Source: http://pa.findacase.com/research/wfrmDocViewer.aspx/xq/fac.19751003_0041903.PA.htm/qx
Timestamp: 2016-10-27 09:26:11
Document Index: 408395339

Matched Legal Cases: ['§ 51', '§ 1', '§ 246', '§ 1921', '§ 312', '§ 313', '§ 1971']

| COMMONWEALTH PENNSYLVANIA v. PENNSYLVANIA STATE UNIVERSITY (10/03/75)
COMMONWEALTH PENNSYLVANIA v. PENNSYLVANIA STATE UNIVERSITY (10/03/75)
COMMONWEALTH OF PENNSYLVANIA, ROBERT P. CASEY, AUDITOR GENERAL, APPELLANT,v.THE PENNSYLVANIA STATE UNIVERSITY
Frank P. Lawley Jr., Chief Counsel and Deputy Auditor Gen., Robert P. Meehan, Deputy Counsel, Harrisburg, for appellant.
Jones, C. J., and Eagen, O'Brien, Roberts, Pomeroy and Nix, JJ. Manderino, J., took no part in the consideration or decision of this case. Nix, J., concurs in the result.
[ 463 Pa. Page 608]OPINION OF THE COURT
The complaint alleged, in substance, that: (1) pursuant to Act 61-A of August 31, 1971, as amended by Act No. 5-A of March 23, 1972, the Commonwealth of Pennsylvania appropriated funds to the University in the amount of $3,710,000 for continuing education programs for fiscal year July 1, 1971 to June 30, 1972; (2) that said funds were appropriated on a "net cost" basis, i. e., they were to be utilized to the extent necessary to pay for the difference between the cost of such programs and the revenue generated thereby; (3) that the audit report of the Auditor General disclosed that the University received $271,055 in excess of the "net cost" of the continuing education program; and (4) that a formal demand for repayment of this sum to the State Treasury made by the Auditor General was refused by the University.
The Commonwealth Court sustained the University's preliminary objections in the form of a demurrer for failure of the Auditor General to state a claim upon
[ 463 Pa. Page 609] which relief can be granted*fn1 and dismissed the complaint.
It is clear to us that the Auditor General would have lacked the authority to institute this suit, if it had been commenced between 1915 and 1970. Section 23 of the Act of April 28, 1840, P.L. 467, conferred upon the Auditor General specific authority to collect debts owed the Commonwealth, but this act was repealed by the Act of June 7, 1915, P.L. 876.*fn2
The enactment of the Administrative Code of 1929, Act of April 9, 1929, P.L. 177 (Administrative Code), 71 P.S. § 51 et seq., and the Fiscal Code, Act of April 9, 1929, P.L. 343, 72 P.S. § 1 et seq., did nothing to alter the existing situation with respect to authorizing the Auditor General to bring the present suit. The Administrative Code placed the authority to institute suit to collect sums due the Commonwealth with the Attorney General and the Department of Justice.*fn3 The fiscal Code*fn4 enumerates
[ 463 Pa. Page 610] the auditing powers and duties of the Auditor General. Additionally, in this context we observe that under Section 706 of the Administrative Code, 71 P.S. § 246, the Auditor General retains such powers as were vested in him at the time of the enactment of the Administrative Code. However, at that time, the Auditor General had no power to institute suit, since, as we have previously noted, the power to do so had been removed from him by the Act of June 7, 1915.
"Section 512. Legal advice and services. -- Whenever any department, other than the Department of the Auditor General, board, commission, or officer of the State Government, shall require legal advice concerning its conduct or operation, or when any legal difficulty or dispute arises, or litigation is commenced or to be commenced in which any department, other than the Department of the Auditor General, board, Commission, or officer, is concerned, or whenever any taxes or other accounts of any kind whatever due the Commonwealth remain overdue and unpaid for a period of ninety days, it shall be the duty of such department, board, commission, or officer, to refer the same to the Department of Justice.
" It shall be the duty of any department, other than the Department of the Auditor General, board, commission, or officer, having requested and received legal
[ 463 Pa. Page 611] advice from the Department of Justice regarding the official duty of such department, board, commission, or officer, to follow the same, and, when any officer shall follow the advice given him by the Department of Justice, he shall not be in any way liable for so doing, upon his official bond or otherwise.
"Section 902. Legal Advice. -- The Department of Justice shall have the power, and its duty shall be:
"(a) To furnish legal advice to the Governor, and to all administrative departments, other than the Department of the Auditor General, boards, commissions, and officers of the State Government, concerning any matter or thing arising in connection with the exercise of the official powers or the performance of the official duties of the Governor, or such administrative departments, boards, commissions, or officers;
"(b) To supervise, direct and control all of the legal business of every administrative department, other than the Department of the Auditor General, board, and commission of the State Government."
[ 463 Pa. Page 612]"Section 903. Litigation. -- The Department of Justice shall have the power, and its duty shall be:
"(b) To represent the Commonwealth, or any department, other than the Department of the Auditor General, board, commission, or officer thereof, in any litigation to which the Commonwealth or such department, board, commission, or officer, may be a party, or in which the Commonwealth or such department, board, commission, or officer, is permitted or required by law to intervene or interplead."
"Section 906. Deputy attorneys general. -- In addition to such deputy attorneys general as may be appointed to assist in the conduct of the regular work of the department, the Attorney General, with the approval of the Governor, shall have power:
"(a) To appoint and fix the compensation of such special deputy attorneys general, as may be required, to represent and advise the Workmen's Compensation Board, and any other departments, other than the Department of the Auditor General, boards, and commissions, which may require the services of counsel to such an extent as to render it reasonably necessary to assign deputy attorneys general exclusively to their work. . . .
"(b) From time to time appoint and fix the compensation of special deputy attorneys general, and special attorneys, to represent the Commonwealth, or any department, other than the Department of the Auditor General, board, or commission thereof, in special work or in particular cases.
" (c) To appoint and fix the compensation of deputy attorneys general, to represent the Commonwealth, and the several departments, other than the Department of the Auditor General, boards, and commissions thereof, in all legal matters arising in any city or
[ 463 Pa. Page 613] county, other than the State capital, except as otherwise provided in this act: Provided, That the same deputy attorney general may be assigned to two or more cities or counties in the discretion of the Attorney General."
"Section 1002. Chief counsel; deputies. -- The Auditor General shall have the power to appoint and fix the compensation of a chief counsel and such other deputy counsels as the Auditor General deems necessary to provide legal assistance to the Auditor General."
"Section 1003. Powers and duties of chief counsel. -- The office of the chief counsel to the Auditor General shall have the power and its duty shall be:
"(a) To furnish legal advice to the Auditor General concerning any legal matter or thing arising in connection with the exercise of the official powers or performance of the official duties of the Auditor General.
"(b) To supervise, direct and control all of the legal affairs of the Department of the Auditor General.
"(c) To represent the Auditor General in any litigation to which the Department of the Auditor General may be a party or in which the Department of the Auditor General is permitted or required by law to intervene or interplead."
On the one hand, if "such" refers back to "any department", the Auditor General is still obligated to refer
[ 463 Pa. Page 614] debts due the Commonwealth to the Department of Justice for collection. This is the manner in which the Commonwealth Court interpreted the section. The Auditor General urges that the proper antecedent of "such" is "any department, other than the Department of the Auditor General." Interpreted thusly, the section does exempt the Auditor General from the duty of referral.
Although, resolution of these ambiguities is not as clear to us as the Commonwealth Court, nonetheless we agree with the conclusion reached by that court that
[ 463 Pa. Page 615] the legislature did not intend to confer upon the Auditor General power to sue to recover an indebtedness due the Commonwealth. We base our conclusion upon a consideration of the relevant factors spelled out by the legislature to afford guidance to the courts in the ascertainment of the legislative intent when a statute is ambiguous. Under the Statutory Construction Act, 1 Pa.C.S. § 1921 et seq., we are bound to consider the object sought to be attained by the legislature, and the former law, including statutes, upon the same or similar subjects.
The Act of December 17, 1970, P.L. 935, added two new sections to the Administrative Code. Section 1002 authorized the Auditor General to appoint a chief counsel and such deputy counsels as he deems necessary to provide him necessary legal assistance, 71 P.S. § 312. Section 1003 spelled out the powers and duties of the chief counsel to include: (1) the rendering of legal advice to the Auditor General regarding the powers or performance of his duties; (2) the supervision of the legal affairs of the Auditor General; and (3) the representation of the Auditor General in litigation to which the Auditor General may be a party, or in which he is permitted or required by law to intervene. 71 P.S. § 313. Simultaneously, the legislature excepted the Department of the Auditor General from the requirements of receiving and following legal advice from, and representation in litigation by the Department of Justice. See the Administrative Code, Section 512, 71 P.S. Section 192; Section 902, 71 P.S. Section 292; Section 903(b), 71 P.S. Section 293(b); Section 906, 71 P.S. Section 296. In enacting these amendments, the legislature was acting against a historical background of an 1840 statute expressly authorizing the Auditor General to sue to collect an indebtedness owed the Commonwealth; repeal of this statute in 1915, and the enactment of an Administrative Code in 1929 placing the authority exclusively in the Attorney
[ 463 Pa. Page 616]General and the Department of Justice. When viewed in this prospective it is apparent to us, that if the legislature intended to confer upon the Auditor General the authority in question, it would have done so expressly.
The Auditor General would have us interpret the words "to cause such sums to be recovered" as a directive that he bring about a judgment in a court of law to recover a debt resulting from an appropriation under this act. While this is a possible construction, to interpret these words in this fashion would lead to the absurd result of a repeal by implication of a major provision of the Administrative Code by an act making an appropriation for the
[ 463 Pa. Page 617]University. Section 1971 of the Statutory Construction Act of 1972, 1 Pa.C.S. § 1971, provides:
It is also noteworthy that past appropriations for the University have utilized precisely the same language with respect to the powers of the Auditor General. E. g., Act 70-A of August 24, 1966; Act 137-A of July 16, 1968; Act 4-A of March 13, 1970; Act 90-A of June 1970. Prior to the 1970 amendments to the Administrative Code, it would have been beyond argument, impossible for the Auditor General to bring suit in his own name, rather than through the Department of Justice. Therefore, the legislature must have intended the language "to cause such sums to be recovered" to mean to refer the matter to the Department of Justice for collection. There is certainly no indication in the instant appropriation act that the legislature intended the language in question to carry any other meaning than that which it had to have meant prior to the 1970 amendments. Thus, we feel, if the legislature, in the instant appropriations act, had intended to authorize the Auditor General
[ 463 Pa. Page 618] to bring suit, it surely would have chosen different language to express this change.