Could Louisiana pay blue crab tariff legal fees from a dedicated fund without an appropriation?

Plain-English summary

A legislator asked whether Louisiana could pay an invoice for the Blue Crab Coalition's legal fees from a dedicated fund, using a budget adjustment instead of a new appropriation. The Attorney General said no. The fund held increased crab trap fee revenue, but the existing appropriations act contained no appropriation payable from it. Money in the state treasury could not be withdrawn without one.

The AG said the Joint Legislative Committee on the Budget could not increase an appropriation that did not exist through a BA-7 adjustment. He also identified a separate condition if the department lacked a contract with the law firm: the approval and concurrence described in R.S. 39:1524. The opinion noted uncertainty about whether the legal work had produced the type of tariff or quota named in the fund's purpose.

Currency note

This opinion was issued in 2001. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Was a dedicated fund enough to pay the invoice?
No. The AG said the Legislature still had to appropriate money from the fund before it could be withdrawn from the treasury.

Could the committee use a BA-7 budget adjustment instead?
The AG said no, because the existing appropriations act contained no amount from that fund to increase.

Did the opinion identify any other payment condition?
Yes. If the department had no contract with the law firm, the AG said the approval and concurrence procedure in R.S. 39:1524 also applied to fees properly owed by the state.

Background and statutory framework

Act 19 of the 2000 special session created the Section 201 Petition Fund and dedicated certain crab trap fee revenue to efforts involving imported crabmeat. The AG applied the constitutional appropriation requirement and Act 11's budget language to the coalition's invoice. He also raised the statutory wording because he had been told the legal work resulted in a countervailing duty rather than the named tariff or quota.

Citations and references

• R.S. 56:305 and R.S. 56:16
• R.S. 39:1524
• La. Const. Art. III, §16 and Art. VII, §10

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/01-0067

Original opinion text

March 5, 2001
OPINION NUMBER 01-67

3 Appropriations
Senator Michael R. Robichaux, M.D.
R.S. 56:305, 56:16, 39:1524
District 20
La. Const. Art. III, §16
P. O. Box 45
La. Const. Art.VII, §10
Mathews, LA 70375
Monies cannot be withdrawn from a dedicated fund
Dear Sen. Robichaux,
without an appropriation.

You requested the opinion of this office concerning
a proposed expenditure from the Section 201 Petition Fund (the “Fund”), created in the State treasury by Act 19 of the Second Extraordinary Session of 2000. Act 19, amending and reenacting R.S. 56:305 and enacting R.S. 56:16, provides for an increase in the crab trap gear fee, beginning November 15, 2000 and continuing through December 31, 2001.. The proceeds of the increased fee are to be deposited into the Fund to be used by the Department of Wildlife and Fisheries (the “Department”) “solely to assist efforts by the department, the Blue Crab Coalition, or attempts by other entities, including payment of legal fees incurred, to secure federally imposed tariffs, quotas, or both on imported crabmeat.”

You advised that the Blue Crab Coalition (the “Coalition”) has submitted an invoice to the Department for Louisiana’s share of legal fees incurred. Your question is whether payment can be made by a BA-7 or whether a specific appropriation is needed?

Monies which have been deposited in the State treasury may only be withdrawn pursuant to an appropriation. Article III, Section 16 and Article VII, Section 10 of the Louisiana Constitution. There is no appropriation in the General Appropriations Act, Act No. 11 of the Second Extraordinary Session of 2000 (“Act 11"), for any payments to the Coalition nor any appropriation payable from the Fund.

Section 2 of Act 11 states in pertinent part as follows:

All money from federal, interagency, statutory dedication, or self-generated revenues shall be available for expenditure in the amounts herein appropriated. Any increase in such revenues shall be available for allotment and expenditure by an agency on approval of the commissioner of administration and the Joint Legislative Committee on the Budget.

As there is no appropriation from the Fund, the Joint Legislative Committee cannot increase the appropriation through a BA-7; accordingly, the legislature must enact a specific appropriation in order to pay any legal fees that Louisiana incurred in order “to secure federally imposed tariffs, quotas, or both on imported crabmeat”.

It must be noted that if the Department did not have a contract with the lawfirm, it cannot pay any legal fees properly due and owing by the State unless the Department obtains the approval of the commissioner of administration and the concurrence of the Attorney General in accordance with R.S. 39:1524. We have been advised that the lawfirms’ efforts did not result in a federally imposed tariff and/or quota, but rather in a countervailing duty; if this information is correct, we would suggest that the language set forth in R.S. 56:16 be amended to accurately reflect for what purposes the monies in the Fund can be used.

Trusting this adequately responds to your request, we remain

Page 2

OPINION NUMBER 01-67
Senator Michael R. Robichaux, M.D.
District 20
Page -2-

Yours very truly,

RICHARD P. IEYOUB
Attorney General

BY:
MARTHA S. HESS
Assistant Attorney General

RPI/MSH

xc: James Patton

Page 3

OPINION NUMBER 01-67
Senator Michael R. Robichaux, M.D.
District 20
Page -3-

Opinion Number 01-67
Syllabus

3 Appropriations

R.S. 56:305, 56:16, 39:1524
La. Const. Art. III, §16
La. Const. Art.VII, §10

Monies cannot be withdrawn from a dedicated fund without an appropriation.

Senator Michael R. Robichaux, M.D.
District 20
P. O. Box 45
Mathews, LA 70375

Date Received:

Date Released: March 5, 2001

Martha S. Hess
Assistant Attorney General