Illlllllllllllllllllllllllllllllllllllllllllllllll LM103759 Is, w7-r -_ _I _.._ -- .-";. __-_____ ._- ~_. __.___ .-._.- _-I ------ --- - __,-_ -- ~.~~I?-164105 _-. . .^ -_._ _-._ __..~_ - __._--_--. _._..-. by any enactment of Congress" for certairi lobby2ng activities without express authorization. 31 U.S.C. § 628.proh%b&ts-the use Xappropriated funds for other than their iutendedTpurpose.-mAlsomperttint ia sect&a 607(a) of the Ireasury, PostalService;and CeneralCover&m&:Appropri- ation Act, 1977, Pub. L: No. 94;363- (July 14, J-976); 90-Stat; 963;97g, which provides: I "No part of anp appropriation eouU.ued fB this or any other Act, or of the fux~ds avaXkabla for expenditure by any corporation or ageuey, shall be used for publicity or propaganda pur- '. poses designed to support or defeat leg?=;~atZon pendiug before Congress." (Emphasis &b&d.) Ihe fdeutical provision is found ti sect&i .607(a) -of the Treae~uy, Postal Service and General Goverument Approppiatio~ Act, 1976, Pub. L. No. 94-91 (@T&St g, 1975). g9 s-t, 441, 45g*-.---(.-A---.- - -- -" - ---:-‘:- - . ._ --_.__ --_. -me-.--- ,, ..^... 1v.c __. __.;;;--~~-1-~-=.--------.- -.. -...-: ;;i-.- _ In iute+!eting "publicity and propagau&!%pm&&ous-such as section 607(a), we have consistently reco@zed that any ag&y liars a legitinate interest iu comumuicatig with the'public and witi leg&&xtuws regardTug its policies and actitities, If auy policy=or~activityof~aaageucy fs affected by pending or proposed le~sla~~~~~-d~~~~~~I;~~fficidls of that policy or activity will necessarily,, either axplic%tly-or by impli- cation, refer to such legfslatiou and will presumably be either In support of or in opposition to it. An interpretation of sectbon 607(a) whkh . __-~~ strictly-pmhibited expeuditures of-publ~~-~ds~f~fdbs-~~i~~ o*. p~d.~g~ le~l~ti~~~-~~~~~~~~~~~~~~ud~ &getiaaly tif my . comneut by officials OIL administration or.agency policy or activities, a resulr we do not believe was intended. --We- believe,' therefore,‘.t~at-C~~ess'-;l~d~~--~~~~by'the &actraent of section 607(a) and like measures, to preclude all expression by agency officials of views OIPpeudiug or proposed legislation. Rather, the pro- hibition of section 607(a), iu our view, applies priwarily to expeudftures iuvolviug appeals addressed to the public suggesting that they contact their alected representatives aud indicate the support of or opposition to pending or proposed legislation, *,, appeals to members of the public for them in turn to urge their represantatives~tmvote-&a particular mauuer. These general cousideratious fozXttie.bqsis for-our determiuatioxt in any gives instance of whether there basbee& a vzkolation of section 607(a). See, e.g., B-128938, July 12, 2-976,. copy enclosed, . _. . __...__... _. _- .; -- --I In th5s context, the comeu ts attributed to Hr. Van More saam claarly desigued to urge members CC the public to contact their Congressmen in -2- 2 i --.-- _. . _-...---_.-__ .‘i . support of the CRBRPand related legislation. Thus, -a statutes are othetise applkable, pubHcatim-oi tbe cmmen pear highly questionable;---However9 the sta?xtory prohSb%gj[bns have one elemcsne in _.-cxnmEon-*~y _ __~-_-. -- ---- are.&r heme _of appropt.-iat rather than the-1obbyin.g &&vi a.v4&,- TAxikihzeal sfte t0 a'tioiaiion of these &atutesp re,- is th~use-of appropzgated funds inconnect%o~wXththeactitities inguestkm, Basedou theMor- titicm we received horn BRl& it appears that appropr%a t involved, either in the pnblkation of the newsletter o of Hr. van NOgtVs salary. AscordI~@y~ we do not beI%- have been violated. : -We would caut& tha&tbe-titexpretatforc of 18 W.§.C. S 19 e . of its pea&E satdons;-fcs the respomsdbS.Z&ty of the Justice De and the cour~s,‘and &e wo&d generally refra&u fronr expresgbng aa~ optikm OIL it. Ourconclus5o~shoaikd tbereforebetiewedas r-a prS.wa&ly to sect&on 607(a). However, sizaseappropriated fin&s bavebeen involved, it.skews unI%kely that timkstfc pursue_the- matter.further. The material. that follows, which formed &a basicr for oBgt coskclms&o~, as s~b~nrafttec&.by.ERDA.on June lQ, l977, in response to.spe&fic qszestfons w~presenteck-c We--are--IueluBing thtiwaterkal- esstit%a.lly~as prow&k&, as backgropmd iafomatioa in order tq,be responsive to all aspects of pur request; . _Gener;PI;--co~tsL-e-.-+ ___.__ -.-. ---_- --- _-..- ..-- . - --- _-I_ - ;>.+qFy--- . F. -c-rbz.i--..-?;7,-.;~~.~~.~'-i'3~~~..~.~..~ "['FJhe CR& Project 5s a cooperat&we effort between the Energy Research and Developwent Adf&&&mtSon (ERLN) and approxAwate3.y 740 Utited s'tates electrk .- -.- --- uti~ity-s;gst~,--These-gt~ity--'sys~~-ame C&itrG but&q Szr exce8s of $257 m5.llim to the Project, They are represented in the CRBRPProject by the Breeder Reactor Corporation (BRC) and the Project MaQagement coszporat~os% (PHQ. "The Breeder Reactor Corpora&m is the utilitp or- ganization established ratprovide utility advice at the top-management level to the Project ax&to sezwe asliaisonbe~~then~ities~d t&Project. BRCkeeps tbeutKkkti&sapp3;Psedofprojectstatas _ - byholdiq regdaa tS.o~weetkgsa&bypm- viding for various types of wrftten reports, *d&kg Breeder Briefs, -39 . :. 5. -4. ..-_ - _._ . . . --- -- -.-- -.- -.__-..- . - B-164105 'The Project M&xagemznt Corporation is tbemn%ng- level organization established by t&e utilities to administer their interests in tbe.Pxoject. m~car- ries out itsmftict&+by-&y++ay mmZto+g of -- Project progress, nmnamg the d%Ui&kntof - uaity fimds,diss~t~info~~to~~aed- to the utilities as reqwsted by BE, axed zmmng5ng for the participation of ut&lity personas& * the Project. "ERDA*s role in the Project is to pxovide owera$ project mnagement and the necesm projeee.fu&@g in excess of that provided by tbenttlitrt-es, RRUA has established aProject Officeinlkk Tennessee, to provide day-to-day project activities w&h the except&m of those activities descrikd above th%z a%e the so& r-Sspo& - sif3l~tJ-ofPMc.'* ---- - ------------ ~- .- - . - 1. GAOquestioB: Legal autbotity for #klcatlan of tbekwsXetter. RRDArespo&se: 'eeeder Briefs is published as oneof theways iu rJBichPP%C-fulf~sac~~~t~o~~~~ts~ to dissdte inforiiui.on~a3oua;_~~ PTo&et. -.--- -_~---- -- . - _ __._ T ._~z-c-,=l <?.~__ -=c- .'=?.y'=-~T~~;":y.: zy$~2<=7;s;---- ---xm '- __:.,;- ~~"“&x-')-"y "-.--..? --. - IFArticle XJJl (a) of KodZfication No. 1 to Ckract MO. AT (49-18)-12-l between BRC and PEE recogu%zea tbatBRCwillserveas 'prinary Uaisonbetweemthe ect amb the dectrie- utirity 5sa&lstrp- the-.----.. . ic, ad in this respect shall me kts s to help assure the broad dissw&at Projectdataand information.. cI@REand &all conmltregularlywitbrespedztto program for~s~tfonofsachdata~~o~~~.' Under th%s provision BRC: has requested EWCm assise iaperfor&ug theinformsatioadisszmknaticmfuactioz? and PM-Chas accepted that responsib%Ii~,~. 2. GAOquestlan: 8ourceoffondingfoztbe etter&&&icatim md distribntti) . ^. ERDA respouse: -4. 3. GA.6questi&: Is the newsletter published by Govermnent persomelZ ERDA reqmnse: t .- "The~newsletter~3.s vrftten by &e Information M- +sion of the CgBap Project 0ffl;ce and published. . uudq contract by aprkvate prbtiug ffmt. AZ1 dj+i.sion personuel. are either employees of PMC or TW.. ThePIG employees are paidfzm.PMC.*s-operating ---L bu8get~~i;clh'fs--fund~ddfby utility contributti+ ---.-Ia-a~~~~~~:~t~~~ragrap~ ~;2~~~~f~&pGi&x D'of -- ---Ho$ificat&.m Ef-:-'f'to-&&kract No; AT@!%18)~I.2 betweezt'El?BA, TVA, CE and PEE, the~TVA employees 3.~ . the &fomatio~~DiVisfo~'~ak~ assigned to and receivs d~~aet~erPfsio~fram~~~~~r~.~~er of. PMC 'wb&a Go&&~&~ the newsXettmi2r:~ The salaries of . the. !iVA persome& are pai&by'l!V&front nompproprii ated.TVA funds- and,.TVA 5s re&nbursed>by PEE for such -..----i- expenses out of PMC's _--__ ope.~a~~g,budget,,-~eitheP-;--- ---- ----.-- m;r~~~~~~~~,~&~~~~~~n~~xopr~s~~f~dsr" -=:~TwTeq7 Tc-=h - _- "j'--. are~federally-appropriated. "Paragzaph D-Z.1 of-I%odzLficaticm~No. 1 provfdes that, _ .~~~with_.certaieexreptions--not-relevaot--here~--TvA's -- -. -- dfrectaad. indfrect expenses incurred in conxtection with TVA's Project Activities &all be reimbursed by ERDA. -Contr+ct No. AT(49-18)-U, as orighally entered into,. providea for PWto reimburse. TVA. for a.II such direct and indirect expenses. After Modification ISo,- 1 was executed PIE has cout$nued to reimburse TVA for fts expenses without interruption. Paragraph 4.l,3.2_ofJfodifzEcatiou Noi-X~irovides that :PHC shall be rezqmsS.bXe for paying, or arranging for payment of, sakr&es and related costs of all PMC personnel and utility industry personnel assigned..to the inte- * _. grate&Prafect Isaniagmti or~iioll. r Even though paragraphs DGZ.1 and 4.1.12 appear to be in conflict, -5- 3. -..--a- .-. -__._ ---f-..-- . . ._ ~. _. R-164105 _ ..- - ~- -- .- .._ _-_.- _. _. . . ._ .- -.---- it was ass-med by Project offkdals tbatunder para- graph 4.1.12 PIT, had authority for re.i&ursing TVA for the expenses of TVA.persounel ass&hed to-the Project, and under paragraph D-2.1 RRDAwas to z&t- burse TVA for all other-expenses~Sm%rred:b~ TVA fu _ connections with the Project,' ~ThattiGGption app&m3 to have been confirmed by TVA's General Counsel in a letter dated April 21, 1977, to PIE's Comptroller." 4. GAO question: If published by mm-Covknmeut personnel, hes protided any instructions regardhg the publication or conteut of th@ newsletter? ERDAresponse: '%RDA has.pr&ded uo instruction to PHC or BRC regarding publkatioon or dfstr%.but&m _ .. I of Breeder _- Briefs.t' -. * ,. _ '-.~ _.-._ ~_ __.----__- .~ ~- -.- - - - 5. GAO question: If published by m&-C&Wtpersbnuel, are there any procedures for review aud/or approv& of the neweletter by RRDA, aud if so, wer& they followed for the my1976 tisue'P ERDAresponse: '- . "There are no procedures per se for retiew . _._-_.- of the _____.-. newsletter -_--... --..- --.--byJJDA.-. %w~r~-S, .._-. - .-.. -,-----I- --.. - -- . - - ar.ticles.,concerniu~~or-, - -i ------ quotiug~RRDA.~personneJ.- . -: :.: Ir'. I. .. - I - - --." may be coordinated with the person(s) about whom the article is wr%tten," i 6, CA0 question:.--What was- the approximate cost of the-May 1976 issue of the newsletter (pubU.cation and distribution)? ERJIAresponse: "Total publication and dWzrlbut%ee costs * for the May issue of Breeder Briefs were $561.00." 7. CA0 question: Descpfbe the distributioa of the May T9?6 Issue (total number of copies printed and approximate er or portion d3strfbunted to Government employees aud to non-Govm t individuals or entitbs). , ERDAresponse: -6- z. -- t 'A total of 4,080 copies of the May 1976 Breeder Briefs were printed. Of the total prin*g, ap- prox$mkteXy 140 were df.st.+uted. to.govexment m.m-personnel and- the.r+der.were distributed to nongovernment personnel.' Govermeat agesxcies receiving copies of the May mewsletter fncluded TVA, FLRDA,the Nuclear Regulatory Cowmissfon, the Federal Energy Ads&&3tration, the Environ- mental Protecttin Agency, and the General AccounF- ing Office. Nongovernment recipieuta kluded utilities, CR88P consultants and contractors, news media, Tennessee community and business leaders, educational institutions, and- private citizens by request." ._ 8.:,~O,%e$tion:..What .is the source of the quotation attributed to - Mx..Van Nort (speech, _---- -. -- --- other: publiwtfon,~ comte.nt.dire.ctly to newsletter mstaff,_etc.)? ~_ ERM response: - .-.'- .,; _ "The quotat%ous-in the newsletter were obtained from discussionsbetween Wr. Vap Nort . and: the-Breeder Erfefs staff." .. _ _,__=:~.._i_r>iG ~f~nakfquestioP-we-raised-~t~~A-conce~ r _ among -... Appendix Pto'Eodfpica- ---i~~t~~~outrac~-No~49~~&)~12~~~ cbf&rfig, Ott ~:r things; the General Manager's salary,-which-yo11 wentgoned- in your request. We obtained copfes of the original 1973 contract and L%dificatfm I, dated May 1976, andreviewed pertinent provfsions. As in the case of tie coiitxact provi- - - -----sbo~-desa;tPng-wl~TVA~personnel-(see--~-fe8p'bnse~ to questtin 3 above), them contract provisions appear somewhat confusing. Sectfon 4,1.12 provides-that PMC shall be responsible for payIng,or arrauging for payment of, salaries and related costs of utility industry personnel assigned to . the.integrated project management organization.. Section F-6.1 provides that ERDA will reimburse Comonwealth Edison (CE) for all direct and indirect Project-related expenses. -- .Accokd5ng- to an-ERM officikl, the pa&es fiave interpreted these provisions to mean that PEE w5l.l re5wburse CE for salaries of assigned personnel out of utility contributions as long as those contributions rem&n (es-ted to 19821. When the utility funds have been depleted, ERDAwfll be responsible for reimbursement under section P-6.1. At -I- .- - . B-164105 present, PMC is still making the reimbursements out of the utilfty con- tributions. ERDA's explanation, set forth belowS makes it clear that, as a matter of fact, the Ceueral Manager is not being paid, directly or fndirectly, with appropriated funds: "According to paragraph F-l.1 of AppendrX H to Modification No. I to Contract No. ATC49-18).12, Commowealth EXson (CE) shall see 'That there are made available to PMC;at Project cost, ixxdiy . viduals qualified to serve and/or perform, as required, the functions of General Manager, and such additional functions as PMC and CE shall agree upon from time to time.' The individuals made available by CE are to be at Project cost, although CE has agreed in paragraph F-6.2 to contribute$2 milliw. (above aad- beyond &tts contribution to.design.~~build,the:.CB88P). aa ~~ a credit agsinst CEJs billings. for-work-or- ser- vices performed by CE under the contract, A credit of $14,891.00 is being deduct& currently on a monthly=basfs fo~Lwoices=undmzAppesdix F; -.'......,--=.;,;; r- - ___..~ "Mr. Van No& is a CE &ploy& assigned to PMC to perform the.functions of General Eanager. His salary is paid by CB. C'E is reimbursed by -_ ~. -----PMC for-the= salaries--of-Mrz-Van-Nort-azrd+other---- v.?---- - - ---.-"-" CE- persoMek =&asQ&+g=_.- _ t.-.jaJ$~~&>j+f;'~& the-.- =-.-~- above-noted credit. PM6 makes such reimburse- ments out of its operating funds derived from utility contrjibutions. No federally_ -_-appropriatad .-- funds-are involved. * *-*- --- "Contract No. ATf49-18)-12, as orig5nalQ entered 31t0, provided in paragraph F-l.l.tbat CE would make awaS.able to PMC; at Project cost, individ- uals to serve fulltime In various positions fn- eluding General Manager of the Project. Paragraph F-6.1 provided for PEC to reimburse afur al& direct and indfrect expenses incurredby~CE%n connection w:'th Project ActivLties. Paragraph F-6.1 of Eodificatiou No. 1 provides for BKDA to reimburse CE for such expenses, Afte=&d%f&8- tion No. 1 to Contract No. AT(49-181-12 became / -80 . ; i-_ .- . B-164105 effective, PI& continued to reimburse CB for its expenses tithout iuterrupSm. Project Office offfcials.assumed that, as was the case with TVA * * * uuder paragraph 4.1.12 of HIGH- ficatiou No. 1 Pi% has authority to reimburse GE for expenses of CE personnel assigned to the Project and under paragraph F-6.1 EBBA is to reimburse CE for other expenses incurred by CE in connection with the Project. * * *,, . We reviewed the above information independently but found no reason . to question its accuracy. We therefora reiterate our conclusion that the publication of the May 1976 newsletter, "Breeder Briefs" did not constitute a violation of Fede& anti-lobbyiug skutes since no appropriated funds were involved. We hope the forego&g information is helpful. Sincerely yours, - - . of ihe United States a .Enclosure. -9-
Findings and Recommendations Contained in Prior GAO Reports on Areas Similar to Those Covered in the National Academy of Sciences' June 1977 Report on Health Care for Veterans
Published by the Government Accountability Office on 1977-10-17.
Below is a raw (and likely hideous) rendition of the original report. (PDF)