industries in Puerto Rico and the Virgin Islands. It also has a provision which defines "home worker." This amendment follows closely the bill on this subject which was passed by the Senate at the last session.

OFFICE OF GOVERNMENT REPORTS

Section 7: It is recommended by the committee that the amount provided by the House for the salaries and expenses of the Office of Government Reports be increased from $500,000 to $830,000, which is the amount available to this agency for the current fiscal year.

FUNDS ALLOCATED TO FEDERAL AGENCIES

Section 10 (a): It is recommended that the amount made available for this purpose be reduced from $40,000,000 as allowed by the House to $20,000,000. It was represented to the committee that $20,000,000, which is the amount recommended by the Work Projects Administration and the Bureau of the Budget, will provide sufficient funds for undertaking projects already planned and contemplated.

EVALUATION OF SPONSORS' CONTRIBUTION

Section 10 (c). It is recommended by the committee that the following language be stricken from the resolution:

* * * and such rules and regulations shall also allow credit only to the extent that the furnishing of such contributions represents a financial burden which is undertaken by the sponsors on account of Work Projects Administration projects, or other sponsored projects *

It was represented to the committee that "financial burden" in its application may fall unequally on different sponsors. The first sentence of section 10 (c) clearly states the desire of Congress in connection with the sponsorship of non-Federal projects. The first part of the second sentence gives to the head of the agency concerned the right to prescribe rules and regulations relating to the valuation of contributions in kind by sponsors through furnishing the use of their own facilities and equipment.

LIMITATION ON CONSTRUCTION PROJECTS

Section 11: It is recommended by the committee that the following new section be added to the resolution:

SEC. 11. None of the funds made available by this joint resolution shall be expended on the construction of any building (1) the total estimated cost of which, in the case of a Federal building, exceeds $100,000, or (2) the portion of the total estimated cost of which payable from Federal funds, in the case of a non-Federal building, exceeds $100,000, unless the building is one (a) for which the project has been approved by the President on or prior to May 15, 1940, or for which an issue of bonds has been approved at an election held on or prior to such date, or (b) for the completion of which funds have been allocated and irrevocably set aside under prior relief appropriation Acts: Provided, That the provisions of this section shall not apply to any projects which have been certified by the Secretary of War or by the Secretary of the Navy as being important to the national defense.

This is a restatement of a provision carried in the current law amended by increasing the limit of cost on a Federal building from $50,000 to $100,000, and in the case of non-Federal buildings by increasing the total estimated cost payable from Federal funds from

$52,000 to $100,000. A further amendment is added exempting from provisions of this section projects determined to be of value to the national defense.

HOURS OF LABOR

Section 14 (a): It is recommended by the Committee that the following language be stricken from the resolution:

shall require a lesser number of hours of work not to exceed sixty-five hours per month

and insert in lieu thereof:

in his discretion, may require a lesser number of hours of work per month

VETERANS' PREFERENCES

Section 15 (a): It is recommended by the committee that section. 15 (a) proposed by the House be stricken from the bill and that the provisions of existing law be inserted in lieu thereof:

SEC. 15. (a) In employing or retaining in employment on Work Projects Administration work projects, preference shall be determined, as far as practicable, on the basis of relative needs and shall, where the relative needs are found to be the same, be given in the following order: (1) Veterans who have had active service in the United States Army, Navy, Marine Corps, or Coast Guard, or in some campaign or expedition in which the United States has been engaged, unmarried widows of such veterans, and wives of such veterans, as are unemployable, who are in need and are American citizens and if the income of any such person from any Government agency is less than the amount to which he or she would be entitled for work on a Work Projects Administration project, for which he or she is qualified, then he or she shall be certified for employment, and shall be assigned to work for at least a sufficient number of hours each month to bring his or her total income up to the amount he or she would receive if assigned for full-time work on such project; and (2) other American citizens, Indians and other persons owing allegiance to the United States who are in need.

SEC. 15. (a) In employing or retaining in employment on Work Projects Administration work projects, preference shall be determined, as far as practicable, on the basis of relative needs and shall, where the relative needs are found to be the same, be given in the following order: (1) Veterans of the World War and the Spanish-American War and veterans of any campaign or expedition in which the United States has been engaged (as determined on the basis of the laws administered by the Veterans' Administration) who are in need and are American citizens; and (2) other American citizens, Indians and other persons owing allegiance to the United States who are in need.

EIGHTEEN MONTHS' PROVISION

Section 15 (b). It is recommended by the committee that the following exceptions be stricken from the bill:

excepting unmarried widows of such veterans and wives of such veterans who are unemployable, and also excepting heads of families forty-five years of age or older with either a dependent spouse or one or more dependent parents or minor children.

CERTIFICATION PROCEDURE

Section 15 (e): The committee recommend the inclusion of the following new subsection:

(e) Not to exceed $5,000,000 of the appropriation for prosecution of public projects made in section 1 (a) hereof shall be available for expenditure by the Commissioner in any case he shall deem it necessary and advisable, for aiding, in such form and manner as he shall determine, States, including the District of Columbia, the Territories and possessions, or public agencies thereof, in investigating and certifying employable persons for employment on projects of the Work Projects Administration, conditioned upon the approval by the Commissioner of methods or plans for such

service: Provided, That in no case shall such aid to any State or agency exceed 33 percent of the estimated cost of such service, as determined by the Commissioner. The determinations of the Commissioner hereunder shall be final.

The effect of this amendment is to make available to the Commissioner not to exceed $5,000,000 for the purpose of assisting the States financially in providing certification machinery of a character satisfactory to the Work Projects Administration, but in no case would such assistance amount to more than 33% percent of the entire cost of such service.

It is represented to the committee that if this authority is granted in general he would require:

(1) The assurance of adequate State-wide service in determining the need and eligibility of persons who apply for project employment. (2) The maintenance of a reasonably uniform level of certification standards throughout the country, with such variations as may be necessary to meet local differences in costs and standards of living. (3) The simplification and acceleration of the procedures for investigating the need of persons, referring them to the Work Projects Administration, and certifying them as eligible for employment.

THEATER PROJECTS

Section 24: The committee has stricken from the resolution the following language:

(a) for the operation of any theater project.

This will remove the prohibition against theater projects and put them in the same category as other locally sponsored projects.

COMPETITION WITH EXISTING INDUSTRIES

Section 33: This section is amended to provide that no part of the funds appropriated in this joint resolution shall be used to purchase, establish, relocate, or expand mills, factories, or plants which manufacture or produce for sale articles, commodities, or products (other than those derived from the first processing of sweetpotatoes and naval stores products) in competition with existing industries. The amended paragraph reads as follows:

SEC. 33. No funds appropriated in this joint resolution, whether administered by the Federal Government or by the States or local governmental agencies from funds contributed in whole or in part by the Federal Government, shall be used by any Federal, State, or other agency to purchase, establish, relocate, or expand mills, factories, [stores,] or plants which would manufacture, [handle, process,] or produce for sale articles, commodities, or products (other than those derived from the first processing of sweetpotatoes and naval stores products) in competition with existing industries.

CONFIRMATION BY SENATE

Section 37: It is proposed that the following section, which is a restatement of the current law, be added to the joint resolution.

Sec. 37. Any Administrator or other officer named to have general supervision at the seat of government over the program and work contemplated under the appropriations contained in this joint resolution and receiving a salary of $5,000 or more per annum from such appropriations, and any State or regional administrator receiving a salary of $5,000 or more per annum from such appropriations (except persons now serving as such under other law) shall be appointed by the President, by and with the

advice and consent of the Senate: Provided, That the provisions of section 1761 of the Revised Statutes shall not apply to any such appointee and the salary of any person so appointed shall not be increased for a period of 6 months after confirmation.

CIVILIAN CONSERVATION CORPS

Section 38: It is recommended by the committee that the following new section authorizing training of enrollees of the Civilian Conservation Corps in noncombatant subjects essential to the operations of the Military and Naval Establishments and which would contribute materially to the interests of national defense be added to the bill:

"SEC. 38. Notwithstanding the provisions of any other law, the President is authorized, in his discretion, and under such regulations as he may prescribe, to provide within the Civilian Conservation Corps such training of enrollees therein in noncombatant subjects essential to the operations of the Military and Naval Establishments as he considers may contribute materially to the interests of the national defense. Such subjects may include, but are not restricted to, cooking, baking, first aid to the injured, operation and maintenance of motor vehicles, road and bridge construction and maintenance, photography, signal communications, and other matters incident to the successful conduct of military and naval activities: Provided, That the appropriations under the heading "Civilian Conservation Corps" contained in the Federal Security Agency Appropriation Act, 1941, shall be available for carrying out the purposes of this section, and the limitations and conditions on the expenditure of such funds are hereby waived to the extent necessary to accomplish the purposes of this section: Provided further, That no person shall be excluded from the training program authorized by this section on account of race, color, or creed.

AMENDMENT TO THE TENNESSEE VALLEY AUTHORITY ACT OF 1933

Section 39: The following amendment in the form of a new section is recommended by the Committee. This amendment authorizes the Tennessee Valley Authority to make payments to certain States and local governments in lieu of taxation from the gross proceeds derived by the Corporation.

Sec. 38. Section 13 of the Tennessee Valley Authority Act of 1933 is hereby amended to read as follows:

"Sec. 13. In order to render financial assistance to those States and local governments in which the power operations of the Corporation are carried on and in which the Corporation has acquired properties previously subject to State and local taxation, the board is authorized and directed to pay to said States, and the counties therein, for each fiscal year, beginning July 1, 1940, the following percentages of the gross proceeds derived from the sale of power by the Corporation for the preceding fiscal year as hereinafter provided, together with such additional amounts as may be payable pursuant to the provisions hereinafter set forth, said payments to constitute a charge against the power operations of the Corporation: For the fiscal year (beginning July 1) 1940, 10 per centum; 1941, 9 per centum; 1942, 8 per centum; 1943, 71⁄2 per centum; 1944, 7 per centum; 1945; 61⁄2 per centum; 1946, 6 per centum; 1947, 52 per centum; 1948 and each fiscal year thereafter, 5 per centum. 'Gross proceeds', as used in this section is defined as the total gross proceeds derived by the Corporation from the sale of power for the preceding fiscal year, excluding power used by the Corporation or sold or delivered to any other department or agency of the Government of the United States for any purpose other than the resale thereof. The payments herein authorized are in lieu of taxation, and the Corporation, its property, franchises and income, are hereby expressly exempted from taxation in any manner or form by any State, county, municipality, or any subdivision or district thereof.

"The payment for each fiscal year shall be apportioned among said States in the following manner: One-half of said payment shall be apportioned by paying to each State the percentage thereof which the gross proceeds of the power sales by the Corporation within said State during the preceding fiscal year bears to the total gross proceeds from all power sales by the Corporation during the preceding fiscal year; the remaining one-half of said payment shall be apportioned by paying to each State the percentage thereof which the book value of the power property held by the Corporation within said State at the end of the preceding fiscal year bears to the total book value of all such property held by the Corporation on the same date. The book value of power property shall

include that portion of the investment allocated or estimated to be allocable to power: Provided, That the minimum annual payment to each State (including payments to counties therein) shall not be less than an amount equal to the two-year average of the State and local ad valorem property taxes levied against power property purchased and operated by the Corporation in said State and against that portion of reservoir lands related to dams constructed by or on behalf of the United States Government and held or operated by the Corporation and allocated or estimated to be allocable to power. The said two-year average shall be calculated for the last two tax years during which said property was privately owned and operated or said land was privately owned: Provided further, That the minimum annual payment to each State in which the Corporation owns and operates power property (including payments to counties therein) shall not be less than $10,000 in any case: Provided further, That the Corporation shall pay directly to the respective counties the two-year average of county ad valorem property taxes (including taxes levied by taxing districts within the respective counties) upon power property and reservoir lands allocable to power, determined as above provided, and all payments to any such county within a State shall be deducted from the payment otherwise due to such State under the provisions of this section. The determination of the board of the amounts due hereunder to the respective States and counties shall be final.

"The payments above provided shall in each case be made to the State or county in equal monthly installments beginning not later than July 31, 1940.

"Nothing herein shall be construed to limit the authority of the Corporation, in its contracts for the sale of power to municipalities, to permit or provide for the resale of power at rates which may include an amount to cover tax-equivalent payments to the municipality in lieu of State, county, and municipal taxes upon any distribution system or property owned by the municipality, or any agency thereof, conditioned upon a proper distribution by the municipality of any amounts collected by it in lieu of State or county taxes upon any such distribution system or property; it being the intention of Congress that either the municipality or the State in which the municipality is situated shall provide for the proper distribution to the State and county of any portion of tax equivalent so collected by the municipality in lieu of State or county taxes upon any such distribution system or property.

"The Corporation shall, not later than January 1, 1945, submit to the Congress a report on the operation of the provisions of this section, including a statement of the distribution to the various States and counties hereunder; the effect of the operation of the provisions of this section on State and local finances; an appraisal of the benefits of the program of the Corporation to the States and counties receiving payments hereunder, and the effect of such benefits in increasing taxable values within such States and counties; and such other data, information, and recommendations as may be pertinent to future legislation."