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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. 6216 April 9, 1984 APPROPRIATIONS: Appropriation to city or township in which racetrack is located HORSE RACING: Racing license fees revenue--distribution to cities or townships LEGISLATURE: Authority to determine amount of appropriation to city or township in which a racetrack is located The Legislature is required to annually appropriate funds from racing license fees revenue collected to a city or township in which the racetrack is located. In making the appropriation to the city or township, the Legislature is not bound to amend 1980 PA 327, Sec. 13(2), if it elects to appropriate an amount different from the amount specified therein. Honorable Wilfred D. Webb State Representative The Capitol Lansing, Michigan You have requested my opinion on two questions concerning 1980 PA 327, Sec. 13(2), as last amended by 1982 PA 168, which may be stated as follows: (1) Does 1980 PA 327, Sec. 13(2), require the Legislature to appropriate annually money to be returned to a city in which a racetrack is located? (2) May the Legislature change the amount to be returned to a city without amending the Act? 1982 PA 168 amended the Racing Law of 1980, 1980 PA 327; MCLA 431.61 et seq; MSA 18.966(31) et seq, Sec. 13(2), to provide: 'Twenty percent of the revenue received, but not to exceed $800,000.00, from racing license fees from a racetrack shall be placed in a fund under the control of the department of agriculture and shall be returned to the city or township in which the racetrack is located.' The letter opinion addressed to the Director of the Department of Agriculture, dated March 21, 1983, after observing that the wording contained in 1980 PA 327, supra, Sec. 13(5), consituted a continuing appropriation, stated: 'It is to be noted that Const 1963, art 5, Sec. 18, bars such continuing appropriation other than for the ensuing year. The provisions in 1980 PA 327, Sec. 13(5), supra, for the fiscal year 1982-83 and subsequent years comprise only a statement of intention to make future appropriations. Board of Education of Oakland Schools v Superintendent of Public Instruction, 392 Mich 613; 221 NW2d 345 (1974); Advisory Opinion on Constitutionality of 1975 PA 227, 396 Mich 465; 242 NW2d 3 (1976).' The language contained in 1980 PA 327, supra, Sec. 13(2), is in practical effect, equivalent to that used in 1980 PA 327, Sec. 13(5), supra. Each is intended as a continuing appropriation valid only for the ensuing year. It is my opinion, therefore, that the Legislature must annually appropriate from racing license fees revenue collected the amount of money to be returned to a city or township in which the racetrack is located. With respect to your second question, the case of Advisory Opinion on Constitutionality of 1975 PA 227, supra, is instructive: 'This provision is a continuing appropriation, i.e. an appropriation that does take effect in the ensuing fiscal year, but which by its terms continues to appropriate beyond that fiscal period. 'After the ensuing fiscal year, in which revenues can be matched with the appropriation, the conflict with art 4, Sec. 31 created by such a statute is identical with that created by the type of provision found in Oakland; in both situations, the budgetary procedure required by the constitutional provision becomes impossible. 'Therefore, under the rationale of Oakland, there can be an appropriation to the state campaign fund, only for the ensuing fiscal year, but not thereafter, appropriations necessarily being made on a year-to-year basis.' 396 Mich at 501-502. Inasmuch as 1980 PA 327, Sec. 13(2), supra, represents merely a stated intent to appropriate a certain sum in future years, the Legislature may increase or decrease the amount as it may deem fit. In authorizing the appropriation to a city or township, the Legislature is not required to amend 1980 PA 327, Sec. 13(2), supra. It is my opinion, in answer to your second question, that 1980 PA 327, Sec. 13(2), supra, states an intent to appropriate moneys to a city or township in which a racetrack is located, and in making an appropriation to the city or township, the Legislature is not bound to amend 1980 PA 327, Sec. 13(2), supra, if it elects to appropriate an amount different from the amount specified therein. (1) Frank J. Kelley Attorney General (1)
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