Guam § 716 - Authorization of Expenditures; Effect.

§ 716. Authorization of Expenditures; Effect.

A law which authorizes the expenditure of funds, but which does not appropriate those funds

authorizes the department, agency or person to whom the authorization is directed to take all necessary

steps to accomplish the terms of the law except the obligation or expenditure of the funds which have been

authorized, but not appropriated.

1980 COMMENT: Up to the present, there has been much doubt as to the effect, if any, of a bill authorizing an

program and authorizing, but not appropriating funds to carry out that program. In many instances such bills have been

ignored completely. In other instances hardship has been caused to the agency receiving the authorization because an

obligation was made and lesser funds were appropriated than were obligated under the authorization. This section is

designed to correct both extremes, guiding both the Legislature and the affected parties in their actions under a fund

authorization,

Thus, if funds were authorized to finance a program granting some benefit to a group who met certain statutory criteria

the designated agency could commence screening to determine those who meet the criteria, up to the ceiling established

by the authorization. Then the agency would present to the legislature those who had qualified so that the Legislature

can appropriate the exact amount required. See Train v. City of New York, 95 S.Ct. 839, 420 U.S. 35 (1974).

The Attorney General has suggested that the Legislature be required to appropriate funds when creating new burdens

on existing budgets. While this would be a good idea, this type of requirement cannot be placed in law because, in

reality there would be so many amendments to the requirement that the code section would become obsolete shortly

after its passage.