Commonwealth Ex Rel. Armstrong v. Collins

contempt, re- rary Suspension. For this is ordered to

spondent is fined $500.00 County Jail incarcerated in the Franklin days. period of 90 adjudged respondent, further

It is Jr., contempt Conley, is in

Isaac L. comply for his failure to with

court willful 25, 1985, tecum July subpoena duces 3.180(3). For this pursuant to SCR

issued in- respondent is to be

contempt, ordered for a County in the Franklin Jail

carcerated days, concurrently

period of 60 to run day period imposed above.

the 90

All concur. Kentucky, ex

COMMONWEALTH ARMSTRONG,

rel. David L. General,

Attorney Appellant,

v. Governor, COLLINS, Layne

Martha Kentucky, Lester M.

Commonwealth

Thompson, Secretary, Finance and Ad Cabinet,

ministration and Frances Mills, Treasurer,

Jones Commonwealth Kentucky, Appellees. Kentucky.

Supreme Court

1,May Chenoweth, L. Sp. Atty.

Robert Asst. Gen., Chenoweth, Fogle Bryan, & K. Gail Leeco, Frankfort, Attys. Gen., ap- Asst. for pellant. Counsel, Noyes,

J. Michael Gen. Office of Governor, Frankfort, A. Wallace Graf- ton, Jr., Sheryl Snyder, Virginia G. H. Combs, Snell, Louisville, Wyatt, Tarrant & appellees; for Lee Charles Sisney, Wick- liffe, Cabinet, Finance Admin. Frank- fort, Watson, III, Cynthiana, Henry counsel.

STEPHENS, Chief Justice. issue we is to what basic address extent, any, if may, adopting Commonwealth on the condition of bill and based financial provide therein for the Commonwealth reduction, ap- elimination and transfer funds, practical propriated pur- and for all thereof, poses, provide that as a result of certain statutes is effectiveness temporarily modified.

BACKGROUND regular At its session in the Gener- passed budget.1 al Assembly a biennial 474, Chapter Bill bill. 1. House 1984 Acts referred to as HB or the hereinafter govern- appropriated

This document cials Executive branch revenue transferring ment from funds from Commonwealth determined certain expended designated agency trust and funds5 how revenue would be operation, oper- other accounts to the support maintenance ating government the three of state fund branches Commonwealth. Follow- ancillary ing briefing arguments, the myriad agencies state normal fact, document, programs.2 findings trial court its This included a entered con- declaratory judgment. appropriations reduction in for clusions of various sal- law by ary appeal timely of A notice of was filed increases and transfers funds from Attorney upon appropriate agency various trust and accounts to the General and mo- tion, reasons, for General Fund to cover central administra- obvious we transfer- expenses. appeal directly red the to this Court. tive addition, In at the same session the Gen- DECISION THE TRIAL COURT OF legislation3 Assembly passed corollary eral rejecting In the contentions of the Attor- upon which the General Assem- conferred main, ney General in the the trial court bly provide, a has, Assembly declared that bill, the General suspension for or of modification Ky. under Const. Secs. 15 and the au- operation existing of an statute if the thority “suspend existing laws in a bud- General found that such action get provision germane if the to the required condition by the' financial of state subject appropriations.” broad of It fur- government. procedural require- ther declared that the appli- ments of Sec. 51 were not Const. HISTORY PROCEDURAL challenged cable to statutes because appellant, Attorney The General of the they only “suspension” of exist- effected Commonwealth, on June 1984 filed a ing “express statutes and were not petition declaratory judgment in the implied repeal” existing statutes. challenging Franklin Circuit Court the con- validity legislative upheld stitutional those The trial court also General Basically, petition Assembly’s authority suspend previously acts.4 claimed that legislative salaries, agency enactments pre- violated the authorized trust scriptions Kentucky of Section 51 funds.6 It declared certain transfers of Constitution, accomplished germaneness they as to the invalid both funds because suspension existing the titles of the acts and as to the failure to more than “the mere procedural requirement statutory provisions” follow the and because of Sec- publication appropriations “germane” tion 51 for the enactment and were Kentucky tempo- aegis law. Constitution amendments A within ruling is us rary restraining order was 51.7 The former before entered Section judge appeal, is not. prevented trial various offi- on the latter specific Specifically approved the court trans- 2. The of the statutes under 6. the trial fully following appro- funds areas: Board of attack will be more described fer of Elections; in the parts Kentucky Development priate opinion. Finance Au- of this Kentucky; Banking thority; University of Resources; Securities; Chapter 3. Senate 410 of the Acts Bill Wildlife Road Fish and Fund; Fund; to as SB 294 or 446.- Capital hereinafter referred KRS Road Edu- Construction of Humanities; Support 085. Jail cation and Local (medical contracts). capaci- Thompson Mr. sued in his 4. official prosecu- Unified Those declared invalid were: ty. Secretary 7. resigned position He provides Cabinet, system, only torial insofar as it Finance and Administration propor- county funds or a will receive appointed circuit Kentucky C. Governor of has Gordon load; case total criminal tional state’s Duke to that office. Accounts, only insofar Auditor of Public Auditor; funds, imposes rections, description agency on the Cor- For a of trust and additional duties infra., seq. creates a scheme for p. et. insofar as it see plain

CONTENTIONS OF THE PARTIES It is clear from the language of the (1) statute that in Section the General As- appellant urges The us to reverse the sembly deprives itself of legal authori- trial court because of he maintains what ty amend, to repeal through the device “cryptic an erroneous and analysis” any of a other existing law trial court of Sections and 15 of the appearing Kentucky Revised Stat- essence, appel- Constitution. However, (2), utes. argues lant that the titles to the two acts Assembly gives itself the to sus- question pass do not Section 51’s constitu- pend modify stat- requirement tional that the content of the ute, only if the financial condition of germane act be to the title The thereof. government requires. state so The dura- Attorney urges General also us to declare tion of such is limited to the ruling procedural as error the re- budget. duration of the quirement of apply Section 51 does not to a “suspension” statutes. Fur- has, this stat- ther, argues appellant the trial court ute, erro- power drawn a line between its in the neously concluded that Section 15 of the budget suspend modify existing bill to or Kentucky permitted Constitution the statutes, statu- opposed repealing as or amend- tory suspension and modification contained ing existing repeal statutes. It cannot or in HB Finally, argued 474. it is amend, but it can modify or exist- erroneously applied “ger- trial court ing through provisions statutes of a maneness” test of Section 51 to the various budget bill.

provisions question. acts legislation, Armed with this

Assembly, budget in its biennial bill for the THE CHALLENGED STATUTES 1984-1986, years exercised this by drafting relating items to the reduction provides as SB follows: salaries, of increases in state officials’ “(1) Nothing budget adopted in a bill providing items for the transfer of monies general assembly shall be con- agencies from and funds to the repeal strued to a or amendment effect general qualifying states’ fund and items Statutes, Kentucky in the Revised recovery projects, funds for resource road any repeal if appears or amendment books, jail support. school and local Kentucky effected in be Re- Statutes, disregarded, vised it shall be may It is our role to determine if SB 294 void, shall be null and and the law as it constitutionally permit the General Assem- prior existed to the effective date of the bly suspend modify operation or budget given shall be force bill full statutes; existing if the answer is effect. affirmative, to further determine if both

“(2) Notwithstanding budget comply 294 and the SB bill (1) general requirements subsection of this section the of the title section of Ken- assembly may provide tucky If the an- budget in a bill Constitution Section 51. suspension inquiry or to the second is in the affirm- swer modification of must, finally, a statute if the we examine each con- ative assembly suspension” finds that the condi- tested “modification or con- financial. budget if government requires tion of state such tained in the bill to determine repeal suspension actually or modification. Such sus- such constitutes a amendment, only if pension or modification shall not extend each is a modifica- budget suspension purview beyond the duration of the bill.” tion within added). 294(2) pub- (emphasis SB and of the re-enactment and community salary ceilings imposes investigating reporting a on limit on adminis- costs; Cabinet, Transportation only private corporate availability of correctional trative inso- Services, services; ceiling Department places full of Social far as it a on the number of exempts personnel positions Transportation time Cabinet. insofar as it certain Audi- the Treasurer and the accounts of Kentucky Constitution lication section Accounts. tor of Public word, on the action ... In a final THE ASSEMBLY DOES GENERAL budget is adoption enactment or IN THE THE POWER BUD- HAVE course, is, It matter. legislative a BILL SUSPEND OR MODI- GET TO carry out duty the Governor ... LAW? FY EXISTING STATUTORY implement the and to stated, denying As while SB Assembly. Ky. passed by the General Assembly to re of the General (emphasis 81.” Id. at 925. Const. Sec. statutory law peal or amend added). through a did the device of Brown, legislatively man- approved a we body legislative indeed authorize applicable to plan reduction dated “provide government, the branches of state all three operation of a stat or modification of the triggered when operation of which it, the No matter how one slices ute.” state revenue shortfall occurred. permitted through the declared invalid a stat- Also in Brown we appropria reduction or elimination of an required utory provision that tion, efficacy effectively eliminate the resolution, opposed submitted as statutes, subject only the find mandate of Constitution Sec- emergency further ing of a financial Sig- presented 88 that it be as a bill. budget tion subject to the time limitation of the judice, ary nificant to the issue the case sub period. we declared statutory that this scheme is We believe bill, a the is enacted as “When clearly powers within constitutional repeal thereof could exist- Assembly. the General But doc- ing statutes. if power It that the of the dollar— is clear a ument is introduced form money raising expenditure resolution, it can not have the effect of necessary operate government to state —is ” at Id. repealing any existing statutes. one which within added). p. (emphasis legislative government. The branch a bill thus twice stated that so We Constitution Commonwealth existing repeal statutes. Kentucky could be used to states and we have so stated. 230, is follows: Constitution Section as not come as there should Our statement money “No shall be drawn from the State previ- our one considers any surprise when except pursuance appro- Treasury, 285 Mattingly Kirtley, In v. decisions. ous by priations made law.” (1941), 795, a statute 149 521 Ky. S.W.2d prevent Board purpose of this section is to established a State The enacted in 1920 money a expenditure of the state’s with- and authorized of Athletic Control Assembly. op- of the General the Board’s $5,000.00appropriation out the consent for Oates, Ky., 314 S.W.2d 518 not Ferguson v. amount was erating expenses. That (1958). Research Legislative As we said changed by repeal of or an amendment Brown, Ky., Act, 664 S.W.2d v. Budget Commission 1940 statute. In the (1984), increased 907 the Board was appropriation to seeking $6,500.00. filed A suit was then budget, provides the revenue “The which prop- amount was of which deter- a determination and which for the Commonwealth gave effect Appeals spent, is er. The Court shall be mines how that revenue Assembly General “last word” of the legislative matter.... fundamentally a appro- increased expressed by the 1940 empowers the Gen- 49-50 Ky. Const. Sec. amendment debts; permitted an Ky. priation and Assembly to contract eral Budget Act. id. 1940 1920 As- bill empowers the General Sec. 53 Const. proposi- stands for Mattingly at 523. investigations into sembly provide for 442

tion that —at very least —the purpose by General appro- amendment to an Assembly may appropriate funds in a priation Bud 222, bill ...’” Id. at 101 S.Ct. get bill in amounts that are different from at 484. previously those in enacted statutes. In point, At this it is necessary to remember terestingly enough, in that case the court questioned statute SB its 294— did not attach conditions such as emer own terms—denied the Assembly etc., gency, permitted. amendment power repeal or amend an In Meredith, Commonwealth ex rel. Attor permitted law. It only suspension or ney Johnson, General v. Ky. 292 166 modification. (1942) questioned S.W.2d bud may It argued, well be that if the Gener- get permitted the Governor the “widest al power has constitutional expend discretion” to and to transfer mon repeal or amend statutes in a ey another, from one fund to upon the power it should finding by him have the emergency that an existed suspend public modify such money spent. statutes should be selfsame court said: bill. This conclusion is supported by logic, supported and it is also “To hold government that the state could by law. precaution take the anticipating such items an emer- [as miscellaneous Constitution Section is as gency] would progress be to retard the follows: public affairs.” Id. suspended “Laws to be only by General Johnson, In the court declared that a bud- Assembly. No laws get bill could allow not the transfer of shall be exercised unless funds from accounts but also that authority.” or its properly selfsame bill would authorize the There have been a minimal number of unappropriated unbudgeted expendi- interpreting cases this section. Love funds, (or ture emergency if an other Commonwealth, lace v. items) miscellaneous were found. (1941), authorizing S.W.2d 1029 a statute proper If it is Assembly General probate person court to the sentence of a delegate power, to the Governor the convicted of a crime held to be a spend to transfer funds and to constitutionally “suspension” valid of the items, unbudgeted not, them for why is it criminal statute. We said: fortiori, proper Assembly, for the General legislature “The makes the laws that de- in emergen- the limited circumstances of an clare what are criminal offenses and de- cy government, financial situation of state processes by fine the these laws suspend to transfer funds and to modi- Having power are enforced. fy operation of a statute? We think make, power modify it has the question answers itself. provide suspension. for abatement or Supreme United States Court Id. at 1034. agrees. Will, In United v. 449 U.S. States power legislature in the to autho- “[T]the 200, 471, (1980), 101 S.Ct. 66 L.Ed.2d 392 suspend rize the courts those laws is highest our specifically court held that the logically implied affirmation Congress modify United States could statu- contained Section 15 the Constitu- tory appropriation law bill. In an Kentucky....” (emphasis tion Id. opinion, quoting unanimous the Court added). Dickerson, v. United States U.S. 1034, 1035, 60 S.Ct. 84 L.Ed. 1356 beyond It is cavil that the General As- (1940)said: sembly suspend of stat- can Moreover, Lovelace, Congress suspend desires to or utes. under the Gen-

“[W]hen force, delegated authority repeal Assembly can be eral that a statute in ‘[t]here also, accomplish no Gering doubt that ... it could its the Courts. See v. Brown Corporation, Ky., revised, amended, Hotel 396 S.W.2d 332 and no law shall be (1965). provisions thereof extended or con- only, ferred reference to its title Assembly’s Because of the General ex- revised, amended, so much thereof as is respect clusive public with conferred, extended or shall be re-enact- budget, problem funds and the no we have published length”. ed and at deciding Ky. applies that Const. Sec. 15 to statutes which can be affected proscriptions There are two contained in budget bill of the Commonwealth. The oft-litigated section. directs One Assembly operate is mandated to Assembly an act of the General shall the financial offices of the Commonwealth subject requires relate to one budget. under a balanced If revenues be- subject expressed in shall be the title of the inadequate, Assembly come the General act. The other directs that no law empowered adequate must be to use de- revised, amended, shall be or its budget. vices to balance Provisions in by referring conferred or extended to its effectively document which sus- only, title but rather when such action is pend modify existing statutes which intended, required the law is to be re-enact- carry implication financial certainly are length. Appellant ed at attacks HB 474 responsi- consistent with those duties and respect pro- and SB 294 with to the first bilities. scription of 51 and HB 474 with respect to the second.

We have reiterated the proposition that the General may constitutionally repeal or amend statutes (A) DO THE TITLES SB 294 AND TO budget bill, terms long of a so as said bill HB 474 THE PROPERLY DESCRIBE complies Ky. Const. Sec. 51. We have SUBJECT OF THOSE ACTS. emphasized obvious, viz, that the Gen- Ky. always Const. Sec. 51 has been lib Assembly may suspend eral also or modi- construed, erally being with all doubts re

fy existing Since, statutes in a bill. validity legisla solved favor of the (1) paragraph under of SB tive action. The the section power denied repeal itself prevent said to be to the enactment of (2) amend and further in paragraph said “surreptitious” legislation. v. Bowman (or granted thereof recognized) in itself Hamlett, 166 S.W. 1008 modify existing (1914); Commonwealth, Dawson v. De statutes, must, perforce, we examine the partment Transportation, Ky., 622 questioned provisions (1981). S.W.2d 212 The framers of the only suspen- determine whether are prevent surprise Constitution intended to modifications, therefore, sions or prop- upon and fraud the members of the Gener er under the Assembly’s General self-im- parties, al and other interested posed that, however, limitation. Prior to preventing practice “log thus the roll appellant’s argument we must address ing”. Commonwealth ex rel. Meredith v. challenged both acts violate Section 51 of Johnson, Ky. 292 411 166 S.W.2d Kentucky Constitution. (1942). THE DO TITLES OF SB 294 AND HB 474 only The title need furnish THE MANDATE COMPORT WITH general subject notification of CONSTITUTION, OF KENTUCKY act. If the title furnishes a “clue” to the SECTION 51? contents, passes mus act’s constitutional Ky. Kentucky Laffoon, ter. Talbott v. Constitution Section 51 is as (1935). S.W.2d 244 follows: “No Assem- of our ... was law enacted the General “Section 51 Constitution up bly subject, prevent grown had shall relate to more than one the evil that title, legislating upon many in in dis- expressed and that shall be one act as wholly subjects agency trust tinct and disconnected as various and accounts to the fit, legislative body any Commonwealth, saw without general fund of the in act indication the title of the as to provide also for the reduction of raises might what its contents be.... [Prior inmade various officers’ salaries. The title adoption] competent its then [i]t “appropriation” to the act refers to Legislature legislate upon a multi- etc., government. operation, of state Cer- plicity subjects of unrelated which were tainly, the title does not tell the reader to, in remotely germane neither or that—in voluminous act—the General with, wise connected the one or ones Assembly has authorized reduction of in the title named ... circumvent [t]o salary increases and the transfer of trust deceptive practices resulting such in de- However, agency under the funds. ceitful, selfish, and other conse- baleful necessary case law cited above all that is is quences, provision was inserted give that the act a “clue” as to its content (emphasis the Constitution.” Id. at 246 deceitful, act selfish or be added). consequences. result in “baleful” challenged provide the Do the titles budget—a budget— HB 474 is a biennial reader a clue as to the contents of the act? directing expenditure literally bil- perpetrate Do the Did the acts fraud? lions of dollars to used in the be providing General a title to government. The there- of state placing juxtaposition it in with the acts modify expenditure of that something the content of the acts effect prob- of a financial of monies the event deceitful, selfish or baleful? We think not. clearly appropriations, in the broad lem are challenged The 294 title is as follows: SB people’s Appropriation of the mon- sense. relationship relating to the “AN ACT ey responsibility of the is the exclusive Kentucky Revised bill Assembly, including Statutes, declaring emergency.” modify appropriation un- suspend or such challenged paragraphs of two SB emergency financial circumstances. der Assembly’s right 294 limit Moreover, suspension such modification per- repeal or amend in a bill but framework obviously part of the whole mit the possibly could budget, and no one modification statutes, such provi- of such deceived the inclusion event that the financial conditions of that the title tells the read- sions. The fact emergency action. The sub- state mandate appropriation for the er that the act is an permits suspension stance of the act thus funding government clearly alerts of state or modification of Revised Stat- with the act deals one to the fact that expresses The act utes bill. including possible “appropriations” relationship to all exist- of a to have changes. person No could claim ing statutory primarily what law—which HB 474 by the title of because been misled “germaneness” says it does. The the title sets a course the content of the act specious. argument here is little short of condition of the financial action when believe deteriorates. We HB the biennial Commonwealth

The title of clearly complies follows: HB 474 that the title of Sec. 51. Const. appropriations for relating to “AN ACT maintenance, support, operation, (B) THE PORTIONS DO CHALLENGED functioning government of the THE WITH HB 474 COMPORT OF Kentucky and its vari- Commonwealth of CON- OF KENTUCKY PROVISION officers, cabinets, departments, ous STITUTION, RE- 51 THAT institutions, commissions, SECTION boards, subdi- QUIRES STAT- visions, sup- AMENDMENT OF agencies, and other state AT LENGTH? BE DONE ported activities.” UTES TO not 51 is part of Section second HB provisions of The various contested This so-called litigated as the nearly so often of funds from provide for the transfer proceed to examine the chal- purpose of section We now “title” section. The this lenged statutory provisions that are before explained by one perhaps best of appeal they determine if re- us on this framers: they statutes or if peal or amend Assembly “The members of the General modify existing statutes merely suspend or they voting for did not know what were and are therefore valid. time, pro- and this section ... half the an act is amended ... shall vides when full, every so man will be set out STATUTES THE CHALLENGED DO it, voting on understand what it is when REPEAL A OR CONSTITUTE change people and the will know what AMENDMENT TO EXISTING STAT- has been made when see it.” BE OF UTES SO AS TO VIOLATIVE Legislative

Spalding, Chairman of 1 OF SB 294? SECTION Volume n Committee, p. Debates 1. OFFICERS’ SALARIES STATE Convention. the Constitutional document, HB said, court in Board Peniten As the provides in that if Part thereof essence VII Ky. Spencer, 159 tiary Commissioners v. financial condition of the state deterio (1914). 255, 166 S.W. 1017 salary specific rates certain increases layman, any person, lawyer or “When reduced.8 The bill state officers were Legislature, up takes an act of the provided then for annual increases which changes understand what have read and provided partic for in the are less than are law, ought in an old he been made tem statutes. Such reduction is ular cited he before him the act that have expiring end of the porary only, at the ap- reading the whole of the law as it ac upheld court this biennium. The trial by the pears amended or revised when Assembly saying that the General “... tion at 1024 new act...” Id. previously has the part may This of Section 51 be described a sub authorized salaries publication re- as the re-enactment clearly germane appropriations.” ject stated, that As its quirement of section. agree. We wording application is limited its own upheld budget appro- Mattingly, we amendment, revision, confer- extension or prior statutory au- priation “repealed” ring statutes. Its is to Athletic Board of Con- thorization for the practices provide and to prevent deceitful also, v. ex rel. McLeod trol. See State easily information to full and accessible (1971). Mills, 180 S.E.2d 638 256 S.C. public when the Gen- legislators and statute, As- As we view effecting existing is so law. eral premise its action— sembly has—as a challenged statutory enactment falls If a shaky condition of financial cited activities, opposed proscribed its dis- within It has exercised Commonwealth. nature, it being suspensory in merely performed has its constitu- nay, it cretion— part operating 51. obligation of this second violative tional —that is, however, budget, merely a If it within balanced Commonwealth modification, reducing expenditures thereof. in areas which it it is not violative 294(2), proper appears proper. It has exercised restriction SB felt were The same It has judgment. legislative restricted discretion wherein existing sala- repealed amended the Const. same limitation itself to the statutes, temporarily sus- simply has ry Sec. 51. ernor, General, (Common- Attorney Superintendent Pub- They KRS 15.755 are as follows: Instruction, Agriculture, (County Commissioner of Attorneys); Attor- lic Secretary KRS 15.765 wealth Accounts, State, (State Employees); Auditor of Public KRS neys); KRS 18A.355 (Jus- Court); (Elective Supreme Clerks); and KRS 64.485 (Circuit Clerk of KRS 64.480 64.055 Justice). Governor, Judges the Court of tices and Lieutenant Gov- Statewide Officers — pended them, clearly Assembly power has the has the under Section Brown, do. supra. 294(2). Kentucky LRC v. SB 15 of the Constitution and under suspend, KRS 48.315 “to for the duration 2. AND TRUST AGENCY FUND biennium, Kentucky of the sections of the TRANSFERS pertain Revised Statute that to trust and agency agree in part. funds.” We statutory Under traditional scheme, Assembly the General has created repeat We when say ourselves we agency what are called “trust and funds.” Assembly has, constitutionally the General Basically, any agency, when affected speaking, bill to commission, board, entity or other of state repeal pub- the manner in amend which government fees, rental, sales, receives Ky. 51, lic funds are Const. used. Sec. income, proceeds, gifts, bond or other those section, “title” has not been violated specifically appropriated monies are by the relating clearly appropriations. matters govern General to those units of simply What we decide that the transfers II, Budget, ment. Trust Agency Part merely of temporary, funds which are de- Funds; KRS 45.253. suspensions operation of the terminable of relating appropriations the statutes budget bill, of present and based on public legislative funds are within au- premise the same of the financial condition thority SB state, as set out in 294 and Const. of the Assembly provid- the General Sec. the amendment section. “suspension” ed for the of enumerated “provide statutes to for the transfer of However, of funds the transfers agency special certain funds to the private of appropriations relate to contribu- general Budget Memorandum., fund.” at suspensions tions cannot be termed or mod- i.9 Not does the document ifications of the of the statutes. transfers, provide are also Because the has no au- General authorized KRS 48.315.10 statute. thority private to transfer funds to the fund, challenged general money transfer of In each of of from transfers funds, enabling agencies public private act created a in which funds and reduction employee commingled, are agen- the funds available the affected contributions differentiated, upheld cy. validity The trial court and cannot be unconstitu- transfers, from declaring these tional. Diversions Em- General 61.580; 64.345; 64.350; 161.420; 100; 61.470; brevity, we will 9. In the interest of not discuss 164A.110; 164A.800; 161.430; 164A.020; length. say these at Suffice it to that the Attor- 216A.110; 230.400; 164A.810; 230.218; 230.398; ney complains following of the items— 248.540; 248.550; 278.130; 230.770; 235.330; Authority, Kentucky Development Finance re- 278.150; 287.485; 304.35-030; 311.450; $100,000 lapsing year quired each fiscal 311.- 313.350; 314.161; Fund; 610; 312.019; 315.195; University Kentucky, 316.- the General 317A.080; 319.131; 320.360; 210; 317.530; $500,000 321.- from the Tobacco Research transfer 320; 322.330; 322.420; 323.080; Fund; 322.290; Department of 323.- Fund Trust 323A.060; 323A.210; Securities, 190; 323.210; 323A.190; $3,000,000 Banking transfer of 325.250; 327.080; Fund; 324.410; 326.120; Fish and Wildlife Re- 324.286: 330.050; to the General 334A.120; 335.140; 342.122; 344.160; sources, $1,128,000 lapsing in 1984-1985 and 342.480, 1985-86; $1,150,000 general and a etc. transfer the General Fund. See Bud- various amounts to (2) moneys agency The transfer 19, 35, 49, Document, anyone get For Item funds, funds, special gen- or other funds to the specific the 47 authorized who desires to read (1) provided eral fund for in subsection Bill, transfers, Budget Item VIII.' see period specified section shall of time be for bill. “(1) general (3) Any 10. KRS 48.315 is as follows: provisions statute in conflict (1) (2) assembly may provide provisions bill for the of subsections with the hereby suspended general fund for the transfer this section are or modified. funds, part agency Such modification shall not ex- fund all funds, beyond funds established under tend bill. or other the duration 21.347; 15.430; 16.565; (Enact. July § Acts ch. effective of KRS 42.500; 47.010; 21.560; 1984.)” 21.540; 48.010(g); 56.- said, ployees System, County previously, Retirement Em- that statute. As we have by the “conflict” is authorized SB 294. ployees System, Retirement State Police System, Retirement and Teachers’ Retire- reasoning applies The same to the second System category, ment fall within this provision in contested this section. In addi- Compensation do Workers’ and Workers’ tion, this action of the General Special employee Claims Fund. The contri- by was authorized a 1984 statute. KRS company butions and the insurance assess- 45.760(12)is as follows: private, mandatory ments constitute dona- “(12) general assembly may provide The private tions.11 To the extent that funds budget capital bill for the construc- transferred, were we reverse. equipment purchase contingency tion and

fund to used to advance funds to be projects by authorized to be financed 3. TRANSPORTATION PROVISIONS bonds, feasibility and to finance studies The bill directs that the Sec projects may contemplated for which Transportation retary of the Cabinet shall funding.” for future use road fund resources to meet lease rent Assembly thereby specifical- The General payments Kentucky Turnpike al to the Au statute, ly authorized another ac- thority. provides It further that tion which it took in the doc- event such resources are insufficient inconsistency, ument. We find no even if payments, shortage meet shall be met such were relevant to our decision. by transferring receipts coal severance tax 4. FUNDING FOR TEXTBOOKS obligation”. Budget “cover Doc ument, IV, Fund, Assembly, Part Road Item I. The General also bill, permitted through the local provides capital The bill also that school districts to rent textbooks and fur equipment purchase construction and con- imposed year period ther a minimum six on tingency may fund be used to advance selected the Text the use of textbooks projects funds to authorized to be financed I, Budget, book Commission. Part Gener may bonds further be used to fi- Fund, Humanities, al D. Education and feasibility nance studies future 29(c), (b). argued It is that this sec Item projects. Budget, Capital Part V. Con- budget conflicted KRS tion of the with struction, L., Transporation. 156.435(4). trial 156.400 and KRS The Attorney argues The disagreed. agree court We with the trial provision first is in conflict 143.- with KRS court. provision 090 and that the second bill—as in this section conflict with KRS 45.770. The trial court questioned all the sections—the General disagreed inconsistency and found no be- basing its action on the fi- Assembly was existing statutory tween and its vari- nancial condition of state agree result, law. We with the not the acting on the ous entities. It was reasoning, of the trial court. instance, granted in In this local SB 294. provision op- It is clear that the first education can now—at their boards of divests, temporarily albeit and for the same to students. All tion—rent textbooks challenged provisions years. all used for six reason as books shall now be economy objects funds from the these are moves. Both of make They allow local school boards to set out in KRS 143.09012does conflict 342.480), (KRS Spe- Following agencies and Workers’ Claims 11. are the funds tion 342.122). (KRS private which have contributions: cial Fund System Kentucky Employees Retirement provides ex- KRS a scheme for the 143.090 (KRS 61.580), County Employees Retirement penditure of Road Fund Resources. It does (KRS 78.650), System State Police Retirement payment the use of such funds for the authorize (KRS 16.565), System Teachers' Retirement Kentucky Turnpike Authority. 161.420), of rent (KRS System Compensa- Workers’ appropriate individual decisions as contracts—in an economical manner—is whether textbooks shall be loaned or rent- clearly subject appropriation. of an ed to students. agrees Whether one Assembly General saying counties, to this infringement on the effect, traditional use of give you $900,000 “we will in aid textbooks, “free” one challenge cannot you qualify but don’t unless the contract Assembly’s General right to make you such a obtain is the most economical and feas- policy decision. The logic applies same ible one.” It seriously argued cannot be extending the use of period books for a appropriation that this is not and therefore years.13 six germane.

We believe therefore that not is the There “wrap up” is no need to opin- action of the Assembly General in the bud- lengthy ion with a summary. The General get bill valid as a or modifica- Assembly has the pow- basic constitutional existing statutes, tion of we also believe er responsibility spend to tax and to that, is, effect, there no real conflict. public’s money. power, This as we prior decisions,

have seen in is exclusive to 5. FUNDS FOR Assembly MEDICAL CON- General and includes the power

TRACTS use a repeal, bill to amend, modify existing stat- The provided $900,000 utes. Such must be exercised within fund for medical service contracts for coun all constitutional proscriptions, including ty jails. provided condition, It also that those of Section 51. The General Assem- that fund be maintained in an individual bly, questioned in the statute hereinbefore specifically contracts, account for medical relying described and specific on its own county furthermore that a must be statutory authority, precisely did that. “certified” before it received its share of funding. certified, In order judgment to be so The of the trial court is af- county must attest that it has investi firmed. gated and obtained the “most feasible

medical possible.” contract or contracts STEPHENS, C.J., GANT, LEIBSON, contract(s) subject approval STEPHENSON, WHITE and WINTER- I, Corrections Cabinet. Budget, Part SHEIMER, JJ., concur. Fund, Corrections, General C. Item 27d. VANCE, J., dissents, and files a dissent- Support. Local Jail ing opinion. by appellant It is claimed provi- that such VANCE, Justice, dissenting. sion inis conflict with KRS 441.045.14 It is argued bill contains “sub- 51 of the Constitution requirement stantive law” and that such a provides: appropriation. an The trial court “No law enacted the General Assem- disagreed and so do we. bly shall relate to subject, more than one altogether litany

It is an too familiar that expressed title, that shall be premise provision of this is to revised, amended, react to and no law shall be the financial crunch of the state and that provisions thereof extended or con- only temporary. such directive is It is also ferred reference only, to its title say attempt too familiar to that this revised, so much amended, thereof as is Assembly regulate tempo- conferred, General even extended or shall be re-enact- procurement by rarily, medical published length.” services ed and at Although permits Superin- procedure the statutes 14. KRS 441.045 sets out the as to tendent of Instruction authorize the use of money how counties are to obtain from the (KRS years textbooks for more or less than six Nothing appears state for medical contracts. 156.400), specifically the statute allows the Gen- procedure. therein about the certification period make eral its own budget bill. KRS 156.440. “ important This section two contains re- ‘The provision have many been Among strictions that relate to the stated transaction times. them is important purpose prevent business of the sur- in an prise fraud, and the enactment of vi- orderly intelligent provi- fashion. The legislation cious under innocent and relating sions provisions title and the misleading Therefore, title. the title relating to republication in full of amended give must fair and reasonable notice of preserve statutes the significant purpose of the nature and of the Act so preventing legis- confusion in the minds of legislature a member lators as to the effect proposed legisla- person other reading interested the title tion. may obtain a notice or knowl- court, ago, Our some expressed time the edge of the contents of the orAct what it purpose of this amendment. In v. Talbott proposes to do. The title must be a true Laffoon, (1935), 79 S.W.2d 244 although not a detailed index of con- ' we said: restrictive, If tents. it is then the Act Constitution, “Section 51 of our and like must not specification exceed the or in- provisions in of clude reasonably Constitutions other what is not proper- ” ly states, germane comparatively is of connected or origin, modern with to it.’ purpose people and the of in incorpo- at Id. 220 S.W.2d 1019. part rating it as a of their fundamental In Board Penitentiary v. Com’rs of prevent law towas the evil that had Spencer, 255, 166 159 Ky. (1914), S.W. 1016 grown up legislating of in upon one act this court requirements considered the of many as wholly distinct and disconnected Section 51 of the pur constitution and its subjects legislative fit, as the body saw poses regards as it republication of any without indication in the title of the discussing amended statutes. After some act might as to what its contents be. practices attempted of adop before the adoption provision, Prior to the such of a present tion Section 51 of the constitu clearly the title to an act might tion, indicate we said: specifically that it related a named that, readily “It can be seen under this subject, or to a number of named sub- practice, person, by reading no an act the jects, body with the containing pro- of it provisions of which had been extended or wholly visions for a indicated, distinct and uncon- in conferred the manner could subject or subjects any nected meaning than what was obtain idea of the or effect it, in reading mentioned the title. It then without it in com- connection old petent law the of which Legislature legislate law, by had carried been into new upon multiplicity subjects unrelated law; reference to the title of the old nor to, remotely germane which were neither any person, by could reading an old law with, or in wise connected or one amended, that or had been revised title, which, ones named in the as we adding taking to it certain or words advised, yet are is true with reference words, meaning it certain understand the legislation. congressional To circumvent reading effect the old law without deceptive practices resulting such in de- it in connection with the new one that selfish, ceitful, and other baleful conse- or in amended revised it this manner. quences, in provision was inserted largely prevent decep- And it was this alia, requiring, the Constitution inter that misleading legislat- tive and manner of no statute ‘shall relate to more than one ing, many opportuni- which afforded so subject, and expressed that shall be fraud, ties for as as to make the ” well the title.’ accessible, laws more convenient Id. at 246. adopted. aptly As this section was Mescher, subject by Spalding, Board Education v. this Mr. said on Ky. 453, (1949), committee, legislative 220 S.W.2d 1016 we said: chairman “(c) p. That when the act does pur- volume of the Debates not ‘The Constitutional Convention: mem- an port existing to be amendment to an Assembly did law, act, of the General not bers necessary but new it is not voting were for half the know what republish any part or of any set out old time, report pro- and this section may changed repealed or law that an act is it shall not vides when amended new law. act, way, in that be amended “(d) purports When act the new amended, full, shall be set out so act extending, amend re- it every man will understand what it, vising, amending particular or and no it, voting people on will when part specified, it is section then the change made what has been when know body set new act must forth the they see it.’ act as it appear whole will “This was whole extended, revised, amended; when Constitution, and that provision in it but, only a if or several section sections provision open to doubt. is a wise extended, revised, of an act are layman, any person, lawyer or When amended, only necessary specify Legislature, up an act of the takes republish the section or sections that changes have read and understand what extended, revised, or are amended. law, ought in an he made old to been That, “(e) when it is desired to confer him he in the act that is have before carry provisions into an or a new law of it reading ap- the whole the law as of law, old then so much of the old as is law by revised the pears when amended or into thus conferred or carried the new act, and so convenient the new the length.” published must be at law way to amend an proper revise or old S.W. Id. at 166 at 1022-1023. law, taking adding it or either to it, extending provisions, its is to set or purposes to It seems me that it in the new law as will forth act the impelled the framers of the constitution to revised, amended, or extend- read when upon imposed place the limitations the Gen- ed.” consti- eral at 166 S.W. 1023-1024. ought Id. not inherently tution were sound vanishing point by eroded to be Penitentiary Com’rs v. Board of interpretation. judicial Spencer, supra, also established court concerning republication of guidelines legislation ques- us examine the Let as amended statutes follows: entitled ACT Senate Bill 294 is “AN tion. “(a) necessary, is when the That it relating relationship to the of or has the body repeals, of the new act Statutes, Kentucky Revised bill to part of an repealing, all or effect of This declaring emergency.” an innocuous act, republish forth the existing or set unsuspecting an scarcely would inform title although the title of the parts repealed, providing really an act legislator that it is may purport to be repealing act suspension, amendment, repeal, or for the act. amendment through statutes modification “(b) proposed it to revise That when sepa- provisions included various to be or sections amend one more or view, my budget bill. In title rate Statutes, act, body or an misleading. the bill the section or act should contain the new test. Section 6 of Even worse is the revised they will read when sections provides: Bill 294 Senate amended, to re-enact proposed if it is of the section any part in force or leave 6. A NEW SECTION OF SECTION or revised. that are amended sections 48 IS CREATED KRS CHAPTER repeal If, however, one it is intended FOLLOWS: TO READ AS sections, necessary it is not then or more “(1) general assembly may pro- body of the act the forth to set for the transfer vide repealed. or sections section upon general subject transfer fund funds were all general part agency passage fund Senate Bill The inclusion funds, funds, special string at the end of enu- or other funds es- “etc.” tablished under the of KRS merated statute numbers would seem to 15.430; 16.565; 21.540; 21.560; 21.347; more make even uncertain what transfers 47.010; 42.500; 56.100; 48.010(g); uncertainty be authorized. Such 61.- were to 470; 61.580; 64.345; 64.350; 64.355; legislation regard 78.- with to the effect 650; 150.150; 95A.220; 136.392; 138.510; precisely the evil that Section 51 of our 154.150; 161.420; 161.430; 164A.110; designed prevent. constitution was ' 164A.020; 164A.810; 164A.800; bill, entirely separate An Bill House 216A.110; 230.218; 230.398; 230.400; enacted into the trans- law 230.770; 235.330; 248.540; 248.550; 278.- Bill fers authorized Senate 294. House 130; 287.485; 304.35-030; 278.150; 311.- relating Bill “AN 474 was entitled ACT 450; 314.161; 311.610; 312.019; 313.350; operation, appropriations mainte- 315.195; 316.210; 317.530; 317A.080; nance, support, functioning 320.360; 319.131; 321.320; 322.290; 322.- government of the of Ken- Commonwealth 330; 323.210; 322.420; 323.080; 323.190; officers, cabinets, tucky and its various de- 323A.060; 323A.190; 323A.210; 324.286; boards, commissions, partments, institu- 325.250; 324.410; 327.080; 326.120; 330.- tions, subdivisions, agencies, and other 050; 344.160; 334A.120; 335.140; 342.- state supported activities.” 122; 342.480, etc. funds, respect With to the transfers of “(2) The transfer of monies from the provided agency for a from the transfer agency funds, special funds, or other general funds fund cer- funds to the provided fund for in tain enumerated dollar amounts from cer- (1) subsection of this section shall for be cases, agencies. tain enumerated In most period specified of time agency trans- from which funds were bill. by existing designated ferred an was “(3) Any provisions any statute in agency which identified the K.R.S. number the provisions conflict with of subsec- designated the and which fees and monies (1) (2) tions and hereby this section are appropriated agency by which to the were suspended or modified. Such existing statute, purposes shall beyond modification not extend in those manner fees and funds the duration of the bill.” were to used. be provides: of Senate Bill 294 reading legislator No could tell purposes House Bill 474 the for which the A SECTION 7. NEW SECTION OF required be used transferred funds were KRS CHAPTER 48 IS CREATED In by existing statute. a session limit- TO READ AS FOLLOWS: biennium, days in which ed to 60 each provisions “To the extent that the of a introduced, it is not hundreds bills are any in provi- bill are conflict with legisla- expect that an individual realistic to 42, 56, Chapters 12, sions KRS tor could research each the statutes chap- those in Bill 474 to determine enumerated House hereby suspended ters are or modified. advisability transferring for himself suspension or Such modification shall not away particular agency. funds from that beyond of the extend duration instance, purports In Bill 474 one House bill.” $3,980,000.00 from “Reinsur- transfer fund, but of the ance Association” to the No member possibly by reading the no is made to the statute which could have idea reference purpose agency Bill what association or to the language of Senate created the to be in which its funds are funds were created the 70 enumerated manner possibly and could not know what used. statutes existing not statute. The legislators does necessity, the individual

Of intact, impossible existing except to determine the is left find it statute would Bill 474 from a read- import portion full of House extent that a of the funds not, language, and ing express of its siphoned off agency could use of the has been therefore, import of their know the full purpose. a different This does not against the voting for or action either existing it suspend the statute but modifies that Sec- just It is such uncertainties bill. a modification is temporarily. Because designed tion 51 of our constitution amendment, temporary, the effect an albeit prevent. existing law as modified is full text of the required published. to be

Furthermore, only the loosest in- under gener- transfer to the terpretation does the I the General Assem- do not doubt that appropriated agency to an al fund of funds appropriations bly power has the to control existing anything to do by an statute have power has the expenditures, nor that it subject appropriation. These appro- repeal or to amend statutes which They appropriate money. not transfers do manner in priate money provide under stat- appropriations rescind used. which it shall be pre- transferring money which was utes Depart- can, example, an abolish the It as by a agency to an viously made available Resources Com- ment of Fish and Wildlife exists on the statute statute which still which cre- by repeal of the statute mission so, doing the exist- this state. books of direct that power has the ated it. It statutes, my opinion, were amended ing by the licenses issued money derived from therefore re- budget bill and were by the different be used for a commission 51 of the constitution quired by Section 150.150, by K.R.S. but provided than that as amended. republished amending K.R.S. 150.150 done must be these opinion states that majority in full as amended. republishing it amendments, only suspen- but were existing stat- sions or modifications provides: 150.150 K.R.S. Assembly, in Senate The General utes. chapter, “(1) Except provided this Bill divested itself li- the sale of moneys derived from all by a statute repeal or amend connect- any other source or from censes granted unto itself chapter of this the administration ed with modify existing stat- suspend or power to the state paid over to promptly shall be utes. moneys treasurer, deposit such who shall question that beyond to me It seems fund, game and as the known relate to repeal amendment of statutes and fish fund shall game The and fish fund. Assem- of the General permanent actions purposes of carry out the used to be for suspension of a statute a bly, whereas the regulation for any law or chapter and budget the duration of biennium the fish, animals, birds of wild protection A repeal. temporary is in effect bill purpose. no other and for statute, the limited to of a modification KRS under “(2) funds received All temporary budget is a bill biennium be 150.110, 150.520 shall 150.510 and amendment. purpose department for the by the used unless re- is not valid If amendment for the and enforcing those sections of amended, follows that a it published as mussel of propagation and protection pub- must also be temporary amendment remaining in the fund Any surplus beds. in full. lished year shall each calendar close of at the the fund of into the be turned agency funds of various The transfer (1954d-10, 1954d-48: department. many instanc- conflicts in general fund the 15; 1952, 68, ch. 1942, ch. Acts § amend. purpose and manner express es with the 1978, 6; ch. 22; ch. § those funds requires § law which 17, 1978.)” 384, 33, June effective used, bill the transfer § and be 453 provides game This statute and from state current revenues. Revenue purposes fish fund used for specified to finance bonds are used road construction and the statute no other The purpose. projects, transportation department and the for $225,000.00 purports to bill transfer roads, then and pay- leases the the lease Department of the funds of the and of Fish to retire principal ments are used the gen- Wildlife Resources Commission the interest on bonds. eral fund with no limitation on manner Although technically an indebtedness spending. of The not re- bill does state, of these bonds have created an peal because, 150.150 except K.R.S. must, obligation practical as a mat- transferred, funds the statute will continue ter, out of be satisfied current revenues does, operative. to be The bill how- because a default would ruin the credit ever, amend K.R.S. 150.150 because expenditure the state. The of current away designated takes funds which were pay funds to necessary leases specific purpose for a and diverts them to principal retire interest on revenue purpose. another Because 150.150 K.R.S. substantially responsible bonds is for a cur- amended, was so but its not re- text was shortage rent critical of funds available published by required or amended as department transportation for other constitution, legislator Section would purposes. not know the effect that the upon would have the De- purpose One of Sections our 50 of partment Fish and Wildlife Resources prevent constitution is a current adminis- thing Commission. same of all true obligating tration from tax revenues other where cases the transfer funds hap- a future administration. What has agencies commissions the bud- pened is that Sections 49 and 50 of get express bill contravenes circumvented, constitution have been statutes. matter, practical past as a administrations permitted obligate I have been tax remain convinced that the intent purpose present Section 51 of the revenues of the and of ad- constitution future sound, and that erosion begin of its effectiveness We now ministrations. to feel by judicial interpretation long will in the I consequences. mention this as an exam- run consequences. lead to unfortunate ple easy impatient to become because it imposed by with restrictions our constitu- danger Recent events teach us pru- tion. 51 serves a sound and circumventing the constitution. Sections view, purpose, my impor- dent and in it is prohibit and 50 our constitution very interpret prevent tant it to that we $500,- public creation of debt excess of designed prohibit. abuses it except upon 000.00 bonded the vote of a people, accompanied indebtedness I all of the would hold contested sections specific the enactment of a tax for the un- of Senate Bill and House Bill 474 liquidating and in- principal to the extent violate constitutional terest on the indebtedness. Notwithstand- Section 51 of the Constitution salutary ing principle, economic expressed the manner in this dissent. state has issued millions of dollars of reve- nue without a vote of people bonds to re- specific

without enactment of a tax up-

tire the bonds. bonds have been upon theory

held the courts be retired de- are to from revenues projects bonds

rived from financed bonds do not that such constitute Many the state.

indebtedness

projects produce financed these bonds taken apart money

no at all revenue

Case Details

Case Name: Commonwealth Ex Rel. Armstrong v. Collins

Court Name: Kentucky Supreme Court

Date Published: May 1, 1986

Citation: 709 S.W.2d 437

Court Abbreviation: Ky.