Request By:
Mr. O. B. Arnold
Commissioner
Bureau of Vehicle Regulation
Department of Transportation
State Office Building
Frankfort, Kentucky
Opinion
Opinion By: Robert F. Stephens, Attorney General; By: Charles W. Runyan, Assistant Deputy Attorney General
You request the Attorney General's opinion on certain aspects of H.B. 20 [1976 Extraordinary Session], relating to the circuit court clerk's fees in issuing motor vehicle and motorcycle operators' licenses etc. Section 20 amended KRS 186.531(2) by providing that "the circuit clerk shall deposit in the state treasury to the credit of the general fund except as provided in subsection (f) fees pertaining to applications and license fees in the following manner: . . ." The amendment did not change the fee schedule set up in subsections (2)(a) through (f), except that the crediting of the fifty cents (50 ) fee in subsection (2)(f) to the special account in the state road fund was expressly retained for that special account to be used for the purpose of issuing a photo license. However, under Section 21, the boat licenses fees are to be deposited in the manner as provided in Section 12 of H.B. 20. The latter section [Section 12] deals specifically with the circuit clerks' handling of fines and forfeitures imposed in the district and circuit courts. Such fines, as provided in Section 12(2), must be deposited by the circuit clerks daily in a state depository bank, and later they must make a report and pay the fines into the State Executive Department for Finance and Administration. You say Section 12(2) is to be codified as KRS 30A.120. You think it creates a conflict with the clerk's new duties as to certain fees. Sections 12, 20, and 21 of H.B. 20 become effective January 2, 1978. It should be kept in mind that the salaries of circuit clerks will be paid directly out of the state treasury instead of being paid out of their fees custodially held. See Section 19, H.B. 20.
Your question:
"In order to resolve this conflict, may the State Treasurer pursuant to administrative regulations, direct that all circuit court clerks are to deposit those fees enumerated in KRS 186.531(2), in a designated state depository bank to the credit of the General Fund, rather than depositing them directly to the State Treasurer, which is what appears to have been the intent of the General Assembly in this amendment. (The only way a clerk could deposit any money in the General Fund is through this suggested method.)"
Under H.B. 20, effective January 2, 1978, the clerks will pay fines into the Executive Department for Finance and Administration, which will in turn place the money in the state treasury in the proper account required by statute. Under H.B. 20 the fees collected for operators' licenses must be deposited by the circuit clerks in the state treasury to the credit of the General Fund, except the fees mentioned in KRS 186.531(2)(f), which latter goes into the state road fund. Under H.B. 20 the fees collected for issuing boat licenses are required to be handled in the same manner as fines are handled, i.e., the clerks must turn that money into the Executive Department for Finance and Administration.
It must be kept in mind that the fines and boat licenses fees must be kept temporarily by the clerks [in their custody] in a state depository prior to turning over such money to the Department for Finance and Administration. However, as to the operator licenses fees, the clerks must pay that directly into the state treasury to the credit of the General Fund, according to the literal language of the amendment.
In the light of the historic and financial role of the Executive Department for Finance and Administration, and in reading all of these sections together [12, 20, and 21] under the doctrine of pari materia, 1 it is our opinion that the clerks should turn the operators licenses fees into the Executive Department for Finance and Administration, which department will in turn credit such fees to the General Fund in the state treasury. This will accomplish the intent of the legislature as to crediting the fees to the General Fund. 2
Your suggestion that the state treasurer authorize by regulations the payment of the operators' licenses fees into a state depository to the credit of General Fund is not permissible, since there is no statutory basis for this. Cf. KRS KRS 41.070(3), providing for an agency's deposit of its receipts in a state depository.
While it would be possible for clerks to send such operators' licenses receipts to the state treasury, at least a pay-in voucher system would have to be installed by each clerk. See KRS 41.100 and 41.070(2). On the other hand, the Finance Department is organized to process such receipts for state treasury. In addition, if the Finance Department processes this money it will have a better perspective of this particular revenue generated at county level. See KRS 45.310.
As to the Finance Department's key role in the receipt, budgeting, and expenditure of state revenue, see KRS 42.030, 42.050, 45.030, 45.080, 45.160, 45.170, 45.270(3), 45.300. Cf. KRS 46.040 requiring local officers to turn in state money to the Department for Finance and Administration for payment into the state treasury. "Literal language contained in some parts of a statute in apparent conflict with the general scheme should surrender to the general purpose and intent of the legislature as gathered from all parts of the statute." (Emphasis added).
Department of Revenue v. Miller, 303 Ky. 822, 199 S.W.2d 622 (1947). We believe our construction of H.B. 20, Section 20, amending KRS 186.531(2), is in harmony with the general scheme of the statute in the placing of these revenues in the state treasury through the Finance Department. At the same time it would promote a more unified, orderly and efficient approach to revenue accounting.
Footnotes
Footnotes
1 See Cawood v. Coleman, 294 Ky. 858, 172 S.W.2d 548 (1943).
2 We are saying the procedure of Section 12 should be followed, i.e., a daily deposit of the fees in a state depository, and later payment into the Department of Finance.