1 7 2 [8 9 O p
. A tt ’y

B UD GE T AR Y A DMI NI S T RA T I ON
U N EM P LOYMENT I NSURANCE

– A PPRO PRI ATE U SE OF F UNDS IN THE S PECI AL A DMINI STRATI V E E X PENSE F UN D

N ovember 3, 2004

Ho n o r a b l e J

a me s D. F i e l d e r, J

r

. , P h

. D. Secr et ar y of Labor, Li cens i ng, and R egul at i on M r

. W ar r en G

. D es chenaux D epar tm ent

of Legis l at i ve Se r vi ces O ffi c e o f P o licy A n a lys is

Y ou have e ach a s ked for ouropi ni on conce r ni ng t he app rop ria te u se of fu nd s fr om t he S pecial A dm i nis t rat i ve E xp ense Fund ( “t he SA E F” or“t he Fund”) , a s peci al fund admi ni s t er ed byt he D ep artm en t of

L ab o r, L ic en sing , an d R eg u lat ion (“D L L R ”). S ecr et ar yFi el derhas al s o pos ed s peci fi c ques t i ons conce r ni ng t he us e of the SA E F t o s uppl ement fede r al funds r ece i ved fort he a d m in istra tio n o f

th e M a ry lan d U n e m p lo y m e n t In su ra n c e L a w , to payexpens es r el at ed t o t he occ upancy , m aint enanc e, and im p ro v e m e n t o f

sp a c e u se d f

o r th e a d m in istra tio n o f

th a t law , an d to payfor“s ubsti tut ed oper at i onal cos t s i ncur r ed as a r es ul tof c o n s o lid a tio n o f

le a s e d s p a c e .”
SA E F funds mayb e us ed fort he var i ous admi ni s t r at i ve purpos es s etfor t h i n the SA E F st atut e. N ei t hert he budgetbi l l nor a budgetamendm entm ayexpand thos e purpo ses. A m ong t he purpos es l i s t ed i n t he SA E F s t atut e i s t he acquis i t i on of s pace us ed f o r th e a d m in istra tio n o f th e U n e m p lo y m e n t In su ra n c e L a w . W h ile t her e i s no s peci fi c pr ovi s i on i n t he SA E F st atut e t hatal l ow s fort he paym entfr om the F u n d of cos t s r el at ed t o occupa ncy , s uch as uti l i t ies , m ai ntenance, and securi t y , i n som e ci rcum st ances t hese c o sts m a yb e c o n sid e r e d p a r t o f th e c o st o f

a c q u isitio n . M o n e yin t h e SAEF ma yn o tb e d e v o t e d t o a u s e n ot al l ow e d b yt h e SAEF sta tu te, s u c h a s o p e ra tio n a l ex p e n se s, u n les s th e G e n e ra l A ss e m b ly pas s es a l aw per m i t t i ng t hatus e.G en. 172] 173

Title 8 of the L abor and Employ ment Article, otherwise known a s 1 th eM a r y la n d Un e mp lo y

ment Insuranc e L aw, is administere d by the Off ice of Une mploy

ment Insuranc e and the Offic e of Employ ment Service s. See L E §8-301 et seq. I Backg r ound
A
. Mar

yland U nemploym ent

I nsur ance Law
U n e m p lo y m e n t in su ra n c e is “ in ten d e d to p re v e n t ec o n o m ic inse cu ri tyan d to alleviate the co n seq u en ce s o f in v o lun tary u n em p l oy m entand ec onom i c di s t r es s
. ” A llen v . C o re T a rg e t C ity Y o u th P r ogr am , 2 7 5 M d

. 6 9 , 7 5 , 3 3 8 A. 2 d 2 3 7 ( 1 9 7 5 )

. T he M ary l and U nem ploym ent I nsurance L aw , and rel at ed regu l at i on s, pr ovi de a pr oces s by w hi ch an i ndi vi dual can c l ai m unempl oy m ent i ns ur ance benef

i t s
. A nnot at ed C ode o f M ar y l and, L aborand E m pl oy m ent A r t i cl e (“ L E ”) §8- 101 et s eq
. ; C O M A R 09. 32. 01. T he l a w i s a d mi n i s t e r e d b yv a r i o u s c o mp o n e n t s o f DLL R. 1
L i ke ot her s t at e unempl oy m ent i ns ur ance l aw s , t he M ar y l and s t atut e w as enac t ed dur i ng t he D epr es s i on i n r es pons e t o a par tof t he S o c ia l S e c u ri ty A c t th a t e n c o u ra g e d th e c re a tio n o f s u c h la w s
. See C ha p t e r 1 , Dec

. Sp e c
. Se s s
. , La ws o f M a r y l a n d 1 9 3 6 ; § 3 0 2 o f t he S o cial S ec u ri tyA ct, 4 9 S tat

. 6 2 6 (A u g u st 14 , 1 9 3 5 ) codi f i ed at 42 U .S .C . § 5 0 2 ; see al

so 48 O pi ni ons of

t he Att o rn ey G ener al172 ( 1963) ( des cr i bi ng or i gi n of St at e s t atut e)

. T he Feder al U nem ploym ent Tax A ct set s m i nim u m st and ards that s t at es m ust s at i s fyi n or der t o par t i ci pat e i n t he fe der al

- s t at e unempl oy m ent c o m p e n s a tio n s c h e m e a n d re c e iv e f e d e ra l f u n d in g
. See 7 6 A m
. Ju r. 2d U nem pl oym ent

C om pens at i on §§4, 19- 20. T he M ar y l and U n e m p lo y m e n t In su ra n c e L a w is to b e c o n stru e d c o n sis ten tlyw ith t he var i ous fede r al s t atut es gover ni ng unempl oy m entcompensa t i on. L E § 8 -10 3 (a).
Feder al l aw es t abl i s hes a Feder al U nempl oy m entT r us tFund, w h ich col l ect s and di s bur s es funds r el at ed t o unempl oy m ent c o m p e n sa tio n b e n e f

its. 4 2 U .S .C . § 1 1 0 4

. O n e o f th e a c c o u n ts in th a t f u n d , k n o w n as the em ploym e n t se c u ritya d m in istra tio n a c c o u n t, i s us ed t o pr ovi de gr ant s t o s t at es fo r the a dm i ni s t r at i on of unempl oy m entcompensa t i on pr ogr ams pur s uantt o §302 of t he S o c ia l S e c u ri ty A c t

. See 4 2 U

. S

. C

. § § 5 0 2 (a), 1 1 0 1 (a), 1 1 0 1 (c )(1 )(A )(i); see al so 20 C FR §601. 6.1 7 4 [8 9 O p
. A tt ’y

The SAEF was c reated in 1945. SeeChapter 270, L aws of 2 Maryland 1945. Funds may be tra

nsfer red to the SAEF temporarily from the UIAF 3 when the Secre tary uses the S AEF to cover expenses for the a cquisition, repair, or ma i n t en an ce of officespace , and those e xpenses will be reimburse d from fe deral f unds. In those circ umstances, the Sec reta ry may transfe r UIAF mone y s t o the SAEF, so longas the tra nsfer does not e xce e d th e amou

nt o f t he fede ralre imb ur se me nt a nd e qu a ls t he“ fair rea sonable re ntal value”o f th e l and or buildi ng s acquire d or of the proportionate a

mount of spaceused. LE §8-422(e ). M ar y l and l aw pr ovi des fort he es t abl i s hm entof s ever al s peci al funds t o carr yout t he St at e U nempl oy m entI ns ur ance L aw
. A m ong t hos e funds ar e t he U nempl oy m entI ns ur ance Fund ( L E §§8- 401 et s eq. ) , w hi ch i s us ed t o paybene fit s and r efunds , and t he U nempl oy m entI ns ur ance A dm i ni s t r at i on Fund ( “U I A F”) ( L E §8- 412 et s eq .), w h ich is u se d to p a yv a rio u s a d m in istra ti v e c o sts a s s o c i a t e d wi t h t h e Un e mp l o y me n tI n s u r a n c e L a w. T h e UI AF c o n sis ts o f

m o n e yf

ro m a v a rie tyo f

so u rc e s, in c lu d in g a m o u n ts pr ovi ded underT i t l e I I I of t he Soci al Secur i t y A ct ( 42 U

. S. C

. §501 et s eq ) and t he fe der al W agner - Pey s erA ct ( 29 U

. S. C

. §49 et s eq. ). L E § 8 -4 1 4 (a ). F e d e ra l f u n d s an d S tate a p p ro p ria tio n s d e p o site d in t he U I A F m aybe s pentonl yi n acc or dance w i t h gui dance o f t he fe d era l Se cre taryo f L ab o r. L E § 8 -41 4 (b)(2 ).
T he s ubj ectof y ouri nqui r y is a thir d fund, know n as t he Speci al A dm i ni s t r at i ve Expense Fund. T he SA E F i s t o be devot ed t o cer t ai n admi ni s t r at i ve cos t s as s oci at ed w i t h t he U n empl oy m ent I ns ur ance L aw , buti s nots ubj ectt o the feder al r es t r i ct i ons g o v e rn in g u s e o f

f u n d s in th e U IA F

. B. Spe c i al

Adm inis tr ati v e Expe ns e Fund
T he SA E F i s gover ned byL E §8- 419 t hr ough §8- 422. T he 2 F un d co nsi st s of m on ey app ropri at ed i n t he S t at e bu dg et from fi nes, i nt er es t , and ot herpenal t i es col l ect ed undert he M ar y l and U ne mpl oymentI ns ur a nc e Law, mone yt r a ns fe r r e d f r om t he U I A F, 3
an d an yv o lun taryco n tr ibu ti o n s to the F u n d

. L E § 8 -42 1 (a). E xpendi t ur es fr om t he SA E F ar e s ubj ectt o const it u ti onal and statu tory b u d g etaryan d ap p rop ri ati o n p roc ed u res. L E § 8 -42 2 (b). Fol l ow i ng t he end of

eac h fi s cal y ear , t he Secr et ar yi s t o d ir ec t the S t at e T reas urer t o t ransfer t o t he G eneral F un d any balance i n ex cess o f $ 2 5 0 ,0 0 0 in th e F u n d th a t th e S e c re tar y h a s n o t b e e n a llo c a ted inG en. 172] 175
accordan ce w i t h the st at ute. L E §8 -422(f). T h e st at ute al so pr ovi des fort r ans fer s t o t he U I A F i n cer t ai n ci r cumst ance s
. L E §§8- 41 5(d), 8-422 (d)

. H ow ever, m on ey i n the SA E F m ayno tother w i se b e tran sfe rred to an yo ther f u n d

. L E § 8 -42 0 (b)(2 ).
T h e sta tu te s p e c if

ies se v e ra l p u r p o se s o f

th e S A E F . F irst, it m aybe us ed as a r evol vi ng acc ount to co v er cos t s “t hatar e pr oper undert he law ” for t he admi ni s t r at i on of t he U nempl oy m ent I n s u r a n c e La w, p e n d i n g f e d e r a l r e i mbu r s e me n to f t h o s e c o s t s
. LE § 8 -4 2 1 (b )( 1 ).
S e c o n d , the S A E F m a ya lso b e u se d to m a k e p a y m e n ts to ad just f o r ce rt ain typ es o f e rrors. Fo r ex am p le, itm ay b e u sed fo r: ( 1) r ei m bursem en t of i nt er es ton cont r i but i ons col l ect ed err oneous l y
. L E §8- 4 2 1 (b )( 2 )( i)

. ( 2 ) co s t s o f

a d mi n i s t r a t i o n o f

t he U nempl oy m entI ns ur ance L aw t hathave be en i m pr oper l ychar ged aga i ns tfede r al funds c re d ite d to th e U IA F . L E § 8 -4 2 1 (b )( 2 )( ii)

. ( 3 ) r e p l a c e me n t wi t h i n a r e a s o n a b l e t i me of m oneyt hatt he St at e r ece i ves under§302 of t he Soci al S ec ur i t yA ctand t hat“bec aus e of an ac t i o n o r c o n t i n g e n c y h a s b e e n l o s t o rhas b e e n u se d f

o r p u rp o se s o th e r th a n o r in a mou n t s e x c e e d i n g t h o s e n e c e s s a r y ” for pr oper admi ni s t r at i on of t he U nempl oy m ent In s u ra n c e L a w . L E § 8 -4 2 1 (b )( 2 )( iii) 1

. F in a lly , the F u n d m a y b e u se d to a c q u ire o f f ice sp a c e “ su itab le f o re f f e c t i v e a d mi n i s t r a t i o n ” o f t h e Un e mp l o y me n tI n s u r a n c e L a w. L E § § 8 -4 2 1 (b )( 2 )( iii) 2 , (c ).
T he G eneral A ssem bly has placed a l i m i t at i on on al l t hese per m i s s i bl e us es of t he Fund: t he Fund s houl d not di s pl ace fede r al funds t hatw oul d ot her w i s e be avai l abl e t o pay fort he admi ni s t r at i on o f th e U n em p loy m en t I n su ran ce L aw
. L E § 8 -42 1 (d).
O n occa s i on, th e Legi s l atur e has al s o condi t i oned t he us e of the SA E F i n t he annua l budgetbi l l

. For exampl e, t he budgetbi l l for F isc a l Y e a r 1 9 9 8 p ro v id e d th a t:1 7 6 [8 9 O p
. A tt ’y

The Auditor a lsos ug g e s te d that DLLR discuss with various control 4 entities whether

$4.7 milli on should be reimburse d to the Gene ral F und. We u nd e rs tand tha t, a ft e r re vie w o f the c ir c ums tanc e s of thee xpe nditure s, the control e ntities recommende d ag ainst reimburseme nt of the Ge n eral Fund. N o funds derive d fr om t he Speci al

A dm i ni s t r at i ve Expens e Fu n d ( SA E F) s hal l be added t o t he budg et th rou g h budget amendm ent , exce ptas requi r ed t o offs et r educt i ons i n fede r al r evenue s bel ow t he l evel es t i m at ed i n t hi s budget , t o addr es s i ncr eas ed l evels of unempl oy m ent , ort o m ake c r i t i cal r epai r s t o el i gi bl e fa ci l i ti es
. U nexpende d funds i n exce s s of $250, 000 s hal l be t r ans ferr ed t o t he gene r al fund as pr ovi ded by la w
. C h a p te r 3 , L a w s o f

M a ryla n d 1 9 9 7 a t p . 1 7 0

. See a l so C hapt er8, L aw s of M ar y l and 1994 ( condi t i oni ng us e of Fund forl ocal offi ce acqui s i t i on orcon s tru ct i on on s ubm i s s i on of pl ans and cos tes t i m at es t o l egi s l at i ve budgetcomm i t t ees forr evi ew and comm ent )

. Such p ro v isio n s a re e f

f e c tiv e o n lyd u rin g th e f

isc a l y e a r to w h ich th e b ill app l i es. C
. L e g isla tive A u dit
I n 2002, t he Legi s l at i ve A udi t orfound t hatD L L R had made i m pr operus e of t he SA E F Fund forr out i ne oper at i ng expens es , s uch a s t e l e c o mmun i c a t i o n s
. Th e Aud i t o r r e c o mme n d e d t h a tDLLR stric tlyc o m p lyw ith law g o v e rn in g th e S A E F in th e f u tu re
. A u d it

4 R epor tconce r ni ng t he D ep art m entof Labor , L i cens i ng, and R egul at i on ( J une 2002) , p. 13. D L L R obj ect ed t o t hi s fi ndi ng on t he bas i s t hat i tr el i ed on l egal advi ce thatSA E F funds c oul d be us ed for anypurpos e aut hor i zed by t he G ener al A s s embl y
. I ts t at ed t hatt he a m o u n ts in q u e stio n h a d b e e n id e n tifie d in b u d g e t b ill document at i on orw er e i ncl uded i n budgetamendm ent s t hatr es ul t ed f ro m s h o rt a g e s o f

f e d e ra l f u n d in g
. Id ., A p p e n d ix , p p .3 -4

.G en. 172] 177

Prior to 1986, thefunds in the SAEF w eretreated as “unbudg eted 5 funds” a nd we re s p ent under

an ag ency

resolution without a leg islative appropriation. After a

leg islative audit questioned that pro c e ss, an opinion b y Att o r n e y G e n e r a l S a c h s c o n c l u d e d th at f un d s i n th e S A E F ar e “ m o n e ys of the State”for pur

poses of the Ma

ryland Constitut ion and therefore subject t o budg et and appropriation proce dures. SeeOpinion No. 86-014 (March 10, 1986) (unpublished). The G en eral A s s e mb ly also amende d the statute to clarif

y that those proce dures a

pplied. C h ap ter 399, L aws of Maryland 1986, n o w c odified at L E §8-422(b)

. SeeFloor Repor t for S en ate Bill 1040 (1986) (e xplaining that the leg islation arose out of the leg islative audit and wa s designed to ensurethat SAEF funds w ere appropriated through the budg et proc ess). II
A n a ly sis
W e add ress fi r s tw het hert he budgetorbudgetamendm ent pr oces s m aybe used t o s pend S A E F funds for a purpos e ot hert han o n e id e n tifie d in th e S A E F sta tu te. W e th e n a d d re ss se v e ra l sp e c if ic qu e s t i on s t ha tr e l a t e t o t he op e r a t i on a nd us e of t he SA EF.
A
. T r ansf erof SA E F F unds f

orO therP urpos es by B udget P rocess Secr et ar y Fi el dernot ed t hatat t or ney s i n t hi s O ffi ce ha ve gi ven var y i ng i nt erpr et at i ons aboutt he ef fec tof t he budget pr oces s on t he us e of SA E F funds a nd reque s t ed cl ar i fi cat i on as t o w het hert he budgetpr oces s w oul d per m i t D L L R t o us e SA E F f unds forpurpos es in a d d itio n to th o s e e x p lic itly lis te d in th e S A E F s ta tu te

. 1. U s e of

SA E F F und s f

or O t her Pu rpos es und er Bu dget A ppropri at i on
L E § 8 -4 2 2 (b ) state s tha t m o n e y in th e S A E F “ sh a ll b e sp e n t in a c c o rd a n c e w ith a p p ro p ria tio n s in th e S tate b u d g e t.” O n its f a c e , it m i ghtappea rt hatt hi s pr ovi s i on al l ow s SA E F funds t o be s pentfor anypurpos e author i ze d byt he G ener al A s s embl yi n t he annua l budgetbi l l

. H ow ever , t he l egi s lat ive hi s t or yof LE §8- 422( b) demonst r at es t hati tw as enac t ed t o cl ar i fy t hat t he SA E F i s s ubj ect to th e b u d g e t an d a p p ro p ria tio n s p ro c e ss th a t ap p lies g e n e ra llyto m oney s of t he St at e. 5
I n anyevent , i ti s w el l es t abl i s hed t hat , w hen t he G ener al A ssem bly est abli shes a speci al fun d ded i cat ed t o speci fi c pu rposes,1 7 8 [8 9 O p
. A tt ’y

t he b ud get bi l l m ayon l yapp ropri at e m on eyfrom t hat fund for t ho se s p e c if ic p u rp o s e s
. See 20 O

p ini ons of

t he At t or ney G ener al201, 203- 4 ( 1935)

. W hi l e t he L egi s l atur e m ay condi t i on t he use of m oney s fr om a s peci al fund i n t he budget bi l l , i ti s cons t r ai ned fr om c h a n g in g th e sta tu to ry u se s b y th e p ro h ib iti o n a g a in st “ leg isla tin g in th e b u d g e t.” T h e C o u rt o f A p p e a ls h a s e x p lain e d th a t p e rm iss ib le co n d it ion s in the b u d g et bill “a re d ir ec tl y related to the ex p en d itu re o f th e s u m a p p ro p ri a te d , do notam end s ubs t ant i ve l egis l at i on or dul y adopt ed adm i nis t r at i ve r ul es and ar e ef fec t i ve onl y dur i ng t he fi s cal y earforw hi ch t he appr opr i at i on i s m ade. ” B ayn e v. Secret ary o f S ta te , 2 8 3 M d

. 5 6 0 , 5 7 6 , 3 9 2 A

. 2 d 6 7 (19 7 8 ) (em p h asis ad d ed );
see a l so 73 O pi ni ons of

t he At t or ney G ener al43, 46- 48 ( 1988) ( r ecount i ng hi s t or yof pr ohi bi t i on agai ns t“l egi slat i ng i n t he budget ”)

. “A budgetbi l l i s n o t a m eans byw hi ch t he G ener al A s s embl ym ayenl ar ge t he s cope of a stat u te. ” 81 O

pi ni ons of

t he A t t o rn ey G ener al2 6 9 , 2 7 5 (19 9 6 ). H o w ev er, w h ere the s tatu tory l anguage s peci fy i ng t he us e of a s peci al fund i s ambi guous , budget b il l l an g u ag e m ay aid in m ea su ri n g th e sco p e o f th e statuto ry re s tr ic tio n s
. Id

. at 275- 76 ( ambi guous phr as e “tr ans por t at i on r el at ed purpos e” c oul d r eas onabl ybe constr ued t o encompas s s t adi um par ki ng l oti n l i ghtof budget bi l l l anguage aut hor i zi ng t he us e of a s p e c ia l f u n d g ra n t f

o r t h a t p u rp o s e ).
T hus , t he bud g et bi l l cannotexpand the purpos es forw hi ch SA E F funds maybe us ed. T he G ener al A s sem bl yhas s peci fi ed t hos e purpose s i n t he U nempl oy m entI ns ur ance L aw
. T he appr opr i at i on of m oney s fr om t he SA E F i n t he budgetbi l l i s l i m i t ed t o tho se purpos es
. O f cour s e, t he G ener al A s s embl ym ayexpand t hos e purpos es i n s epar at e le gi s l at i on. A nd, t o t he ext entt hatt he SA E F st atute is am bi guous , l anguage i n t he budgetbi l l m ays hed lig h t o n th e m e a n in g o f th a t s ta tu te

. 2. U s e of

SA E F F und s f

or O t her Pu rpos es und er Bu dget A m e ndm e nt
T he budgetamendm en t pr ocedur e i s s etfor t h i n A nnot at ed C o d e o f M ary land , S tat e F inan ce & P roc u rem en t A rti cle (“S F P ”), § 7

- 2 0 9

. Und e r t h a t s t a t u t e , a n a p p r o p r i a t i o n f o r a p r o g r a m of

an offi ceroruni tof t he Execut i ve B r anch ma y b e am ended w i t h t he appr oval o f t he Secr et ar yof B udgetand M anage m entand t he G o v e rn o r. S F P § 7 -2 0 9 (b ).
T her e ar e s ever al i m por t antcons t r ai nt s on t he co n te ntof a budgetamendm ent

. W hi l e a budge tam en d m ent m aychange t he m onet ar yamount of an a ppr o p ri at i on, i t“maynotchange anyG en. 172] 179

SF P §§ 7- 20 9 a

nd 7- 21 7, amon goth e rs , w e resu bs tanti a lly 6 amende d in the Budg et Reconc iliation and Financ in g Ac tof 2004. Cha pt e r 4 30 , § 1, L aws of

Mary land 20 04 . T hepe rt ine nt a

me ndme nts beca me ef fec tive on June 1, 2004. Id ., §34. l anguage ors ubs t ant i ve pr ovi s i on i n t he St at e budget

. ” SFP §7- 2 1 0 (a ). Speci al r es t r i ct i ons gover n t he amendm entof appr opr i at i ons f rom a speci al fun d such as t he S A E F

. S F P §7 -209(c)(1 )(ii) p ro v id e s th a t “ a n a m e n d m e n t o f a n a p p r o p r ia tio n f

o r a p ro g ra m
... m ayper m i tt he exp en di t ur e of moneyfr om a s peci al fund .

. . as p ro v id e d in [ S F P ] § 2 -2 0 1 o r § 7 -2 1 7 (a )... .” S F P § 2 -2 0 1 p e rta in s to t he ac cept ance and us e of gi ft s
. T he ot hercr os s - r efe r ence d provis i on st at es:

A n of f i ce oruni tof

t he St at e gove r nm ent m ay s pen d m oney f

r om a s peci alf und

. . . t hat is n o t es tim a te d o r in c lu d e d in th e S tate b u d g e t o r e x c e e d s th e e stim a te in th e S tate budget and i s pai d i nt o t he St at e Tre as ur yfor a pr ogr am aft er an appr oved am endment of a s p e c i a l

. . . f

u n d a p p r o p r i a t i o n f

o r t h e p r o g r a m: (1) f ort he s peci f i c pur pos e t o w hi ch the mon e y is d e d i c a t e d b

y S t a t e l a w o ractof C on gress; or ( 2) i f t he moneyi s notdedi cat ed t o a s peci fi c purpos e, w i t h t he appr oval of t he G over norand as aut hor i zed i n an appr oved budgetamendm ent , for ne ces s ar ycur r ent op erat i on s. S F P § 7 -2 1 7 (a ) ( e m p h a s is a d d e d ). T h u s , p e rt in e n t to th e S A E F , a 6 b u d g e t a m e n d m e n t m a y a p p ro p ria te u n e stim a ted o r e x c e ss re c e ip ts in a sp e c ial f

u n d “ f o r th e sp e c if

ic p u rp o se to w h ich th e m o n e yis d ed icated bySt at e l aw ” – i

. e. , t he SA E F st atut e. T he St at e budget bil l rei t erat es t his authori t yw i t h respect t o fed eral and speci al fun ds. S e e , e .g ., C hapt er429, § 5 , L aw s of M ar y l and 2004 atp. 1797 ( amount s r ece i ved pur s uantt o SFP §2-201 orSFP §7- 217 m aybe e x p e n d e d u n d e r a n a p p ro v e d b u d g e t am e n d m e n t); id ., § 7 (re c e ip ts i n exce s s of budgetes t i m at es fors peci al and fe der al funds m aybe m a d e a v a ila b le b yb u d g e t a m e n d m e n t)

.1 8 0 [8 9 O p
. A tt ’y

Shortly there afte r, the l a

w g o v er n ing th eTra nsportation Trust Fund 7 was amende d to restrict transfe rs to spe cial funds. Chapter 291, L aws of Maryland 1987, c od

ifi e d a t Annotated Code of Mary land, Tra nsportation Article, §3- 216(f)

. Th e 19 86 op ini on

a lso re a so ne d th at prov isi on s in a bu dg e t bi ll 8 could “qualify” exis ting law and cited a

1949 opinion that stated that the L eg islature could repe al or ame nd an existi nglaw in the budg et bill. 71 Opinions of the At torney Ge neral at 7, citing

34 Opinions of the Attorney Gene ral 105 (194 9 ). On its face , that proposition appear s inconsistent with the Court of Appeals’ decision in Baynea nd oth e r o pin ion s o f t

his Offic e conc erningthe pr o h i b ition against legislatingin the budg et. See Part I IA 1 of this opinion. However, we note that the 1986 and 1949 opi n i o n s both conce rned “ qualification” of laws c oncer ning thebudg et proc e ss, su c h a s th e bu dg e t ame ndme nt p ro c e dure, th at arec ur re ntly codified in Title 7 of theState Financ e and Procureme nt Article. During thef i r s ttw o d e c a d e s o f

M ar yl an d ’ s e xe c ut i v e b u d g e ts y s t e m , th os e provisions wereroutinely enac ted as pa

rt of the budg et itself. S

ee, e .g. , Chapter 206, §3, L aws of Ma ryland 1918 (budg et amendme nt proce dure) ; se eals o L etter of

Assistant Attorney

Gene ral Richard E. I srae l to Senator JohnA. Ca de(F e br

ua ry 28 , 1 98 5) . In 1 93 9, theGe ne ral A ss embl y c odif ie d th os e prov is ion s in

Ar tic le15 A, a

pr e de c e sso r o f t

heState Financ e and Proc ureme nt Article. Chapter 64, L aws of Maryland 1939. Thus, a distinction m ay be madebetwee n a budg et bill provision that qualifies the ty

pe of budg et procedure that has longbeen pa rt of the budg et bill and an attempt to alter substantive leg islation that gove rns a pa rticular fund or a g ency . Moreove r, to the extent that a provision co n ce rning budg etar y procedure a

ppear s in the budg et bill as submitt ed by the Gover nor, one of

the major rea sons for the prohibition against “leg islating in the budg et” – i.e ., that the budg et bill is notsubject to a gubernatorial veto – is of less conc ern. The situation involved in the 1986 op i n i o n had the f urther 9 (continued...) I n 71 O pi ni ons of

t he At t or ney G ener al 3 ( 1986), A t t or ney G ener al Sachs concl uded t hatm oneycoul d be t r ans ferr ed fr om one s peci al fund – t he Tra ns por t at i on T r us tFu n d

– to anot her– t he M ar y l and D epos i tI ns ur ance Fund C orpor at i on – bym eans of t he budgetamendm entpr oces s
. A tt hatt i m e, St at e l aw expl i ci t l ybar r ed t r ans fer s fr om t he Tra ns por t at i on T r us tFund t o t he G ener al Fund, butw as s i l ent on t r ans fer s t o ot hers peci al funds

. A t t or neyG ener al 7 Sachs r el i ed on pr i or ver s i ons of S FP §7- 209 and §7-217, as w el l as s i m i l arver s i ons of §§5 and 7 of t he budgetbi l l , and conc l uded t hat 8 t he t r ans ferof unes t i m at ed and e xces s r ece i pt s w as per m i s s i bl e. 9G en. 172] 181

(...continued) 9
c omp lic atio n th at the fu

nd s wou ld betr ans fe rre d f ro m on e depa

rtme nt t o another

. Be cause the l aw then, as now, g enerally barred the useof budg et amendments to transf

er f unds betwee n depar

tments, Attorney

Gene ral Sachs advised th at i t would be nec essar y for the G overnor

to declare an em er gency

to invoke one of theexceptions to the prohibition on i nterdepar tmental transfe rs. SeeSFP §7-209(e) ; 71 Opinions of the Attorney Gene ral at pp. 7-8. T he ci r cumst ance s i nvol vi ng t he SA E F ar e di s t i n g u is habl e. U nl i ke t he 1986 l aw governing t he Tra ns por t at i on T r us tFund, t he S A E F sta tu te p ro v id e s th a t “[ e ]x c e p t as o th e rw ise p ro v id e d in th is s ubt i t l e, m o n ey i n [t he SA E F] m aynotbe t r ans ferr ed t o any other f und

. ” LE § 8

- 4 2 0 ( b ) ( 2 ) ( e mph a s i s a d d e d )

. Be c a u s e t he SAEF s t atut e s peci fi cal l ypr ohi bi t s t r an s f e r s n o to th e r w i s e author i zed i n t he U nempl oy m entI ns ur ance L aw , t he us e of SA E F funds c oul d notbe ex p anded byt r ans ferr i ng t he funds bym eans of a budge t a m e n d m e n t.
B
. R eplacem ent

of F unds R ece i ved under§302 of Soci al Secur i t y A ct
T he SA E F st atut e pr ovi des t hatD L L R m ayus e money s fr om t he SA EF:
forr epl ace m entw i t hi n a r eas onabl e per i od of

t i me o f a n ymon e yt h a tt h e St a t e r e c e i ves under§302 of t he S oci al Secur i t yA ctand t hat beca us e of an act i on or cont i ngency has been l os torhas been us ed fo r p urpos es ot hert han ori n a mou n t s e x c e e d i n g t h o s e n e c e s s a r yfor t he pr oper admi ni s t r at i o n of [t he U n em p loy m en t I n su ran ce L aw ].
L E § 8 -4 2 1 (b )(2 )(iii)1 . A s n o ted a b o v e , § 3 0 2 o f th e S o c ial S e c u rity A ctpr ovi des for paym ent s byt he fe der al gover nm entt o a s t at e for a d mi n i s t r a t i o n o f

t h e s t a t e ’ s u n e mp l o y me n tc o mp e n s a t i o n l a w.
T h e lan g u a g e o f

L E § 8 -4 2 1 (b )(2 )(iii)1 w a s d e riv e d d ire c tly fro m § 303( a) ( 9) of t he Soci al Secur i t yA ct

. 42 U

. S. C

. §503( a) ( 9). I n 1939, C ongr es s amended §303 of t he S oci al Secur i t yA ctt o add t w o condi t i ons on t he ce r t i fi cat i on of p ay m ent s under§302 t o t he stat es. T h o se c o n d it ion s are n o w co d ifi ed at 42 U

. S

. C

. § 5 0 3 (a)(8)- ( 9)

. I n es s ence , t he Soci al Secur i t y B oar d w as nott o cer t i fypaym ent1 8 2 [8 9 O p
. A tt ’y

to a sta te u n les s th e law o f th e sta te r e stric ted th e u se o f th e f u n d s to t he purpos es des i gnat ed byt he fed era l agenc yand pr ovi ded for “repl acem ent” of t ho se fun ds i f t he g uidel i nes w ere vi olat ed. T hu s, t he Soci al Secur i t yB oar d coul d notcer t i fya paym entunl es s t he stat e’s law inclu d ed p rov isi o n fo r:

(8) E f f e c ti ve July1, 19 41 , t he exp end it ur e of a l l m oney s r ece i ved purs uant t o s ect i on 302 of t hi s t i t l e s ol el y forpurpos es and i n t he amount s found nec es s ar ybyt he B oar d fort he pr operan d eff

i ci entadmi ni s t r at i on of s uch S t a t e l a w. (9 ) E f f e c t iv e J u ly 1 , 1 9 4 1 , t he r epl acem ent , w i t hi n a r eas onabl e t i m e, of any m oneys r ece i ved pur

s uantto s ect i on 302 of

t his t i t l e, w hi ch, becaus e of

any act i on orcont i ngency , have be en l os torhave be en ex pended f

or pu r po s e s othe rt ha n, ori n a m ou nt s i n ex c ess of , t hos e f ound nece s s ar

y by the Board f

ort he pr operadm i nis t r at i on of s uch St at e l aw
. T h e s e p r o v i s i o n s wer e e v i d e n t l y d e s i g n e d t o e n s u r e t h a t t he funds di s t r i but ed under§302 w er e s pent in accor dance w i t h fede r al g u idel i nes and t hatt he s t at es w oul d r etur n funds t o t he ext entt hat th e yw e re n o t s p e n t in a c c o rd a n c e w ith th o s e g u id e lin e s
. A ti t s nexts es s i on, t he M ar y l and G ener al A s s em b lyful fi l l ed t he fe der al condi t i ons by amendi ng A r t i cl e 95A , §13( b) conce r ni ng w hatw as t hen ca l l ed t he U nempl oy m entC om pens at i on A dm i ni s t r at i on Fu n d to i ncl ude l anguage s i m i l art o t he fe der al s t atut e. C hapt er17, L aw s of M ar y l and 1941 at p. 26. T hatpr ovi s i on s t at ed t hatany“r epl ace m entfunds ” nee ded t o ful fi l l t he fe der al co n d it ion s w o u ld b e a p p rop ri ated fro m the S tat e’s g en era l fu n d s. In 1945, t he Legi s l atur e cr eat ed t he SA E F as t he s our ce of r epl ace m ent f u n d s a n d a g a in in c o rp o ra ted th e lan g u a g e o f th e f e d e ra l s tatu te in A rticle 9 5 A , § 1 3 ( c )

. C h a p ter 2 7 0 , L a w s o f M a ry lan d 1 9 4 5 . W ith r es pectt o expendi t ur es fr om t he Fund, t he s t atut e pr ovi ded:G en. 172] 183
T he money s i n t hi s fund s hal l be us ed byt he B oar d forr ei m bur s ement of i nt ere s ton co nt r i but i ons er r oneous l ycol l ect ed and the p ay m en t o f co sts o f a d m inist rati o n w h ich a re f o u n d n o t to h a v e b e e n p ro p e rlya n d v a lid ly char geabl e aga i ns tFeder al gr ant s ( orot her funds ) r ece i ved forori n t he U nempl oy m ent C om pens at i on Fund on or aft erJ anuary1, 194 3

. . . . [pr ocedur al pr ovi s i ons conce r ni ng t r a n s f e ra n d p a ym e n t o f

f u n d s ]

. . . T h e m o n e ys i n t hi s fund ar e h erebys peci fi cal l ym ade avai l abl e t o r epl ace , w i t hi n a r eas onabl e t i m e, a ny m o n e

y s re c e ive d

b y th is S ta te p u rs u a n t to Sect i on 302 of t he F eder al Soci al Secur i t y Act as am ended, w hi ch bec ause of any act i on or cont i ngenc

y, have be en l os torhave be en ex p e n d e d fo r p u rp o se s o th e r th a n , o r in am ount s i n ex ce s s of

, t hos e nec es s ar

y f ort he pr operadm i nis t r at i on o f the U nem pl oym ent C o m p e n s a tio n L a w

. ... T h a t la n g u a g e w a s u ltim a te ly re c o d if ie d a s L E § 8 -4 2 1 (b )( 2 )( iii) 1

. I t is evi dentt hatpar agr aph ( 9) of t he fe der al s t atut e i s t he s our ce of

t he odd l anguage t hatnow appea r s in L E §8- 421( b) ( 2) ( i i i ) 1. T he purpos e of t he feder al s t atut e w as t o ens ur e t hat s t at es w oul d r epayfede r al funds t hat w er e notus ed i n acc or dance w ith f e d e ra l g u id e lin e s. T h e p u rp o se o f in c lu d in g th is la n g u a g e in t he SA E F st atut e w as t o i dent i fy t hat fund, as oppos ed t o t he G ener al F u n d , as th e so u rc e o f th e r e p lac e m e n t m o n e y , if th e c o n d iti o n s in § 3 0 3 o f th e S o c ia l S e c u ri ty A c t w e re v io la te d

. S everal qu est i on s posed by S ecret ary F i el der pert ai n t o t his use of t he SA EF:
Shoul d t his be acc om

pl is hed through di r ect expe ndi t ur e of S AEF f u n d s o rb y t r a n s f e ro f S AEF f u n d s t o t h e UI

AF?
A s expl ai ned above, under L E §8- 421( b) ( 2) ( i i i ) 1, SA E F funds a re to b e u se d to “ re p lac e ” f e d e ra l f u n d s re c e iv e d , b u t n o t sp e n t in acc or dance w i t h fede r al r ul es gover ni ng t he us e of s uch funds

. For t hatpurpos e, SA E F funds maybe pai d di r ect l yt o t he fe der al g o v e rn m e n t. See L E § 8

- 4 2 2 ( d) ( 1 )

. In addit i on , t he S A E F st at ute al so al l o ws t h e St a t e Tr e a s u r e r t o t r a n s f e r f u n d s f r o m th e SAEF t o t he U I A F “forcos t s of admi ni s t r at i on t hat a r e found t o have be en1 8 4 [8 9 O p
. A tt ’y
i mpr o p e r l y c h a r g e d a g a i n s t t h e f e d e r a l mon e y c r e d i t e d t o t he [U IA F ]. ” L E § § 8 -42 2 (d)(2 ), 8 -42 1 (b)(2 )(i i)

. T h u s, the e x p en d itu re of S AEF f

u n d s p u r s u a n t t o LE § 8

- 4 2 1 ( b ) ( 2 ) ( i i i ) 1 ma y be a c c ompl i s he d b ydi r e c te xp e nd i t ur e orbyt r a ns fe rt o t he U I A F.
A s s um i ng SA EF

f unds m ay be use d t o r epl ace s ys t em s i nt egr al t o t he operat i on of t he unem pl oym ent i ns ur ance progr am t hathave
r eache d t he end of

t hei rl i f e cy cl e (suc h as m ai nf r am e l as er pr i nt ers ) , ar e thes e ex

pendi t ur es bes taccom pl is hed thr ough t he bu dg etproces s o r t he b ud get am end m ent process? M ay SAEF be u se d to s u p p lem e n t/h ire sta

ff f o r p u rp o se s o

f in c re a sin gin c o m e to t he U nem pl oym ent

I ns ur ance Tr us tFund?
B eca us e LE §8- 421( b) ( 2) ( i i i ) 1 conce r ns t he “r epl ace m ent ” – i

. e. , r e p a y me n t– o f fede r a l f u n d s , we d o n o tb e l i e v e t h a tSAEF f u n d s woul d b e a v a i l a b l e t o p u r c h a s e a n i t e m s u c h a s a ma i n f r a me l as erpr i nt erort o hi r e addi t i onal s t aff , atl eas t under t hatpar t i cul ar pr ovi s i on. A s i ndi cat ed i n Par t I I

. A

. of t hi s opi ni on, nei t her a budget a p p ro p ria tio n n o r a b u d g e t am e n d m e n t c a n e x p a n d th e p e rm iss ib le use of S A E F fun ds.
S A E F f u n d s c o u ld b e u se d f

o r th o se p u r p o se s te m p o ra rily underan o therpar tof t he s t atut e. Forexampl e, i f fe der al l aw s ubs i di zes t he hi r i ng of s uch s t aff , m oneyfr om t he SA E F coul d be em p loy ed tem p o ra ri ly f o r t h at pu rpo se u n ti l th e f ed era l fu n d s are r e c e i v e d

. Howev e r , o n c e t h e f e d e r a l f u n d i n g i s r e c e i v e d , t h e SAEF s h o u ld b e re im b u rs e d

. See L E §8 -421(b)( 1) (use of the S A E F as a “r evo lving a ccount ” forcos t s ul t i m at el yt o be pai d outof fe der al f u n d s ).
C. U s e s o f SAEF Fund

s Re la te d

to Sp a c e Us e d

f or A dm inis tr ati on of

the L aw S e c re tar yF ield e r p o se s s e v e ra l q u e stio n s c o n c e rn in g th e c o sts of occ upy i ng s pace fort he admi ni s t r at i on of t he U n empl oy m ent I ns ur ance L aw
. T he SA E F l aw cl ear l ycont empl at es t hatt he Fund m ay be us ed for s uch cos t s i n i t s capa ci t y as a rev o lving fund p e n d in g f

e d e ra l r e im b u rs e m e n t. See L E §8- 422( e) ( aut hor i zi ng t e mpo r a r yt r a n s f

e ro f f u n d s f r o m t h e UI AF t o t h e SAEF p e ndi ng f e d e ra l r e im b u rs e m e n t if S A E F f u n d s a re u s e d to “ a c q u ir e , re p a ir , o r m a in ta in ” offi ce spa ce) ; L E §8- 421( b) ( 1) ( aut hor i zi ng us e of the S A E F as re v o lving f u n d p en d ing fe d era l r eim b u rsem en t)

. O th e rw ise , co sts o f

o c c u p a n c ym a yo n ly be p a id f ro m th e S A E F if t heyar e par tof t he cos tof ac qui r i ng t he s pace
.G en. 172] 185
Th e s t a t u t e s p e c i f

i e s h o w t h e Fu n d ma y b e u s e d t o a cqu i re off i ce space as fo l l ow s: Subj ect to subse ct i on ( d) of t hi s s ect i on and appr oval byt he B oar d of Publ i c W o rks, t he S ec retarym ay u se th e [ S A E F ] t o ac q u ir e offi ce s pace t hati s s ui t abl e foreff ect i ve adm inist rati o n o f [ the M ary l and U n e m p l o ym e n tI n s u r a n c e L a w ] b y: ( 1) pur chas e; ( 2) l eas e; ( 3) cons t r uct i on; or (4) u se o f m o n ey in the [S A E F ]: ( i ) t o as s i s tt he St at e i n fi nanci ng a b u ild in g th a t th e S tate b u ild s f o r 1 o f its uni t s i n w hi ch s pace w il l be pr ovi ded undera l eas e oro ther c ont r actbet w een [ D L L R ] a n d th e S tate o r its u n it; (i i ) t o p ayarchi t ect ural fees; ( i i i ) t o m ake a deposi ton a bui l di ng orl and; or ( i v) foranyot herappr oved purpo se that is n ec essa ryfor a c q u is itio n o f

o f f ic e s p a c e
. L E § 8 -4 2 1 (c ). U n d e r L E § 8 -4 2 1 (d ), th e S A E F m a y n o t b e u se d in a mannert hatdi s pl ace s fede r al funds a vai l abl e foradmi ni s t r at i ve cost s.1 8 6 [8 9 O p
. A tt ’y
H ow do w e s t r uct ur e thes e occ upancy expens es s uch as ut i l i t i es , m ai nt enance , and s ecur i t y i n f aci l i t i es ow ned by t he [ D LLR ] and used fort he adm i nis t r at i on of [t he U nem pl oym ent I ns u r ance Law

] t o ens ur e thatt he ex pens es ar e vi ew ed as an i nt egr alpar tof

t he cos tof

acqui r i n g o

ff ice s pace f ort he ef f ect i ve a dmi n is t r a t i o n o

f [th a tl a w] ?
S e c tio n 8 -4 2 1 (c ) a u th o riz e s th e u se o f S A E F f

u n d s to “ac qui r e” of

fi ce s pace
. I tfur t hers peci fi es s ever al m et hods of acqui s i t i on – pur chas e, l eas e, cons t r uct i on. I tal s o aut hor i zes us e of t h e f u n d s f o rs p e c i f i c p u rp o s e s r e l a t e d t o t h e l e a s i n g , c o n s t r u c t i on, orpur chas e of a bui l di ng t hr ough anot herSt at e agencyor“forany ot herappr oved purpos e t hat is nece s s ar yforacquis i t i on of off i ce s pace ” ( emphasi s added)

. T hus , t he keycr i t er i on fordet er m i ni ng t he p e rm iss ib le u se o f f

u n d s u n d e r th is s u b se c tio n is w h e th e r th e u se is re la te d to th e “ a c q u is itio n ” o f o f f ic e s p a c e
. T he s t atut e does notdefi ne “a cqui r e” or “a cq u isi t i on. ” The di ct i onar ydefi nes “ac qui r e” a s “t o com e into pos s es s i on or ow ner s hi p of; getas one’ s ow n” and “ac qui s i t i on” as t he “the ac tof acqui r i ng or gai ni ng pos s es s i on. ” R andom H ous e D i ct i onar

y of t he E ngl is h Language 1 8 (2 d e d . 1 9 8 7 ); see al so B l ack’s La w D i ct i on ary 2 4 (7th ed

. 1 9 9 9 ). T h ere are v ariou s w ay s b yw h ich o n e m ay ac q u ir e orgai n pos s es s i on of s om et hi ng – e. g. , cons t r uct , pur chas e, orl eas e.

O r di nar i l y , t he acqui s i t i on of s pace – i.e , t aki ng pos s es s i on or ow ner s hi p of i t– does noti ncl ude ongoi ng opera ti o n al expens es s uch as ut i l i t i es , m ai nt enanc e, and s ecur i t y
. For exampl e, w hen an agency p u rch ase s, co n stru cts, o r refu rbish es a b u il d ing , p aym ent s for ut i l i t ys er vi ces , r out i ne mai nt enanc e, and s ecur i t yar e gene r al l ynot par tof “the ac t o f acqui r i ng orgai ni ng pos s es s i on”, butr at her o b l i g a t i o n s r e s u l t i n g f

r o m t h e f

a c to f pos s e s s i o n
. Ho we v e r , s o me l andl or ds m ayi ncl ude s uch cos t s as par t of a m ont hl yl eas e paym ent and i t m ay be di ffi cul t or bur dens om e for t he l andl or d t o s epar at e out t hos e cos t s
. A s a r es ul t , t her e i s s o m e am b i gui t yas t o w het hert he S A E F st at ute per m i t s t he u se of t he S A E F for such co st s. In these ci r cumst ance s , t he budgetbi l l m ay i l l um i nat e t he s cope of t he s ta tu te

. See 81 O

pi ni ons of t he A t t or ney G ener al at 275- 76. I n our opi ni on, i f t he bud g et b il l a ut hor i zes t he us e of the SA E F t o pay ut i l i t i es , m ai nt enanc e, and s ecur i t yexpens es as s oci at ed w i t h s pace t hatD L L R occupi es , t hos e expens es m aybe i ncl uded as par tof t he c o s t o f a c q u is itio n
.G en. 172] 187
May the SAEF

be us ed t o pur chas e des ks and m odul ar f ur ni t ure, com

put ers , phone netw or ks , and ot herequi pm ent f or f acil i t i es purch ased w i t h S A EF m on i es?
T r adi t i onal l y , fur ni t ur e, comput er s , and t el ecomm uni ca t i ons equi pm ent have gener al l y not been par t of t he cos t of a cq u i r i ng o ff ice sp ac e. T o the e x tent that ith as n o w b ec o m e a stan d ard i ndus t r ypr act i ce t o pr ovi de cer t ai n t ypes of fur ni s hi ngs ort echni cal e q u ip m e n t as p a rt o f

o f f ice sp a c e , tho se c o sts m a yb e p a id w ith S A E F m o nies

. O t herw i se, t he S A E F m ayno tbe u sed fo r these p u rp o s e s , e x c e p ti n t h e l i mi t ed ci r c u ms t a n c e s i n whi c h t h e SAEF f u n c tio n s a s a re v o lv in g f u n d p e n d in g f

e d e ra l re im b u rse m e n t.
D
. U se of t h e S A E F for “Su bsti t u ted O

perati on al Cost

s”
Se c r e t a r y Fi e l d e r n o t e s t h a t , o v e rt h e p a s ts e v e r a l y e a r s , DLLR has change d t he oper at i on of t he unempl oy m enti ns ur ance pr ogr am t o t ake a dvant age of

new t echnol ogi es
. Pr evi ous l y , D L L R oper at ed 26 w al k- i n offi ces t hr oughoutt he S t at e. I n r ece nty ear s , D L L R has red u ce d the n u m b er o f p h y sical of fice s to fiv e re g ion al claim ce n ters and, att he s ame t i m e, has begun ac ce p ti ng cl ai m s overa t ol l

- fr ee t el ephone numberand overthe Int er net

. T hes e cha nges have i ncr eas ed t elec o m m u n icati o n s ch arg es a n d red u ce d ren t a nd bui l di ng e x p e n s e s
. May S A EF be u sed f

or t el ecom m un i cati on s cost s w here t ho se cos t s ar e i ncur r ed as a r esult o f consol i dat i on of

of f i ces t o s ave occu pa ncy co st

s andt o take ad van t ag e of new t echn ologi es?
For t he r eas ons s etfor t h above, t he SA E F m aynotbe us ed for t hes e purpos es
. T h e G ener al A s s embl ym ayw i s h t o cons i der amendi ng t he s t atut e t o per m i tt h e S A E F to be us ed fors uch op erat i on al exp enses.

III
C oncl usi on SA E F funds maybe us ed forthe var i ous admi ni s t r at i ve purpos es s etfor t h i n t he SA E F st atu te

. N ei t hert he budgetbi l l nor a bud g e t a me n d me n t ma y e x p a n d t h o s e p u rp o s e s
. Am o n g t he purpos es l i s t ed i n t he SA E F st atut e i s t he acquis i t i on of s pace us ed f o r th e a d m in istra tio n o f th e U n e m p lo y m e n t I n su ra n c e L a w . W h ile t her e i s no s peci fi c pr ovi s i on i n t he SA E F st atut e t hatal l ow s fort he1 8 8 [8 9 O p
. A tt ’y

pay m en t f

r o m th e Fu n d o f c o s t s r e l a t e d t o o c c u p a n c y , s u ch as uti l i t i es, m ai ntenance, and securi t y , i n som e ci rcum st a n c e s t hese c o sts m a yb e c o n sid e re d p a rt o f th e c o st o f a c q u isitio n . M o n e y s in t h e SAEF ma yn o tb e d evot ed t o a u s e n o ta l l o wed b yt h e SAEF sta tu te, s u c h a s o p e ra tio n a l ex p e n se s, u n les s th e G e n e ra l A ss e m b ly pas s es a l aw per m i t t i ng t hatus e.

J. Jo sep h C u rran , Jr. A t t or ney G ener al

R o b e rt N . M c D o n a ld C hi ef C ouns el O pi ni ons and A dvi ce