companies must have
received one or more prime contracts in order to be required to file a
Disclosure Statement. The determination of whether or not a company has
$10 million in awards subject to Cost Accounting Standards must include
both prime contracts and subcontracts.
A number of commentators objected to the inclusion of subcontract
awards in a requirement for filing Disclosure Statements. They argued
that in many cases they do not have sufficient information to determine
whether a subcontract is subject to Standards. Some commentators stated
that in many cases prime contractors pass through to subcontractors all
Standard Government contract clauses whether or not they are required to
be included in the subcontract. They allege that, in some cases, when
the prime contractors are contacted to determine specifically whether or
not a subcontract which contains the Cost Accounting Standards Clause
is, in fact, subject to Standards, the prime contractor states that it
is not. Because of this, the commentators claim they would be required
to establish an elaborate information-gathering system to assure that
they properly identify every subcontract subject to Standards.
The argument about the adequacy of information concerning coverage of
subcontracts has been made to the Board on a number of occasions. In
October 1973, when the Board published an earlier revision to the
Disclosure Statement filing requirement, it advised contractors that
they may be required to determine the dollar value of defense
subcontract awards subject to CAS, and encouraged them to begin to
identify and accumulate the value of subcontract awards separately.
Many contractors are in fact effectively identifying subcontracts
subject to Standards. These facts persuade the Board that
identification of covered subcontracts is feasible, although the Board
recognizes that some firms may have to clarify their information
exchange procedures with the prime contractors with whom they do
business.
The Board believes that the inclusion of the amount of subcontract
awards in the Disclosure Statement filing requirement is appropriate
because subcontracts, unless specifically exempt, are legally subject to
the Board's Standards, rules and regulations. Accordingly, the
amendments being published today provide for the inclusion of
subcontract awards subject to Standards in the determination made by a
company as to whether or not it must file a Disclosure Statement. This
requirement is effective with Government fiscal year 1976 and applies to
all subsequent fiscal years.
4. Change in Fiscal Year Period. Several commentators noted that the
Federal Government is changing the dates of its fiscal year following
Federal fiscal year 1976. The new fiscal year period will be from
October 1 through the following September 30. The period July 1, 1976,
thru September 30, 1976, will be known as Federal fiscal period 197T.
These commentators asked whether or not contracts awarded in that period
should be included in some way with a normal fiscal year's contract
awards. The Board feels that it is not desirable to upset the regular
twelve-month fiscal year computation period and accordingly has
concluded that contracts awarded in that three-month period need not be
included by companies in determining the value of contract awards
received in fiscal year 1976 or any subsequent fiscal year.
5. Previously Announced Filing Requirements. The Board's proposal
included a requirement that any company which has submitted or was
required to submit a Disclosure Statement to the Government under the
previously announced filing requirements by virtue of having received a
covered contract shall remain subject to those requirements so long as
it has any contract subject to Cost Accounting Standards. The proposal
also required that Disclosure Statements from those companies on file
with the Government must be maintained in current form by those
companies. There were virtually no comments received on this
requirement. The amendments being published today contain that
requirement as set out in the April 3 proposal.
6. Applicability of CAS 403. A number of commentators noted that the
April 3 proposal deleted 351.41 of the Board's regulations. This
paragraph restated the requirement that only companies that met the
Disclosure Statement filing requirement for Federal fiscal year 1971
were required to comply with CAS 403. Allocation of Home Office
Expenses to Segments. These commentators asked that the Board's
position be clarified as to whether or not any current revision to the
Disclosure Statement requirement also changed the coverage of CAS 403.
It was not the Board's intention to broaden the coverage of CAS 403 at
this time. The possibility of extending the coverage of that Standard
is the subject of a separate study currently underway. To make the
Board's intention wholly clear, 403.70 of CAS 403 is being revised to
state explicitly rather than by cross reference the continuing coverage
of that Standard. This revision has no substantive significance
whatever, but instead merely sets out specifically what was and
continues to be the exemption from that Standard, which was before today
accomplished by reference to 351.40 of the Board's Basic Requirements.
Contractors and subcontractors which together with their subsidiaries
did not receive net awards of negotiated national defense prime
contracts during Federal fiscal year 1971 totaling more than $30 million
continue to be exempt from Standard 403.
7. Amendments to Disclosure Statements. The Board's April 3 proposal
also included revised procedures for handling changes to the Disclosure
Statement. Contractors would be required to submit only the Disclosure
Statement pages on which changes have been made. All commentators
supported these revised procedures, and they are being published today
as part of the Board's regulations.
The Board's April 3 proposal also included a provision enabling
procurement agencies to issue regulations prescribing criteria under
which a contractor may be required to submit a complete, updated
Disclosure Statement. A number of commentators expressed concern over
this provision. They felt that procuring agencies perhaps would issue
regulations that were not consistent with the Board's intention and for
this reason they urged that the Board prescribe criteria under which
procurement agencies could make such a request.
The Board appreciates the concern expressed by the commentators. It
would appear, however, that agencies would have a need for a complete,
updated Disclosure Statement only where the number of amended pages
submitted is so great that review of a Disclosure Statement would
obviously be an excessively cumbersome process. The Board urges
agencies to consider these views when adopting their criteria for
submittal of a complete, updated Disclosure Statement. The Board has
concluded that it should not itself set criteria for this particular
requirement.
8. Computation of Dollar Amount of Contract Awards. A number of
commentators asked that the Board clarify its intent as to which
contracts should be included in the computation of the dollar amounts.
The Board feels that covered contracts awarded in any fiscal year in
which the computation is being made should be included. This would mean
that for all of fiscal year 1974, negotiated defense prime contracts in
excess of $100,000 would be included by a company in determining if it
met the requirement to file a Disclosure Statement.
For the first six months of fiscal year 1975 all covered contracts in
excess of $100,000 would be included in the figure for that fiscal year.
For the balance of fiscal year 1975 only those awards which are subject
to Standards would be included. This means that if a company was not
performing under a covered contract exceeding $500,000 at January 1,
1975, and did not receive an award exceeding that amount in the last six
months of the fiscal year, then only the covered contracts received in
the first six months would be included. Only those companies which
received an award of $500,000 or more in the last six months of the year
would add up their covered contracts, including those subsequently
awarded in amounts of $100,000 or more, to arrive at the total amount
awarded in that period, to be added to the total for the first six
months.
Beginning with Federal fiscal year 1976 only companies which receive
at least one award exceeding $500,000 either as a prime contract or
subcontract subject to Standards will be required to include the value
of awards received to determine if they must file a Disclosure
Statement. In essence, it is the Board's intention that contracts
subject to Cost Accounting Standards shall be included in the
computation to determine if the filing requirement has been met by a
company for fiscal year 1974 and all subsequent fiscal years.
9. Summary of Disclosure Statement Filing Requirements. The Board
has amended the requirement for filing Disclosure Statements a number of
times. As a convenience to those affected by CAS, there follows a
tabulation showing these requirements.
10. Modification. The modifications being adopted today are limited
to those areas in which the Board considers clarification or changes
warranted at the present time. From time to time the Board may announce
further changes in the criteria for applicability of the disclosure
requirement.
The following modifications to part 351 of the Board's regulations
are being made, effective August 1, 1975, in view of the foregoing.
04 CFR 351.145 -- Pt. 351, Preamble G
04 CFR 351.145 -- Preamble G
Amendment published 9-12-77
The material set forth below is the preamble to the revision of
351.40(e) and (f). This preamble was part of a document which also set
forth amendments to parts 331, 332 and 403. The complete preamble
appears in the supplement to part 332.
04 CFR 351.145 -- disclosure statement requirements
Many commentators suggested that preparation of a Disclosure
Statement was burdensome. They also contended that in the situation
where a large commercial contractor receives only a few small contracts
containing a Cost Accounting Standards clause the need for a Disclosure
Statement appears to be minimal. Some asserted that adoption of the
proposal to require a Disclosure Statement for all covered contracts
would reduce the number of companies that would accept contracts subject
to the Board's Standards, rules and regulations. The Board is persuaded
that for the time being Disclosure Statements should not be required for
all covered contracts. Accordingly it is not adopting the February 16
proposal. The Board is retaining the existing Disclosure Statement
requirement provided in part 351 except that a business unit will be
required to submit a Disclosure Statement if it is a company or a
segment of a company which received awards of national defense contracts
subject to Cost Accounting Standards in excess of $10 million during its
preceding cost accounting period rather than the preceding Federal
fiscal year.
04 CFR 351.145 -- revisions to part 351
Part 332 and the amendments to part 331 generally will result in
annual determinations being made of a contractor's obligation to follow
Standards and to submit Disclosure Statements. The determination will
be made on the basis of sales and awards data from the immediately
preceding cost accounting period. The requirement to continue to submit
a disclosure Statement so long as the contractor has a contract subject
to Cost Accounting Standards will no longer apply. Disclosure
Statements must be maintained for and applied to only those contracts
which were awarded during a cost accounting period in which the
contractor met the filing requirements of 351.40. Sections 351.40 and
351.50 have been revised to reflect this change.
04 CFR 351.145 -- effective date
The effective date of the regulations being published today is March
10, 1978. Pub. L. 91-379 provides that regulations shall take effect
not earlier than the expiration of the first period of sixty calendar
days of continuous session of the Congress following the date on which a
copy of the regulations is transmitted to the Congress. The calendars
of the Congress indicate that the required sixty days will not pass
until some time in February 1978. Accordingly, March 10, 1978, has been
selected to assure sufficient time for the regulation to lie before the
Congress.
04 CFR 351.145 -- SUBCHAPTER F -- (RESERVED)
04 CFR 351.145 -- SUBCHAPTER G -- COST ACCOUNTING STANDARDS
04 CFR 351.145 -- PART 400 -- DEFINITIONS
Editorial Note: Each of these definitions is followed by a bracketed
note which tells the number of the section where it first appeared, and
the location of the preamble to the document which added it.
04 CFR 400.1 Definitions.
(a) This part defines various terms used in standards promulgated by
the Cost Accounting Standards Board. Unless the text of a particular
standard demands a different definition or the definition is expressly
modified for a particular standard, terms defined herein whenever used
in any standard shall have the meanings ascribed to them in this part.
For convenience, the definitions of terms which are prominent in an
individual standard are reprinted in that standard. The selection or
non-selection of a particular definition to be reprinted in an
individual standard, however, does not affect the applicability of all
definitions in this part to that standard.
Accrued Benefit Cost Method. An actuarial cost method under which
units of benefit are assigned to each cost accounting period and are
valued as they accrue -- that is, based on the services performed by
each employee in the period involved. The measure of normal cost under
this method for each cost accounting period is the present value of the
units of benefit deemed to be credited to employees for service in that
period. The measure of the acturial liability at a plan's inception
date is the present value of the units of benefit credited to employees
for service prior to that date. (This method is also known as the Unit
Credit cost method.)
(This definition first appeared in 412.30; for the preamble see
preamble A of the supplement to part 412)
Accumulating Costs. The collecting of cost data in an organized
manner, such as through a system of accounts.
(See 401.30; for preamble, see preamble A of supplement to part
401)
Actual cash value. The cost of replacing damaged property with other
property of like kind and quality in the physical condition of the
property immediately prior to the damage.
(See 416.30; for preamble, see preamble A of supplement to part
416)
Actual cost. An amount determined on the basis of cost incurred as
distinguished from forecasted cost. Includes standard cost properly
adjusted for applicable variance.
(See 401.30 and 407.30; for preamble, see preamble B of supplement
to part 401 and preamble A of supplement to part 407)
Actuarial Assumption. A prediction of future conditions affecting
pension cost; for example, mortality rate, employee turnover,
compensation levels, pension fund earnings, changes in values of pension
fund assets.
(See 412.30; for preamble, see preamble A of supplement to part
412)
Actuarial Cost Method. A technique which uses actuarial assumptions
to measure the present value of future pension benefits and pension fund
administrative expenses, and which assigns the cost of such benefits and
expenses to cost accounting periods.
(See 412.30; for preamble, see preamble A of supplement to part
412)
Actuarial Gain and Loss. The effect on pension cost resulting from
differences between actuarial assumptions and actual experience.
(See 412.30; for preamble, see preamble A of supplement to part
412)
Actuarial Liability. Pension cost attributable, under the actuarial
cost method in use, to years prior to the date of a particular actuarial
valuation. As of such date, the actuarial liability represents the
excess of the present value of the future benefits and administrative
expenses over the present value of future contributions for the normal
cost for all plan participants and beneficiaries. The excess of the
actuarial liability over the value of the assets of a pension plan is
the Unfunded Actuarial Liability.
(See 412.30; for preamble, see preamble A of supplement to part
412)
Actuarial Valuation. The determination, as of a specified date, of
the normal cost, actuarial liability, value of the assets of a pension
fund, and other relevant values for the pension plan.
(See 413.30; for preamble, see preamble A of supplement to part
413)
Allocate. To assign an item of cost, or a group of items of cost, to
one or more cost objectives. This term includes both direct assignment
of cost and the reassignment of a share from an indirect cost pool.
(See 402.30; for preamble, see preamble A of supplement to part
402)
Asset accountability unit. A tangible capital asset which is a
component of plant and equipment that is capitalized when acquired or
whose replacement is capitalized when the unit is removed, transferred,
sold, abandoned, demolished, or otherwise disposed of.
(See 402.30; for preamble, see preamble A of supplement to part
404)
Bid and Proposal (B&P) Cost. The cost incurred in preparing,
submitting, or supporting any bid or proposal which effort is neither
sponsored by a grant, nor required in the performance of a contract.
(See 420.30; for preamble, see preamble A of supplement to part
420)
Business Unit. Any segment of an organization, or an entire business
organization which is not divided into segments.
(See 411.30; for preamble, see preamble A of supplement to part
411)
Category of Material. A particular kind of goods, comprised of
identical or interchangeable units, acquired or produced by a
contractor, which are intended to be sold, or consumed or used in the
performance of either direct or indirect functions.
(See 411.30; for preamble, see preamble A of supplement to part
411)
Compensated personal absence. Any absence from work for reasons such
as illness, vacation, holidays, jury duty or military training, or
personal activities, for which an employer pays compensation directly to
an employee in accordance with a plan or custom of the employer.
(See 408.30; for preamble, see preamble A of supplement to part
408)
Cost input. The cost, except G&A expenses, which for contract
costing purposes is allocable to the production of goods and services
during a cost accounting period.
(See 410.30; for preamble, see preamble A of supplement to part
410)
Cost objective. A function, organizational subdivision, contract or
other work unit for which cost data are desired and for which provision
is made to accumulate and measure the cost of processes, products, jobs,
capitalized projects, etc.
(See 402.30; for preamble, see preamble A of supplement to part
402)
Cost of Capital Committed to Facilities. An imputed cost determined
by applying a cost of money rate to facilities capital.
(See 414.30; for preamble, see preamble A of supplement to part
414)
Deferred Compensation. An award made by an employer to compensate an
employee in a future cost accounting period or periods for services
rendered in one or more cost accounting periods prior to the date of the
receipt of compensation by the employee. This definition shall not
include the amount of year end accruals for salaries, wages, or bonuses
that are to be paid within a reasonable period of time after the end of
a cost accounting period.
(See 415.30; for preamble, see preamble A of supplement to part
415)
Defined-Benefit Pension Plan. A pension plan in which the benefits
to be paid or the basis for determining such benefits are established in
advance and the contributions are intended to provide the stated
benefits.
(See 412.30; for preamble, see preamble A of supplement to part
412)
Defined-Contribution Pension Plan. A pension plan in which the
contributions to be made are established in advance and the benefits are
determined thereby.
(See 412.30; for preamble, see preamble A of supplement to part
412)
Direct Cost. Any cost which is identified specifically with a
particular final cost objective. Direct costs are not limited to items
which are incorporated in the end product as material or labor. Costs
identified specifically with a contract are direct costs of that
contract. All costs identified specifically with other final cost
objectives of the contractor are direct costs of those cost objectives.
(See 402.30; for preamble, see preamble A of supplement to part
402)
Directly associated cost. Any cost which is generated solely as a
result of the incurrence of another cost, and which would not have been
incurred had the other cost not been incurred.
(See 405.30; for preamble, see preamble A of supplement to part
405)
Entitlement. An employee's right, whether conditional or
unconditional, to receive a determinable amount of compensated personal
absence, or pay in lieu thereof.
(See 408.30; for preamble, see preamble A of supplement to part
408)
Estimating Costs. The process of forecasting a future result in
terms of cost, based upon information available at the time.
(See 401.30; for preamble, see preamble B of supplement to part
401)
Expressly unallowable cost. A particular item or type of cost which,
under the express provisions of an applicable law, regulation, or
contract, is specifically named and stated to be unallowable.
(See 405.30; for preamble, see preamble A of supplement to part
405)
Facilities Capital. The net book value of tangible capital assets
and of those intangible capital assets that are subject to amortization.
(See 414.30; for preamble, see preamble A of supplement to part
414)
Final Cost Objective. A cost objective which has allocated to it
both direct and indirect costs, and, in the contractor's accumulation
system, is one of the final accumulation points.
(See 402.30; for preamble, see preamble A of supplement to part
402)
Fiscal Year. The accounting period for which annual financial
statements are regularly prepared, generally a period of 12 months, 52
weeks, or 53 weeks.
(See 406.30; for preamble, see preamble A of supplement to part
406)
Funded Pension Cost. The portion of pension costs for a current or
prior cost accounting period that has been paid to a funding agency or,
under a pay-as-you-go plan, to plan participants or beneficiaries.
(See 412.30; for preamble, see preamble A of supplement to part
412)
Funding Agency. An organization or individual which provides
facilities to receive and accumulate assets to be used either for the
payment of benefits under a pension plan, or for the purchase of such
benefits.
(See 412.30; for preamble, see preamble A of supplement to part
412)
General and Administrative (G&A) expense. Any management, financial,
and other expense which is incurred by or allocated to a business unit
and which is for the general management and administration of the
business unit as a whole. G&A expense does not include those management
expenses whose beneficial or casual relationship to cost objectives can
be more directly measured by a base other than a cost input base
representing the total activity of a business unit during a cost
accounting period.
(See 410.30; for preamble, see preamble A of supplement to part
410)
Home office. An office responsible for directing or managing two or
more, but not necessarily all, segments of an organization. It
typically establishes policy for, and provides guidance to the segments
in their operations. It usually performs management, supervisory, or
administrative functions, and may also perform service functions in
support of the operations of the various segments. An organization
which has intermediate levels, such as groups, may have several home
offices which report to a common home office. An intermediate
organization may be both a segment and a home office.
(See 403.30; for preamble, see preamble B of supplement to part
403)
Immediate-Gain Actuarial Cost Method. Any of the several actuarial
cost methods under which actuarial gains and losses are included as part
of the unfunded actuarial liability of the pension plan, rather than as
part of the normal cost of the plan.
(See 413.30; for preamble, see preamble A of supplement to part
413)
Independent Research and Development (IR&D) Cost. The cost of effort
which is neither sponsored by a grant, nor required in the performance
of a contract, and which falls within any of the following three areas:
(i) Basic and applied research,
(ii) Development, and
(iii) Systems and other concept formulation studies.
(See 420.30; for preamble, see Preamble A of supplement to part
420)
Indirect Cost. Any cost not directly identified with a single final
cost objective, but identified with two or more final cost objectives or
with at least one intermediate cost objective.
(See 402.30; for preamble, see preamble A of supplement to part
402)
Indirect cost pool. A grouping of incurred costs identified with two
or more objectives but not identified specifically with any final cost
objective.
(See 401.30; for preamble, see preamble A of supplement to part
401)
Insurance administration expenses. The contractor's costs of
administering an insurance program, e.g., the costs of operating an
insurance or risk-management department, processing claims, actuarial
fees, and service fees paid to insurance companies, trustees, or
technical consultants.
(See 416.30; for preamble, see preamble A of supplement to part
416)
Intangible Capital Asset. An asset that has no physical substance,
has more than minimal value, and is expected to be held by an enterprise
for continued use or possession beyond the current accounting period for
the benefits it yields.
(See 414.30; for preamble, see preamble A of supplement to part
414)
Labor Cost at Standard. A pre-established measure of the labor
element of cost, computed by multiplying labor-rate standard by
labor-time standard.
(See 407.30; for preamble, see preamble A of supplement to part
407)
Labor-Rate Standard. A pre-established measure, expressed in
monetary terms, of the price of labor.
(See 407.30; for preamble, see preamble A of supplement to part
407)
Labor-Time Standard. A pre-established measure, expressed in
temporal terms, of the quantity of labor.
(See 407.30; for preamble, see preamble A of supplement to part
407)
Material Cost at Standard. A pre-established measure of the material
element of cost, computed by multiplying material-price standard by
material-quantity standard.
(See 407.30; for preamble, see preamble A of supplement to part
407)
Material Inventory Record. Any record used for the accumulation of
actual or standard costs of a category of material recorded as an asset
for subsequent cost allocation to one or more cost objectives.
(See 411.30; for preamble, see preamble A of supplement to part
411)
Material-Price Standard. A pre-established measure, expressed in
monetary terms, of the price of material.
(See 407.30; for preamble, see preamble A of supplement to part
407)
Material-Quantity Standard. A pre-established measure, expressed in
physical terms, of the quantity of material.
(See 407.30; for preamble, see Preamble A of supplement to part
407)
Moving Average Cost. An inventory costing method under which an
average unit cost is computed after each acquisition by adding the cost
of the newly acquired units to the cost of the units of inventory on
hand and dividing this figure by the new total number of units.
(See 411.30; for preamble, see preamble A of supplement to part
411)
Multiemployer Pension Plan. A plan to which more than one employer
contributes and which is maintained pursuant to one or more collective
bargaining agreements between an employee organization and more than one
employer.
(See 412.30; for preamble, see preamble A of supplement to part
412)
Normal Cost. The annual cost attributable, under the actuarial cost
method in use, to years subsequent to a particular valuation date.
(See 412.30; for preamble, see preamble A of supplement to part
412)
Operating revenue. Amounts accrued or charged to customers, clients,
and tenants, for the sale of products manufactured or purchased for
resale, for services, and for rentals of property held primarily for
leasing to others. It includes both reimbursable costs and fees under
cost-type contracts and percentage-of-completion sales accruals except
that it includes only the fee for management contracts under which the
contractor acts essentially as an agent of the Government in the
erection or operation of Government-owned facilities. It excludes
incidental interest, dividends, royalty, and rental income, and proceeds
from the sale of assets used in the business.
(See 403.30; for preamble, see preamble A of supplement to part
403)
Original complement of low cost equipment. A group of items acquired
for the initial outfitting of a tangible capital asset or an operational
unit, or a new addition to either. The items in the group individually
cost less than the minimum amount established by the contractor for
capitalization for the classes of assets acquired but in the aggregate
they represent a material investment. The group, as a complement, is
expected to be held for continued service beyond the current period.
Initial outfitting of the unit is completed when the unit is ready and
available for normal operations.
(See 408.30; for preamble, see preamble A of supplement to part
408)
Pay-As-You-Go Cost Method. A method of recognizing pension cost only
when benefits are paid to retired employees or their beneficiaries.
(See 412.30; for preamble, see preamble A of supplement to part
412)
Pension Plan. A deferred compensation plan established and
maintained by one or more employers to provide systematically for the
payment of benefits to plan participants after their retirement:
Provided, That the benefits are paid for life or are payable for life at
the option of the employees. Additional benefits such as permanent and
total disability and death payments, and survivorship payments to
beneficiaries of deceased employees may be an integral part of a pension
plan.
(See 412.30; for preamble, see preamble A of supplement to part
412)
Pension Plan Participant. Any employee or former employee of an
employer or any member or former member of an employee organization, who
is or may become eligible to receive a benefit from a pension plan which
covers employees of such employer or member of such organization who
have satisfied the plan's participation requirements, or whose
beneficiaries are receiving or may be eligible to receive any such
benefit. A participant whose employment status with the employer has
not been terminated is an active participant of the employer's pension
plan.
(See 413.30; for preamble, see preamble A of supplement to part
413)
Pricing. The process of establishing the amount or amounts to be paid
in return for goods or services.
(See 401.30; for preamble, see preamble A of supplement to part
401)
Production Unit. A grouping of activities which either uses
homogeneous inputs of direct material and direct labor or yields
homogeneous outputs such that costs or statistics related to these
homogeneous inputs or outputs are appropriate as bases for allocating
variances.
(See 407.30; for preamble, see preamble A of supplement to part
407)
Projected average loss. The estimated long-term average loss per
period for periods of comparable exposure to risk of loss.
(See 416.30; for preamble, see preamble A of supplement to part
416)
Projected Benefit Cost Method. Any of the several actuarial cost
methods which distribute the estimated total cost of all of the
employees' prospective benefits over a period of years, usually their
working careers.
(See 412.30; for preamble, see preamble A of supplement to part
412)
Proposal. Any offer or other submission used as a basis for pricing a
contract, contract modification or termination settlement or for
securing payments thereunder.
(See 401.30; for preamble, see preamble A of supplement to part
401)
Repairs and maintenance. Maintenance is the regularly recurring
activity of keeping assets in normal or expected operating condition.
Repair is the activity of putting them back into normal or expected
operating condition. The total endeavor to obtain the expected service
during the life of tangible capital assets is generally called repairs
and maintenance.
(See 404.30; for preamble, see preamble A of supplement to part
404)
Reporting Costs. Provision of cost information to others. The
reporting of costs involves selecting relevant cost data and presenting
it in an intelligible manner for use by the recipient.
(See 401.30; for preamble, see preamble A of supplement to part
401)
Residual value. The proceeds (less removal and disposal costs, if
any, realized upon disposition of a tangible capital asset. It usually
is measured by the net proceeds from the sale or other disposition of
the asset, or its fair value if the asset is traded in on another asset.
The estimated residual value is a current forecast of the residual
value.
(See 409.30; for preamble, see preamble A of supplement to part
409)
Segment. One of two or more divisions, product departments, plants,
or other subdivisions of an organization reporting directly to a home
office, usually identified with responsibility for profit and/or
producing a product or service. The term includes Government-owned
contractor-operated (GOCO) facilities, and joint ventures and
subsidiaries (domestic and foreign) in which the organization has a
majority ownership. The term also includes those joint ventures and
subsidiaries (domestic and foreign) in which the organization has less
than a majority of ownership, but over which it exercises control.
(See 403.30; for preamble, see preamble A of supplement to part
403)
Self-insurance charge. A cost which represents the projected average
loss under a self-insurance plan.
(See 416.30; for preamble, see preamble A of supplement to part
416)
Service life. The period of usefulness of a tangible capital asset
(or group of assets) to its current owner. The period may be expressed
in units of time or output. The estimated service life of a tangible
capital asset (or group of assets) is a current forecast of its service
life and is the period over which depreciation cost is to be assigned.
(See 409.30; for preamble, see preamble A of supplement to part
409)
Spread-Gain Actuarial Cost Method. Any of the several projected
benefit actuarial cost methods under which actuarial gains and losses
are included as part of the current and future normal costs of the
pension plan.
(See 413.30; for preamble, see preamble A of supplement to part
413)
Standard Cost. Any cost computed with the use of pre-established
measures.
(See 407.30; for preamble, see preamble A of supplement to part
407)
Tangible capital asset. An asset that has physical substance, more
than minimal value, and is expected to be held by an enterprise for
continued use or possession beyond the current accounting period for the
services it yields.
(See 404.30; for preamble, see preamble A of supplement to part
404)
Termination Gain or Loss. An actuarial gain or loss resulting from
the difference between the assumed and actual rates at which plan
participants separate from employment for reasons other than retirement,
disability, or death.
(See 413.30; for preamble, see preamble A of supplement to part
413)
Unallowable cost. Any cost which, under the provisions of any
pertinent law, regulation, or contract, cannot be included in prices,
cost reimbursements, or settlements under a Government contract to which
it is allocable.
(See 405.30; for preamble, see preamble A of supplement to part
405)
Variance. The difference between a pre-established measure and an
actual measure.
(See 407.30; for preamble, see preamble A of supplement to part
407)
Weighted Average Cost. An inventory costing method under which an
average unit cost is computed periodically by dividing the sum of the
cost of beginning inventory plus the cost of acquisitions, by the total
number of units included in these two categories.
(See 411.30; for preamble, see preamble A of supplement to part
411)
(Sec. 103, 84 Stat. 796; 50 U.S.C. App. 2168)
(37 FR 4171, Feb. 29, 1972)
Editorial Note: For Federal Register citations affecting 400.1, see
the List of CFR Sections Affected in the Finding Aids section of this
volume.
04 CFR 400.2 Effective date.
July 1, 1972.
(Sec. 103, 84 Stat. 796, 50 U.S.C. App. 2168)
(37 FR 9609, May 13, 1972)
04 CFR 400.2 Pt. 401
04 CFR 400.2 PART 401 -- COST ACCOUNTING STANDARD -- CONSISTENCY IN
ESTIMATING, ACCUMULATING AND REPORTING COSTS
Sec.
401.10 General applicability.
401.20 Purpose.
401.30 Definitions.
401.40 Fundamental requirement.
401.50 Techniques for application.
401.60 Illustrations.
401.70 Exemptions.
401.80 Effective date.
Appendix -- Interpretation No. 1
Preambles A -- D
Authority: Sec. 103, 84 Stat. 796; 50 U.S.C. App. 2168.
Source: 37 FR 4172, Feb. 29, 1972, unless otherwise noted.
Editorial Note: A supplement, consisting of the preambles to these
regulations as they appeared in the Federal Register, follows the text
of this part. These preambles, which are intended to explain the
regulations in non-technical language, are printed in chronological
order to provide an administrative history of the cost accounting
standards.
The preamble to the original publication of this part (37 FR 4172,
Feb. 29, 1972) is set forth in preamble A of the supplement.
For preambles to amendments and revisions which affect only certain
sections; see the references following those sections.
04 CFR 401.10 General applicability.
General applicability of this cost accounting standard is established
by 331.30 of the Board's regulations on applicability, exemption, and
waiver of the requirement to include the cost accounting standards
contract clause in negotiated defense prime contracts and subcontracts (
331.30 of this chapter).
(43 FR 24820, June 8, 1978)
Preambles: For preambles to 401.10, see preamble D of the
supplement to this part. For preamble to superseded regulations see
preamble A of the supplement.
04 CFR 401.20 Purpose.
The purpose of this Cost Accounting Standard is to insure that each
contractor's practices used in estimating costs for a proposal are
consistent with cost accounting practices used by him in accumulating
and reporting costs. Consistency in the application of cost accounting
practices is necessary to enhance the likelihood that comparable
transactions are treated alike. With respect to individual contracts,
the consistent application of cost accounting practices will facilitate
the preparation of reliable cost estimates used in pricing a proposal
and their comparison with the costs of performance of the resulting
contract. Such comparisons provide one important basis for financial
control over costs during contract performance and aid in establishing
accountability for costs in the manner agreed to by both parties at the
time of contracting. The comparisons also provide an improved basis for
evaluating estimating capabilities.
04 CFR 401.30 Definitions.
(a) The following definitions of terms which are prominent in this
standard are reprinted from part 400 of this chapter for convenience.
Other terms which are used in this standard and are defined in part 400
of this chapter have the meanings ascribed to them in that part unless
the text demands a different definition or the definition is modified in
paragraph (b) of this section.
(1) Accumulating Costs. The collecting of cost data in an organized
manner, such as through a system of accounts.
(2) Actual cost. An amount determined on the basis of cost incurred
as distinguished from forecasted cost. Includes standard cost properly
adjusted for applicable variance.
(3) Estimating costs. The process of forecasting a future result in
terms of cost, based upon information available at the time.
(4) Indirect cost pool. A grouping of incurred costs identified with
two or more objectives but not identified specifically with any final
cost objective.
(5) Pricing. The process of establishing the amount or amounts to be
paid in return for goods or services.
(6) Proposal. Any offer or other submission used as a basis for
pricing a contract, contract modification or termination settlement or
for securing payments thereunder.
(7) Reporting costs. Provision of cost information to others.
The reporting of costs involves selecting relevant cost data and
presenting it in an intelligible manner for use by the recipient.
(b) The following modifications of definitions set forth in part 400
of this chapter are applicable to this standard: None.
(37 FR 4172, Feb. 29, 1972, as amended at 38 FR 30730, Nov. 7, 1973)
Preambles: For preambles relating to 401.30, see preambles A and B
of the supplement to this part.
04 CFR 401.40 Fundamental requirement.
(a) A contractor's practices used in estimating costs in pricing a
proposal shall be consistent with his cost accounting practices used in
accumulating and reporting costs.
(b) A contractor's cost accounting practices used in accumulating and
reporting actual costs for a contract shall be consistent with his
practices used in estimating costs in pricing the related proposal.
(c) The grouping of homogeneous costs in estimates prepared for
proposal purposes shall not per se be deemed an inconsistent application
of cost accounting practices under paragraphs (a) and (b) of this
section when such costs are accumulated and reported in greater detail
on an actual cost basis during contract performance.
04 CFR 401.50 Techniques for application.
(a) The standard allows grouping of homogeneous costs in order to
cover those cases where it is not practicable to estimate contract costs
by individual cost element or function. However, costs estimated for
proposal purposes shall be presented in such a manner and in such detail
that any significant cost can be compared with the actual cost
accumulated and reported therefor. In any event the cost accounting
practices used in estimating costs in pricing a proposal and in
accumulating and reporting costs on the resulting contract shall be
consistent with respect to:
(1) The classification of elements or functions of cost as direct or
indirect; (2) the indirect cost pools to which each element or function
of cost is charged or proposed to be charged; and (3) the methods of
allocating indirect costs to the contract.
(b) Adherence to the requirement of 401.40(a) of this standard shall
be determined as of the date of award of the contract, unless the
contractor has submitted cost or pricing data pursuant to Pub. L.
87-653, in which case adherence to the requirement of 401.40(a) shall
be determined as of the date of final agreement on price, as shown on
the signed certificate of current cost or pricing data. Notwithstanding
401.40(b), changes in established cost accounting practices during
contract performance may be made when authorized by standards, rules,
and regulations issued by the Cost Accounting Standards Board.
04 CFR 401.60 Illustrations.
(a) The following examples are illustrative of applications of cost
accounting practices which are deemed to be consistent.
(b) The following examples are illustrative of application of cost
accounting practices which are deemed not to be consistent.
04 CFR 401.70 Exemptions.
None for this standard.
04 CFR 401.80 Effective date.
July 1, 1972.
(37 FR 9609, May 13, 1972)
Preamble: Preamble A of the supplement to this part explains how
effective dates are determined.
Part 401, Cost Accounting Standard Consistency in Estimating,
Accumulating and Reporting Costs, requires in 401.40 that a
contractor's ''practices used in estimating costs in pricing a proposal
shall be consistent with his cost accounting practices used in
accumulating and reporting costs.''
In estimating the cost of direct material requirements for a
contract, it is a common practice to first estimate the cost of the
actual quantities to be incorporated in end items. Provisions are then
made for additional direct material costs to cover expected material
losses such as those which occur, for example, when items are scrapped,
fail to meet specifications, are lost, consumed in the manufacturing
process, or destroyed in testing and qualification processes. The cost
of some or all of such additional direct material requirements is often
estimated by the application of one or more percentage factors to the
total cost of basic direct material requirements or to some other base.
Questions have arisen as to whether the accumulation of direct
material costs in an undifferentiated account where a contractor
estimates a significant part of such costs by means of percentage
factors is in compliance with part 401. The most serious questions
pertain to such percentage factors which are not supported by the
contractor with accounting, statistical, or other relevant data from
past experience, nor by a program to accumulate actual costs for
comparison with such percentage estimates. In the opinion of the Board
the accumulation of direct costs in an undifferentiated account in this
circumstance is a cost accounting practice which is not consistent with
the practice of estimating a significant part of costs by means of
percentage factors. This situation is virtually identical with that
described in Illustration 401.60(b)(5), which deals with labor.
Part 401 does not, however, prescribe the amount of detail required
in accumulating and reporting costs. The Board recognizes that the
amount of detail required may vary considerably depending on the
percentage factors used, the data presented in justification or lack
thereof, and the significance of each situation. Accordingly, the Board
is of the view that it is neither appropriate nor practical for the
Board to prescribe a single set of accounting practices which would be
consistent in all situations with the practices of estimating direct
material costs by percentage factors. The Board considers, therefore,
that the amount of accounting and statistical detail to be required and
maintained in accounting for this portion of direct material costs has
been and continues to be a matter to be decided by Government
procurement authorities on the basis of the individual facts and
circumstances.
(41 FR 52428, Nov. 30, 1976)
Preamble: For the preamble relating to Interpretation No. 1, see
preamble C of the supplement.
04 CFR 401.80 Pt. 401, Preamble A
04 CFR 401.80 Preamble A
Original Publication of part 401, 2-29-72
Preamble to the original publication of 4 CFR part 401, 37 FR 4139,
Feb. 29, 1972. Because that publication also added 4 CFR parts 331,
351, 400, and 402, material relating to those parts has been omitted.
It appears in the Supplements to those parts.
General comments. The purpose of the regulations promulgated today
by the Cost Accounting Standards Board is to implement section 719 of
the Defense Production Act of 1950, as amended, 50 U.S.C. app. 2168,
which provides for development of Cost Accounting Standards to be used
in connection with negotiated national defense contracts and for
disclosure of cost accounting practices to be used in such contracts.
The Board believes the materials being promulgated today constitute a
significant initial step toward accomplishing one of its major
objectives -- improved cost accounting and the proper determination of
the cost of negotiated defense contracts. The regulations spell out
contract coverage (part 331), disclosure requirements (part 351), a
compilation of Definitions (part 400), and two Cost Accounting
Standards, one calling for consistency in estimating, accumulating, and
reporting costs (part 401), and the other calling for consistency in
allocating costs incurred for the same purpose (part 402).
Development of the material being promulgated today began many months
ago with extensive research. It included examining publications on the
subject, conferring with knowledgeable representatives of various
Government agencies, Government contractors, industry associations, and
professional accounting associations, and identifying and considering
all available viewpoints. From this research, the initial versions of
the material now being published were developed. As a part of the
continuing research effort, these initial drafts were sent to 81
agencies, associations, and Government contractors which had expressed
interest in assisting the Board in its work, and their comments were
solicited. Some national defense contractors field-tested the material
to see how it would apply to and affect their operations and advised the
Board of their findings. In each step of the research process, the
Board and its staff have urged and received active participation and
assistance by Government, industry, and accounting organizations. Their
cooperative efforts contributed in large measure to the exposure draft
published in the December 30, 1971, Federal Register for comment.
To better assure that all who might want to comment had an
opportunity to do so, the Board supplemented the Federal Register notice
by sending copies of the Federal Register materials directly to about
175 organizations and individuals who had expressed interest or had
provided assistance in the development of the published material. Also,
a press release was distributed announcing the publication, which
resulted in numerous articles in journals. The Board availed itself of
all opportunities to publicize the proposals and solicit comments on
them.
Written comments in response to the published material were requested
by February 4, 1972. Comments were received from 105 sources, including
Government agencies, professional associations, industry associations,
public accounting firms, individual companies and others. The Board
appreciates the obvious care and attention devoted by commentators, and
as will be seen below, the Board has greatly benefited from the comments
received.
Many of the comments received were addressed to all parts of the
proposed Board rules as well as to the question of public availability
of the Disclosure Statements. All of the comments received have been
carefully considered by the Board taking into account the requirements
of section 719. Understandably, many of the comments were addressed to
issues which recur in two or more of the proposed parts while others
dealt only with specific sections. Comments which dealt with 11 general
issues are discussed separately below followed by a section-by-section
analysis of other comments. Appropriate changes have been made in the
material promulgated based on the Board's disposition of the comments
received.
Those comments and suggestions received which are of particular
significance are discussed below.
Section 401.20 Purpose. Commentators stated that the purpose of the
standards would require each contractor to revise his formal system of
accounts in order to maintain them on a basis used for estimating
Government contracts. The Board did not intend that requirement. The
standard does not contain any requirement that a contractor must revise
his formal system of accounts. Cost accounting records are supplemental
to, and generally subsidiary to a contractor's financial records.
However, it is necessary that the cost accounting records be
reconcilable to the contractor's general financial records.
Two commentators believed that the term ''practices'' in the phrase
''Practices used in estimating costs in pricing proposals'' could be
confused as including estimating techniques relating to quantitative
determination as well as the cost accounting practices used in
estimating. The Board does not agree, because nothing in the standard
precludes the use of any quantitative estimating tools.
Section 401.50 Techniques for application. Several commentators
believed there may be an inconsistency between the requirements of the
standard and the ability to make changes to established cost accounting
practices. The Board intends that compliance with respect to proposals
shall be determined as of the award date of the contract or as of the
date of final agreement on price if the contractor has submitted cost or
pricing data pursuant to Pub. L. 87-653. Modifications of established
cost accounting practices for accumulating and reporting costs are
permitted by other regulations of the Cost Accounting Standards Board
without causing a violation of this standard. The Board has modified
the standard to express these intentions.
Section 401.60 Illustration. An illustration has been added to this
section to emphasize a requirement of the standard that any significant
cost must be accumulated and reported in sufficient detail to permit its
comparision with the estimates made therefor.
Effective date and application. For the convenience of readers, the
following summarizes the effective dates set forth in 331.8, 351.4(e),
and parts 400, 401, and 402, which were transmitted to the Congress on
February 24, 1972, pursuant to section 719(h)(3) of the Defense
Production Act of 1950 as amended. After the expiration of a period of
60 calendar days of continuous session following the date of transmittal
to the Congress, the regulations herein promulgated shall take effect as
set forth in those regulations, unless there is passed by the two Houses
a concurrent resolution stating in substance that the Congress does not
favor the proposed standards, rules, or regulations.
4. Any contractor having a contract awarded prior to July 1, 1972,
which contains a clause which already incorporates requirements
governing submission of Disclosure Statements and application of Cost
Accounting Standards will be required to comply with the provisions of
that clause. In this connection, such contractor and the respective
contracting agencies whose contracts contain such a clause should review
those contracts to determine whether negotiations should be instituted
to make parts 400 through 402 applicable to them.
04 CFR 401.80 Preamble B
Preamble to Amendments of 11-7-73
Preamble to revision of the definitions of ''actual cost'' and
''indirect cost pool'' in 401.30(a)(2) and (4), published at 38 FR
30725, Nov. 7, 1973. Material referring to other parts of 4 CFR
chapter III has been omitted; it appears in the Supplements to those
parts.
The purpose of this publication by the Cost Accounting Standards
Board is to amend parts 331, 351, 400, 401, 402, 403, and 404 of its
rules and regulations. The amendments, which are minor clarifications
to the regulations, were published in the Federal Register of September
5, 1973 (38 FR 23971). The amendments: * * * (c) modify certain
definitions in parts 400, 401, 402, 403, and 404 for the purposes of
uniformity among the various parts. Only one comment in response to the
September publication has been received by the Board. This expressed
agreement with the proposed changes.
In view of the foregoing, the following amendments to the Boards
regulations are being made effective November 7, 1973.
04 CFR 401.80 Pt. 401, Preamble C
04 CFR 401.80 Preamble C
Amendment published 11-30-76
Preamble to the addition of Appendix -- Interpretation No. 1 added
on Nov. 30, 1976, at 41 FR 52427.
Interpretation No. 1 to part 401, Cost Accounting Standard,
Consistency in Estimating, Accumulating and Reporting Costs, is being
published today by the Cost Accounting Standards Board pursuant to
Section 719 of the Defense Production Act of 1950, as amended. (Pub.
L. 91-379, 50 U.S.C. App. 2168.)
This Interpretation culminates extensive research over a period of
several years on the subject of accounting for the costs of direct
materials not incorporated in end items. This research indicated that,
as a general rule, the cost of such materials is being allocated
properly to cost objectives. Accordingly, the Board concluded that a
Cost Accounting Standard on this subject was not warranted at this time.
However, the research indicated that frequent questions were raised
with respect to the requirements of part 401 regarding consistency
between estimating the costs of certain direct materials in pricing
proposals and the accumulation and reporting of such costs. Thus, the
Board concluded that it would be desirable to issue an Interpretation of
part 401 to address specifically the requirements regarding consistency
between estimating and accounting for the costs of such direct
materials.
Section 401.40 requires that a contractor's ''practices used in
estimating costs in pricing a proposal shall be consistent with his cost
accounting practices used in accumulating and reporting costs.'' Many
contractors estimate the cost of certain direct materials, such as
materials that will be scrapped, as a percentage of basic direct
material requirements or of some other base. A significant number of
questions have been raised as to the cost accounting practices to be
followed where the cost of such materials is estimated on the basis of
percentage factors. The Interpretation being published clarifies the
requirements of part 401 in this regard.
A proposed Interpretation was published in the Federal Register of
June 24, 1976, with an invitation to interested parties to submit
written comments. The Board supplemented the invitation in the Federal
Register by sending copies of the proposed Interpretation directly to
over 1,000 organizations and individuals. The Board received 43 written
comments, all of which have been carefully considered by the Board.
In addition to an evaluation of the written comments, conversations
were held with thirteen of these commentators who indicated particular
problems with the proposed Interpretation. The Board takes this
opportunity to express its appreciation for the time and effort expended
by those who met with the Board representaives or provided written
comments.
Comments of particular significance with respect to the proposed
Interpretation are discussed below.
04 CFR 401.80 1. Need for an Interpretation
Several commentators stated that the Interpretation expands the scope
and is not consistent with the intent of part 401, which they say
requires only a comparison of actual costs with estimated costs for
direct material. They argued that the Defense Contract Audit Agency
(DCAA) guidance to its field auditors in October 1973 satisfactorily
explained the meaning of part 401. In general, these commentators felt
that an Interpretation to CAS 401 was not needed.
The Board's research indicates that an Interpretation is needed.
Numerous and widespread questions have been raised concerning whether
application of a percentage factor to a base as a means of estimating
the costs of certain additional direct material requirements is in
compliance with part 401 when the contractor accumulates direct material
costs in an undifferentiated account. The Board notes that a similar
question with respect to direct labor is specifically addressed in part
401. Section 401.60(b)(5). In that Illustration, the accumulation of
total engineering labor in one undifferentiated account is not in
compliance with part 401 where the contractor estimates engineering
labor by cost function. Part 401 does not, however, specifically
address the consistency requirement for direct materials, nor did the
DCAA guidance specifically cover this matter. Accordingly, the Board
concludes that this Interpretation is needed.
In view of the fact that the Interpretation clarifies what is already
required by part 401, the Board does not agree that it expands the scope
of the Standard.
04 CFR 401.80 2. Materiality
A number of commentators maintained that the cost of the materials
estimated by means of a percentage factor was usually insignificant.
These commentators were concerned that extensive records or analyses
would have to be developed for insignificant amounts. The Board, of
course, has always been concerned about the question of materiality and
is on record as stating that the administration of its rules,
regulations, and Cost Accounting Standards should be reasonable and not
seek to deal with insignificant amounts of cost. To assure the
application of the materiality criterion in this instance, specific
language has been introduced which provides that the Interpretation
applies only where ''a significant part of costs'' is estimated by means
of a percentage factor. Furthermore, the Interpretation being published
today recognizes that the accounting requirements of part 401 depend on
''the significance of each situation.''
04 CFR 401.80 3. Estimating Technique versus Practice
Several respondents were of the opinion that the proposed
Interpretation was inappropriate because they felt that the use of
percentage factors to estimate the cost of certain direct materials is
an estimating ''technique,'' rather than an estimating ''practice.''
Thus, they contended, the Interpretation is improperly covering an area
not subject to part 401, i.e., ''estimating techniques,'' and would
limit the use of estimating factors as quantitative estimating tools.
Some of these respondents noted that the Board recognized the difference
between techniques and practices in the prefatory comments to part 401,
as published in the Federal Register of February 29, 1972. In that
publication, the Board noted the concern of some commentators that the
term ''practices'' in the phrase ''practices used in estimating costs in
pricing proposals'' could be confused as including estimating techniques
relating to quantitative determinations. In response to those comments,
the Board stated that ''nothing in the Standard precludes the use of any
quantitative estimating tools.''
The Board reaffirms this conclusion. However, the Board did not
intend to deny all interest in practices so readily subject to abuse.
There are cases in which contractor percentage estimates are not
adequately supported either by data as to relevant past experience or in
any other manner. In such cases, particularly, the Board feels that the
use of a percentage factor as a means of estimating the costs of
additional direct materials is an estimating practice which must be
consistent with the practices used in accumulating and reporting costs.
04 CFR 401.80 4. Retroactivity
A few commentators were concerned about the possible retroactive
application of this Interpretation. They noted that the requirement of
part 401, as interpreted, would apply as of the date a contractor was
first required to use that Standard. The commentators were concerned
that those contractors who have not accounted for material costs in
accordance with the Interpretation could be held to have been in
noncompliance with part 401, and therefore subject to a downward price
adjustment in accordance with paragraph a(5) of the Cost Account
Standards clause (4 CFR 331.50). These commentators urged that the
Interpretation be effective on a prospective basis only. Some of these
commentators suggested that the substance of the Interpretation should
be a new Standard, with the opportunity for an equitable adjustment
under a(4)(A) of the Cost Accounting Standards clause.
As already noted, the Board has carefully considered whether the
subject of the Interpretation should be encompassed in a new Standard.
The Board has concluded that the accounting for direct material cost as
explained by this Interpretation is required by part 401 and therefore
should have been accomplished as of the date that Standard first became
applicable to a contractor. Nevertheless, the Board recognizes that
there has been widespread uncertainty about the application of part 401
in situations where certain material costs are estimated on the basis of
percentage factors. In addition, the Board believes that the
determination of the cost impact of a contractor's failure in the past
to follow part 401 as interpreted would be extremely difficult. Under
the circumstances, the Board believes that the effort to seek contract
price adjustments as a result of this Interpretation would, in most
cases, be counterproductive. Accordingly, the Board believes that, in
most cases, the process of attempting to determine price adjustments as
a result of the retroactive application of part 401 as interpreted would
not be warranted.
04 CFR 401.80 5. Cost Accounting Practices
The proposed Interpretation stated that contractors who use a
percentage factor to estimate certain direct material costs for a
contract must ''for that contract'' maintain an adequate record or
prepare an analysis of the actual cost. A number of commentators
understood this sentence to require the recording or analysis on a
contract-by-contract basis of the actual cost of materials represented
by an estimated percentage factor. Many of these commentators noted
that it would be difficult, if not impossible, to comply with this
requirement. Other commentators questioned what was meant by an
adequate record or an analysis.
As noted above the use of percentage factors for estimating direct
material costs is an estimating practice which, pursuant to part 401,
must be consistent with the cost accounting practices used in
accumulating and reporting costs. The Board notes however that part 401
neither prescribes nor precludes any particular cost accounting
practice. The Board recognizes that the consistency requirement of part
401, as it pertains to direct material costs, could be met in a variety
of ways. The Board is therefore of the view that it would be neither
appropriate nor practical to prescribe by means of this Interpretation
the amount of detail in accumulating and reporting costs which is deemed
to be consistent with the use of percentage factors in estimating costs.
The Board believes that the amount of detail which should be maintained
with respect to direct material costs is a matter which is best left for
decision by the appropriate Government procurement authorities on the
basis of facts and circumstances of each situation. The Interpretation
being published today has been revised accordingly and all references to
the type of records to be maintained or analyses to be performed have
been deleted.
04 CFR 401.80 6. Application to Developmental and Research Type
Contracts
Many commentators urged that this Interpretation not apply to
developmental and research type contracts. They said that since only
material issued to these kinds of contracts is charged to such
contracts, there would be no overstatement of material costs. They
urged further that it would be impossible to maintain actual cost
records by contract to record the additional material required and that
it was extremely difficult to estimate additional material requirements
because of the lack of past experience. Also, the commentators
contended that material requirements on such contracts were not
significant. Other commentators suggested that this Interpretation
should not apply to cost type contracts.
It appears that these comments were generated mainly by the
impression that the proposed Interpretation required records or analyses
to be maintained by individual contract. As noted above, the
Interpretation has been revised to make clear that no particular record
or analysis is required by part 401. The requirement for consistency in
estimating, accumulating and reporting costs, however, applies to all
contracts. The fact that a development contract or cost-type contract
is involved does not remove this requirement. The Board feels that the
changes made in the Interpretation should serve to minimize the problems
described by these contractors.
04 CFR 401.80 7. Application to Standard Cost Accounting Systems
Several commentators suggested that this Interpretation not apply to
standard cost systems. They argued that costs are not accumulated by
contract or product and, therefore, compliance with the Interpretation
would require a complicated and expensive recording system. They felt
further that in setting standards, they use past experience plus
engineering adjustments and could be charged by the Government with the
need to comply with the records requirement of the Interpretation for
each of their Standards.
Contractors using standard costs for material must comply with part
407, the Use of Standard Costs for Direct Material and Direct Labor,
which addresses the accounting for direct material and variances from
standard costs of material. In the opinion of the Board, these
contractors will be in compliance with part 401 as interpreted.
04 CFR 401.80 8. Application to Specific Factors
Various commentators inquired about the application of this
Interpretation to certain specific factors used in estimating contract
price proposals, not necessarily related to the cost of additional
direct materials. Among the factors mentioned were those to provide for
inflation, contingencies resulting from indefinite or incomplete bills
of material, losses in common inventory accounts, and miscellaneous
small parts and hardware items.
As noted in the Interpretation, its need was prompted by questions
about the use of percentage factors to estimate the costs of
''additional direct materials''; i.e., generally those direct materials
not incorporated in end items. Factors such as those used to provide
for inflation or allowances for incomplete bills of material do not
represent costs of ''additional direct materials,'' as that phrase is
used in the Interpretation. In the opinion of the Board, this
interpretation does not apply to the costs represented by such factors.
Factors used in a proposal to provide for inventory losses represent
the costs of additional materials which are governed by this
Interpretation. With respect to factors for small parts, the Board
notes that in accordance with part 401, 401.60, Illustrations, a
practice of estimating an average cost for a minor standard hardware
item is considered to be consistent with the practice of recording the
actual costs of such items.
The amount of detail to be used in accumulating and recording such
costs, however, is a matter to be decided in accordance with this
Interpretation.
04 CFR 401.80 9. Application of Interpretation to Direct Labor
A number of commentators raised questions concerning the
applicability of the Interpretation to direct labor. Several
commentators said it should not apply to such labor but should be
clearly limited to direct materials. One commentator felt that the
Interpretation was equally applicable to direct labor and should so
state.
As already noted in paragraph 1, above, part 401 includes specific
provisions on the consistency requirements regarding direct labor.
Accordingly, the Board is of the opinion that no further specific
coverage of direct labor is required in this Interpretation.
04 CFR 401.80 Pt. 401, Preamble D
04 CFR 401.80 Preamble D
Preamble to document published 6-8-78
The document published on June 8, 1978 at 43 FR 24819, revised
401.10. This amendment was part of a publication which added
331.30(b)(3). Only the portion of the preamble which describes the
revision to 401.10 is printed here. The remainder of the preamble
appears as preamble K of the supplement to part 331.
In the Federal Register of February 16, 1977 (42 FR 9391), the Board
proposed to amend section .10, General Applicability, of standards 401
through 409 to conform these sections to the general aplicability
section as it appears in standard 410 et seq. No comments were received
on this proposed amendment. The Board considers this change to be
appropriate and is amending standards 401 through 409 as set forth
below.
04 CFR 401.80 PART 402 -- COST ACCOUNTING STANDARD -- CONSISTENCY IN
ALLOCATING COSTS INCURRED FOR THE SAME PURPOSE
Sec.
402.10 General applicability.
402.20 Purpose.
402.30 Definitions.
402.40 Fundamental requirement.
402.50 Techniques for application.
402.60 Illustrations.
402.70 Exemptions.
402.80 Effective date.
Appendix -- Interpretation No. 1
Preambles A -- D
Authority: Sec. 103, 84 Stat. 796; 50 U.S.C. App. 2168.
Source: 37 FR 4173, Feb. 29, 1972, unless otherwise noted.
Editorial Note: A supplement, consisting of the preambles to these
regulations as they appeared in the Federal Register, follows the text
of this part. These preambles, which are intended to explain the
regulations in non-technical language, are printed in chronological
order to provide an administrative history of the cost accounting
standards.
The preamble to the original publication of this part (37 FR 4137,
Feb. 29, 1972) is set forth in preamble A of the supplement.
For preambles to amendments and revisions which affect only certain
sections, see the references following those sections.
04 CFR 402.10 General applicability.
General applicability of this cost accounting standard is established
by 331.30 of the Board's regulations on applicability, exemption, and
waiver of the requirement to include the cost accounting standards
contract clause in negotiated defense prime contracts and subcontracts (
331.30 of this chapter).
(43 FR 24820, June 8, 1978)
Preambles: For preamble to 402.10, see preamble D of the supplement
to this part. For preamble to superseded regulations, see preamble A of
the supplement.
04 CFR 402.20 Purpose.
The purpose of this standard is to require that each type of cost is
allocated only once and on only one basis to any contract or other cost
objective. The criteria for determining the allocation of costs to a
product, contract, or other cost objective should be the same for all
similar objectives. Adherence to these cost accounting concepts is
necessary to guard against the overcharging of some cost objectives and
to prevent double counting. Double counting occurs most commonly when
cost items are allocated directly to a cost objective without
eliminating like cost items from indirect cost pools which are allocated
to that cost objective.
04 CFR 402.30 Definitions.
(a) The following definitions of terms which are prominent in this
standard are reprinted from part 400 of this chapter for convenience.
Other terms which are used in this standard and are defined in part 400
of this chapter have the meanings ascribed to them in that part unless
the text demands a different definition or the definition is modified in
paragraph (b) of this section.
(1) Allocate. To assign an item of cost, or a group of items of
cost, to one or more cost objectives. This term includes both direct
assignment of cost and the reassignment of a share from an indirect cost
pool.
(2) Cost objective. A function, organizational subdivision contract
or other work unit for which cost data are desired and for which
provision is made to accumulate and measure the cost to processes,
products, jobs, capitalized projects, etc.
(3) Direct cost. Any cost which is identified specifically with a
particular final cost objective. Direct costs are not limited to items
which are incorporated in the end product as material or labor. Costs
identified specifically with a contract are direct costs of that
contract. All costs identified specifically with other final cost
objectives of the contractor are direct costs of those cost objectives.
(4) Final cost objective. A cost objective which has allocated to it
both direct and indirect costs, and, in the contractor's accumulation
system, is one of the final accumulation points.
(5) Indirect cost. Any cost not directly identified with a single
final cost objective, but identified with two or more final cost
objectives or with at least one intermediate cost objective.
(6) Indirect cost pool. A grouping of incurred costs identified with
two or more cost objectives but not identified specifically with any
final cost objective.
(b) The following modifications of definitions set forth in part 400
of this chapter are applicable to this standard: None.
(37 FR 4173, Feb. 29, 1972, as amended at 38 FR 30730, Nov. 7, 1973)
Preambles: For preambles to amendments of 402.30, see preambles A
and B of the supplement to this part.
04 CFR 402.40 Fundamental requirement.
All costs incurred for the same purpose, in like circumstances, are
either direct costs only or indirect costs only with respect to final
cost objectives. No final cost objective shall have allocated to it as
an indirect cost any cost, if other costs incurred for the same purpose,
in like circumstances, have been included as a direct cost of that or
any other final cost objective. Further, no final cost objective shall
have allocated to it as a direct cost any cost, if other costs incurred
for the same purpose, in like circumstances, have been included in any
indirect cost pool to be allocated to that or any other final cost
objective.
04 CFR 402.50 Techniques for application.
(a) The Fundamental Requirement is stated in terms of cost incurred
and is equally applicable to estimates of costs to be incurred as used
in contract proposals.
(b) The Disclosure Statement to be submitted by the contractor will
require that he set forth his cost accounting practices with regard to
the distinction between direct and indirect costs. In addition, for
those types of cost which are sometimes accounted for as direct and
sometimes accounted for as indirect, the contractor will set forth in
his Disclosure Statement the specific criteria and circumstances for
making such distinctions. In essence, the Disclosure Statement
submitted by the contractor, by distinguishing between direct and
indirect costs, and by describing the criteria and circumstances for
allocating those items which are sometimes direct and sometimes
indirect, will be determinative as to whether or not costs are incurred
for the same purpose. Disclosure Statement as used herein refers to the
statement required to be submitted by contractors as a condition of
contracting as set forth in part 351 of this chapter.
(c) In the event that a contractor has not submitted a Disclosure
Statement the determination of whether specific costs are directly
allocable to contracts shall be based upon the contractor's cost
accounting practices used at the time of contract proposal.
(d) Whenever costs which serve the same purpose cannot equitably be
indirectly allocated to one or more final cost objectives in accordance
with the contractor's disclosed accounting practices, the contractor may
either: (1) Use a method for reassigning all such costs which would
provide an equitable distribution to all final cost objectives, or (2)
directly assign all such costs to final cost objectives with which they
are specifically identified. In the event the contractor decides to
make a change for either purpose the Disclosure Statement shall be
amended to reflect the revised accounting practices involved.
(e) Any direct cost of minor dollar amount may be treated as an
indirect cost for reasons of practicality where the accounting treatment
for such cost is consistently applied to all final cost objectives,
provided that such treatment produces results which are substantially
the same as the results which would have been obtained if such cost had
been treated as a direct cost.
04 CFR 402.60 Illustrations.
(a) Illustrations of costs which are incurred for the same purpose:
(1) Contractor normally allocates all travel as an indirect cost and
previously disclosed this accounting practice to the Government. For
purposes of a new proposal, contractor intends to allocate the travel
costs of personnel whose time is accounted for as direct labor directly
to the contract. Since travel costs of personnel whose time is
accounted for as direct labor working on other contracts are costs which
are incurred for the same purpose, these costs may no longer be included
within indirect cost pools for purposes of allocation to any covered
Government contract. Contractor's Disclosure Statement must be amended
for the proposed changes in accounting practices.
(2) Contractor normally allocates planning costs indirectly and
allocates this cost to all contracts on the basis of direct labor. A
proposal for a new contract requires a disproportionate amount of
planning costs. The contractor prefers to continue to allocate planning
costs indirectly. In order to equitably allocate the total planning
costs, the contractor may use a method for allocating all such costs
which would provide an equitable distribution to all final cost
objectives. For example, he may use the number of planning documents
processed rather than his former allocation base of direct labor.
Contractor's Disclosure Statement must be amended for the proposed
changes in accounting practices.
(b) Illustrations of costs which are not incurred for the same
purpose:
(1) Contractor normally allocates special tooling costs directly to
contracts. The costs of general purpose tooling are normally included
in the indirect cost pool which is allocated to contracts. Both of
these accounting practices were previously disclosed to the Government.
Since both types of costs involved were not incurred for the same
purpose in accordance with the criteria set forth in the contractor's
Disclosure Statement, the allocation of general purpose tooling costs
from the indirect cost pool to the contract, in addition to the directly
allocated special tooling costs is not considered a violation of the
standard.
(2) Contractor proposes to perform a contract which will require
three firemen on 24-hour duty at a fixed-post to provide protection
against damage to highly inflammable materials used on the contract.
Contractor presently has a fire fighting force of 10 employees for
general protection of the plant. Contractor's costs for these latter
firement are treated as indirect costs and allocated to all contracts;
however, he wants to allocate the three fixed-post firemen directly to
the particular contract requiring them and also allocate a portion of
the cost of the general firefighting force to the same contract. He may
do so but only on condition that his disclosed practices indicate that
the costs of the separate classes of firemen serve different purposes
and that it is his practice to allocate the general firefighting force
indirectly and to allocate fixed-post firemen directly.
04 CFR 402.70 Exemptions.
None for this standard.
04 CFR 402.80 Effective date.
July 1, 1972.
(37 FR 9609, May 13, 1972)
Preamble: Preamble A of the supplement to this part explains how
effective dates are determined.
Part 402, Cost Accounting Standard, Consistency in Allocating Costs
Incurred for the Same Purpose, provides, in 402.40, that ''* * * no
final cost objective shall have allocated to it as a direct cost any
cost, if other costs incurred for the same purpose, in like
circumstances, have been included in any indirect cost pool to be
allocated to that or any other final cost objective.''
This interpretation deals with the way part 402 applies to the
treatment of costs incurred in preparing, submitting, and supporting
proposals. In essence, it is addressed to whether or not, under the
Standard, all such costs are incurred for the same purpose, in like
circumstances.
Under part 402, costs incurred in preparing, submitting, and
supporting proposals pursuant to a specific requirement of an existing
contract are considered to have been incurred in different circumstances
from the circumstances under which costs are incurred in preparing
proposals which do not result from such specific requirement. The
circumstances are different because the costs of preparing proposals
specifically required by the provisions of an existing contract relate
only to that contract while other proposal costs relate to all work of
the contractor.
This interpretation does not preclude the allocation, as indirect
costs, of costs incurred in preparing all proposals. The cost
accounting practices used by the contractor, however, must be followed
consistently and the method used to reallocate such costs, of course,
must provide an equitable distribution to all final cost objectives.
(41 FR 24692, June 18, 1976)
Preamble: For the preamble relating to Interpretation No. 1, see
preamble C of the supplement.
04 CFR 402.80 Pt. 402, Preamble A
04 CFR 402.80 Preamble A
Preamble to Original Publication of part 402, 2-29-72
Preamble to original publication of 4 CFR part 402, 37 FR 4139, Feb.
29, 1972. That publication also included the addition of 4 CFR parts
331, 351, 400, and 401, and so material relating to those parts has been
omitted. It appears in the Supplements to those parts.
General comments. The purpose of the regulations promulgated today
by the Cost Accounting Standards Board is to implement section 719 of
the Defense Production Act of 1950, as amended, 50 U.S.C. app. 2168,
which provides for development of Cost Accounting Standards to be used
in connection with negotiated national defense contracts and for
disclosure of cost accounting practices to be used in such contracts.
The Board believes the materials being promulgated today constitute a
significant initial step toward accomplishing one of its major
objectives -- improved cost accounting and the proper determination of
the cost of negotiated defense contracts. The regulations spell out
contract coverage (part 331), disclosure requirements (part 351), a
compilation of Definitions (part 400), and two Cost Accounting
Standards, one calling for consistency in estimating, accumulating, and
reporting costs (part 401), and the other calling for consistency in
allocating costs incurred for the same purpose (part 402).
Development of the material being promulgated today began many months
ago with extensive research. It included examining publications on the
subject, conferring with knowledgeable representatives of various
Government agencies, Government contractors, industry associations, and
professional accounting associations, and identifying and considering
all available viewpoints. From this research, the initial versions of
the material now being published were developed. As a part of the
continuing research effort, these initial drafts were sent to 81
agencies, associations, and Government contractors which had expressed
interest in assisting the Board in its work, and their comments were
solicited. Some national defense contractors field-tested the material
to see how it would apply to and affect their operations and advised the
Board of their findings. In each step of the research process, the
Board and its staff have urged and received active participation and
assistance by Government, industry, and accounting organizations. Their
cooperative efforts contributed in large measure to the exposure draft
published in the December 30, 1971, Federal Register for comment.
To better assure that all who might want to comment had an
opportunity to do so, the Board supplemented the Federal Register notice
by sending copies of the Federal Register materials directly to about
175 organizations and individuals who had expressed interest or had
provided assistance in the development of the published material. Also,
a press release was distributed announcing the publication, which
resulted in numerous articles in journals. The Board availed itself of
all opportunities to publicize the proposals and solicit comments on
them.
Written comments in response to the published material were requested
by February 4, 1972. Comments were received from 105 sources, including
Government agencies, professional associations, industry associations,
public accounting firms, individual companies, and others. The Board
appreciates the obvious care and attention devoted by commentators, and
as will be seen below, the Board has greatly benefited from the comments
received.
Many of the comments received were addressed to all parts of the
proposed Board rules as well as to the question of public availability
of the Disclosure Statements. All of the comments received have been
carefully considered by the Board taking into account the requirements
of section 719. Understandably, many of the comments were addressed to
issues which recur in two or more of the proposed parts while others
dealt only with specific sections. Comments which dealt with 11 general
issues are discussed separately below followed by a section-by-section
analysis of other comments. Appropriate changes have been made in the
material promulgated based on the Board's disposition of the comments
received.
Those comments and suggestions received which are of particular
significance are discussed below.
Part 402 Title. One commentator pointed out that the definition of
the word ''allocate'' covered all of the actions encompassed by the word
''charge'' and, therefore, the title of the standard should be changed
to delete the words ''charging and.'' The Board agrees and has made the
appropriate change here and elsewhere throughout the standard.
Section 402.40 Fundamental requirement. A number of commentators
suggested a change to the standard to eliminate the requirement that
direct and indirect costs be consistently allocated to all final cost
objectives. Making the standard applicable only to individual contracts
would permit a choice to be made solely on the basis of short-term
economic benefit; the Board therefore has not adopted the suggestion.
Section 402.50 Techniques for application. Several commentators
noted that the standard discusses the required treatment of incurred
costs but does not cover estimated costs. The Board intends that both
types of costs be covered by the standard and has therefore added a new
paragraph to this section to make that intention clear.
A number of commentators suggested that the concept of materiality be
included in the standard to allow the handling of minor direct cost
items as indirect costs similar to the treatment accorded materiality in
current ASPR regulations. The Board agrees, and has included a
materiality statement in this section.
Several commentators did not understand the relationship of this
standard to the Disclosure Statement. (This relationship is set out in
paragraph (b) of this section) The Board intends to allow the contractor
to disclose the cost accounting practices and criteria appropriate to
his own situation while at the same time imposing the requirement that
he adhere consistently to the choices once made. The Disclosure
Statement is the vehicle by which the contractor describes the criteria
and circumstances which define costs which are or are not incurred for
the same purpose.
Effective date and application. For the convenience of readers, the
following summarizes the effective dates set forth in 331.8, 351.4(e),
and parts 400, 401, and 402, which were transmitted to the Congress on
February 24, 1972, pursuant to section 719(h)(3) of the Defense
Production Act of 1950 as amended. After the expiration of a period of
60 calendar days of continuous session following the date of transmittal
to the Congress, the regulations herein promulgated shall take effect as
set forth in those regulations, unless there is passed by the two Houses
a concurrent resolution stating in substance that the Congress does not
favor the proposed standards, rules, or regulations.
4. Any contractor having a contract awarded prior to July 1, 1972,
which contains a clause which already incorporates requirements
governing submission of Disclosure Statements and application of Cost
Accounting Standards will be required to comply with the provisions of
that clause. In this connection, such contractor and the respective
contracting agencies whose contracts contain such a clause should review
those contracts to determine whether negotiations should be instituted
to make parts 400 through 402 applicable to them.
04 CFR 402.80 Pt. 402, Preamble B
04 CFR 402.80 Preamble B
Amendments Published 11-7-73
Preamble to revision of the definitions of ''cost objective'' and
''indirect cost pool'', 402.30(a) (2) and (6); 38 FR 30725, Nov. 7,
1973. Material relating to other parts of 4 CFR Chapter III, published
in the same document, has been omitted, and appears in the Supplements
to those parts.
The purpose of this publication by the Cost Accounting Standards
Board is to amend parts 331, 351, 400, 401, 402, 403, and 404 of its
rules and regulations. The amendments, which are minor clarifications
to the regulations, were published in the Federal Register of September
5, 1973 (38 FR 23971). The amendments: * * * (c) modify certain
definitions in parts 400, 401, 402, 403, and 404 for the purposes of
uniformity among the various parts. Only one comment in response to the
September publication has been received by the Board. This expressed
agreement with the proposed changes.
In view of the foregoing, the following amendments to the Board's
regulations are being made effective November 7, 1973.
04 CFR 402.80 Pt. 402, Preamble C
04 CFR 402.80 Preamble C
Amendment Published 6-18-76
Preamble to the addition of Appendix -- Interpretation No. 1 added
on June 18, 1976 at 41 FR 24691.
Interpretation No. 1 to part 402, Cost Accounting Standard,
Consistency in Allocating Costs Incurred for the Same Purpose, is being
published today by the Cost Accounting Standards Board pursuant to
Section 719 of the Defense Production Act of 1950, as amended. (Pub. L.
91-379, 50 U.S.C. App. 2168). The interpretation deals with the
application of 402.40 of part 402 to proposal costs. Section 402.40
provides that, ''All costs incurred for the same purpose, in like
circumstances, are either direct costs only or indirect costs only with
respect to final cost objectives.''
A number of questions had been raised by both the Government and
contractors as to how Cost Accounting Standard 402 is to be applied to
the accounting for proposal costs and, particularly, as to whether all
costs incurred in preparing proposals are incurred for the same purpose,
in like circumstances. A proposed interpretation was published in the
Federal Register of February 4, 1976, with an invitation to interested
parties to submit written comments if the proposed interpretation did
not respond fully, or did not respond clearly enough, to what the Board
understood to be the questions which had arisen. The Board also
supplemented the invitation in the Federal Register by sending copies of
the proposed interpretation to several hundred organizations and
individuals. The Board received 32 written comments from companies,
Government agencies, industry and professional associations, and others.
All of these comments have been carefully considered by the Board. The
issues of particular significance which were discussed by respondents in
connection with the proposed interpretation are summarized below,
together with explanations of the changes made in the interpretation
being published today. The Board takes this opportunity to express its
appreciation for the helpful suggestions and criticisms that were
received.
(1) Specific requirement provision. Several commentators, while
suggesting changes to the proposed interpretation published on February
4, 1976, commended the Board for recognizing the problem with respect to
the application of 402.40 of part 402 to the costs incurred in
preparing proposals and believed that the interpretation would resolve a
longstanding area of controversy. The most prevalent comments received
dealt with costs incurred in preparing a follow-on proposal which is not
specifically required by an existing contract.
Many commentators suggested that the words ''specific requirement''
be deleted and that, in lieu thereof, words such as ''related to,''
''arising from,'' ''identified with,'' or ''directly associated with,''
be used. Other commentators, while agreeing that the ''specific
requirement'' provision should be retained, suggested an expansion to
also cover proposals ''related to'' existing contracts such as proposals
for follow-on contracts. Still other commentators, however, believed
that the ''specific requirement'' provision was appropriate and should
be retained without addition or other change.
In the February 4, 1976, publication of the proposed interpretation,
the distinguishing characteristic noted by the Board for determining if
circumstances can be considered to be different with respect to costs
incurred in preparing two proposals was whether one proposal was
prepared pursuant to a specific requirement of an existing contract
while the other was not. The Board continues in the belief that the
''specific requirement'' provision is the distinguishing characteristic
and, accordingly, has retained this provision in the interpretation
being published today.
Several commentators suggested that proposals prepared in order to
comply with other contract provisions, such as when the Government
exercises an unpriced option or when an option is repriced, should be
considered to be specifically required under the interpretation. The
Board believes that the interpretation being published today
accommodates this suggestion.
One commentator suggested that the Board's intent be clarified with
respect to whether only proposals required by line items in a contract
are considered to be specifically required by the contract. The Board
intended that, while the ''specific requirement'' could be a line item
in a contract, it need not be. Proposals specifically required by any
other provisions of a contract, such as the requirement in the Changes
clause of Standard Form 32, that any ''claim by the contractor for
adjustment under this clause must be asserted within 30 days from the
date of receipt by the contractor of the notification of change,'' are
considered to be specifically required under the interpretation.
(2) Indirect allocation of all proposal costs. A few commentators
recommended clarification of the final paragraph in the proposed
interpretation as published on February 4, 1976. One commentator stated
that the paragraph could be interpreted as authorizing contractors to
allocate all proposal costs indirectly while another commentator
believed that the subject of indirect allocation of all proposal costs
should be developed later as a separate issue. The paragraph has been
revised (a) to give recognition to the fact that some contractors'
accounting practices now provide that all proposal costs are pooled and
allocated indirectly and (b) to make it clear that, in this respect, no
change in a contractor's accounting practice or allocation method is
required by this interpretation if the cost accounting practice is being
followed consistently and if the allocation method provides an equitable
distribution to all final cost objectives.
(3) Determination of cost accounting practices by contracting
officer. A few commentators stated that the words, ''specific
requirement of an existing contract'' would place contracting officers
in the position of determining cost accounting practices because they
could determine whether there would be a specific requirement in a
contract.
Contracting officers now decide for almost every contract whether to
include or exclude specific contractual requirements covering a wide
variety of activities. The Board believes that inclusion or exclusion
of a specific requirement in a contract may influence the cost
accounting practice being followed but the decision to include or
exclude the requirement is not the determinant of the cost accounting
practice.
(4) Prospective application. Two commentators suggested that, under
this interpretation, certain proposal costs which some contractors have
allocated directly to contracts will have to be allocated indirectly.
One of the commentators recommended that, consequently, the
interpretation should be applied on a prospective basis only.
Cost Accounting Standard 402, which became effective July 1, 1972,
states that, ''All costs incurred for the same purpose, in like
circumstances, are either direct costs only or indirect costs only with
respect to final cost objectives.'' Interpretation No. 1 to part 402
recognizes that the circumstances involved in preparing certain
proposals are different from the circumstances involved in preparing
other proposals. The interpretation explains when, under the Standard,
certain proposal costs are consequently deemed to have been incurred in
unlike circumstances and therefore may be accounted for differently.
Although the interpretation is being provided to explain in greater
detail how Cost Accounting Standard 402 applies to costs incurred in
preparing proposals, the Standard from its inception has applied to
these costs in this way. As to any individual contractor, Standard 402
has applied to such costs from whatever date that Standard became
applicable to that contractor. The commentator's recommendation
therefore has not been accepted. In view of the widespread uncertainty
over the application of Standard 402 to proposal costs, however, the
Board believes that any failures to follow the Standard in this respect
have been inadvertent. The Board also believes that any adjustments
should be made with due consideration to the Board's statement on
materiality.
(5) Accounting for the cost of proposals for follow-on contracts.
Several commentators stated that the interpretation would create cost
accounting problems with respect to accounting for the cost of proposals
for follow-on contracts. The statement was made that a follow-on
proposal is prepared by employees assigned full time to the on-going
program and that it would be most difficult and impractical to attempt
to separate their labor costs for preparing follow-on proposals from
their other labor costs of the on-going program.
The Board recognizes the possibility that some contractors may have
to refine somewhat their present practices for distributing incurred
labor costs in order to separate the costs of preparing proposals for a
follow-on contract from the costs of an existing contract. The Board
does not agree, however, that whatever refinements may be necessary
should be difficult or impractical to develop.
(6) Other comments. One commentator suggested that it be clearly
stated in the interpretation that proposal costs allocated direct to
contracts will have overhead and General and Administrative expenses
(including indirect proposal costs) applied. The Board agrees that
proposal costs allocated direct to a contract are no different than any
other costs allocated direct to that contract but believes this is
self-evident and that no change in the interpretation is required.
Another commentator suggested that the word ''bid'' be added to the
interpretation in conjunction with the word ''proposal.'' The Board
intends that the interpretation apply to a ''proposal'' as defined in 4
CFR, part 400.
A few commentators requested clarification of the wording of the
introductory comments and the proposed interpretation published on
February 4, 1976. The introductory comments stated that, ''Costs * * *
are incurred in different circumstances * * *'' whereas the proposed
interpretation stated that, ''The contracting parties can determine that
the circumstances are different * * *.'' Accordingly, the Board has
deleted the words, ''The contracting parties can determine that * * *''
from the interpretation being published today.
Another commentator suggested that the phrase, ''to all work of the
contractor,'' in the last sentence of the third paragraph of the
interpretation be clarified because some companies have several indirect
cost pools for proposal costs, one for each major product line within a
division. The commentator believed that the phrase could be
misinterpreted as limiting the number of such indirect cost pools to
only one pool for each division. It is not the intent of the Board to
change, through this interpretation, any of the established cost
accounting practices now being followed by contractors with respect to
the pooling and allocation of indirect proposal costs. Accordingly, if
it is the contractor's established cost accounting practice to pool and
allocate indirect proposal costs by product groupings, he may continue
to do so.
One commentator requested a statement in the interpretation with
respect to solicited and unsolicited proposals, particularly as to
''whether one or the other is properly included in the direct or
indirect charge category.'' The determination as to like or unlike
circumstances does not depend on whether a proposal is solicited or
unsolicited. The test is whether the proposal was specifically required
by an existing contract.
04 CFR 402.80 Pt. 402, Preamble D
04 CFR 402.80 Preamble D
Preamble to document published 6-8-78
The document published on June 8, 1978 at 43 FR 24819, revised
402.10. This amendment was part of a publication which added
331.30(b)(3). Only the portion of the preamble which describes the
revision to 402.10 is printed here. The remainder of the preamble
appears as preamble K of the supplement to Part 331.
In the Federal Register of February 16, 1977 (42 FR 9391), the Board
proposed to amend section .10, General Applicability, of standards 401
through 409 to conform these sections to the general applicability
section as it appears in standard 410 et seq. No comments were received
on this proposed amendment. The Board considers this change to be
appropriate and is amending standards 401 through 409 as set forth
below.
04 CFR 402.80 PART 403 -- ALLOCATION OF HOME OFFICE EXPENSES TO
SEGMENTS
Sec.
403.10 General applicability.
403.20 Purpose.
403.30 Definitions.
403.40 Fundamental requirement.
403.50 Techniques for application.
403.60 Illustrations.
403.70 Exemptions.
403.80 Effective date.
Appendix -- Interpretation No. 1
Preambles A -- E
Authority: Sec. 103, 84 Stat. 796; 50 U.S.C. App. 2168.
Editorial Note: A supplement, consisting of the preambles to these
regulations as they appeared in the Federal Register, follows the text
of this part. These preambles, which are intended to explain the
regulations in non-technical language, are printed in chronological
order to provide an administrative history of the cost accounting
standards.
The preamble to the original publication of this part (37 FR 22683,
Dec. 14, 1972) is set forth in preamble A of the supplement.
For preambles to amendments and revisions which affect only certain
sections, see the references following those sections.
04 CFR 403.10 General applicability.
General applicability of this cost accounting standard is established
by 331.30 of the Board's regulations on applicability, exemption, and
waiver of the requirement to include the cost accounting standards
contract clause in negotiated defense prime contracts and subcontracts (
331.30 of this chapter).
(43 FR 24820, June 8, 1978)
Preambles: For preamble to 403.10, see preamble E of the supplement
to this part. For preamble to superseded regulations, see preamble A of
the supplement.
04 CFR 403.20 Purpose.
(a) The purpose of this Cost Accounting Standard is to establish
criteria for allocation of the expenses of a home office to the segments
of the organization based on the beneficial or causal relationship
between such expenses and the receiving segments. It provides for: (1)
Identification of expenses for direct allocation to segments to the
maximum extent practical; (2) accumulation of significant nondirectly
allocated expenses into logical and relatively homogeneous pools to be
allocated on bases reflecting the relationship of the expenses to the
segments concerned; and (3) allocation of any remaining or residual
home office expenses to all segments. Appropriate implementation of
this Standard will limit the amount of home office expenses classified
as residual to the expenses of managing the organization as a whole.
(b) This Standard does not cover the reallocation of a segment's
share of home office expenses to contracts and other cost objectives.
(37 FR 22683, Dec. 14, 1972)
04 CFR 403.30 Definitions.
(a) The following definitions of terms which are prominent in this
Standard are reprinted from Part 400 of this chapter for convenience.
Other terms which are used in this Standard and are defined in Part 400
of this chapter have the meanings ascribed to them in that part unless
the text demands a different definition or the definition is modified in
paragraph (b) of this section:
(1) Allocate. To assign an item of cost, or a group of items of
cost, to one or more cost objectives. This term includes both direct
assignment of cost and the reassignment of a share from an indirect cost
pool.
(2) Home office. An office responsible for directing or managing two
or more, but not necessarily all, segments of an organization. It
typically establishes policy for, and provides guidance to the segments
in their operations. It usually performs management, supervisory, or
administrative functions, and may also perform service functions in
support of the operations of the various segments. An organization
which has intermediate levels, such as groups, may have several home
offices which report to a common home office. An intermediate
organization may be both a segment and a home office.
(3) Operating revenue. Amounts accrued or charged to customers,
clients, and tenants, for the sale of products manufactured or purchased
for resale, for services, and for rentals of property held primarily for
leasing to others. It includes both reimbursable costs and fees under
cost-type contracts and percentage-of-completion sales accruals except
that it includes only the fee for management contracts under which the
contractor acts essentially as an agent of the Government in the
erection or operation of Government-owned facilities. It excludes
incidental interest, dividends, royalty, and rental income, and proceeds
from the sale of assets used in the business.
(4) Segment. One of two or more divisions, product departments,
plants, or other subdivisions of an organization reporting directly to a
home office, usually identified with responsibility for profit and/or
producing a product or service. The term includes Government-owned
contractor-operated (GOCO) facilities, and joint ventures and
subsidiaries (domestic and foreign) in which the organization has a
majority ownership. The term also includes those joint ventures and
subsidiaries (domestic and foreign) in which the organization has less
than a majority of ownership, but over which it exercises control.
(5) Tangible capital asset. An asset that has physical substance,
more than minimal value, and is expected to be held by an enterprise for
continued use or possession beyond the current accounting period for the
services it yields.
(b) The following modifications of definitions set forth in Part 400
of this chapter are applicable to this standard: None.
(37 FR 22683, Dec. 14, 1972, as amended at 38 FR 30730, Nov. 7, 1973)
Preambles: For preambles to amendments to 403.30, see preambles A
and B of the supplement to this part.
04 CFR 403.40 Fundamental requirement.
(a) (1) Home office expenses shall be allocated on the basis of the
beneficial or causal relationship between supporting and receiving
activities. Such expenses shall be allocated directly to segments to
the maximum extent practical. Expenses not directly allocated, if
significant in amount and in relation to total home office expenses,
shall be grouped in logical and homogeneous expense pools and allocated
pursuant to paragraph (b) of this section. Such allocations shall
minimize to the extent practical the amount of expenses which may be
categorized as residual (those of managing the organization as a whole).
These residual expenses shall be allocated pursuant to paragraph (c) of
this section.
(2) No segment shall have allocated to it as an indirect cost, either
through a homogeneous expense pool, or the residual expense pool, any
cost, if other costs incurred for the same purpose have been allocated
directly to that or any other segment.
(b) The following subparagraphs provide criteria for allocation of
groups of home office expenses.
(1) Centralized service functions. Expenses of centralized service
functions performed by a home office for its segments shall be allocated
to segments on the basis of the service furnished to or received by each
segment. Centralized service functions performed by a home office for
its segments are considered to consist of specific functions which, but
for the existence of a home office, would be performed or acquired by
some or all of the segments individually. Examples include centrally
performed personnel administration and centralized data processing.
(2) Staff management of certain specific activities of segments. The
expenses incurred by a home office for staff management or policy
guidance functions which are significant in amount and in relation to
total home office expenses shall be allocated to segments receiving more
than a minimal benefit over a base, or bases, representative of the
total specific activity being managed. Staff management or policy
guidance to segments is commonly provided in the overall direction or
support of the performance of discrete segment activities such as
manufacturing, accounting, and engineering (but see paragraph (b)(6) of
this section).
(3) Line management of particular segments or groups of segments.
The expense of line management shall be allocated only to the particular
segment or group of segments which are being managed or supervised. If
more than one segment is managed or supervised, the expense shall be
allocated using a base or bases representative of the total activity of
such segments. Line management is considered to consist of management
or supervision of a segment or group of segments as a whole.
(4) Central payments or accruals. Central payments or accruals which
are made by a home office on behalf of its segments shall be allocated
directly to segments to the extent that all such payments or accruals of
a given type or class can be identified specifically with individual
segments. Central payments or accruals are those which but for the
existence of a number of segments would be accrued or paid by the
individual segments. Common examples include centrally paid or accrued
pension costs, group insurance costs, State and local income taxes and
franchise taxes, and payrolls paid by a home office on behalf of its
segments. Any such types of payments or accruals which cannot be
identified specifically with individual segments shall be allocated to
benefited segments using an allocation base representative of the
factors on which the total payment is based.
(5) Independent research and development costs and bid and proposal
costs. Independent research and development costs and bid and proposal
costs of a home office shall be allocated in accordance with 4 CFR Part
420.
(6) Staff management not identifiable with any certain specific
activities of segments. The expenses incurred by a home office for
staff management, supervisory, or policy functions, which are not
identifiable to specific activities of segments shall be allocated in
accordance with paragraph (c) of this section as residual expenses.
(c) Residual expenses. (1) All home office expenses which are not
allocable in accordance with paragraph (a) of this section and
paragraphs (b)(1) through (5) of this section shall be deemed residual
expenses. Typical residual expenses are those for the chief executive,
the chief financial officer, and any staff which are not identifiable
with specific activities of segments. Residual expenses shall be
allocated to all segments under a home office by means of a base
representative of the total activity of such segments, except where
paragraph (c) (2) or (3) of this section applies.
(2) Residual expenses shall be allocated pursuant to 403.50(c)(1) if
the total amount of such expenses for the contractor's previous fiscal
year (excluding any unallowable costs and before eliminating any amounts
to be allocated in accordance with paragraph (c)(3) of this section)
exceeds the amount obtained by applying the following percentage(s) to
the aggregate operating revenue of all segments for such previous year:
3.35 percent of the first $100 million;
0.95 percent of the next $200 million;
0.30 percent of the next $2.7 billion;
0.20 percent of all amounts over $3 billion.
The determination required by this paragraph for the 1st year the
contractor is subject to this Standard shall be based on the pro forma
application of this Standard to the home office expenses and aggregate
operating revenue for the contractor's previous fiscal year.
(3) Where a particular segment receives significantly more or less
benefit from residual expenses than would be reflected by the allocation
of such expenses pursuant to paragraph (c) (1) or (2) of this section
(see 403.50(d)), the Government and the contractor may agree to a
special allocation of residual expenses to such segment commensurate
with the benefits received. The amount of a special allocation to any
segment made pursuant to such an agreement shall be excluded from the
pool of residual expenses to be allocated pursuant to paragraph (c) (1)
or (2) of this section, and such segment's data shall be excluded from
the base used to allocate this pool.
(37 FR 22683, Dec. 14, 1972, as amended at 44 FR 55127, Sept. 25,
1979)
Preamble: For preamble relating to 403.40(b)(5), see Preamble A of
the supplement to Part 420.
04 CFR 403.50 Techniques for application.
(a) (1) Separate expense groupings will ordinarily be required to
implement 403.40. The number of groupings will depend primarily on the
variety and significance of service and management functions performed
by a particular home office. Ordinarily, each service or management
function will have to be separately identified for allocation by means
of an appropriate allocation technique. However, it is not necessary to
identify and allocate different functions separately, if allocation in
accordance with the relevant requirements of 403.40(b) can be made
using a common allocation base. For example, if the personnel
department of a home office provides personnel services for some or all
of the segments (a centralized service function) and also established
personnel policies for the same segments (a staff management function),
the expenses of both functions could be allocated over the same base,
such as the number of personnel, and the separate functions do not have
to be identified.
(2) Where the expense of a given function is to be allocated by means
of a particular allocation base, all segments shall be included in the
base unless: (i) Any excluded segment did not receive significant
benefits from, or contribute significantly to the cause of the expense
to be allocated and, (ii) any included segment did receive significant
benefits from or contribute significantly to the cause of the expense in
question.
(b) (1) Section 403.60 illustrates various expense pools which may be
used together with appropriate allocation bases. The allocation of
centralized service functions shall be governed by a hierarchy of
preferable allocation techniques which represent beneficial or casual
relationships. The preferred representation of such relationships is a
measure of the activity of the organization performing the function.
Supporting functions are usually labor-oriented, machine-oriented, or
space-oriented. Measures of the activities of such functions ordinarily
can be expressed in terms of labor hours, machine hours, or square
footage. Accordingly, costs of these functions shall be allocated by
use of a rate, such as a rate per labor hour, rate per machine hour or
cost per square foot, unless such measures are unavailable or
impractical to ascertain. In these latter cases the basis for
allocation shall be a measurement of the output of the supporting
function. Output is measured in terms of units of end product produced
by the supporting function, as for example, number of printed pages for
a print shop, number of purchase orders processed by a purchasing
department, number of hires by an employment office.
(2) Where neither activity nor output of the supporting function can
be practically measured, a surrogate for the beneficial, or causal
relationship must be selected. Surrogates used to represent the
relationship are generally measures of the activity of the segments
receiving the service; for example, for personnel services reasonable
surrogates would be number of personnel, labor hours, or labor dollars
of the segments receiving the service. Any surrogate used should be a
reasonable measure of the services received and, logically, should vary
in proportion to the services received.
(c) (1) Where residual expenses are required to be allocated pursuant
to 403.40(c)(2), the three factor formula described below must be used.
This formula is considered to result in appropriate allocations of the
residual expenses of home offices. It takes into account three broad
areas of management concern: The employees of the organization, the
business volume, and the capital invested in the organization. The
percentage of the residual expenses to be allocated to any segment
pursuant to the three factor formula is the arithmetical average of the
following three percentages for the same period:
(i) The percentage of the segment's payroll dollars to the total
payroll dollars of all segments.
(ii) The percentage of the segment's operating revenue to the total
operating revenue of all segments. For this purpose, the operating
revenue of any segment shall include amounts charged to other segments
and shall be reduced by amounts charged by other segments for purchases.
(iii) The percentage of the average net book value of the sum of the
segment's tangible capital assets plus inventories to the total average
net book value of such assets of all segments. Property held primarily
for leasing to others shall be excluded from the computation. The
average net book value shall be the average of the net book value at the
beginning of the organization's fiscal year and the net book value at
the end of the year.
(d) The following paragraphs provide guidance for implementing the
requirements of 403.40(c)(3).
(1) An indication that a segment received significantly less benefit
in relation to other segments can arise if a segment, unlike all or most
other segments, performs on its own many of the functions included in
the residual expense. Another indication may be that, in relation to
its size, comparatively little or no costs are allocable to a segment
pursuant to 403.40(b) (1) through (5). Evidence of comparatively
little communication or interpersonal relations between a home office
and a segment, in relation to its size, may also indicate that the
segment receives significantly less benefit from residual expenses.
Conversely, if the opposite conditions prevail at any segment, a greater
allocation than would result from the application of 403.40(c) (1) or
(2) may be indicated. This may be the case, for example, if a segment
relies heavily on the home office for certain residual functions
normally performed by other segments on their own.
(2) Segments which may require special allocations of residual
expenses pursuant to 403.40(c)(3) include, but are not limited to
foreign subsidiaries, GOCO's, domestic subsidiaries with less than a
majority ownership, and joint ventures.
(3) The portion of residual expenses to be allocated to a segment
pursuant to 403.40(c)(3) shall be the cost of estimated or recorded
efforts devoted to the segments.
(e) Home office functions may be performed by an organization which
for some purposes may not be a part of the legal entity with which the
Government has contracted. This situation may arise, for example, in
instances where the Government contracts directly with a corporation
which is wholly or partly owned by another corporation. In this case,
the latter corporation serves as a ''home office,'' and the corporation
with which the contract is made is a ''segment'' as those terms are
defined and used in this Standard. For purposes of contracts subject to
this Standard, the contracting corporation may only accept allocations
from the other corporation to the extent that such allocations meet the
requirements set forth in this Standard for allocation of home office
expenses to segments.
(37 FR 4173, Feb. 29, 1972, as amended at 43 FR 9781, Mar. 10, 1978)
Preambles: For preambles relating to 403.50, see preambles A and B
of the supplement to this part. For the preamble on the deletion of
403.50(c)(2), see preamble J of the supplement to Part 331.
04 CFR 403.60 Illustrations.
(a) The following table lists some typical pools, together with
illustrative allocation bases which could be used in appropriate
circumstances:
(b) The selection of a base for allocating centralized service
functions shall be governed by the criteria established in 403.50(b).
(c) The listed allocation bases in this section are illustrative.
Other bases for allocation of home office expenses to segments may be
used if they are substantially in accordance with the beneficial or
casual relationships outlined in 403.40.
(37 FR 22683, Dec. 14, 1972)
04 CFR 403.70 Exemptions.
(a) Any contractor or subcontractor which together with its
subsidiaries did not receive net awards of negotiated national defense
prime contracts during Federal fiscal year 1971 (July 1, 1970, through
June 30, 1971) totaling more than $30 million is exempt from this
Standard. This exemption expires on March 10, 1978. Any contractor,
unless otherwise exempt, who receives a negotiated national defense
contract after March 10, 1978, shall be required to comply at the start
of his first cost accounting period following receipt of that award.
(b) This standard shall not apply to contractors who are subject to
the provisions of Federal Management Circular 74-4 (Principles for
Determining Costs Applicable to Grants and Contracts with State and
Local Governments).
(37 FR 4173, Feb. 29, 1972, as amended at 40 FR 32749, Aug. 4, 1975;
42 FR 45629, Sept. 12, 1977; 43 FR 24820, June 8, 1978)
Preambles: For preamble affecting 403.70, see preambles A, C, D,
and E of the supplement to this part. For preamble to superseded
regulations, see preamble B of the supplement to this part.
04 CFR 403.80 Effective date.
(a) This standard shall be followed by each contractor as of the
beginning of his next fiscal year after September 30, 1973. The
effective date of this standard is July 1, 1973.
(b) The effective date of 403.70(a) as amended is March 10, 1978.
(38 FR 7447, Mar. 22, 1973; as amended at 42 FR 45629, Sept. 12,
1977)
Preambles: Preamble A of this part explains how effective dates are
determined. For preamble affecting 403.80(b), see preamble D.
04 CFR 403.80 Pt. 403, App.
04 CFR 403.80 Appendix -- Interpretation No. 1
Questions have arisen as to the requirements of Part 403, Cost
Accounting Standard, Allocation of Home Office Expenses to Segments, for
the purpose of allocating State and local income taxes and franchise
taxes based on income (hereinafter collectively referred to as income
taxes) from a home office of an organization to its segments.
By means of an illustrative allocation base in Section 403.60, the
Standard provides that income taxes are to be allocated by ''any base or
method which results in an allocation that equals or approximates a
segment's proportionate share of the tax imposed by the jurisdiction in
which the segment does business, as measured by the same factors used to
determine taxable income for that jurisdiction.'' This provision
contains two essential criteria for the allocation of income taxes from
a home office to segments. First, the taxes of any particular
jurisdiction are to be allocated only to those segments that do business
in the taxing jurisdiction. Second, where there is more than one
segment in a taxing jurisdiction, the taxes are to be allocated among
those segments on the basis of ''the same factors used to determine the
taxable income for that jurisdiction.'' The questions that have arisen
relate primarily to whether segment book income or loss is a ''factor''
for this purpose.
Most States tax a fraction of total organization income, rather than
the book income of segments that do business within!the State. The
fraction is calculated pursuant to a formula prescribed by State
statute. In these situations the book income or loss of individual
segments is not a factor used to determine taxable income for that
jurisdiction. Accordingly, in States that tax a fraction of total
organization income, rather than the book income of segments within the
State, such book income is irrelevant for tax allocation purposes.
Therefore, segment book income is to be used as a factor in allocating
income tax expense from a home office to segments only where this amount
is expressly used by the taxing jurisdiction in computing the income
tax.
(45 FR 13721, Mar. 3, 1980)
04 CFR 403.80 Pt. 403, Preamble A
04 CFR 403.80 Preamble A
Preamble to Original Publication, 12-14-72
Preamble to original publication of 4 CFR Part 403, at 38 FR 26680,
Dec. 14, 1972.
The Standard on Allocation of Home Office Expenses to Segments is one
of a series being promulgated by the Cost Accounting Standards Board
pursuant to section 719 of the Defense Production Act of 1950, as
amended, Pub. L. 91-379, 50 U.S.C. app. 2168, which provides for the
development of Cost Accounting Standards to be used in connection with
negotiated national defense contracts.
Work on this Standard was initiated as the result of a variety of
continuing problems between contractors and the Government concerning
equitable allocations of home office expenses to segments involved in
negotiated defense contracts. The problems include disagreements on:
(i) The propriety in certain circumstances of using particular
allocation bases, such as cost of sales or direct labor for allocating
home office expenses to segments; (ii) whether and to what extent
certain kinds of segments such as GOCO's, foreign subsidiaries and
partially owned subsidiaries should be included in the allocation base;
and (iii) the homogeneity of expense pools.
The allocation of home office expenses to segments is not now
specifically governed or guided by an authoritative accounting
statement. Home office expenses allocated to segments and then to
contracts can constitute an important element of total contract cost.
The lack of authoritative standards to guide contractors, procurement
officers, auditors, and others, provides a great potential for
disagreement and controversy over contract costs. Assurance of equity
in cost determinations and contract settlement is singularly lacking.
This Standard prescribes criteria for allocation of the expenses of a
home office to segments of an organization. The criteria are based
primarily on the beneficial or causal relationship between such expenses
and the receiving segments. The Standard governs how a contractor may
allocate expenses of its corporate headquarters to various divisions,
subsidiaries, plants, or other subsidiaries of the corporation. The
Board believes that application of this Standard will result in sound
cost accounting and will provide a great degree of uniformity in the
determination of costs of negotiated defense contracts.
Research establishes that some home office expenses are incurred for
specific segments and can be assigned directly to them. Other expenses,
not incurred for a specific segment, have clear relationships to two or
more segments, relationships which are measurable with reasonable
objectivity. A third type of home office expense possesses no readily
measurable relationship to segments.
The Cost Accounting Standards Board finds that a Cost Accounting
Standard to govern the allocation of home office expenses is desirable
to reduce wasteful and expensive controversy and to obtain equity for
the contracting parties. The Standard published today requires that
those home office expenses incurred for specific segments are to be
allocated directly to those segments to the maximum extent practical.
Those that can be allocated to segments on the basis of objective
measurable relationships are to be accumulated and allocated by means of
logical and homogenous expense pools established for this purpose. The
remaining or residual home office expenses are then to be allocated as
discussed below.
The Board expects that this Standard will operate to reduce residual
expenses to a relatively minor amount and by this means also reduce
controversy and inequity. Where this is the case, the Board sees no
reason to require one particular technique to allocate these expenses.
Accordingly, where residual expenses are no greater than a specified
percentage of operating revenues, the Standard allows the use of any
appropriate allocation technique. However, if residual expenses exceed
such specified percentages, the Board believes that its objective of
reducing controversy and avoiding inequity would best be served by
selecting a single allocation technique to be used. Its research in
this connection has led the Board to conclude that for this purpose, a
three-factor formula is superior to other allocation bases and
techniques for the allocation of residual expenses.
Early research on this Standard included an extensive review of
available literature on the subject, a review of decisions of contract
appeals boards and courts, and a study of home office management
philosophy and operations of 40 companies representing a wide variety of
industries.
This research led to the publication of a proposed Cost Accounting
Standard in the Federal Register of June 30, 1972, with an invitation
for interested parties to submit written data, views, and comments to
the Board. To better assure that those who had already expressed
interest or provided assistance had an opportunity to comment, the Board
supplemented the Federal Register notice by sending copies of the
Federal Register materials directly to 196 organizations and
individuals, of which 86 companies were invited to furnish the Board
with estimates of any additional or reduced costs which could arise from
the implementation of the Standard.
Responses were received from 130 sources, including individual
companies, Government agencies, professional associations, industry
associations, public accounting firms, and others. All of these
comments and data have been carefully considered by the Board. Those
comments which are of particular significance are discussed below
together with an explanation of resultant substantive changes to the
Standard as published in the Federal Register of June 30, 1972.
As will be seen from the following discussion, the Board was greatly
benefited by the many comments it received on the Standard as published
in the Federal Register of June 30, 1972. The Board takes this
opportunity to express its considerable debt to those who devoted time
and skill to assisting the Board in this endeavor and to thank the many
companies and individuals involved.
(1) Materiality. Many commentators urged that the Standard contain a
general statement on materiality. The Board has previously stated that
the administration of its rules, regulations, and Cost Accounting
Standards should be reasonable and not seek to deal with insignificant
amounts of cost. The Board does not believe that any further general
statement is needed at this time. However, where specific changes could
be made to clarify the intent of this Standard with respect to
materiality, they have been made as further discussed below.
While most commentators agreed with the concept of maximum direct
allocation of home office expenses, and accumulation of nondirectly
allocated home office expenses into logical, homogeneous expense pools,
a few of these commentators believed that the Standard did not
adequately incorporate the concept of materiality for this purpose. The
Board agrees that materiality is an important consideration in
determining whether to specify that an expense is to be allocated
directly or by means of a separate expense pool. Accordingly, 403.40
of the Standard has been revised to state that expenses are to be
allocated to the maximum extent ''practical'' and that expenses not
directly allocated are to be grouped into separate homogeneous expense
pools ''if significant in amount and in relation to total home office
expenses.''
In addition, a number of commentators questioned the need for using
what they considered to be a relatively complex formula to allocate
residual expenses even when they are minor in amount. This requirement
was contained in the Standard as published in the Federal Register of
June 30, 1972. The Board believes the formula to be relatively simple,
well understood, already used by many companies to satisfy State tax
requirements, and based on financial data that is readily available.
Nevertheless, the Board agrees that other allocation techniques may be
acceptable if residual expenses are not material. Accordingly,
403.40(c) of the Standard being published today permits the use of any
allocation base representative of total activity if residual expenses
are less than a specified percentage of operating revenue.
The Board also considered a materiality test conducted periodically
which would permit a contractor, otherwise covered, to choose not to
follow the Standard if its application would result in little or no
change in the total amount he allocates to his segments with Government
business. The Board in this instance rejected this approach for the
following reasons:
(a) Such an approach would put undue emphasis on the effect of this
Standard on the allocation of costs to or away from Government
contracts.
(b) The administrative problems and time spent by both the Government
and the contractor in estimating the contract cost consequences of
application of the Standard periodically and negotiating the pro forma
application of the Standard for comparative test purposes would outweigh
any benefits that might be derived from waiver of the entire Standard on
the basis of materiality of result.
(c) There would be no assurance that a contractor's own procedures,
which in the test year happened to provide nearly identical results to
the results which would be provided through use of the Standard, would
in other, subsequent years also produce the same nearly identical
results. In effect, the results in the test year may have been an
aberration.
(d) In light of the general acceptance by the majority of
commentators of the concept of direct charging and grouping of
homogeneous expense pools, the provisions for materiality considerations
previously described are deemed sufficient.
(e) The Board has applied the concept of materiality to the extent it
believes practical in this Standard. The Board, however, as noted in
its prefactory comments on the first two published Standards (37 FR
4141), will give consideration to stating a concept of materiality
applicable to all Standards if subsequent events indicate the
desirability and feasibility of doing so.
The Board has eliminated a requirement, originally contained in the
June 30, 1972, proposal, for interdepartmental allocations of home
office expenses. This proposal would have required part of the cost of
certain home office functions to be allocated to other home office
functions before being reallocated to segments. The Board accepts the
views of a number of commentators that this procedure would be complex
and unwarranted in the light of a relatively insignificant effect on the
allocation of home office expenses.
The proposed Standard, as published in the Federal Register of June
30, 1972, required that all segments be included in an allocation base
unless it could be demonstrated that any segment did not receive benefit
from, or contribute to the cause of, an expense to be allocated. A
number of commentators observed that it would be virtually impossible to
demonstrate that a segment received no benefit. Others commented that a
segment should not be included in an allocation base if it received only
negligible benefit. The June 30, 1972 proposal has been revised to
accommodate these comments and to emphasize again the application of the
concept of materiality.
(2) Hierachy of allocation methods. A number of commentators were
concerned that a provision in the Federal Register of June 30, 1972,
that costs be ''* * * allocated on the basis of expenses caused by the
segments, benefits received by the segments, or benefits available to
the segments,'' did not provide adequate guidance for the selection of
appropriate allocation bases. The Board believes that with the
exception of centralized service functions, the allocation criteria
contained in the fundamental requirement are sufficiently specific so as
not to require additional guidance. The Board is persuaded, however,
that it is desirable to establish more definitive criteria for the
selection of an appropriate allocation base for centralized service
functions. For this purpose, the Board has added in 403.50(b) a
hierarchy of allocation methods. The hierarchy is based on achieving
the most realistic representation of the beneficial or casual
relationship that is practical in the circumstances.
(3) Allocation of residual expenses. With few exceptions,
commentators objected to the establishment of a single formula to
allocate costs of managing the company as a whole, i.e., residual costs.
Many noted that the formula, in conjunction with a broadly inclusive
definition of a ''segment,'' would produce inequitable allocations to
certain segments. Most often concern was expressed that the allocations
would have to be made to segments which receive little benefit from the
home office, such as independent subsidiary corporations, subsidiaries
in which the organization has only a minority ownership, foreign
segments, and Government-owned contractor-operator (COGO) plants.
Others were concerned that the formula was unduly complex to administer
and that the results of its use would not be worth the effort,
particularly where home office expenses are relatively minor in amount.
The most commonly suggested alternative to the formula was that the
Standard should provide ''criteria'' for allocation, rather than a
specific method or procedure. Some suggested, for example, that the
Standard require only that the allocation base be representative of the
activity of the segments. Most often the recommended criteria were
phrased in such general terms as equity, fairness, and reasonableness.
Some suggested total cost input, cost of sales, revenue, payroll, number
of employees, or value-added, as a single allocation base.
The Board recognizes that where residual expenses are minor in amount
in relation to a contractor's total business volume, the use of other
techniques is unlikely to affect materially the amount allocated to a
given segment, and is even less likely to affect materially the
allocations to individual contracts. The Board has therefore provided
in 403.40(c) that, where residual expenses are no greater than a
specified percentage of the organizations, operating revenue, they may
be allocated by means of any appropriate allocation technique. To
develop the percentages specified in the Standard, the Board considered
both actual statistics of various companies and the results of a staff
study to determine the effect of the Standard on the home office
allocations of a number of companies. The choice of an alternative
technique for allocation of residual expenses is expected to be
available to many contractors whose home offices perform relatively few
functions, or which adequately employ direct allocation or allocations
by means of other homogeneous expense pools.
The Board has concluded that where residual expenses are material in
amount, a single allocation technique should be specified. Accordingly,
403.40(c) of the Standard requires the use of the three-factor formula
if residual expenses are in excess of the specified percentage of total
company revenues. If residual expenses are material in amount, the
Board believes that selection of a single allocation technique is
necessary to reduce costly controversy in an area where disputes have
been commonplace. Furthermore, the Board is of the view that the
greater the amount of residual expenses, the greater the likelihood that
the use of a single factor base for all contractors could result in
inequitable allocations. The use of the three factors in the formula
minimizes any distortion that may result from any one of the factors.
The three-factor formula is selected because it takes into account
the major subjects of management concern, i.e., volume or activity,
employees, and invested capital. Some companies consider that the time,
effort, and attention of top management attributable to various segments
are approximately proportionate to the volume or activity of those
segments. Revenue is considered by some companies to be a generally
reliable and convenient measure of volume or activity. Other companies
believe that top management efforts are primarily devoted to the
employees of an organization and, therefore, advocate the use of payroll
for allocating the cost of these efforts. Still others believe that a
major top management concern is the management and deployment of the
capital invested in the organization; for the purpose of this formula,
the net book value of tangible capital assets and inventories is
considered by the Board to be a reasonable representation of invested
capital.
(4) The formula factors. In addition to permitting an alternative to
the three-factor formula for allocating residual expenses, the Board has
made certain modifications to the formula itself.
A number of commentators opposed the inclusion of intraorganizational
sales, in the revenue factor. Several of these commentators were
concerned that this procedure would ''pyramid'' the allocation of home
office expenses to those products which progress through several
segments of an organization before they are finally sold to outside
customers. Others noted that a segment established primarily to sell
products produced by other segments would receive a disproportionately
large share of home office expenses under the formula. However, a
segment which sells much or all of its output to other segments would
receive a disproportionately small allocation of home office expenses if
such sales were excluded from the revenue factor. The Board, therefore,
has concluded that the operating revenue of a segment shall include
sales to other segments, but such operating revenue shall be reduced by
purchases from other segments. This procedure will assure an
appropriate allocation to each segment, regardless of whether it sells
to other segments or to outside customers while at the same time
avoiding ''pyramiding'' of home office expenses.
As originally published in the Federal Register of June 30, 1972, the
Standard required the inclusion of rental property in the property
factor of the formula. Such property was to be valued at eight times
the annual rental rates. Many commentators opposed the inflexible
valuation of such property. Others believed the inclusion of rental
property at all was entirely inappropriate. Questions were also raised
whether, and to what extent, minor, short-term leases would have to be
included. In view of these comments, the Board has concluded that
tangible capital assets to be included in the formula should be those
capitalized in accordance with a contractor's established practices.
The Board, however, did not adopt the recommendation of many
commentators that the value of Government-furnished property be included
in computing the property factor of each segment. These commentators
were of the view that Government property requires as much, or more,
management attention as owned property. The Board believes that such
administration is mostly accomplished at the segment level, and
therefore, residual expenses of the home office are not significantly
related. Rather, property is included in the formula as a measure of
top management's attention to invested capital.
(5) Allocation of residual expenses to special segments. As
originally published in the Federal Register of June 30, 1972, the
Standard would have required, as a general rule, the allocation of a
proportionate share of residual expenses to all segments pursuant to the
three factor formula. For this purpose, ''segments'' included domestic
and foreign subsidiaries owned more than 50 percent as well as those
subsidiaries owned between 20 percent and 50 percent if the home office
exercised significant guidance and control.
Numerous comments were received in regard to these provisions.
Commentators observed variously that the percentage of ownership is not
in proportion to the benefits received from the home office, that the
amount of guidance and control is not in proportion to the percentage of
ownership, or that the benefits received are not in proportion to the
amount of guidance and control. Some commentators noted that the
absence of significant guidance and control is difficult to demonstrate.
A number of commentators were particularly concerned about the
resultant allocations to subsidiaries owned less than 50 percent,
foreign subsidiaries, unconsolidated subsidiaries, and sales
subsidiaries. Many commentators observed that subsidiaries often
perform their own home office functions, that the necessary information
to make the required allocation would not always be available, that
subsidiaries could not always be billed for home office costs, or that
such allocations would cause tax and legal problems. Various
commentators recommended alternatively that allocations to subsidiaries
be based on management judgment, on the degree of guidance and control,
or on the basis of benefit, rather than on any ownership criteria.
Others recommended variously that no allocation be made to subsidiaries
owned less than 100 percent, to subsidiaries owned less than 50 percent,
or to subsidiaries which are unconsolidated. Still others suggested
partial allocations in various forms. One industry association
recommended that allocations to subsidiaries be based on advance
agreements with the Government.
Upon analysis of the comments received on this subject, the Board is
persuaded that a requirement to allocate a pro rata share of residual
expenses by means of the formula or other allocation base to all
segments, without exception, could result in inequitable allocation in
certain situations. In the opinion of the Board, this problem is not
necessarily limited to subsidiary corporations, but can extend to other
segments. Accordingly, the Board has provided in 403.40(c)(3) of the
Standard that, where the Contracting Officer and the contractor agree
that a particular segment receives significantly more or less benefit
from residual expenses than would be reflected by the allocation of such
expenses pursuant to the formula or other representative base, they may
agree to establishing a special allocation of residual expenses to such
segment. Any such special allocation must reasonably reflect the
benefits received by the segment. Guidance to implement this provision
is contained in a new paragraph (d) under 403.50 of the Standard.
(6) GOCO's. Some commentators urged that GOCO facilities be excluded
from the definition of segments to receive allocations of home office
expenses, arguing that the GOCO facilities receive little or no benefits
from home office activities. Several commentators were concerned that
this Standard would result in contractors being required to make greater
allocations to GOCO's than would be reimbursed to them under the terms
of some GOCO contracts. The Board believes that contractual problems
associated with the allocation of costs to a GOCO contract pursuant to
this Standard, where such costs represent significantly more or less
benefit than the GOCO contract actually receives, can be dealt with by
agreement, as discussed in the preceding section. The Board intends to
consider in the near future the pervasive question of the treatment
required by relevant Federal agencies of the costs allocated in
accordance with any Standard.
(7) State and local income and franchise taxes. The Board believes
that the nature of this expense is essentially the same for all
companies and that there is little justification for the observed
multiplicity of allocation methods being used to allocate to segments
their share of corporate State and local income taxes and franchise
taxes. By means of an illustration in the Federal Register publication
of June 30, 1972, the Board proposed the allocation of State and local
income taxes on the basis of the profit and loss of each segment and
specifically requested comments on this particular illustration.
Numerous comments were received. While some commentators agreed with
the proposed illustration, most did not. Of those that did not, most
advocated an allocation method which would allocate such taxes on the
basis of the same factors used to compute a segment's share of total
corporate taxable income, that generally being the percentage of
payroll, sales, and property of the segment to the corporate total of
each of these factors. Several commentators noted that they use
different allocation bases, such as income or sales, but that these
result in approximately the same allocation as one based on the same
factors used to compute the tax.
After evaluating the comments, the Board continues to be of the view
that the nature of this expense is essentially the same for all
companies. Further, allocation of this expense on the same basis used
to compute a segment's share of total corporate taxable income is, in
the Board's judgment, more in accord with the concept of allocating home
office expenses on the basis of the beneficial or causal relationships
between such expenses and receiving segments. The Board has therefore
revised the illustration for the allocation of State and local taxes to
permit ''any base or method which results in an allocation that equals
or approximates a segment's proportionate share of the tax imposed by
the jurisdiction in which the segment does business, as measured by the
same factors used to determine taxable income for that jurisdiction.''
As a practical matter, this means that the tax for any State must be
allocated only to those segments that contribute to the factors used to
measure taxable income for that State. If there are several segments
that do business within a State, each segment's share of that State's
tax is to be measured by the proportionate contribution made by such
segment to the total of the factors for that State.
(8) Cost-benefits. Many commentators addressed themselves to the
last sentence of section 719(g) of the Act which provides that. ''In
promulgating such standards, the Board shall take into account the
probable costs of implementation compared to the probable benefits.''
The Board has not neglected its obligation and continues to measure
the costs and benefits involved in implementing both proposed and
promulgated standards. Its experience to date leads to the conclusion
that the kind and amount of empirical data called for by some
commentators is neither available nor possible of accumulation. In the
final analysis, the Board must determine whether the information that
has been assembled and evaluated is sufficient to enable it to make
reasonable judgments.
In making this determination with respect to the present Standard,
the Board gave careful consideration to the evidence bearing on the
likely initial and continuing implementation costs involved, both for
contractors and for affected agencies of the Government. At the same
time, consideration was given to the benefits which will be achieved
through simplified negotiation, administration, audit, and settlement
procedures; one of the major gains of standards, to contractors and the
Government alike, is the reduction in the number of costly
controversies. After evaluating the Standard being promulgated today,
the Board finds that the probable benefits of this Standard clearly
outweigh the probable cost of implementation.
(9) Exemptions. A number of educational institutions requested that
they be exempted from the provisions of this Standard. There appears to
be no disagreement that many educational institutions have ''home
offices'' similar in many respects to those of commercial organizations.
However, the educational institutions contend that, unlike commercial
organizations, they develop overhead rates for institutionwide
functional activities, such as education or research, in lieu of
overhead rates for organizational segments. According to these
educational institutions, it would serve no purpose, therefore, to
require allocation of an institution's ''home office'' expenses to
organizational segments. In addition, a number of these commentators
noted that there are problems in defining the segments of an educational
institution; e.g., whether a segment is a campus, a school, a
department or some other organization.
The Board is persuaded that in the light of the present practices of
educational institutions in carrying out Government contracts, little
purpose would be served at this time by requiring educational
institutions to adhere to a standard which prescribed criteria for
allocating home office expenses to organizational segments. The Board
recognizes that Office of Management and Budget Circular No. A-21,
which contains the cost principles applicable to grants and contracts
with educational institutions, does not presently require development of
indirect cost rates for individual segments of an educational
institution. Therefore, for the time being, these organizations which
are subject to Office of Management and Budget Circular No. A-21 are
exempted from the provisions of this Standard.
In addition, the Board is exempting State and local governments
subject to Office of Management and Budget Circular No. A-87 from the
provisions of this Standard pending further study of the applicability
of this Standard to such organizations.
(10) Effective date. As originally published in the Federal Register
of June 30, 1972, the Standard would have had to be followed by a
contractor for his first fiscal year following the receipt of a contract
to which the Standard is applicable. A number of commentators observed
that if a contractor received a contract shortly after the effective
date of the Standard and his fiscal year began shortly thereafter,
little time would be available to implement the Standard. Most of these
commentators requested that at least 6 months be allowed to make the
necessary preparations to implement the Standard. To accommodate these
requests, the Standard, now being published, requires that it must be
followed for a contractor's fiscal year beginning after September 30,
1973.
(11) Other comments. In addition to those changes already discussed,
the Board has made a number of other changes as a result of the comments
received. While these are considered to be of a minor or editorial
nature, the Board calls particular attention to the following additional
comments.
Various commentators stated that this Standard would require
contractors to accumulate and allocate home office expenses on a
different basis than that used for internal management purposes. As a
consequence, these commentators were concerned that the Standard would
necessitate two separate sets of records. Others urged that the
Standard specifically permit the use of memorandum records. The Board
notes that even in the absence of this Standard, many contractors now
use memorandum records to make home office allocations for purposes of
Government contracts because they do not make formal allocations of home
office expenses to segments, or do so on a different basis. The Board
sees no need to disturb the practice of using memorandum records for
home office allocations, nor does it view this as being a significant
burden on contractors who find the need to do so. However, the Board
does not consider it necessary or appropriate to refer specifically to
the use of memorandum records by means of this Standard.
Certain commentators recommended that the Standard be specific as to
the use of estimated or budgeted amounts, either for pricing purposes or
for purposes of actual allocations. The use of estimates or budgets for
pricing purposes or for purposes of provisional rates for cost
accumulation is customary, and is not considered by the Board to require
specific authority by the terms of this Standard.
There is also being published today (37 FR 26678) an amendment to
Part 400. Definitions, to incorporate in that part the words and
phrases defined in 403.30 of the Standard.
04 CFR 403.80 Pt. 403, Preamble B
04 CFR 403.80 Preamble B
Amendments, 11-7-73
Preamble to revisions of the definitions of ''home office'' and
''tangible capital asset,'' 403.30(a)(2) and (5), and editorial
amendments to 403.50(c)(2) and 403.70, 38 FR 30725, Nov. 7, 1973.
The document amended 4 CFR Parts 331, 351, 401, 402, and 404 as well as
Part 403; material relating to those parts is omitted. It appears in
the supplements to those parts.
The purpose of this publication by the Cost Accounting Standards
Board is to amend Parts 331, 351, 400, 401, 402, 403, and 404 of its
rules and regulations. The amendments, which are minor clarifications
to the regulations, were published in the Federal Register of September
5, 1973 (38 FR 23971). The amendments: * * * (c) modify certain
definitions in Parts 400, 401, 402, 403, and 404 for the purposes of
uniformity among the various Parts. Only one comment in response to the
September publication has been received by the Board. This expressed
agreement with the proposed changes.
In view of the foregoing, the following amendments to the Board's
regulations are being made effective November 7, 1973.
04 CFR 403.80 Pt. 403, Preamble C
04 CFR 403.80 Preamble C
Amendments, 8-4-75
This publication, 40 FR 32747, August 4, 1975, revised 403.70(a) and
made several amendments to Part 351. Only those portions of the
preamble which describe the revision of 403.70(a) are printed here,
although the complete preamble appears as preamble F of the supplement
to Part 351. A correction to the language which amended 403.70 was
printed at 40 FR 33819, August 12, 1975.
The purpose of this publication by the Cost Accounting Standards
Board is to modify Part 351, Basic Requirements, of its rules and
regulations and Part 403, Allocation of Home Office Expenses to
Segments. A proposed modification to Part 351 was published in the
Federal Register of April 3, 1975 (40 FR 14942). Twenty-seven sets of
comments were received in response to that publication. After
considering those comments, the most significant of which are discussed
below, the Board is today publishing an amendment to its rules relative
to the requirement for the submission of Disclosure Statements by
defense contractors and subcontractors.
6. Applicability of CAS 403. A number of commentators noted that the
April 3 proposal deleted paragraph 351.41 of the Board's regulations.
This paragraph restated the requirement that only companies that met the
Disclosure Statement filing requirement for Federal fiscal year 1971
were required to comply with CAS 403, Allocation of Home Office Expenses
to Segments. These commentators asked that the Board's position be
clarified as to whether or not any current revision to the Disclosure
Statement requirement also changed the coverage of CAS 403. It was not
the Board's intention to broaden the coverage of CAS 403 at this time.
The possibility of extending the coverage of that Standard is the
subject of a separate study currently underway. To make the Board's
intention wholly clear, 403.70 of CAS 403 is being revised to state
explicitly rather than by cross reference the continuing coverage of
that Standard. This revision has no substantive significance whatever,
but instead merely sets out specifically what was and continues to be
the exemption from that Standard, which was before today accomplished by
reference to 351.40 of the Board's Basic Requirements. Contractors and
subcontractors which together with their subsidiaries did not receive
net awards of negotiated national defense prime contracts during Federal
fiscal year 1971 totaling more than $30 million continue to be exempt
from Standard 403.
04 CFR 403.80 Pt. 403, Preamble D
04 CFR 403.80 Preamble D
Amendment Published 9-12-77
This document amended 403.70(a) and designated the existing text of
403.80 as (a) and added (b). The amendment was published at 42 FR
45625, Sept. 12, 1977 as a part of the publication which added Part 332
and amendments to Parts 331 and 351 of this title. The complete
preamble appears on the supplement to Part 332.
04 CFR 403.80 Comments on Part 403
With respect to the amendment of Part 403, the November 30, 1976
proposal was to revise that Standard to make it applicable to any
contract which was subject to Cost Accounting Standards generally. The
amendment being promulgated today retains this concept. However, as
recommended by a number of commentators, the Board deferred the
promulgation of this amendment pending the amendments to Parts 331 and
351 and the addition of Part 332 discussed above.
The decision to extend the application of Part 403 to additional
contractors was made on the basis of extensive research. This research
included both those contractors who were already required to use Part
403 and those who were expected to use it as a result of this amendment.
With respect to the current users, the Board is satisfied that this
Standard has resulted in more equitable allocations, with little
administrative effort in most cases. With respect to potential
additional users, the research indicated that many of these would have
to make few, if any, changes to comply with Part 403 and that the
remainder could comply with little difficulty. The Board notes in
addition, an independent study by the Conference Board which found that
defense contractors who are using Part 403 for contract costing purposes
are using the same allocation procedures for internal reporting
purposes. According to the Conference Board, it was typical of these
companies to allocate home office expenses on a blanket basis prior to
the promulgation of Part 403. (Information Bulletin No. 17, February
1977.)
A number of commentators suggested various limitations for the
application of Part 403. Some of these suggestions were expressed in
general terms. Some of the commentators recommended, for example, that
the requirement to use Part 403 should not be extended to ''small
contractors.'' Alternatively or additionally it was recommended that
Part 403 should not be required for a large contractor with little work
subject to Cost Accounting Standards. More specifically,
recommendations were received to exempt those contractors with less than
10 percent of their revenue from Government work. Others recommended
that contractors who have less than $10 million in contracts subject to
Cost Accounting Standards should be exempt. The Board believes that the
recommendations of this nature have been accommodated to the extent
desirable and practical by the amendments to Parts 331 and 351 and the
addition of Part 332 being promulgated today. Accordingly, any further
exemption from Part 403, specifically, is considered to be necessary.
In publishing the proposed amendment to Part 403 in the Federal
Register of November 30, 1976, the Board stated that there is evidence
that almost all contractors who were required to make significant
changes in their allocation practices as a result of Part 403 did so
without undue trouble or expense. Several commentators questioned the
Board's conclusion in this regard. The Board's conclusion was based in
part on Staff research involving 147 home offices who now use Part 403
to allocate home office expenses. This research sought to determine,
among other things, the administrative problems and expense involved in
making allocations pursuant to Part 403. Government auditors reported
that of the 147 home offices, only 4 had problems in developing the
necessary data and that there was evidence of significant administrative
costs at one of these four offices. In addition, evidence of
significant administrative costs in making the allocations was found by
the Government auditors at four other of the 147 home offices.
Some of the respondents who questioned the Board's conclusions
regarding administrative problems and expense referred to an industry
report on the economic impact of Cost Accounting Standards as support
for this position. These respondents variously referred the Board to
those sections of the report which summarized (i) contractor's appraisal
of benefits from Part 403; (ii) the number of contractors who were
required to make changes as a result of Part 403; (iii) the number of
noncompliance notices issued in connection with Part 403; and (iv) the
increase and decrease in costs allocated to Government work as a result
of CAS 403. Nothing in these sections, however, specifically addresses
the question of administrative problems or expense involved in complying
with Part 403.
Two associations reported that, contrary to the Board's findings,
their member companies had experienced trouble and expense in complying
with Part 403. These associations declined to identify the companies
involved, the nature of the problems, or the amount of the expenses.
Under these circumstances, there is no basis to alter the conclusion
that contractors have been able to make changes required as a result of
Part 403 without undue trouble or expense.
One commentator stated that it would not be desirable to make more
contractors subject to Part 403 because he believes it to be defective,
particularly with respect to its application to the allocation of state
and local taxes. With respect to the application of the Standard to the
allocation of state and local taxes specifically, the Board notes that
it reached its conclusion on the basis of considerable research and
extensive deliberation. Moreover, it has reexamined its conclusion,
even after the promulgation of Part 403. Notwithstanding the views of
the commentator, the Board continues of the view that the provision in
question is proper. Accordingly, the Board does not agree that this
Standard should not be extended to additional contractors because of the
tax allocation provision.
04 CFR 403.80 effective date
The effective date of the regulations being published today is March
10, 1978. Pub. L. 91-379 provides that regulations shall take effect
not earlier than the expiration of the first period of sixty calendar
days of continuous session of the Congress following the date on which a
copy of the regulations is transmitted to the Congress. The calendars
of the Congress indicate that the required sixty days will not pass
until some time in February 1978. Accordingly, March 10, 1978, has been
selected to assure sufficient time for the regulation to lie before the
Congress.
04 CFR 403.80 Pt. 403, Preamble E
04 CFR 403.80 Preamble E
Preamble to document published 6-8-78
The document published on June 8, 1978 at 43 FR 24819, revised
403.10 and 403.70(b). This amendment was part of a publication which
added 331.30(b)(3). Only the portion of the preamble which describes
the revision to 403.10 and 403.70(b) are printed here. The remainder
of the preamble appears as preamble K of the supplement of Part 331.
In the Federal Register of February 16, 1977 (42 FR 9391), the Board
proposed to amend section .10, General Applicability, of standards 401
through 409 to conform these sections to the general applicability
section as it appears in standard 410 et seq. No. comments were
received on this proposed amendment. The Board considers this change to
be appropriate and is amending standards 401 through 409 as set forth
below.
04 CFR 403.80 PART 404 -- CAPITALIZATION OF TANGIBLE ASSETS
Sec.
404.10 General applicability.
404.20 Purpose.
404.30 Definitions.
404.40 Fundamental requirement.
404.50 Techniques for application.
404.60 Illustrations.
404.70 Exemptions.
404.80 Effective date.
Preambles A -- D
Authority: 84 Stat. 796, sec. 103, 50 U.S.C. App. 2168.
Source: 38 FR 5321, Feb. 27, 1973, unless otherwise noted.
Editorial Note: A supplement, consisting of the preambles to these
regulations as they appeared in the Federal Register, follows the text
of this part. These preambles, which are intended to explain the
regulations in nontechnical language, are printed in chronological order
to provide an administrative history of the cost accounting standards.
The preamble to the original publication of this part (38 FR 5318,
February 27, 1973) is set forth in preamble A of the supplement.
For preambles to amendments and revisions which affect only certain
sections, see the references following those sections.
04 CFR 404.10 General applicability.
General applicability of this cost accounting standard is established
by 331.30 of the Board's regulations on applicability, exemption, and
waiver of the requirement to include the cost accounting standards
contract clause in negotiated defense prime contracts and subcontracts (
331.30 of this chapter).
(43 FR 24820, June 8, 1978)
Preambles: For preamble to 404.10, see preamble C of the supplement
to this part. For preamble to superseded regulations see Preamble A of
the supplement.
04 CFR 404.20 Purpose.
This Standard requires that, for purposes of cost measurement,
contractors establish and adhere to policies with respect to
capitalization of tangible assets which satisfy criteria set forth
herein. Normally, cost measurements are based on the concept of
enterprise continuity; this concept implies that major asset
acquisitions will be capitalized, so that the cost applicable to current
and future accounting periods can be allocated to cost objectives of
those periods. A capitalization policy in accordance with this Standard
will facilitate measurement of costs consistently over time.
04 CFR 404.30 Definitions.
(a) The following definitions of terms which are prominent in this
Standard are reprinted from Part 400 of this chapter for convenience.
Other terms which are used in this Standard and are defined in Part 400
of this chapter have the meanings ascribed to them in that part unless
the text demands a different definition or the definition is modified in
paragraph (b) of this section:
(1) Asset accountability unit. A tangible capital asset which is a
component of plant and equipment that is capitalized when acquired or
whose replacement is capitalized when the unit is removed, transferred,
sold, abandoned, demolished, or otherwise disposed of.
(2) Original complement of low cost equipment. A group of items
acquired for the initial outfitting of a tangible capital asset or an
operational unit, or a new addition to either. The items in the group
individually cost less than the minimum amount established by the
contractor for capitalization for the classes of assets acquired but in
the aggregate they represent a material investment. The group, as a
complement, is expected to be held for continued service beyond the
current period. Initial outfitting of the unit is completed when the
unit is ready and available for normal operations.
(3) Repairs and maintenance. Maintenance is the regularly recurring
activity of keeping assets in normal or expected operating condition.
Repair is the activity of putting them back into normal or expected
operating condition. The total endeavor to obtain the expected service
during the life of tangible capital assets is generally called repairs
and maintenance.
(4) Tangible capital asset. An asset that has physical substance,
more than minimal value, and is expected to be held by an enterprise for
continued use or possession beyond the current accounting period for the
service it yields.
(b) The following modifications of definitions set forth in Part 400
of this chapter are applicable to this Standard: None.
(37 FR 4173, Feb. 29, 1972, as amended at 38 FR 30730, Nov. 7, 1973)
Preambles: For preambles to amendments to 404.30, see preambles A
and B of the supplement to this part.
04 CFR 404.40 Fundamental requirement.
(a) The acquisition cost of tangible capital assets shall be
capitalized. Capitalization shall be based upon a written policy that
is reasonable and consistently applied.
(b) The contractor's policy shall designate economic and physical
characteristics for capitalization of tangible assets.
(1) The contractor's policy shall designate a minimum service life
criterion, which shall not exceed 2 years, but which may be a shorter
period. The policy shall also designate a minimum acquisition cost
criterion which shall not exceed $1,000, but which may be a smaller
amount.
(2) The contractor's policy may designate other specific
characteristics which are pertinent to his capitalization policy
decisions (e.g., class of asset, physical size, identifiability and
controllability, the extent of integration or independence of
constituent units).
(3) The contractor's policy shall provide for identification of asset
accountability units to the maximum extent practical.
(4) The contractor's policy may designate higher minimum dollar
limitations for original complement of low cost equipment and for
betterments and improvements than the limitation established in
accordance with paragraph (b)(1) of this section, provided such higher
limitations are reasonable in the contractor's circumstances.
(c) Tangible assets shall be capitalized when both of the criteria in
the contractor's policy as required in paragraph (b)(1) of this section
are met, except that assets described in paragraph (b)(4) of this
section shall be capitalized in accordance with the criteria established
in accordance with that paragraph.
(d) Costs incurred subsequent to the acquisition of a tangible
capital asset which result in extending the life or increasing the
productivity of that asset (e.g., betterments and improvements) and
which meet the contractor's established criteria for capitalization
shall be capitalized with appropriate accounting for replaced asset
accountability units. However, costs incurred for repairs and
maintenance to a tangible capital asset which either restore the asset
to, or maintain it at, its normal or expected service life or production
capacity shall be treated as costs of the current period.
(38 FR 5321, Feb. 27, 1973, as amended at 45 FR 13723, Mar. 3, 1980)
Preamble: For preamble affecting 404.40, see preamble D of the
supplement to this part.
04 CFR 404.50 Techniques for application.
(a) The cost to acquire a tangible capital asset includes the
purchase price of the asset and costs necessary to prepare the asset for
use.
(1) The purchase price of an asset shall be adjusted to the extent
practical by premiums and extra charges paid or discounts and credits
received which properly reflect an adjustment in the purchase price.
(i) Purchase price is the consideration given in exchange for an
asset and is determined by cash paid, or to the extent payment is not
made in cash, in an amount equivalent to what would be the cash price
basis. Where this amount is not available, the purchase price is
determined by the current value of the consideration given in exchange
for the asset. For example, current value for a credit instrument is
the amount immediately required to settle the obligation or the amount
of money which might have been raised directly through the use of the
same instrument employed in making the credit purchase. The current
value of an equity security is its market value. Market value is the
current or prevailing price of the security as indicated by recent
market quotations. If such values are unavailable or not appropriate
(thin market, volatile price movement, etc.), an acceptable alternative
is the fair value of the asset acquired.
(ii) Donated assets which, at the time of receipt, meet the
contractor's criteria for capitalization shall be capitalized at their
fair value at that time.
(2) Costs necessary to prepare the asset for use include the cost of
placing the asset in location and bringing the asset to a condition
necessary for normal or expected use. Where material in amount, such
costs, including initial inspection and testing, installation and
similar expenses, shall be capitalized.
(b) Tangible capital assets constructed or fabricated by a contractor
for its own use shall be capitalized at amounts which include all
indirect costs properly allocable to such assets. This requires the
capitalization of general and administrative expenses when such expenses
are identifiable with the constructed asset and are material in amount
(e.g., when the in-house construction effort requires planning,
supervisory, or other significant effort by officers or other personnel
whose salaries are regularly charged to general and administrative
expenses). When the constructed assets are identical with or similar to
the contractor's regular product, such assets shall be capitalized at
amounts which include a full share of indirect costs.
(c) In circumstances where the acquisition by purchase or donation of
previously used tangible capital assets is not an arm's length
transaction, acquisition cost shall be limited to the capitalized cost
of the asset to the owner who last acquired the asset through an
arm's-length transaction, reduced by depreciation charges from date of
that acquisition to date of gift or sale.
(d) Under the ''purchase method'' of accounting for business
combinations, acquired tangible capital assets shall be assigned a
portion of the cost of the acquired company, not to exceed their fair
value at date of acquisition. Where the fair value of identifiable
acquired assets less liabilities assumed exceeds the purchase price of
the acquired company in an acquisition under the ''purchase method,''
the value otherwise assignable to tangible capital assets shall be
reduced by a proportionate part of the excess.
(e) Under the ''pooling of interest method'' of accounting for
business combinations, the values established for tangible capital
assets for financial accounting shall be the values used for determining
the cost of such assets.
(f) Asset accountability units shall be identified and separately
capitalized at the time the assets are acquired. However, whether or
not the contractor identifies and separately capitalizes a unit
initially, the contractor shall remove the unit from the asset accounts
when it is disposed of and, if replaced, its replacement shall be
capitalized.
04 CFR 404.60 Illustrations.
(a) Illustrations of costs which must be capitalized. (1) Contractor
has an established policy of capitalizing tangible assets which have a
service life of more than 1 year and a cost of $2,000. The contractor's
policy must be modified to conform to the $1,000 policy limitation on
minimum acquisition cost established by the Standard.
(i) Contractor acquires a tangible capital asset with a life of 18
months at a cost of $1,200. The Standard requires that the asset be
capitalized in compliance with contractor's policy as to service life.
(ii) Contractor acquires a tangible asset with a life of 18 months at
a cost of $900. The asset need not be capitalized unless the
contractor's revised policy establishes a minimum cost criterion below
$900.
(2) Contractor has an established policy of capitalizing tangible
assets which have a service life of more than 1 year and a cost of $250.
The Standard requires that, based upon contractor's policy, the asset
be capitalized.
(3) Contractor establishes a major new production facility. In the
process, a number of large and small items of equipment were acquired to
outfit it. The contractor has an established policy of capitalizing
individual items of tangible assets which have a service life of over 1
year and a cost of $500, and all items meeting these requirements were
capitalized. In addition, the contractor's policy requires
capitalization of an original complement which has a service life of
over 1 year and a cost of $5,000. Items of durable equipment acquired
for the production facility costing less than $500 each aggregated
$50,000. Based upon the contractor's policy, the durable equipment
items must be capitalized as the original complement of low cost
equipment. (The concept of original complement applies to such items as
books in a new library, impact wrenches in a new factory, work benches
and racks in a new production facility, or furniture and fixtures in a
new office building.)
(4) Contractor has an established policy for treating its heavy
presses and their power supplies as separate asset accountability units.
A power supply is replaced during the service life of the related
press. The Standard requires that, based upon the contractor's policy,
the new power supply be capitalized with appropriate accounting for the
replaced unit.
(b) Illustrations of costs which need not be capitalized. (1) The
contractor has an established policy of capitalizing tangible assets
which have a service life of 2 years and a cost of $500. The contractor
acquires an asset with a useful life of 18 months and a cost of $5,000.
The tangible asset should be expensed because it does not meet the 2
year criterion.
(2) The contractor establishes a new assembly line. In outfitting
the line, the contractor acquires $5,000 of small tools. On similar
assembly lines under similar conditions, the original complement of
small tools was expensed because the complement was replaced annually as
a result of loss, pilferage, breakage, and physical wear and tear.
Because the unit of original complement does not meet the contractor's
service life criterion for capitalization (1 year), the small tools may
be expensed.
(38 FR 5321, Feb. 27, 1973, as amended at 45 FR 13723, Mar. 3, 1980)
Preamble: For preamble affecting 404.60, see preamble D of the
supplement to this part.
04 CFR 404.70 Exemptions.
None for this Standard.
04 CFR 404.80 Effective date.
(a) The effective date of this standard is July 1, 1973. The
standard shall be applied to accrued expenditures for acquisition of
tangible capital assets during the contractor's next fiscal year
beginning on or after October 1, 1973.
(b) Sections 404.40(b)(1), 404.60(a)(1), and 404.60(a)(2), as
amended, shall be applied to accrued expenditures for acquisition of
tangible capital assets during the contractor's cost accounting periods
which begin on or after December 20, 1980.
(38 FR 12319, May 5, 1973, as amended at 45 FR 13723, Mar. 3, 1980)
Preambles: Preamble A of the supplement to Part 401 of this chapter
explains how effective dates are determined. For other preambles
affecting 404.80, see preamble D of the supplement to this part.
04 CFR 404.80 Pt. 404, Preamble A
04 CFR 404.80 Preamble A
Preamble to Original Publication of part 404, 12-27-73
Preamble, published at 38 FR 5318, Feb. 27, 1973, to the original
publication of this part.
The Standard on Capitalization of Tangible Assets published today is
one of a series being promulgated by the Cost Accounting Standards Board
pursuant to section 719 of the Defense Production Act of 1950, as
amended (Pub. L. 91-379, 50 U.S.C. app. 2168), which provides for the
development of Cost Accounting Standards to be used in connection with
negotiated national defense contracts.
Work preliminary to the development of this Standard was initiated as
the result of recognition that the general subject of fixed asset
accounting has been the source of continuing problems between
contractors and the Government concerning equitable determinations of
the costs attributable to performance of specific contracts. The
problems include (1) determination of the acquisition costs to be
capitalized as opposed to those which are charged against revenues of
the current period, (2) determination of appropriate depreciation
charges for a given fiscal period, (3) determination of the appropriate
allocation of depreciation charges among contractor activities, and (4)
determination of appropriate techniques for treating dispositions of
fixed assets. The Standard establishes the beginning point for fixed
asset accounting as described in (1) above. It does not cover the other
related topics.
Early research on this Standard included an extensive review of
available literature on the subject and a review of decisions of
contract appeals boards and courts. A preliminary analysis of the
entire topic of fixed asset accounting was made and a number of issues
were identified; comments on this analysis were obtained in response to
an extensive mailing. After careful evaluation of the comments, the
Board developed and circulated a questionnaire on tangible fixed asset
accounting practices. The replies to the questionnaire were considered
in the preparation of a preliminary draft of the Standard on
Capitalization of Tangible Assets, which was, in turn, widely
distributed for informal comment by interested parties.
The Standard now being promulgated is derived from the proposal which
was published in the Federal Register for October 5, 1972, with an
invitation for interested parties to submit data, views, and arguments
to the Board. The Board supplemented that Federal Register publication
by sending copies of the Federal Register material directly to
organizations and individuals who were expected to be interested.
Responses were received from 107 sources, including individual
companies, Government agencies, professional associations, industry
associations, public accounting firms, universities, and others. All of
the comments have been carefully considered by the Board.
Most of those who commented expressed general concurrence with the
provisions of the proposal. Many of the contractors who commented
indicated that their practices in most respects already complied with
the Standard; most suggested that the proposal should be modified only
in a few respects. The Board takes this opportunity to express its
appreciation for the helpful suggestions and criticisms which have been
furnished. Many companies and individuals have devoted significant
talent and effort to the improvement of this Standard.
The comments below summarize the major issues discussed in connection
with the October 5 proposal and explain the major changes which have
been made.
(1) Adequacy of existing situation. Some commentators contended that
the Board should not promulgate any rules in this area because the
applicable principles have been well established and accepted. The
Board, however, finds that the existing regulations have failed to
establish reasonable uniformity of capitalization practices among
comparable organizations.
(2) Specificity. Some interested parties criticized the proposed
Standard on the basis that it was ''too procedural.'' Those who comment
in this vein tend to assert that this Cost Accounting Standard should
deal only with criteria and policies. Others criticized the October 5
proposal as being too general and failing to provide sufficient guidance
about treatment of specific types of costs (such as sales tax) or
certain types of transactions (such as deferred maintenance).
The Standard provides practical implementation for the basic concept
of direct identification of costs with final cost objectives to the
maximum practical extent. The acquisition costs of tangible assets
should be identified and capitalized wherever the service lives and
amounts involved are so significant that contract costs would be
distorted if the acquisition costs were not capitalized. The main
feature of this Standard is the requirement that contractors
consistently apply reasonable capitalization policies in accordance with
criteria stated in the Standard.
A policy for capitalization is a policy for distinguishing between
assets and expenses. Immediate charge-off is justifiable as a practical
expedient in those situations where the improved allocation of cost
among cost objectives and accounting periods which would be attainable
by capitalization is worth the administrative costs which would be
required. Assets with either short service lives or minor acquisition
costs are conveniently accounted for as charges against current
revenues.
When a transaction is identified as the acquisition of a tangible
capital asset, the full cost of acquiring the asset should be
capitalized. The Board might have applied this concept by requiring the
inclusion of specific elements of cost in the determination of
acquisition cost. As one example, it would be appropriate in concept to
capitalize sales and use taxes as a part of the acquisition cost because
such taxes are clearly caused by the acquisition. However, as many
commentators have stated, as requirement to capitalize such taxes and
similar costs would require significant changes in contractor's
accounting systems, and the benefit from such increased uniformity may
not exceed the expected cost to contractors if required to change from
their present practices. The Standard, therefore, does not specifically
require the capitalization of sales or use taxes or other collateral
costs of acquiring tangible capital assets. The subject remains under
active consideration by the Board and if further study should indicate
that the benefits from increased uniformity in this area would outweigh
probable administrative costs, the Board will take affirmative action on
this subject.
This Standard does not provide procedural detail for determining the
accounting treatment for some specific kinds of transactions related to
existing assets. The major problems encountered in practice are those
of classification; once specific work is defined, for example, as
''preventive maintenance,'' ''routine repair,'' ''major overhaul,''
''extensive renovation,'' ''addition,'' ''betterment,'' or some other
such classification in accordance with contractor policy, the
appropriate accounting treatment can readily be agreed upon.
The Standard leaves latitude to the contractor in establishing his
capitalization policy, but it provides some reasonable limits. A major
purpose of Cost Accounting Standards is increased uniformity and
consistency; this goal implies some reduction in the flexibility which
was formerly available.
(3) Capitalization as an independent issue. As indicated above, the
research which has led to this Standard began as a broad inquiry into a
number of closely related issues. Capitalization is only one of those
issues. Interested parties have suggested that the Board should not
issue a Standard on any single part of the subject of fixed asset
accounting until it is prepared to deal comprehensively with all related
issues. The major objection is that changes in this Standard may be
found to be appropriate when the details of a Standard on depreciation
are agreed upon.
After careful consideration of all issues presented, the Board is
confident that the Standard being promulgated will be compatible with
future Standards. Nonetheless the Board acknowledges that because of
future Standards, or for other reasons, modification in this, or indeed
in any Standard which it promulgates, may be necessary. Should such
modifications be needed, they will be made. This Standard, by helping
identify those acquisitions which should be capitalized, will be useful
immediately in connection with identifying items whose cost should not
be allocated to current contracts.
(4) Definition of tangible capital asset. The term ''Tangible
Capital Asset'' has already been defined by the Board in connection with
the Cost Accounting Standard on Allocation of Home Office Expenses to
Segments. The definition provides that such assets ''are to be held for
continued use or possession * * * for the services they yield.'' Some
interested parties have suggested that this definition could apply to
inventories which are held for sale. The Board considers that the
phrase ''for the services they yield'' is sufficient to show that the
term does not apply to inventories. No change is deemed necessary in
the published definition.
(5) Nature of limits. The Standard requires that each contractor
establish and adhere to a reasonable capitalization policy. The Board
feels that, in most cases, the contractor is best able to determine what
policy will be most suitable for his situation, and that all interested
parties will be benefited by consistent application of appropriate
criteria for distinguishing between capital items and those which should
be charged off at time of acquisition. In consideration of the possible
distortion and inequity which might result from application of an
unreasonable policy (significant amounts of long-term fixed asset costs
charged to expense at acquisition), the Board considered the
desirability of a specific definition of the limits of reasonableness.
The proposal published in October, as well as earlier drafts distributed
informally, included the requirements that the policy deal with both the
expected service life and the acquisition cost. An acceptable policy
would not allow an asset to be charged off immediately against revenue
if its service life was expected to be in excess of 2 years and its
acquisition cost was in excess of $500.
The Board received many comments on the provision of these specific
limitations. Critics have used the term ''arbitrary.'' The Board has
considered carefully all the pertinent points and has continued the
limits which were earlier proposed. Disclosure statements and other
research data obtained by the Board indicate that very few contractors
will be required to change their present policies and those few required
changes will impact only a few acquisitions. A review of disclosure
statements filed with the Board indicates that only 3 percent of the
reporting companies had dollar capitalization criteria in excess of
$500. In addition, the fact that specific limits, appropriate today,
may need to be revised in the future is not a reason to avoid
establishing them today. Limitations can be revised promptly if
developments warrant a change.
There have been no established limits on capitalization policies.
Accordingly, wide diversity exists among contractors. The Board does
not seek to establish a single uniform accounting system for all
contractors, but it believes that limits for total cost and useful life
should be placed under some uniform constraints. Indeed, the Board
feels that procurement authorities are entitled to assurance that
contractor capitalization policies will result in the capitalization of
those acquired assets which are within specific limits of
reasonableness.
(6) Comparing benefits and costs. The Congress provided, in section
719(g) of the Act which established the Board, that in promulgating Cost
Accounting Standards ''the Board shall take into account the probable
costs of implementation compared to the probable benefits.'' Those
commenting on the Board's work show considerable interest in this
aspect; the comments on the October proposal included a number of
remarks on this comparison.
The Board considers the benefits and the costs which can be related
to each specific proposal and also to the total program of developing
Cost Accounting Standards. This Standard has, for most contractors,
almost no cost. It requires the adoption of a policy; most contractors
already have policies which comply with the criteria. Some contractors,
however, will have to establish or modify capitalization policies; for
these contractors there may be costs. Benefits will be available
immediately; contract administration will be improved. Once a
capitalization policy is established in accordance with the standard,
individual acquisitions can be handled in accordance with the
established policy, with a reduction in controversy. This Standard
establishes the beginning point for the determination of the costs
associated with use of capitalized tangible assets. One of the major
benefits of this Standard is, therefore, the provision of a more uniform
basis on which the Government and contractors may deal with depreciation
expense.
During the development process which led to this Standard, the Board
asked for, and received, a number of comments from contractors about the
likely costs attributable to the implementation of a proposal such as
this one. Most replies indicated little or no cost. Some indicated
compliance with this Standard will cause divergence from practices now
accepted for other purposes. The Board has found no requirement imposed
by other authoritative bodies for continuance of practices inconsistent
with this Standard. Divergence, therefore, will occur only if an
affected contractor elects, for other purposes, practices inconsistent
with the criteria set forth in this Standard.
The Board concludes that this Standard will provide benefits which
outweigh the costs of implementation.
(7) Accounting for assets acquired by lease. Many commentators
suggested to the Board various methods of accounting for assets acquired
by lease. This problem is not a new one. Tangible assets can be
acquired by various kinds of business transactions and relationships.
The accounting principles related to capitalization are most readily
applied in connection with purchases. Some lease agreements provide to
the user of an asset many of the attributes of ownership. The
accounting profession has long been cognizant of difficulties related to
determining when assets acquired by lease should be treated as
purchases.
The Board agrees that assets actually purchased should (if otherwise
appropriate for capitalization) be capitalized even when the purchase
transaction is in the form of a lease agreement.
This same determination must be made for other accounting purposes.
The accounting profession is now guided, in this regard, primarily by
opinions of the Accounting Principles Board; it is our understanding
that the Financial Accounting Standards Board will soon undertake to
provide a new statement for the profession on this issue. This Board
will carefully consider all authoritative statements of accounting
principles to the extent that it can do so while maintaining progress
toward its own primary goal of increased uniformity and consistency in
cost accounting for contracts.
Those lease acquisitions which are treated as purchases will be
subject to this standard; those which are treated as leases will for
the time being be subject to the existing procurement regulations which
deal with rental costs. The Board is, therefore, willing that the
contractor determine, for each acquisition, whether it is a purchase and
hence subject to his capitalization policy (which must comply with the
criteria established in this Standard) or a rental transaction and hence
subject to established regulations on rental costs. In either case,
determination of the reasonableness of the lease costs remains the
responsibility of the procurement agencies and is not dealt with here by
the Cost Accounting Standards Board.
(8) Investment Credit. The October proposal included a specific
provision that the Investment Credit pursuant to the Revenue Act of
1971, Pub. L. 92-178, need not be deducted from the purchase price of
tangible capital assets in establishing the acquisition cost of the
assets. Several interested parties criticized the language used in this
provision. Public policy on the point is clear; the Board, by
including a specific provision, did not intend to change the situation.
The Investment Credit need not be deducted, and there is no need for a
specific provision on this point. The Board has, therefore, removed the
provision.
(9) Indirect cost for constructed assets. The October 5 proposal
contained a provision that the acquisition costs of assets constructed
or fabricated by a contractor should include the indirect costs
allocable to final cost objectives. The Board specifically drew
attention to this treatment of such assets and requested that anyone
advocating an alternative treatment should set it forth in detail with
reasons for favoring it. Numerous commentators opposed the Board's
proposed treatment of constructed assets, stating variously that the
allocation of general and administrative expenses to such assets was
contrary to generally accepted accounting principles (since such
expenses are period costs), was not required by existing Government
regulations, and no one accounts for such assets in this manner. A few
suggestions for alternative treatment were made. Most of them dealt
with allocating to constructed assets only variable indirect costs that
could be directly identified with the assets constructed.
For financial reporting purposes some indirect costs are identified
as period costs and are not considered to be inventoriable. Consistent
application of the full costing concept generally applicable to
Government contract costing is not compatible with that period cost
concept; for such contract costing, all costs -- including those
otherwise considered as period costs -- must be associated with final
cost objectives. The October 5 proposal identified constructed assets
as projects which should be treated as final cost objectives and share
in indirect cost allocations. This treatment is consistent with the
casting practice which would be followed if the Government contracted
for the construction of fabrication of the assets in question.
The Board continues to be of the view that application of the full
costing techniques applicable to Government contract costing requires
that full consideration be given to the applicability of fixed overhead
including general and administrative expense to constructed assets.
Some fixed overhead at the operations level and certain general and
administrative expenses are often allocable to constructed assets based
on their beneficial relationship to the construction effort. Costs
generally not so allocable could include selling expenses, bid and
proposal expenses, and the like.
Therefore, tangible capital assets constructed which are identical
with or similar to the contractor's normal product should receive an
appropriate share of all indirect cost including general and
administrative expenses. In addition, other constructed tangible
capital assets requiring significant indirect support also should be
burdened with their allocable share of indirect costs, where such
indirect costs are material. The revised 404.50(b) reflects this
position.
(10) Grouping of assets. The proposed standard as published October
5 was construed by a number of readers to imply that capital assets
should be accounted for on a unit basis and not in groups. The Board
did not intend any such implication. The Board's interest is in costing
principles and the requirements to capitalize does not extend to the
specific type of records to be maintained.
(11) Rearrangement costs. Many of the controversies related to
capitalization are encountered in connection with costs incurred
subsequent to the acquisition of an asset. Routine repair costs are
unquestionably to be charged off against current revenues, while costs
of major betterments are clearly to be capitalized. Costs which are not
at either extreme are more difficult to account for. The October 5
proposal included a restatement of the principle that ''costs incurred
subsequent to the acquisition of a tangible capital asset for activities
which extend the life or increase the usefulness of that asset (e.g.,
betterments) and which meet the contractor's established criteria for
capitalization shall be capitalized.'' This aspect of the proposal was
generally favored by commentators. The proposal continued with the
requirement that expenditures for rearrangement and reconversion of
tangible capital assets, if they extend the life or increase the
usefulness of those assets, and which meet the capitalization criteria,
should be capitalized. This requirement has been criticized; many
contractors assert that rearrangement costs, as they use the term,
should never be capitalized.
The Board agrees that rearrangements of the sort normally expected to
maintain the usefulness of assets should not be capitalized. The Board
expects that rearrangements of the sort which extend the life or
increase the usefulness otherwise anticipated from tangible capital
assets, will be classified as betterments and capitalized in accordance
with the requirements of the standard. Accordingly, the term
''rearrangement'' has been deleted from the standard.
(12) Special purpose equipment. The Board has received a number of
suggestions that the Standard should provide explicit coverage for
special purpose assets. Consideration was given to this issue in the
research which led to the October 5 proposal. ''Special tooling'' and
''special test equipment'' are defined in Government procurement
regulations; expenditures of such assets are properly charged against
the contracts for which their acquisition is authorized. The
suggestions for modification of the October 5 proposal on this point
mostly deal with acquisitions which do not qualify as ''special
tooling'' or ''special test equipment.''
Contractors do acquire assets which are expected to have
technological or engineering capabilities for long periods but for which
the contractor does not foresee any significant utility after the
completion of a particular contract. Such assets are not ''special
purpose'' assets. Rather they are assets for which the contractor
expects relatively short economic service life (as compared with the
physical potential). Most suggestions for a change in the standard at
this point seemed to be based on the belief that these assets should not
be capitalized. The standard being promulgated today is applicable to
all acquisitions; each contractor's policy is required to include
appropriate criteria (e.g., estimated service life and economic
usefulness) for identification of capitalizable assets, including those
which are unusual.
(13) Donated assets. Some commentators opposed that part of the
standard which requires the capitalization of assets donated by the
Government. These commentators pointed out that such treatment may
eventually result in depreciation charges to Government contracts and
that Government regulations today make such depreciation charges
unallowable. The allowability of depreciation costs of assets donated
by the Government will not be influenced by the requirement that such
assets be capitalized.
(14) Original complements of low cost equipment. A number of
interested parties were concerned with the concept of original
complement. Those who commented asserted that there was an
inconsistency in capitalizing items of little value, that it would be
difficult to identify or control individual items, and that alternative
accounting methods were used to achieve the same results of
normalization of cost between periods.
The Board's primary purpose in requiring the capitalization of
original complements is to assure allocation of incurred cost to
applicable current and future accounting periods. The Board sees no
inconsistency in this purpose.
The total original complement should be treated as a tangible capital
asset. Therefore, the Board expects that a contractor will identify and
control the original complement as an entity rather than account
separately for each individual item which comprises the total
complement.
The Board recognizes that several methods are used to distribute the
cost of original complements to future accounting periods:
(1) Treating the complement as a tangible capital asset subject to
depreciation, (2) treating the cost as a deferral charge, or (3)
treating the original complement as an inventoriable asset. A standard
on depreciation is expected to prescribe acceptable methods for charging
the cost of original complements to accounting periods; the standard
being promulgated today requires that the complement be capitalized.
(15) Asset accountability unit. A number of interested parties
indicated problems with both the concept and definition of a retirement
unit as published in the October proposal. The term retirement unit has
been changed to ''Asset Accountability Unit'' which the Board believes
to be more descriptive of the concept actually applied in identifying
components of major assets. These units, to the maximum extent
practical, should be identified and separately capitalized upon
acquisition and, whether or not they have been previously separately
capitalized, they should be removed from the asset accounts when
disposed of. Replacement units should also be capitalized.
(16) Application of the standard. Several universities commented
that the proposed Standard should not apply to them because universities
generally do not use depreciation techniques. Under existing
procurement regulations, universities are entitled to a use allowance
for fixed assets in lieu of a depreciation charge. The Board believes
that the Standard on Capitalization is applicable to universities and
others in determining capitalized cost for computation of use allowances
or similar purposes and for identifying those items which are not
appropriate for current charges. Therefore, no exemptions are provided
for by this Standard.
There is also being published today (38 FR 5318) and amendment to
Part 400, Definitions, to incorporate in that part the words and phrases
defined in 404.30 of the Standard.
04 CFR 404.80 Pt. 404, Preamble B
04 CFR 404.80 Preamble B
Amendments, 11-7-73
This publication, 38 FR 30725, Nov. 7, 1973, amended 404.30(a)(4)
by revising the definition of ''tangible capital assets''.
The purpose of this publication by the Cost Accounting Standards
Board is to amend Parts 331, 351, 400, 401, 402, 403, and 404 of its
rules and regulations. The amendments, which are minor clarifications
to the regulations, were published in the Federal Register of September
5, 1973 (38 FR 23971). The amendments: (a) Re-number Parts 331 and 351
to facilitate insertion of future modifications to those parts; (b)
clarify one section of the contract clause at 331.5; and (c) modify
certain definitions in Parts 400, 401, 402, 403, and 404 for the
purposes of uniformity among the various Parts. Only one comment in
response to the September publication has been received by the Board.
This expressed agreement with the proposed changes.
In view of the foregoing, the following amendments to the Board's
regulations are being made effective November 7, 1973.
04 CFR 404.80 Pt. 404, Preamble C
04 CFR 404.80 Preamble C
Preamble to document published 6-8-78
The document published on June 8, 1978 at 43 FR 24819, revised
404.10. This amendment was part of a publication which added
331.30(b)(3). Only the portion of the preamble which describes the
revision to 404.10 is printed here. The remainder of the preamble
appears as preamble K of the supplemental to Part 331.
In the Federal Register of February 16, 1977 (42 FR 9391), the Board
proposed to amend section .10, General Applicability, of standards 401
through 409 to conform these sections to the general applicability
section as it appears in standard 410 et seq. No comments were received
on this proposed amendment. The Board considers this change to be
appropriate and is amending standards 401 through 409 as set forth
below.
04 CFR 404.80 Pt. 404, Preamble D
04 CFR 404.80 Preamble D
Amendments published 3-3-80
This publication, 45 FR 13721, Mar. 3, 1980, revised 404.40(b)(1)
and 404.80(b) and amended 404.60(a)(1) introductory text, (a)(1)(i)
and (ii).
04 CFR 404.80 Summary
Part 404 includes a requirement that defense contractors have written
policies for capitalization of tangible assets. Each such policy must
include a minimum acquisition cost criterion, which has not been allowed
to exceed $500. The Standard is being amended to raise the limit to
$1,000. The purpose of the change is to permit contractors to adopt
practices appropriate in today's economy.
04 CFR 404.80 Effective Date
December 20, 1980.
04 CFR 404.80 Supplementary Information
(1) Background. The amendment being promulgated today was, in one
sense, anticipated at the time the Board promulgated Cost Accounting
Standard 404. In its publication of February 27, 1973 the Board
commented ''. . . that specific limits, appropriate today, may need to
be revised in the future. . . . Limitations can be revised promptly if
developments warrant a change.'' This amendment is a specific
recognition that a change is warranted.
The amendment now being promulgated is derived directly from the
proposal which was published in the Federal Register for January 2, 1980
(45 FR 48) with an invitation for interested parties to submit comments.
The Board sent copies of the proposal directly to organizations who
were expected to be interested. The Board received 25 letters of
comment on the January 2 proposal. The Board appreciates the
participation by interested parties in its continuing effort to maintain
the effectiveness of its Standards and regulations.
The remarks which follow summarize the major issues discussed in the
comments on the January 2 proposal.
(2) The specific change from $500 to $1,000. CAS 404, as promulgated
in 1973, contained a requirement for a written capitalization policy.
The policy was required to include a minimum acquisition cost criterion,
and that criterion was not allowed to exceed $500. The $500 limitation,
selected as a ceiling to prevent unreasonable policies, encompassed the
practices of 97% of the companies whose Disclosure Statements were filed
with the Board.
The Board, recognizing that circumstances have changed significantly
since the promulgation of Standard 404, authorized an inquiry into
capitalization practices. With the cooperation of the National
Association of Accountants, the Board mailed a questionnaire to about
200 NAA members who were able to describe the practices of large,
medium, and small manufacturing firms which had not been influenced by
the limitation of Standard 404. The Financial Executives Institute also
mailed a similar questionnaire to about 900 of its members and asked
them to furnish information directly to the Board. The responses
received by the Board indicated that capitalization practices have
indeed changed since the promulgation of Standard 404. Freely adopted
policies now tend to include higher monetary criteria than were common
in 1973.
The Board is persuaded that the change is related to changing
economic circumstances, and that a change in the acquisition cost
criterion is warranted. The January 2 proposal was to change from $500
to $1,000. Those who commented on the proposal were generally in favor
of the specific change which had been proposed. The amendment being
promulgated is unchanged from the January 2 proposal in this regard.
(3) Use of index techniques for future changes. The Board received
several suggestions dealing with the idea that, in considering similar
revisions in future years, the Board should use index techniques. The
Board considered this general idea before making the January 2 proposal.
The Board had reviewed the performance of several official measures
which might have been used if an index technique were to be adopted.
The increases from 1972 to 1979 were from about 60% to about 80%,
suggesting that if $500 was the right limit at the time Standard 404 was
developed, a limit of about $800 or $900 might be appropriate at the end
of 1979. The questionnaire responses included a significant number of
business units using $1,000.
The Board will continue to consider the appropriateness of the $1,000
limitation now being imposed. The impact of inflation, as recorded in
several official indexes, will be among the factors considered. The
Board is, however, not prepared to provide for any automatic amendment
of the dollar limitation in Standard 404.
(4) Other clarifying language. It was suggested that, while the
Standard is being amended anyway, the Board could reduce possible
misunderstandings by modifying the language in two places.
The fundamental requirement of the Standard calls for a written
capitalization policy which designates ''. . . economic and physical
characteristics for capitalization of tangible assets.'' The suggestion
was made that this provision be modified by adding a clarifying phrase
so that it would read ''. . . economic and physical characteristics
which must be met before an item is required to be capitalized.'' This
suggestion was made in order to emphasize that the service life and unit
cost are not the only characteristics to be considered in making a
capitalization decision. The basic belief behind the suggestion is
valid. The Board agrees that other criteria, such as ability to
maintain physical identifiability, may be appropriately included in a
policy, and items which are not capitalizable because of failure to meet
one of the criteria specified in the policy should not be capitalized
even if the estimated service life and monetary cost are in excess of
those stated in the policy. The Board believes that the existing
language of 404.40(b) is clear in this regard, and no change is
considered necessary.
The Standard now provides, at 404.40(b)(4), that ''. . . higher
minimum dollar limitations . . .'' may be designated for betterments and
for original complements. Some accountants believe that the distinction
between an expenditure for ''repair'' and one for ''betterment or
improvement'' can best be made by considering the relationship between
the expenditure and the original cost or the replacement value of the
item being rebuilt or modernized. They believe it is reasonable to
propose a capitalization policy which includes a percentage criterion
which will, in turn, result in a different dollar criterion in each
situtation. One commentator suggested that the Board should eliminate
the word ''dollar,'' so that the amended Standard would allow the
designation of ''. . . higher minimum limitations. . . .'' The Board has
no objection to policies which are stated in percentage terms over the
range of typical application. The Board, however, feels that it is
quite reasonable to provide a monetary limit above which any betterment
will be capitalized even if its cost is a low percentage of some other
asset's cost. The Board is therefore not making the suggested change,
but it does take this opportunity to recognize that a capitalization
policy for betterments can quite reasonably include a sliding scale or
percentage technique provided that it also includes a specific monetary
limit.
(5) Effective date. The January 2 proposal would have applied to
assets acquired in contractors' cost accounting periods which begin on
or after January 10, 1981. Several commentators urged an earlier
effective date. The Board always tries to allow adequate time for
contract administrators to prepare for changes. This amendment does not
require any action; rather it provides the possibility for action. The
Board has changed the effective date to December 20, 1980. This change
will make the amendment effective much sooner for many contractors while
still allowing sufficient time for administrative implementation of the
amendment.
(6) Comparing Costs and Benefits. The Board's January 2 publication
included an explicit request for advice with respect to probable costs
of implementation as compared with probable benefits. Only a few
commentators dealt at all with this issue, and none of them in
quantitative terms. All those who discussed this issue indicated that
they expected benefits from the amendment, and that the benefits would
outweigh any costs of implementation. No commentator objected to the
proposal. The Board is persuaded that the probable benefits will exceed
the probable costs of implementation.
04 CFR 404.80 PART 405 -- ACCOUNTING FOR UNALLOWABLE COSTS
Sec.
405.10 General applicability.
405.20 Purpose.
405.30 Definitions.
405.40 Fundamental requirement.
405.50 Techniques for application.
405.60 Illustrations.
405.70 Exemptions.
405.80 Effective date.
Preambles A -- B
Authority: 84 Stat. 796, Sec. 103 (50 U.S.C. App. 2168).
Source: 38 FR 24198, Sept. 6, 1973, unless otherwise noted.
Editorial Note: A supplement, consisting of the preambles to these
regulations as they appeared in the Federal Register, follows the text
of this part. These preambles, which are intended to explain the
regulations in nontechnical language, are printed in chronological order
to provide an administrative history of the cost accounting standards.
The preamble to the original publication of this part (38 FR 24198,
Sept. 6, 1973) is set forth in preamble A of the supplement.
For preambles to amendments and revisions which affect only certain
sections, see the references following those sections.