Could Louisiana pay state purchasing-card bills that arose before a new appropriations act took effect?

Plain-English summary

Louisiana's administration commissioner asked whether agencies could keep using state purchasing cards at the start of a fiscal year if the general appropriations act had not yet taken effect. The cards paid vendors for low-cost goods; a service provider billed the state monthly, and an automated payment followed later in the month. The Attorney General distinguished when the bill accrued from when treasury money could be paid out.

The AG said the service provider could be paid once the appropriations became effective, even for card charges arising after the fiscal year began and before the act was signed, where the act specified a July 1 effective date. Until the act became effective, no money could be withdrawn from the state treasury. The opinion relied on the same timing analysis the office had used for salaries and liabilities in Opinion 79-930.

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

Could agencies use purchasing cards before the appropriations act was signed?
The AG answered the commissioner's concern by saying the service provider's charges could be paid when the appropriation became effective. The opinion treated charges accrued during the interval separately from an immediate withdrawal of treasury funds.

Could the state pay the card provider before the appropriation took effect?
No. The AG explicitly said no money could leave the state treasury until the appropriations act became effective.

What if the act was signed after July 1 but specified July 1 as its effective date?
The AG concluded that the provider could be paid when the appropriations became effective, as the then-anticipated act would cover obligations from the start of the fiscal year.

Background and statutory framework

The office quoted Louisiana Constitution Article III, Section 16(A) and Article VII, Section 10(D), both addressing appropriations before treasury withdrawals. It also cited its earlier Opinion 79-930 and Article III, Section 19 for the effect of an appropriations act with a July 1 effective date. The source's opening index and closing syllabus say “Article VIII, §16” and “Article VIII, §19”; its analysis says Article III. This page follows the analysis and flags the source discrepancy rather than silently changing the original text.

Citations and references

• Article III, Section 16(A) of the Louisiana Constitution
• Article VII, Section 10(D)
• Article III, Section 19 of the Louisiana Constitution
• Op.Atty.Gen. 79-930

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/01-0112

Original opinion text

April 12, 2001
Opinion Number 01-112

8 Appropriations Constitutional Law
Mr. Mark C. Drennen
Article VIII, §16, Article VIII, §19 and Article VII, §10
Commissioner of Administration
Division of Administration
State Visa bills which accrue prior to effective date of
appropriations act but after beginning of new fiscal year,
P.O. Box 94095
can be paid when the appropriations act becomes
Baton Rouge, LA 70804-9095
effective.

Dear Mr. Drennen:

You requested the opinion of this office concerning the timing of the payment of purchasing cards. The program allows state agencies to use VISA credit cards to purchase low dollar goods from various vendors.

You advised that the service provider bills the State on the 5th of each month. The ACH payment to the service provider for these charges is scheduled to automatically issue on the 25th of each month. In July, the statement billing will cover the period of June 5th through July 5th. Your concern is if the General Appropriations Act is not effective until after July 1st, whether the Louisiana Constitution would prohibit the use of the purchasing card until such time as the Appropriations Act is fully enacted.

As you noted in your opinion request, Article III, Section 16(A) of the Louisiana Constitution states “Except as otherwise provided by this constitution, no money shall be withdrawn from the state treasury except through specific appropriation, and no appropriation shall be made under the heading of contingencies or for longer than one year.” Article VII, Section 10(D) states “(1) Except as otherwise provided by this constitution, money shall be drawn from the state treasury only pursuant to an appropriation made in accordance with law...”

Op.Atty.Gen. 79-930 involved a similar question, where the 1979 Appropriations Act did not become effective until July 10, when the bill was signed by the Governor. The issue was whether employees’ salaries and liabilities accruing from July 1 through July 10 could be paid. This office determined, based upon Article III, Section 19 of the Louisiana Constitution that because the Act specified a July 1st effective date, then all salaries and liabilities which accrued from July 1 through the 10th payable from funds appropriated in the 1979 Appropriations Act could legally be paid as the Act was effective on July 1, 1979.

Page 2

Likewise, in this instance where the majority of the provisions in the Appropriations Act will have an effective date of July 1, 2001, whether the Appropriations Act is signed by the Governor before or after July 1, payment can be made to the Visa service provider, once the appropriations become effective. Of course, until the Appropriations Act becomes effective, no money may be withdrawn from the state treasury.

Trusting this adequately responds to your request, we remain

Yours very truly,

RICHARD P. IEYOUB
Attorney General

BY:
MARTHA S. HESS
Assistant Attorney General

RPI/MSH

Page 3

Opinion Number 01-112
Mr. Mark C. Drennen
Commissioner of Administration
Division of Administration
Page -3-

Opinion Number 01-112
Syllabus

8 Appropriations Constitutional Law

Article VIII, §16, Article VIII, §19 and Article VII, §10

State Visa bills which accrue prior to effective date of appropriations act but after beginning of new fiscal year, can be paid when the appropriations act becomes effective.

Mr. Mark C. Drennen
Commissioner of Administration
Division of Administration
P.O. Box 94095
Baton Rouge, LA 70804-9095

Date Received:

Date Released: April 12, 2001

Martha S. Hess
Assistant Attorney General