The Office of the Attorney General William Tong
1993 Formal Opinions
Page 1 of 3
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This letter responds to the March 25, 1993, inquiry of Assistant Treasurer Lawrence A. Wilson wherein he asked whether the Connecticut Bar Foundation, Inc. may invest Interest On Lawyers' Trust Account ("IOLTA") funds in the State's Short-Term Investment Fund ("STIF").
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This is in response to your memorandum dated September 22, 1993 wherein you request our opinion on whether the members of the Connecticut Pilot Commission ("Commission") have a right to defense by the State of Connecticut and indemnification should the exercise of their duties as Commission members result in litigation against them in their official or individual capacities.
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This is in response to your department's request for a formal opinion from this office as to whether or not Section 3-7 of the General Statutes is applicable to certain internal service/revolving funds administered by the Department of Administrative Services (DAS). Your department's request focuses on whether monies owed to the funds by other State agencies may be cancelled from the books of DAS or otherwise compromised in accordance with the provisions of Section 3-7.
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You ask in your letter to this office whether Conn.Pub.Act No. 93-435, § 87(b) violates Art. II, Conn. Const., relating to the separation of powers. You suggest that this question arises because the legislature would be imposing the UAPA rule-making procedure of the executive branch upon the probate courts.
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You recently sought our advice as to whether you may discontinue the practice of providing on request lists of outstanding state checks to asset finder organizations ("AFO").
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You have requested our opinion regarding the temporary rules and regulations of the Department of Revenue Services under Conn. Pub. Act 91-3, ee 51 to 93, of the June 1991 Special Session, as amended (the "Public Act"). The Public Act is entitled "An Act Making Appropriations for the Expenses of the State for the Fiscal Year Ending June 30, 1992, Providing Funds for Such Expenses and Concerning Fiscal Reform." Sections 51 to 93 of the Public Act relate to the state income tax.
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Hon. Joseph M. Suggs, Jr., State Treasurer, 1993-021 Formal Opinion, Attorney General of Connecticut
You have requested our advice regarding whether Connecticut's laws on protection of public deposits1 are adequate to fully secure such deposits in the event the depository institution in which such funds are deposited fails and is placed in receivership. The security of public deposits is an issue because federal deposit insurance for public deposits is limited to $100,000 per account, 12 U.S.C. § 1821(a)(2)(A), and public deposits often exceed that amount. Specifically, you are concerned about the security of state deposits in the event of a challenge by the Federal Deposit Insurance Corporation (FDIC) in its role as receiver of a failed depository institution, under the Federal Deposit Insurance Act, 12 U.S.C. § 1811, et seq.
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By your letter of May 4, 1992, you requested our opinion on several questions about the exclusion of irrevocable funeral accounts from consideration as assets in determining eligibility for your Department's programs. Essentially, you asked whether the monetary limit Conn. Gen. Stat. §42-207 places on such accounts is a requirement for their validity. If it is, you asked whether the limit may be exceeded either by creating an account outside the state and then transferring it to the state or by creating multiple irrevocable accounts whose total amount exceed the limit.
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You have asked what liability, if any, a state agency would have "with respect to any incidents arising at, during or after" an off-site holiday party attended by agency employees during working hours.
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You have requested a formal opinion from this office as to whether the Department of Administrative Service's ("DAS") use of private collection agencies on a contingency fee basis would be in violation of Conn.Gen.Stat. § 4-100 or any other section of the General Statutes of Connecticut.
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This is in response to your letter of September 11, 1992 in which you relate that the State Teachers' Retirement Board has requested an opinion of this office on the following question: Does the Veterans' Reemployment Rights Act preserve a right for persons covered by the Act to purchase retirement service credit in the State Teachers' Retirement System under the terms of the state law governing such purchases of service credit as were in effect when such persons were inducted into the Armed Forces?
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In your letter of August 12, 1993, you relate that by a Resolve of May, 1824, a Borough of Newtown was created. Subsequently the General Assembly passed 1931 Special Act No. 290 and 1953 Special Act No. 106 also relating to the formation of this borough. You ask three questions relating to this borough. First you ask whether the borough may be dissolved. Secondly you ask the procedure in accomplishing this dissolution. Thirdly you ask what legal requirements are imposed upon the officials of the borough to assist residents in bringing about dissolution.
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You have asked whether or not foster parents are entitled to representation and indemnification from the State of Connecticut. The corollary question is whether they are independent contractors and therefore not entitled to representation or indemnification.
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By letter dated February 26, 1993 you have asked for our advice as to whether an increase in the amount of money appropriated to municipalities under the Education Cost Sharing (ECS) grant program (Conn. Gen. Stat. e10-262h) which has been recommended by the governor for SFY 1993-94 is properly counted as a "general budget expenditure" for the purposes of determining whether the authorized expenditure limitation imposed by Conn. Gen. Stat. e2-33a, commonly known as "the spending cap", will be exceeded.
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This is in reply to a request for advice asking if the person you appoint as an Executive Director of the Department of Public Utility Control (DPUC), pursuant to Conn. Gen. Stat. § 16-2(f), to fill a vacancy in that position receives an appointment for four years or rather serves the balance of the prior Executive Director's unexpired term.