B-307317, State Justice Institute--Newsletter Advertising Charges, September 13, 2006

B-307317 Sep 13, 2006 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Congress established the the State Justice Institute (Institute) as a private, nonprofit corporation. 42 U.S.C. sect. 10702(a). Although the Institute has many aspects of a federal agency, its authorizing statute states that "[e]xcept as otherwise specifically provided...the Institute shall not be considered a department, agency, or instrumentality of the Federal Government." 42 U.S.C. sect. 10704(c)(1). Nothing in the Institute's authorizing legislation explicitly or implicitly requires application of the miscellaneous receipts statute, which states that all money received "for the government" must be deposited in the Treasury. 31 U.S.C. sect. 3302(b). Thus, the Institute is not subject to the miscellaneous receipts statute. Certain legal and policy considerations may inform the Institute's choices regarding advertising it carries in its newsletter. View Decision B-307317, State Justice Institute--Newsletter Advertising Charges, September 13, 2006 Decision Matter of: State Justice Institute—Newsletter Advertising Charges File: B-307317 Date: September 13, 2006 DIGEST The State Justice Institute (Institute) may retain a fee for the use of advertising space in its semiannual newsletter. Congress established the Institute as a private, nonprofit corporation. 42 U.S.C. sect. 10702(a). Although the Institute has many aspects of a federal agency, its authorizing statute states that –[e]xcept as otherwise specifically provided . . . the Institute shall not be considered a department, agency, or instrumentality of the Federal Government.— 42 U.S.C. sect. 10704(c)(1). Nothing in the Institute's authorizing legislation explicitly or implicitly requires application of the miscellaneous receipts statute, which states that all money received –for the government— must be deposited in the Treasury. 31 U.S.C. sect. 3302(b). Thus, the Institute is not subject to the miscellaneous receipts statute. Certain legal and policy considerations may inform the Institute's choices regarding advertising it carries in its newsletter. DECISION The Executive Director of the State Justice Institute (Institute) has requested an advance decision under 31 U.S.C. sect. 3529 regarding whether the Institute may retain a fee for the use of advertising space in its semiannual newsletter. Letter from Kevin Linskey, Executive Director, Institute, to David M. Walker, Comptroller General, Dec. 30, 2005. The Director's concern is rooted in the miscellaneous receipts statute, 31 U.S.C. sect. 3302(b), which dictates that in the absence of authority to the contrary, an agency receiving funds on behalf of the government may not retain those funds but must deposit them in the general fund of the Treasury. We conclude that the Institute is not subject to the miscellaneous receipts statute and under its authorizing statute the Institute may retain a fee for advertising space in its newsletter. BACKGROUND Congress provided for the establishment of the Institute in 1984. State Justice Institute Act of 1984, Pub. L. No. 98-620, title II, 98 Stat. 3335, 3336 (Nov. 8, 1984), codified at 42 U.S.C. sections 10701--10713. The Institute's purpose is to further –the development and adoption of improved judicial administration in State courts in the United States.— 42 U.S.C. sect. 10702(a). This statute establishes a private, nonprofit corporation. Id. It is incorporated in Virginia as a nonstock corporation under title 13.1, chapter 10 of the Code of Virginia Annotated. Articles of Incorporation of State Justice Institute, Sept. 24, 1986. The Board of Directors consists of 11 members appointed by the President and confirmed by the Senate. 42 U.S.C. sect. 10703(a)(1). The Institute carries out its mission primarily by providing funds to state court systems and affiliated organizations through grants, cooperative agreements, and contracts. 42 U.S.C. sect. 10705(a). The Institute receives an annual appropriation from Congress. E.g., Science, State, Justice, Commerce, and Related Agencies Appropriations Act, 2006, Pub. L. No. 109-108, title V, 119 Stat. 2290, 2333 (Nov. 22, 2005) (appropriating a lump sum for Salaries and Expenses). The Institute is authorized to make purchases from the General Services Administration, and its employees are eligible to receive certain federal employment benefits. 42 U.S.C. sect. 10704. Except for limited purposes specified in its authorizing statute, the Institute is not a government agency or instrumentality, and its employees are not to be considered employees of the United States. Id. ANALYSIS Whether the Institute may retain a fee for the use of advertising space in its newsletter depends upon whether it is subject to the miscellaneous receipts statute, 31 U.S.C. sect.