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The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 6396 October 22, 1986 APPROPRIATIONS: Intent to appropriate moneys to veterans' emergency loan fund VETERANS: Appropriation of moneys to replenish emergency loan fund The Michigan Veterans' Trust Fund Board of Trustees may not replenish the Emergency Loan Fund with moneys from the earnings of the Michigan Veterans' Trust Fund without an appropriation enacted by the Legislature. Mr. Frank A. Schmidt, Jr. Director Michigan Veterans' Trust Fund Department of Management and Budget Ottawa Building North Lansing, Michigan You have requested my opinion on the following question: Whether moneys in the emergency loan fund depleted by uncollected loans may be replenished by the Michigan Veterans' Trust Fund Board of Trustees from interest earnings of the Veterans' Trust Fund without appropriation thereof by the Legislature. The Michigan Veterans' Trust Fund and the Emergency Loan Fund were created by the Legislature in MCL 35.601; MSA 4.1064(1), which provides, in pertinent part: "There is created the Michigan veterans' trust fund in the state treasury to be accounted for, safeguarded and the income thereof and the surplus therein to be disbursed as provided in this act. The post-war reserve fund created by Act No. 4 of the Public Acts of 1943, as amended, being sections 35.651 to 35.653 of the Michigan Compiled Laws, is transferred to the Michigan veterans' trust fund. Of the funds so transferred, $50,000,000.00 shall remain in the Michigan veterans' trust fund as a trust. Two hundred thousand dollars of the money in the trust fund is appropriated to the Michigan veterans' trust fund board of trustees and transferred to an emergency loan fund, to be disbursed by the board of trustees to Michigan veterans or their legal dependents or to children of deceased veterans who may be engaged upon a course of instruction under any state or federal educational program by the procedure and under the regulations prescribed by the Michigan veterans' trust fund board of trustees to best safeguard the emergency loan fund and serve its purpose. Income accruing in the trust fund in excess of the trust of $50,000,000.00 and the $200,000.00 appropriated to the Michigan veterans' trust fund board of trustees, shall be available, and shall be disbursed upon requisition of the board of trustees to provide for the needs of the Michigan veterans as defined by Act No. 190 of the Public Acts of 1965, as amended, being sections 35.61 and 35.62 of the Michigan Compiled Laws, their wives and dependents, in the manner provided in this act.... The transfer made in this section shall be deemed to be an appropriation under section 3 of Act No. 4 of the Public Acts of 1943, being section 35.653 of the Michigan Compiled Laws." Const. 1963, art. 9, Sec. 17, provides: "No money shall be paid out of the state treasury except in pursuance of appropriations made by law." While MCL 35.601; MSA 4.1064(1), expressly made the appropriation of $200,000.00 from the Michigan Veterans' Trust Fund to the Emergency Loan Fund and purported to make income from the Trust Fund available to the Emergency Loan Fund, the Legislature must appropriate the income for the purpose of replenishing moneys in the Emergency Loan Fund. Any appropriation in the same act containing "authorization provisions" must take effect in the ensuing fiscal year or function only as an expression of intent to appropriate. Board of Education of Oakland Schools v. Superintendent of Public Instruction, 392 Mich 613, 620-621; 221 NW2d 345 (1974); Advisory Opinion on Constitutionality of 1975 PA 227 (Questions 2-10), 396 Mich 465, 501; 242 NW2d 3 (1976); OAG, 1983-1984, No 6238, p 341 (August 1, 1984). The Michigan Veterans' Trust Fund is within the State Treasury and no money may be paid out of that fund and its earnings except in pursuance of appropriations made by law. Moneys from the Veterans' Trust Fund are appropriated annually for operating expenses and disbursements. See, 1984 PA 222, Sec. 1, 1985 PA 104, Sec. 1, and 1986 PA 214, Sec. 1. It is my opinion, therefore, that the Michigan Veterans' Trust Fund Board of Trustees may not replenish the Emergency Loan Fund with moneys from the earnings of the Michigan Veterans' Trust Fund without an appropriation enacted by the Legislature. Frank J. Kelley Attorney General
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