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including the requirement of the Act of July 2, 1862, that military tactics be taught therein. The fact of segregation itself does not affect the designated institution's rights and obligations, and Morrill Act funds are specifically available only to institutions established "in accordance with" the conditions of the 1862 enactment. The legislative history and the recorded interpretations of the Acts also enforce the conclusion that there is no legal basis for a failure to require a substantial course in military tactics to be offered by Negro institutions participating in grants under all or any of the four Acts of Congress noted above. -Opinion of the General Counsel, Federal Security Agency, July 13, 1949
Land-Grant Colleges Constituted Depositories of Public Documents by Act of March 1, 1907
[Clause from an amendment to an act providing for the public printing, binding, and distribution of public documents]
All land-grant colleges shall be constituted as depositories for public documents, subject to the provisions and limitations of the depository laws.— (34 Stat., 1014)
Free Mailing Privilege for Annual Reports of
[Excerpt from Postal Laws and Regulations of the United States (1924) relating to the free transmission of annual reports of agricultural and mechanic arts colleges]
Postmasters at offices where colleges are established under the provisions of the act of July 2, 1862, shall receive from the officers thereof the reports referred to addressed, one copy each, to such other colleges and to the Secretary of the Interior and the Secretary of Agriculture, and affix to each a penalty label or official envelop of the post office, and forward the same free.
Bankhead-Jones Act of June 29, 1935, as Amended June 1952 and July 14, 1960
Providing for research into basic laws and principles relating to agriculture, further development of cooperative agricultural extension work, and more complete endowment and support of landgrant colleges]
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
[NOTE. Only the section of this act applicable to the Morrill and Supplementary Morrill Funds for land-grant colleges is given.]
SEC. 22. In order to provide for the more complete endowment and support of the colleges in the several States and Puerto Rico entitled to the benefits of the Act entitled "An Act donating public lands to the several States and Territories which may provide colleges for the benefit of agriculture and the me
chanic arts," approved July 2, 1862, as amended and supplemented (7 U.S.C. 301-328), there are hereby authorized to be appropriated annually, out of any money in the Treasury not otherwise appropriated, the following amounts:
(a) For the first fiscal year beginning after the date of enactment of this Act, and for each fiscal year thereafter, $7,650,000; and
(b) For the first fiscal year beginning after the date of enactment of this Act, and for each fiscal year thereafter, $4,300,000.
The sums appropriated in pursuance of paragraph (a) shall be paid annually to the several States and Puerto Rico in equal shares. The sums appropriated in pursuance of paragraph (b) shall be in addition to sums appropriated in pursuance of paragraph (a) and shall be allotted and paid annually to each of the several States and Puerto Rico in the proportion to which the total population of each State and Puerto Rico bears to the total population of all the States and Puerto Rico as determined by the last preceding decennial census. Sums appropriated in pursuance of this section shall be in addition to sums appropriated or authorized under such Act of July 2, 1862, as amended and supplemented, and shall be applied only for the purposes of the colleges defined in such Act, as amended and supplemented. The provisions of law applicable to the use and payment of sums under the Act entitled "An Act to apply a portion of the proceeds of the public lands to the more complete endowment and support of the colleges for the benefit of agriculture and the mechanic arts established under the provisions of an Act of Congress approved July 2, 1862," approved August 30, 1890, as amended and supplemented, shall apply to the use and payment of sums appropriated in pursuance of this section.
Approved, June 29, 1935: amended June 12, 1952 (Public Law 390, 82d Congress); and amended July 14, 1960 (Public Law 86-658, 86th Cong.).
Digest of Rulings and Opinions on Act of June 29, 1935
For the purposes of administration, the funds provided by the Morrill Act of 1890, the Nelson Act of 1907, and Section 22 of the Bankhead-Jones Act of 1935, have been given the designation, "Supplementary Morrill Fund."-Ruling of Secretary of the Interior, February 12, 1936.
No Authority for State Legislatures To Appropriate Supplementary Morrill Funds
In brief, my opinion, based upon the legislative history of the Act, its long history of administrative interpretation, and upon judicial holdings, is that an appropriation by the State Legislature is neither necessary nor permissible under the acts in question, and that these acts require that the Federal funds be available to the properly designated colleges immediately upon request.Opinion of General Counsel, Federal Security Agency, August 3, 1943.
Retirement Act of March 4, 1940 (Public Law 422)
[Providing for Aid to the States and Territories in Making Provisions for the Retirement of Employees of Land-Grant Colleges]
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, pursuant to the recognized obligations
of governments to guarantee the social security of their employees in order to provide for the retirement on an annuity, or otherwise, of all persons being paid salaries in whole or in part from grants of Federal funds to the several States and Territories pursuant to the terms of the Act approved July 2, 1862, for the endowment and support of colleges of agriculture and mechanic arts, and Acts supplementary thereto providing for instruction in agriculture and mechanic arts, for the establishment of agricultural experiment stations, and for cooperative extension work in agriculture and home economics, all States and Territories are hereafter authorized, notwithstanding any contrary provisions in said Acts, to withhold from expenditure, from Federal funds advanced under the terms of said Acts, amounts designated as employer contributions to be made by the States and Territories to retirement systems established in accordance with the laws of such States or Territories, or established by the governing boards of colleges of agriculture and mechanic arts in accordance with the authority vested in them, and to deposit such amounts to the credit of such retirement systems for subsequent disbursement in accordance with the terms of the retirement systems in effect in the respective States and territories: Provided, That there shall not be deducted from Federal funds and deposited to the credit of retirement accounts as employer contributions, amounts in excess of 5 per centum of that portion of the salaries of employees paid from such Federal funds: Provided further, That, for the purpose of making deposits and contributions in retirement systems in favor of any employee, in no event shall the deductions from any Federal fund advanced pursuant to the foregoing Acts be in greater proportion to the total deductions for such employee than the salary received under such Federal funds bears to the total salary from Federal sources: Provided further, That the deposits and contributions from funds of Federal origin to any retirement system established by a State or a land-grant college must be at least equaled by the total contributions thereto on the part of the individuals concerned, the State, and the counties: And provided further, That no deductions for the foregoing purposes shall be made from Federal funds in support of employees appointed pursuant to the terms of the foregoing acts, whose salaries are paid wholly by the States and Territories; Provided further, That the provisions of this Act shall not apply to any employee paid in whole or in part from Federal funds who may be subject to the United States Civil Service Retirement Act, as amended. Approved, March 4, 1940.
Ruling Concerning Public Law 422
The U.S. Commissioner of Education asked the General Counsel of the Federal Security Agency four questions concerning interpretations of Public Law 422 in its application to Federal funds made available to land-grant colleges and universities for instruction. The questions and the answers are given below.
1. The Act of July 2, 1862, provided for the creation of a perpetual endowment fund for each State derived from the sale of public lands or land scrip granted to the State, the annual income from which is paid to the college. Does the Act apply to the income from the original land-grant endowment fund on the same basis as to annual appropriations of Congress under supplementary acts?
You are advised that the provisions of Public No. 422, 76th Congress, approved March 4, 1940, are equally applicable to the income from the endow
ment funds established pursuant to the Act of July 2, 1862, and to the Supplementary Morrill Funds provided under the Agricultural College Act of 1890, and your first question is answered in the affirmative.
2. In the enforcement of the provisions of the Act relating to the deposit in retirement systems of amounts deducted from grants of Federal funds, does any responsibility rest on the Federal Security Agency to investigate the actuarial soundness of the retirement systems operated by the States, Territories or Governing Boards of the Colleges? If not, does its responsibilities end upon obtaining the proper guarantee or certification that the deductions from such funds have been correctly deposited in the retirement systems? Similarly, if losses or deficiencies later occur in the fund due to unsound actuarial practices or to other causes, must the State or Territory make good such loss or deficiency as far as it relates to Federal funds?
First, you are advised that the law does not place upon the Federal Security Agency any responsibility or duty for insuring the actuarial soundness of any retirement system to which any part of the Federal funds hereinbefore referred to may be contributed. Neither the Act of March 4, 1940, nor applicable laws expressly fix any such responsibility. Further, the report of the Committee on Agriculture of the House of Representativs relative to this Act states that it is not its purpose to "dictate the kind of reirement system to be set up in each State and Territory but leaves the responsibility in State hands." Thus the internal merit of the State plan is placed clearly beyond the scope of this Agency's supervision.
The extent of the responsibility of this Agency may be briefly described as to reasonably assure itself in any case where funds provided to the several colleges under the 1862 and 1890 Acts, as amended, are deposited in or contributed to a retirement system that the following requirements are fulfilled:
(1) The retirement system is one duly established pursuant to and under the authority of the State law.
(2) The funds are contributed to or deposited in such retirement system in accordance with and pursuant to the authority of the State law, and
(3) The amount so contributed or deposited does not exceed that permitted by Public No. 422, 76th Congress.
It may be here said that, while ordinarily no difficulty is to be anticipated in determining whether the first two of the above requirements are complied with, in any case of reasonable doubt it would be the policy of this Office to accept the determination of the Attorney General of the State in which the question arises.
3. The University of . . . conducting the college of agriculture and mechanic arts for that State has a retirement system authorized by the Governing board and operated through the Teachers Insurance and Annuity Association, 522 Fifth Avenue, New York City, a non-profit organization maintained for the benefit of college teachers. Under it the employees of the university pay 2 percent of their annual salaries into the retirement system. When the system was originally adopted, it was expected that the State would contribute an amount equal to 5 percent of the salaries into the retirement fund. Up to date the State has not found itself in a position to meet this payment, but the employees have continued to pay 2 percent annually
into the system. Is the governing board of the University of .
under this Act permitted to deduct an amount equal to 2 percent of the salaries of employees from grants of Federal funds as an offset to the 2 percent now being paid by the employees?
Assuming that the retirement system authorized by the Governing Board of the University of . . . . . . . is one duly established pursuant to and under the authority of State law and that the amounts deducted from funds of Federal origin are deducted in accordance with and pursuant to the authority of State law, there would be no objection to the deduction of an amount not in excess of that specified by Public No. 422 from funds received under the Acts of 1862 and 1890 as amended, for the payment of that portion of the State's contribution to the retirement system. That is to say, the facts as stated in your inquiry, i.e., that the retirement system is underwritten by the Teachers Insurance and Annuity Association and that the State has never heretofore met its payments into the system, would not necessarily preclude the use of a portion of the Federal funds in accordance with Public No. 422. However, for the purpose of determining whether all the necessary conditions are met to permit the contemplated deduction you should obtain a copy of the resolution of the Governing Board of the University of... authorizing the establishment of the system and a full statement of the maintenance and operation of the system, together with specifications as to the amounts and circumstances of the proposed deductions. This statement should include reference to any opinion of the State Attorney General or other legal authority relative to the establishment and operation of the retirement system.
4. A State retirement system for teachers has been established in the State of . . . . . . . . . . ., which goes into effect July 1, 1940. Under its terms the teacher-employees of the.. . State College for Negroes may at option become members of the State system. May deductions authorized by the Act be legally made from grants of Federal funds for individual teachers where a voluntary retirement system of this character is operated either by a State, Territory or Governing Board of the College?
The .. State retirement system for teachers which becomes operative July 1, 1940, was established by an Act of July 9, 1938 (1938 1st ex. s. c 1) as amended by an Act approved March 19, 1940. Under the Act as amended teachers at the ... State College for Negroes are within the system and the provisions for voluntary coverage of the original Act have been removed. However, in our opinion the fact that a retirement system has voluntary coverage provisions would not preIclude the use of funds of Federal origin in accordance with Public No. 422. While there appears to be no doubt that the . . . . . . . . . State retirement system for teachers is established pursuant to and under the authority of State law, there is no clear authority under the State law for the use of any part of the fund received by the State under either the 1862 or the 1890 Act for contribution to or deposit in this retirement system. Accordingly, your Office should not approve deductions from these funds under Public No. 422 in the absence of an opinion of the Attorney General of . . . . . . . . . . or other competent legal authority of that State, holding that there is authority under the State law for such use of these funds.Opinion of the General Counsel of the Federal Security Agency, May 29, 1940.