The Omnibus State Reorganization Act of 1974 authorizes the Director of Revenue to approve all salary increases for employees of the Missouri Highway Reciprocity Commission.

COMPENSATION: REORGANIZATION ACT: MISSOURI HIGHWAY RECIPROCITY COMMISSION: all salary increases for employees of the Commission. February 6, 1976 Mr. James R. Spradling, Director Department of Revenue Jefferson State Office Building Jefferson City, Missouri 65101 Dear Mr. Spradling: The Omnibus State Reor- ganization Act of 1974 authorizes the Director of Revenue to approve Missouri Highway Reciprocity OPINION NO. 6 FIL ED\ iilp I This opinion is in response to your question asking as follows: "Does the Director of Revenue have the autho- rity to approve all salary increases for em- ployees of the Highway Reciprocity Commission?" You also state: "Section 301.273 RSMo 1969, authorizes the High- way Reciprocity Commission to fix the compensa- tion of the secretary for the commission and other employees. However, paragraph 5, Section 12, Omnibus State Reorganization Act transfers all the powers, duties and functions of the Highway Reciprocity Commission, Chapter 301 RSMo, by type II transfer to the Department of Revenue. The definition of a type II transfer given in Section 1.7(1) (b) of the Reorganiza- tion Act incudes ' •.• the employment and dis- charge of employees, •• .• ' In addition, Section 1.6(4) (a) of the Reorganization Act gives the Department of Revenue ' •. • exclusive budget- making powers . .• for each . .. commission . ••• ' It is not clear whether the budget-making power of the Department of Revenue or the authority to supervise the employment and discharge of em- ployees includes supervision over and deter- mination of any salary increases for those employees." Mr. James R. Spradling As you have noted under the provisions of Section 301 .273, RSMo, the Missouri Highway Reciprocity Commission, which is com- posed of the Governor, the Attorney General, the Chairman of the Public Service Commission , the Director of Revenue, the Superin- tendent of the Missouri State Highway Patrol, and the Chief Engi- neer of the Highway Department, has the authority to " .. . fix the compensation of ... employees within the amount appropriated by the general assembly. " Also, as you have noted, the provisions of the Omnibus State Reorganization Act of 1974 (C.C.S.H.C.S.S.C.S.S.B. No. 1, 77th Gen- eral Assembly} , subsection 5 of Section 12 provide : "All the powers, duties and functions of the highway reciprocity commission, chapter 301, RSMo , are transferred by type II transfer to the department of revenue." The Reorganization Act also provides, subsection 7(b} of Sec- tion 1: "Under this act a type II transfer is the transfer of a department, division, agency, board, commission, unit, or program to the new department in its entirety with all the powers, duties, functions , records, person- nel, property, matters pending, and all oth- er pertinent vestiges retained by the depart- ment, division, agency, board , commission , unit or program transferred subject to su- pervision by the director of the department. Supervision by the director of the depart- ment under a type II transfer shall include, but shall be limited to: budgeting and re- porting under subdivisions (4} and (5} of subsection 6 of this section; to abolishment of positions, other than division, agency, unit or program heads specified by statute; to the employment and discharge of division directors; to the employment and discharge of employees, except as otherwise provided in this act; to allocation and reallocation of duties, functions and personnel; and to s upervision of equipment utilization, space utilization, procurement of supplies and ser- vices to promote economic and efficient ad- ministration and operation of the department and of each agency within the department. Su- pervision by the director of the department -2- Mr. James R. Spradling under a type II transfer shall not extend to substantive matters relative to policies, regulative functions or appeals from deci- sions of the transferred department , divi- sion , agency , board, commission , unit or pro- gram, unless specifically provided by law. The method of appointment under type II trans- fer will remain unchanged unless specifically altered by this act or later acts." (Emphasis added) It is our view that it is particularly significant that the legislature granted the Director the authority to employ and dis- charge employees under a type II transfer because we believe that the power to employ personnel necessarily includes the fixing of employee compensation in positions not covered by the merit sys- tem. While it is axiomatic that repeals by implication are not favored, we conclude that the reorganization provisions noted above repealed by implication the Commission's authority to set the compensation of its employees because such provisions vest that power in the Director of the Department of Revenue. Such a conclusion, we believe, is consistent with the intent of the legislature in effecting reorganization. CONCLUSION It is the opinion of this office that the Omnibus State Reor- ganization Act of 1974 authorizes the Director of Revenue to approve all salary increases for employees of the Missouri Highway Reciproc- ity Commission . The foregoing opinion, which I hereby approve, was prepared by my assistant, John C. Klaffenbach. Yours very truly, ~eCJ--(~ .JOHN C. DANFORTH Attorney General -3-