DEFINITIONS

Section 11: This section defines "wage earners", "State", "cooperating institutions", and "bona fide labor organization".

The term "cooperating institution" includes any land-grant college or university and other institutions of higher education eligible to receive funds under the acts of Congress providing for agricultural extension work and other public or private nonprofit colleges, universities, or research agencies, approved by the State board.

This definition has been changed slightly from the definition carried in S. 1390 of the Eightieth Congress. The definition of "cooperating institution" in that bill included the following additional languagewhich under State law is eligible to receive and expend public funds for educational purposes.

That language has been omitted from the present bill in view of the fact that section 7 of the bill requires that all disbursements to cooperat ing institutions must be made "in accordance with the applicable State laws."

The term "bona fide labor organization" includes any voluntary association of employees, not company-dominated, formed for the purpose of advancing the interests of its members with respect to such matters as wages, hours, and conditions of employment.

MISCELLANEOUS PROVISIONS

Sections 12 and 13 contain the usual separability provision and the short title "Labor Extension Act of 1949", respectively.

RELATING TO THE PAY AND ALLOWANCES OF OFFICERS OF THE NAVAL ESTABLISHMENT APPOINTED TO PERMANENT GRADES

MARCH 4 (legislative day, FEBRUARY 21), 1949.—Ordered to be printed

Mr. TYDINGS, from the Committee on Armed Services, submitted the following

REPORT

[To accompany S. 779]

The Committee on Armed Services, to whom was referred the bill (S. 779) relating to the pay and allowances of officers of the Naval Establishment appointed to permanent grades, having considered the same, report favorably thereon without amendment and recommend that the bill do pass.

PURPOSE OF THE BILL

The purpose of the bill is to prevent the creation of claims for back pay and allowances due to the readjustment in lineal precedence of officers of the Navy, Marine Corps, and their Reserves required by the Officer Personnel Act of 1947.

EXPLANATION OF THE BILL

Starting with June 30, 1942, and lasting until the enactment of the Officer Personnel Act of 1947, promotions in the Navy were of a temporary nature. The Officer Personnel Act required the Secretary of the Navy to establish a single lineal list of all officers of the grade of ensign or above in the Navy or Naval Reserve and the Marine Corps and Marine Corps Reserve. As a result of the establishment of this lineal list, some officers were given dates of rank earlier than those shown on their temporary promotions. There was no readjustment of the relative standing of officers on the lineal list.

Under the Naval Reserve Act of 1938 it was specifically stated that

all officers of the Naval Reserve * * * who may be advanced to a higher grade or rank in time of peace or in time of war or national emergency under the

provisions of this Act, shall be allowed the pay and allowances of the higher grade or rank from the dates of rank as states in their commission, as distinguished from the dates of commission.

With the readjustment of the lineal list mentioned above and the giving of earlier dates of rank, the Navy Department feels that some Reserve officers would believe that they were entitled to back pay and allowances because of the adjusted dates of rank. This was never the intent of the Officer Personnel Act, but in order to preclude claims of this kind it is necessary to secure specific legislation. It is estimated that the potential claims that might arise, if legislation is not enacted, would total upwards of $30,000,000.

RECOMMENDATION OF THE DEPARTMENTS

The Navy Department recommends enactment of this legislation and it has been approved by the National Military Establishment. The Bureau of the Budget offers no objections to the legislation. A copy of the letter from the Acting Secretary of the Navy to the chairman of the Committee on Armed Services is attached hereto. THE SECRETARY OF THE NAVY, Washington, January 3, 1949.

The honorable the CHAIRMAN OF THE COMMITTEE ON ARMED SERVICES.

United States Senate.

DEAR MR. CHAIRMAN: There is transmitted herewith a draft of a proposed bill relating to the pay and allowances of officers of the Naval Establishment appointed to permanent grades.

The purpose of the proposed legislation is to enable the Navy Department to effect an equitable adjustment of lineal precedence for officers of the Navy, Marine Corps, and the Reserve components thereof, in the issuance of permanent appointments, without giving rise to claims for back pay and allowances in certain

cases.

The said

The act of June 30, 1942 (56 Stat. 463), suspended the provisions of law relating to the permanent promotion of naval officers; after June 30, 1942, and until the enactment of the Officer Personnel Act of 1947, promotions and advancements effected were of a temporary, as distinguished from permanent, nature. Officer Personnel Act (sec. 426 (a)), repealed the suspending provisions of the June 30 act, and, by section 304 (a) thereof, required that "As soon as practicable, but not later than thirty days after the date of approval of this Act, the Secretary of the Navy shall establish a single lineal list of all officers of the grade of ensign and above of * * * the Navy or Naval Reserve on active duty on the date of establishment of such list, and such lineal list shall constitute the order of seniority of such officers as of the date of its establishment * *" Officers of the Naval Reserve ordered to active duty in connection with the Naval Reserve program or ordered to temporary active duty for the purpose of prosecuting special work are specifically excluded from the provisions of the Officer Personnel Act; Naval Reserve officers on inactive duty and those who, prior to the establishment of the lineal list, were under orders directing their release from active duty,were also excluded.

Officers falling within the provisions of the said Officer Personnel Act were recently issued permanent appointments (pursuant to the act). In many cases, for the purpose of adjusting lineal precedence incident to the transition from the temporary to permanent ranks, their dates of permanent appointments antedated their former temporary appointments in the same grades. It was not intended that officers in this category would be given back pay or allowances. In the case of Reserve officers excluded from the provisions of the act, claims may lie for back pay and allowances by virtue of section 312 of the Naval Reserve Act of 1938, as amended, which reads in part as follows:

SEC. 312. * * * all officers of the Naval Reserve * * who may be advanced to a higher grade or rank in time of peace or in time of war or national emergency under the provisions of this Act, shall be allowed the pay and allowances of the higher grade or rank from the dates of rank as stated in their commission, as

distinguished from the dates of commission, or dates of acceptance of commission, and the dates of rank as stated in their commissions shall be conclusive for all purposes [Italics supplied.]

* *

The Navy Department believes that enactment of the proposed legislation is necessary to forestall possible claims for back pay and allowances which may arise from the issuance of permanert appointments incident to the transition from temporary to permanent grades. It is estimated that such potential claims would total a sum upwards of $30,000,000.

The Navy Department recommends enactment of the proposed legislation. This report has been coordinated among the departments and boards in the National Military Establishment in accordance with procedures prescribed by the Secretary of Defense.

An identical report has been transmitted to the Speaker of the House of Representatives this date.

The Navy Department has been advised by the Bureau of the Budget that there is no objection to the submission of this proposed legislation to the Congress.

Sincerely yours,

W. JOHN KENNEY, Acting Secretary of the Navy.