Judges: J. JOSEPH CURRAN, JR.
Filed Date: 7/19/2000
Status: Precedential
Modified Date: 7/5/2016
Dear The Honorable William Donald Schaefer
You have requested our opinion on various questions related to an uncodified section of the 1998 capital budget bill that authorizes the Maryland Stadium Authority to perform construction and related work for other State agencies and local governments. Those questions may be summarized as follows:
1. Is the language in the 1998 capital budget bill sufficient to give the Stadium Authority continuing authority to design and construct facilities for State agencies and local governments?
2. Must the Stadium Authority obtain the approval of the Board of Public Works ("the Board") before it undertakes a project on behalf of another State agency or a local government, if that project will use State funds?
3. Has the General Assembly "inadvertently usurped the prerogatives of the Executive Branch" in the 1998 legislation by assigning approval authority to standing legislative committees with respect to the design and construction of capital projects by the Stadium Authority?
4. May the Board prevent the Stadium Authority from entering into a contract "even if the two legislative budget committees have given their affirmative approval" to the contract?
For the reasons set forth in this opinion, we conclude:
1. The 1998 legislation validly grants the Stadium Authority continuing authorization to enter into agreements to perform construction and related work for State agencies or local governments. However, to comply with directory language in the State Constitution, the Legislature should codify such authority as part of the Stadium Authority's enabling act in the Annotated Code of Maryland.
2. Neither the 1998 legislation, the Stadium Authority's enabling act, nor the State procurement law requires the Stadium Authority to obtain Board approval before entering into an agreement to perform construction or related work for another State agency or local government. In the context of a particular agreement, the other agency may be obliged to obtain the Board's approval.
3. Because the 1998 legislation affords the legislative budget committees only advance notice and an opportunity to comment on the Stadium Authority's proposed agreements and does not purport to grant the committees approval authority, that legislation does not offend the constitutional separation of powers.
4. If Board approval is required for a particular contract, the Board has discretion to reject that contract, regardless of whether the legislative committees have commented favorably on the proposed agreement.
A. Maryland Stadium Authority Act
In 1986, the General Assembly established the Stadium Authority as "an instrumentality of the State and a public corporation." Chapter 283, Laws of Maryland 1986; FI § 13-702(b). It is an independent unit within the Executive Branch of State government. FI § 13-702(c). Under its enabling act, the Stadium Authority has broad powers to design, construct, and operate sports stadiums, convention centers, a performing arts center, and related properties. The Legislature has characterized the Stadium Authority's exercise of its statutory powers as "an essential public function." FI § 13-702(d).
The Governor appoints six of the seven members of the Stadium Authority and selects its chairman; the seventh member of the Stadium Authority is appointed by the Mayor of Baltimore City. FI § 13-703. A member may be removed by the Governor (or, in the case of the seventh member, by the Mayor) for incompetence, misconduct, or a failure to perform official duties. Id. The chief administrative officer of the agency is its executive director, who serves at the pleasure of the Stadium Authority, with the concurrence of the Governor. FI § 13-705.
The Act enumerates specific powers of the Stadium Authority — for example, it may employ, as needed, engineers, architects, consultants, and other professionals; it may enter into contracts "of any kind;" and it may set rates and rents for its facilities and services. FI §
Although the Stadium Authority is not subject to oversight by the Board of Public Works under the procurement law, the General Assembly has conditioned the exercise of some of the Authority's key powers on Board approval. For example, Board approval is a prerequisite for the Stadium Authority to enter into contracts for the acquisition or construction of a sports facility, convention center, or performing arts center, FI § 13-709(a); to acquire an ownership interest in a professional sports franchise, FI § 13-710; to exercise condemnation powers, FI § 13-711(b)-(c); to acquire property from the State or local governments or to enter into a lease agreement with the State, FI § 13-711(d); to issue bonds to finance its activities, FI § 13-712; to borrow money and encumber its assets, FI § 13- 708(13); and to receive gifts, grants, and other contributions and to invest the proceeds, FI §
The Act does not specifically authorize the Stadium Authority to perform work on behalf of other governmental units, except in connection with the specific facilities and projects described in the Act. In 1998, however, in separate legislation, the General Assembly authorized the Stadium Authority generally to perform work for other agencies under certain conditions.
B. 1998 Capital Budget Bill
As part of the 1998 capital budget bill, the Legislature authorized the Stadium Authority to enter into agreements with other State agencies and local governments to construct facilities and perform related work. The provision made clear that the Stadium Authority is not responsible for financing such work. Commencement of work under such an agreement is contingent on notice to the Legislature's budget committees with an opportunity for the committees to review and comment on the agreement. In particular, that legislation provided:
The Maryland Stadium Authority is authorized to prepare various studies, including site studies, architectural programs, budget estimates, value engineering, and project schedules, and may design and construct facilities for State agencies or local governments, provided that prior to beginning work on behalf of a State agency or local government, the Authority must notify the budget committees in writing of the proposed project and allow the committees 30 days to review and comment on the proposed work. The Authority is permitted to enter into contracts, engage consultants, and make recommendations relating to this purpose and shall use funds provided by the State agencies or local governments or otherwise appropriated for the particular purpose.
Chapter 138, § 12, Laws of Maryland 1998 (emphasis added). That authorization remains uncodified in the 1998 session laws.1
You ask whether the uncodified language in the 1998 capital budget bill suffices to give the Stadium Authority continuing authority to perform construction and related work for other State agencies and local governments. We understand your concern to be whether the failure to codify this authorization in the Stadium Authority's enabling act limits its duration.2
Article III, § 29, of the State Constitution states, in pertinent part:
. . .whenever the General Assembly shall enact any Public General Law, not amendatory of any section, or article in the said Code, it shall be the duty of the General Assembly to enact the same, in articles and sections, in the same manner, as the Code is arranged, and to provide for the publication of all additions and alterations, which may be made to the said Code.
Under this provision, which has long been part of the State Constitution, public general laws are to be enacted as part of the Annotated Code of Maryland. The Court of Appeals has described the purpose of this requirement:
The laws having been codified under former enactments, the Constitution contemplates the continuance of the system, and to save time, labor and expense, the duty is imposed upon the Legislature, in amending existing laws, or enacting public general laws, to observe certain forms, to adapt them to the Code arrangement.
Hardesty v. Taft,
Thus, § 12 of the 1998 capital budget bill is a valid grant of authority to the Stadium Authority to perform construction and other work for governmental agencies, despite the General Assembly's failure to codify that authorization in the Annotated Code of Maryland. Unlike the appropriations for a particular fiscal year in the annual budget bill, the provisions of a capital budget bill, like other laws passed by the General Assembly, are not necessarily limited to a single year. Section 12 itself contains no sunset provision or other time limitation and thus remains effective. However, we recommend that the Legislature, consistent with the constitutional directive, codify this authority as part of the Maryland Stadium Authority Act.
You also express concern that the powers § 12 confers on the Stadium Authority may duplicate those already assigned to the Department of General Services ("DGS"). For example, many State agencies are required to obtain approval or submit to reviews by DGS in connection with the design and construction of projects.See, e.g., SFP §
As DGS is itself a creature of statute,3 it is a policy decision for the Legislature whether to add to, or subtract from, the functions of DGS, or to assign similar functions to another agency. There is no explicit indication in § 12 that the Legislature intended to eliminate DGS' role when an agency enlists the assistance of the Stadium Authority under § 12. Moreover, repeals by implication are disfavored. Farmers MerchantsNational Bank v. Schlossberg,
B. Approval of the Board of Public Works
Under the State Constitution, the Board's approval authority over the contracts of State agencies derives from statutory grants of authority by the General Assembly. See Maryland Constitution, Article
The General Assembly did not include in § 12 of the 1998 capital budget bill any requirement that the Stadium Authority obtain the approval of the Board before exercising its authority under that provision to enter into agreements with other State and local agencies to perform studies or construction work. Although the word "facility" appears in § 12, the term is not specifically defined in that section. Nor is there any cross-reference to the specific definition of "facility" in the Stadium Authority's enabling act.
We do not believe that the Legislature meant to incorporate without cross-reference the specialized meaning of the term "facility" in the Act and, consequently, the requirement for Board approval of construction and acquisition contracts. To import the definition of "facility" from the Act into § 12 of the 1998 capital budget bill would limit the Stadium Authority's powers under that section to those already conferred by the Act and render § 12 superfluous — a construction disfavored by the courts. See,e.g., Giant Food, Inc. v. Department of Labor, Licensing andRegulation,
There is thus no general statutory requirement that the Stadium Authority obtain the Board's approval before proceeding with an agreement to perform work on behalf of another agency. This does not mean that the agreement or related contracts will not come before the Board. The agency that employs the Stadium Authority may itself be obligated to obtain Board approval. For example, that agency may be subject to the State procurement law in whole or in part. While agreements between units of the State are generally exempt from the procurement law, there are exceptions to that exemption. SFP §
The Legislature has authorized the Board to promulgate regulations to "require that any proposed contract, contract renewal, or change order, of a designated class or monetary value, of any unit of the Executive Branch be brought to the Board for consideration and approval before execution." SFP §
Despite the inclusive language of SFP §
The original predecessor of SFP §
The Board of Public Works may require. . .by regulation that any contract. . .of any State department, board, commission, institution, or other agency of the executive branch, be brought before the Board. . .for consideration and approval. . . The provisions of this section are in addition to and not in lieu of other powers and authorities granted the Board. . .
In 1985 the statute was recodified as SFP § 21-101 in a new Division III of the State Finance Procurement Article. Chapter 586, § 2, Laws of Maryland 1985. At that time, it clearly applied to all units of the Executive Branch; the Stadium Authority did not yet exist.
When the Stadium Authority was created in 1986, its enabling legislation exempted it from Division II of the State Finance
Procurement Article (the State procurement law), but not from Division III of that article. Chapter 283, Laws of Maryland 1986. However, during the same session, the Legislature undertook a reorganization of the State Finance Procurement Article to become effective July 1, 1987. Chapter 840, Laws of Maryland 1986. As part of that reorganization, Division III was eliminated and the statute authorizing the Board to issue regulations concerning contract approval, along with most provisions in Division III, was transferred to Division II and recodified as SFP §
During the next legislative session in 1987, the General Assembly amended the Stadium Authority's Act to exempt it from Division III as well as Division II, even though Division III was facing an imminent demise as a result of the 1986 reorganization of the SFP Article. Chapter 123, Laws of Maryland 1987. That legislation was part of a package of administration bills related to the financing and construction of sports facilities. Collectively, that legislation also included requirements that the Stadium Authority obtain Board approval for various specified activities. See Kelly v. Marylanders for Sports Sanity,
As the portion of the 1987 legislation concerning the Stadium Authority's exemption from portions of the State Finance Procurement Article became effective June 1, 1987, it had the effect of exempting the Stadium Authority from the Division III provisions, including SFP § 21-101, one month earlier than under the 1986 legislation that became effective July 1, 1987. While it thus had a limited effect in practice, this amendment demonstrates a legislative intent at that time to exempt the Stadium Authority not only from the State procurement law, but also from the Board's authority to issue regulations regarding contract approval.
In 1988, the Legislature undertook yet another revision of the procurement law and recodified the provision concerning Board regulations as SFP §
Finally, in 1989, the Legislature again revisited the provision authorizing the Board issue regulations to require its approval of agency contracts. The Legislature transferred the provision from Division II of the State Finance Procurement Article to its current location in Division I of that article and recodified it under its current moniker — SFP §
The title of the 1989 legislation states that it "clarif[ies] the Board of Public Works' authority to approve State contracts independent of the Procurement Law." Chapter 101, Laws of Maryland 1989. Materials in the legislative file indicate that the purpose of the bill was to "eliminate any ambiguity as to the extent of [the Board's] authority to review contracts. . ." and to clarify that "the Board may review contracts that are exempted from Division II of the procurement law, which was the intent and practice prior to the 1985 code revision." Floor Report for Senate Bill 116 (1989). There is no mention of the Stadium Authority or its prior exemption from Division III in the file. Testimony by a staff member of the Board indicated that the purpose of the 1989 legislation was to undo the effect of the transfer of the statute from Division III to Division II, which had inadvertently limited its reach to contracts subject to the procurement law. Testimony submitted by Board of Public Works on Senate Bill 116 (March 28, 1989).
However, the Stadium Authority was exempt from the predecessors of SFP §
In the course of codifying the authority granted in § 12 of the 1998 capital budget bill, the Legislature could, and should, also clarify its intent about the Board's power to issue regulations concerning the Stadium Authority contracts. Given the uncertainty as to whether SFP §
C. Effect of Legislative Review and Comment on Stadium Authority Agreements
As an initial matter, we note that § 12 of the 1998 capital budget bill does not give the legislative committees authority to oversee or "approve" agreements between the Stadium Authority and other agencies. Rather, before beginning any work, the Stadium Authority must notify the budget committees of an agreement and allow the committees 30 days to review and comment on that agreement. While the Stadium Authority may wish to avoid legislative displeasure or may find a committee comment persuasive in a particular instance, it is under no legal obligation to comply with those comments. Thus, the budget committees have authority to review and comment, but no authority to approve or disapprove a project.
The distinction is critical. A provision that rendered the Stadium Authority's individual agreements subject to legislative approval would establish a legislative veto over executive action. Although this Office once concluded that a statute reserving to a legislative committee a veto over proposed regulations was not clearly unconstitutional, 63 Opinions of the Attorney General 125, 127-28 and 150-51 (1978), there was little judicial authority on the subject at that time. Subsequently, most state courts that have considered the issue have held that legislative veto provisions violate the separation of powers provisions of their respective state constitutions. See generally Rossi,Institutional Design and the Lingering Legacy of Anti-FederalistSeparation of Powers Ideals in the States, 52 Vand. L.Rev. 1167, 1201-04 nn. 186-90 (1999) (collecting cases and noting that, with one exception, legislative vetoes have been found unconstitutional by every state court to consider the question). Similarly, the United States Supreme Court has held that a provision giving Congress a legislative veto violated the federal constitution. INS v. Chadha,
Although the Court of Appeals of Maryland has not yet considered the issue, during the past decade this Office has repeatedly noted the questionable constitutionality of legislative veto provisions in light of the overwhelming weight of authority in other jurisdictions. See, e.g., 75 Opinions of the AttorneyGeneral 431, 437 n. 6 (1990); Bill Review Letter of Attorney General to Governor on Senate Bill 302 (April 24, 1998) (citing prior letters and case law on legislative veto).
A provision that obligates an agency to report its activities to the Legislature in advance, to permit an opportunity for legislative review and comment, does not authorize a legislative veto. It is well within the Legislature's prerogatives to require executive agencies to inform its committees of agency activities. Indeed, such fact-gathering may be essential to the legislative process. Nor does an opportunity for legislative comment offend the constitutional separation of powers. While an agency may deem it politically advisable to comply with the expressed wishes of a legislative committee or may find the committee's comments persuasive on their merits, the agency is under no legal obligation to comply with a legislative comment that is not embodied in statute. Thus, in our opinion, a provision for legislative review and comment does not suffer the same constitutional infirmity as one that authorizes a legislative veto.
1. The 1998 legislation validly grants the Stadium Authority continuing authorization to enter into agreements to perform construction and related work for State agencies or local governments. However, to comply with directory language in the State Constitution, the Legislature should codify such authority as part of the Stadium Authority's enabling act in the Annotated Code of Maryland.
2. Neither the 1998 legislation, the Stadium Authority's enabling act, nor the State procurement law requires the Stadium Authority to obtain Board approval before entering into an agreement to perform construction or related work for another State agency or local government. In the context of a particular agreement, the other agency may be obliged to obtain the Board's approval.
3. Because the 1998 legislation affords the legislative budget committees only advance notice and an opportunity to comment on the Stadium Authority's proposed agreements and does not purport to grant the committees approval authority, that legislation does not offend the constitutional separation of powers.
4. If Board approval is required for a particular contract, the Board has discretion to reject that contract, regardless of whether the legislative committees have commented favorably on the proposed agreement.
J. Joseph Curran, Jr. Attorney General
Robert N. McDonald Chief Counsel Opinions Advice
(1) Stadiums for the primary purpose of holding professional football games, major league professional baseball games, or both, in the Baltimore metropolitan area, as defined under Regional Planning Council Law;
(2) Practice fields, or other areas where professional football or major league professional baseball teams may practice or perform;
(3) Offices for professional football and major league professional baseball teams or franchises; and
(4) Adjacent properties directly related to an item listed in paragraphs (1) through (3) of this subsection, including:
(i) Parking lots;
(ii) Garages; and
(iii) Other properties.
FI §
*Page 206
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