[PUBLISH]

IN THE UN ITED STATES COURT OF APPEALS

FOR THE ELE VENTH CIRCUIT

No. 1 0- 14 28 2

D. C. Dock et No. 2 :1 0- cv -0 18 50 -WMA

NATALIE V ERSIGLIO,

Pl ai nt iff -Ap pe ll ee,

ve rs us

BOARD OF DENTAL EXAMINERS OF ALABAMA,

Defen da nt -Ap pe ll an t.

App eal fro m

th e Uni te d S ta te s Di st ric t Co ur t fo r th e Nor th ern Dis tri ct of Al ab am a

(J ul y 13 , 20 12 )

ON PETI TI ON FOR REHE ARING

Befo re DUBINA, Ch ie f Ju dg e, EDMONDSON and W ILSON, Cir cu it Ju dg es

. DUBINA, Ch ie f Ju dg e:

Case: 10-14282 Date Filed: 07/13/2012 Page: 1 of 45The re i s p res en tl y pe nd in g i n t hi s ca se a pe ti ti on for reh eari ng fil ed by the

App el la nt Bo ard of De nt al Exam in ers of Al ab am a (t he “ Bo ard ”). W e g ran t t he

Bo ard ’s pet it io n fo r reh eari ng , vac at e o ur pri or pa ne l o pi ni on in th is cas e, is su ed

on Aug us t 2 6, 2 01 1, an d p ub li sh ed at 6 51 F.3d 12 72 , and su bs ti tu te th e fo ll owi ng

op in io n i n l ie u t he reo f. After a rece nt de ci si on by the Alab am a Su pr em e Co ur t,

we no w rev ers e th e d is tri ct co ur t’s jud gm en t fi nd in g t ha t t he Bo ard do es no t

co ns ti tu te an arm

of t he Sta te of Al ab am a an d i s t he refo re n ot en ti tl ed to so ve rei gn

im m un it y fro m su it s.

In th e p res en t ca se , th e Bo ard ap pe al s t he di st ric t co ur t’s jud gm en t d en y in g

it so ve rei gn im m

un it y pro te ct io n a s an arm

of t he Sta te of Al ab am a. App el le e

Nata li e Vers ig li o c on te nd s t ha t t he Bo ard is su ffi ci en tl y in de pe nd en t fr om

th e

St at e o f Ala ba m a th at it is no t en ti tl ed to Elev en th Am en dm en t i m m un it y an d t ha t

he r cl ai m un de r th e Fai r Lab or Sta nd ard s Act sh ou ld be all owe d t o c on ti nu e.

Thu s, t he qu es ti on be fo re t hi s co ur t i s wh et he r th e Bo ard is an arm of t he st at e an d

pr ot ect ed fro m

su it by sov erei gn im m

un it y . Bas ed on a rece nt de ci si on by the

Alab am a Su pr em e Co ur t, W il ki ns on v. Bd. o

f Den ta l Exa m’rs of

Ala

. , __ So . 3d

.

2 Case: 10-14282 Date Filed: 07/13/2012 Page: 2 of 45__ , 20 12 W L 18 90 67 7, 2 01 2 Al a. LEXIS 69 (Ala . May 25 , 20 12 ), we co nc lu de

th at it is an d we r ev ers e th e jud gm en t o f th e d is tri ct co ur t. 1

I.

In Man de rs v. Lee , th e Ele ve nt h C irc ui t n ot ed th at “ [i]t i s al so well -s et tl ed

th at Elev en th Am en dm en t i m m un it y ba rs su it s b ro ug ht in fed eral co ur t wh en th e

St at e it se lf i s s ue d a nd when an ‘ arm of t he Sta te ’ is su ed .” 33 8 F .3d 13 04 , 13 08

(1 1t h C ir. 2 00 3) . W he th er an ag en cy qu al ifi es as a n a rm

of t he st at e is a fed eral

qu es ti on wit h a fed eral st an da rd , bu t wh et he r th at st an da rd is m et wil l b e

de te rm in ed by carefu ll y

rev ie win g h ow t he ag en cy is de fin ed by stat e la w.

Reg en ts of

th e Uni v. of

Ca l. v. Do e , 51 9 U.S. 4 25 , 42 9 n .5, 1 17 S. Ct. 9 00 , 90 4 n .5

(1 99 7) (“ Ult im at el y , of c ou rs e, th e q ue st io n wh et he r a p art ic ul ar s ta te ag en cy ha s

th e sa m e k in d o f in de pe nd en t s ta tu s as a co un ty or is in st ead an arm of t he Sta te ,

an d t he refo re ‘on e o f th e Uni te d S ta te s’ wit hi n t he m ean in g o f th e Ele ve nt h

Am en dm en t, i s a q ue st io n o f fed eral law. Bu t t ha t fe de ral qu es ti on can be

an swe red on ly after c on si de rin g t he pro vi si on s o f st at e la w th at de fin e th e

ag en cy ’s cha ract er.”) ; Tu ves on v. Fla . Gove rn or ’s Co un ci l o n In di an Aff ai rs , Inc

. ,

73 4 F .2d 73 0, 7 32 (11 th Cir . 19 84 ) (“ The st at e la w pro vi de s as si st an ce i n

“The g rant or de nial of a state ’s sovere ign immunity defe nse is an issue of la

w subject to 1 de novo revie w by

this court.” Garrett v. Univ. of Ala. at Birmingham Bd. of Trs. , 344 F.3d 1288, 1290 (11th Cir. 2003) (pe r cur iam).

3

Case: 10-14282 Date Filed: 07/13/2012 Page: 3 of 45as cert ai ni ng whet he r th e st at e in te nd ed to crea te an en ti ty com pa rab le to a co un ty

or m un ic ip al it y

or o ne de si gn ed to tak e ad va nt ag e o f th e st at e’s Elev en th

Am en dm en t i m

m un it y .”). Sta te s h av e “ ex tre m el y wid e la ti tu de in de te rm in in g

th ei r fo rm s o f go ve rn m en t an d h ow s ta te fun ct io ns are p erfo rm ed .” Abu sa id v.

Hil ls bo ro ug h C

nt y. Bd. o f Cn ty . Comm’r

s , 40 5 F .3d 12 98 , 13 03 (11 th Cir . 20 05 ).

Bu t i f a s ta te crea te s an in st it ut io n i n s uc h a way th at gi ve s i t i nd ep en de nc e,

“ [w]hat ev er m ay

ha ve be en th e st at e’s reas on for do in g i t [t ha t] way , it m us t l iv e

wit h t he co ns eq ue nc es . It ca nn ot cla im an im m un it y ba se d o n a co nd it io n wh ic h i t

it se lf s ou gh t t o a vo id .” W il li ams v. Eas ts id

e Men ta l Hea lt h C tr

, Inc

. , 66 9 F .2d

67 1, 6 78 (11 th Cir . 19 82 ). In c on du ct in g o ur an al y si s, t hi s co ur t “ ha s s ta te d t he

m os t i m po rta nt fact or is ho w th e en ti ty has be en tre at ed by the st at e co ur ts .”

Tu ves on , 73 4 F .2d at 7 32 (ci ti ng Hub er , Hun t & Nic ho ls , Inc . v. Arch it ect ur al

St on e Co

., 62 5 F .2d 22 , 25 (5t h C ir.1 98 0) ). 2

II.

W he n t hi s co ur t h eard ora l ar gu m en t, t he hi gh es t co ur t i n t he Sta te of

Alab am a to an al y ze t he is su e o f whe th er t he Bo ard co ns ti tu te s an arm of t he st at e

was th e Co ur t o f Ci vi l Ap pe al s o f Ala ba m a, whi ch fou nd th at th e Bo ard was n ot

I n Bonner v. City of Prichard , 661 F.2d 1206, 1207 ( 11th Cir. 1981) (en ba nc), the 2 Eleventh Circuit adopte d as binding prec edent the de cisions of the F ifth Circuit render ed prior to October 1, 1981.

4 Case: 10-14282 Date Filed: 07/13/2012 Page: 4 of 45an arm

of t he st at e an d n ot en ti tl ed to im m un it y fro m su it in Alab am a st at e co ur ts

.

Se e W il ki ns on v. Bd. o

f Den ta l Exa m’rs of

Ala

. , __ So . 3d

__ , 20 11 W L 12 05 66 9,

at *5 , 20 11 Ala. Ci v. Ap p. LEXIS 8 8, at *1 6 (Al a. Ci v. Ap p. Ap r. 1, 2 01 1)
, re v’d

W il ki ns on , __ So . 3d . __ , 20 12 W L 18 90 67 7, 2 01 2 Al a. LEXIS 69 . Bas ed on th is

de ci si on , we si m il arl y

he ld th at th e Bo ard was n ot an arm of t he st at e an d was no t

en ti tl ed to im m

un it y fro m su it in fed eral co ur ts

. Se e Ver si gl io v. Bd. o

f Den ta l

Exa m’rs of

Ala

. , 65 1 F .3d 12 72 (11 th Cir . 20 11 ). Howev er, o nc e th is co ur t

be cam e aware of t he Alab am a Su pr em e Co ur t’s d eci si on to gra nt th e Bo ard ’s

pe ti ti on for a writ of c ert io rari , we wit hh el d i ss ua nc e o f ou r m an da te th at co ul d

ha ve res ul te d i n t he in co ng ru ou s re su lt of h av in g a “ st at e ag en cy ” th at is im m un e

fro m su it un de r st at e la w bu t n ot fed eral law. Cf

. Ald en v. Mai ne , 52 7 U.S. 7 06
,

79 3 n .29 , 11 9 S . Ct. 2 24 0, 2 28 5 n .29 (no ti ng in a di ffer en t co nt ex t t ha t t he

Fram ers of t he Elev en th Am en dm en t “ wou ld ha ve co ns id ered it ab su rd th at Sta te s

im m un e in fed eral co ur t co ul d b e su bjec te d t o s ui t i n t he ir o wn co ur ts ”).

III.

On M ay 25 , 20 12 , th e Ala ba m a Su pr em e Co ur t i ss ue d a de ci si on ho ld in g

th at th e Bo ard is in fact an arm of t he st at e an d i s en ti tl ed to im m un it y fro m su it s

in Alab am a st at e co ur ts

. W il ki ns on , __ So . 3d . __ , 20 12 W L 18 90 67 7, 2 01 2 Al a.

5 Case: 10-14282 Date Filed: 07/13/2012 Page: 5 of 45LEXIS 69

. In s o h ol di ng , th e Ala ba m a Su pr em e Co ur t co nc lu si ve ly hel d “ th at th e 3

Bo ard is ‘ an arm

of t he st at e’ rath er t ha n a m ere ‘fran ch is ee l ic en se d fo r so m e

be ne fic ia l p ur

po se .’

. . . The refo re, t he Bo ard

. . . is en ti tl ed to im m un it y .” Id . at

__ , 20 12 W L 18 90 67 7 a t * 17 , 20 12 , Ala. LEXIS 6 9 a t * 47 –4 8.

Thi s co ur t g iv es gre at de fere nc e to ho w st at e co ur ts ch arac te riz e th e en ti ty

in qu es ti on . This pra ct ic e is in ke ep in g wi th th e o rd in ary de fere nc e g ran te d s ta te

co ur ts when th ey

in te rp ret m at te rs of s ta te co nc ern

. Se e S il ver be rg v. Pai ne ,

W eb be r, Ja cks on & Cu rt is , Inc

. , 71 0 F .2d 67 8, 6 90 (11 th Cir . 19 83 ) (“ A fed eral

co ur t ap pl y in g s ta te law i s b ou nd to ad he re t o d eci si on s o f th e st at e’s in te rm ed ia te

ap pe ll at e co ur ts ab se nt so m e p ers ua si ve in di cat io n t ha t t he st at e’s hi gh es t co ur t

wou ld de ci de th e is su e o th erwi se .”). Fin di ng no w th at th e Bo ard is no t en ti tl ed to

so ve rei gn im m

un it y wou ld req ui re t hi s co ur t t o i nt erp ret Alab am a la w in a way

th at is di am et ric al ly opp os ed to th e fi nd in gs of t he hi gh es t s ta te co ur t t o c on si de r

th e is su e. W e d ecl in e to do so

.

IV.

Fo r th e afo rem en ti on ed reas on s, we re ve rs e th e d is tri ct co ur t’s jud gm en t

fin di ng th at th e Bo ard is no t en ti tl ed to so ve rei gn im m un it y pro te ct io n a s an arm

of th e St at e o f Ala ba m a.

We have a ttached the Alabama Supreme Court’s opinion as an a ppendix t o this opini on. 3

6 Case: 10-14282 Date Filed: 07/13/2012 Page: 6 of 45REVERSED.

7 Case: 10-14282 Date Filed: 07/13/2012 Page: 7 of 45APPENDIX

SUPREME COURT O F ALABAMA

OCTO BER TE RM, 20 11 -2 01 2

__ __ __ __ __ __ __ __ __ __ __ __ _
11 00 99 3

__ __ __ __ __ __ __ __ __ __ __ __ _

Ex pa rte B oa rd o f Denta l Ex aminer s o f Ala ba m a

PETI TI ON FOR WRI T OF CERTI ORARI

TO TH E COURT OF CI VIL APPEALS

(I n re: Mary Ann Wi lk in so n

v.

Bo ar d o f Denta l Ex aminer s o f Ala ba m a)

(J effe rs on Circ ui t Cou rt, CV-1 0- 90 24 91 ;

Cou rt o f Civ il Appea ls , 21 00 17 5)

8 Case: 10-14282 Date Filed: 07/13/2012 Page: 8 of 4511 00 99 3

W ISE, Ju st ic e.

W e gr an te d th e pe ti ti on fo r a writ of cert io rari f i l e d b y t he Bo ard of Den ta l

Exa m in ers of Alab am a ("t he Bo ard ") se ek in g rev ie w of th e de ci si on of th e Co ur t of

Ci vi l App eal s in W ilk in so n v. Bo ard of Den ta l Exa m in ers of Alab am a, [Ms

. 21 00 17 5,

Apr i l 1
, 2 0 11 ]

__

_ So

. 3d

__

_ (Ala

. Ci v. App

. 20 11 ), in whi ch th e Co ur t of Ci vi l

A pp eal s he ld th at th e Bo ard was no t a St at e ag en cy an d th us was no t en ti t l e d t o

im m un it y pu rs ua nt to Art. I, § 14
, Ala. Co ns t. 19 01

. Fo r th e reas on s se t fo rth be lo w,

we rev ers e th e jud gm en t o f th e Co ur t o f Ci vi l Ap pe al s.

I. Fact s an d P ro ced ur al His to ry

The pe rti ne nt fact s are st at ed in th e Co ur t of Ci vi l A pp eal s' op in io n in

W il ki ns on :

"M ary Ann W il ki ns on was em pl oyed by th e Bo ard of De n t al Exa m in ers of Alab am a ('t he B o a r d ' ) fo r se ve ral y ears , u nt il th e Bo ard
te rm in at ed he r em

pl oym en t in Decem

be r 20 09

. Dur in g he r te nu re wit h th e Bo ard
, W il ki ns on was em pl oyed pu rs ua nt t o y earl y co nt ract s. W il ki ns on 's em

pl oym en t co nt ract s pr ov id ed th at th e 'so le rem ed y fo r th e

se tt le m en t of an y an d al l di sp ut es ari si ng un de r th e te rm s of th is
ag reem en t sh al l be li m it e d to th e fil in g of a cl ai m wit h th e Bo ard of Adju st m en t fo r th e St at e o f Ala ba m a.'

"In Ju ly 20 10
, W il ki ns on su ed th e Bo ard
, se ek in g co m pe ns at io n sh e al le g e d w as du e he r pu rs ua nt to he r em pl oym en t co nt ract s. W il ki ns on ba se d he r br each -o f-co nt ract cl ai m on an au di t of th e Bo ard

co ve rin g th e pe r i o d be twee n Octo be r 20 03 an d Sep te m be r 20 07

co nd uc te d b y th e Dep art m en t of Exa m in ers of Pu bl ic Acco un ts of

9 Case: 10-14282 Date Filed: 07/13/2012 Page: 9 of 4511 00 99 3

Alab am a, whi ch was co m pl et e d i n Feb ru ary 20 09

. W il ki ns on al le ge d th at th e au di t ha d rev eal ed th at th e Bo ard ha d no t pa id W il ki ns on fo r he r at te nd an ce at Bo ard m eet in gs be twee n Octo b e r 2 0 0 4 an d Sep te m be r 20 07 an d th at t h e Bo ard ha d ov erp ai d W il ki ns on ot he r co m pe ns at io n. Acco rd in g to W il ki ns on 's co m pl ai nt , th e au di t de te rm ine d tha t the Bo ard ha d un de rp ai d W il ki ns on $3 1,9 50 an d ha d o v erp ai d W il ki ns on $2 1,7 87 .92

. Thu s, W il ki ns on co nt en de d in he r co m pl ai nt th at th e Bo ard

owe d he r $1 0,1 62 .08

. Sh e al so req ue st ed a fu r t he r au di t an d

co m pe ns at io n fo r h e r a t te nd an ce at Bo ard m eet in gs be twee n Octo be r 20 07 an d Dec em

be r 20 09

.

"Th e Bo ard fil ed a m ot io n to di sm is s W il ki ns on 's co m pl ai nt , in whi ch it al le ge d th at th e co m pl ai nt sh ou ld be di sm is se d pu rs ua nt to Ru le 12 (b )(1 ), Ala. R. Ci v. P

. , o n t he gr ou nd th at th e tri al co ur t la ck ed

su bjec t-matte r juri sd ic ti o n b ecau se th e Bo ard
, as a St at e ag en cy , is i mm un e fro m su it un de r Ala. Co ns t. 19 01
, Art. I, § 14 ; th at t h e

co m pl ai nt sh ou ld be di sm is se d pu rs ua nt to Ru le 12 (b )(6 ), Ala. R. Ci v. P

. , be cau se it fai le d to st at e a cl ai m ; an d th at th e co m pl ai nt sh ou ld be di sm is se d pu rs ua nt to Ru le 12 (b )(3 ), Ala. R. Ci v. P., fo r im pr op er ve nu e. The m ot io n to di sm is s co nt ai n e d le ga l arg um en t co nc ern in g on ly th e im m un it y is su e an d whe th er th e em pl oym en t co nt ract s, whi ch pr ov id ed th at W il ki ns on 's so le rem ed y wou l d li e wit h th e Bo ard of Adju st m en t, ba rred he r co m

pl ai nt in th e ci rcu it co ur t. W il ki ns on res po nd ed to th e Bo ard 's m ot io n to di sm is s wit h a de ta il ed br ie f, arg ui ng th at th e Bo ard 1 di d no t qu al ify fo r im m

un i t y u n d e r § 14 an d th at , th eref or e, he r cl ai m

co ul d no t be he ard by th e Bo ard of Adju st m en t. See Ala. Co de 19 75
, § 41 -9 -6 2( b) (s ta ti ng th at th e Bo ard of Adju st m en t ha s no juri sd ic ti on 'to

se tt le or ad

jus t an y m at te r or cl ai m of whi ch th e co ur ts of th is st at e ha ve

or ha d juri sd ic ti on '); se e al so Lee v. Cu nn in gh am , 23 4 Ala. 63 9, 64 1, 17 6 So . 4 77 , 4 79 (1 93 7) ; an d Vau gh an v. Si bl ey , 7 09 So . 2 d 4 8 2
, 4 8 6 (Ala

. Ci v. App

. 19 97 ) ('The Bo ard of Adjus tm en t has juri sd ic ti on ov er cl ai m s ag ai ns t t he st at e th at are n ot jus ti ci ab le in th e co ur ts be cau se of
t h e st at e's co ns ti tu ti on al im m un it y fro m be in g m ad e a de fen da nt .'). Afte r th e Bo ard rep li ed to W il ki ns on 's res po ns e an d aft er a he ari ng , th e tri al co ur t di sm is se d W il ki ns on 's co m pl ai nt , fin di ng in it s or de r th at th e Bo ard was a S t a t e a ge nc y be cau se 'th e fu nd s rai se d by th e Bo ard are

10 Case: 10-14282 Date Filed: 07/13/2012 Page: 10 of 4511 00 99 3

a p p r o p ria te d by th e St at e to th e Bo ard fo r us e as pr ov id ed by st at ut e.' W il ki ns on ti m el y

ap pe al ed to th is co ur t.

"_

__ __ __ __ __ __ __ __ _

" W il ki ns on al so at ta ch ed to he r res po ns e do cu m en ta ry ev id en ce 1 in di cat in g th at th e Bo ard was se lf- su pp or ti ng

. Howev er, th at ev id en ce di d no t co n v ert th e Bo ard 's m ot io n to di sm is s in to a m ot io n fo r a

su m m ary jud gm en t be cau se th e m ot io n was , by a n d la rg e, a m ot io n

s e e ki ng di sm is sa l pu rs ua nt to Ru le 12 (b )(1 ) an d at ta ck in g th e tri a l

co ur t's su bjec t-matte r juri sd ic ti on ba se d on th e Bo ard 's as se rti on of § 14 im m un it y

. See W il li am s v. Sk y si te Co m m c'n s Co rp ., 78 1 S o

. 2 d 24 1, 24 5 (Ala

. Ci v. App

. 20 00 ) ('Evi de nt ia ry m at te rs m ay be free ly su bm it te d

on a m ot io n to di sm is s th at at ta ck s juri sd ic ti on .'). N o n e of th e arg um en ts m ad e by th e Bo ard was an arg um en t th at th e co m pl ai nt fai le d
to st at e a cl ai m ."

__ _ S o. 3 d a t _

__ .

W il ki ns on 's ap pe al to th e Co ur t o f C iv il App eal s ch al le ng ed th e Bo ard 's

en ti tl em en t to im m

un it y un de r § 14

. In ad dr es si ng t h at is su e, th e Co ur t of Ci vi l

App eal s s ta te d:

"'Se ct io n 14 of th e Ala b a m a Co ns ti tu ti on pr ov id es

"t ha t th e St at e of Alab am a sh al l ne ve r be m ad e a de fen da nt in an y co ur t of la w or eq ui ty." Thi s cou rt has he ld th at th e

us e of th e wor d "St at e" in Sect io n 14 was in te n d e d t o pr ot ect fro m su it on ly im m ed ia te an d st ric tl y go ve rn m en ta l
ag en ci es of th e St at e. Ex pa rte Bo ard of Sch oo l Co m m is si on ers of Mo bi le Co un ty, 23 0 Ala. 30 4, 16 1 So

. 10 8 (1 93 5) .'

"Th omas v. Alab am a Mu n. Elec

. Aut h., 43 2 So

. 2d 47 0, 48 0 (Ala

. 19 83 ). W il ki ns on arg ue s th at th e Bo ard is no t an 'im m ed ia te an d st ric tl y

11 Case: 10-14282 Date Filed: 07/13/2012 Page: 11 of 4511 00 99 3

go ve rn m en ta l ag en c[y] of th e St at e,' an d, th eref or e, th at it is no t en ti tl ed
to § 1 4 i m

m un it y

.

"Th e Bo ard rel ie s on Dela va n v. Bo ard o f D en ta l Exa m in ers of Alab am a, 62 0 So

. 2d 13
, 18 (Ala

. Ci v. App

. 19 92 ), an d Vin in g v. Bo ard of Den ta l Exam in ers of Alab am a, 49 2 S o. 2 d 6 07 , 61 0 (Al a. Ci v. App

. 19 85 ). In b ot h cas es , th is co ur t des cri be d th e Bo ard as a Sta te ag en cy

. In ne i t h e r c a s e was th e im m un it y of th e Bo ard an is su e, an d in ne it he r

cas e, as W il ki ns on ap tl y po in ts ou t, di d th is co ur t un de rta ke an an al y si s of th e fact or s rel ev an t to a de te rm in at io n w h e th er th e Bo ard is an 'ag en cy ' en ti tl ed to § 14 im m un it y

. Thu s, we ag ree wit h W il ki ns on th at

ou r in qu iry cann ot en d wi th Dela va n a nd Vin in g."

Afte r di sc us si ng th is Co ur t's de ci si on s in Arm or y Co m m is si on of Alab am a v. St au dt
,

38 8 S o. 2 d 9 91 , 9 93 (Ala . 1 98 0) ; W hi te v. Alab am a In sa ne Hos pi ta l, 1 38 Ala. 4 79
,

48 2, 35 So

. 45 4, 45 4 (1 90 3) ; Ex pa rte Great er Mo bi le -Wash in gt on Co un ty Men ta l

Heal th -Me nt al Ret ard at io n Bo ard
, In c., 94 0 So

. 2d 99 0, 10 04 (Ala

. 20 0 6 ) ( " M H

MRB "), t he Co ur t o f Ci vi l Ap pe al s s ta te d:

"Ba se d on th e ab ov e-q uo t ed la ng ua ge fro m W hi te , an d th e

ou tc om e in St au dt
, th e Bo ard arg ue s th at it
, li ke ot he r ag en ci es crea te d fo r pu rp os es be ne fit in g th e pu bl ic i nt eres t, is im m un e un de r § 14 by vi rtu e of it s crea ti on by th e le gi sl at ur e. The Bo ard
, h o w ev er,

m is un de rs ta nd s th e te st en un ci at ed in St au dt an d fo ll owe d si nc e, whi ch fo cu se s on m

uc h m or e th an whe th er th e al le ge d 'ag en cy ' was crea te d by th e le gi sl at ur e fo r so m e p ur po se of b en efi t t o t he pu bl ic

.

"To be su re, t h e fu nc ti on s an d pu rp os e of an en ti ty se ek in g i mm u n i t y is an im

po rta nt fact or un de r th e St au dt te st ; ho wev er, ou r

su pr em e co ur t ha s ex p la in ed th at th e m ai n, bu t no t so le
, fo cu s of th e im m un it y de te rm in at io n m

ust be whe th er th e li ab il it y of th e en ti ty wou ld

res ul t in li ab il it y fo r th e St at e an d t h us po te nt ia ll y im pa ct th e St at e

12 Case: 10-14282 Date Filed: 07/13/2012 Page: 12 of 4511 00 99 3

tre as ur y

. Ex pa rte Great er Mo bi le -Wash in gt on Co un ty Men ta l Heal th

Men ta l Re ta rd at io n B d., In c., 94 0 So . 2 d 99 0, 10 04 (Ala . 2 00 6) ('MHMRB '). A s e x p l a i ne d in MH-M RB, in m os t ev ery cas e de ci de d aft er St au dt
, th e 'tr eas ur y fact or ' ha s be en , if no t th e de te rm in at iv e fact or , on e of th e de te rm in a t i v e fact or s in de ci di ng whe th er an en ti ty was a St at e

a ge nc y en ti tl ed to § 14 im m un it y

. MH-M RB, 94 0 So

. 2 d a t 1 0 0 4

. Im m un it y is de si gn ed to sh ie ld th e St at e tre as ur y , no t to affo rd im m un it y to each an d ev ery en ti ty crea te d by s t a t u t e , e ve n if th e pu rp os e of th e

en ti ty is t o p ro te ct th e p ub li c wel fare

.

"Ba se d on St au dt an d as ex pl ai ne d in MH-M RB, we m us t

ex am in e th e 'co m

pl et e r e l a t i o ns hi p be twee n th e St at e an d th e Bo ard ,' MH-M RB, 94 0 So

. 2d at 10 05
, an d we be gi n by fir st no ti ng th at , de sp it e th e tri al co ur t's fin di ng th at 'th e fu nd s rai se d by t h e Bo ard are ap pr op ria te d by th e St at e to th e Bo ard ,' it do es no t ap pe ar th at th e Bo ard

rece iv es an y S ta te fu nd s at al l. One of th e st at ut es crea ti ng th e Bo ard do es co nt ai n la ng ua ge in di cat in g th at al l m on ey co ll ect ed by th e Bo ard is 'ap pr op ria te d' to th e Bo ard

. Ala

. C o d e 19 75
, § 34 -9 -4 1. Howev er, th at sa m e st at ut e fu rth er pr ov id es th at th e m on ey co ll ect ed by th e Bo ard fo r fees an d ot he r rece ip ts is pa id to th e se cret ary-treas ur er of th e Bo ard

an d is de po si te d in a ba nk se le ct ed by th e m em be rs of th e Bo ard

. Id

. The m on ey co ll ect ed by th e Bo ard is ne ve r pl aced in th e St at e tre as ur y

. Cf. Ala. Co de 19 75
, § 34 -4 3- 14 (es ta bl is hi ng a sp eci al rev en ue fu nd in th e St at e tre as ur y fo r th e Alab am a Bo ard of Mas s a g e Th erap y Fu nd ). The Bo ard
, fro m

all th at ap pe ars in th e rec or d, is ful ly se lf- su pp or ti ng , an d no act ua l ap pr op ria ti on of fu nd s to th e Bo ard fro m th e St at e ap pe ars to be r e q u i r e d in or de r fo r it to pe rfo rm it s fu nc ti on s. Thu s, th e St at e do es no t '"s up pl [y ] th e m ean s" by whi ch [th e Bo ard is ] m ai nt ai ne d and
op erat e d.' MH-M RB, 94 0 So

. 2d at 10 04 (q uo ti ng W hi te , 13 8 Ala. at 48 2, 3 5 S o. at 45 4)

.

"An ot he r fact or th at th e co ur ts ha ve fo un d rel ev an t t o t he i mm un it y is su e is whe th er th e st at ut e crea ti ng th e en ti ty sp eci fic al ly ch arac te riz es th e en ti ty as an ag en cy of th e St at e. MH-M RB, 94 0 So

. 2d
at 10 05

. The st at ut es crea ti ng th e Bo ard do n o t. Lik ewis e, we m us t lo ok to th e au th or it y an d po wer gr an te d th e Bo ard an d th e le ve l of St at e

13 Case: 10-14282 Date Filed: 07/13/2012 Page: 13 of 4511 00 99 3

o v e r s i g ht of th e Bo ard an d it s fu nc ti on s. Id

. at 10 03

. Not hi ng in th e pe rti ne nt st at ut es or th e reco rd in di cat es th at th e St at e ov ers ees th e fu nc ti on s of th e Bo ard
, whi ch in c l ud e, am on g ot he r th in gs , ad m in is te rin g ex am in at io ns to th os e se ek in g a li c e n se to pr act ic e de nt is try or de nt al hygi en e an d in ve st ig at in g vi ol a t i o n s of la ws or reg ul at io ns go ve rn in g th e pr act ic e of de nt is try an d de nt al hygi en e. Ala. Co de 19 75
, §§ 34 -9 -4 3 & -4 3.1

. The Bo ard do es no t ap pe ar to ha ve an y po wer to own or se ll pr op ert y in it s own na m e, a f a c t o r th at ha s be en

co n s i de red rel ev an t in ot he r cas es

. See, e.g ., Ro dg ers v. Hop pe r, 76 8 So

. 2d 96 3, 96 7 (Ala

. 2 0 00 ); Tall as eeh at ch ie Cree k W at ers he d Co ns erv an cy Dis t. v. All red
, 62 0 So

. 2d 62 8, 63 0 (Ala

. 19 93 ). The Bo ard can en te r in to cert ai n co nt ract s, in cl ud in g em pl oym en t co nt ract s rel at in g to a d mini st rat iv e an d in ve st ig at iv e se rv ic es an d co nt ract s fo r le ga l se rv ic es , a po wer th at ha s be en co n s i d e r e d as in di ci um th at th e al le ge d ag en cy is act ua ll y a se pa rat e en ti ty. Ro dg ers , 76 8 So

. 2d at 96 7; All red , 62 0 S o. 2 d a t 6 30

.

"Co nt ract s fo r le ga l s erv ic es , ho wev er, m us t be app ro ve d by

th e at to rn ey ge ne ral
, a fact th at in di cat es in ci de nt al co nt ro l ov er th at as pe ct of th e Bo ard 's po wers

. Ala. Co de 1 9 7 5, § 34 -9 -4 3( 8) b. Add it io na ll y , th e Bo ard 's acco un ts m

us t be au di te d by a cert ifi ed pu bl ic acco un ta nt of th e St at e, an d rep or ts of th e m o n e y r e c e iv ed an d di sb ur se d an d of th e act iv it ie s of th e Bo ard to ge th e r w i t h th e au di t m us t be fil ed wit h th e St at e Fi na nc e Dep art m en t. Ala. Co de 19 7 5
, § 3 4

- 9

- 42

. The le ve l of

o v e rs ig ht ov er th e Bo ard by th e St at e wou ld ap pe ar to be m in im al
, whi ch
, a c c o r d i n g to th e MH-M RB co ur t, is no t in di cat iv e of St at eag en cy st at us . MH-MR B, 94 0 S o. 2 d a t 1 00 4.

"Ba se d on ou r co ns id erat io n of th e rel ev an t fact or s un de r St au dt

as ap pl ie d in de ta il by ou r su pr em e co ur t in MH-M RB, we co nc lu de th at th e Bo ard do es no t qu al i f y a s an 'im m ed ia te an d st ric tl y go ve rn m en ta l
ag en c [ y] o f th e St at e' an d, th eref or e, th at it is no t en ti tl ed to § 14 im m un it y

. Tho m as [ v. Alab am a Mu n. Elec

. Aut h.], 43 2 So

. 2d [4 70 ] at 48 0 [(Al a. 19 83 )]. B a s e d on th at co nc lu si on , we m us t al so ag ree wit h W il ki ns on th at , de sp it e th e la ng ua ge co nt a i ne d in he r em pl oym en t

co nt ract s, th e Bo ard of Adju st m en t is no t th e ap pr op ria te fo ru m fo r he r

14 Case: 10-14282 Date Filed: 07/13/2012 Page: 14 of 4511 00 99 3

cl ai m s ag ai ns t th e Bo ard , bec au se th e Bo ard of Adju st m en t pr ov id es a fo ru m fo r ad dr es si ng th os e cl ai m s ot he rwi s e b a r r ed by § 14 im m un it y

an d ha s ab so lu te ly no juri sd ic ti on ov er cl ai m s or a c t i o n s th at m ay be br ou gh t in th e c o u r t s of th is St at e. § 41 -9 -6 2( b) ; se e al so Lee[ v. Cu nn in gh am ], 23 4 Ala. [6 39 ] at 64 1, 17 6 So

. [4 77 ] at 47 9 [(1 93 7) ]; an d Vau gh an [ v. Si bl ey ], 70 9 So

. 2d [4 82 ] at 48 6 [(Al a. Ci v. App

. 19 97 )]."

__ _ S o. 3 d a t _

__ (fo ot no te om it te d)

.

In it s pe ti ti on fo r a writ of cert io rari , t he Bo ard arg ue s th at th is cas e pr es en ts

an is su e of fir st imp r e s si on reg ard in g whe th er th e Bo ard is a St at e ag en cy th at is

e n t i t l e d t o § 14 im m

un it y an d whe th er th e Bo ard was en ti tl ed to in vo ke t h e

juri sd ic ti on of t he Bo ard of Ad jus tm en t.

II. St an da rd of R ev ie w

"In rev ie win g a de ci si on of th e Co ur t of Ci vi l App eal s on a pe ti ti on fo r a writ of cert io rari
, th is Co ur t 'acc o r d s n o pr es um pt io n of

co rrec tn es s to th e le ga l co nc lu si on s of th e in te rm ed ia te ap pe ll at e co ur t. The refo re, we m

us t ap pl y de no vo th e st an da rd of rev ie w th at w a s ap pl ic ab le in th e Co ur t of Ci vi l App eal s.' Ex pa rte Toyota Mo to r Co rp ., 68 4 S o. 2 d 1 32 , 13 5 (Al a. 19 96 )."

Ex p art e Exx on Mo bi l Co rp ., 92 6 S o. 2 d 3 03 , 30 8 (Al a. 20 05 ).

The Co ur t of Ci vi l App e a l s s t a t e d th e fo ll owi ng reg ard in g th e st an da rd of rev ie w

ap pl ic ab le in th at co ur t:

"'In Newm an v. Sav as , 8 78 So . 2 d 11 47 [, 11 48 -4 9] (Ala . 20 03 ), th is Co ur t se t ou t th e st an da rd of rev ie w o f a

ru li ng on a m ot io n to di sm is s fo r la ck of su bjec t-matte r juri sd ic ti on :

15 Case: 10-14282 Date Filed: 07/13/2012 Page: 15 of 4511 00 99 3

"'" A ru li ng on a m ot io n to di s mi s s is

r e v i e w e d w i t h o u t a p r e s u m p t i o n o f

co rrec tn es s. Nan ce v. Mat th ews , 6 2 2 S o. 2d 29 7, 29 9 (Ala

. 19 93 ). Thi s Co ur t m us t acce pt th e a ll eg at io ns of th e co m pl ai nt as tru e. C reo la Lan d Dev
., In c. v. Ben tb ro ok e Hou si ng , L.L.C., 82 8 So

. 2d 28 5, 28 8 (Ala

. 20 02 ). Fu rth erm or e, in rev ie win g a ru li ng on

a m ot io n to di sm is s we w i l l no t co ns id er whe th er th e plea de r wil l ul ti m at el y pr ev ai l bu t whe t he r th e pl ead er m ay po ss ib ly pr ev ai l. Nan ce, 6 22 So . 2d at 2 99 ."'

"Po nt iu s v. St at e Farm Mu t. Aut o. In s. Co
., 91 5 So

. 2d 55 7, 56 3 (Ala

. 20 05 )."

W il ki ns on , __

_ S o. 3 d a t _

__ .

III. Dis cu ss io n

A.

The Bo ard arg ue s th at th e Co ur t of Ci vi l App eal s erre d whe n it co nc lu de d th at

th e Bo ard was no t a St at e ag en cy th at is en ti tl ed to § 14 im m un it y

. In St au dt
, 38 8 So

.

2d at 9 93 , th is Co ur t s ta te d:

"Whet he r a la wsu it ag ai ns t a bo dy crea te d by le gi sl at iv e en act m en t is a

su it ag ai ns t th e st at e de pe nd s on [1 ] th e ch arac te r of po wer de le ga te d to th e bo dy, [2 ] th e rel at io n of th e bo d y t o th e st at e, an d [3 ] th e na tu re of th e fu nc ti on pe rfo rm ed by th e bo dy. All fact or s in th e rel at io ns hi p m us t be ex am in ed to de te rm in e whe th er th e su it is ag ai ns t an arm of th e st at e

or m erel y ag ai ns t a fran ch is ee li cen se d fo r s o me b en efi ci al pu rp os e. St at e Doc ks Co m

m is si on v. Barn es , 22 5 Ala. 40 3, 40 6- 07
, 14 3 So

. 58 1, 58 4 (1 93 2) ."

16 Case: 10-14282 Date Filed: 07/13/2012 Page: 16 of 4511 00 99 3

1. Ch arac te r of Po wer Del eg at ed to th e Bo dy

In de te rm in in g whe th e r t he Bo ard is a St at e ag en cy th at is en ti tl ed to § 14

im m un it y , we m

us t fir st lo ok at th e ch arac te r o f p o w e r de le ga te d to th e Bo ard

. In

Sm el le r v. Ore go n St at e Bo ard of Den ta l Ex am in ers , 29 4 U.S. 6 08 , 61 1 (1 93 5) , th e

Uni te d S ta te s Su pr em e Co ur t s ta te d:

"Th at t he st at e m ay reg ul at e th e pr act ic e of de nt is try, pr es cri bi ng th e qu al ifi cat io ns th at are reas on ab ly ne ces sa ry , an d to th at en d m ay req ui re li cen se s an d es ta bl is h su pe rv is io n by an a d mi ni st rat iv e bo ard
, is no t op en to di sp ut e. Dou gl as v. Nob le
, 26 1 U.S. 16 5 [(1 92 3) ]; Grav es v. St at e of Mi nn e s o t a, 27 2 U.S. 42 5, 42 7 [(1 92 6) ]. The st at e m ay th us affo rd pr ot ect io n ag ai ns t ig no ran ce, in cap aci ty an d im po si ti on

. Den t v. W es t Virg in ia
, 1 2 9 U.S. 11 4, 12 2 [(1 88 9) ]; Grav es v. St at e of Mi nn es ot a, su pr a. W e ha ve he ld th at th e st at e m ay de ny to co rp or at io ns th e rig ht to pr act ic e, i n s i s t in g up on th e pe rs on al ob li ga ti on s of in di vi du al s (St at e Bo ard of Den ta l Exa m in ers v. Mi ll er, 90 Co lo

. 19 3, 8 P. (2 d) 69 9 [(1 93 2) ]; Mi ll er v. St at e Bo ard of Den ta l Exam in ers , 28 7 U.S. 56 3 [(1 93 2) ]), an d th at it m a y pr oh ib it ad ve rti si ng th at te nd s to

m is le ad th e pu bl ic in th is res pe ct

. Dr. Bl oo m Den ti st , In c. v. Cru is e, 25 9 N.Y. 35 8, 3 63 , 18 2 N.E. 16 [(1 93 2) ]; Id., 2 88 U.S. 58 8 [( 19 33 )]."

Sect io n 3 4- 9- 2, Al a. Co de 19 75 , pro vi de s: 4

"(a ) The Leg is la tu re he reb y de cl ares th at th e pr act ic e of de nt is try

an d th e pr act ic e of de nt al hygi en e affe ct th e pu bl ic he al th
, sa fet y, a nd welf are an d sh ou ld be su bjec t to reg ul at io n. It is fu rth er de cl ared to be

a m at te r of

pu bl ic in te res t an d co nc ern th at th e d en ta l p ro fes si on m eri t

an d rece iv e th e co nf

id en ce of th e pu bl ic an d th at on ly qu al ifi ed de nt is ts

Many of the sec tions in C hapter 9 of Title 34, " Dentists and Denta l Hy g ienists," we re 4 amende d eff

ective Septe mber 1, 2011. Unle ss otherwise indica ted, we ha ve quoted f

rom the amende d version whe n the Code sec tion was amende d.

17 Case: 10-14282 Date Filed: 07/13/2012 Page: 17 of 4511 00 99 3

be pe rm it te d to pr act ic e de nt is try an d on ly qu al ifi ed de nt al hygi en is ts be
pe rmi t t e d t o pr act ic e de nt al hygi en e in th e St at e of Alab am a. All
pr ov is io ns of th is ch ap te r rel at in g to th e pr act ic e of de nt is try an d de nt al hygi en e sh al l be li be ral ly co ns tru ed to carr y o u t t h e s e ob jects an d
pu rp os es

. "(b ) The Leg is la tu re al so fin ds an d de cl ares th at , b e c a u se of
te ch no l o g ic al ad va nc es an d ch an gi ng pr act ic e pa tt ern s, th e pr act ic e of de nt is try an d th e pr act ic e of de nt al hygi en e is oc cu rri ng wit h in crea si ng freq ue nc y acro ss st at e li ne s a n d th at th e te ch no lo gi cal ad va nc es in th e pr act ic e of de nt is try an d in th e pr act ic e of de nt al hygi en e are in th e pu bl ic in te res t.

"(c ) The Leg is la tu re fu rth er fin ds an d de cl ares th at th e pr act ic e of de n t i s t r y a nd th e pr act ic e of de nt al hygi en e are each a pr iv il eg e. The li cen su re by th is st at e of n o n r e s id en t de nt is ts who en ga ge in de nt al
pr act ic e an d pe rs on s who en ga ge in th e pr act ic e of de nt al hygi en e wit hi n t h i s st at e are wit hi n th e pu bl ic in te res t. The ab il it y to di sc ip li ne th e

no nr es id en t de nt is ts an d de nt al hygi en is ts who en ga ge in de nt al pr act ic e in th is st at e is ne ces sa r y f o r t h e p ro te ct io n of th e ci ti zen s of th is st at e

an d fo r th e p ub li c in te res t, h eal th , welfa re, an d s afet y ."

Ch ap te r 9 of Tit le 34
, Ala. Co de 19 75
, pr ov id es de ta il ed req ui rem en ts an d reg ul at io ns

reg ard in g th e pr act ic e of de nt is try an d de nt al h yg i e n e i n th e St at e. Sect io n 34 -9

-

40 (a), Ala. Co de 19 75
, pr ov id es , in pe rti ne nt pa rt: "In or de r to acc om pl is h th e

pu rp os es an d t o p ro vi de for th e en fo rcem en t o f th is ch ap te r, th ere i s h ereb y crea te d

th e Bo ard of Den ta l Exa m in ers of Alab am a. Th e bo ard is he reb y ve st ed wit h th e

au th or it y t o c a rry ou t th e pu rp os es an d en fo rce th e pr ov is io ns of th is ch ap te r."

Add it io na ll y , § 3 4- 9- 43 , Ala. Co de 19 75 , pro vi de s:

18 Case: 10-14282 Date Filed: 07/13/2012 Page: 18 of 4511 00 99 3
"(a ) The bo ard sh al l ex erci se, subj ec t to th is ch ap te r, th e fo ll owi ng

po wers an d d ut ie s:

"(1 ) Ado pt ru le s fo r it s go ve rn m en t as de em ed

ne ces sa ry an d p ro pe r.

"(2 ) Pres cri be ru le s fo r qu al ifi cat io n an d li cen si ng of de nt is ts an d d en ta l h y gi en is ts

. "(3 ) Co nd uc t or pa rt i c ip at e in ex am in at io ns to

as cert ai n th e qu al ifi cat io n an d fit ne ss of ap pl ic an ts fo r li cen se s as de nt is ts an d d en ta l h y gi en is ts

. "( 4) Ma ke ru le s an d reg ul at io ns reg ard in g sa nit at ion

. "(5 ) Fo rm ul at e ru le s an d reg ul at io ns by whi ch de nt al

sc ho ol s an d co ll eg es are ap pr ov ed
, an d fo rm ul at e ru le s an d
reg ul at io ns by whi ch tra in in g, ed uc at io na l, te ch ni cal
, vo cat io na l, or an y ot he r in st it ut io n whi ch pr ov id es in st ru ct io n fo r de nt al as si st an ts , de nt al la bo rat or y te ch ni ci an s, or an y ot he r pa rad en ta l p ers on ne l are ap pr ov ed

. "(6 ) Gran t li cen se s, is su e li cen se cert ifi c a te s, te ach in g pe rm it s, an d a nn ua l reg is tra ti on cert ifi cat es in

co nf or m it y wit h th is ch ap te r to su ch qu al ifi ed de nt is ts an d de nt al hygie ni st s.

"(7 ) Co nd uc t he ari ng s or pr oc eed in gs to im po se th e pe na lt ie s s pe ci fie d i n S ect io n 3 4- 9- 18

. "(8 )a. Em pl oy ne ces sa ry pe rs on s to as si st in
pe rfo rm in g it s dut ie s in th e ad m in is tra ti on an d

en f o rcem en t of th is ch ap te r, an d to pr ov id e of fic es , fu rn it ur e, fix tu res , su pp li es , pr in ti ng ,

19 Case: 10-14282 Date Filed: 07/13/2012 Page: 19 of 4511 00 99 3

or se cret ari al se rv ic e to th es e pe rs on s a n d

ex pe nd ne ces sa ry

fun ds

.

"b

. Em pl oy an a t t or ne y or at to rn ey s,

su bjec t to th e ap pr ov al of th e A t t o rn ey Gen eral
, to ad vi se an d as si s t in th e carr y in g

o u t an d en fo rci ng of th e pr ov is io ns of th is ch ap te r

. Pro vi de d, ho wev er, if th e bo ard

co nt ract s wit h an ou ts i de at to rn ey to be
ge ne ral co un se l t o t he bo ard
, th at att or ne y or

an y membe r of a la w fir m wit h whi ch he or sh e is as so ci at ed sh al l no t fu nc ti on as th e bo ard 's p ro se cu to r at di sc ip li na ry he ari ng s.

" (9 )a. In ve st ig at e al le ge d vi ol at io ns of th is ch ap te r an d in st it ut e or ha ve in st it ut ed be fo re th e bo ard or th e pr op er co ur t ap pr op ria te pr oc eed in gs reg ard in g t he vi ol at io n.

"b

. Aut ho riz e an d em

pl oy in ve st ig at or s who

c o mply wit h th e Peac e Offi cers ' Mi ni m um St an da rd s an d Trai ni ng Act to ex erci se th e p o w e r s of a pe ace of

fic er in in ve st ig at in g al le ge d vi o la ti on s of th e dr ug or co nt ro ll ed

su bs ta nc es la ws by pe rs on s li cen se d pu rs ua nt to th is ch ap te r, in cl ud in g th e po wers of arre st

an d i ns pe ct io n o f do cu m en ts

. "(1 0) Ado pt ru le s an d reg ul at io ns to im pl em en t th is ch ap te r.

"(1 1) Pu bl is h
, o n a qu art erl y ba si s, al l m in ut es , ex cep t m in ut es of ex ecu ti ve se ss io n s, fin an ci al rep or ts , sc he du le s of m eet in gs , in c l u di ng an ti ci pa te d ex ecu ti ve

se ss io ns , an d ot he r pe rti ne nt in fo rm at io n on th e bo ard 's web si t e n o l at er th an 90 da y s fo ll owi ng th e da te of

20 Case: 10-14282 Date Filed: 07/13/2012 Page: 20 of 4511 00 99 3

oc cu rren ce. In ad di ti on , pu bl is h or po st an nu al ly th e ru le s

an d reg ul at io ns pr om

ul ga te d b y th e bo ard
, a co py of th e Den ta l Prac ti ce Act, an d a li st of al l pe rs on s li cen se d to pr act ic e u nd er t hi s ch ap te r.

"(1 2) Att en d m eet in gs , s e m in ars , wor ks ho ps , or

ev en ts th at m ay im

pr ov e th e fu nc ti on an d effi ci en cy of th e bo ard or im

pr ov e th e ab il i t y o f th e bo ard to en fo rce an d ad m in is te r th is ch ap te r.

"(b ) The bo ard , in ex erci si ng it s p owe rs an d du ti es , sh al l ad he re to gu id el in es a n d pr oc eed in gs of th e St at e Eth ic s Co m m is si on as pr ov id ed in Ch ap te r 25 of Tit le 36

. The b o a r d may ad op t ru le s fo r th e pu rp os e o f es ta bl is hi ng ad di ti on al eth ic al gu id el in es ." 5

Als o, § 34 -9 -4 6, Ala. Co de 19 75
, gi ve s th e Bo ard "t he po wer to is su e su bp oe na s an d

co m pe l th e at te nd an ce of wit ne ss es an d th e pr od uc ti on of al l ne ces sa ry pa pe rs , bo ok s,

an d reco rd s, do cu m en ta ry ev id en ce an d m at eri al or ot he r ev id en ce." Fu rth er, an y

m em be r of th e Bo ard ha s th e au th or it y to is su e oa th s to wit ne ss es or to ta ke wit ne ss es '

affi rm at io ns

. Add it io na l l y, § 3 4 -9 -1 8( a), Ala. Co de 19 75
, se ts fo rth co nd uc t th at

co ns ti tu te s gr ou nd s fo r di sc ip li na ry act io n ag ai ns t a d e n t i st or de nt al hygi en is t.

Sect io n 3 4- 9- 18 (b ) pr ov id es :

"(b ) W he n th e bo a r d fin ds an y de nt is t or de nt al hygi en is t gu il ty of an y of th e gr ou nd s se t fo rth in su bs ect io n (a), it may e n t e r an or de r im po si ng on e o r m or e o f th e fo ll owi ng pe na lt ie s:

Subsection (b) wa s added by the amendme nt to § 34-9-43, Ala. Code 1975, e ffe ctive 5 September 1, 2011.

21

Case: 10-14282 Date Filed: 07/13/2012 Page: 21 of 4511 00 99 3
"(1 ) Refu se to is su e th e de nt is t or de n t a l hygi en is t li cen se or p erm it pro vi de d fo r in th is ch ap te r.

"(2 ) W it h t he ex cep ti on of n eg li ge nc e as de fin ed in
p arag rap h (a)( 6) a. rev ok e th e li cen se or pe rm it o f a n y de nt is t o r de nt al hygie ni st

. "(3 ) Su sp en d t he li cen se or pe rm it of a ny den ti st or de nt al hygie ni st

. "(4 ) Ent er a ce ns ur e.

"(5 ) Is su e an or de r fix i ng a pe rio d an d te rm s of
pr ob at io n be st ad ap te d to pr ot ect th e pu bl ic he al th an d

sa fet y an d t o re ha bi li ta te th e d en ti st or d en ta l h y gi en is t.

"(6 ) Im po se an ad m in is tra ti ve fin e no t to ex ceed fiv e th ou s a n d do ll ars ($ 5,0 00 ) fo r each co un t or se pa rat e of fen se

. "(7 ) Im po se res tri ct io ns on th e sc op e o f pr act ic e.

"(8 ) Im po se pe er rev ie w or pr of es si on al ed uc at io n req ui rem en ts

. "(9 ) Ass es s t h e co st s of th e di sc ip li na ry pr oc eed in gs ."

Fi na ll y , § 3 4- 9- 5, Al a. Co de 19 75 , pro vi de s:

"An y pe rs on who sh al l en ga ge in th e pr act ic e of de nt is try acro ss st at e li ne s or pr act ic e de nt is try or de nt al hygi en e in th is st at e wit hi n th e

m ean in g o f th is ch ap te r wit ho ut ha vi ng fir st ob ta in ed fro m th e b oa rd a li cen se an d an an nu al reg is tra ti on cert ifi cat e, w h e n t h e cert ifi cat e is
req ui red by t hi s ch ap te r, or who vi ol at es th is ch ap te r, or who wil lfu ll y vi ol at es an y pu bl is he d ru le or reg ul at io n of th e bo ard
, or who do es an y

22 Case: 10-14282 Date Filed: 07/13/2012 Page: 22 of 4511 00 99 3

a c t d e s cri be d in th is ch ap te r as un la wfu l, th e pe na lt y fo r whi ch is no t he rei n sp eci fic al ly pr ov id ed
, sh al l be gu il ty of a m is de m ean or an d up on

co nv ic ti on sh al l be pu ni sh ed by a fin e of no t m or e t h a n f iv e th ou sa nd do ll ars ($ 5,0 00 ) f

o r e a c h o f

fen se , to be fix ed by th e co ur t tryin g th e

cas e, an d in ad di ti on th eret o m ay be
, in th e di sc ret io n of th e co ur t,

se nt en ced to ha r d l a b o r fo r th e co un ty fo r a pe rio d no t to ex ceed 12

m on th s."

(Em ph as is ad de d.)

The pu rp os es of Ch ap te r 9, Tit le 34
, Ala. Co de 19 75
, an d th e ch arac te r of th e

po wer and du ti es th at are d el eg at ed to th e Bo ard su pp or t a fin di ng th at th e Bo ard is

a St at e ag en cy

th at is en ti tl ed to § 1 4 i m m un it y

.

2. Re la ti on of t he Bo dy to t he Sta te

Nex t, th is Co ur t m

us t lo ok at th e rel at io n of th e Bo ard to th e St at e. In reac hi ng

it s de ci si on in W il ki ns on , th e Co ur t of Ci vi l App eal s rel ie d he av il y on th is Co ur t's

de ci si on in MH-MR B, st at in g:

"As ex pl ai ne d i n M H-MRB , in m os t ev ery cas e d eci de d a fte r [Arm or y Co m m is si on of Alab am a v.] St au dt [, 38 8 So

. 2d 9 9 1 ( Ala. 19 80 )], th e 'tr eas ur y fac t o r ' h a s be en , if no t th e de te rm in at iv e fact or , on e of th e de te rm in at iv e fact or s in de ci di ng whe th er an en ti ty was a St at e ag en cy

en ti tl ed to § 14 im m

un it y

. MH-M RB, 94 0 So

. 2d at 10 04

. Im m un it y is de si gn ed to sh ie ld th e St at e tre as ur y , no t to affo rd im m un it y to each an d

ev ery en ti ty crea te d by st at ut e, ev en if th e pu rp os e o f t h e e n ti ty is to pr ot ect th e p ub li c wel fare ."

__ _ S o. 3 d a t _

__ . The Co ur t o f Ci vi l Ap pe al s t he n re as on ed :

23 Case: 10-14282 Date Filed: 07/13/2012 Page: 23 of 4511 00 99 3

"Ba se d on St au dt an d as ex pl ai ne d in MH-M RB, we m us t

ex am in e th e ' c o mp l e te rel at io ns hi p be twee n th e St at e an d th e Bo ard ,' MH-M RB, 94 0 So

. 2d at 10 05
, an d we be gi n by fir st no ti ng th at , de sp it e th e tri al co ur t's fin di ng th at 'th e fu nd s rai se d b y th e Bo ard are ap pr op ria te d by th e St at e to th e Bo ard ,' it do es no t ap pe ar th at th e Bo ard

rece iv es an y St at e fu nd s at al l. One of th e st at ut es crea ti ng th e Bo ard do es co nt ai n la ng ua ge in di cat in g th at al l m on ey co ll ect ed by th e Bo ard is 'ap pr op ria te d' to th e Bo ard

. Ala. Co de 19 7 5
, § 34 -9 -4 1. Howev er, th at sa m e st at ut e fu rth er pr ov id es th at th e m on ey co ll ect ed by th e Bo ard fo r fees an d ot he r rece ip ts is pa id to th e se cret ary-treas ur er of th e Bo ard

an d is de po si te d in a ba nk se le ct ed by th e m em be rs of th e Bo ard

. Id

. The m on ey co ll ect ed by th e Bo ard is ne ve r pl aced in th e St at e tre as ur y

. Cf. Ala. Co de 19 75
, § 34 -4 3- 14 (es ta bl is hi ng a sp eci al rev en ue fu nd in
t h e S ta te tre as ur y fo r th e Alab am a Bo ard of Mas sa ge The rap y Fu nd )

. The Bo ard , fro m al l th at ap pe ars in th e rec or d, i s fu ll y sel f-s up po rti ng , an d no act ua l ap pr op ria ti on of fu nd s to th e Bo ard fro m th e St at e ap pe ars to be req ui red in or de r f

o r i t t o pe rfo rm it s fu nc ti on s. Thu s, th e St at e do es no t '"su pp l[y] th e m ean s" by whi ch [th e Bo ard is ] m ai nt ai ne d an d
op erat ed .' MH-M RB, 94 0 So . 2 d at 10 04 (qu ot in g Whi te [ v. Al ab am a In sa ne Hos p.], 13 8 Al a. [4 79 ] at 48 2, 3 5 S o. [4 54 ] at 45 4 [1 90 3) ])."

__ _ S o. 3 d a t _

__ .

Howev er, in Ex pa rte Troy Uni ve rs it y , 96 1 So

. 2d 10 5, 10 9- 10 (Ala

. 20 06 ), th is

Co ur t no te d th at , al th ou gh si gn ifi can t, whe th er an en ti ty rece iv es fu nd s fro m th e St at e

is no t t he de te rm in at iv e fac to r:

"Th e rece ip t of fu nd s fro m th e St at e is a s i gn ifi can t fact or in de ci di ng whe th er an en ti ty is a St at e ag en cy

. Lik ewi se , th e fact th at a jud gm en t 'wou ld res ul t in a m on et ary lo ss to th e St at e tre as ur y ,' Ex pa rte Alab am a Dep 't of Men ta l Heal th & Men ta l Ret ard at io n, 93 7 S o

. 2 d 10 18
, 10 23 (Ala

. 20 06 ), is si gn ifi can t, if n o t d e t e r m in at iv e, in th e de ci si on

. Howev er, ne it he r fact or is th e so le ba si s fo r ou r ex te ns io n of § 1 4 to St at e ag en ci es

. See, e.g., Ex part e Great er Mo bi le –Wash in gt on

24 Case: 10-14282 Date Filed: 07/13/2012 Page: 24 of 4511 00 99 3

C o u n ty Men ta l Heal th –M en ta l Ret ard at io n Bd
., In c., 94 0 So

. 2d 99 0
, 99 3 ( A l a

. 20 06 ); Tall as eeh at ch ie Cree k W at ers he d Co ns erv an cy Dis t.

v. All red
, 62 0 So

. 2d 62 8, 63 0 (Ala

. 19 93 ); Arm or y Co m m 'n of Alab am a

v. St au dt
, 38 8 So

. 2d 99 1, 99 2– 93 (Ala

. 19 80 ); W hi te v. Alab am a In sa ne Hos p., 13 8 Ala. 47 9
, 48 2, 35 So

. 45 4, 45 4 (Ala

. 19 03 ). Thi s Co ur t

co ns id ers se ve ral fact or s in de te rm in in g whe th er an en ti ty is 'an im m ed ia te an d st ric tl y go ve rn m en ta l ag en c[y] ' an d th us en ti tl ed to pr ot ec t i o n f

r o m su it un de r § 14
, in cl ud in g fact or s rel at ed to '(1 ) th e ch arac te r of th e po wer de le ga te d to th e bo dy; (2 ) th e rel at io n of th e bo dy
to th e St at e; an d (3 ) th e na tu re o f th e fu nc ti on pe rfo rm ed by t he bo dy.' Ro dg ers v. Hop pe r, 76 8 So

. 2d 96 3, 96 6 (Ala

. 20 00 )(ci ti ng St au dt
, 38 8 So . 2d at 9 93 )."

(Em ph as is ad de d.)

Add it io na ll y , th e Co ur t of Ci v il App eal s ap pl ie s an ov erl y na rro w de fin it io n

of "St at e fu nd s" th at ap pe ars to m is ap pr eh en d t he tru e n at ur e o f th e fu nd s co ll ect ed

an d reta in ed by th e Bo ard

. Sect io n 34 -9 -1 6, Ala. Co de 19 75
, pr ov id es , in pe rti ne nt

pa rt:

"Th e Bo ard sh al l es ta bl is h an d co ll e c t reas on ab le fees pr ov id ed fo r in th is ch ap te r wit hi n th e ran ge s se t fo rth be lo w an d wit ho ut ha vi ng to en ga ge in th e ru le m ak in g p ro ces s ...."

(Em ph as is ad de d.) Tha t se ct io n al so in cl ud es a de ta il ed li st of fees
, su ch as "Den ta l

Exa m in at io n App li cat io n Fee," Den ta l Exa m in at io n Fee," an d "Den ta l Exa m in at io n

Mat eri al s Fe e." It th en se ts fo rth a m ax im um am ou nt th at m ay be ch arg ed fo r eac h

25 Case: 10-14282 Date Filed: 07/13/2012 Page: 25 of 4511 00 99 3

li st ed fee. The refo re, th e le gi sl at ur e req ui res th e Bo ard to es ta bl is h an d co ll ect fees

.

6

Add it io na ll y , al th ou gh th e le gi sl at ur e ha s gi ve n t h e B o ard so m e di sc ret io n in

es ta bl is hi ng th e am ou nt of fees it wil l co ll e c t , it al so li m it s th at di sc ret io n by

pr ov id in g t he m ax im

um fees th at can be est ab li sh ed an d c ol le ct ed

.

Sect io n 3 4- 9- 41 , Ala. Co de 19 75 , pro vi de s:

"Th e bo ard sh al l an nu al ly el ect fro m it s m em be rs hi p a pr es id en t, vi ce-p res id en t, an d se cret ary-treas ur er an d m ay em pl oy s ta ff m em

be rs who are no t m em

be rs of th e bo ard

. Th e bo ard sh al l ha ve a co m m on

se al

. The bo ard sh al l ho ld an an nu al m eet in g in Bi rm in gh am at th e Uni ve rs it y of Alab am a Sch oo l of Den ti st ry as so on as pr act ic al aft er th e gr ad ua ti on ex erci se s of the de nt al sc ho ol fo r th e pu rp os e of ex am in in g

or pa rt i ci pa ti ng in th e reg io na l ex am in at io n of ap pl ic an ts fo r a li cen se to pr act ic e de nt is try an d de nt al hygi en e or at su ch ot he r ti m es an d pl aces

as th e bo ard m ay de si gn at e fo r th e pu rp os e o f tra ns act in g it s bu si ne ss

an d ex am in at io ns

. A m ajor it y of th e bo ard sh al l co ns ti tu te a qu or um fo r th e tra ns act io n of bu si ne ss at an y m eet in g ex cep t th at in co nd uc ti ng he ari ng s in vo lv in g an y of th e pe na lt ie s ou tl in ed in Sect io n 34 -9 -1 8, no le ss th an fiv e m em

be rs of th e bo a r d s h a l l be pr es en t. In co nd uc ti ng he ari ng s in vo lv in g an y of th e pe na lt ie s ou tl in ed in Sect io n 34 -9 -1 8, a

m ajor it y of th e bo ard m ay ap po in t an y fo rm er m em be r of th e bo ard who fo r su ch pu rp os es sh al l ha ve al l th e po wers an d pr iv il eg es of su ch of fic e

as a reg ul ar bo ard m em

be r po ss es se s. In co nd uc ti ng or pa rti ci pa ti ng in

ex am s, a m ajor it y of th e bo ard m ay ap po in t an y fo rm er m em be r of th e bo ard or su ch ot he r li cen se d pr act ic in g de nt is ts fro m a juri sd ic ti on

reco gn iz ed by th e bo ard who fo r su ch pu rp os es sh al l ha ve al l th e po wers

an d pr iv il eg es of su ch of

fic e as a reg ul ar bo ard m em be r po ss es se s. Out of th e fu nd s of th e b o a r d th e m em be rs th ereo f sh al l rece iv e as

Be fore its amendment eff ective Septe mber 1, 2011, § 34-9- 16 also set a minimum 6 amount that could be c harg ed for eac h fee

.

26 Case: 10-14282 Date Filed: 07/13/2012 Page: 26 of 4511 00 99 3

co m pe ns at io n a su m to be fi x e d b y t h e bo ard fo r each da y act iv el y

en ga ge d in t he du ti es of th ei r of fic e, an d in ad di ti on bo ard m em be rs sh al l rece iv e th e sa me pe r di em an d tra ve l al lo wan ce as is pa id by l aw to st at e em

pl oyees fo r each da y act iv el y en ga ge d in th e d u t i e s of th ei r of fic e. The se cret ary-treas ur er sh al l rece iv e su ch co m pe ns at io n as m ay be fix ed by the bo ard , whi ch sh al l b e in ad di ti on to hi s or her per di em

an d ex pe ns es , pr ov id ed no pe r di em or ex pe ns es sh al l be al lo wed un le ss h i s o r h er du ti es req ui re hi s or he r ab se nc e fro m hi s or he r of fic e. Th e

se cret ary[-trea su rer] sh al l rece iv e su ch co m pe ns at io n as m ay be fix ed by th e bo ard

. The se cret ary-t r e a s u r er sh al l be cu st od ia n of al l pr op ert y , mo n e y, reco rd s an d th e of fic ia l se al of th e bo ard

. All m on ey rece i v e d by th e bo ard un de r th i s c h a p t e r sh al l be pa id to an d rece iv ed by th e

se cret ary-treas ur er of th e bo ard

. The se cret ary-treas ur er sh al l de po si t to th e cred it of th e bo ard al l fun ds pa id to th e b oa rd in a ba nk se le ct ed by it s m em be rs . Th e bo ard is au th or iz ed to e x p en d su ch fu nd s as sh al l be

ne ces sa ry to en fo rce th e pr ov is io ns of t h i s ch ap te r; to pa y sa la rie s,

ex pe ns es a n d ot he r co st s he rei n pr ov id ed ; to pr om ot e th e art s an d

sc ie nc e of de nt is try; an d fo r su ch ot he r pu rp os es as th e bo ard sh al l

co ns id er to be in th e be st in te res t of de nt is try in th is st at e. All th e co st s he rei n pr ov id ed fo r sh al l b e pa id by ch eck s dr awn by th e

se cret ary-treas ur er an d co un te r s ig ne d by th e pr es id en t of th e bo ard ;

ex cep t th e bo ard m ay au th or iz e th e ad mi n i s t rat iv e se cret ary or th e

ex ecu ti ve di rect or to si gn ch eck s fo r co st s th at do no t ex ceed a m on et ary li m it to be se t by th e bo ard i n it s ru le s. Sh ou ld th e pr op ert y be ot he r th an m on ey , th e se cret ary-tre a s u r e r sh al l pr ov id e fo r th e sa fek eep in g th ereo f fo r th e us e of th e bo ard

. Al l mo n e y, in cl ud in g li cen se fees
, an nu al ren ewal li cen se cert ifi cat e fees
, ex am in at io n fees an d an y an d al l
ot he r fee s an d rece ip ts un de r th e pr ov is io ns of t hi s ch ap te r, are h ereb y ap pr op r i a t e d t o th e Bo ard of Den ta l Exa m in ers to be us ed as he rei n pr ov id ed ."

(Em ph as is ad de d.) In th is se ct io n, th e le gi sl at ur e sp eci fic al ly st at es th at th e fees an d

rece ip ts co ll ect ed un de r Ch ap te r 9, Tit le 34
, Ala. Co de 19 75
, are ap pr op ria te d to th e

Bo ard

. The reas on in g of th e Co ur t of Ci vi l App eal s reg ard in g th es e am ou nt s ap pe ars

27 Case: 10-14282 Date Filed: 07/13/2012 Page: 27 of 4511 00 99 3

to be th at , be cau se th e m on ey co ll ect ed by th e Bo ard is de po si te d in to a ba nk acco un t

rat he r th an in to a sp eci al fun d i n t he Sta te tre as ur y , su ch m on ey do es no t co ns ti tu te

St at e fu nd s; th eref

or e, th e Co ur t of Ci vi l App eal s reas on ed
, th e Bo ard do es no t

rece iv e an y St at e fu nd s. In Opi ni on of th e Ju st ic es No. 38 5, 69 So

. 3d 84 7 (Ala

.

20 11 ), th is Co ur t ad dr es se d th e co ns ti tu ti on al it y o f Sen at e Bi ll 37 3, whi ch wou ld

ha ve al lo wed cert ai n ap pr ov ed en ti ti es to ret ai n a pe rcen ta ge of st at e in co m e ta xe s

w i t h h el d fro m th e pa y of el ig ib le em pl oyees. In ad dr es si ng th is is su e, th i s C o u r t

st at ed :

"With reg ard to th e di sp os it io n of th e pr oc eed s fro m st at e in co m e ta xe s, § 21 1.0 2[ , Ala. Co ns t. 1 90 1,] pro vi de s:

"'[A]l l ne t pr oc eed s of su ch ta x, pl us th e earn in gs fro m in ve st m en t of th e tru st fu nd s, m us t be us ed on l y i n th e

m a n n e r an d in th e or de r fo ll owi ng : (1 ) To rep la ce th e

rev en ue lo st to th e se ve ral f u n d s of th e st at e by reas on of th e ex em pt io n of ho m es te ad s fro m th e st at e ad va lo rem ta x. All ho m es te ad s in Alab am a are h e reb y de cl ared to be

ex em pt fro m al l st at e ad va lo rem ta x to th e ex te nt of at le as t $2

, 00 0.0 0 in as se ss ed va lu e an d a su ffi ci en t am ou nt is he reb y ap pr op ria te d fro m th e pr oc eed s of th e in co m e ta x in each fis cal y ear to rep la ce th e rev en ue lo st to th e se ve ral fu nd s of th e st a t e by reas on of th e ho m es te ad ex em pt io n he rei n de cl ared ; (2 ) The res id ue sh al l be pl aced in th e st at e tre as ur y to th e cred it of th e Alab am a sp eci al ed uc at io n tru st fu nd to be us ed fo r th e pa y m en t of pu bl ic sch oo l t each ers

sa la rie s o nl y .'

28 Case: 10-14282 Date Filed: 07/13/2012 Page: 28 of 4511 00 99 3

"(Em ph as is ad de d.) Sect io n 21 1.0 2 cl earl y an d un eq ui vo cal ly pr ov id es t h at al l ne t pr oc eed s of th e st at e in co m e ta x m us t be us ed on ly fo r t h e two sp eci fic pu rp os es d e si gn at ed th erei n. Fi rs t, th e pr oc eed s m us t be

us ed '[t ]o rep la ce th e rev e n u e l o st to th e se ve ral fu nd s of th e st at e by

reas on of th e ex em

pt io n of ho m es te ad s fro m th e st a t e a d va lo rem ta x.' Seco nd
, th e 'res id ue sh al l be pl aced in th e st at e tre as ur y to th e cred it of th e Alab am a sp eci al ed uc at io n tru st fu nd to be us ed fo r th e pa y m en t of
pu bl ic sch oo l t each ers sal ari es on ly.' (Em ph as is ad de d.)

"S.B

. 37 3 pe rm it s cert ai n ap pr ov ed en ti ti es to ret ai n a pe rcen ta ge of st at e in co m e ta xe s wit hh el d fro m th e pa y of el ig ib le em pl oyees. Howev er, § 21 1.0 2 re qu ire s t ha t 'al l n et pro ceed s o f [t he st at e in co m e]
ta x' be us ed fo r th e sp eci fic pu rp os es se t fo rth in § 21 1.0 2. The refo re, fo r S.B. 37 3 no t to be vi ol at iv e of § 21 1.0 2, th e pe rcen ta ge wit hh el d by th e ap pr ov ed en ti ti es m

us t no t co ns ti tu te 'ne t pr oc eed s of [th e st at e in co m e] tax .'

"Th e Co ns ti tu ti on of Alab am a of 19 01 do es no t de fin e th e ph ras e 'al l ne t pr oc eed s of su ch ta x' as us ed in § 21 1.0 2. Bl ack 's Law Dict io na ry de fi ne s ' ne t proc eed s' as '[g ]ros s pr oc eed s, le ss ch arg es whi ch

m ay be rig ht ly de du ct ed .' Bl ack 's Law Dict io na ry 10 41 (6 th ed

. 19 90 ). S.B. 37 3 al lo ws an ap pr ov ed en ti ty to ret ai n a pe rcen ta ge of st at e in co m e ta xe s with he ld fro m el ig ib le em pl oyees. If an ap pr ov ed en ti ty col le ct s st at e in co m e ta xe s du e fro m it s em pl oyees bu t do es no t rem it th os e ta xe s in th ei r en ti ret y to th e St at e, is it po ss ib le th at su ch ret ai ne d am ou nt s

wou ld co ns ti tu te 'ch arg es whi ch m ay be rig ht ly de du ct ed ,' rat he r th an 'ne t pr oc eed s of th e ta x,' so th at th e Act wou ld no t ru n afo ul of § 21 1.0 2? The an swe r to th at qu es ti on is 'no .'

"In Opi ni on of th e Ju st ic es No

. 34 6, 66 5 So

. 2d 13 57
, 13 58 -5 9 (Ala

. 19 95 ), th is Co ur t ad dr es se d th e co ns ti tu ti on al it y of Hou se Bi ll 58 6 in li gh t of § 5( a) of Am en dm en t No. 45 0 to th e Co ns ti tu ti on of Alab am a of 19 01 (no w § 2 19 .02 , Ala. Co ns t. 1 90 1 (Of f. Reco m p.)) an d h el d:

"'Ou r res po ns e to th e fir st qu es ti on of th is Re sol ut io n [req ue st in g t he op in io n] is th at th e ap pr op ria ti on th at

29 Case: 10-14282 Date Filed: 07/13/2012 Page: 29 of 4511 00 99 3

wou ld be m ad e by Sect io n 11 of Hou se Bi ll 58 6 wou ld be

co nt rary to § 5(a ) of Am en dm en t No. 45 0 of the Alab am a Co ns ti tu ti on , 19 01

. Sect io n 5( a) of Am en dm en t No. 45 0
st at es :

"'" The tru st cap it al sh al l be he ld in pe rp et ua l
tru st an d sh al l no t be ap pr op ria te d by th e le gi sl at ur e or ex p en de d or di sb ur se d fo r an y pu rp os e ot he r th an to acq ui re el ig ib le inves tm en ts in acco rd an ce wit h th e pr ovi sio ns of th is am en dm en t.... [Bu t] any tru st in co m e de riv ed th eref

ro m sh al l be pa id di rect l y in to th e ge ne ral fu nd as it is rece iv ed by th e bo ard
, su bjec t to ap pr op ria ti on an d wit hd rawal by th e le gi sl at ur e."

" '(Em ph as is ad de d.) In th e Am en dm en t, "t ru st in co m e" i s de fin ed as "t he n e t in co m e rece iv ed by th e st at e,

su bs eq ue nt to th e tra ns fer of the in it ia l tru st cap it al by th e st at e tre as ur er to th e bo ard
, fro m t h e in ve st m en t an d rei nv es tm en t of al l as se ts of th e tru st fu nd
, de t e r mi n e d in

acco rd an ce wi th th e p ro vi si on s o f th is am en dm en t."

"'Un de r th is Bi ll
, th e le gi sl at ur e pr ov id es f o r a

co nt in ui ng ap pr op ria ti on ov er a pe rio d of 30 y ears , be gi nn i ng in 19 95
, fro m th e an nu al in te res t earn ed on in ve st m en ts of th e Alab am a Trus t Fu nd to th e Alab am a In cen ti ve s Fi na nc in g A u th or it y

. W hi le th e le gi sl at ur e's br oa d go ve rn m en ta l po wer is pl en ary in ch arac te r, it is no t ab so lu te an d is su bjec t to th e ex pr es s res tri ct io ns of th e st at e co ns ti tu ti on

. Van Hart v. de Graffe nr ie d, 38 8 So . 2 d 11 96
, 11 98 (Ala

. 19 80 ); se e al so , e.g ., Ci ty of Bi rm in gh am

v

. C i ty of Ves ta vi a Hil ls
, 65 4 So

. 2d 53 2 (Ala

. 19 9 5 )

. Am en dm en t No. 45 0, by ex pr es s la ng ua ge , req ui res th at th e in te res t earn in gs on in ve st m en ts be pa id in to th e st at e's Gen eral Fu nd up on rece ip t. Af t e r th e tru st in co m e ha s

30 Case: 10-14282 Date Filed: 07/13/2012 Page: 30 of 4511 00 99 3

be en pa id in to th e Gen eral Fu nd
, th e le gi sl at ur e m ay ap pr op ria te it as it se es fit
, su bjec t to co ns ti tu ti on al

res tri ct io ns

. Arti cl e IV, § 71
, of th e Alab am a Co ns ti tu ti on , 19 01
, is o n e su ch co ns ti tu ti on al res tri ct io n on th e le gi sl at ur e's po w e r to ap pr op ria te fu nd s. Acco rd in g to § 71 :

"'" The ge ne ral ap pr op ria ti on s bi ll sh al l

em br ace no th in g bu t ap pr op ria ti on s fo r th e

o r d i n a r y e x p e n s e s o f t h e e x e c u t i v e , le gi sl at iv e, an d jud ic ia l de pa rtme n ts of th e st at e, f or in te res t on th e pu bl ic de bt
, an d fo r pu bl ic sc ho ol s.... All ot he r ap pr op ria ti on s sh al l be made by se pa rat e bi ll s, each

em br aci ng bu t o ne su bjec t."

"'(Em ph as is ad de d.)

"'Th e le gi sl at ur e d e c l a r es in § 11 (a) of th e Bi ll th at th e ap pr op ria ti on "i s m ad e pu rs ua nt to an d in a c c o r da nc e wit h [Am en dm en t No. 45 0] an d th at th e in te res t in co m e on in ve st m en ts in th e Alab am a Trus t Fu nd is no t a pa rt of th e Gen eral F un d of th e St at e un ti l de po si te d in th e Gen eral F u nd ." The Gov ern or , in hi s br ie f, arg ue s th a t t h e ap pr op ria ti on of sp e c i fie d, an nu al in st al lm en ts of in co m e fro m th e Alab am a Trus t Fu nd fo r 30 ye a r s , m ad e by Sect io n 11 of H.B. 58 6, do es no t co ns ti tu te an ap pr op ria ti on of m on ey in th e st at e's Gen eral Fu nd be cau se th e m on ey is ap pr op ria te d be fo re it reac he s t h e st at e's Gen eral Fu nd

. Th e s i mple an swe r to th is co nt en ti on is : The co ns ti tu ti on it se lf st at es th at t h e in co m e fro m in ve st m en ts of th e Alab am a Trus t Fu nd sh al l be pa id di rect ly to th e st at e's Gen eral F u n d

. The le gi sl at ur e is wit ho ut po wer to ov erri de th is ex pr es s co ns ti tu ti on al
pr ov is io n by th e su bt erfu ge of di ve rti ng su ch fu nd s be fo re th ey are act ua ll y pa id in to th e Gen eral Fu nd

. H o us e Bi ll

31 Case: 10-14282 Date Filed: 07/13/2012 Page: 31 of 4511 00 99 3

58 6 is in va li d, be cau se it is in di rec t c o n f li ct wit h th e

co ns ti tu ti on al pr ov is io ns of Am en dm en t No. 45 0. The

co ns ti tu ti on h as "ea rm ark ed " th es e fu nd s fo r th e Gen eral Fu nd

.

"'Th e Gov ern or st at es in hi s br ie f th at , be cau se un de r H.B. 58 6 th e le gi sl at ur e wou ld be po werl es s to co nt ro l th e in te res t in co m e earn ed by t he Alab am a Trus t Fu nd , a fact in co nt ras t to it s abi li ty to in crea se a sp eci al ta x to se rv ic e

a de bt
, th e sc he me a u t h o riz ed by th e Bi ll is no t a de bt of th e st at e. He as se rts it is th e eco no m ic an d le ga l eq ui va le nt of a n a n n ua l ap pr op ria ti on

. W e can no t ag ree. The in es cap ab le fact is : by co ns ti tu ti on al m an da te th es e fu nd s

are r eq ui red to be pa id in to th e Gen eral Fu nd as rece iv ed
, an d th e le gi sl at ur e is bo un d by th e c o ns ti tu ti on to ap pr op ria te th os e fu nd s on ly as pe rm it te d b y ex pr es s pr ov is io ns of t he co ns ti tu ti on

.

"'Th e le gi s l a t ur e m ay no t av oi d co ns ti tu ti on al

res tri ct io ns on it s au th or it y t o ap pr op ria te st at e fu nd s by "d iv ert in g" su ch fu nd s fro m th e Gen eral Fu nd be fo re th ey

are r ecei ve d b y

th e Gen eral Fu nd .'

"(Em ph as is
, ot he r th an as in di cat ed
, ad de d.) In th at sa m e op in io n, th is Co ur t als o st at ed : 'No con st it ut io na l di st in ct io n exi st s bet ween m on ey th e st at e al read y ha s an d th at whi ch it wil l rece iv e.' 66 5 So

. 2d at 13 62

.

"Ba se d on th is Co ur t's reas o n i n g in Opi ni on of th e Ju st ic es No. 34 6, th e le gi sl at ur e m ay no t pr ev en t an y am ou nt s th at are wit hh el d fro m

em pl oyees' pa y ch eck s pu rs ua nt to st at e-i nc om e- ta x laws fro m be co m in g st at e-i nc om e-t ax pr oc eed s to be de po si te d i n t o t he ap pr op ria te fu nd s si m pl y by al lo win g an ap pr o ve d en ti ty to ret ai n th os e am ou nt s on ce

co ll ect ed
, rat he r th a n tu rn in g th em ov er to th e St at e. As so on as an

em pl oyer wit hh ol ds st at e in co m e ta x fro m an em pl oyee's pa y ch eck
, th e

am ou nt wit hh el d b eco m es gro ss pro ceed s o f th e st at e in co m e ta x."

32 Case: 10-14282 Date Filed: 07/13/2012 Page: 32 of 4511 00 99 3

69 So . 3 d at 85 6- 58 . The rea so ni ng th is Co ur t em pl oyed i n Op in io n o f th e Ju st ic es

No. 38 5, su pr a, an d Opi ni on of th e Ju st ic es No. 34 6, 66 5 So

. 2d 13 57 (Ala

. 19 95 ), is

pe rs ua si ve he re.

I n t hi s cas e, on ce th e Bo ard co ll ect s th e fu nd s es ta bl is he d by th e le gi sl at ur e ,

th os e fu nd s be co m e St at e fu nd s. The m ere fact th at th e le gi sl at ur e ap pr op ria te s th os e

f un ds be fo re th ey reac h th e St at e tre as ur y do es no t al te r th ei r st at us as St at e f u n d s

.

Als o, th e fact th at th e le gi sl at ur e ha s al lo we d t he Bo ard to de po si t th os e fu nd s in a

ba nk rat he r th an in th e St at e tre as ur y al so do es no t al te r th ei r st at us a s S t at e fu nd s.

Alt ho ug h th e fu nd s ap pr op ria te d to th e Bo ard are no t de po si te d in th e St at e tre as ur y ,

bu t in a ba nk
, th e Bo ard do es no t ha ve un br id le d di sc ret io n reg ard in g th e ex pe nd it ur e

of th os e fu nd s. Sect io n 34 -9 -4 1, Ala. Co de 19 75
, sp eci fic al ly au th or iz es th e

ex pe nd it ur es of su ch fu nd s fo r on ly cert ai n sp eci fic pu rp os es

. Add it io na ll y , § 34 -9

-

41
, Ala. Co de 19 75
, ev en pr ov id es fo r th e m an ne r i n w h i c h t he co st s fo r su ch

ex pe nd it ur es wil l b e p ai d a nd who ha s t he au th or it y to si gn ch eck s on be ha lf of th e

Bo ard

. Fi na ll y , ou r co nc lu si on th at th e fu nd s ap pr op ria te d di rect ly to th e Bo ard are

St at e fu nd s is fu rth er bu tt res se d by th e pr ov is io ns of th e Alab am a Su ns et Law, § 41

-

20 -1 et s eq ., Ala. Cod e 19 75
, whi ch pr ov id es for th e co nt in ua ti on or t erm in at io n o f

St at e ag en ci es

. The Bo ard of Den ta l Exa m in ers is on e of th e ag en ci es en um erat ed in

33 Case: 10-14282 Date Filed: 07/13/2012 Page: 33 of 4511 00 99 3

§ 41 -2 0- 3( a)(2 )q
., Ala. Co de 19 75

. Sect io n 41 -2 0- 12
, Ala. Co de 19 75
, pr ov id es th at

al l u ne xp en de d fu nd s o f an en um erat ed ag en cy th at ha s be en te rm in at ed wil l re ve rt

"b ack to th e st at e fu nd fro m whi ch it s ap p r o p r i at io n was m ad e, un le ss ot he rwis e

pr ov id ed by law."

The Co ur t of Ci v i l A pp eal s in co rrec tl y co nc lu de d th at "t he St at e do es no t

'"s up pl [y ] th e m ean s" by whi ch [th e Bo ard is ] m ai nt ai ne d an d op erat ed .' MH-M RB,

94 0 So

. 2d at 10 04 (q uo ti ng W hi te [ v. Alab am a In sa ne Hos p.], 13 8 Ala. [4 79 ] at 48 2,

35 So . [45 4] at 4 54 [(1 90 3) ])." __ _ S o. 3 d at

__

_.

Fu rth er, ot he r pr ov is io ns in Ch ap te r 9, Tit le 34
, Ala. Co de 19 75
, reg ard in g th e

rel at io ns hi p be twee n th e Bo ard an d th e St at e in di cat e th at th e Bo ard is a St at e ag en cy

.

Sect io n 34 -9 -4 1, Ala. Co de 19 75
, pr ov id es th at m em be rs of th e Bo ard "s ha ll rece iv e

th e sa m e pe r di em an d tra ve l al lo wan ce as is pa id by la w to st at e em pl oyees fo r each

da y act iv el y en ga ge d in th e du ti es of th ei r of fic e." Als o, § 34 -9 -4 2, Ala. Co de 19 75
,

pr ov id es , in pe rti ne nt pa rt:

"Th e se cret a r y-tre as ur er of th e bo ard sh al l co m pi le an an nu al rep or t whi ch sh al l co nt ai n an it em iz ed st at em en t of al l m on ey rece iv ed an d di sb ur se d an d a su m

m ary of th e of

fic ia l act s of th e bo ard du rin g th e pr ec e d i ng y ear, an d th e rep or t sh al l ha ve at ta ch ed th eret o a cert ifi ed

r ep or t an d au di t m ad e by a cert ifi ed pu bl ic acco un ta nt of th e St at e of Alab am a. A c op y of th e rep or t an d au di t sh al l be f i l e d of reco rd in th e of fic e of th e Dep art m en t of Fi na nc e of th e St at e of Alab am a, an d a co py

34 Case: 10-14282 Date Filed: 07/13/2012 Page: 34 of 4511 00 99 3

sh al l be ret ai ne d by th e se cret ary-treas ur er to be ren de red up on req ue st , to th e d en ti st s at lar ge in th e St at e o f Ala ba m a."

(Em ph as is ad de d.) Alt ho ug h § 34 -9 -4 3( 8) b. au th or iz es th e Bo ard to hi re an at to rn ey

or at to rn ey s to ad vi se an d as si st it in carr y in g ou t an d pe rfo rm in g it s du ti es un de r th e

p r o v i s i o ns of Ch ap te r 9, Tit le 34
, Ala. Co de 19 75
, th at hi rin g is "s ub ject t o t h e

ap pr ov al of th e Att or ne y Gen eral ." Add it io na ll y , § 3 4- 9- 43 .1, Ala. Co de 19 75
,

pr ov id es :

"(a ) The bo ard m ay em pl oy inv es ti ga to rs , att or ne y s, ag en ts , a nd

an y ot he r em

p l o yees an d as si st an ts to ai d in th e ad m in is tra ti on an d

en fo rcem en t of th e du ti es of th e bo ard

. The bo ard m ay req ue st as si st an ce fro m th e Att or ne y G e n e r al
, di st ric t at to rn ey s, or ot he r pr os ecu ti ng at to rn ey s of th i s st at e in th e va rio us ci rcu it s an d co un ti es

. All
pr os ecu ti ng at to rn ey s th ro ug ho ut th e st at e sh al l as si s t t h e bo ard
, up on req ue st of ei th er, in an y act io n fo r in jun ct io n or an y pr os ecu ti on wit ho ut ch arg e o r ad di ti on al co m pe ns at io n."

(Em ph as is ad de d.) Se ct io n 3 4- 9- 45 , Ala. Co de 19 75 , pro vi de s:

"Th e bo ard an d it s m em

be rs an d of

fic ers sh al l as si st pr os ecu ti ng of fic ers in th e en fo rcem en t of th is ch ap te r, an d it sh al l be th e du ty of th e bo ard
, it s m emb e r s an d of fic ers to fu rn is h th e pr op er pr os ecu ti ng of fic ers wit h su ch ev id en ce as it or th ey m ay as cert ai n to as si st th em in th e pr o s e c u t i o n of an y vi ol at io n of th is ch ap te r, an d th e bo ard is

au th or iz ed fo r suc h pur

poses to m ak e su ch reas on ab le ex pe nd it ur es fro m th e fu nd s of th e bo ard as it m ay de em ne ces sa ry to as cert ai n an d fu rn is h

su ch ev id en ce."

35 Case: 10-14282 Date Filed: 07/13/2012 Page: 35 of 4511 00 99 3

All th es e va rio us pr ov is io ns of Ch ap te r 9, Tit le 34
, Ala. Co de 19 75
, sh ow th at th e

rel at io ns hi p be twee n th e Bo ard an d th e St at e su pp or ts th e co nc lu si on th at th e Bo ard

is a St at e ag en cy

th at is en ti tl ed to § 1 4 i m m un it y

.

3. Nat ur e o f th e Fu nc ti on Perfo rm ed by the Bo ard

F i n a l l y, t h e na tu re of th e fu nc ti on pe rfo rm ed by th e B o a r d a l s o s u p p o r t s a

fin di ng th at t h e Bo ard is en ti tl ed to St at e im m un it y

. In ad di ti on to ex am in in g an d

li cen si ng th os e who wis h t o e ng ag e in th e p ract ic e o f de nt is try or d en ta l hygi en e in

th e St at e, th e Bo ard al so pr om ul ga te s ru le s an d reg ul at io ns go ve rn in g th e pr act ic e of

de nt is try an d th e pr act ic e of de nt al hygi en e; in ve st ig at es vi ol at io ns of Ch ap te r 9, Tit le

34
, Ala. Co de 19 75 ; in st it ut es pr oc eed in gs or ha s pr oc eed in gs in st it ut ed be fo r e i t

reg ard in g vi ol at io ns of Ch ap te r 9, Tit le 34 ; an d ta ke s di sc ip li na ry act io n ag ai ns t th os e

fo un d gu il ty of co nd uc t se t fo rth in § 34 -9 -1 8( a), Ala. Co de 19 75

. Add it io na ll y , § 34

-

9

- 5
, Ala. Co de 19 75
, pr ov id es th at wil lfu l vi ol at io ns of th e ru le s an d reg ul at i o n s

pr om ul ga te d b y

th e Bo ard co ns ti tu te s a m is de m ean or

.

In Ro dg ers v. Hop pe r, 76 8 So

. 2d 96 3 (Ala

. 20 00 ), th is C o u r t a d d r e ss ed th e

is su e whe th er the Alab am a Co rrec ti on s In st it ut e Fi na nc e Aut ho rit y ("AC IFA") was

a St at e ag en cy

en ti tl ed to Sta te im m

un it y :

"R odge rs ar gu es th at ACIFA is no t en ti tl ed to so ve rei gn im m unity be cau se , he arg ue s, it is no t an ag en cy of th e S t a t e a n d th us is no t

36 Case: 10-14282 Date Filed: 07/13/2012 Page: 36 of 4511 00 99 3

pr ot ect ed by Art. I, § 14
, of th e Co ns ti tu ti on

. Sect i o n 1 4 pr ov id es : '[T]he St at e of Alab am a sh al l ne ve r be m ad e a de fen da nt in an y co ur t of la w o r eq ui ty.' Thi s C ou rt ha s he ld th at 'th e us e of th e wor d "St at e" in Sect io n 14 was in te nd ed to pr ot ect fro m su it on ly im m ed ia te an d st ric tl y go ve rn m en ta l ag en ci es of th e St at e.' Tall as eeh at ch ie Cree k W at ers he d Co ns erv an cy Dis t. v. All red
, 62 0 So

. 2d 62 8, 63 1 (Ala. 19 93 ) (q uo ti ng Tho m as v. Alab am a Mu n. Elec

. Aut h., 43 2 So

. 2d 47 0, 48 0 (Ala

. 19 83 )). Thu s, we m

us t de te rm in e wha t co ns ti tu te s an 'im m ed ia te an d st ric tl y go ve rn m en ta l ag en c[y] .' T he te st fo r de te rm in in g whe th er a le gi sl at iv el y

crea te d bo dy is an im m ed i a t e an d st ric tl y go ve rn m en ta l ag en cy fo r pu rp os es of a so ve rei gn- im m uni ty an al y si s in vo lv es an as se ss m en t of (1 ) th e ch arac te r of th e po wer de le ga te d to th e bo dy; (2 ) th e rel at io n of th e bo dy to th e St at e; an d (3 ) th e na tu re of th e fu nc ti on pe rfo rme d b y th e bo dy. Arm or y Co m

m 'n of Alab am a v. St au dt
, 38 8 So

. 2d 99 1, 99 3 (Ala

. 19 80 )). In Tall as eeh at ch ie Cree k W at ers he d Co ns e r va nc y Dis t. v. All red
, su pr a, we ap pl ie d th es e fact or s to an en ti ty wit h po wers si m il ar to th os e of ACIFA. The Leg is la tu re ha d or ga ni zed th e Tall as eeh at ch ie Cree k W at ers he d Co ns erv an cy Dis tri ct ('Tal la se eh at ch ie Cree k') as a wate rs he d co ns erv an cy di st ric t ('WCD ' )
, pu rs ua nt to § 9- 8- 50 et se q., Ala. Co de 19 75

. As a W CD, [Tal la se eh at ch ie ] Cree k was au th or iz ed to act as an ag en t of th e St at e. I t e n jo y ed th e cu st om ary go ve rn m en ta l
po wer of em in en t do m ai n; it was ex em pt fro m St at e an d lo cal ta xa ti on ;

an d it be ne fit ed fro m le gi sl at iv e ap pr op ria ti on s. See §§ 9- 8- 61 (1 ), 9- 8- 61 (7 ), an d 9- 8

- 6 7. Des pi te th es e de ci de dl y go ve rn m en ta l ch arac te ris ti cs , we he ld th at Tall as eeh at ch ie Cree k, as a W CD, was an in de pe nd en t en ti ty, an d
, t h us , was no t en ti tl ed to so ve rei gn im m un it y

. Tall as eeh at ch ie Cree k, 6 20 So . 2d at 6 31

.

"Th is Co ur t ba se d it s ho l d i n g in th at cas e on se ve ral ke y ch arac te ris ti cs th at di s t i n g ui sh ed W CDs as en ti ti es se pa rat e fro m th e St at e. Tho se ch arac te ris ti cs in cl ud ed th e ab il it y to : (1 ) su e an d be su ed ; (2 ) en te r in to co nt ract s; (3 ) se ll a n d d is po se of pr op ert y ; an d (4 ) is su e bo nd s. Id

. at 63 0 (ci ti ng §§ 9- 8- 25 (a)( 13 ), 9- 8- 61 (6 ), an d 9- 8- 61 (4 ) an d (5 )). Not ab ly, th e Leg is la tu re al so ha d ex pr es sl y pr ov id ed th at de bt s an d ob li ga ti on s of a W C D w e r e n o t th e St at e's de bt s an d ob li ga ti on s. Id

.

37 Case: 10-14282 Date Filed: 07/13/2012 Page: 37 of 4511 00 99 3

(ci ti ng § 9- 8- 61 (3 )). W e fo un d th is fin al ch arac te ris ti c to be di sp os it iv e, st at in g:

"'Th is la st pr ov is io n cl earl y co nt em pl at es th at W CDs are

en ti ti es se pa rat e a n d ap art fro m th e St at e; th e pr ov is io n al so in tro du ces an el em en t of amb i g u i ty in to th e cru ci al
qu es t i o n o f th e fin an ci al res po ns ib il it y fo r an y jud gm en t ad ve rs e to a W CD.'

"Tal la se eh at ch ie Cree k, 6 20 So . 2d at 6 30

.

"In th e pr es en t cas e, ACIFA ha s t h e s e sa m e qu al it ie s, qu al it ie s

su gg es ti ng th at it is an en ti ty in de pe nd en t of the St at e. The se qu al it ie s in cl ud e: (1 ) th e po wer to su e an d be su ed ; (2 ) th e po wer t o e n t er in to

co nt ract s; (3 ) th e po wer to se ll an d di sp os e of pr op ert y ; (4 ) th e po wer to is su e bo nd s; an d (5 ) ex cl us iv e res po ns ib il it y fo r it s fin an ci al ob li ga ti on s (th e sa m e qu al it y th at we fo un d di sp os it iv e in Ta l la se eh at ch ie Cree k)

. See § § 1 4- 2- 8( 2) , 14 -2 -8 (5 ) th ro ug h (7 ), 14 -2 -1 2, an d 1 4- 2- 24

. "ACI FA arg ue s th at , no twi th st an di ng th at it h a s th os e qu al it ie s, it is or ga n iz at io na ll y in te rtwi ne d wit h th e St at e by v irt ue of th e St at e's

ov ers ig ht po wer reg ard in g ACIFA ' s c h i ef op erat in g act iv it y -- pr is on

co ns tru ct io n. Thi s ov ers ig ht po wer, ho wev er, is no t di ffer en t from th e po wer to di rect op erat io ns th at is co m m on ly ex erci se d by th e own er of

an y or di na ry bu si ne ss

. In th is cas e, th e St at e's po wer to d ire ct op erat io ns in cl ud es th e po wer to ap pr ov e pr is on -co ns tru ct io n pl an s an d th e us e of pr is on la bo r

. A C I F A 's rel at io ns hi p wit h th e St at e do es no t pe rs ua de us to acce pt it s ar gu m en t.

"Ra th er th an lo ok in g to ACIFA's op erat io ns , we m us t lo ok to it s

or ga ni zat io n a l a n d fin an ci al st ru ct ur e, as we di d wit h th e W CDs in Tall a s e e h a tc hi e Cree k. Acco rd in gl y , we co nc lu de th at ACIFA an d, de riv at iv el y , it s o ffi ci al s ar e n ot en ti tl ed to so ve rei gn im m un it y ."

76 8 S o. 2 d a t 9 66 -6 7.

38

Case: 10-14282 Date Filed: 07/13/2012 Page: 38 of 4511 00 99 3

In th is cas e, th e Bo ard ha s th e au th or it y to en te r in to em pl oym en t co nt ract s an d

to en te r in to co n t r a c t s t o e m pl oy at to rn ey s. Howev er, as we pr ev io us ly no te d, th e

Bo ard 's au th or it y to em

pl oy at to rn ey s is su bjec t to ap pr ov al by th e at to rn ey ge ne ral

.
See § 34 -9 -4 3( 8) b., Al a. Co de 19 75

.

Unl ik e ACIFA in Ro dg ers , th e Bo ard was no t gr an te d th e cart e bl an ch e

au th or it y to su e an d be su ed

. In st ead
, § 34 -9 -2 9, Ala. Co de 19 75
, m erel y au th or iz es

th e Bo ard to br in g an act io n in it s na m e in an y c ou rt of th e St at e fo r th e pu rp os e of

en joi ni ng a pe rs on fr o m v io la ti ng th e pr ov is io ns of Ch ap te r 9, Tit le 34
, Ala. Co de

19 75 . Also , § 3 4- 9- 18 (f), Al a. Co de 19 75 , pro vi de s:

"M em be rs of th e bo ard
, an y ag en t, em pl oyee, co ns ul ta nt , or at to rn ey fo r th e bo ard
, an d th e m em be rs of a n y c o mm i tt ee of de nt is ts or de nt al hygi en is ts im

pa ne le d by th e b oa rd , sh al l b e im m un e fro m su it s fo r an y

co nd uc t in t h e co ur se of th ei r of fic ia l du ti es wit h res pe ct to in ve st ig at io ns or he ari ng s; pr ov id ed
, th at th e pe rs on s act wit ho ut m al ic e

an d i n g oo d fa it h th at su ch in ve st ig at io ns or he ari ng s are w arra nt ed by th e fact s, kn own to th em a f t e r d i l i g en t effo rt to ob ta in th e fact s of th e

m at te r rel at iv e to th e in ve st ig at io ns or h eari ng s."

Ad di ti on al ly, un li ke ACIFA in Ro dg ers , th e Bo ard was no t sp eci fic al ly

au th or iz ed by th e le gi sl at ur e to se ll an d di sp os e of pr op ert y

. At m os t, th e le gi sl at ur e

pr ov id ed th at th e Bo ard co ul d "p ro vi de of fic es , fu rn it ur e, fix tu res , su pp li es , pr in ti ng ,

or se cret a r i a l s e r v i c e" to th os e pe rs on s it em pl oyed to as si st in it s du ti es an d in

ad m in is te rin g an d en fo rci ng th e pr ov is io ns of Ch ap te r 9, Tit le 34 , Al a. Co de 19 75

.

39 Case: 10-14282 Date Filed: 07/13/2012 Page: 39 of 4511 00 99 3

§ 34 -9 -4 3( a)(8 )a., Ala. Co de 19 75

. Fu rth er, th e le gi sl at ur e di d no t au t h o r i ze th e

Bo ard to is su e bo nd s or to in cu r in de bt ed ne ss

. Fi na ll y , in Ro dg ers , th is Co ur t rel ie d

he av il y on th e fact th at th e le gi sl at ur e ex pr es sl y pr ov id ed th at th e d e b t s an d

ob li ga ti on s of ACIFA w e r e no t th e de bt s an d ob li ga ti on s of th e St at e. Ch ap te r 9,

Tit le 34
, Ala. Co de 19 75
, do es no t co nt ai n an y si m il ar pr ov is io ns

. Th eref or e,

Ro dg ers is di st in gu is ha bl e.

The fact s of th is cas e are m or e cl earl y ak in to th os e in Mo on ey ha m v. St at e

Bo ard of Ch iro pr act ic Exa m in ers , 80 2 So

. 2d 20 0 (Ala

. 20 01 ). In Mo on ey ha m , th is

Co ur t ad dr es se d th e is su e whe th er th e Bo ard of Ch iro pr act ic Exa m in ers was an ag en t

of th e St at e an d t he refo re en ti tl ed to Sta te im m un it y :

"We ne xt ad dr es s t he im m un it y of th e Bo ard it se lf. The Bo ard
arg ue s th at it is a St at e ag en cy a nd th at as a St at e ag en cy it en joy s ab so lu te im m

un it y fro m an y laws ui t. We agre e.

"Art ic le I, § 14
, of th e Co ns ti tu ti on of 19 01
, pr ov id es : '[T]he St at e of Alab a ma sh al l ne ve r be m ad e a de fen da nt in an y co ur t of la w or eq ui ty.' W it h re sp ect to th e wor d 'S ta te ,' we ha ve sai d:

"'Th is Co ur t ha s he ld th at "t he us e of th e wor d ' S t a t e ' in Sect io n 14 was in te nd ed to pr ot ect fro m su it on ly im m ed ia te an d stri ct ly go ve rn m en ta l ag en ci es of th e St at e." Ta ll as eeh at ch ie Cree k W at ers he d Co ns erv an cy Dis t. v

. All red
, 62 0 So. 2d 62 8, 63 1 (Ala. 19 93 ) (q uo ti ng Tho m as

v. Alab am a Mu n. Elec

. Aut h

. , 43 2 So

. 2d 47 0, 48 0 (Ala

. 19 83 )). Thu s, we m

u s t de te rm in e wha t co ns ti tu te s an "i m m ed ia te an d st ric tl y go ve rn m en ta l ag en c[y] ." The te st

40 Case: 10-14282 Date Filed: 07/13/2012 Page: 40 of 4511 00 99 3

fo r de te rm in in g wh et he r a le gi sl at iv el y crea te d bo dy is an im m ed ia te an d st ric tl y go ve rn m en ta l ag en cy fo r pu rp os es

o f a so ve rei gn -imm

un it y an al y si s in vo lv es an as se ss m en t of (1 ) th e ch arac te r of th e po wer de le ga te d to th e bo dy; (2 ) th e rel at io n of th e bo dy to th e St at e; an d (3 ) th e na tu re of th e fu nc ti on pe rfo rm ed b y t he bo dy. Arm or y Co m m 'n of Alab am a v . Sta ud t, 3 88 So . 2d 99 1, 9 93 (Ala . 19 80 ).'

"Ro dg ers v. Ho pp er, 7 68 So . 2d 96 3, 9 66 (Ala . 20 00 ).

"Th e Bo ard of Ch iro p r a ct ic Exa m in ers is a le gi sl at iv el y crea te d bo dy. § 34 -2 4- 14 0, Ala. Co de 19 75

. The Bo ard is au th or iz ed to co nt ro l th e li cen si ng of ch iro pr act or s, § 3 4

- 2 4

- 16 1, an d is ch arg ed wit h
reg ul at in g th e ch iro pr act ic pr of es sio n, § 34 -2 4- 16 6. Alt ho ug h th e Bo ard

m ay co ll ect cert ai n fees to ge ne rat e rev en ue , it is req u i r e d by la w to de po si t t ho se fun ds in th e St at e Treas ur y , whi ch se ts as id e th os e fu nd s fo r th e Bo ard 's u se . § 3 4- 24 -1 43 . Und er § 34 -2 4- 14 3, th os e fu nd s ar e ap pr op ria te d to th e Bo ard 'to de fray t he ex pe ns es in cu rred ' i n c arrying

ou t th e Bo ard 's ch arg es

. O ur e xa m ina tio n of the st at ut es c re at ing

an d em po weri ng th e Bo ard sh o w s th at th e Bo ard is a reg ul at or y bo dy th at rece iv es it s fu nd in g fro m th e St at e. The refo re, we co nc lu de th at th e Bo ard is a St at e ag en cy an d, co ns eq ue nt ly, is en ti tl ed to § 14 im m un it y

. B e c au se th is im m

un it y , whe n ap pl ie d to a go ve rn m en ta l en ti ty, i s ab so lu te , th e ci rcu it co ur t p ro pe rly dis m is se d a ll th e cl ai m s aga in st th e Bo ard ."

80 2 So

. 3d at 20 3- 04

. Lik e th e Bo ard of Ch iro pr act ic Exa m in ers , th e B o a r d " is a

reg ul at or y

bo dy tha t re cei ve s i ts fun di ng fro m th e St at e." 8 02 So . 2d at 2 04

.

Bas ed on th e fo reg oi ng , it is cl ear th at th e Bo ard is "an arm of th e st at e" rat he r

th an a m ere "fr an ch is ee li cen se d fo r so m e be ne fic ia l pu rp os e." St au dt
, 38 8 So

. 3d at

99 3. The refo re, th e Bo ard is an "i m m ed ia te an d st ric tl y go ve rn m en ta l ag en c[y] of th e

41 Case: 10-14282 Date Filed: 07/13/2012 Page: 41 of 4511 00 99 3

St at e," M o o n ey ha m , 80 2 So

. 2d at 20 3- 04
, th at is en ti tl ed to im m un it y pu rs ua nt to

Art. I, § 14
, Ala. Co ns t. 19 01
, an d th e Co ur t of Ci vi l App eal s erre d whe n it co nc lu de d

ot he rwis e. 7

B.

The Bo ard al so arg ue s th at th e Co ur t of Ci vi l App eal s erre d whe n, ba se d on it s

co nc lu si on th at th e Bo ard was no t a S t a t e a g e n c y, it co nc lu de d th at th e Bo ard of

Adju st m en t was no t t he pro pe r fo ru m for W il ki ns on 's c la im s ag ai ns t i t.

In Vau gh an v. Si bl ey , 70 9 So

. 2d 48 2, 48 6 (Ala

. Ci v. App

. 19 97 ), th e Co ur t of

Ci vi l Ap pe al s s ta te d:

"Be cau se of th e so ve rei gn im m un it y cl au se , th e co ur ts of th is st at e

are wit ho ut juri sd ic ti on to en te rta in a su it se e ki ng da m ag es , in cl ud in g ba ck pa y , fo r br each of co nt ract ag ai ns t th e st at e. St at e Bd

. of Adju st m en t v. Dep art m en t of Men ta l Heal th
, 58 1 So

. 2d 48 1 (Ala

. Ci v. App

. 19 91 ). Vau gh an 's rem ed y , if an y , is wit h th e Bo ard of Adju st m en t. Sect io ns 41 -9 -6 2( a)(4 ) an d (a )(7 ), Co de of Al ab am a 1 97 5, p ro vi de :

I n Ver siglio v. B oard of

Dental Examiners of Ala bama, 651 F .3d 1272 (11th. Cir. 2011), 7 decide d afte r Wilki nson, the United States Court of Appe als for the Eleventh Circuit addr essed the issue whethe r the B oard w as entitled to Eleventh Ame ndment immunit y from Ve rsig lio's claims asser

ted pursuant to the F air L abor Standa rds Act. I n addre ssing this issue, the Eleve nth Circuit noted that the B oard " appea r[ed] t o have a

viable ar g ument that it is an arm of the State under" the test set forth in Micc osukee Tr ibe of I ndians v. Florida State Athletic Commiss ion, 226 F. 3d 1226 ( 11th Cir. 2000). 651 F.3d a t 1274. Howeve r, in light of the Court of Civil Appea ls' de cision in W ilkinson, t he Eleve nth Circuit ulti mately deter mined that "a

holding by [t he Eleve nth Circuit] that the B oard is an a rm of the state for pur

poses of sover eig n immunit y would be inappr opriate." 651 F.3d a t 1277.

42

Case: 10-14282 Date Filed: 07/13/2012 Page: 42 of 4511 00 99 3
"'(a ) The Bo ard of Adju st m en t sh al l ha ve th e po wer

an d ju r i s d i c t io n an d it sh al l be it s du ty to he ar an d

co ns id er:

"'....

" ' ( 4 ) All cl ai m s ag ai ns t th e St at e of Alab am a or an y of it s ag en ci es , co m m is si on s, bo ard s, in st it ut io ns or de pa rtments ari si ng ou t of an y co nt ract , e xp res s o r im pl ie d, to whi ch th e St at e of Alab am a or an y of it s a ge nc ie s,

c o m m i s s i o n s , b o a r d s , i n s t i t u t i o n s o r de pa rtments are pa rti es , whe re th er e is cl ai m ed a le ga l or m or al ob li ga ti on res ti ng on th e st at e;

"'....

"'(7 ) All cl ai m s f

or un de rp ay m en t by th e St at e of Alab am a or an y of it s a g en ci es , c o m m i s s i o n s , b o a r d s , i n s t i t u t i o n s o r de pa rtments to pa rti es ha vi ng de al i n g s wit h th e S t a t e of Alab am a or an y of it s ag en ci es , c o m m i s s i o n s , b o a r d s , i n s t i t u t i o n s o r de pa rtments .'

"(Em ph as is ad de d.) The Bo ard of Adju st m en t ha s juri sd ic ti on ov er cl ai m s ag ai ns t th e st at e th at are n ot jus ti ci ab le in th e co ur ts be cau se of th e st at e's co ns ti tu ti on al im m un it y fro m be in g m ad e a de fen da nt

. Lee v. Cu nn in gh am , 23 4 Al a. 63 9, 6 41 , 17 6 S o. 4 77 (19 37 )."

Fu rth er, § 41 -9 -6 2( b) , Ala. Co de 19 75 , pro vi de s, i n p ert in en t p art :

"[T]he juri sd ic ti on of th e Bo ard of Adju st m en t is sp eci fic al ly li m it ed to th e co ns id erat io n of th e cl ai m s en um erat ed in s u b s e c t io n (a) of th is

se ct io n and no ot he rs ; ... no th in g con ta in ed in th is su bd iv is io n sh al l be

43 Case: 10-14282 Date Filed: 07/13/2012 Page: 43 of 4511 00 99 3

co ns tru ed to co nf

er juri sd ic ti on up on th e Bo ard of Adju st m en t to se tt le

or ad jus t an y m at te r or cl ai m of whi ch th e co ur ts of th is st at e ha ve or ha d ju ris di ct io n ...."

In Lee v. Cu nn in g h a m, 2 3 4 A l a. 63 9, 17 6 So

. 47 7 (1 93 7)
, th is Co ur t st at ed th e

fo ll owi ng wit h re ga rd to th e o rig in al act crea ti ng th e Bo ard of Ad jus tm en t:

"Ou r jud gm en t, ho wev er, is th at th e le gi sl at iv e pu rp os e di sc lo se d in th e act

... was to co nf

er on sa id bo ard juri sd ic ti on ov er cl ai m s ag ai ns t th e st at e, co lo rab le le ga ll y an d m or al ly well gr ou nd ed
, no t jus ti ci ab le in th e co ur ts be cau se of th e st at e's co ns ti tu ti on al im m un it y fro m be in g

m ad e a de fen da n t ( C o n s t. 19 01
, § 14 ), an d to ex cl ud e fro m it s juri sd ic ti on cl ai m s well gr ou nd ed in la w or eq ui ty, co gn iz ab le by th e

co ur ts ."

23 4 Al a. at 64 1, 1 76 So . at 4 79 (em ph as is ad de d)

.

The Co ur t of Ci vi l App eal s ba se d it s co nc lu si on th at th e Bo ard of Adju st m en t

was no t th e pr op er fo ru m fo r W il ki ns on 's cl ai m s on it s erro ne ou s ho ld in g th at th e

Bo ard was no t en ti tl ed to § 14 im m un it y

. Howev er, be cau se we ha ve de te rm in ed th at

th e Bo ard is a St at e ag en cy an d th eref or e en ti tl ed to im m

un it y pu rs ua nt to § 1 4, t he

co ur ts of th is St at e are wit ho ut juri sd ic ti on in th is cas e, an d th e Bo ard of Adju st m en t

wou ld ha ve juri sd ic ti on ov er Wilk in so n's cla im s.

Fo r th es e reas on s, th e Co ur t of Ci vi l App eal s erre d whe n it rev ers ed th e tri al

co ur t's jud gm en t di sm is si ng W il ki ns on 's co m pl ai nt ag ai ns t th e Bo ard an d rem an de d

th e cas e fo r fu rth er pr oc eed in gs

. Acco rd in gl y , we rev ers e th e jud gm en t of th e Co ur t

44 Case: 10-14282 Date Filed: 07/13/2012 Page: 44 of 4511 00 99 3

of Ci vi l App eal s an d rem an d th e cas e to th at co ur t fo r th e en try of a jud gm en t

co ns is te nt wit h t hi s o pi ni on

.

REVERSED AND REMANDED.

Mal on e, C.J
., an d W oo da ll
, St ua rt, Bo li n, Park er, Mu rd oc k, Sh aw, an d Mai n,

JJ ., con cu r.

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