53 



Council that the applicant for financial assistance does not have sufBcient fi- 

 naxicial resources to permit the undertaking of a project with bond or loan financ- 

 ing. Also, we note that section 305(b) does not specifically state whether pay- 

 ments on defaulted bonds or loans are to be made from the Marine Resources 

 Fund or funds otherwise appropriated. 



Section 312(a) contains what appears to be an unrealistic requirement for a 

 report to the Congress not later than January 1 of each year on the administra- 

 tion of the title for the preceding calendar year. This requirement would provide 

 only one day to finalize and issue a report on the preceding year's activities. 



The act which the bill proposes to amend was approved June 17, 1966, and is 

 codified in 33 U.S.C. 1101 et seq. Consequently, line 8 on page 1 of the bill should, 

 be changed to read "approved June 17, 1966, as amended (33 U.S.C. 1101 et seq.") 



The word "cosal" appearing in line 16 on page 8 of the bill should be changed 

 to "coastal." 



Sincerely yours, 



R. F. Kellee, 

 (For the Comptroller General of the United States). 



Comptroller General of the United States, 



Washington, B.C., March 30, 1910. 

 Hon. Warren G. Magnuson, 

 Chairman, Committee on Comm-erce, 

 U.S. Senate. 



Dear Mr. Chairman : This is in reference to your letter of March 2, 1970, re- 

 questing our views on S. 3460, entitled : "A BILL To establish a national policy 

 for the coastal zone resource, to encourage a systematic approach to coastal zone 

 planning and development, and to assist the States in establishing coastal zone 

 management and programs." 



We have no special information as to the advantages or disadvantages of the 

 proposed legislation and, therefore, make no comments as to its merit. However, 

 we have the following comments concerning specific provisions of the bill. 



The bill calls for all Federal agencies to coordinate their activities in the 

 coastal zone with the coastal States. ( Section 303, page 4, lines 16-18. ) We sug- 

 gest that the extent of this coordination may not be sufficient since tiie activities 

 undertaken by other (noncoastal) States affects the waters draining into the 

 coastal States. The committee may wish to consider the possibility that entire 

 river (or lake) basin coordination may be desirable. 



The bill provides for a Federal agency (The National Council on Marine Re- 

 sources and Engineering Development) to make grants to State agencies (coastal 

 authorities) to assist them in developing a long-range master plan and imple- 

 menting a development program based upon such master plan. If the coastal 

 authorities borrow money and issue bonds for the purpose of land acquisition or 

 land and water development and restoration projects, the borrowings and bonds 

 may be guaranteed by the Federal agency. (Section 30.5(a) page 6.) 



We believe that the bill should pi-escribe the terms and conditions of the bor- 

 rowings and bonds that may be guaranteed by the Federal agency and the rights 

 of the Federal Government in the case of default. We believe also that the bill 

 could specify the extent to which such borrovdngs and bonds may be guarantee<l 

 by the Federal agency. 



ALSO, in order to effect more comprehensive master planning by the coastal 

 authorities, we suggest for your consideration the following change at page 7, 

 line 19 : 



" * ♦ * authority shall examine the land and water use regulations, ♦ ♦ * " 

 " * ♦ ♦ authority shall examine the land and water use regulations. * * * " 



Similarly, regarding page 8. line 5. we suggest the following change : 



" * * * such master plan shall include studies, analysis, conclusions, and ex- 

 planatory diagrams. * * * * " 



The bill provides for submission by the Federal agency of an annual report to 

 the President for tran.smittal to tlie Congress not later than January 1 of each 

 year covering administration during the preceding calendar year. (Section 31.5 

 (a), page 17.) We suggest April 1 as being a more practicable report due date. 



Page 2, line 5, contains the reference "16 U.S.C. 1121" which should be "33 

 U.S.C. IIOL" 



