During the 2020 legislative session, the General Assembly enacted House Bill No. 2019 (2020), which appropriated $21 million to the Conservation Commission. Days prior to its final passage, the General Assembly removed language from HB 2019 regarding use of the Conservation Commission's funds, including for land acquisition and payments
2
in lieu of taxes (PILT). 1 When the Conservation Commission later sought to withdraw funds from the treasury to pay for a land acquisition and for PILT, its requests were denied by the Office of Administration due to the absence of such language in HB 2019. Article IV, sections 40-44 of the Missouri Constitution grant the Conservation Commission plenary authority to expend and use conservation funds for enumerated purposes, including: the control, management, restoration, conservation and regulation of the bird, fish, game, forestry and wildlife resources of the state, including the purchase or other acquisition of property for said purposes, and ... to make payments to counties for the unimproved value of land for distribution to the appropriate political subdivisions as payment in lieu of real property taxes[.]
Mo. Const. art. IV, sec. 43(b) (emphasis added). The General Assembly lacks the authority to restrict the Conservation Commission from using its funds for these constitutionally enumerated purposes. In passing HB 2019, the General Assembly, invaded the constitutional authority of the Conservation Commission by attempting to limit the constitutionally enumerated purposes for which the Conservation Commission could use its funds. Accordingly, the circuit court's judgment is affirmed.
1 PILT are payments made by the Conservation Commission to county governments to help offset losses in property taxes to counties that occur when particular lands achieve tax-exempt status, such as when they become state-owned.
3
Background 2
In the 1930s, Missouri faced a variety of grave ecological threats. 3 While the General Assembly was responsible for addressing conservation issues, political influence prevented progress. Other state agencies, namely the State Fish and Game Department, had limited authority in this area, but a lack of funding caused issues. To remedy these concerns, the people of Missouri proposed an initiative petition and, in 1936, amended the Missouri Constitution to establish the Conservation Commission as a nonpartisan government entity that would be insulated from politics, properly funded, and provided with adequate authority to address Missouri's conservation needs. The Conservation Commission was created and vested with the sole authority for [t]he control, management, restoration, conservation and regulation of the bird, fish, game, forestry and all wildlife resources of the state, including hatcheries, sanctuaries, refuges, reservations and all other property owned, acquired or used for such purposes and the acquisition and establishment thereof, and the administration of all laws pertaining thereto[.]
Mo. Const. art. XIV, sec. 16 (1875) (as amended in 1936). The constitutional amendment also limited the expenditure and use of moneys generated from the Conservation Commission's activities to specific purposes. Id. When Missouri adopted a new constitution in 1945, the people retained the Conservation Commission provisions adopted in 1936 and incorporated them into the new
2 The facts and information presented in this section are from stipulations and exhibits submitted to the circuit court. 3 The state suffered from a drought that began in 1933 and continued through 1936. A 1935 wildlife survey estimated the state's breeding reserve for common species stood at precipitously low levels, with only 2,500 turkeys, 1,800 deer, and 100 beavers statewide, among other alarming figures.
4
constitution as article IV, sections 40-44. In 1976, voters again used the initiative petition process to remedy the Conservation Commission's financial difficulties due to inflation and increased demand for services. The 1976 amendment repealed the original provision relating to the Conservation Commission's authority to expend and use conservation funds and, in lieu thereof, enacted article IV, sections 43(a)-(c). Article IV, section 43(a) imposed an additional sales and use tax of one-eighth of one percent to generate additional revenue for conservation purposes. Section 43(b) provided monies generated from the Conservation Commission's activities and its sales and use taxes shall be expended and used by the conservation commission, department of conservation, for the control, management, restoration, conservation and regulation of the bird, fish, game, forestry and wildlife resources of the state, including the purchase or other acquisition of property for said purposes, and for the administration of the laws pertaining thereto, and for no other purpose.
In 1980, the people again amended section 43(b) to authorize funds arising from the conservation sales and use taxes to be used to make PILT and grant the Conservation Commission authority to determine the amounts used for that purpose above a set minimum. 4 Mo. Const. art. IV, sec. 43(b).
4 In full, the language added in the 1980 amendment reads:
The moneys and funds of the conservation commission arising from the additional sales and use taxes provided for in 43(a) hereof shall also be used by the conservation commission, department of conservation, to make payments to counties for the unimproved value of land for distribution to the appropriate political subdivisions as payment in lieu of real property taxes for privately owned land acquired by the commission after July 1, 1977 and for land classified as forest cropland in the forest cropland program administered by the department of conservation in such amounts as may be determined by the conservation commission, but in no event shall the amount
5
In the nearly 90 years since its initial creation, the Conservation Commission, in accordance with the current article IV, sections 40-44, has used conservation funds to acquire significant amounts of land from willing sellers for conservation purposes and public enjoyment. It has also consistently made annual PILT since 1980. To access conservation funds, the Conservation Commission has, upon request, provided a budget to the General Assembly and the Governor. The General Assembly then made an appropriation to cover the budget requested. The Conservation Commission obtained the money by submitting a request for certification to the Commissioner of the Office of Administration, who approved the expenditure. This process was followed consistently until the 2020 legislative session. In 2020, the Conservation Commission approved the purchase of 510 acres of imperiled prairie habitat in St. Clair County as an addition to the Linscomb Wildlife Area for approximately $1 million. The Conservation Commission included this purchase price in its $21 million budget request to the General Assembly for the 2021 fiscal year. The Conservation Commission's budget request also included $900,000 for that year's PILT. At that time, the treasury contained sufficient unencumbered conservation funds to pay for the Conservation Commission's entire budget, including the purchase of the St. Clair County property and PILT.
determined be less than the property tax being paid at the time of purchase of acquired lands.
Mo. Const. art. IV, sec. 43(b).
6
In January 2020, HB 2019, an appropriation bill, was introduced in the General Assembly. HB 2019 set out appropriations for various departments, including the full $21 million requested by the Conservation Commission. 5 The original language in HB 2019 provided, in accordance with the language in article IV, section 43(b), that conservation funds could be used by the Conservation Commission [f]or stream access acquisition and development; lake site acquisition and development; financial assistance to other public agencies or in partnership with other public agencies; land acquisition for upland wildlife, state forests, wetlands, and natural areas and additions to existing areas; for major improvements and repairs (including materials, supplies, and labor) to buildings, roads, hatcheries, and other departmental structures; and for soil conservation activities, erosion control, and land improvement on department land[.]
But, in an attempt to restrict the Conservation Commission's constitutionally enumerated use of conservation funds, the General Assembly adopted a late amendment, four days prior to passage, removing several constitutional purposes for which the appropriation could be used. As amended, HB 2019 continued to provide the full $21 million appropriation but purported to limit the purposes for which the Conservation Commission could expend and use the funds: [f]or stream access acquisition and development; lake site acquisition and development; financial assistance to other public agencies or in partnership with other public agencies; land acquisition for upland wildlife, state forests, wetlands, and natural areas and additions to existing areas; ... major improvements and repairs (including materials, supplies, and labor) to buildings, roads, hatcheries, and other departmental structures; and for soil conservation activities, erosion control, and land improvement on department land[.]
5 The General Assembly also passed another appropriation bill in 2020, HB 2017, that included line items for land acquisition "additions to existing areas" but that corresponded to capital improvement projects originally initiated or approved during prior fiscal years.
7
This restriction on how the conservation funds could be expended marked the first—and only—time in the Conservation Commission's history that the General Assembly restricted the Conservation Commission from expending and using appropriated conservation funds for land acquisition and PILT as provided by the constitution. 6
The Conservation Commission asked the Commissioner of the Office of Administration to certify payment for the St. Clair County property in August 2020 and instructed that the payment be debited against the $21 million appropriation passed by the General Assembly in HB 2019. The Conservation Commission subsequently made a separate request to certify $900,000 in PILT. The Commissioner refused to certify either payment because, in her opinion, HB 2019 did not permit funds to be used for those purposes. The Conservation Commission and the Missouri Department of Conservation filed an action against the Attorney General and the Commissioner of the Office of Administration (collectively, the "State") seeking declaratory relief to require certification
6 Notably, in prior appropriation bills covering the Conservation Commission's budget, HB 2019 (2018) and HB 19 (2019), the General Assembly used language identical to the language in the original version of HB 2019 (2020) to appropriate money to the Conservation Commission "[f]or stream access acquisition and development; lake site acquisition and development; financial assistance to other public agencies or in partnership with other public agencies; land acquisition for upland wildlife, state forests, wetlands, and natural areas and additions to existing areas[.]" This exact language was again included in HB 19 (2021), HB 3019 (2022), and HB 19 (2023). The restriction on which constitutionally enumerated purposes the Conservation Commission could expend conservation funds was included only in HB 2019 (2020).
8
of the payments described above. 7 The case was submitted on stipulated facts, and the circuit court entered a judgment declaring sections 40-44 of article IV grant the Conservation Commission exclusive authority to expend and use money in the conservation fund within the treasury without an appropriation bill passed by the General Assembly. It also found, in the alternative, that even if an appropriation bill is required to authorize the expenditure of funds from the conservation fund, HB 2019 was a constitutionally invalid attempt to change the Conservation Commission's authority to expend and use conservation funds because it violated the single subject requirement in article III, section 23. Accordingly, the circuit court ordered the Commissioner of the Office of Administration "certify the St. Clair land purchase and PILT payments as requested by the Conservation Commission." The State now appeals. 8
7 While this case was pending, Ken Zellers assumed the office of Commissioner of the Office of Administration. Pursuant to Rule 52.13(d), he was automatically substituted as a party. Nonetheless, the state filed a motion requesting that this Court substitute Ken Zellers for his predecessor, Sarah Steelman. Substitution of parties is automatic under these circumstances, and, though an order of substitution may be entered at any time, "the omission to enter such an order shall not affect the substitution." Rule 52.13(d). As a result, the Court overrules the motion to substitute as moot. In addition, Attorney General Andrew Bailey was automatically substituted for his predecessor, Eric Schmitt, pursuant to Rule 52.13(d). In the same motion, the State requests the Court take judicial notice of House Bill No. 19 (2021), an appropriation bill passed after this dispute arose that provides appropriation authority to the Conservation Commission for land acquisition and PILT, a copy of which the State attached as an exhibit to its motion. The State's motion is hereby sustained to the extent it requests the Court take judicial notice of HB 19 (2021). 8 This Court has jurisdiction over the appeal pursuant to article V, section 3 of the Missouri Constitution because it involves the validity of a statute of this state.
9
Standard of Review "When reviewing a declaratory judgment, an appellate court's standard of review is the same as in any other court-tried case." Guyer v. City of Kirkwood, 38 S.W.3d 412, 413 (Mo. banc 2001). In a court-tried case submitted on stipulated facts, the circuit court's judgment will be affirmed unless there is no substantial evidence to support it, it is against the weight of the evidence, or it erroneously declares or applies the law. See Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976); see also Incline Vill. Bd. of Trs. v. Edler, 592 S.W.3d 334, 337 (Mo. banc 2019) ("Because the parties submitted a joint stipulation of material facts, the only question before this court is whether the [circuit] court drew the proper legal conclusions from the facts stipulated." (internal quotation omitted)). Analysis Although the circuit court's judgment and the parties raise multiple issues, the determinative issue in this case is whether the Missouri Constitution permits the General Assembly to limit the Conservation Commission's authority to expend and use conservation funds for the constitutionally enumerated purposes. 9 This Court holds article IV, sections 40-44 grant the Conservation Commission plenary authority to expend and
9 This Court need not address or decide the alternative holdings rendered by the circuit court and, instead, affirms the circuit court's judgment on the above-stated ground. The Court "is primarily concerned with the correctness of the [circuit] court's result, not the route taken by the [circuit] court to reach that result." Bus. Men's Assurance Co. of Am. v. Graham, 984 S.W.2d 501, 506 (Mo. banc 1999). The Court will affirm on any ground that supports the circuit court's judgment, regardless of the grounds on which the circuit court relied. Rizzo v. State, 189 S.W.3d 576, 578 (Mo. banc 2006).
10
use the conservation funds appropriated in HB 2019 for any of the purposes enumerated in section 43(b). "When construing a constitutional amendment, the fundamental purpose of constitutional construction is to give effect to the intent of the voters who adopted the [a]mendment." State v. Shanklin, 534 S.W.3d 240, 242 (Mo. banc 2017) (internal quotation omitted). The plain language of article IV, sections 40-44 makes clear the people's intent to grant the Conservation Commission plenary authority to expend and use conservation funds for certain enumerated purposes without legislative discretion. Section 40(a) vests the Conservation Commission with sole authority over [t]he control, management, restoration, conservation and regulation of the bird, fish, game, forestry and all wildlife resources of the state, including hatcheries, sanctuaries, refuges, reservations and all other property owned, acquired or used for such purposes and the acquisition and establishment thereof, and the administration of all laws pertaining thereto[.]
Section 41 then expressly grants the Conservation Commission the power to "acquire by purchase, gift, eminent domain, or otherwise, all property necessary, useful or convenient for its purposes[.]" Next, section 43(a) establishes an additional sales and use tax [f]or the purpose of providing additional moneys to be expended and used by the conservation commission, department of conservation, for the control, management, restoration, conservation and regulation of the bird, fish, game, forestry and wildlife resources of the state, including the purchase or other acquisition of property for said purposes, and for the administration of the laws pertaining thereto[.]
(Emphasis added). Finally, section 43(b) expressly provides that the revenue from that tax, as well as other conservation funds, shall be expended and used by the conservation commission, department of conservation, for the control, management, restoration, conservation and
11
regulation of the bird, fish, game, forestry and wildlife resources of the state, including the purchase or other acquisition of property for said purposes, and for the administration of the laws pertaining thereto, and ... by the conservation commission, department of conservation, to make [PILT] ... in such amounts as may be determined by the conservation commission[.]
(Emphasis added). Taken as a whole, these constitutional provisions unambiguously (1) require the Conservation Commission to fulfill enumerated purposes, (2) grant the Conservation Commission power to expend and use funds, purchase land, and make PILT to carry out those purposes, and (3) provide a direct source of funding solely devoted to the Conservation Commission's performance of those purposes. These provisions do not, however, leave any room for the General Assembly to interfere with the Conservation Commission's performance of its constitutional purposes. This is because, as discussed above, the very reason behind the Conservation Commission's creation was to remedy the failure of existing government bodies in the 1930s, including the General Assembly, to set aside politics and properly manage Missouri's conservation needs. Given that history, it would make little sense to allow the General Assembly to then impede the Conservation Commission's ability to perform that very role based on the whims of political discretion. The Conservation Commission's right to expend and use conservation funds for any of the constitutionally enumerated purposes is further evidenced by prior jurisprudence and historical practice. Prior to this dispute, the General Assembly has never attempted to restrict the Conservation Commission's constitutional power to expend and use its funding for land acquisition. The General Assembly has, on prior occasions, included limitations
12
in appropriation bills to attempt to prevent the Conservation Commission from using conservation funds for other purposes enumerated in the constitution, but the Attorney General deemed such actions to be unconstitutional. For example, in 1953, the General Assembly appropriated funds to the Conservation Commission while providing those funds could not be used for "the rental or erection of a building for use as a central office building of the Conservation Commission[.]" Missouri Attorney General, Opinion Letter on Section 4.510 of House Bill No. 361, Passed by the Sixty-seventh General Assembly (June 11, 1953). The Attorney General determined this restriction on the Conservation Commission's use of conservation funds was "clearly invalid," noting that article IV, sections 40(a) and 43 provide that those funds "shall be ex pended and used by the commission for [constitutionally enumerated] purposes." Id.; see also Missouri Attorney General, Opinion Letter on Sections 4.510 and 4.520 of Senate Committee Substitute for House Committee Substitute for House Bill No. 4, Passed by the Sixty-ninth General Assemb1y (May 29, 1958) (finding the General Assembly's restriction on the Conservation Commission from using appropriated funds for salary increases invalid). Additionally, in Conservation Federation of Missouri v. Hanson, 994 S.W.2d 27, 28-30 (Mo. banc 1999), this Court addressed what amounts to the inverse of the present issue: the General Assembly's utilization of conservation funds for tax refunds under the Hancock Amendment without authorization from the Conservation Commission. In finding that action improper, the Court remarked "the constitution requires that [conservation funds] must be used and expended by the commission for the specified,
13
permissible conservation purposes." Id. at 30 (emphasis added). "Any action by the General Assembly that purports to appropriate [conservation] funds for any purpose that is not an authorized use or expenditure by the commission violates [section 43(b)] and is unconstitutional[.]" Id. (emphasis added). This jurisprudence reflects a fundamental principle embedded in the Missouri Constitution: the separation of powers. Article II, section 1 of the Missouri Constitution provides: The powers of government shall be divided into three distinct departments— the legislative, executive and judicial—each of which shall be confided to a separate magistracy, and no person, or collection of persons, charged with the exercise of powers properly belonging to one of those departments, shall exercise any power properly belonging to either of the others, except in the instances in this constitution expressly directed or permitted.
Under this constitutional principle, the General Assembly "may not use its appropriation authority to encroach on powers vested solely in the separate, coequal branches of government." Rebman v. Parson, 576 S.W.3d 605, 609 (Mo. banc 2019). In Rebman, the General Assembly included language in an appropriation bill that prevented funds for administrative law judge (ALJ) salaries within the Department of Labor and Industrial Relations from being used on any ALJ appointed between 2012 and 2015. 10 Id. at 607-08. This Court found that restriction to be unconstitutional, as "executive departments are constitutionally empowered to make personnel choices without interference by the general assembly." Id. at 610.
10 This restriction would have prevented the Department from retaining Rebman, who was the only ALJ appointed in that timeframe. Rebman, 576 S.W.3d at 608.
14
That same principle applies here. By adopting article IV, sections 40-44, the people of Missouri created the Conservation Commission within the executive branch and "constitutionally empowered" it to expend and use conservation funds for any of the enumerated purposes in the constitution "without interference" by the General Assembly. See id. The General Assembly may not subvert the will of the people by restricting the Conservation Commission from using appropriated funds for any of the purposes listed in article IV, section 43. Conclusion The circuit court's judgment is affirmed.
Wilson, C.J., Russell, Ransom and Draper, JJ., concur; Breckenridge, J., dissents in separate opinion filed: Powell and Fischer, JJ., concur in opinion of Breckenridge, J.
CONSERVATION COMMISSION and ) MISSOURI DEPARTMENT OF ) CONSERVATION, ) ) Respondents, ) ) v. ) No. SC99092 ) ANDREW BAILEY, IN HIS OFFICIAL ) CAPACITY AS ATTORNEY GENERAL ) OF MISSOURI, and KEN ZELLERS, ) IN HIS OFFICIAL CAPACITY AS ) COMMISSIONER OF THE OFFICE OF ) ADMINISTRATION, ) ) Appellants. )