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The original documents are located in Box 52, folder "8/6/76 HR1558 Relief of Dr Gernot
Winkler" of the White House Records Office: Legislation Case Files at the Gerald R. Ford
Presidential Library
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
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domain. The copyrights to materials written by other individuals or organizations are presumed to
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copyright claim, please contact the Gerald R. Ford Presidential Library.
Exact duplicates within this folder were not digitized.
Digitized from Box 52 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library
APPROVID
94/9/88
ACTION
AUG 6 - 1976
THE WHITE HOUSE
Last Day: August 10
WASHINGTON
August 4, 1976
MEMORANDUM FOR
THE PRESIDENT
Posted
FROM:
JIM CANNON
8/9/76
SUBJECT:
H.R. 1558 - Relief of Dr. Gernot
Winkler
archives
Attached for your consideration is H.R. 1558, sponsored by
8/9/76
Representative Gude.
The enrolled bill would relieve Dr. Gernot Winkler of
liability to the United States of $3,908.90 for expenses
incurred in his transfer from one duty station to another.
A discussion of the provisions of the enrolled bill is
provided in OMB's enrolled bill report at Tab A.
OMB, Max Friedersdorf, Counsel's Office (Lazarus) and I
recommend approval of the enrolled bill.
RECOMMENDATION
That you sign H.R. 1558 at Tab B.
SEAL R. FORD
OR THE
RESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE
UNITED
OFFICE OF MANAGEMENT AND BUDGET
STATE
WASHINGTON, D.C. 20503
AUG 3 1976
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 1558 - Relief of Dr. Gernot Winkler
Sponsor - Rep. Gude (R) Maryland
Last Day for Action
August 10, 1976 - Tuesday
Purpose
To relieve Dr. Gernot Winkler of liability to the United States
of $3,908.90 for expenses incurred in his transfer from one duty
station to another.
Agency Recommendations
Office of Management and Budget
Approval
General Services Administration
Approval
Department of the Navy
No objection
Discussion
The enrolled bill would relieve Doctor Gernot M. R. Winkler of
a $3,908.90 liability to the United States for real estate expenses
incurred in the sale of his residence in New Jersey and the
purchase of a new residence in Maryland.
Section 5724a (a) (4) of title 5, U.S.C. provides for the reimburse-
ment of expenses incurred by certain Government employees in the
sale of a residence at an old duty station and the purchase of a
home at a new official station. However, Government regulations in
effect from October 1966 permitted such reimbursement only if the
settlement dates for the sale and purchase transactions were not
later than one year after the date the employee reported for duty
2
at his new duty station. These regulations, which were set forth
in Bureau of the Budget Circular A-56, also provided that an
extension of the one year time limit could only be granted if
settlement were necessarily delayed because of litigation.
In October 1966, Dr. Winkler was transferred from a position
with the Army Department in New Jersey to a position with the
Navy Department in Washington, D.C. Because he was having diffi-
culty in selling his house in New Jersey, he inquired, when he
reported for duty in Washington on October 24, 1966, whether he
would have to move within a specific length of time. His Navy
supervisor assured him he had two years within which to sell and
still receive reimbursement.
In August 1967, Dr. Winkler first learned of the existence of
Budget Circular A-56 and of the one year time limitation. He
promptly requested and was granted an extension of that limitation
by the Superintendent of the Naval Observatory. This extension,
however, was erroneously granted because the delay in settlement,
which ultimately occurred in December 1967, 14 months after the
effective date of his transfer, was not caused by litigation.
Thus, the subsequent reimbursement made to Dr. Winkler of
$3,908.90 in expenses he had incurred was also an erroneous action.
In its views letter, the Department of the Navy notes that although
it is "generally reluctant to support legislation which would have the
effect of waiving regulations for the benefit of an individual
employee, Dr. Winkler in good faith relied to his detriment upon
an erroneous extension by his Superintendent of the Naval Observa-
tory of the time period for filing a reimbursement claim."
James m. M. Frey
Director for
Legislative Reference
Enclosures
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date: August 3
Time: 445pm
FOR ACTION:
Lumn.,May Lunn May
CC (for information): Jack Marsh -
Max Friedersdorf
Jim Cavanaugh
Ken Lazarus an
Ed Schmults
FROM THE STAFF SECRETARY
DUE: Date: August 4
Time: 500pm
SUBJECT:
H.R. 1558-relief of Dr. Gernot Winkeer
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
x For Your Comments
Draft Remarks
REMARKS:
please return to judy johnston, ground floor west wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
K. R. COLE, JR.
telephone the Staff Secretary immediately
For the President
UNITED STATES OF AMERICA
*
*
GENERAL SERVICES ADMINISTRATION
#
*
WASHINGTON, DC 20405
*
*
-
GENERAL SERVICES
#
ADMINIS TRATION *
# * *
July 30, 1976
Honorable James T. Lynn
Director, Office of
Management and Budget
Washington, D.C. 20503
Dear Mr. Lynn:
By letter of July 28, 1976, you requested the views of the General
Services Administration (GSA) on enrolled bill H.R. 1558, "For
the relief of Doctor Gernot M. R. Winkler."
GSA supports enactment of the enrolled bill.
Sincerely,
Ten Chank
TERRY CHAMBERS
Deputy Administrator
Keep Freedom in Your Future With U.S. Savings Bonds
DEEART OF DEFENST DE
DEPARTMENT OF THE NAVY
OFFICE OF THE SECRETARY
WASHINGTON. D. C. 20350
UNITED AMERICA
July 30, 1976
Dear Mr. Lynn:
Your transmittal sheet dated July 28, 1976, enclosing a facsimile of an
enrolled bill of Congress, H.R. 1558, a bill "For the relief of Dr. Gernot
M. R. Winkler," and requesting comment of the Department of the Navy has
been received.
The purpose of H.R. 1558 is to relieve Dr. Gernot M. R. Winkler of liability
to the United States in the amount of $3,908.90, "such sum representing
certain real estate expenses incurred in the sale of his residence in Long
Branch, New Jersey, and the purchase of a new residence in Potomac, Maryland,
incident to his transfer for employment as Director of the Time Service
Division of the United States Naval Observatory, Washington, D. C."
Dr. Winkler would normally have qualified under section 5724a (a) (4) of
title 5, United States Code for the reimbursement of expenses incurred in
the sale of a residence at his old duty station and purchase of a home at
his new official station. As a condition for reimbursement, Bureau of
the Budget Circular A-56, dated October 12, 1966, requires that the settle-
ment dates for the sale and purchase transactions be not later than one
year after the date on which the employee reported for duty at the new
official station. No extension of time is authorized unless the settle-
ment is necessarily delayed because of litigation. When Dr. Winkler
reported to Washington on October 24, 1966, he inquired whether he would
have to move within a specific length of time. He was informed that a
two year period was considered reasonable. In August 1967, Dr. Winkler
first heard unofficially about the existence of Bureau of the Budget
Circular A-56 containing the one year limitation. Dr. Winkler immediately
asked the Superintendent of the Observatory for an extension. The exten-
sion was granted orally by the Superintendent of the Observatory, and
confirmed in writing by the successor Superintendent in October 1970.
Because the prospective purchaser had difficulty meeting the contract
terms, settlement was delayed until December 1967, 14 months after Dr.
Winkler transferred to Washington. At that time Dr. Winkler erroneously
was paid $3,908.90 as reimbursement for the expenses he incurred.
The Department of the Navy proposed report supporting the enactment of
H.R. 1558, subject to an amendment, was cleared by you on October 15, 1973.
H.R. 1558 was subsequently passed with the amendment recommended by the
Department of the Navy.
Although the Department of the Navy is generally reluctant to support
legislation which would have the effect of waiving regulations for the
benefit of an individual employee, Dr. Winkler in good faith relied to his
detriment upon an erroneous extension by his Superintendent of the Naval
REVOLUTION Observatory of the time period for filing a reimbursement claim.
AMERICAN
BICENTENNIAL
1776-1976
Accordingly, the Department of the Navy has no objection to the approval
of the enrolled enactment, H.R. 1558.
Sincerely yours,
Bill
J. William Middendorf II
Secretary of the Navy
Honorable James T. Lynn
Director, Office of Management
and Budget
Washington, D. C. 20350
2
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date: August 3
Time:
445pm
FOR ACTION: Lynn May
CC (for information): Jack Marsh
Max Friedersdorf
Jim Cavanaugh
Ken Lazarus
Ed Schmults
FROM THE STAFF SECRETARY
DUE: Date: August 4
Time: 500pm
SUBJECT:
H.R. 1558-relief of Dr. Gernot Winkler
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X For Your Comments
Draft Remarks
REMARKS:
please return to judy johnston, ground floor west wing
No objection -- Ken Lazarus 8/4/76
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
James M. Cannon
telephone the Staff Secretary immediately.
For the President
THE WHITE HOUSE
WASHINGTON
August 4, 1976
MEMORANDUM FOR:
JIM CAVANAUGH
FROM:
MAX L. FRIEDERSDORF m.f.
SUBJECT:
H.R. 1558 - relief of Dr. Gernot Winkler
The Office of Legislative Affairs concurs with the agencies
that the bill be signed.
Attachments
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
8-3-7cpm.
AUG S 1976
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 1558 - Relief of Dr. Gernot Winkler
Sponsor - Rep. Gude (R) Maryland
Last Day for Action
August 10, 1976 - Tuesday
Purpose
To relieve Dr. Gernot Winkler of liability to the United States
of $3,908.90 for expenses incurred in his transfer from one duty
station to another.
Agency Recommendations
Office of Management and Budget
Approval
General Services Administration
Approval
Department of the Navy
No objection
Discussion
The enrolled bill would relieve Doctor Gernot M. R. Winkler of
a $3,908.90 liability to the United States for real estate expenses
incurred in the sale of his residence in New Jersey and the
purchase of a new residence in Maryland.
Section 5724a (a) (4) of title 5, U.S.C. provides for the reimburse-
ment of expenses incurred by certain Government employees in the
sale of a residence at an old duty station and the purchase of a
home at a new official station. However, Government regulations in
effect from October 1966 permitted such reimbursement only if the
settlement dates for the sale and purchase transactions were not
later than one year after the date the employee reported for duty
Attached document was not scanned because it is duplicated elsewhere in the document
Calendar No. 987
94TH CONGRESS
SENATE
REPORT
2d Session
No. 94-1051
DR. GERNOT M. R. WINKLER
JULY 23, 1976.-Ordered to be printed
Mr. MATHIAS, from the Committee on the Judiciary,
submitted the following
REPORT
[To accompany H.R. 1558]
The Committee on the Judiciary, to which was referred the bill
(H.R. 1558), for the relief of Doctor Gernot M. R. Winkler, having
considered the same, reports favorably thereon without amendment
and recommends that the bill do pass.
PURPOSE
The purpose of the proposed legislation is to relieve Dr. Gernot
M. R. Winkler of Potomac, Md., of liability to the United States of
$3,908.90, representing certain real estate expenses incurred in the sale
of his residence in Long Branch, N.J., and the purchase of a new
residence in Potomac, Md., incident to his transfer for employment
as Director of the Time Service Division of the U.S. Naval Observa-
tory, Washington, D.C. The bill would also authorize refund of any
amounts paid or withheld from Dr. Winkler for the liability stated
in the bill.
STATEMENT
The facts of the case are contained in the House Report as follows:
The Department of the Navy in its report to the committee
states that it has no objection to the bill.
In its report the Department of the Navy stated that Dr.
Winkler would normally have qualified for reimbursement
for certain expenses under section 5724a (a) (4) of title 5,
United States Code. This section provides for the reimburse-
ment of the sale and purchase expenses incurred by certain
Government employees when they sell their residence at their
old duty station and purchase a home at a new official station.
As a condition for reimbursement, Bureau of the Budget
57-007
2
3
Circular A-56, dated October 12, 1966, requires that the settle-
DEPARTMENT OF THE NAVY,
ment dates for the sale and purchase transactions be not later
OFFICE OF LEGISLATIVE AFFAIRS,
than 1 year after the date on which the employee reported for
Washington, D.C., April 21, 1975.
duty at the new official station. No extension of time is
authorized unless the settlement is necessarily delayed be-
Hon. PETER W. RODINO, Jr.,
Chairman, Committee on the Judiciary, House of Representatives,
cause of litigation. Dr. Winkler was transferred from a posi-
tion with the Department of the Army in New Jersey to a
Washington, D.C.
position with the Department of the Navy in Washington,
DEAR MR. CHAIRMAN: Reference is made to your letter to the Secre-
D.C., on October 24, 1966, and he left his family in New
tary of the Navy requesting comment on H.R. 1558, a bill "For the
Jersey pending sale of his home. When he reported to Wash-
relief of Dr. Gernot M. R. Winkler."
ington, he inquired whether he would have to move within
H.R. 1558 would relieve Dr. Gernot M. R. Winkler of liability to the
a specific length of time. He was informed that a 2-year
United States in the amount of $3,908.90, "such sum representing cer-
period was considered reasonable. He listed his New Jersey
tain real estate expenses incurred in the sale of his residence in Long
home for sale immediately, and pursued the matter actively
Branch, N.J., and the purchase of a new residence in Potomac, Md.,
because he did not wish to continue commuting to New Jersey
incident to his transfer for employment as Director of the Time Service
on weekends and residing in temporary quarters in Washing-
Division of the U.S. Naval Observatory, Washington, D.C." Addi-
ton. After several listings of the property, a sales contract
tionally, the bill would authorize the Secretary of the Treasury to pay
was signed in August 1967. Because the prospective pur-
Dr. Winkler the sum of $800 in full settlement of his claim against
chaser had difficulty meeting the contract terms, settlement
the United States for reimbursement of a loan origination fee in-
was delayed until December 1967, 14 months after Dr. Wink-
curred in connection with the purchase of a new residence incident to
ler transferred to Washington. At that time Dr. Winkler
his transfer to Washington, D.C.
erroneously was paid $3,908.90 as reimbursement for the ex-
The records of this Department indicate that Dr. Winkler would
penses he incurred. In August 1967, Dr. Winkler first heard
normally have qualified for reimbursement for certain expenses under
unofficially about the existence of Bureau of the Budget Cir-
section 5724(a) (4) of title 5, United States Code. This section pro-
cular A-56 containing the 1-year limitation. Dr. Winkler
vides for the reimbursement of the sale and purchase expenses in-
immediately asked the Superintendent of the Observatory
curred by certain Government employees when they sell their residence
for an extension. The extension was granted orally by the
at their old duty station and purchase a home at a new official station.
Superintendent of the Observatory, and confirmed in writing
As a condition for reimbursement, Bureau of the Budget Circular
by the successor Superintendent in October 1970.
A-56, dated October 12, 1966, requires that the settlement dates for the
In its report, the Department of the Navy noted the pro-
sale and purchase transactions be not later than one year after the date
vision of the original bill providing for an additional pay-
on which the employee reported for duty at the new official station. No
ment of $800 for a loan origination fee and suggested an
extension of time is authorized unless the settlement is necessarily de-
amendment reducing that amount. The committee has con-
layed because of litigation. Dr. Winkler was transferred from a posi-
sidered this aspect of the bill and feels that the matter should
tion with the Department of the Army in New Jersey to a position
be equitably settled by limiting relief to a release of the out-
with the Department of the Navy in Washington, D.C., on October 24,
standing indebtedness of $3,908.90. As is indicated in the
1966, and he left his family in New Jersey pending sale of his home.
departmental report, Dr. Winkler relied in good faith on the
When he reported to Washington, he inquired whether he would have
Superintendent's erroneous extension of the time period and
to move within a specific length of time. He was informed that a 2-
the relief provided in the amended bill as reported by the
year period was considered reasonable. He listed his New Jersey home
committee would have the effect of placing the employee in
for sale immediately, and pursued the matter actively because he did
the same position as he would have been in had that extension
not wish to continue commuting to New Jersey on weekends and resid-
been effective. It is recommended that the amended bill be
ing in temporary quarters in Washington. After several listings of the
considered favorably.
property, a sales contract was signed in August 1967. Because the pro-
H.R. 1558 was subsequently approved by the House of Represent-
spective purchaser had difficulty meeting the contract terms, settle-
atives on October 7, 1975, and referred to the Senate Committee on the
ment was delayed until December 1967, 14 months after Dr. Winkler
Judiciary. In agreement with the views of the House of Represent-
transferred to Washington. At that time Dr. Winkler's erroneously
atives, the Committee recommends that the bill be favorably
was paid $3,908.90 as reimbursement for the expenses he incurred. In
considered.
August 1967, Dr. Winkler first heard unofficially about the existence
Attached to and made a part of this report are the reports from the
of Bureau of the Budget Circular A-56 containing the 1-year limita-
Department of the Navy and the Comptroller General's Office regard-
tion. Dr. Winkler immediately asked the Superintendent of the Ob-
ing H.R. 1558.
servatory for an extension. The extension was granted orally by the
Superintendent of the Observatory, and confirmed in writing by the
successor Superintendent in October 1970.
S.R. 1051
S.R. 1051
4
5
In addition to the $3,908.90 sale and purchase expenses, Dr. Winkler
of any amounts paid by him or withheld from sums otherwise due him
paid a loan origination fee of $800 as part of the closing fees for his
with respect to the indebtedness set forth in section 1 of the bill and
home in Maryland. Paragraph 4.2d of Bureau of the Budget Circular
(2) the sum of $800 in full settlement of his claim against the United
A-56, dated October 12, 1966, listed fees for loan applications, lender's
States for reimbursement of a loan origination fee incurred in con-
loan origination, etc., as "reimbursable to the extent such costs are
nection with the purchase of a new residence incident to transfer for
customarily paid by the seller at the location of the old official station
employment as set forth in section 1 of the bill.
or by the purchaser at the location of the new official station
It
Dr. Winkler's case in part has been before our Office. A review of
is the opinion of this Department that, but for the fact that Dr.
our records shows that he was transferred from Fort Monmouth, New
Winkler's claim did not meet the time requirement, he would have been
Jersey, to Washington, D.C., as an employee of the Department of the
entitled to reimbursement for $400 of the $800 loan origination fee.
Navy. He reported for duty in Washington on October 24, 1966. He
In 1967 buyers in the Potomac, Md., area were customarily being
was reimbursed $3,908.90 by his administrative office for real estate
charged a 1 percent loan origination fee. Since Dr. Winkler's loan was
expenses arising from the transfer-$2,800 incident to the sale of his
for $40,000, $400 would have been reimbursable, but for the time delay.
residence in New Jersey and $1,109.90 incident to the purchase of a
It is noted that BUBUD Circular A-56 was amended June 26, 1969,
residence in Potomac, Maryland. Settlement dates on the two transac-
to prohibit reimbursement of loan origination fees.
tions were December 29 and December 8, 1967, respectively. For the
Although the Department of the Navy is generally reluctant to sup-
reason discussed below none of the $3,908.90 should have been paid to
port legislation which would have the effect of waiving regulations for
Dr. Winkler and we requested that steps be taken to recover the
the benefit of an individual employee, the Department would not
amount thus overpaid.
object if Congress enacted H.R. 1558 with an amendment changing the
In order to qualify for reimbursement of real estate expenses in-
$800 figure in line 11, page 2, to $400, since Dr. Winkler in good faith
cident to a transfer, the applicable regulations-section 4.1d of Bureau
relied to his detriment upon the Superintendent's erroneous extension
of the Budget Circular No. A-56, Revised, October 12, 1966-required
of the time period.
that the settlement dates for sale and purchase transactions be not
The Office of Management and Budget advises that, from the stand-
later than one year after the date the employee reported for duty at
point of the administration's program, there is no objection to the
his new official station. The only exception at that time to the above
presentation of this report for the consideration of the committee.
requirement was that extensions of time could be authorized by the
For the Secretary of the Navy.
head of a department when settlement was necessarily delayed because
Sincerely yours,
of litigation. Apparently Dr. Winkler was not able to show that settle-
E. H. WILLETT,
ment on the sale of his old residence or the purchase of his new resi-
Captain, U.S. Navy Deputy Chief.
dence was in fact delayed by litigation.
We do not favor legislation which is preferential in nature, such as
here, since there doubtless are many other employees in the Federal
service who have been disallowed reimbursement of relocation expenses
COMPTROLLER GENERAL OF THE UNITED STATES,
under similar circumstances. However, should the legislation receive
Washington, D.C., July 26, 1973.
favorable consideration, we recommend that the bill be amended as set
B-169862.
forth below.
Hon. PETER W. RODINO, Jr.,
The administrative office in its original adjudication of the claim
Chairman, Committee on the Judiciary, House of Representatives,
involving the purchase of the Maryland residence disallowed an item
Washington, D.C.
of $800 identified as a processing fee of 2 percent of the original
DEAR MR. CHAIRMAN In your letter of June 28, 1973, you requested
amount of the $40,000 loan. The case came before our Office as a sup-
our views on H.R. 8796, a bill "For the relief of Doctor Gernot M. R.
plemental claim by Dr. Winkler for the $800 item identified as a loan
Winkler."
origination fee. Since the administrative report on the item states the
Section 1 of the bill would relieve Doctor Winkler of Potomac, Md.,
customary charge within the area at the time to be 1 percent of the
of liability to the United States in the amount of $3,908.90, represent-
original amount of the loan, under 5 U.S.C. 5724a (a) (4) which pro-
ing certain real estate expenses incurred in the sale of his residence in
vides that reimbursement for expenses incurred in the purchase or
Long Branch, N.J., and the purchase of a residence in Potomac, Md.,
sale of a residence "may not exceed those customarily charged in the
incident to his transfer for employment as Director of the Time Serv-
locality where the residence is located," only $400 of the amount
ice Division of the U.S. Naval Observatory, Washington, District of
claimed could be allowed. Accordingly, we recommend that the item
Columbia. In the audit and settlement of the accounts of any certifying
of $800 proposed to be paid under section 2a (2) of the bill be changed
or disbursing officer of the United States, credit would be given for
to $400.
amounts for which liability is relieved.
A review of Dr. Winkler's case shows that he sold his residence at
Section 2 of the bill would authorize and direct the Secretary of the
his former duty station for $28,000 and he paid an 11 percent broker's
Treasury to pay to Dr. Winkler-(1) an amount equal to the aggregate
fee or real estate commission amounting to $3,080. He claimed reim-
S.R. 1051
S.R. 1051
6
bursement for and was paid $2,800 or 10 percent of the sale price of
a residence at the old official station. The record, however, shows that
the commission on sale of a residence at the old official station involved
was customarily 6 percent and under the limitation of 5 U.S.C. 5724
(a) (4) payment in excess of 6 percent or $1,680 is not authorized.
Accordingly, we suggest that the proposed relief in the total amount
of $3,908.90 be reduced by $1,120 representing the difference between
$2,800, the broker's fee paid, and $1,680, the allowable broker's fee.
Sincerely yours,
E. H. MORSE, Jr.
(For the Comptroller General
of the United States).
S.R. 1051
94TH CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
1st Session
No. 94-429
DR. GERNOT M. R. WINKLER
July 31, 1975.-Committed to the Committee of the Whole House and
ordered to be printed
Mr. MOORHEAD of California, from the Committee on the Judiciary,
submitted the following
REPORT
[To accompany H.R. 1558]
The Committee on the Judiciary, to whom was referred the bill
(H.R. 1558) for the relief of Doctor Gernot M. R. Winkler, having
considered the same, report favorably thereon with amendments and
recommend that the bill as amended do pass.
The amendments are as follows
Page 2, line 6: After "Winkler", strike the dash.
Page 2: Strike all of lines 7 through 15, and insert
an amount equal to the aggregate of the amounts paid by
him, or withheld from sums otherwise due him, with respect
to the indebtedness to the United States specified in the first
section of this Act.
PURPOSE
The purpose of the proposed legislation, as amended, is to relieve
Doctor Gernot M. R. Winkler of Potomac, Md., of liability to the
United States of $3,908.90, representing certain real estate expenses
incurred in the sale of his residence in Long Branch, N.J., and the
purchase of a new residence in Potomac, Md., incident to his transfer
for employment as Director of the Time Service Division of the U.S.
Naval Observatory, Washington, District of Columbia. The bill would
also authorize refund of any amounts paid or withheld from Dr.
Winkler for the liability stated in the bill.
STATEMENT
The Department of the Navy in its report to the committee states
that is has no objection to the bill.
In its report the Department of the Navy stated that Dr. Winkler
would normally have qualified for reimbursement for certain expenses
under section 5724a (a) (4) of title 5, United States Code. This section
provides for the reimbursement of the sale and purchase expenses in-
curred by certain Government employees when they sell their residence
at their old duty station and purchase a home at a new official station.
As a condition for reimbursement, Bureau of the Budget Circular
A-56, dated October 12, 1966, requires that the settlement dates for
the sale and purchase transactions be not later than 1 year after the
date on which the employee reported for duty at the new official sta-
57-007
2
3
tion. No extension of time is authorized unless the settlement is neces-
the United States for reimbursement of a loan origination fee in-
sarily delayed because of litigation. Dr. Winkler was transferred from
curred in connection with the purchase of a new residence incident to
a position with the Department of the Army in New Jersey to a posi-
his transfer to Washington, D.C.
tion with the Department of the Navy in Washington, D.C., on October
The records of this Department indicate that Dr. Winkler would
24, 1966, and he left his family in New Jersey pending sale of his home.
normally have qualified for reimbursement for certain expenses under
When he reported to Washington, he inquired whether he would have
section 5724a (a) (4) of title 5, United States Code. This section pro-
to move within a specific length of time. He was informed that a 2-
vides for the reimbursement of the sale and purchase expenses incurred
year period was considered reasonable. He listed his New Jersey home
by certain Government employees when they sell their residence at
for sale immediately, and pursued the matter actively because he did
their old duty station and purchase a home at a new official station. As
not wish to continue commuting to New Jersey on weekends and re-
a condition for reimbursement, Bureau of the Budget Circular A-56,
siding in temporary quarters in Washington. After several listings of
dated October 12, 1966, requires that the settlement dates for the sale
the property, a sales contract was signed in August 1967. Because
and purchase transactions be not later than one year after the date on
the prospective purchaser had difficulty meeting the contract terms,
which the employee reported for duty at the new official station. No
settlement was delayed until December 1967, 14 months after Dr.
extension of time is authorized unless the settlement is necessarily de-
Winkler transferred to Washington. At that time Dr. Winkler
layed because of litigation. Dr. Winkler was transferred from a posi-
erroneously was paid $3,908.90 as reimbursement for the expenses
tion with the Department of the Army in New Jersey to a position
he incurred. In August 1967, Dr. Winkler first heard unofficially about
with the Department of the Navy in Washington, D.C., on October 24,
the existence of Bureau of the Budget Circular A-56 containing the
1966, and he left his family in New Jersey pending sale of his home.
1-year limitation. Dr. Winkler immediately asked the Superintendent
When he reported to Washington, he inquired whether he would have
of the Observatory for an extension. The extension was granted orally
to move within- a specific length of time. He was informed that a 2-
by the Superintendent of the Observatory, and confirmed in writing
year period was considered reasonable. He listed his New Jersey home
by the successor Superintendent in October 1970.
for sale immediately, and pursued the matter actively because he did
In its report, the Department of the Navy noted the provision of the
not wish to continue commuting to New Jersey on weekends and resid-
original bill providing for an additional payment of $800 for a loan
ing in temporary quarters in Washington. After several listings of the
origination fee and suggested an amendment reducing that amount.
property, a sales contract was signed in August 1967. Because the pro-
The committee has considered this aspect of the bill and feels that the
spective purchaser had difficulty meeting the contract terms, settlement
matter should be equitably settled by limiting relief to a release of the
was delayed until December 1967, 14 months after Dr. Winkler trans-
outstanding indebtedness of $3,908.90. As is indicated in the depart-
ferred to Washington. At that time Dr. Winkler erroneously was paid
mental report, Dr. Winkler relied in good faith on the Superintend-
$3,908.90 as reimbursement for the expenses he incurred. In August
ent's erroneous extension of the time period and the relief provided in
1967, Dr. Winkler first heard unofficially about the existence of Bureau
the amended bill as reported by the committee would have the effect
of the Budget Circular A-56 containing the 1-year limitation. Dr.
of placing the employee in the same position as he would have been
Winkler immediately asked the Superintendent of the Observatory
in had that extension been effective. It is recommended that the
for an extension. The extension was granted orally by the Super-
amended bill be considered favorably.
intendent of the Observatory, and confirmed in writing by the succes-
DEPARTMENT OF THE NAVY,
sor Superintendent in October 1970.
OFFICE OF LEGISLATIVE AFFAIRS,
In addition to the $3,908.90 sale and purchase expenses, Dr. Winkler
Washington, D.C., pril 21, 1975.
paid a loan origination fee of $800 as part of the closing fees for his
Hon. PETER W. RODINO, Jr.
home in Maryland. Paragraph 4.2d of Bureau of the Budget Circular
Chairman, Committee on the Judiciary, House of Representatives,
A-56, dated October 12, 1966, listed fees for loan applications, lender's
Washington, D.C.
loan origination, etc., as "reimbursable to the extent such costs are
DEAR MR. CHAIRMAN Reference is made to your letter to the Secre-
customarily paid by the seller at the location of the old official station
or by the purchaser at the location of the new official station
" It
tary of the Navy requesting comment on H.R. 1558, a bill "For the
relief of Dr. Gernot M. R. Winkler."
is the opinion of this Department that, but for the fact that Dr.
Winkler's claim did not meet the time requirement, he would have been
H.R. 1558 would relieve Dr. Gernot M. R. Winkler of liability to the
United States in the amount of $3,908.90, "such sum representing cer-
entitled to reimbursement for $400 of the $800 loan origination fee.
tain real estate expenses incurred in the sale of his residence in Long
In 1967 buyers in the Potomac, Md., area were customarily being
charged a 1 percent loan origination fee. Since Dr. Winkler's loan was
Branch, N.J., and the purchase of a new residence in Potomac, Md.,
incident to his transfer for employment as Director of the Time Service
for $40,000, $400 would have been reimbursable, but for the time delay.
Division of the U.S. Naval Observatory, Washington, D.C." Addi-
It is noted that BUBUD Circular A-56 was amended June 26, 1969,
to prohibit reimbursement of loan origination fees.
tionally, the bill would authorize the Secretary of the Treasury to pay
Dr. Winkler the sum of $800 in full settlement of his claim against
Although the Department of the Navy is generally reluctant to sup-
port legislation which would have the effect of waiving regulations for
H.R. 429
H.R. 429
4
5
the benefit of an individual employee, the Department would not object
of the Budget Circular No. A-56, Revised, October 12, 1966-required
if Congress enacted H.R. 1558 with an amendment changing the $800
that the settlement dates for sale and purchase transactions be not
figure in line 11, page 2, to $400, since Dr. Winkler in good faith relied
later than one year after the date the employee reported for duty at
to his detriment upon the Superintendent's erroneous extension of the
his new official station. The only exception at that time to the above
time period.
requirement was that extensions of time could be authorized by the
The Office of Management and Budget advises that, from the stand-
head of a department when settlement was necessarily delayed because
point of the administration's program, there is no objection to the
of litigation. Apparently Dr. Winkler was not able to show that settle-
presentation of this report for the consideration of the committee.
ment on the sale of his old residence or the purchase of his new residence
For the Secretary of the Navy.
was in fact delayed by litigation.
Sincerely yours,
We do not favor legislation which is preferential in nature, such as
E. H. WILLETT,
here, since there doubtless are many other employees in the Federal
Captain, U.S. Navy Deputy Chief.
service who have been disallowed reimbursement of relocation expenses
under similar circumstances. However, should the legislation receive
COMPTROLLER GENERAL OF THE UNITED STATES,
favorable consideration, we recommend that the bill be amended as set
Washington, D.C., July 26, 1973.
forth below.
B-169862.
The administrative office in its original adjudication of the claim
Hon. PETER W. RODINO, Jr.,
involving the purchase of the Maryland residence disallowed an item
Chairman, Committee on the Judiciary, House of Representatives,
of $800 identified as a processing fee of 2 percent of the original
Washington, D.C.
amount of the $40,000 loan. The case came before our Office as a
DEAR MR. CHAIRMAN: In your letter of June 28, 1973, you requested
supplemental claim by Dr. Winkler for the $800 item identified as a
our views on H.R. 8796, a bill "For the relief of Doctor Gernot M. R.
loan origination fee. Since the administrative report on the item states
Winkler."
the customary charge within the area at the time to be 1 percent of the
Section 1 of the bill would relieve Doctor Winkler of Potomac, Md.,
original amount of the loan, under 5 U.S.C. 5724a (a) (4) which pro-
of liability to the United States in the amount of $3,908.90, represent-
vides that reimbursement for expenses incurred in the purchase or
ing certain real estate expenses incurred in the sale of his residence in
sale of a residence "may not exceed those customarily charged in the
Long Branch, N.J., and the purchase of a residence in Potomac, Md.,
locality where the residence is located," only $400 of the amount
incident to his transfer for employment as Director of the Time Serv-
claimed could be allowed. Accordingly, we recommend that the item
ice Division of the U.S. Naval Observatory, Washington, District of
of $800 proposed to be paid under section 2a (2) of the bill be changed
Columbia. In the audit and settlement of the accounts of any certifying
to $400.
or disbursing officer of the United States, credit would be given for
A review of Dr. Winkler's case shows that he sold his residence at
amounts for which liability is relieved.
his former duty station for $28,000 and he paid an 11 percent broker's
Section 2 of the bill would authorize and direct the Secretary of the
fee or real estate commission amounting to $3,080. He claimed reim-
Treasury to pay to Dr. Winkler-(1) an amount equal to the aggregate
bursement for and was paid $2,800 or 10 percent of the sale price of
of any amounts paid by him or withheld from sums otherwise due him
a residence at the old official station. The record, however, shows that
with respect to the indebtedness set forth in section 1 of the bill and
the commission on sale of a residence at the old official station involved
(2) the sum of $800 in full settlement of his claim against the United
was customarily 6 percent and under the limitation of 5 U.S.C.
States for reimbursement of a loan origination fee incurred in con-
5724 (4) payment in excess of 6 percent or $1,680 is not authorized.
nection with the purchase of a new residence incident to transfer for
Accordingly, we suggest that the proposed relief in the total amount
employment as set forth in section 1 of the bill.
of $3,908.90 be reduced by $1,120 representing the difference between
Dr. Winkler's case in part has been before our Office. A review of
$2,800, the broker's fee paid, and $1,680, the allowable broker's fee.
our records shows that he was transferred from Fort Monmouth, New
Jersey, to Washington, D.C., as an employee of the Department of the
Sincerely yours,
Navy. He reported for duty in Washington on October 24, 1966. He
E. H. MORSE, Jr.,
was reimbursed $3,908.90 by his administrative office for real estate
(For the Comptroller General
expenses arising from the transfer-$2,800 incident to the sale of his
of the United States).
residence in New Jersey and $1,108.90 incident to the purchase of a
O
residence in Potomac, Maryland. Settlement dates on the two transac-
tions were December 29 and December 8, 1967, respectively. For the
reason discussed below none of the $3,908.90 should have been paid to
Dr. Winkler and we requested that steps be taken to recover the
amount thus overpaid.
In order to qualify for reimbursement of real estate expenses in-
cident to a transfer, the applicable regulations-section 4.1d of Bureau
H.R. 429
H.R. 429
H. R. 1558
Ainety-fourth Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday, the nineteenth day of January,
one thousand nine hundred and seventy-six
An Act
For the relief of Doctor Gernot M. R. Winkler.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That Doctor Gernot
M. R. Winkler of Potomac, Maryland, is relieved of liability to the
United States in the amount of $3,908.90 such sum representing cer-
tain real estate expenses incurred in the sale of his residence in Long
Branch, New Jersey, and the purchase of a new residence in Potomac,
Maryland, incident to his transfer for employment as Director of
the Time Service Division of the United States Naval Observatory,
Washington, District of Columbia. In the audit and settlement of the
accounts of any certifying or disbursing officer of the United States,
credit shall be given for amounts for which liability is relieved by
this section.
SEC. 2. (a) The Secretary of the Treasury is authorized and directed
to pay, out of any money in the Treasury not otherwise appropriated,
to Doctor Gernot M. R. Winkler an amount equal to the aggregate
of the amounts paid by him, or withheld from sums otherwise due
him, with respect to the indebtedness to the United States specified
in the first section of this Act.
(b) No part of the amount appropriated in subsection (a) of this
section in excess of 10 per centum thereof shall be paid or delivered
to or received by any agent or attorney on account of services rendered
in connection with this claim, and the same shall be unlawful, any
contract to the contrary notwithstanding. Any person violating the
provisions of this subsection shall be deemed guilty of a misdemeanor
and upon conviction thereof shall be fined in any sum not exceeding
$1,000.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.