Independent Offices Appropriations Act of 1952
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The Independent Offices Appropriations Act (IOAA) of 1952 is a federal law that provided federal agencies with the authority to assess user fees or charges through administrative regulations. Agencies that had not been granted specific statutory authority to assess user fees prior to the law were permitted to assess user fees under the authority of the IOAA. The legislation was signed into law by President Harry Truman (D) on July 6, 1952.[1][2]
Background
In 1950, the U.S. Senate Committee on Expenditures in the Executive Departments conducted a study on user fees assessed by federal government agencies. The committee operated under the opinion that those who benefited from using certain government services should shoulder the burden of their costs, according to a report by the U.S. General Accounting Office. The committee issued the following conclusion in its report:[3]
| “ | On the basis of the limited study reported on herein, the committee has established conclusively that opportunity exists for the equitable transfer of many financial burdens from the shoulders of the taxpaying general public to the direct and special beneficiaries.[3][4] | ” |
The committee did not recommend a specific course of action following the study, but Congress later approved the Independent Offices Appropriations Act (IOAA) of 1952 in order to provide federal government agencies with the authority to assess user fees through administrative regulations. Agencies that lacked any specific statutory authority to charge user fees were granted the authority to implement user fees under the IOAA. The act aimed to reduce agencies' sole dependence on federal appropriations and taxpayer dollars by garnering financial assistance from the specific beneficiaries of government services rather than the general public. For example, visitors to national parks may be assessed entrance fees, camping fees, or other associated costs.[3][5][6]
Under the act, user fees must be fair and "based on costs to the government, the value of the service or thing to the recipient, public policy or interest serviced, and other relevant facts," according to the U.S Government Accountability Office (GAO). Moreover, the agency must deposit the fees into the U.S. Treasury's general fund and cannot reserve the fees for specific use by the agency.[1]
Provisions
The Independent Offices Appropriations Act (IOAA) grants broad authority to federal agencies to assess user fees. The fees must be fair and based on the costs to the government and the value of the service provided, among other considerations. Fees collected are deposited in the general fund of the U.S. Treasury and are not directly available to the agency.[7]
The IOAA, codified at 31 U.S. Code § 9701, provides the following guidance for agencies:[8]
| “ |
(a) It is the sense of Congress that each service or thing of value provided by an agency (except a mixed-ownership Government corporation) to a person (except a person on official business of the United States Government) is to be self-sustaining to the extent possible.
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” |
Impact
Agency reliance on user fees has increased since the passage of the IOAA, a trend that the Congressional Budget Office attributes to various budget sequestration and reconciliation measures that have motivated agencies to seek out new funding sources. Many federal agencies today depend on user fees to fund services, according to a report by the U.S. Department of Agriculture's (USDA) Economic Research Service. In 2007, a GAO report found that total user fee collections across federal agencies amounted to $233 billion. In a review of 21 federal agencies, the USDA's report found that nine agencies relied on user fees to make up at least 80 percent of agency funding.[9][10][7]
The following table provides examples of user fees charged by federal agencies:[9][7]
| Examples of user fees charged by federal agencies, 2018 | |
|---|---|
| Federal agency | User fee(s) |
| Food and Drug Administration | Application fees for new drugs, annual fees on existing drugs, annual fees on manufacturing plants |
| National Marine Fisheries Service | Inspection fees |
| Nuclear Regulatory Commission | Inspection fees, license fees, and annual fees
to all active entities |
| National Park Service | Entrance fees, camping fees |
| U.S. Postal Service | Postage fees |
| U.S. Citizenship and Immigration Services | Fees for immigrant and naturalization benefit applications |
| USDA’s Food Safety and Inspection Service | Fees for meat, poultry, and egg products overtime inspection services |
See also
External links
Footnotes
- ↑ 1.0 1.1 Government Accountability Office, "General government > 43. Federal User Fees," accessed February 22, 2018
- ↑ The American Presidency Project, "201 - Statement by the President Upon Signing the Independent Offices Appropriation Act." accessed February 22, 2018
- ↑ 3.0 3.1 3.2 U.S. General Accounting Office, "Principles of Federal Appropriations Law," accessed February 22, 2018
- ↑ 4.0 4.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ Legal Information Institute, "31 U.S. Code § 9701 - Fees and charges for Government services and things of value," accessed February 22, 2018
- ↑ National Park Service, "Visitor Fees in the National Park System: A Legislative and Administrative History," accessed February 22, 2018
- ↑ 7.0 7.1 7.2 Government Accountability Office, "Federal User Fees: A Design Guide," accessed February 23, 2018
- ↑ Legal Information Institute, "31 U.S. Code § 9701 - Fees and charges for Government services and things of value," accessed February 23, 2018
- ↑ 9.0 9.1 U.S. Department of Agriculture—Economic Research Service, "User Fees in Federal Agencies," accessed February 23, 2018
- ↑ Congressional Budget Office, "The Growth of Federal User Charges," accessed February 23, 2018
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