Montana Attorney General Opinion 15-441

Opinion No. 441 Liquor ContI'ol Board-Funds-Con- tingent Revolving Fund. HELD: Section 195, R. C. M. 1921, authorizing contingent - revolving ac- counts, furnishes a definite rule of pro- cedure for expending funds under the Liquor Control Act. Detailed procedure for establishing such Contingent Revolving Fund and for making expenditures therefrom is set forth. February 3, 1934. Chapter 105. Laws of Montana, 1933, is an Act which creates the Montana Liquor Control Board and provides for the establishment of State Liquor Stores and for the maintenance of such stores and the sale of liquor therein. It differs from the other activities of the State in that, under the terms of this Act, the State of Montana engages in an extensive and private business. 306 OPI:\'IONS OF 'l'HE ATTORNEY GE:\,ERAL Section 94 of the Act provides: "All moneys receh'ed from the sale of liquor at the State Liquor Stores or from license fees or taxes or other- wise, arising in the administration of this Act, shall be paid to the Board, and the Board is hereby authorized to make such expenditures from such fund as from time to time becomes necessary in the administration of this Act, including in such expendi- tures all salaries, expenses of officers, agents and employees, and all proper expenditures incurred in acquiring property and merchandise in connec- tion with the administration of this Act." This opinion is written to explain more in detail the method to be fol- lowed in the expenditure of funds, making purchases, and payments by the State Liquor Control Board. "They (the Governor, Secretary of State and Attorney General) shall constitute a Board of Examiners with power to examine all claims against the State except salaries or compen- sation of officers fixed by law." (Con- stitution, Article VII, Section 20.) "No money shall be paid out of tile treasury except upon appropriations madc by law, and on warrant drawn hy the proper officer in pursuance thereof, except interest on the public <lebt." (Constitution, Article V, Sec- tion 34.) Since 1921 there has existed in this State a statute in relation to contin- gent revolving accounts, which pro- vides: "The State Board of Examin- ers may in its discretion, by resolution duly adopted and entered upon the minutes of said Board, authorize the establishment and maintenance at any and all of the state institutions, or in any of the departments boards or commissions, of l\Iontana of con- tingent revolving accounts, transfer- ring in trust to the business offices of said institutions such sums of money ItS may appear necessary, to be used hy said institutions for tile payment of demands requiring immediate cash payment, under specifiC regulations to he established by said Board of Exam- iners. But each and every state in- stitution granted a contingent revolv- ing account shall report to the State Board of Examiners monthly all trans- actions involving such contingent re- YolYing accounts, with proper youchers for every payment made therefrom. The State Board of Examiners mas' cancel snch authorizations and recall such funds at pleasure." (R. C. M., 1921, Section 195.) The provisions of this statute are not inconsistent with Section 94 of Chapter 105. Laws of 1933. In fact. the statute furnishes a definite rule of procedure as to the method of expend- ing funds under the Liquor Control Act. Dnder the proviSions of Section 195 a resolution creating such revolving contingent fund has already been adopted. The Board of Examiner,,' should pro,ide regulations properly safeguarding the expenditures of the Liquor Control Board. All claims are finally audited by the State Board of Examiners; all payments are made after a warrant has been drawn. The procedure complies with the constitu- tional requirements. The resolution of the Board of Exam- iners should be amended to provide that a definite and specified amount be set aside as a contingent revolving fund. The Board of Examiners should authorize such claim and direct the Auditor to draw a warrant to establish such fund. From time to time, as a claim is presented with proper vouch- ers attached. the Board of Examiners should approve such claim and the Auditor should issue his warrant for same to replenish the contingent re- volYing fund from the Liquor Fund. House Bill No. 31 of the Extraor: dinary Session of 1933, appropriates $100,000 for the establishment, stock- ing and operating of the State Liquor Stores. This appropriation was pro- vided by the Legislature to equip the stores and operate same until such time as the revenue from the sale of liquor would provide nec-essary funds for op- eration. The Appropriation Act fur- ther states thut before any revenue is to be distributed the $100,000 appropri- ated must be returned to the general fund.