Transfer of money from the Conservation Administration Fund of the Maine Public Utilities Commission to the state's General Fund

MAINE STATE LEGISLATURE The following document is provided by the LAW AND LEGISLATIVE DIGITAL LIBRARY at the Maine State Law and Legislative Reference Library http://legislature.maine.gov/lawlib Reproduced from scanned originals with text recognition applied (searchable text may contain some errors and/or omissions) Telephone: (207) 626-88CO TDD: [207] 626-8265 ()FFICE OF THE ""~ TTORI'JE':{ G21~JE?\..A.L 6 STP-_Ts Hous2 STJ:. ... TIOI\I AUGUSTP .. ~ I\iI_,.uNE 04333-0006: February 3, 2003 Hon. Christopher Hall, Senate Chair Hon. Lawrence Bliss, House Chair Members of the Joint Standing Committee on Utilities and Energy 100 State House Station Augusta, VIE 04333-0100 Dear Senator Hall, Representative Bliss and Committee .rvfembers: 03-1 ~ ..... ~~J;__O''.' ,S-; _, :2.Nf..: '?UJOF. B . ..\NGO~. I'':L-1_1Nc 04--P)l TEL: (207! 94 l-307G FAX: (20'7) 9--!- I-307.5 ~..:t ()..1,1,,: STJ.EET, 4TH f'L002 PORTLAND. ~/IAINE 04101-3014 TEL: ('.207) 322-0260 FA.X; (207) 822-0259 TDD: (877) ~:28-3300 12.8 SWEDEN ST ... STC. 2 C.urnou, MAINE 04736 TEL: (207)496-3792 FAx: (207) 496-3291 You have inquired whether the transfer of $600,000 from the Conservation Administration Fund of the .rvfaine Public Utilities Commission ("PUC") to the State's General Fund would violate the provisions of the Maine Constitution. We believe that such transfer would not violate the .tvfaine Constitution. Unless funds are held in trust or are specifically protected by the express terms of the Maine Constitution, the Legislature has discretion in making allocations for any designated governmental purpose, including allocation to the general fund. See IVIE AG Opinion No. 92-7 (attached). It is our determination that the funds in the PUC Conservation Administration Fund are not held in trust. There is nothing in Title 3 5-A .tvI.R.S.A. section 3211 or of which we are aware that suggests that the Legislature intended to establish the Conservation Administration Fund as a trust. Dedicated revenue accounts are, by definition, funds specified to be used for a designated purpose. If this alone were sufficient to render these accounts trust funds, then no dedicated revenue account would be available for reallocation by the Legislature. I hope this answers your question. Please feel free to inquire again if further clarification is necessary. GSR:dp Attachment c-,• C l Smc/t)+JL7-- G. STEVEN ROWE Attorney General ~ ~:.; ·.- ·~---- Teiephon:::: [20-:-J 5C5-S30C, STATE HOUSE STATION 6 AUGUSTA, l'vLUNE 04333 December 15, Sawin Millett, Cormni s s ioner Department of Finance State House Station #78 Augusta, Maine 04333-0078 7 o a 7 -..J ..,.'.t....,. c6 h"ARLO\'," S-:- Sr.Tr~ ~, BANGOR. !v[A!N!:: o...;....;o: Tic~: ("07\ 9'" 1-30:0 .)I_;' p .. -..iv- '-l1.· --1 POR.TL.i.:'10, ivL•..i~I!: O.+ IO I-30 !..~ Tic~: (_"07) 879-.;200 Re: Transfer of Trust Monies to General Fund under Part KKK of Legislative Appropriations Bill -- Dear Sawin: As you know, my office has been in contact with yours regaraing the applicability to certain trust funds of Part KKK of the appropriations bill enacted in the last legislative session. Part KKK provides an across-the-board transfer of .9% of accounts to the general fund. It is this office's opinion that Part KKK cannot, however, lawfully effect a transfer to the general fund of monies that the State holds in trust for certain legally designated purposes. Such a transfer would either violate the legal trust relationship by which the State holds the monies involved, or would violate constitutional requirements by which bond or other revenues must be held for expenditure. More detailed legal analysis describing the rationale for this opinion is .attached. In the discussions between my office and yours, the suggestion was made that we provide a concise summary of our views on ~his issue as it pertains to the trust monies that have been brought to our attention. My purpose then is to simply state what we believe to be the law on the matter and to point out the types of trust-type funds, to the extent known by us, to which this opinion applies. Again, as to the funds described below, an across the board transfer to the general fund as envisioned by Part KKK would violate the trust duties under which the State holds these particular funds. This is in contrast to the applicability of Part KKK to other special or dedicated revenue accounts, held by the State in a non-trust capacity, and over which the Legislature has discretion in making allocations for =ny ~=~ign=~=~ governmental purpose, includi~g reallocation ta the ceneral fund. These C. ..'..... ~ the ::unds been brought to our attention an0 from which monies should not be reallocated to the general fund· Lln.dsr P2rt ?~~~E(: Monies in Sa=ter State Park accounts; Monies in accounts of Bureau of Parks and Recreation of the Department of Conservation, which were donated to and received by the State with the explicit understanding that the monies would be used for certain park facilities; Monies in accounts of the Bu~eau of Public Lands of the Department of Conservation, restricted to the public reserved lands or submerged lands; Monies raised by bond issues designated for a particular purpose; Monies in or drawn from highway trust fund accounts. There may be other trust funds, of which we have not been made aware, and we will respond to these circumstances as they arise. In the meantime; if you have any guestions, please let me know. MEC/tt Attachments Sincerely, 71~// c (' ~~ MICHAELE. CARPEN~ER Attorney General cc: Michael D. Pearson, Senate Chair Legislative Appropriations Committee Lorraine N. Chonko, House Chair Le·gislati,te P._ppropria.tions Cornrnittee Jim Clair Jack Nie ho las