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u,g:aJ repf"kllunoll for propk wllhou( is fu nded III part by bwy.,rs who know mal AlaD':I!Ila's poor competenl OOlIruei. SupPOrt Abh:1l1la lcgaJ 5MvICes with )'Our Ia_ <kductibl .. t'Ofllribuuoll of $1 00 or "'Ore. 5.-lld )'OUr chÂŤk. p,l)'abk 10 lrgaJ 5.-rvices. today.

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Ab~ma

IN BRIEF l~

NOYfflIbtr

Volume 55, Number 7

Photographed on the Mobile Ri~r, the balcony 01. the IItW Mobile COfl".'ention Cent(. _ 11$. pictu""'l"" ~"4I for 1994·9$ Alahamo. Stilt Bar Pruidmt 81'00>: C. HoIma m:I his wilt. ~~ I'rtsidmt HoImtS -.ned this o/Iia at the c:ondliWn 0( this ~J annual mtdingal ~ 8eKh. Abbimi. I'PtoIobr~. FfttJtoy> ...... of Hob&

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TIlE AL\BAMA tAWYER

PRESIDENT'S PAGE

Bar Commissioners Adopt Report Of Long Range Planning Task Force

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nr of til, IT\(IS\ signillC<lnl ,((tnt lIccomplish· menu of OU r many CQrnmiltHI iUId \.uk loren wu lhe work 0( the Long ~ PLanning T'»Ic Poree in dfYtloping j long .-lnge p~n for OUr bar. Tht tuk force WH appointfd by Pusidcnl Spud Snk wIltn hi: look offICe WI. ~"r. Tho AlUwnI Sbotc BloT ~ not Iud I 11m IonJI plinnil\lil committe. ;and Spud "(tit tNt il would br both brnerlCilIl md infolll'lllliYe if 'ft Iud I wk furct 10 W<t " lone. hord look it .... here 'ft ~ bttn in lilt pUt and wheu: we ~I 10 bt in tilt future," The task force was 'o1:ry "bly chaind by Camille WriQht Cook 0( Tusuloosa .nd WilS ~ up of some 4(1 distinguished lawyers (rom a(:T()S$ tht stat. with dlVl"5I' practices and viewpoints. II included 5eVu al apptllatc ind circuit judges ind five form.r pruidtnU of the .Ute bar. Tta work of tM commiu« w;IS divided into four l ,cU (0' tOruidt.ltion Ind study. That \OtTO: II) Rtvitw 01 the bar's role as 1I lic.nlinll and "guillt o', Illtney, chaired by David Boyd; (2) o.mographiQ of!ht bar (qwolity of lifd. cha.iml by Jim Ibrton; III Profasiolllliism. cluoired by Gonnullonu and Bill IWrston; and !4) Purposes of the org.loniud bor, chaired by Ali« Pruett and Tennentw. The tu k force worked very ha rd in dtvt lo~ing a (omprehemive plan and report for guidance of Ou r bar into the ne ~ t century. The report in its mission statement $\<Itn that "the AWwna State 8;lr is dedi · cued to promoting the pro(to.ional ruponsibilily and cornptltn« of its members. imprOYi"ll the idministRlion of jusl.ict. and irlCl"tl5ing the public: undtl"$\oonl;l· ,.. oland mpm for the taw." This is;ulGCtllmt and lUCCinct $\<Itnnmt oI....-mt we ....Id be about in the work 01 this bu. In ketpi", with the importlnt lingl. IIOll for the blr oIencouQ,(lirlll profts.sion.l.lism. the tasIt (om' alto adopted tilt definition 01 proles.sionali5m rtoommtndtd by tlK bor, task Forte on Pro(es.sionlIlism as. "'flit pursuit 01 the art of the law as a wmmon <.ailing, with I 5pirit of seT\lice to tilt public and the client. and u ndert.kt n with compe tenq, integrity and civility."

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328 1 NOVEM n~:R 1994

The entin report 01 the ~k force will not be set out here, bot I W;ult to gM )'OU the fol\owifli broad recommt~t;ons set forth in the rq>Orl ~ the role: 01 the ~rna Strt. 8;lr in fulfilling its obligation!:

t. To providfc ItMrship in mlwlting the quality 01 justice and K«SS lo\tgal seNi«s; 2. To support ¥I irdtperdtnt and q\llllily judie;"1 sys((m; To .... ure highest .WIdlrds of dhial cond\ltt and proles· sional compete""e; 4. To expand the Opporluniliu for women and mioorities in th.law: 5. To work wit h the supreme cou rt in undertaking periodic review of bar admls.sion and the bar n a minl lion procas; 6. To study the delivery of legil services by non· ~n iUId !Nice rttOIllmtrl· dations thai would best stNf the pub. lic;

7. to promote the use oIalte ..... tiw dillpute raoIution; 8. To be i\Oo·m 01 the public per«ptions of t he legal profusion a nd work loward emphasizing lilt correction of "e rroneous ~Tcept ion5" that reflect unfavoT&bly OIl the profession: 9. To enhance the perfo rmance o( ali componentJ of th e ba r organization and structure: and ]0. To u rae that a s tandud policy of inclusion be inslitulionaliud and communicated to memo bers of the prol~ as the PIInmount mponst to stpi. r.oli$m and (r.ogmentootion.

The pIin "";IS dissemiNlted to )'OUT blr commissioners last July and at tJw: bword m«tin& 00 September 23, 199-4. follow· inQ In netllent presentation by Camille Cook, the board unanimous./y adopted tJw: plan. Wh ilt the plan is only I guideline. il don provide you r board of bar commilSiontn lind th. membtn of our bo r wi th direetioo and guidanc. iI.I wt go about our work. THE ALABA/oIA LAWVER

Th~ bo;r.rd .1'0 voted to "u.t~ • Long Rl ng~ PllnninQ committ«. Thil commi!!te wit! provide us with I munl 10 impl'O\'e and modify 1M long ~ pbn "tlen and when tho: Itg,JI pnjusion and tho: public will bo ~ wrwd. As I miller of Inluut. Keith Normin repOrlS that tM Califomy Stilt &ir budgelf'd S2SO.000 for IkwIOpmfnl of its Ions nnge plan and Ihe ruult ;s likely 10 be similir to 1M oetlkn! ""OI'k of oor task /ora. Thanks 10 lilt OOlicalion of ou r \.uk force mtmbt .... "t r«thtd ~ oetlkn! producl with no significant COSI 10 I"" bar. We al'f indHd indebttd to Camille Cool< and all the membe ... of Ihe Long Range Plan · ning TMk Force for thil"..,1'}' worthwhile accomplishment. Now it is UP to u~lh is Itar and in t"" future-to implt· .... nl l"" pl;m b)' ~ki", t"" righl dedsiOTlS and d!ort to ful . filii"" Itn Stlled obligalions we Nvt formally undilrta"'n.

e.r L••d.rahlp Conf.none. On Stpltmbe r 9. 1994 the Annual &r uaduship Con· ference wu ""'d I t b.or htadquuttn. Tht: conftrtnn WM ....tll attended by commill •• du.irpenons and m.mbeu. stct ion ludt.. lind IOCiI bu p.esidents. Very info rmative reportl "'ere midt on the wo. l< of 1M Alab.omi Slite 8u. and 1M work of the varioul commit!«1 Krvinglhe profession such ... SpKilJiQ.tion. adve rt isin,lnd 5Olicita· l ion and alttrnlllivt dispute ruolution. AI50 on the agen. da we.e reporls on programs which Krvt tht public such as the Volunteer Law)'u s Program. the Alaba~ La .... Foundation and Kid, Chance Scholarship PrOllram. Th e con· fe •• nce was very .ucee.sful an d will Qive us impetus in carrying oul the plans of Ihe Se(ll0M, committ . .. and task fortH this yea.. •

Delinquent Notice Ucensing/Special Membership Dues 1994-95 All Alabama Anomeys:

The dual Invoice fo r licenses o r special memberships was mOiled in mid-september and was to be paid between October 1 and October 31. If you hove not purchased on occu· palionoilicense Of paid special membership dues. you are now delinquent l

In Active Privat. PfoctIc8: Any attorney who engages In the acllve private practice of loW in Alabama Is required to purchose on occupational license. The proeUce of low Is defined In Section 34-3-6.

Code of A/obomo. 1975. as amended. (Act -92-600 was passed by the Alabama Legislature ond omended Section 40-12-49. Code of Alabama, 1975. effective October 1. 1992.)

Occupational UC....... $287.50 (Includes outomatIc: 15 p8JCent late penally)

Not In Active Prtvate Proellce: An attorney not engaged In tha octlve prlvole practice of low In Alobama may pay the speclol membership fee to be a member In good standing. Judges, attorneys genera l.

United Stoles attorneys. district attorneys. elc .• who are exempt from licensing by virtue 01 a position held. quality tor speclol membersnlp. (section 34-3-17 & 18. Code of Alabama, 1975. os amended) SpKIal MMIbIrIhIp 0ues...$125 (pel laity not applicable) 0Qc:t ony QUnIIonI to:

Christie rarantlnD,

Member~hip

Services DlrectOf. ot 1-800-354-6154 (In-stale WArs) Of (205)

269-ISISlmmec!iotelyl

THE ALABAMA LAWYER

NOVl-:M8ER 19941329

EXECUTIVE DIRECTOR'S REPORT

THE FIRST MORNING OF MY FIRST DAY

I II

fl hid any illusions 0( Klf·;rnpo'>rUnCe upon becomiOi aKUtiYc dirKlOf. the)' ..... ~ brid ana. The first morning 01 my Arst ~. I pulled up \0 the par\UnII dtdt 01 the bar building 01. 7: IS LIT\. to di$co>.oer thw. the mt_flte _ j.vnmtd. I SOl out 01 my car. mtered the buildillJlthrougll in iltemat. mt",roce. and rtt~ the handle for the clWllt \0 ~Iy open the pte. 1 fiddItd with the app.lo"'tus lor len minutu or >0 and ..... abk: to the flit to opm m:I close electronically. as it is IU]lIlOStd \0 cia. Next. 1 wtnt to the break room to makf coff... We Nove an unwritten rule thattM first to arrive ma ku the coff••. Making cofltt U$iOi p~. mellllred patktts U 00 big deal. but. u 1_ opcnilll! tM trash COI11jlaC\or to dupo« of tM empty patkage. I sadly It.amtd that tho clt~1lI! emol hid lailftl to empty th. comPilcior t h. prtvious nomine and tho ~or b.c hid brokm. Spilling tho prMous dais contents. Consequently. 1 hid to dean out tho com]lKIor and put all tho ~ into a rotW pIistic 1M&. Needless to~, my first ~ as executive di~tor hod a rather inarnpidous besinning. !hi, uperienee reminded me 01 somtthillJl om 01 my uri;· u mentol'$. bck Smallen, had said many years btfore. J&ek was the general manager of WJHO Radio whe«, in hiSh s.chool I worked part·time ItlliOll radio a<h'l!rtisillJl. lie ..... alwlys rnliy ~nd willina: to share his insight! on topkl r;oTlJlina: from the r~lio busine" to politics. I can remember his ttlliOi me on mort tIwl <lOW OCQSion tNt beiOlIi chief a«utive oIIie.r _ not just lo\ltiOll In ill oIfl« m:I making a«uIiv! dtciiions. but that it lIImttimn requiml fItIting your Iuonds dirty iIld doinII thif1lll that no <lOW ,be on the ~ thinks is ~ fA his or Ivr job dtKrip1ion. As I ....... .....wne my Iuond$ after pulti", tho garWit into I rotW ball ind cltaniOll OUI tho C(lnIPK\Or that first momine 01 my first di.y.1 mlT\'l!Ied at tho YjIICity 01 Jack', obsetvitions >0 many)'tirs ago.

set

Inle metl_1 reputelion of Ihe Alebe"", 81et. Be r grows You may 1'«111 that in August 1989. tilt Alabama State I»r

3JO I NOvt;MBER 1994

hosted" group of lepl scholm visiting (rom Niurag ..... The bar had bet" stltcttd ~ '" $hOw(.l$e for the s.:holars to !tam about the certifou.tion of ~rs. professional standards. the blOT enmiruotion proclW ,,'\d other issu" pertimn! to tlw: org.Jnw,tion 0( the Itpl profusion. Thi'l\*t AUII~, the AW>.un. State Bar onu -eain KMd u host to '" fo«ign del· egation. Visiting uS this time weu Ihe president and honorary 're;uuru of the Jamaiyn Bar Auoc;,lion, Dr. lJo)'d Barm l! and CrJ.fton S. Miller. We ",ere also fo.lunate to hOSI thei r wives who "'ere accomJlilnying them. Dr. Sa.ntll and Mr. Millrr wert vili t ing Ihe Uni ted States umlt. the iuspku of a Unitw Statts Aid Griml in an effort to strengthtn ItwiT bar ,,,odation's orllaniutionlll st.ucture. incrust membership ltId ~Iop i for·

mil CLE pro,nm. The American Bar Associlotion had r«OIIImmOOlthat they study the prog~ of the ~ Stale Sar in idc\ition to Ihoso: of the Marybnd ~ NfW tU.rTl;>$hi~ Iws. OUT gutsu spent the belter part of i diY talking .... ilh suff membus aoout professional ruponsibHit~ ~nlll~w~u dis.ciplin~, how to orQan;,.., a mandatory CU: prOQram and wa~s to enhance their bar association's masnine and publitations. In tht procus, wt Inrned somethi nS about thei r prof.uiona! licenling and regulatory optutions as well as their court sY"tem. I dl5COWr.d that u members 0( tM lesal profusion. Jamaican attorneY" uperitnee problems lNoI /1«' not unlike the onu uptrlenced by ,\.IaNma attorneY". Indud. this simitlFity of issuu ted to the initial discussion of futu," toOperation with the bmaiun ~r Asloc:illion thaI ma~ Iud to Ih~ denloprnent of /I cornplT,iIIivt liW urnin ... for AbbamlIliwycrs to be Mid in Kingston. The list COOlpa",' 1M law seminar Ofginiud by tM Nr wu almost tm )'tirs ago in Bermuda. " Nle It was an honof for our bar to bt 1"KOITIl1ltndt<l as a mode! for th. Jamait.ln Bar AuoI:;ation to study and lurn from, more importantly. we had th. oppOrtunit~ to lea rn about the legal profession of another country and make new friends. • TH~:

ALABA."1A LAWVER

How to Avoid MeLE Problems lUI II II SlIoy tII ....nL 1lw: d..dli..... for ~1t1ing uch yt~r's MCt E rtquinmtnt i. Dtccmb<:r 31. All c~ttnlion Wltil Mlorch ] !Ny be rtquuted if I deficiency pian is submitted by Jamary 31. 1lw: dtfJCimcy plm must be requested ill wriling ~nd must stale the sponsor. litltJ datc, lOCation, and credi~ of th. program )'QU ~re planning to attend be tween Janual» I and _ Ma rch 1. Early sclectlon of tach year'. seminars enhances the opportuni ty to !tlect the CI. E that btl t matchu ta~r$' arfa.! of prattic •. tMst who wai l until tht Ian minute find dtcrtutd availability of the stmi~rs they would pre~r to iUtnd. ~

CorTtCl Doa.umpliuco at 00« . The Me LE Commission rtgn:u tNt the Supreme Court 0( AWIam;o has to suspend some I~n octo )'ear for not com· pleting MeLE requirements or not paying I~tf feu. If this ott\ll"$. 1m I"",)'", loKI ~t lUll ant or more months 0( practke. muSI make up all .. mina. and late fee deficit ncie. and

must pay a reinstalement fee. Vtrlfy the K CUDcy of thl Annual Report of

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Co mp liance. As I ifNic. 10 lawyers. the MeL E Commission obtains attendance rttOrds from spoNOr'$

r ill Iht An nual Rt pon of CompUaftCt li ....ly. 1lw: dudIi..... is JanUiry 31. Otherwiso. a

$50 lat. filin~ f~ mults.

r il l t he ddlct . nc)' plan on l ind co mpltte III CLE th e dtf lcl ency p la n dtadllne. Olht!Wist. ~ SIOO latt CLE lec relults,

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I'«0I'<l on the lral'l$(. ipt. HowtWr, uch ;tIto.nry .. rnponsibl<! for filint: ~ ...:curate rtrord of his Or her e LI:: luendllnct. Any nuded

correction to lhe AnnUil RtpOrt of Complilnce should be mad. before the attorney ;and therdly attests 10 its IoOCUrKy. It is , the policy oIlht. MCI.E Commission \0 report 10 ( tho discipl;",,!), bo;!rd ,II insbnc .. 01 f.l .. affi· ;..,,.. davits. Tht MetE Commission i. plw.td to report that I ,out majority of Alabama la~rs do comply fully with their ~I CLf. .equinments and the reby do

signs it

avoid the foregoing problems.

•

UNTIL l\D.v, TIm cx:MI1\NIES WERE APIJUT AS EASY 10 CD"IIAAE. Tbt$tdlys. a lot ofride ........'"'" dam ... boo financially DIiId. 8d. ..... oIIo:a. ..... Ihoy PftIIIIOIO _ """-I13Iioo ... -..ici . . . . 1IOI.Inie..-d f.-.ciai ~ In fOCI. fty . . collen mi+rli. At ~..~ Vallry T1IIo: ......... IIIe.....t fer ....m.dizo:d cIaifm.poyin&-.bi1ily I3llnp fer tiIIo isosur= lNI·I ......y we asked 110 be .-d b)' s.-lIo'd &. Poor',_ We W<tt givtn loll A. - !he higllQl","", f""" S&P in Ihe tille ir.iu.uy IIOdaic _ along ..iIh oor o/f,lialc ond coundc!Wri1er. Old Rrpublic Nalional title: Insur.ooo: Company• ..-100 n:aivtd loll A. t.II.ina f(>' dIe...oorw;l ~ ;" a row.

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Ask..octaride .... fer !heir ..... S!ar<brd &: Poor's.. If they lbo-I ha... one. ask """. '"'"' eatl

Mi"jvipp VaIII:y Tode.

• • •

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MISSISSIPPI VALLEY TITLE • • •• INSURANCE COMPANY llHomtoi&b<e Sftoet. P.O, Box 2428 Jarbon. MS )922S.242t1 (601) 96'M222 (1m) 647-2124 (AUMS/fN)

THE ALABAMA LAWY£R

NOvt:MBER 1994 / 33 1

LEGISLATIVE

WRAP-Up

BII ROBERT L McCURLE1: JR.

Un'nCO'1l0r .tMl

non"flrotlt .'SOC:lIollon. An Institute commill« 1I;os retorn· rnmdtd to the Coo""i' of the ~ UW Institute 1I M'" Unincorponled Non · Profit Anociation Act. The com · mittet wu cl'lli rtd by L.B . r eid of Birmins~m. while Dr. Rich.llrd Thig· pen, retired faculty me~r of Ihf Uni . versity of Alabama School of Law, Krved as chai r. ~lembe ,., of the com milt« Wfl'l': Malcolm N. CanoichaeL

Act with chanses and additions 10 rdlt<t Alabama liW. AI CQmmon law an unincorporated owociolotion. whrther non' prolil or for· prolit. was oot a ~mt ItpI mlily. II Wat an aggregate o f individuals. In many - ) ' I it hid the cllaTXteristics of a businw partntrship. Thit app roach obvioUJly crnltd problems. A Sift of rul property 10 an

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11111 1111Mb. II""'"""",,, \1rf1o.1a HopId .... Annl,lOD Mary Elltll La ...... Oet.otUT

Jim Main, "'OIllgom.ry Bob I'u....... 1'boocIoR Thoma. O. So .. fonl. III . Aubt.m ...... ScoIlM. 8""'..,...... Al)ow SprwIL 1 M "

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ProleSio . Richard Thigpen, in hi, prdace to the committee's draft, has summa,izrd the Act .... fol\Qws: Tll is Act .dorms the common Ill"" concerning unincorpo,"ted,

non ·profit U3oOCiations in thru

buic: :m-..tOOrity to acquire. hold. ilnd lranskr property. e51)t. ciilly ",,,1 J)!"OI)(rty: iulhority to iue UId be wed as an ent ity: and contract and tort liability Qf offi· Ctrs and members of tht auocla· t lon. It alJQ prQvidu a ddault proviiion fQr tho 80\"tr~ncc of JIICh wociolotions. It ~ ~ ifn. frally on the 1992 Unifurm Unin· corporated Nul·Profit AssociMion Act Idopttd by the Commiuion on Uniform State Law. and reftrred to Mreafter as tile ·Uni. form Act", The commentary it taktn primarily from the Uniform

332 1 NOIJF,MBER 1994

unincorporated alJOcialion failtd bocaun nQ leglll enlity exis ted to naivo it For ..ampl •. 11 gift of B~k· K re 10 Somtrstl Socilll Club (an unin· corporated. non · profil auo dilionl would fail bec.aUH in ilIw Ihuo ii no ~1.n1ily 10 tt«M! lille. Somt courts in limo beume uncomforublo with thiJ result. Some CONtrued fIlCh a gilt ill! a grant to the officers of the ...-;ocia· lion to hold the "al utate in trust and I1'Io1IU$ it lor the benefit of the memo bers of the auociolotion. Later. sornot Itg· islatures provided varioui I-Olutions. includil\ll trul ing tho auoc:iation for lht'lf purpoKi as an enlily. AlabillTlJ. will .tllow the gift bill the wociation if withoul authority 10 K11 or coowy the rnl property. The Associuion may incorporate and convey the property from lhe corporation.

ProceedingJ by or against an unin. corpontwll$SOCialion prtKnt.d Jimi. IlIr probltmi. If it we .. nOI a legal mlily. u.c:h 0I11Ie members nttdt4 to be joined as party plaintiffi or ddtn. danh. Clus acliQn Mitred InQthtr lppr(NIch. Again. CQurll and ItgiiLi' tu rtl, etptcillUy the lat ter, prQvided solutioni. · SUt and be ,uod" ilatutu found th eir way Qn the l awboo~J of mQJI stalts. In Alabama. the Jtatul~ prOlliding for Klions by ~n unincorpOratw Qr~n;u.liQn or aSJOcialion II al AI". CQat 16·7·80. lind the Jhlute authoriill,.., actiom against. and in the fllme 01. an unincorporaled iISSOCiololion if al AlII, Ct1dt 16-7-tllli). UninCQrpQratod ~5Joeilllionl. nOI being ltgal enlilios. could not b~ liable in tort, contract. or othtrwi!.t for conducl performed in Iheir namu. On tht olhtr hand. their membeu could ~,Courts borrowed from the law of P<',lntTlhip Ihe cQnCepl thai the members Qf the lOSsociition, like paflllfrs. "'Itft co-prirocipais. AJ CO-p'incillali Ihty "'on individuilly 1i~blt, Again, courts UId legislatura, ""pOnd . ing to COIK~rn' o;>f thoir cOnililuenu abQut Ihii result. modified thuo ruin. CQurts fQund that. in large mombe"hip lIMOCiations. som~ mem o bers did oot ha"" the kind 01 conlrol fI( P<'.t ldP<'tiQn in Iht decision procul Ihlll mllde it rUl-Ornlble lind fai' tQ >'irw them ill co-princil)l.is. "'~tu"s also took ,ttps. rtrhapl rn(I$l stri~il\ll 1m the S!.lliutes ~ed in many l!.lItH in the lut dtcade e.,uJing office", dirtctoTl. m.mbe .. , and V<lluntun

_L ..... _ .....

.. _ ..._......, "'"--YCC--" Jr.

1oO;O;Ioy. Jo

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THE AlABAMA lJIWVf.R

ar nan·prarit arganintians fram li"bility 'ar ,imple negligence. There is grnt vuidy in the ddllils; II few slitutu condition the immunity an the '»Ociation's carryinQ IpprO· pri.te insurance Or q~lifying undu Intfffilli ~nue Code S«tion SOl(c). The AlibimI SlitutH m' at tUo..lI-J and 6·5·336 Ind Qrlnt immunity, respectively. to uncompennted "offietn" for 111 but willful mis· conduct whue they lct in good faith and in the scope 0( omcill functions and duli.,. Related to liability Is the question af enforcemenl of /I judgment ablained "",insl In unincOrpOfattd USlXiation, its members and its property. If r.,.,,~r than "II members l~ liable in cootriCt or tort, lhe properly that membo:rs own jointly or in common ...." not be ..Iud in rx<:wion of I judgmmt without leYuinQ the inu rnt of tho" who iTe liable from toou who art not. Again. courl$ ..... ing "joinl dtbtor". ·coo."noo property" and ·comman Ill""'" silliutes fuhiooed more workable solutions.Ala. C«it f6·7·81(b), for uamplf, p"""des

Ihil "whe re l judgmen t in such (an) iCtion (apins! ,n unin<;(lrpGntrd org>.n;ution or _i,tion) is fnterrd in r-;.r of the ~inti" apirW such otga.niution or usocialion, the property 01 such ortaniution or usoc:ialion shill be liible to t he » t idlCtiOn of such judgmtnL" Somt legislatures NW Ilso Iddrrued the problem directly. For thnt purposn, unincorpomt.d usociations hiV1i bun trtaled IS I'QaI entitin-like, corporation. This Act deals with .. limited number of lhe major iSluts r.lating to unincor· porated, non·profit ISsociations in in inttgrittd ind consisten t m,nnu. St.otuttS dalinQ with particuLir types of unincorpon.tfd usociations, including thou in Tille 10, Chi pier 4 of the A/(1/>(lmq Cod. ;wi ~ dulinQ with agricultural cooptruiws in Titl. 2, CNptn ]0 of the Ailloo..,a C«k 3.t not "frtcted by the Act. The Am..i"n Blr Associllion first iSlued ill Model Non-Profit Corporation Act in ]964: it wu mosl rH~ntly r~vis~d in ]987. Tile 1984 Alabama Non . Profit CorpOration Act ",as ba",d

on thf ABA Act 01 1964. and deals com· pr~Mnsivdy wilh questions of QoYfrn,nee and membe rship. This Act, on the OIMr 1wH:I. iddTHSfS thHt issUf:5 in II cursory fuhlcn only, lind doxs not lIdcirus other issun such IS the dissolution 01 lin unin<;(lrpGrlleo:i. non·profit usocilltion. Adoption of this Acl wilt In"e olher matters ,,1,linQ to unin. corponUd, non . profit luociaii om 10 the stau', common law Or tn 5tatuttl on the subject. whe rt they niSI, Ala bama hn statules at Tille 10, Chapter 4 duting wi t h sptcial kinds of luocill;{1n5, .uch as churcMs, mul~1 bentfit sociflies, 'rUerRlIl o rden lind cooptruives. Siliulu such as ,41(>. Cod" 16·J·4. d... li ... wilh wnue lor actions IIgIinst an unincorpoultd orianlzation nr iWIICiation., will t'fINin app1icab1t. This Ad lIpptin In att unincorporat. ~d, non·profit associations. Nnnprofit nrQaniutinns are oflen clusl· fied lIS public benefit, mulual benefit or ,eliginul. for purposts of Ihis acl, it is unnecusary to trtal differentl y

ALABAMA DIVORCE, ALLMONY AND ClIILD CUSTODY HORNBOOK TUIRD EDITION by Fe... y A. Dn.

REORGANIZED FOR CONVENIENT QUICK REFERENCE Alabama Divoo:e, Alimony and Child CUllody Hornbook, Th ird Edition, is lhe moll comprehen,ive book on Alabama divot«" llw avai!able. It has l>tcn reorpt1iKd into 42 d ... plers. wina the: practitioner throuaJ! eacll SIll' of the diyoo:e ptncns. LAWYERS EDUCATIONAL PRESS om.., Bo~ t 237 T.ocaloosa, AL 35436 Post

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FORMS

Robert 1.. McCarley, Jr.

o.er 175 pastS of forms m

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cooveni ••l1ly orpni=i with the busy lawyer in mind. Amoni them are new forms on pOstnuplial I&r«m.·ml and uncotl1nteo:i divot«"J. Several forms have bten revised, includini the client divon:e eontrflC!, ~t in coo\<'mpIMion of divorce and property sculemen\.

Aloo Ay.il.ble: LAW O FFICE PRACTICE OESKBOOK, Sixth !lditloclwith IPPPl<'m"". $61.80 {$60.00 plus $1.10, we, JIOI!I&C ood hlndlina . 1'»I!'odct P>ns of tho: Law Ol'lkc P..... tlN Dnlo:bool<, $23.00 ... h ($10.00 plus $].00 In, poslaic ... d

band1mll, Please send me __ copi" of ALABAMA I)IVORCE, ALIMONY ANI) CHILD CUSTODY tlORN DOOK, Third Edition, II $79.40 uch ($70.00 plus S9AO WI, postqe lind h.andlin&). All orders must be PREPA tD. Make ch"k. payable 10 LAWYE RS EO UC ATIONA L PRESS. If not satisfied you may retum the book within 10 dlY' f()l" a full refund . THE ALABAMA lAWYER

NOVEMBER ]994 1333

then lhrtt categorin of unincor· ponttd. non-prol'it lSSOCiltioos. Unlike SOffit mle laws, il is not confined to the non.profit orlaniution, 'ecol' niltd u non·profit undtr f 501(c)(JI. (4) and (6) of the tnte rnal Revenue Code. Thfre i, no prirw:ipltd !>His for nduding any non·profit usoc;at;on. ThtrefOrt, tilt Act COYtrs UnincorpoTlOt· td philanthropic. ,dUCltional, Kientif. ic. and littriT» dubJ; u nions; t rade usociat ionl; political organi zations; cooptralivu; c h u rche,; hosp itals; condominium usociationl; neighbor. hood USO(iltions; ind all other unincorporated. non-profit aJsociuions. TIltir memlxrs ""y be individ ..... L!. corpOrations. 0I1lt. ItQal entitits, or i miz. The Act II duigned to cover a ll d thtw _iations to the ntml po$$ibit. To the uten l tht Title 10. Cha pter 4 of the Code of Alabama ,ond other CAd, provisions dul .... ith ~11ypa; d non·prol'it U50Ciltioos, this Acl suppl.menls exi.l ing legisla. tion. Tht basic approach of tilt Act is that an unincorpOTited, r.on·profit auodl'

tion is a le ...1 enti ty for the puT]l'OWS that the Act ~rwes..ll dots not malIe theH _iitions legal entitiu for III PUfpOIU. II is ldl to tho cou rt, of AII~ to cltttrmi .... whether 10 UK this Act by MIi\o(ly 10 conclude that ilIl ilnocilltion is a 1....1 ."lily for somt other put'p05t. It should be "oltd, 100. thl .. non·pra(it CO<]lOr<Ition or unillCOfPO"'lttd. ROn'profit lSSOClation is not the only choi~. Alaha"" proviclts by stalute for burial societies throogh the means of a charilible Irwt under Ala. Ctxk H t 116·12 thrOUlih 11.17- 15. It should be emphasized also tNt thil Act is needed for the inlo rmal non_profit organi· n l ioni thu do not hvt Itgal ~ and 50 may not consider whether to incorpoTlOte. New AI.INITnil Code IK/bllsher Reprue"lal ive Jim Campbell. president 0( tilt ~ ~w Imtitute and CNir d the Lt.i,lati...., Coorw:il of Ihe Legi,luu re. announced t ha t LawyeTJ Co·op ha d submitted the 1~lt bid and will become the printer

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334 I NOVl-;~IBER 1994

of t he Alabama Cod~ beginning October I. 1995. The cumnl code books will conlinue in use with lupplement5 and n.w repllcemenl volumes ift .. October 1995 bei"'l wpplied by u....yrrs Co-op. Currently. I full set 01 the Codt ....ith supplements cosu S638. The new con t ra~t pr ice to pu rchase i Cvde wi t h Jupplements will be 5295. Current supplements are 592 per year. wi t h the new price t o be S43 per year, Repllcem , n t volu mu presen tly lre $30 each; tht» now wi ll be Sl2 per volume. Lawyers Co-op williiso be offering the COOt CD ·RO~I for In initial price of $895 with updates of $495 per year. The CD-RO~I will 100 include the Admmis· till/a. Code.

Tht dirtetor oIlhe Lt:IIisbtivt RtftrSer.ict. Jeny Busttt. will contino ue :as Cvde Commiuioner. r or furthtr i"formation. conLld BOO MtCurley. Alabama Law Insti t ute. P.O. 80. 1425. TuscllooJl. Alaba mi 35486, or cill (2051 3(8-7411. fu (2051348- Soi ll. • t11tt

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THE AlABA/oIA tJlWYER

ABOUT MEMBERS, AMONG FIRMS ABOUT MEMBERS Melody S. Brook. ~nnouncu the opening of h~r office .t 117 S. Rou Sired. fI~n;n. Alabama 36264. Phone (20S) 463-7805. Lany R. Mlnn announces the relocation of his office to 70] New South Federal Building. 215 N. 21st Street. Binningt\am. A\abaJrn 35203. Phone (2l)5) 32(i.65(l(1. J",,] C. ," larch .nllOunC!'. the relor.-

lion of his office to 3000 ~i,-erchase Gal · l..i., Suite 1111. Birmingham, Alabama

Phone (2051985-36%. R. Stan Mom. announCe. the reloca-

35244.

tion of hi. offICe to 651 Beacon Parkway W~t.

Suite 214. Birmingham, Alabama

35209. Phon. (205) 945-9994. D. Chari .. 11 0h z UlnQunCfI Ihe optning of hi. office at 1506 First Alabama Bank Building. Mobile. Alabama

36602. Poone (20S) 431·6700.

Boon • . Quigley" Engellhaltr an · nounce. that James R. EngelthaJer, for· merlya supervisor of the child support unit of the Lauderdale County Dislriet Attorney's Office i\lld law cleTk to Senior U.S. Di.trict Judge E.8. Haltom. Jr .. became a m em~r of the firm July I. 1!I94. Office. are located at Pirst Fed.",1 Building. 102 S. Court Strttt. Suite 314. PIOTenCe. Alabama 35630. Phone (205) 760·1002 . T ingle. ' ''urvin. W.toon & B. I.. announces that I. RipOn Britton. J r. has become a shareholder of the firm. Offices are located at 900 Park PIa," Tower, 2001 Park Place, Norlh, Bir· mingham. Alabama 35203. Phone (205) 324-4400. Pierce. Carr" Alford announc .. thai IV_ Pemble OeLuhmei has joined the firm. The mailing address is P.O. Box 160-16, Mobile. Alabama 36616. Phone (205) 344·5151.

Anita Tllcker Sm ith and IUyford L. Etherton. Jr. announce the formation 01 Elherton Smith . Offices are located at 31 N. RO)'al Stred, Suite 1506. Mobile. Alabama 36602. Phone (2OS) 432-1636. Boyd F. Clmpbell. Patricia O. Warner and RO)' E. ''''cBry.. announCt the formalion of Campbell Warner McBryar. L.L .C. Officn art located at 4 162 Carmichael Court. Montgomery. Alaba· ma 36106. Th~ mailing address is P.O. Box 230238. MontgomeT}' 36123-0238. Phone (205) 272 -7092. 244·7007. S. Mark Bllrr, formerly ,enior slaff attorney with Protective Life Corpora tion. has joined Common.... lth Land Title Infunnet Company. Olfie..... located at 1300 Parto..'OOd Ci rcie. Suite 580. At lanta. Ceorgia 30339. Phone (404) 952·1146. Burr;s a 1!i91 admittee to the Alabama State Ba •. Llw Omen of L.wi. W. p.ge. Jr. announces that Lang. Clark hu become

Ole .. W. Adlml, III annOunCeS a

change of add"S$ to 529 Beacon Park way. Wut. Suit e 213. Birmingham,

Alabama 35209. hw Officu of Marion P. Walker ",moun,.. a change of ,ddrMS to 2{)()(l. A SouthB ridge Parkway. Sui t e 406. Birmingham. Alabama 35209. Phone (205) 871·5355. Toni Willing.... m Thont.>$ announcts the optning 01 h~r office at Suite 110. Downtown Plaza. Cullman. Alabama 35055. Phone (205) 737-!I940. Donna Wuson Smalley announces the r.location of he r officu to 60 1 Cre~n.boro Avenue, Suite lA, AI.ton Building. Tuscaloo5a. Alabama 35403. Phone (205) 758·5576.

AMONG FIRMS B. lISouth Telecommu n lnliono an· nounce. that •..,i ch.el Abbot! Tlnn .. has joined lhe company. with offices at 675 W. Puchlree Sireet. NE. Suit e 4300. Atlanta. Georgia 30375-0001. Tan· ner i •• 1976 admine. to lhe Alabama State Bar.

THE AUl8A.'-IA UlWYER

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NOVEMBER 1994 / 335

an associate. Offices are locatfd at 1540 AmSouthlHarbut Plua. 1901 6th Awnue. North. Bi rmingham. Alabama 35203. Phone (205) 324· ]800. ",.. tPoi nt Ste.... ns announces that M. Clayton Humphrieo. Jr. has been promot. d to general counsel. The mailing address is 400 W. 10th Slrttt. 1'.0. !lox 71. West Point. Georgia 31833. Phone (706) 645-4879. liumphri ts is a 1978 admilt« to the Alabama State Bar. Teny Carlisle« Associate. annolHlcu a change of address to 1621 Pinson Street. Tarrant, Alabama. The mailing addren is 1'.0. Box 170766. Tarrant 35217·0766. Phone (205) S41-4063. Th. Trust ComlW'Y of Stem., Agff « !..tach. Inc. annou"""s that Kathryn W. MI.... has joined as president and CEO. Oflku are 10000ted at 1901 Sixth Artnue. North. Suite 2130, Birmingham. Alaba· ma 35203. Phone (205) 716-2680. Glanrot h « Anodal .. announces that Joseph P. Van fleut, formerly law derk to Honorable W. Harold Albritton. U.S. District Judge for the Middle Dis· trict of Alabama. has become associated

\IEDlCAI./DE'TAL .\lALPRACnCE EXPERTS

with the firm. om",. a~ located at 615 S. McDonough Street. Montgomery. Alabama 36104. The mailing address is P.O. Box 910, Montgomet}' 36101·0910. PI\orn: (205) 263·9900. McDon ald Lan d « Oil , Inc . announces that Kelly McOonald Jordan. formerly of Lanie r. Ford, Shaver « Payne of Hunl>vi11e. has becoom associ. ated with the company. Offices aTO located at 1705 Cusmus Drive. Muscl . Shoals. Alabama 35661. The mailing address is P.O. Box 68. Florence 35631. Phone (205) 383·8655. Co l~uett & Allocialu annOunce. that Virgini. F. 1I0llilbr. formerly with Woodall & Maddox. has joined the firm. Offices ~re located ~t Chase CorpOrate Cenler, One Chne Corporate Drive. Suite 205. Birmingham, Alabama 35244. Phone 1205) 987·1223. Mich .. 1 J. G.mble announces the association of Amy M. Shum.ate. Offices are located in the Attorney ProfessiOf\/lI Bunding. 200 E. ~lain Street. Dothan. Alabama 36301. Phone (205)793·2689. lI.nd, AnncLali. Bed,ol., Gn",~1 « Johu lon announcn that P.t rida J. Ponder has joined the firm. Offices are located at 3000 First Na t ional Bank Building. Mooile. Alabama. The mailing address is P.O. Bo. 123. Mobile 3660 1. Phone (205) 432·5511. T""mu Troy Ziem.n. Jr.; Jerome E. Speegle; Thomu P. Oldweil...-; Robm Gerold h ckson. JT.; ~nd Anthony M. Hoffman announce the formation of Zieman. Speegle. Oldweiler & Juluon. L. L. C. Officn ire located . t Fiut National BanI; Building, Suite 3200. Mobile. Alabama. The mailing address is P.O. Box 11. Mobile 36601. Phone 1205) 694-1700. The Unn..... ily of Abb.>.ma Scbool of !.low announce, that Cynthia ~ Almond has been named director of law d(volopment and alumni relatiom. Almond served as assistant director for annual giving since June 19'93. She WM admitted to the Alabama State Bar in 1990. McGlinchey St>fforo !.long announces thai Elena A. w..-oy has joined the firm . Office. are located at 643 Maga~ine Street, New Orleans. louisiana 701303477. Phone (504) 596·2865. Lovoy was admitted to the Alabama State Bar in 1987.

336 1NOVEMBER 1994

Otto A. Thompson. Jr. announCfS his reassignment in October 1994 to t he Dosilion of counsel. N.~ a l Re giona l ContTlding Cent.r. Washington. D.C. lie previously served ~s counsel, U.S. Naval Regional Contracting Center in SingapOre. Thompson was admitted to the Alabama State Bar in 1979. lIarrl s « Brown annOunCes that J. Mic ....1 Cooper has become an associate with the fi rm. Ollicn are located at 2000A SouthBridge Parkway. Su ite 520, Birmingham. Alabama 35209. Michael W. ClTTOIt and B. $cott Tyn.. formerly with Yearout. Myus & Traylor. announce the formation of C.rroll « Tyra. Offices are located at the Frank Nelson Building. 205 20th Street, North. Suite 615. Birmingham. Alabama 35203. Phone (205) 328-2600. The Law Office of Ceorge A. 11'.. _ "MY. Jr. announces that Carol L Griffith has become an associate. OffICes are located at 1452 220<1 A,""nue. TWCilloosa, Alabama35401.l'hone (205) 345·2272. HardwM:J<, Hause & Mgresl anoounces that Tin.o. Whltehud Sta"'~ formerly a law clerk for Justice Charles Thigpen. has become associated "'i th the firm. Offices are located at 212 N. Una 51r«t, Dothan. Alabama 36303. The mailing addrt~ i, P.O. Box 1469, Dothan 36302. Phone (205) 794-4144. The !.low omco of Hona G. \\1Uiams announces that Courtne» R. Polt""ff has associated with the firm. Offices are located at 125 S. Orange Avenu e. Eufaula . Alabama 36027. Phone (205) 687·5834. Auburn Unn"ft"fily announces that I.ft Ann.trong, a staff attorney ~inc~ 1989, has been appointed acting gt .... ral CO\lll$el for the Univernl)'. effective October I. The Al a b~",a Statt Banking Departmnt announces that former Deputy Attorney Ceneral Scott Corscadden has bun appOin ted to the department as legal coull$el. Offices a~ located at 101 S. Union Street, ~lontgomery. Alabama 36130. Phone (205)242-3452. Johnston, Barton, I'roc:lor, S... dlaw « /"Oaff announces that Spencer A. Kindenn.n has become associated with the fi rm . Office. are located at 2900 AmSouthlHa rbert Plaza, Birmingham. Alabama 35203·2618. Phone (205) 458· 9400. •

""come

THE ALAliAo'1A LAWYER

BUILDING ALABAMA's COURTHOUSES MARENGO COUNTY COURTHOUSE By SA"IUEL II. RUMORE, JR.

rh~ (ol/ow,'ng ronft'nueJ "his/Of6 of A/o/xtma's counl6 courthouses-Ih,i, origins and some of the p<wpl. who

coolrilJul«i /0 Ihtirgroo.'th. 1M: """",,_ /Au'll" p/(Jt1$ /0 nm one roun/g's 110<71 in etJd> i$Wt/ of 1M magazirw!. If JIQU MI.." anN pholO(1raphs 01 eoTl, or prlstnt rourlhwus. pieose (onc,,,d l!rem 10: Stlmu,1 A. Rum,,". Jr.• <'figliQllico & Rumort. 1230 Bmrn Mmx T_. ~ in{Jham. ~ 3S2rll

MARENGO COUNTY

I;' II

mngo Coon~AI"balN. 3 WI~ in ~il central Lik! itJ neigllboring Blick

C(lUntia, tho ....1 in

~It

~mI .

go ii Qu iu rkh. How.ver. unlike 50 mlIny or iii nfighbor., ,,'110" bt,in . nings art linked 10 Al abaml's Indian history and Anglo pionnrs. Iht sourCf of Martna:o County's name and the ItO,), of ill fa, liest seu lers aTO uniqu •. The hislooy 0( Martngo Coonty begins ... ith Iht end of Iht Napoleonic ••1. Napolton niud power in FnnCf in 1m, ltd his mtn through nllmtTOOS cam~grI$. eor>CIUlml much q/ ...'Utem E:urope. and wls finally deltaltd and tlCiled in 181£ Many 0( his former geMr· ~15. rourtitl'$lnd political '~ppOrttl'$ ned i'TaOCt and came 10 Iht Unittd SLlles In SUTCh of ~ ntW life ond to ood ~Iribu· lion at Iht tw1ds of Lou;'; XVl II.1ht new ruler. A number of Ihese diMingui.lltd rtf1.li«S found tlltmsdllts in PhiLldel · phi;. during Iht winkr of 181&.1817. 'T1IeH French UplOlri.I.> sought 10 establish I Fnndl colony somewlltrt in tilt Uniltd SLltn. They Hnt" rtprestn· Llth'f to Congress _king a lract of LInd for Hll ltmtn!. Perhaps dut to tM tarly TIlE: Al.I\BAMA LAWYER

Frtnch influence at Mobilt. Or dut 10 tilt tximnct of Jormtr F~nch outpostS. such lS Fort TOIllbtcbte in pusmt>(]ay Sumler County, a d«isioo was m"de t .... t Iht coIonislJ could Hille nU.r Iht conflutnce of Iht Warrior and Tombig· btt rilltTS in the Alabama Territory. On March 3. 1817, ConQrtss IIran ted the French exiles four IQwnship •. The rrmchmtn formed a COTT'IplITI)' which has betn variously until lhe Society for the Cultivalion of Iht Vint .. nd Olive, the Fnnch Agricultural ;and Minufacturing Soddy, Iht Tomb«bft At.iocWion. the Prmch E~I Association. and, simply, Iht \"1fIt ;and OIiw Colony. Iii JlUTJl'OK was Iht cultiv.ltion of grapt$ iIIld 01""", al their . - homesteads in Amtrica. The French tmigrants, ltd by Count

Charles Lefebvre Dunouett.. , .tl sail from Philadelphiil in !>by 1817. Thty ..... rt almost $hipwm:]u,d in Mobilf: &y, bul wert .. bit 10 trivel ul' to St. Stephen's, tilt territorial ",piLlI, ...'hid! __ ;at the lItad 01 nWigition during low walU lim ... Thtn Ihtir good. Wert lransferred 10 fllot boats. They eventually Ullblishtd Ihti r settltment at tht Whitt Bluff, on tilt . ",Iem sidt of tht Tombigbtt Ri ver. NOVEMBER 1994 1337

To ....y that the French seuters we~ unprepared for thei r new hfe in th e Alabama witdernus is an understate · ment. Th..., people were ;occu:;tomed to the urban conditions of Paris and Phil . delphia. They had no wagons or anim;ol team •. yet th e ir fa rmlands had to be cl eared of an immense for· nt. Unfriendly Indians occupied the west .ide of the rive r. Despite th e primitive conditions, they clt4ffll the land, built cabins and proceeded to plant their vints and olives, The settlement at the White 8 1uff became known as ·Oemop<llis"-Creek for "the city of the people". In early February 1818, t he Alabama h rri toria l Legislature created 13 new counties, add ing theu to the seven exist ing coun ties of Alabama that had been a part of the Mississippi Terr itory , On. of t hese new counties embraced the French ..,t tlement. Abner li pScOmb. a legislator who would later bKome a member of the state supreme court as well as chief justice, sug· gested the name · ~laren · go' fo r th is county. Marengo was one of Napoleon's greatest victories against the Austrian army. The batt le had talten place On June 14. 1800 at ~larengo in northern Italy, The presenct 01 the French in Marengo Coun· ty led to 5(,Ime speculation about their trut purpOse. Rumors circulated that the Funch refug ... we re an advanc. party with the goa l 01 establishing a Napoleonic Confederation. There were also rumo rs that Joseph Bonaparte. Napoleon's brother. WI,)\lld one day <:(Ime to America with his objective to become King of Mexico. None of these rumorS proved true. but Congress. seemingly in reaction to them . set relatively harsh terms fo r the French uttlers in their

338 1 NOVEM 8ER 1994

land grants. Titl. to their lands would not pass from the United States to the French until all contract terms by each • ettlor had been fulfilled through the cultivation of the grail< and olive. To compound the problems of the

French settlers. an official government survey established that the lands which they had clearW and planted "-ere locat · ed in the wrong township. Their settle · ment was not in the French land grant. They were fo rced to ffiO\'e to the lands originally a.signed to them. and the homes they had built we .. quickly

claimed by Ame rican •. The sdtl e rs moved a mile to the ust where they founded the village of Aigleville. This name referred to Napoleon's standard . Or ensign. the eagle. The Prench ~re lorced to m<:>.-e once again when it was later detenn ined that Aigleville ",as .till not a part of their lands as shown by drawings at Philade lphia. They then mO'-'ed to northern Marengo Count~ on the south bank of the Warrior River at a place t~ called A!"C(Ila. This was alw the name of a Napoleonic vic tory against the Austrians in northern Italy. Afte r .everal yea rs it became apparent that the Vine and Olive Colony was a failu re. The wil and climate "'... not suitable to those commodities. Many settlers were forced to nil thdr lands to America ", who brought in slaves and cul t i,'ated cotton. Some of the French left for Mobile an d New Or luns. After the death of Na""lffln in 1821. wme ,,-ere allm.-ed to return to Europe. In 1823. Count Oesnoueltes learned that his wife had received pe rmission for him to reside in 8elgium. On his return. his .h ip was wrecked off the c(Wt of Ir eland. and he was lost at sea. The direct inwl .... rnent of the French in Marengo County was short - lived. Hm.~ r, their innuence I""" 00 today in the names of Marengo. Domopolis and the county uat t<Ml1 ofUnden. When Marengo County was created in 1818. the te rritorial act establishing it designated the ·White lJIuff' or such place contiguous thereto as might be deemed proper as the place for hold ing cou rt. It has already be en recounted how the White Bluff was later renamed "Oemopolis" by the ea rly French set· THE AlABAMA LAWYE R

Iltrs. Thus. Ihi. nt~ !>tarm lhe first lel'Tilorill county SOl. TIlt first court __ held ~I lhe homt fA Smloxl [ ....dey, and was presided OYt r by Judge John l.ockhart fA McKinlty. Ailbama. Wlltn Alabama achirvW ilalehood on December 14. 1819. ~ le gi .lit ivt ict also p'O\'ided th~t the hOuR 01' Mr$. lrby on Ihe .ou th ,ide of Chick ..... w IIoIIIC: would b. the tempor.r.ty sut 01 justice in Marengo County under Ihe new Sl.lle govemment. Mrs. Irby's hus· band. James. had betn one of the origi· nal french emigrants. In d they had "tiled on top of i hill approxim.otely ont milt north fA th.t prutnl Mlrmgo Counly Courthouse sile. Irby tu.d died on October 10. 18]9. barely two months brior•• tatthood WIS IChitvfd. The following yeat. on ~cember 6. 1820. rove commissioners were appoint· .d 10 select a site for the pe rminent county sol The oamr act Sdtin,Q up this commission proo..icIed tNt th.t "'Town 01 Mlrmgo" would stl'Yt IS th.t nut tenr poAty sut fA ju5tict, iJ1d ~I th.t county would levy a tax sufficient to purch.lst or trW a ptain log courthouse. The lown of Marengo was cenlrally louted in Marengo County, and had btm Nmed for th.t counly. Abner LiltKomb. who had ori,inally suggesl.d lhe niIl'Ie ' M.Junco" lor lhe county in 18]8, likewist proposed a new French· retated norm for the ttmporuy county out at Maungo. He pul forth the nome ' Hohtnlinden'. which was I battle .ite in 8avar;a nOI fir from Munich. Th. French ,entril Mortlu had defealed Austrian Archduh John Ihere on December 3. 1800, The name of the town __ I.o.t .. $hortened to lindtn. On Aujlw;t 22, 1823. the <XImmission· en met al Linden 10 stlect Ihe sile for th.t M.Jrengo County Courthouse. They choK the southtast quarter fA Stction 32. Towmhip 16. Ibnet 3 East which __ in !.indtn. A IttislalM act ~d on Dt«,,*,r 17. 1823 II'I'Ointed commiSSiOOtrt to stll md convey town 00 in order to er«l public buildlnl[l at the county Kat. Otspite this au!horiution for its conlIruction, a ptrmantnt coul'lhotJK __ nOI imme diat.ly buill In M,a rengo Counly. On M.Jy 25. 1825. I new com· minion met ind d"ided to build a <ourt houn. PropOuls were received and adopled on November 7. 1825. but

TI1EALARA."IA LAWYER

it wu not until s.,plember 1827 thai th.t buildint __ comp/dN and xup/.-

.d by the county. The builders for this firsl true court· house In Marengo County ....'1Ir. Smith and Warnu. They buill I IWO-SIOrylog Itruttur. and wtre pa.id $3.500. This building Krwd Ihe counly for mOrt tlwI20 yUrt unlil il w;u deslroyed by <I Ii... in 1m. A new building. rTlOft appropriate for the prosperity of !obrtngo COUnty......as

const ructed in 1848 at Lindtn. Th i. buildint still stands lod.I.y lit th.t OOmtT 01 Wtll Clhahi lind Mobile wens. II was named 10 the National Register of Historic Place. on lanuaryl8. 1974. According to the Nali onal Regisltr inventory. the old courthouse at lindtn II I IWO' llory nCllngular Itructur. with a slucco ficIdt and a bridr. atm· Or on the remainder 01 the building. II hll I portico futuring two Doric columns. A stcond· slOty balcony <XIn· ntca Ihe columns wilh the walls. and $lain at either end 01 th.t porti<XI lead up 10 the bilcony. There ire th ... entrlnen on tho ground floor und .. the pOrticO. Th, two side doors enltt Illfet rooms iJ1d the cent",11Ioor \tadl into the hallway. The w:ond story tontainl the former courtroom which

nrvu as In audilorium loday. This building is significant in Alabama history bmtllK ouaidt its doors the notori. ous trilin robber. Rube Surrowi. WAI kill«l on Octobor 9. 1890. For i short period of lime following Ih. War Belween the Statu. during Rtconst ruction. Iht county na t of Mi rengo County wu mov.d to ~iJ. This took ptaet in 1868. The brick building used IS a courthouse __ originally built in 1S4J u a Presbyteri · an church. During Reconstruction. f«l · eral military aulhoril iu lIationed al ~mopolil comlTllndterN the church building for a courthouM. On Dtctmbor 4. 1869. an XI 01 th.t Ugillillurt again namtd Lindtn lhe county sut. H~r. much controver· Iy arOK (Ntr the ded. ion and an .1,,<;. lion was held to Kille Ihe mailer in 1870. Thret lowns ...... r. considered by Ihe vote ..- Linde n. Demopoli, and Diyton. Linden won the eltdion. ~n became Iht counly lUI . and hu remained the ptrmantnl county sut of Marengo County evtr 'ince. Following Recon.truction and the rttum of the st.t fA justice to Lind,n. the ·courthouse" II Demopolis wal used U i public iuditorium. an open house and an office buildin(. The build· ina Itill standi today on lhe northeasl <XImtr 01 th.t Oe!l'lO!)Olil public square. II i. owntd by the City of Dtmopoli., and is used by the fire dtPllrtmenl. In 1901. the counly commissione.. dtcid«lthat the old coul'lhotJK at !.in· den WII no longu sufficient for th. nttdJoithe county. They decided tNt iI new courthouse would b. built at I site to b. stkct«l. H~r. the lit. chostn was oul.!ide the origiF\llI town limil.! of Lindtn. A la...... uit arOil! and in lhe cast oIMarertgO CounIJl. II til u. Mal/rin. 134

-_ --....... _'" fty ....... .Ir,

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NOVEMBER 19!M 1339

Aill 275. the .tite .up.eme court held tht: county $Old tho buildina: fo, $500 to tht: ~its Aid lIIld Women's Missionary thit lIllY courtllouM: in Mormgo County must be located within the Griginil Society of the Linden Baptist ChuKh. tGlOm limilJ ot Unden. The buildinQ \oW used for church Hr· viets fOf Il"III« thin JO )'tars. In 1947, The county hid prMGw.Iy wtertd intG II contrKt with F.M. OocIson lIfId W.T. Ihe property was ~d to tht: Amrrkin I-bnd ot BmootOll, A1W. rnlI fG' 530.750 for the conslructlon of II court· !loun. but Ihe .i le had not bHn ctrnen. FillJ.ll». ()fI MGnday. January 13. 1902. a decision had tG be midt. Judge Cun. ningham Mftred 10 clGn3te two acu. 00 the SOIJlh" 'ut coI'Mr of hi. lot IG Ihe coun ly, Le. C<:woIJ also offeud a IGt. Two membeTi Gf Ihe comminiGn "Gled fo, ~ Cunninatwn pnjpn. Iy. Two members voted for the C<:woli properly. Probate Judge J.P. """,.ell cut the deciding mit Mist. ~ '" ""'-Coo.ooI,~ ~ in favor of the CoaIJ 101. _~brflrt"l,", and Ihe cOllrthoUH w... built IIlt, e in 1902. The decision to ulocate the courthouH s ile Wat signifiaont beaouse for i ptriod ot lime Uno.kn hid an old town and a new town. The 'Gnstruction site was on ~ lOU~m limit ot the on,inal town lite. WI'IttI ~ COUI'\IIcJu5e wn moved. bu.inn. IctiYity moved with it.

"'COIn"t_ "'"

_"1.koI<II.

this ..a$ a _ gtnel"OU$ offers by

FY~

lor

landowners whou reo maining holdings wou ld incruse in value. The nat yea, ~ town bound· iry was u ltnded south· ward, lIIld tilt COlIrItIGoM was Ihtn IoclUd ~ maI.1y in tilt cenur of tilt new town limits. Following the moYt to '" new C01.I rt· 1IouH. the old court"""",, continuod to stM tht: titiuns 01 Lindtn and Moun· go County. The building wu used as II public iChoot from 1903 to 1915. Aoo. it Ilu Itrved intermittently 1.5 a skat ing rink. !loTle .ia ble. dan ct hall and Nat ional Guard armory. In March 1915.

340 l NOVEMBER 1994

B.B. Smilh. 1\ cont,ined, SOIIring dock t~r lypic,,1 of cOU,lhouse cOl15lru[' tion du,ing lhit tra. Thr building iOO hid II biKrnent and an lIttic. In 1916. ~ CO\l~ was struck by lightning. And. in 1924. the courthouu .uf/ert<.! conlid.,abl. tOmido damage. But. in neither eyent weu court rtrords loil. On OctO«, 14, 1965. diluter . truck tht Marengo Coun ty cOllrthouH when a fiu gutted the old building. .·ortunitely. mo,t ,tco,d. we,e in fi,t·p, oof vaults and were saved. Th. county uctived 5300.000 from fiu insunnct on ~ lou. Pbns weu immtdiotely made for a ntw courthouse on the ume sit •. PendillJl construction, the county took ovu a YlUlnt buildirli, the fonntr Lindtn bowling lIllt}'. for use u '" court""""'. Thil build· ing il now used fur i privale Ithool. The county commi5,Sion. tTS v;littd a number of courthou... in Alabama 10 borrow 1M btst idtaS for the needs of Marengo CGunty. TIley chOist Sherlock. Smith Ind AlbTTlll of Montgomery to clui", the building. c.r. I-bIst.lId of MontgOmery wiS the contrxto, . ThiJ lottst courthouse iJ 1 two· story br ick structure with I banmtnt. II is best ducribed 1.5 contemporlry with 1 subdued ,eference to tht t,aditional by the use of a portico with pill ~rs. The toh l COlt of th. buildi ng W15 S675.ooo. Tht building wu d.diclled on Sunday. September 15. 1968. •

Leiion Ind Veter",,,, of Fouign Wi .... and the building t.amr known as Vdtnons HIli. Tht Town Gf Linden now owns the building ind pJaru aU being formulott<.! fur mlonolion and pos5iblt use as I museum. The new cou,t houst Gf 1902 was I two·story brick and SIOnt structurt of Romantlqut duiQn. The architect was

The autho, acknowlt<.!g.. the _istuIeC 01 Circuit Judge Cloud D. Ntil$OTl /0, information used in prepar· illJllhiJ lIrtiele and for obliining ilI\i1. tnotiom. SOU,Ctl: A. DirtclOr, of Marengo Count, fQr J8fj().61. W.C. Thann. 1861: Hi$lo r, of Ma rengo Count,. Joel D. J Gnn. 1956: DedicatiGn Brochure . Martngo County Courthouse. 1968.

THE AWlA."1A LAWVER

BAR BRIEFS • The Public Se"ice Committee of the Birmingham Sar Association recently recognized the firm of Ba lch & Bin gham for ..ce llenee in its corporate commun ity work. The firm, which has been nom inated by lhe Assod ation for the national Points of Light foundation E~cellenct in Corporate Community Service Award, wa, re cogniud for it, programs with PATH. ill adopted school. Banks ~I idd l e School. and the Boy

Scouts Explore. Post. The PATH assis-

tance programs serve homeless women in transition. the Law Explorer Post ;. the la.gul in Bi rmingham, with over 100 stud ent.. and the fi rm has established many prograrru for Banks ~liddle School. • Edward J. Ric. , Jr.. a partner with the fi rm of Adams & RetH in its Mobile office, i. the new pruident elect of the International Associatiun of lkl~n .. Cuun~el. The IADC il tht

uld .. t and la rgest professiunal associa· tiun ul defense t rial atturn ey. in the wurtd. • Ed g.r M . Elliott . III reoently W<lS inducted as a Fe lt ow olth< Interna· tional Academy of Trial Lawyer>. Elliott was nominated by William J. McDaniel of Birmin gham . Elliott is with th e Binningham firm of Ri''el & Peterson. and a graduate of Birmingham"South. ern College and the Unive .. ity of Alabama School of Law. •

Position Available Associate Director, Alabama Bar Institute 'or Continuing Legal Education University of Alabama School 01 Law The AIotxrno Bar InsliMe for Continuing Legal EdocOlion <ABlClE) provides post--graduate programs of

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50 seminars a year aod publlsl1es a vaflety of instrucllonai moter'o::lls for the IeQoI professlon, Theossociote director Is responsible for the planning . development. impIementotioo and evduOlion of the A8jCLE's programs or.d put>IIcoIIoos. The programs of tile ABtCLE are presented throughout Alabama tIlus. eldens/ve TrOV~ Is required Condidates for the position must possess a Juris Doctor or comporable degree /Tom an ABA-occredifed

krw SChOO and be admttted to practice by the Alabama State Bar. This position requires a person with demonstrated excellence In oral and WTitfen communlcaflon skiUs, The successful cor.didate atso must be highly motivated. Innovative and a setf·starter who has a talent for effective organization and pas·

sesses excellent human relatlons and creottve tIllnklng skills, The salary range Is S28J;OO to S42.990 depending upon abUity and expe1lence. The Unlv~tyol Alabama also offers an attractive beneMs package. Send I9SUmes. references aod SOCIol SElCuity no..mber to: A$$OCi(Q

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The Unlwmlty ot AIobomo 1$ on fqt.lOl OppoItunIIy/ A1IInnatIv. Aet/otI fl'/'lPlOyw. Won-I end m/ncNItIfu ' " ~ 10 oppIy.

THE AI--\RAMA lAWYER

NOVE MBE R 1994 / 341

OPINIONS OF THE GENERAL COUNSEL By ROBERT w: NORRIS, general counsel

It 11

"''''"u,..., OnHr """ItOYfming of .. , -the

'Judic~1 ' 'TO ON, Circuit

IN.nrM:. in which indig~nt dd.rwbnl$ 5holl III r.prtKnttd b)' appointment. Tk prior procedure "tilind in lhe Circuit was 011 I voluntary basis.

~ntu~d iIJ1

Tht new proced" •• Jubj.et.d i I.rge numbe r of l.wy." to IMse Ippointments who do not desire 10 reprutnt Indigents, and who would likf to ethically shift tllti. rnpoosibility to ~r~T.

"My ~Iion is as follows: Would it bl dhiQ,11y ptrmWibl. (or Ilwyr. A 10 onlt> inlo I (,mlrac t with lawyer B, Or law lirm 8, whertby liWYU A would lIttept and agret 10 b. sub,ti!ut. eDunnl lor lawyer B for I negotiated monthly Or annu.1 sum B would pay to A for A'J ne ki ng

substitution of eDunstl for 8', indig.nt IIlPoinlments? Th. nogolialed sum would not b. on i per Indi~iduil CUt bull. but would be I lIentTal ~ontr~( t . A.. um~ furtht! tluot A ,",ould file I I'tf Dulullion for work ht did on Ihe cu~ without deduction of Iny of Ihe

WE SAVE YQUR TIME ...

ameli L E G A L Research

Now ~gal roc.",h ISSU.uonce i. ,." Iablt ",.I\tn you 0«<111.

... ,,!\ou, lilt n«t hlly of lI<ldln~.

full· llm< as_l .. e ()(

ckrk .

W"h """SO 10 ,lot SUIt Low Lobr3ry and We>ll..... .... provtdc f.>I and trr", .." • .......«. For dudhnoe .... or\;. " 't tin <ltl"'.r Informallon 10 yoo vi.>.ommon CI ........

I'roc,..1 Ex~"". '" FAX. 1'."",11 Ltg.1 R<><:arch . , amll>t, I"" i..... ' lhoroulhly thrOlllh qu.llty ",,'•• rch. britf ""''''"1 and .n.l ysis.

Duo- .. Its :orc 533.00 pt. bou •• ",'"h I 'hltt hour

mInImum. For Research Assista nce conta ct; Sarah Ka th ry n Farn e ll 112 Moore Building Montgomery, AL 36104 C.lI (1031177.;7')17

"' .... __

,._"''''~<I'''""",_,,c.

'~"""~<lIIgoI_

342 1NOVEMBER 1994

..b 'ied

b"edlll'_~

contflel lImount plid by 8 to A (or nrvicu rendered by A aft u the Court lIppoints A lIS the Ddendlnrs Ttp ru.nlllliv~. Anume furlher th~t B dotS not file I Ftt OKlanlion with lhe Court for """'<MIl. Ind A dotS not incl~ III)' of 8's time on A's I'u D«1~ration. The PUfPO$f of the «1111 .11:1 enlu.,d into is for A 10 handle B's tISt load of indigenl appo;ntmtnu. "-nd A n«ives I flat ntainer from B to Ht'Yt as SIlbstitu\t eoullHl for B. indo ~itioNlly, A net"'" CO<nptnSoOlion from the Statt ill' appoint"" coullHl under his appointmmt without rtjI.rd to the ~nts ~id by B under theA.BconIRcL "TIlt provision of I.S(f) lpelks 10 Ihis &Tta, but it is not sumclenlly clear for me 10 act on comfortably. ! ha", had diKuui01l$ of an offer of emplO)'menl soch ill' I ha", dncribo:d, and both sidts wanll wrilltn opinion from lhe BItT befoft "'n' luring further in this rtjI.rd."

111 •

SSWER: There do notappeu to be lny dhitotl prohibitions Igainn this p,opOsal provided approval of lhe appointing COIlrt is obutintd prior to implementing Ihe contract and prior to substi·

tution of COIl""'!.

J l lSCUSS IOS: As SIlII"" in your opinion request. the ~thitotl consirkntions irwolYfd in ilC«pIlInce of a fu by lfl attorney appoinlf<l by \tit court to .~pru.ntan in dillent criminll dtfend.nl aTO addrtSHd in Rule 1.5(f) of lhe Rules of Profusional Conduct . That rul. provides in pertinent P<trt as follows: Without prior notification to and approval of the ll!J>(linting court. no laW)"!:. appoinled to .tpreHnt lfl indigent erimi.w rkfendlnl shall ;accept III)' ftt in the mltteT from the defmdlflt 01" anyone on lhe deftndlflt's

be:hIlf. The language of this rule indicates lhat the only wndilion prectdent 10 indigent trimin.1 defenlt couM.1 Iccopting a fcc f. om a third party is not ification and approv,1 o( the IppOinting ~ourt. It is. therdore. Ihe opinion o( the Disciplinary Commiuion IlIlIl lin lIltomq or law firm lTUIy poty lin lflnUlI or monthly fe~ to lInoIh.r lttomq to h~ndl. all court lIppointed indi gent trimin,l uns to which tht atto . nty o. firm mly be appoinled. provided Ihe appointing cou rl givti its cons.nl prior to execut ion of Ihe contraci btl",Un Ihe attorneys or firms and prior to SIlbititution 01 coullHl. Pltase be Iwlre thll Iht Jtlle bIT hllS no j u.isdiction 10 addnss the quution 01 whtther this propogl mI)' be in violat ion of IIny stltUtes. procedural rules o. lonl rules of court .dating to indigent reprewntation lJId ....., up. w;ly makt no dd ...ninlltion in rtaard to.uch iuun. •

IRO·91 ·341 THE ALA8.AMA ~WYER

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PpropriatioN are

~ntial

to the

oper~tjon

of Alabama state gov-

~m""'nl.

The Alabama Constitu-

tion stales: "No mooey sllall be paid out

of the trtasury t.cepl upOn appropriations made by law ..•.". The appropriation bins e""ct~d by the legislature are the culmination 01 a lengthy pr~'" that inV(lI""s the uecutiw and legislative deparlrnitnls of stat. gowrnmenL The 5leps in the budget

process are spelled OUI in detail in the state constitution and in the statutory

tiIW of the stat •. The Govemor's budget The process is initiated by the ~tM <Wp;lrtmenl. The Constitution pT\l'l,;~ The governo. Shall. from time to

time, give to the legislature info.malion of the ,tate of the govern ment, and recomm end for its COII$ideration such measures as h. may deem up.dielll; and at the commencement of each rogular ..",jon of the legislature, and at the close of h;' term of office. he shall give information by written meso sage of the <XIndition 01 the slate: and he shall a«ount to the legisla· ture, 3$ may be prescribed by law. for all rrooneys rt«ived and paid out by him Or by his order: and at the commencement 01 uch regular $6Iion he shall prestnt to the legis· lature .slimatn 01 the amount of mont» required to be raised by lax· ation for all PUrposo'5.'

The Budget end Financial Control Act The governor's report and recom"",n · 344 ! NOVEMBER 1994

dations to the legislature are formul.ted through the statutoI)' budget proc .... The Bu~t;me! rinancial Control Act of 1932' requires the governor. within five dal'S after the <XInvening 0( each regular session of the legislature. 10 trarumitlo the legislature his budget for the ne.t fiscal year.' The budget corui,ts of three parts: (1) the budget message in whiCh is set forth the governo .. s fKQmmendw .xpenditures and the funds from which such expenditures are to be made: information on tho tondition of the trusuf}' and estimate, 0( revenues for the budget year: and recommended r"""nue mea· sures if the estimated r"""nun for the budget year are less than the il»pfopria· tions: (2) the g()\.~rnor's recommended appropriation. from each fund, ~neral Of special. for the departments, agen. cies. and institutions of ,tate govern· ment; and (3) a pl"OflOWl appropriation bill and a propoSed r"",nue bill for the pUrposo' of enacting the governor's ret· omrmn<lations.' The budget process begins with the preparation by the budgd di'lision of the department of finance of a tentati~e budget for "every departmont , board, bureau, commission. agency, offi"" and institution 01 the state .... Each depart· "",nt is required to submit an estimate of its expenditure requiremt'nts for the budget yea r to the department of finance. such information to be fur· nished thrn months before the begin· ning of t he regular session of the legisl~ture .' The department of finan<:e ;s required to prepare an estimate 0( the total income for the budget year.' and utilizing the estimates of .. penditure

requirements and tht estimates of in<XIme. the department of finan"" pre· par.. a tentati"" budget which is sub· miued tothe governor! The go-.~rnor must then make provi· sion for public hearings on the tentatiw budget at least two weeks prior to the conwning of the regular session of the legislature_ .. After the public hearings. the gover· nOr nnalius his budget which is sub· mitted to the legislature after th e legislature <XInvenes in regular session. " It should be notw that the Budget Isola· tion Amendment " requires the gover. nor to submit his prOpOSed budget on or before the serond legislative day of each regular S<l$Sion of the legislature. The Budge t " _nageme nl Act In 1976 the Budget Manage~nt Act" undertook "to establi,h a comprehen. sive system lor budgeting and financial management which furthers the capaci· ty of the governor and the legislature to plan and finance the services which they determine the state will provide for citizens."" This statute reaffirms the governor's respomibili ty lor th e preparation and administration of the slate budget, for "the evaluation of the long range program pl~ns: and fo r recommending to the legislature a "comprehensive program and financial plan which shall cover all estimated receipts and expenditures of the state go-.~mmtnt" with the proscription that "p~d .. penditures ,hall not exc .. d estimated revenues and reSOurces. "" The ~porui bility for the preparation of the budget is vested in the depart · ment of nnan<:t ," and the various slate THE ALABAMA LAWYER

agencitJ and delVrtments ue directed to furnish financial Information to tM dep.artment 0( finince in order th.it it TN)' carry out its responsibility." ~ departmenl of finance submits to the iIJ'o'!mof a SUlllTrliry 0( tM informa.tion .... hich il hu compiled from the Ilille departments," and 1M /lOYtmo'lr formu11105 his pr08f1m and financial plan which he il requ;ffi! to pruent to tilt legislature on or befo~ the (,fIh legisla · IiV!' d.ly oIta<:h .-tllular ~$Sion," Statutory rUPOnsibility is placed on the legislature to consider the gO'o'erno" s progum and financial plan. to adopt alternal ives to the governor', plan where tM legislature deems su<h awropriate, and to idopt legislalion to M1thoriu the implemmliltion ofa compr.hensiv. program and financial plan,- £.)ch d.partment 0( state gov. .rnment il required to submil perto,· manu ",pOrts 10 the dep.artment of finance for "the work auompli.hed and the IOrvictJ provided," the costs of such, and recommendations for changu in the programs," Th e !l udget Manasement Act did not repeal the Budgel and Financi al Control Act 011932 and thus must be conlidered in purl materia, Th. sub· sUntiV!' ch.inge in the budget proce$S by lhe IJudge!. ~lamgement Act 0( 1976 WII to dfut a Iystem of program rtView and (YlIJ~tion . n ......... nt Improv_t Act of 1992 The nut governor, and sublOquent governors, Ire required to deV!'lop II four·year strategic plan for presenbtion to the legislature during the first legislative ltISion of each tenn of office," The plan shall include the governo"S program, long ranlle re venu e .nd expenditure plans for tilt quadrennium, Clpibl outlay requirements, lind recommendations to reduce the cost of 5ute I/O"tmmtnt," Lefjlillatl"e Cammltt. . on Flnllnce••nd Buda.tl Whilr the I1OYHOO1' iI formulating his budgtt propOal5, the Pmrwwnl Joint Legisbtive CommiUH on FirlinCa and Budgell ..ill allO have conducted bud· get heirings.. This tommiuH"'as creat· td in 1991," Thi5 committn i. authoriztd to nlHt ~urin/l the interim of the regular susions of the legisla· ture,"11 has the rUPOlUibility to make

• ...sv-t ...

TIIY. AI.AJWI1A LAI'.'VER

illative tl$(,lol office, tilt IeQulature h.id

II careful invutiglltion and study of the finaRe'al condition of the state, to hold budget hurings, to inquin into WlYS and ffiWIS 0( tllW'lCing sute iO"emmenl. lind to report its firldings and I'KOIllmmdations ta the legislature not Iii.. thin tM lOV!'nlh Legi5]atM day of uch regular stuiOR," Thus, the governor's budQeI formu]Uion ;and heirings and the legisbture's heir· ing. mllY go on simullaneou.ly, but the prnen\.iltion 01 the formal budget i. the responsibility of the governor," The legillature may, of courlO , amend the IPIlropriation bill. to rentct some or all 01 tM findin8S and retomnwndation.s 01 the joinlJtgislative commiuH,

00 indeptndent source of fllCll informa.· tion and was compJtt.1y deptndent on the HtNtM .xwrtmmt lor diLl. ~Lat· ing to fiscal mautrs. The act cr ... ting the affice further pTOllided th.it tll!ry general bill ... hich requir .. Ihe upenditu," of county or municipal funds, o r decru.u or increasu n~nuu to any county or municipality, mUll h.iV!' endorsed there· on an e.timat. made by the director of tht legillalive fiSCal office of the amount of monty involved and the effect 0( the proposed legislation," t'iKal notes are /1110 required by the House and Senite rulu,)l The purpOK of the f!Kat note is to ~ the iegi,Loture 0( the bill's fu· cal imlVCl. The fiscal note allows the membeu of the Itgisillture to make informed judgmcniJ about J>H$.Og. of legislation requiring the expendituu 01 public funds or tM raisin/l oI ...... nues.

Leal.leU"e Flle.1 Office The le~ture is »<led in f\SCIl mat· Ius by the legisbuV!' flSCll oKoce." The tU<::at oKo« 11M the duty and funttion to provide the legislati~ membe .. and committeel with information mpecting tM budgd. lIlPropriation bills and OIher legi.l.tion as ...~11 as information with rupect to revenuu, utimated fulure r..... nu.s. lind clu.nging revenue candilOons," i'TiQr to the creation 01 the leg·

The Appropn..Uon bills The Con.stitution Jell out the limita· tions on aP\ll'Ollrialioos:

The ~nerlllippropri.tion bill shall embrace nothing bul apprO!>Tiation.s

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fnr the nrdinu)' upensu nf the eucutM, le,iliitive, md judicial dep.utmmu 01 tnt ~,Ior inttresl. on tnt pul>IiI; <kbt, mel lor tho public $d\oob. The SIIary 01 no otfiar or emplo)oH lhlll M incrustd in such bill, nor wll ~ appropria_ tion t.t !TIlde thmin lor ;any offictr or employe unltss his tmp!oyment and the /lnlOOnt 01 hill AlIII'll Iwie Ilrudy bHn proYidHI/nr by law, Alt othu aPllfl)l>ri&tions shall be made by stparate bittJ , each embracing but nne tubjtct,Appropriation bills alloClte funds aVlilable to the Itate for npenditun durin, the tlscal year for which iWl'O' pri,tioN ire being made, Thest /lvlit. ~If fun<b incl...w momua from taus. I,L/lt11CUJ1lbertd funcll in tho stIItt tro· sury, Ind income frOOl otmr SOIJrcu wch III /edfr;ll funcb. /obi. 01 Abob/IrrII.', nvtnut il tlrrTllrltfd for SpfCifl( purpOst,," Ltgillative Ippropri,illions of urmllrhd nvenutS mUlit be fo r the duignatN Purp(lSfs.

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Ectuc. tI_t Tru. t Fund

The sped,1 educational trust fund is a sptCill fund which was CrtalN in 1927 in /I genel'lll revenue bill which levied licm$t and privileif tnts on nilroidl; telfgnp/l 00I\'"IIWlies; ttl~ compll' nits; aprus COIllj).Inies; hydro·dtctric powe. comp/If\iQ; 0011 mints; iron <m minu; qmrrin" ~d lind grllVfI pib; IIHping a. c(nnPlnits; md Kilen of tobacco producu." Act No, 163- provided that the Tt'Yenuts coI1ec:ted from those t.uts ...ould M "set /lpart I i i trust fund for educa· tional PlIfP'JRS only, to be dtsignaltd '" the Ala~ml t!>tcia! educational trust fWld ... and $hall M paid oot by tho trea· sunr on lawful apprnpriations" by the legislature for eduu.tion,1 purposes.Thus. the specitlN nvenues wen OUT' mamd" lor tdlltllional PUrpo6f$. Llmlt.tlon. on ~i"'Uon The lI~tion bills In subjfCt to a wide: WIit of limit.ations on Itgi.la· tion COIlt.Iint<i in tho AIIIbirnlI Constitu· tion, Eumplu ire the nquirements tNt udI bill M nferrtd to} a commit_ tH, acted UI'JOrl by the COOlmiItH, ;and ntumtti to the hooK;"thlt taCh bill be Tud on th ru separalf days in nch houst befort passage:- that nch bill 346 / NOvt:MBER 1994

tOIlt.ain bout 0I1t ~JKt, UCfpt tilt generalllP\'lropriation bill;'" that taCh hooK kttp i joorml 01 ill procwIiJ1&$,... !hat tho vott on neh bill M mttrtd in tilt joorml:" thlt votts on immdmmu be set out in tho jool'Nl;"!hat tho original p!.Irp(lSf 01 , bill annot M chmgf:d by amtnclment;<1that the ammol approJIri· lIion bill includt only appropriations tOr the ordinlry exptnst, of fOwmmo:nt;'" and that the presiding officer of tach house sign bills passed by that house in the prtKnct 01 that holIK." The framers of the constitution did not prohibit lwropriatit>ns to ooo·&t.IIlt illfncits but did mUo suth appropria· tioos subject to the rtalriction> of §73 01 the Constitution: NIl iPPJOI)Tiation wll M IJIIde to MIY chiribbIr or ~ iNtitulion not undtt the KIsoIute tOIltroi of the illltt, other thin no,mll schools utablilhfd by law ror tilt prolwional train"" oItuchen for the public schoolI 01 tho stau. except by /I Y<)te O}! two-thirds O}f III tho mtrT"IIxr$ eleo;ted to tach ~." Condltlo.,.l . ppropn.Uons Though not sptCinu.lly authorized in the Constitution, the legislature fre_ quently rNkn "ronditionol" IpprQllria· lions in approp riation bills. Then approprilltioru Ulu.lny cont.llin termiIlCIIogy in IUbltanct !hat "then iii henby ronditiooilly IPPropriatfd from tho stitt IImfnI fund (or tho 5flKiai tdua,. tioNItrust fund III tho Qst may M) the sum of dollus for (1"IUI1f of dePlrtment or jjjency;and purpom) to} M <;Onditioned upOl'ltllt a\'a.il~ility of funds in tilt st.ate gmel'lll fund (or tilt sptCial educatioJOal trust fund) ""d the approval 01 the IIO'>'e mQr.... ' Such 'pprOl-priatio", art Plid from surplus funds UI'JOrl tilt approval oIthe iIOVfrnor. ....need ~t provis ion Aliblm,'S Constitut ion contllins I "ba.1an«d budilfl prtMsion" which pr0hibits tho Pil)'TTlmt 01 "I'I'l'OPriali<.>nl; in _ oIl'o'li\abll: .-nuts." AIIIbirnlI', bllMIced budgd irllmdmmt "'lS nlifieII It tnt SUIlt time is tho stalte income We immdmmt" and proYidts in part: To prMnt fu rthe. d.flCits in tilt stite trusury, it wll M unlawful from and after tilt idoption of this amendmen t fo r the state compo troller ... to} draw any warrant ... {o}.

the payment 01 montY ." UI'JOrl tilt stlte treuurer, unlns thert is in tilt hand of such trusuTer mont)' iPPropriitN and iYllilabl. for the full paymentofthe wnt.To the utent thlt funds lITe insuffi· cient to} PI)Ithe IPPropriitions in full, the ImtndlTlfnt proYidts fO}r prorating the funds." It furtlltr providts that at the end nf tIIch fiSCil ytllr III unpaid appropriations btcomo: null and ""id." The Justices 01 the Alallaml Supreme Cnur l ha .. stated the purpo5t or Amendmo:nt Z6 as follOW$: The provisions 01 1213 of tht Constitution, u amended Iby Amend· mmt U),lrt npressly intended to puwnl further deficits in the state trusury. TO} this .nd, /lvlillible funds for the PI)'fIM:nt of cw..... in Qst oil ddkit, 1ft to M prontN, Ind .n nce" unpaid ipproprii' tions in dKlartd null and wid." R••trk:tlon. on .ppra~tlons Quu tions /lbout the cnnstructioo of 171 O}f the Alablml ConstitutiO}n hI"e btm raised rega.rdinQ the validity of ctr· t.1in ~ppropriblions. Tht fi n t such ques· tion was POHd in ]934 when Governor Miller requuted in IIdvisory opinion from tho jUiticu 01 tho Supremo: c...urt 01 AIIIbirnlI on tho <:OIUIitutionality of an appn)pri.Ition in the general IpprQllriation bill from the gentl'lll fund to tho AlammI special fdUQ\ional trust fund... Tht justicu obsuV<'d thu th~ term "public schools" II used in 171 mwu tnt S)'SIem of cammon schools existing undtr 1Z56 01 the Co:>nstitution and ron· eluded thll "10 the n tent that it Ithe

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AlABAMA lAWYER

appropriation billlappropriatu fundi out of the llenerll tl"WlJl')' to the use of tht Allbanll. Jptcial tducational trust fund lthr Act l dots not nll.ke m appropriation authoriud by 171. Corutitution, to be included in the gmtrll ~. !ion bill. but tNt it is ~ prohibit. ed from inclusion , lind such In appropriation an only be mack by I stpIrltt bill conLlining no other subject."'" Clti/dru v. HublHrfOO prutnted tht inut ... hdl>er appropriations to state "4IfnCies a')IJld be !NIle from the ~. ma spteial educatioNl trust fund in a geneTllllppropriation bill. Applyin. IUS md 71 of the Allbanll. Constilu, tion, the court first noted that the ;Jell cruting md allocating revmuou to the Alwnll. special edUCItiorwol tn.ast fund specified tha.t tr.o. !'Mllun would be \Utd for tduu.tioml purposes only to be plaid out "on ~ul appropriatiON hen· after made sptCially from such funds by the legislature of AllNnII. for educa· tioNl purposes.· The court m'ifW!d tht tnti urmuked for tduut ion induding income !.u for tw:hers' saiariu, salts md we Llxts. public utili· tifS, ~ro ... receipt !.un. and otheN." The court held thll tht funds in the edUCItional trust fund _ .. urn'IlI.bd lor tduationoJ purJl(l5otS, that before the funds could be appropriattd for nOli· educational PUrpoKS the e/lrrn/I,king of tholt funds would have to be rtptlled, iIOd that the r~al of farmarking is not a m;r,tttr properly Included in iUl IIlPrD' priltion bill. To dis«gard the urmark. Ing prtMsion woui<l, in .ffort. .. pol the farrMrking in iUllWropriation bill and would btviolativt 01 li7\ and ~S.One m;r,y thus conclude that appro. prilltions from tm sptei.al tdl,KltiOllolI trust t'un<.I, for pufJl'*S oth.. thiUl publi c schoob, mlIy not bt mllde in tht grntral appropriation bill. Appropri". t ions can be made {rom the {lel1uQI furnJ for illY tdUCItiolll1 pUrpo$fs. but they must be IT\IoIk by s.epm.te bills to

l;Omp/ywilh 171. It is oquilly .... 11 .stablished thllt

appropriation bills Clnnot be uHd n vehicles to tnact substantivt legislation. In IVa/loa Slott Comm",,;IJI CoI.~. AJabama DNnmiuiotr .,., H igfwr £du· (fItiotl,- the ~u .. p;wed the tdu· catiolllll appropriation bill ... hich had bttn altered by a joint houn · sen)te conference committ« to include a pro.

1lI£Al.ABA.," LAWYER

vision cruting a physical lhtnpy iSS;'" tilIlt PfOIIriU1'I at WOllIKt SUit Commu· nity Co lle.e." The court held tht addition violative of ft4S and 71 of tilt ~ Constitution. TIlt bill was enti· !ltd: "A bill to be tntitled III ad to ~ iUlIIUlI OlJlI)roprilltions for the support, mainter\ll'a md ~Iopmtnt of public tdUClOtion in Alabama md for debl Hrvlet and capital improvements for tht fistll yur ending Sept t mbtr 3Q. 1988.... The «KIrt noted tN.t the titl. !NIle no mtftrlU to the physical \hmo. py provision. that this pl'O'o'ision ,,~ not m appropriation, and that the ad deall with more th~n Ont subject, and thus violiltw "45 md 71." Tht loiUl'C rault ...... ruched in AJaba. rna EduCflliotI Aurtrilliotl II. Trustees of liw 1Jrri«rsiIJl of A/ol/Qma," where tilt legislature included ill tht f dUClOtional appropriation bill a prwision prohibiting ill$litutions from being eligible to Tt«ivt appropriations unlns the institution pro. vidtd j dua chtd<"lIf lor CftUin profts. sionaI 0T1III~- Tht ccurt held the provi s ion vioilliv. of 1145 and 71 becaust the title of the bill did not .. nect the duou chtck4f proYision. md tho pr0.vision bore no rtl.l.lion to tilt lImount and purpo$f of the ~icn To wmnwiu. 171 pbca strict limi · tlItions on the gnlf~ appropriation bill limit in, apprOpriations thtrtin 10 the ordinary Uptruoes of the executive. ltg· isllti~ and judiciil departments, for intorts! on the public dtbt. and lor the public KhooIJ. If the ~tions 1ft for thr · public schools" u that term his bun dtfined. the bill moe!$ const itu · tional mwt.r. But if iUl aWJ'Opriations bill includts IWropriations to technical schools. junior toIltgu md \lItivmitin, the bill cannot be j gtntrll """roprill' tion bill md is by tilt single subject mruirement of J4S. Thus. the gtntral appropriation bill ippropriatn monty from the .entnl fund for the lIgencits tnumtrat.d in 171.- ~tions from the AIoIwna spoc;"1 tducatiOllllI trust fund of funds which a.. tal'Tll/lrk(d for tducational pur· poses may not allocate such rtvenueo for non·edua.tionol purpo$fs,l.(ld funds in tilt AJab.t.mlI speciil tdua.tionlol trust fund may not be ippT'OI'Iriattd in I gentr.I.\ appropriation bill sinct such action would, in tffect. untarrMrk such fundi and would thus violate U71 and 45.

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NOVEMBER 1990t 134 7

The jwtices of the Alabama Sup.. me Court haw further eJCpresud the Opinion that a bill allocating funds to Il(){lstate agencies is not a general appro-priation bill and, therefore, each appropr iation to a non -state institution must be in a sepante appropr iation bill for that particular institution." tn Eagerton v. Gulos Wreslling Enterprises," the Alabama Supreme Court hetd invalid legislatiGn which dist ributed to the American Ltgion, a non·state agenC)l, Gnt·hatf the f.." collected by the stat. athletic commission. The \'Ote in the Atabama House of Representatiws wa.! 67 in lawr of the tegistation with none GPpOstd. The court hold that this vot. did not meet the requi .. ments of §i'3'" sina> it was not • two·thirds vote of all !he membel"$ ele<;ted to each house,

Th. Oov.mot"s .PtHOv.1 After the legislature cGmpletes its budget responsibility by passing tht appropriation bills," the bills are deliv_ ered tG the governor for the neJCt step in the budget process." As part of the system of checks and balances in the Alaba· ma Constitution, the governor hall the right to appr<Wi:, disapprow, and pro-pose amendments to bills which haw passed both houses 01 the legislatu ..." The Alabama Constitution provides that ""''1' bill ",tlkh has passed both houses of the legislature is presented to the

governor where he may take one of several (I) ht may approve the bill by signing it; (2) he may permit it to become law without his signaturf;; (3) he mIIy .. tum the bill to the ho"'" in which it originated with one Or mOre executive amendments; or (4) he may , .. to !he bill." Item V.to Special provisioo for appropriation bHls is made in the Alabama Constitution: The gO\.. rnor shall haw l'O".. r to approve Gr disapprove any item Or items of any appropriation bill embracing distinct itell\5, and !he pa r t Or the parIS of th bill appnwed shall be the law, and the item or items disapproved shall be wid, un)ess .. passed according to the rul .. and limitations pre scribed for tht passage of bills ovu the necutive veto; and he shall in writing state specifically the item or ittll\5 he disapprove•. setting the same out in full in his message, but in such case the enrolled bill shall not be .. turned with the governors objection."

COIl,...,"

This section e, pressly eml'O"'ers the gove rnor to disapprove any item or items of apprOpri;otion bills. This is the "item veto" l'O"'er which has been the subject of national interest during the past two dK~S iI5 numerow prOpOSals

haw betn made for delegatin~ item ve[o power to the President of the United States. Most state constitutions grant thiSI'O".. r to their governors, The general appropriation bill itnd the educational appropriation bill contain many items. These are the specific dollar amounts which are appropriated for spe' cific purpOses to the .... riow state agencies, departments and institutions." Section 126 a\\aws the governor to dis· approw Il1l)I of t~ items. The I'/Irt or parts which h. approves shalt bi:come law, and the disapproved item or items must be rdurned to the legislature where the~ are reconSidered a.! in the cas.e of an e>:e<;utiw wto." The distinc· tion bel\<.-een the item veto and the exer· eise of his general veto po""er by the gO\.. rnor is that the approved portion of the appropriation bill Decomes law"tlil. the itell\5 which haw been disapproved mwt be .. turned to the legis)atu~." Only one Atabama cas.e has construed the item veto power of §126. In 1991 Governor Guy Hunt sought to wto cer· tain itoom of the appropriation bill after !he legislature's final adjournment. thw attempting to "pocket" item wto parts of the appropriations bill." Suit was filed contesting Governor Hunt'. right to pocket item wto parts of the appropria· tion bill. In flunt v, Hubbert, " the AJaba· rna Supreme Court strictly construed §126i">olding that it "does not authorizt an Alabama governor to item veto an aPPfOllriations bi ll after the legislature has adjoumed si>N dit: The court ~a· $OO\'d that the legislature had to be in .e.sion in order that the prov ision. 01 § 126 could be satisfied. The court said:

The plain language of §126 contem·

Jolon J. CtJkman. If! Qnd Ii/Ilium P. Cobb p""""/ Kids' ~ Choirm<n' Clusrles c'rr wi/II a COlIN oIl""i, book, A1aboma ",om.. Compen.. tlon I'nctio! Book 1994 UitiM. TI>e proaeds from I"" book ifni INing tkwu.ted 10 I"" KUb.' CIIm"" ScIH;lQ""ip Ftmd. Boob may b<. purclulied hjl "",di"" a check ror S63.9S /0 /lids. ' Chana Scholarship F'lmd, P.O. IJ<Jx ~t, MOI"I/fJ'>ffI"'7/, Ai. 36101.

348 f NOVEMBER 1994

plates that upon the legislature's receipt 01 the Governor's me ....!!". disapproving an item or itell\5 of a bill and upressing his objections ther eto, those items may be repassed by the )egislature accord· ing to the rules prescribed in §l25 of the pass.age of bills over the G0vernor's , .. to ... un)ess the legislature is in session, the legislature may no!. ...{\) rt«iw a "message" from the Governor (2) have the bill ' returned" to it (3) consider the Governor's "objection" or (4) repaSS the bill over the Governor's veto." With the usual practice of ha,;ng the appropr iation bills passed late On the THE AlAII.AMA LAWYER

last day 01 the wsioo. Me might argut that the gove rn or is deprived 01 the authority granted by §i26 and that under the.t drcumstanal §126 has no field 01 operation . Hrrv.'eVtr. the Alaharna Supreme Court has consistently strictly construed and applied the con· stitutional provisions relating to the gov.>rnor's veto PO'I'-",r."

Budget Is.oletlon Amendment The passage of the apprOpriatioo bills late in the seMioo prompted the adOp· tiM of the Budget lsolat ioo A~ndment to th e Alabama Constitution." This amendment requir's the governor to transmit his pfll\Xl5ed budget to the leg· islature on or before the second legisla· tive day of each regular seMion."This """,nd~nt confticts with the statutory mandate that the budget be submitted on or befoT(' the fifth legislative day. bul obviously the constitutional provision controls." The amendment further provides that no bill. other than the appropriation bills •• hall be si gned by the presiding officers of the two house. until the appropriation bills ha,,,, been signed by the presiding omce ..." The commendable objective of the amend· ment was to ha,,,, the appropriation bills considered and paso.ed before other leg. islat ion. However. the effect of the amendment has betn nullified by a bypaSl provision which allows either house. by a Ihree·fifths vote of a qu~ rurn present. to suspend the aptllication of a~ndment 448.- Both houses of the le gislature now routinely invoke the bypass prOVision sO that the intent of a~ndment 448 has been thwarted. Allocetion of epproprle tlon. Alter the approp riation bills have beco~ law. there are yet other consid· erations which aflect the budget pro· ceu. The "balanci'd budget" ri'quire· ment compels the state to live within the financial reSOurcts available to it. The Budget and Financial Control Act of 1932." adopted before the ratification 01 amendment 26. plaere upon the governor the responsibility for allotting appropriations. Allotmenu of apprOpri· ations must be made iN;T('mentally for periods not exceeding three months. by the department of finance with the approval of the governor.- The gover. nOr must r.strici allotments "to pre· '-'\'nt ~n werdraft or deficit in any fiscal THE A~BAMA LAWYER

year" by prorating the available rev· enues among the "arious depart menu and agendes.- The stated purpose of this provision i. "to ensure that there shall be no overdraft or defidt in the several funds of the state at the end 01 any fiscal year, and the governor is directed and required so to administer this article to prevent any such over· draft or deficit.""

Proretlon The governor's duty to prorate "with· out discrimination against any depart· ment" the available revenues to p«"'tnt deficits ha. raised questions about which appropriations are subject to proration. !n Abramson v. Hard". the supreme court held that those appr~ priations whiCh did nol require alloca· tion were not within the purview of the Budget and Pinancial Control Act. Among Ihese appropri.tio .... to which proration was not applicable the court included: filed sal~rie5 and other filed expenses such as p"r diem for travel: expense for fuel. light and water: postage and post office box rent: repair· ing and i.... uring state property. public

printing: telephone and telegraph 5er· vice; and numerous others in the nature of fil ed expenses!' In the recent case of Folsom v. \tgn"," the Supreme Court of Alabama held that Go.... rnor Hunt acted uncon· stitutionally in imposing proration on .ppropriatio.... for the judiciary without conSidering whether the remaining appropriations were adequate and reasonable to allow the judiCiary to per· form its constitutionally mandated dutits. The court did hold that the judi" ciary. even as a separate and indepen. dent branch of government. is within the operation of the proration statute but onl y to the ellent that. after its appropriation is reduced by proration. iu remaining appropriations are ade· quate to allow it to perfonn iU co .... ti. tutional functions. Thus. certain appropriations. particu· larly salaries. havt been immuni~ed from the proration statute. thereby causing other appropriations to bear the entire burden of a shortlall in stat. revenues. \\'hether this is the intent 01 Amendment 26 to the Alabama Co ....ti· tution ill Opi'n to debat •.

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ALA BAMA SOCIETV

OF CE RTlFI.ED PUBLIC ACCOUNTANTS

TIlE AlABAMA LAWYER

NOVEMBER 1994/351

C·L·E I OPPORTUNITIES The following in-state programs have been approved for credit by the Alabama Mantiato'71 CLE Commission. However, inlormation is Ql!(liiable free of charge on over 4,500 opprot'ed programs nationwide identified by location, date, or speciality 01'{l0. Contact the MCLE Commission office at (205) 269-1515, or 1-800-354-6154, and Q romp/ete CLE calendar will be mailed to you. 18 Friday

NOVEMBER 15 Tu •• da », THE I't INEFIELDS Birmingham

or PRACTICE

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Il'O SURA.' \CE Birmingham. Civic Center Alabama Bar lrutitute for Clf: Credits: 6.0 Cost: $165 (800) 627·65]4 JA.'II ES \Ii. MCELHAN EY'S MASTER ADVOCATE SERIE S Birmingham. Medical Forum Cumberland Institute for CLE Cmlits: 6.0 (800) 888·7454

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DECEMBER

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352 1 NOVE MBER 1994

1 Thursday l'OEW AlABAMA RULE S

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NEW ALA8A.'IIA RULE S OF EVIDENCE Birmingham. Sheraton Hotel Civic Center Alabama Bar Institute for CLE Credits: 6.4 Cost: 5165 (800) 627·65 14 ESTATE PLA'INING Birmingham. Pickwick Conlerenet Center Alabama Bar lrutitute for CLE Credits: 6.0 Cost $165 (800) 627·6514 EMPLOYMEt.'T DI SCRIMINATION Birmingham. WynfTfYHotel Cumberland lrutitute for CLE Credits: 6.0 (800) 888·7454

8 Thursday

BANKRUPTCY Birmingham. Wynfrey Hotel Alabama Bar Institute for CUe Credits: 6.0 Cost: SI85 (800) 627·65 14 NEW ALA8A.'IIA RULE S OF EVlOEt.'CE Mobile. Adam's Mark Hotel Alabama Bar Institute for ClE Cost: $165 Cred its: 6.4 (800) &27·6514 WORKERS CO.'lPENSATION (VIDEO REPLAy) Montgomery. Ramada tnn East Side Cumberllnd Institute for CLE Cred its: 6.0 Cost: $149 (800) 888·7454 9 Friday

I" EW ALABA.'IIA RULES OF EVlD Et.'CE Montgomery. Civic Centu Alabama Bar Institute for CLE Credits: 6.4 Cost: $165 (800)&27·6514 RECENT DEVELOPMENTS FOR THE CML LITIGATOR Mobile. Holiday Inn Downtown Cumberland Institute for CLE Credits: 6.0 (800) 888·7454 14 Wednesday

COLLECTION LAW Birmingham Lorman Businw Center. Inc. Credits: 6.0 Cost: $125 (715) 833·3940 THE ALABAMA

~WYER

15 Thursday

20 Tu.&day

AlABA.'IIA UPDATE

TORT IA"" (VlDEO REPlAy)

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IJ>TERI":ATIONAL BUSI NESS LAW

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Binninglwn. Samford Univtnity c.""~ Cumbtrland Institute lor CLI:: Cr,dits: 6.0 Cost: S149 (800) 88&-7454

Binninglwn, Civic Ctntu

AbI:wna Bar [lI$ilult for CLE Crtdits: 6.4 Cost: SI65 (800) 627-651.

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Mootgoffitl)'. Civic Ctntt r A~ Bar lll$itutt for CLI:: Cmlits: 6.0 Cost: SI65 (8001627-6514

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Binningllam, Medial f orum Cumbtrbnd [lI$itute (or CLE Crtdiu.: 6.0 (800) 88&-1.54

21 WlNlnesday t.'EW ALABA.'olA RULES OF EVlDE,,"CE (VIDEO REPlAy)

22 Thursday WORKERS CO.'lPENSATION (VIDEO REPlAy)

Birmingham. SmUord Univtni ty c.""~ ClIITIbtmnd Institute for CLI:: Credits: 6.0 Cost: S 149 (800)888-1454

"""'~

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CII!11berWld In$lilutt for CLI:: Crtdits: 6.0 Cost: SI.9 (800) 88&-7454

TIlE AUBAMA LAwvt:R

All CLE credits must be earned by December 31, 1994 All CLE transcripts must be received by January 31, 1995

NOVE MBER

199( / 353

By Ira W. Harvey y omi$$ion from the United States Constitution. responsi· bility for education is one of the powers re.serwd to the states under the Tenth Amendment. The financing and operatiQn5 of public school sjl$tems are under the rontrol of the .tate and il5 legislature, subject onb' to any reslrictiom imposed by the individual state', constitution. Astate', coru;titutional and legislative JlOI'"ers 10 ronlrol public education alS() impl;e. the authority 10 ra'se 1TIOI"Iey for education through public taxation. While ~ ~te may delegal( to local school systems or other g0vernmental unil5 the power to fif\il/l(e public education Ihrough taxation, such funds remain 5I.ale, not local fund5, and are there· fo1"e subject to state direction and control. There is no inherent po;IW<r in local school SjI$tems to levy !alees (Cee and Speny. 1978). Acknowledgm.nt of the5e basic principles hM been slow in devtlo!ling in Abbama. Based upon the adoption of Amendment 111 in 1956 to the Alabama Constitution 0/ 1901, 1256 M amended became the basis for the common argument for ~rting that there are 00 constitutional guarantees for public education in ~ ... but nothing in this constitution ,hall be construed M creating or o-e<:ogni~ing any right to education or training at public ~""', norM limiting the authority and duty of the legislature, in furthering Or providing for education, to require or imJXl$t oonditiom or procedures ~mtd necesSIll)' to the preselVlltion 0/ peace ¥KI order. Under this viewpoint. whatever the !egislature chooses to pr0vide for the respectivt \ooll school systems of the sial( was pureb' kgisiatNe prerog;.tive and not subject to an)' constitutional stan· dard. If funding "<>5 i~te in any \ooll school system. it was due 10 the failure of the \ooll gcMmmental unit to itvy a sufficitnt rate of taxation. And if this was what the \ooll ptOple wWIed, well and good! The 5I.ate was thus abS()I.;ed from rf:!ilO'ISibility.

354 ' NOVEMBER 1994

However, this was not the interpretation of the plaintiffs. In April of 1990, based upon constitutional claims. suit was filed in Montgomel)' County Circuit Court by the Alabama Coalition for Equity with the following PTayer for Relief: I. A declaration that Amendment III to the Corutitution of Alabama violates the Equal Protection Cia...., of the Con.titu·

tion of the United States;

2. A de<;laration that the funding sIntc\ure for publk education

in the State of, Alabama violates Sections I, 6, and 22 of the Con.titution of, Alabama. which guarantees equal prottction of the law; A declaration that the funding structure for public edllCll\ion in the State of Alabama violates pbintiffs' righl5 to equal protection and due process M guaranteed by the Fourteenth Amendment of, ~ CQnstitution of, the Unilf;d Stales; A declaration that the funding structure for public education in the State of Abbama oolates plaintiffs' righl5 as guaran· teed by Sectioru 6 and 13 of the Corutitution of Alabama. which protects citizen:! against the d.prillation of life, liberty, Or property. exupI by due process of law; A preliminary and perma~nt injundion enjoining defen· danl5 from imple"",nting or maintaining. for an~ year su~ quent to the present fiscal year. any public school funding system which perpetuates the unconstitutional inequities o;\e$cribed herein; A permanent injunction requiring dtfrodanl5 10 d.... ign. off.r to the Legislature for imple""'ntation, and maintain a corutitutiooal system of public school fil\alX% which assu~ equal educational oppOrtunities in local school sjl$tems without regard to their wealth; Tht retention of, jurisdiction by this Court until defendants THE ALABAMA LAWYER

haYf <kJj~ iIId permvomtly irnpltrnmtHi I school fiNr"a $)'Sttm that -,res oqUfJ Hluationll opportunities in IotiI sdIOOI $)'Stt"'" withooI JqIard to thrir...wth; a. "~d pIUltiffs' ~Itomtys' Ita iIId COilS from appooopriite .outU$, including any ~ funds CIQItd. intt'u$ed. prolK!· HI or benefitted is ~ result d pLa.intiffl' effOfb; iIId 9. Such (lIher, furthrr. and diff~rf1lt rtlitf as tIM: Court dtt"", awropriate. neceuar» ~nd proper, Induding supplemenUll and ge ...."'II1'Iie/ ",a I'$. Himl, pp. 28-30). "similar suit ...as filed in J;mUir» d 1991 by attomrys PI1" sm\ini cLa.i"", for students with disibilitia sI)'Itd is Harrm liS. HunI. ~ two claim; ........ <;OnSOtio,Wtd lor trill. 0nItr okdarina: Ammdmml III u-..titutionll P,,~r for Relid first nqlluted thit Amendment I II bt doclartd WlCOOStitutionll. iIId ihf.t the ~ d Section 256 of 190] be decllr"ed in foret. On Augwt IJ. 1991. Judgo RtQt, granted ~ partilJ judgment thaI Amendment 111. Section 256 w.I$ '"void ab initio and in its entirety urnJ.er the Equal Protection CIaWol: of the Fourteenth Ammdmtnt to the UnitHi SUItes Con· stitution." 11M nwmte 01. S«tion 256 of Abb.inv Cm:iIitulion at 1901 if; dtcWtd. ond herrl>y iJ. in dJect to the PWlI that it Pf'(I'Iidfs: ""The ItgisIatun: shill aublWL. ~, ond nvintlin I Ikr:>I JYStmt of public KhooIs throughout the JUte for the btnefit d the childrf1l themJl' brtwetn the agtI of sewn and t,......,ty-one )'tlrs (Onkr of August JJ. ]991. p.. 2)." Ibbllll)l Ordtr. MardI 3 1. 1993 [)espilt the argummts at the deftndlont in this Ca.\I:. G<Mmor Guy IllUlt, that this Utiglltion .... an unntaSSar» intrusion of the judiciary into ~ lTId legislatiYt ITIltters. iIId that the issue at funding should not bt da:idtd by a judge. Itnx concludltd that the judicillry did haw the ultinvk pOWer in thi!;

J,.

..,.,.

This is particu1arl}> tnx when. l$ in the irutant Ca.\I:. the rvideoce is clear that the legislatiYt and aecutiYt branches haY( I1'peatedly failed to addrus the problems at which the plaintiffs complain despite nvny OppOrtunities to do 10 (OrderofMarch31. ]993. p. 77). 11M Court .... ither taxa nor $pft'ldJ. but ~:nply dtcida the case belon it. decLlres oorutitutionlJ rights and. whm neceswry, trVoins thri. viobtion. is it mUll in OUr DDRSti· Mlonai $)'Stem (OrderofI>klrdr31, 1993. p. m.

Fisc:al dI"«ts lI1' Olfltrolled by " ••• poticynW;ers. "too tsUb-

100 budgoeWy and w policy in the firs! instana, and who must n:dcon the potmtill cost at WlC(InJtitutiO'lrW Kts in that biIann: ~Ordrr ~ March 31. 1993, p. 18)." Rrrst: concluded that the lt1IislatUl"fc cannot oBe, is an ucus.e budgdMy a.cuM:$ lor the wlul1' to oI.fu, socW snvice in III'IlIlIlH consistmt with an individUiI's rorutituti(ln,al rights. Such corutitlltioml oblip· lions canoot be avoided due to, lick of funding. Judge ReeK ruled for the plaintiffs on III constitutional claim!.

SECTIOS 256: A Conl lil ulio.w RJtht Section 256, tho oonstitutioNl statement in Articlt: XIV. provic!ts 15 follow.: "Tho Itgi$IatUI1' lhlIl tstabIish. orpniu. and nvinwn I libu.ll systml of public: KhooIs throughout the sUle lor the benefit at the children thtn:ol bttwttn tho aga d KYef1 and I\Y(nly-one)'UIl.· Judge ReeK agreed with tho ~ntiffl that 'This pn.IYi$ion is c....r!y mandatOl}' ••. (Order of I>kIrdr 31, /993. p. 81)." The Court notu in particular that the duty impoKd ill slale rather than a local duty. rtndering a de/enllan!", aTiutnent that kalitiu al1' responsible for iNdeqUllte or inequitable OppOrtunities unleTllbI, as a ITI/IUer of law (Order ofMarch 31. 1993. Po 811. Thi!; d~ the oomrnon arturnmt of both the u«utiYt and IegislatM brmche$ to avoid funclammtal dw1gu in Alibi· nv's syJ!ml of public: schools; that this is llotil probInn ",ther than I state problem. PI ecedtnt for this conclusion WO$ found in I prt\'iou$.-I.IaIwm court docision in 1935: "EY(ry public school is I state 9:hooI, cruted by the state. sUP\XIrted by the state, supervistd by the state, through stattwide and local agencies. taught by teachers liw*<l by the stal •. employed by agmcits of the statt (OrderofMarch3J. 1993. p. 82)." Rme conclud· ed that "Under these circurl"dtancu. there Qn be no quUtion that Alibirno sd>ooIchildrtn haYf an mforctabIe corutitutlonai riaht to an educ;;o\ion is ~ by 1256 (OrderofHatr:h 31, ]993. P. 82)." ""'"'" a~.'••r,o" lfiIumtrI\ .... btm that if thel1' ~11' funding disparitiu. the}> an: not the SlIile's tUp!.lnSibility but ",tilt. the result of local mismana8ement or local choice not to fund schools (Onier of March 3), Po 17). Judge Reese was not persuaded by this argument: Thw. the Court finds that mtt school funds lI1' clearly part 01. the problem. not part rJ the solution. ond the JUte ~mpIy canoot pin the blame lor rorrent funding ineql.llli· tiu on local school n:Ytnuot$. In any ClSI'. the distinction urged by dtftndant bttwttn Ioal am stale funding for schools is an ilrtificia1 one. By

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1994 DIRECTORIES ARE INI Members - $25 each Non-Members - $40 each IlAIl CHECK TO :

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law. all public school t.l!<e.5 art state t.l!<e.5. and all public schoolluroch are ltate funds. whether collected at the !late or local I"",,! (lXIblic schoQllunds ~rt state furoch whether they come from the !late treasury or local ta>2tion). Por th~ ~O$()fl. the appropriate furoch to consider in tvalu· ating stat. furoch for education art furoch rmed for schools from both state and loca! sourCes (Order of Murch 31. 1993. p. 23). A final common "rlIurnent in this regard is thot fe<lerall'und$: should be used in e.aluating the relative disparity among school systems. Judge Reese accepted the testimony at trial which <ImIonstrated thot ... a large pOrtion of thk:; aid ~ used for oon-irutructional purposes such as school breakfast and lunch programs. Testimony at trial ~ that much of the federal aid that i. emp!o}'fd for irutruction is categorical aid. targeted toward specifIC population group5 (t.g.. Indian education) or programs (t.g.. ROTC ) (Order of March 3J, 1993. pp. 14-15). The iroclU$lon of such funds in any tqUity ;w,l}'Sis was further discQunted by the realization thot "... thm funds may be used only to SUpplement. not to supplant. the public ",hooIs' regular program (OnkrofMarch31. 1993. p. 15)." Judge Retseroocluded: Perhap5 most impOrtantly. the stat. of Alabama dots not collect or, (or the most part. control these revmues. which au not available to adIIa",e state educational gools but rather serve (!ICKI1I:times transitory) federal mandate.. The issue before the Court is whether the Siule mttts constitu· tional mandates in prOYiding public schools. not the feder· al g<!vImlment Accordingly. the Court finds thot plaintiff's equity anal)lSeS are proper in oxcluding federal aid (Ordt'r ofMarch31,1993,p.IS). Pinally. Judge Reue referred to the effort placed by the legisla· ture in creating Amwdment 111. appro'lJell in 1956, ...'hich was designed to modify the original education p~ion to eradialte any implication of a constitutional right to a free public education: 'This Court ,,; 11 not presume thot the legislature and the people ratifying Amendment III did a futile act; clearly, they beliewd, and this court agrees., that §256 guaranteM Alabama schoolchildren a constitutional right to an educatioo-a guarantee which ~ now in effect (Order of March 31, 1993. p. 83). Right To Equal Eduational Opportunity Was it the intent of the framers 01. the Constitution 01.1901 to prow ide for equal educational oppOrtunities for Alabama's schoolchildren? The plaintiff, contended this was the intent. Judge Reese cited. 1938 American Llw RepOrU (AJ.. R) annota· tion to define public or oommon schools "as meaning ",hoots which are free and open to all on equallerms." He noted "the fact thot public schools are to be prOYided Ihroughoul 100 slale (or benefil of the children thereof suggests IIIat oot just some, but all children are meant to enjoy the amantJ,gts O(fered by these schools (Order ofMarch 31. 1993. pp. 84-85)." Judge Reese further noted thot the state "Supreme Court in Tuckerv. Siale ex n?I. Poole. 165 So. 249 (Ala. 1935). reaffIrmed in a 1lOfI·ad\liSOry opinion thot the system 0( public ",hools mandated by §256 must ope rate in favor of all children equally

I""

356 1 NOVEMBER 1994

(Order of March 31. 1993. Po 90)." Judge Ruu concluded the issue as foll"ws: Accordingly. the Court holds tl"lat AIalwna', present system ci public schools violates the oonstituti<:INl right ci plain· tiffs to equal educational opportunity as guaranteed by Ala. Consl.• art. XN. §256 (Ordt'r of March 31. 1993, p. 91). Right To Adequate EducatioN! Opportunity Was it the intent oftht framers ci the Coostitution ci 1oo1 to prOYide adequate educational oppOrtunity for all students? The plaintiffs contended that this was the intent based UJlOl1 the inclusion of the term "liberal" in §256: The Court accepts as the prevailing interpretation of "liberal" at the time ci the framing of the 1901 constitution that offered by Dr. Ha~ and Dr. Flint at trial as h~tori cally corrtct: "generous." "bountiful," and "broad·ba.se4" in the ..""" ci preparing one for future c;tiuruhip (Order of March31, 1993. p.94). This Court finds that the "ordinary meaning" of these words, "common to the understanding at the time 0( its odopbon by the P<QP1e: .•. ~ a system 01. public ",hoo!. that ~ generous and broad·based in its provision of. educational oppOrtunity and thot meets evolving standards ci educational adequat)l (Ordt'r ofMarch 31, 1993. 1lP-94-951 _ Judge Reue concluded thot "the slate ci Alabama has a strong historical commitment to education that it has elQlressed with increasing fora in each of its sil ~titutions ((lr(kr of March 31. 1993. p. 97): The text ofhistory ci §256 created the ~it" of the weak right to a education, nearly devoid of substantive content, as suggested by G<Mmor Hunt: To the contrary. the Court finds the Alabama constitution's education guaranttt ~ one that accords school chil_ dren of lhe state the right to a quality education that ~ generous in its """11 prOYisions and tl"lat mttts minimum standards 01. adeqlJ.aCY (Order ofMarch 31, 1993. p. 98), The Cou rt. after careful oonsi<leration 01. the text. history, and purpose of 1256, and the expert evidence and the record in this case, concludes that §256's mandate of a "libfralsY"tem of public Khools· dictates ctrtain standards of adequacy for Alabama schoo!.. as .. t forth in the Court's order (Ordt'r ofMurch 31, 1993, p. 100). Judge Reese 5wnmarized "that tho education provided to plaintiffs is not adeq""te to meet the requi .. men~ imposed upon the 5tate by 1256 and is therefore not in confonnity with the Alabama constitution (Ordt'r ofMarch 31, 1993, pp. 100·101). Equall'rolection The plaintiffs alleged that eq",,) protection standards should apply to the ""te system of public schools. The combination 0( I. 6. and 22 ci Artide Constitution of Alabama 1OO1. act 10 guarantee the citizem of Alabama equal protection under the laws. While Pederal equal prOlection jurisprudellCt has tradition· any employed three kw:ls 01. scrutiny (strict, intermediate, and rational basis), Judge Ree .. ~mploytd a ruling of the Alabama Supreme Court that slam. "are not compelled e:<actty to correlat. their standards of review of the ·th re~·tiered scrutiny' employed by the federal courts ... (Order 0( March 31. 1993, p. 102). Judge Reese concluded: In any event. this Court holds thot the AIalwna $}'Stem of

THE AlABAMA lAWYER

public "hoots faib; to pn)Yide plaintiff, tht equal protec· tion of the laws under any standard of equal protection """,,,'. For the reasons set out below. tht Court ooids that plaintiffs are entitled to strict "",tiny of the differential trutment at issue here. The Court also reviews the eho.!· lengtd inequaliti.,. under the more deferential ,tandard of mere rationality. In each iru;tMl.:e. tht result is tht same: the present system of public "hools in Alabama cannot sUIViw. equal protection scrutiny (Order of March 31, 1993, pp. 102·103). Gi'll'n the history and text of Alabama's education article. the Court detennines that the right to education in Alaba· ma is fundamentll under any of tilts« criteria (Order of March31. 1993. pp. 103-1(4). Civen the conclusion. regarding the constitutional issues raised to this point. Judge Reese then addressed the claim of plaintiff. that public education in Alabama ;s a fundamental right . ... the CQurt finds ample additional evidence of the funda· mental character of the right to education in the constitution, laws . history. and practice of the .tate of Alabama (Order of M<=h31, 1993. p.I()4): An issue raised by the defendant was that public education could no! be considered a fundamtntal right in light of the (ie(:i. ,ion in Abromson v. IImd in 1934. in which public education was d;wified as a non·..,;tntial function of ,tate government This issue was discounted by the Court: However, the question of whether education is constitutionally fundamental does not depend upon ...iletller ar not public school appropriations were held to be subject to proration und.. a budget ,tatute. in a case decided by r"", mtmber.; of tht bar sitting as a special court in which neither §256 nor equal protection claims were raised (Order ofMarch 31, 1993. p. 11)5). The Court roncluded "that education is a fundamentll right under tilt Alabama constitution (OrderofMtnc:h 31. 1993. p. 108):" lkcause edlJtation is a fundamentll right under the Alaba· ma Corut itution. the stark inequities in educational oppor_

tunity offered schookhildren in this stlte must be justified under stria scrutiny by a compelling state interest to pass comtitutional muster (Order ofMarch 31. 1993. p. 1(9). As discussed supra, the interest in local control asserted by the Gowmor-that is, local autonomy to secure the level 01 education that citize", <lesi re for tile child .. n in their districts-is actually defeated. rather than promoted. in many poorer school5YStems in Alabama by differentials in school funding (Order of March 31, 1993, p. ]10). Accordingly. the C«Irt holds that 00 matter ...+>at standard 01 f([ua1 protection review is empkJl.'ed. the present 5)lStem 01 public schools in Alabama vioIat.,. the Constitution of AIal:>omaArtide I, fU, 6.and Z! (OrderoiMarr:h31, 1993. p. Jl2). 1>u.~Sf

The plaintiffs further raised the issue of adeqUiC)', claiming that in~dequate educational OIlportunity viol~ted due process protection. Judge Re ... agreed that a daim for due proces.s protection could be made under OUr state Constitution: It is well-settled in this state that when the state deprives citizens of liberty for the purpose of bentr,tting them with a servi«. due pTQCe0.5 requires that the servi« be pn)Yided thtm in an adequate fonn (Order of March 31. 1993. pp. 112-113). There was no question regarding the fact that "The state of Alaba!rn depri_ students of thtir liberty by requiring them to attend school under penalty oIi<1w (Order of March 31, 1993. p. 113)." Ju~ Ruse COT"oCluded: "... Alabama schoolchildren haw a due process interest Or entitlement ....ith respect to public education under Alabama law (Order ofMarch 31. 1993. p. 1141: Plaintiffs haw established that many Alabama schoolchil· dren are deprived of their ,tate law entiUernrnt to public education arbitrarily and .... ithout any ooru;titutionall)' suf· ficient justification in violation of due process (Order of March31. 1993. p. l iS). Sptcial Education Claiml With regard to speci al education cl aims made by the Dot

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TUIDOCLOSE-

NOVEMBER 1994 I 357

pLainti/b in IkrrNr II$. I/unt, the Court t"'f'hasiud "... thot 5Choo!childlTn with diWIillti.. haw the urm oonstitutiooW right to In tquitablt and adtqUlltt edutltion IS all oth. r schoolchildrtn in AI~ (Order of Mard! 31, 1993. p. 115). J~ R.ue ruled in favor of the thtK plaintiffs on IMir two uniq .... claims: (I) th;.t children with diWIilitiu lIT dtprivt:d of their uatutooy right under Akl. C«Jt 11]~me1 ]6-39A·2 to III l!lP!'"OPI""W.e ~tion mel spec;,] HMta, mel (21 thot the Ala"bama system of funding for s!",cial tdueltion il ir ... tiona! and v'.olatH the due proc:us cla~ of the Alaba· mlcorutitution IOrrkrofMarch31. 1993. p. liS).

Conel ........ ]n cnncluding. Judge Reae ~ the ilT"lpOlWlcc in tht caK 01 the cklicate ~ .unona: the judicW. tnCUtM. mel Iegi.llati~ branrhts of ~nun,mt under the doctrine of sepa...· tion of pOWers. Little "Illument had been made betwml ddm· dints mel pLaintilfs as to whtther dtfotitnc:ia idUilly ~rd in ~·s public KhooI $)"5I...,..midl rtqUirrd additional funds.. Judge R-.. concludrd: The rul is.sut he« is whrihtr thtH dtflCimdes mel condi. tions rise to the levtl of ckprivations of constitutional and Itatutory rishts. [n th. opinion of the Cou rt. they do (OnierofMardl31.1993. II- ]22).

Tbmfon . it it OIl.OEII.ED. ADJUDGED and DECREED IS

That. pursuant toAkl. Cunst. art I. HI. 6. ]3,. 22 and ut. XIV.

1256. Alabaml school.age childrtn. indudi!\ll childrtn with diubilities. ~ and tnjoy a <;OnSIitutiooW right to allend 5ChooI in I libtral $)"5Itm of public JChooIs. tsbblWlrd. orga. niled. iIld mlinlilnrd by the ilit •• wtlich shall pnJ¥idf: all JUCh schooIchlldrm with subsl."lnt~ly tqUibble mel idtqum educat"",,) oppOriunitits; 2. That the essential princ:iples and i'tatura of ""the libtTlI sys. tem of public schools" mjUirrd by the AlaIwno Constitution include tht following: II.) [t iI the rapon$I"bilily d tht iI."IU to estabIioh,~. and maintain the ~em of public schools; (bJthe system of publk schools J!\all txt.nd throughout tht 5tat.;

«)tht public Ichoot. musl be fret and opon to all schooId"Iildrtn on equ;aI tmns; {d)tqUiiablt and iCltquatt educational opportwlitiH shall tit provided to all schoolchildren regardlelS 01 the we-alth of the communilies in which the JChookhHdrm raick; and (.)adtqwk edo,glional oppc.:nunitit$ .tW11.l':InOiIl 01. lIa minimum. M1 tduation Ih;.t proYidts studmU with opportunity to .. ttaln the following: (i) sufficient onl and written communiCltion skills to function in AlabAma. And ill tht nill"",,1 ~ in\trTlationll levtls, in the oom-

irC)'tln: (ii)

ItIffocitnt mllhtmotic and scitntifie skills to function in Alabama, and al the national and intema.lionaIlewb in the comi!\ll yean;

3S8 / NOVEMBER 1994

!iii) ItIifIcimI knowItdao '" oconomic. iOCW. and poIitial iY'i...... jltfltl"llly. and of the history. pOlitics. and social structu~ of AliIbiIrm and tht Uniled Stlitu. $pKifitllly. to tnable the .tudmt to malee infanned choices; (M JldfIcienl unde:~ to (iOYmImmtal pr0cesses iIld of bilk tMc institutions to tmbk the lIudent 10 understand and contributt 10 1M iuuu Il\Iot affect hil Of Mr community. I!.}te. and nation; (vI sufficient $tlf-knowledge and knowledge of principles of hullh ind rmnlal hYiliont to mabie the w...knI. to 1TOJIIitor.oo ~ to his or hrr own physic;lI and menW well-being: (viI .ufficient undmtandi!\ll of the arts to enable t.xh student to appreciate his or her tultuTlI Mritage ~ the tultural heritagH of othoD; (vii) JUtIicimt training. or ~ lor lIMnctd training. in aademic. or walioniI skills, mel sufficient guidance. 10 elllOble e~h child to choose and puTS.... lif. WOI1c intelligent/y. ("';ii) sufficient le~l. of academic or vocational skills to 0,w,1. public schooIlludenls to oompete favoubly with th.ir counterpArt. in Ala"baml. in w'roundinglliles. acTON the IlIOtion. and throughout the world. in lei· ckmics Of in the job IT\lIrII.t; and (ill .ufficient support and guidance 10 th;.t /:WI)' studrnt f«1s .. JotI1st 01 xlf·worth ~ abilily to xhitYe. and 10 Ita eotr)' stt*ni iI ~ to 1M up to his or her fun hur"rwI pountial.. 3. lluot. pursuanl to A/Q. C«Jt fll>-~ and 16-Jq,\·2. AlaIwno 5Choolchildrtn with disabilities aged J.21 have the right 10 appropriate instruction and speciil servicts; 4. lluot the pmmt S)'Skm violates CONtitutionai and statutory ri$hll of pWntitb: 5. Thit the ililt oiflCtl"l dw\Itd by law with rtSpOI"ISibility for the AWwna public 5Chooll)"Stem. are Mrtby enjoined to C~· al. I systt m of public schools. that proYides fquitable and adequate educat"",,1 opportunities to ;all schooI·age children. in KCOfdara with CONtitutional nw>d..>ta of AI.a. ConII. art XIV. 1.-..1256; iIr1.1.1I 1.6.IJ .-..122;.-..1 to pn:Mdt IAIfO" priatt inIlruction and Sptcial services to children with disibil· itiu ~ thrte through twenty-one purswont 10 Ala. Cock 1116-39·3 and 16-J9A-2; 6. Thit thi! rmlter is ~/ lor sta/us ~ on 9th da, of JUM. 1993, II 8:30 LID- lor the PUI"\"KIIH of tsbblilhi!\ll the proadura and timtl."lbit lor dttenniNtion of an ~ mnedy in thi! cut. Without appeal. thi! Order " "301 certified as final. Romed» Ordtrof Au,UlI22 . 1993 The iY'i"" '" public ~tion in the State d AIibami shall bt flnIod ilUfficimtly to enable ,n public schoob to fully ~ Constitutional and I\.ltutory Ibndards d educational tqUil}> iIld adequacy. includi!\ll ,II components of this court order (Order 01Augus/22. 1993. p. 17). THE AUBA."IA t.-\WYER

Reme<ly involves th ree aspects of Alabama's ~hool funding 4, 5)I:Ilem which a... listed in order fA priority, The fint is equity. the fundamental basis fA the lawsuit. The second is ~uacy: by no l1"\eaSu'" a... funds cu,.,.."Uy adequate to imp)"ment .tatut.. 5. and regulations in place or to meet regional Or 5tate funding standards. The third is the new programs which are required to bt funded by the Order. All i .. ue, ultimately rtvolve around 6. equity. which ,hould mean adequately funded programs for all. Equity, unfortunately. could devolw in equalizing pOVerty unlw new IYI'enu< sources "'" found for public schools (Robin Hood). New funds are necessal)' to equalize Figure 1 and hold·harmlus the wealthier ,yotems. I.... ope<.:. tive of the programmatic offerings which may be mandated in the Order or deemed ne<:US/ll)' by polili. dans (ex., S.B. 75, RI!gU/ar Session. /994). little will bt lCGOI11plished without addiState tional resource•. Adequacy and equity are statutory Flit Crant RevtOUfJ Ptr Pupil issues. For the most part. ~",u';".'.","~' rnco;Iifications in gow~ and programs can b. accomplished by regulation and should not distract attention I/WlI)' from the cru·

Locally collectw taxes ...• hall be It:\iw in ~hool taxing diJ!triets that ~ ... coextensive with enti ... local school .yotems (I'. 17);

Authorization for local school systtm we •... shall bt uniform, so that all school.ystems haw equal a«m to their ","""elM tax true.. ... (I'. 18); Defendants shall develop a method for determining what lewl of funding is necessary to provide an adfquate wuca· tion ... (1'. 18.); .. .fringe benefits for stale and local ~hool emplO}-ees ... shall be equalized by incorpo' ration into the foun· da t ion program (I'.

DIAGRAM OF FLAT GRANT PROGRAM

ciaI funding issuos.

The funding deficiencies found by the Court. in addi· tion to inadequacy, includ· ed the Ii:>II~nt (I)the lack fA a rwonabIe required local taJCation al a standard rate; (2)the cre..tion of matching granl programs by the state which reward locaiw effort and wealth; (3)the lack fA an adjustment for wealth in the allocation of stale funds; and (4)the IacIc of uniform access to local taJCation at the maximum rate by tax allowed in other local school systems (t.u reform is inevitable in a sound program of 5ChooI fil\aJlCt). Achieving tquity would be a ... latMIy simple manner if the State assumed full responsibility for funding scllooIs and abolishedOr strictly uniformly limited-taxation at the Iocallewl. This is not ~ re..listic po6Sibility as ~ po6Sible ootoome is (Mlrall dimin· shed """,nlJf:S for public!dJools. What are the requlftd elem<1lt. of a Comtitutlonallystem? The Order defines tI1eK elements as follows: 1. The Slate ,hall establish a foondalion program that shall operate to "'"u,.., all child,..,n an adequately funded ooucation (I'. In; 2. School funding, both among schools ,)",Ioms and among schools within school systems. shall be equitable (I'. tn; 3. . .. shall requi,.., a unifonn local tax effort equalized by the State so thaI ewry school child shall receive an adequately funded wucational opportunity ... (p. 17); THE ALABA."IA u\WITR

18);

! I

. .. ,hall "'" the pupil. rather than the teach· er unit. as the unit for measuring the funding needs of local school systems and allocating fund, to addr ... tho •• need. (p. 18);

I •

The funding system shall t.lke into consideration high co,t fac· tors such as .parsity and geographical iso· lation .,,(1'.19); ! 10, A weighting ,ystem shall bt developed for ... students whose education is demonstrably more ._pensive ... (p. 18); 11. TranspOrtation shall bt funded as an item ... outsid< the foundation program (p. 19); 12. All students in the state shall be provided with adequate textbooks ... (1', 13); and 13. Punds shall bt provided for the ongoing soundness and adequacy of educational fadlitie. in Alabama (Order of Augw/ 22, /993. p. 19).

! I

",. Cumnt llatutea:, fbI gnnt prognm? The defendant argued the Slate operated a flat grant program as appean in F'ig~ I; that the .tate was lII'utral in the alloca· tion of state funds for public schools. 1m plaintiffs countered thi. argument by demonstrating this to bt a matching grant program. due to the large number of approprialion line items based upOn numben of employees rather than on numben of students (S« Awendi~ I on page 367). Thest tend to reward wealth and effort through a matching grant program Low Ialable "",,"3Ith local ~hooI5)I:IIems. ewn with 'ignificant rat ... of local taxation, simply cannot COmpele for these grants. Implementing a flat grant program which all ocates onl)l on the need. of students would bt a .ignificant fi .. t ,IeI' toward equily. Allocation of funds should be based upOn students and their needs rather than on number fA employees, NOVEMBER 199-t/359

CiWn a n..t ~I program, other equity ~ ~ local fof constitutioml ~. A loWly nrw b.mdation prognm is tuillion rtmlin: II) if local wation is utiliud. it ~ be uni. not I nta$Sity: the 1935 statutn can be upclikd. The question is formIy I't'QIIired 'II the local Itvtl; nI (Z) if local lDalion is .... whtthtr mothor typo of moo;km school R.....-a program, sud> liIed. GCh local school ~ .... hIW the ...... right to kvJ' iii powtJ' tqUa/ilotion. is pnclucltd by this onkr. 1rrtSj"llC\M of tilt type nI nk of taxll.llhoriRd any other Ioollschool>ysl ..... the typo 0( prug1am. two policy isit.ots mwt be acIcInssed by the ThtK rtqUimnmts r:xist it>\k~,~, rtly ot the type ot finance sys. ItfIislatun: Itm rmployed and must be a.c:commodattd through l tonStitu· O~ I-I'h.lt shall be the magnitude of the foundation program? tional amendment, lhe linchpin ot achieving rquit» in AlabaI1l/l lor both studtnts and for taxpayers. Rrquired disparate ratcs of (2) lIow much of thr cost shall be assumed at the Iocallewll WI wation will be WJC<;Jrutitutiomi .....orr the Liabilit» Order. I-Il>at Is. {OIIo>dlotion procnm? [quit» incruses in , fLl.! ~ prOgram ;as the arrooun\ of perA Ioundation (If"Ognrn is i SUU guarantee of rqual_ to I miuiblr local wation dKtusts.. A IIat iran! Pf'(Oiram is rno»t minimum (i<kqualt) 1tv!1 ot rtVfnues for taeh pupil. A lilal.e equitable when no Iocil tuu in permimd ,,1<1 the stlte could fully fund this minimum Itwl 0( rt\ll'nUt or it could ioSWmtS the full cost (no Ioc:aI tax kcwioy). Alloalion can titheT impoM' upon GCh Ioc3lschool S)'Iittm I required local shan fir bo ~ on in tqUll imount per pupil (unwoiatottd) whith tax dfort by nit. Tht yield aI this nquired local share I1t t/Jort WIIJTOt$ ~t ~ nreds in normally distribut<:d or for each IocaIschooI>yslem Ikpmds on its ta:cabk wealth I1t tu on in equal amount 1(10" studtnts rQually situattd (weiatottd). "pldly. Commonly. Iht Tht first casr produc .. ustSMd property VlIlut per horillo'101 tQuilV- like pupil is the wealth rTOtuun amounts for all studtnts. oJ wealth used. Tht required ll\t stcond ~ productt local v.m is the iIIIOU!lI ot veri/col tquilV-like Figure 2 rewnur nistd from I prwamounts only for th.odmts t1t)' tax with i SUotrwidt uni· with ,imila. oduutional form millage Tite (lu rile ntedli. In eithtr cast. tho ptr $1,000 of lSJt5Kd \IlIur) taublr wraith of local (lIS ACIR, lJecm>'- 1990, school Jy1tOfl\ll must play a p. 19). rtStrict<:d role in the deltr· ll\t tax effort required 10 mination of lotal funds product the lOXil th"t 01 ;wailibl•. Rfftllired the foundition .pending TWo prObltlTlll malot this LoaJ Itvel is the Sime in each I)'pe of solution unli~1y in Tu. Effort Khooili)'Slern. iO'Ttsp«\M ~ Tht ~nt is that to Per Pupil of il. property ....nllh per achitv! tquity. IocallUU pupil (equity for b.lpI.)'ffli). would hi\ot to bo ~ished. Beaouse the SUote contribu· Without tv!n comidtring lion equals tht diffuence the conilitutionil iUllu htlwten the foundalion revinvol~d, it would appear enue guarantee and the foolhardy 10 abolish cur· required local IihHe or nnt ad wtonm taxH (his· torically underutiliudj .t effort. state aid is gruur for less wealthy dislricts when the local Itvtl, when it is so tuing It thr .u.tewilk "It difficlll\ to kvJ' thmo in the 8tntrites i smaller IOCil lirst place. The Itcond it contribution. In molt ltatu with iouno:laUon prognnu. 10Ci1 ~t the Onkr specilitally ~riIJa the Ust ot local taxes in a 5Chool >ysltms ITIIJ' .ugmmt the minimum (adtquate) Itvtl oJ founoiIlion prognm. J~ooing with optional local tar. ,...".nun Or local IUWIOy (W 1bt iU"'" I new .1I1t aid program? AOR, ~ 1990. p. 20). 111i. ilistm in Figun2. I'roIIrams of Matt aid to local school systtms an cw..ifotd as The amount of state aid ~I .. local school .ystrm rtctivu is either a ftxmdalion progrom or a pou.oer tqUOlilalion prog"'m. aIo:uLated as follo":>w.: Usually no such program is ·pun-. S~le li<l programs may ust .. State x Number · (Foundootion x Number) - (rate x Val.wion) combillilion of these in addressing sptei,1 circumstan<,:ts. A where: S. the lewl of stalnid ~r pupil; foondation program can bto:ime. lor GiOllPk. a flat Qrant pr0gram when thr rrquired Ioc3lIuition ~ UfO. A ~r N • the nwd:ltr ot p.rpils; equalization proinm an Ixcomr ~Iy a ~ proF • the IoundlOtion levtl ot rewnur pro" pupi~ gram u nquired Ioalluition inc_ and ~ SI'tfId. • • the tax nu that GCh S)'Iittm must It.y, and V. tilt total \IlIur of property in the I)'Stern. inlI incrusa. The Remedg Orrkr nquirtS a foundation Pl09"7m which the Tht product (ri') is the local wn or rfforl in a IOundation legislatun must impl~mmt stalulorily and for whith. in the case P'OtIram (USACIR, D«rmber 1!J90. p. 42). 0( nquired local tuation, must pnsmt to the YOlIen of the; Mat~ Alloc.ation by a ltaCher unit baslli rather than by a pupil unit

DIAGRAM OF FOUNDATION PROGIWI

360 / NOVEMBER 1994

TIrE AI.ABA."IA LAWYER

Figure 3

THE ALABMIA MINIMUM FOUNDATION PROGRAM, 1935 c.

B. Altendmr:e Report.!

,, I

SWI)' Allotments an4 Principall' Suppltll1t11l

Teacher Unill

I It.

FilWlcilll Statements

I I . . Variable OMsor . . I Transported AOA Il I I

,""",

til

0.,,,,

Capital

CUTTeot

'''''''' (.)

Tn.Dsporta.tion

I (. )

(.)

T. .. ,\linimum Progrun~1

Subtract Public School Fund Note: $pedal Educalion chaogebac:k no! Stalutorily permitted.

h) (.)

TH E ALA6AMA tJlWYER

,"'inimum Program Co.st From ASElF

in fact be a profernble pr~ure to meet student and sjIOtem needs ~ooth units are common in foundation programs). Currently, any planned education reform in Alabama contains standanb regard ing claM sius, To accommodate such standards, it is logical to C(lmOlidate th<M costs associated ....ith funding a classroom inlo an allocatioo unit Allocation by teacher units is predicated upon a student's educational n~eds, The obvious mathi>matic>ol equivalency betwem a teacher unil and a per student unit is tile ratio of thi> C(lmOlidated costs to tile number of students (sludenl11eacher ratio) ~ costs will ..",., This ratio should ""I)' by grade and so should required costs. Tbt Alabama Minimum Foundation PTogram of 1935 The Alabama Minimum Foundation Program created in 1935 was based on the factor3 shown in Figure 3. Funds were allocat· ed on tile teacher unit basis, one teacher unit for .ach 28 pupils in .....rage daily atte~ statewide (Note: teacher unit impli.. all costs necessal)' to support the teacher unit no! just a salary for a teacher), The Stat. Board of Education was statutorily authorized to adjust this divisor nominally for <:trlain oonditions such as $p/Ir3ity of population where a remote local school needed a teacher even if th.re ...... re f.......,r than 28 pupils in ADA. This ITIil}>

, ,

SlIhtract Required Lotal Effort (Chalgeback Stala-..ide. $4,676,485) Requred local T~IIOO 8QU8Is 10 mills 01 its lOU·based 9qUIValenl,

....."" and is an ~ffective adjU$tm<nt for pro/:ll.ms usociated with school si.., ..... h.ther a function of spanity, geographical isola tion, Or deruily. In addition, tile modification of this divisor in F'Y 1988-89 (the Smith Bill) to \"al)' by grade Ie-~l effectively added grade level ....~ights to OUr curnnt foundation program, E.l.c:h school5}~tem's allocation is on a per pupil basil adjusted for claM 5i... The t.acher unit consolidates cost! for wuiu, funds for support services entitl.d"other cu ...... t txpenM," and funds for caplbJ ou~. These cost factors were to be adjU$ted by the State Board of Education on an annual basis. Fund. for transporl>tion , the fourth cost factor, we .. pfO\'ided for those school syst.ms ..... hich nwt stale requirements to operate at ,tat. expense a school transportation system. The detennination of the required local share or ta:t effort in the 1935 statute is common today: local ta:t •• would be included in tile foundation program-the ad ""Iorem ta:t-and would be unifonn statewide , Each local school system's required ta:t effort .....as 5.0 mills of the 7.0 mill. of local ad ""Iorem ta:t required to be lovied. This .....as each local school system's sha", of one half of one percent of total asl"md state ""Iuation (5.0 mills). The .....ealth indel< created in 1935 .....as the ~ oolwliQr! index. NOVEMBER 1994 1361

RMsi.., tilt AIIbamI M!<Iim"", Foundation PYvgnm

Tht Foundation ~~ conctpt is SliD tilt mosI ammonIy u!iliw,l $bolt aid Jl'fOiWIl in ~ today (AtFA, HISS; ECS/NCSL. 1988; NEA. 19Sn, Vet it IT\aJI not bt the only aid formula in ~II wu is other compOnrnll (lion) such is II guatantttd w. yi<ld Jl'fOiWIl IT\aJI bt IIRd in coojunction with tho foundlItion pro. gram. Iu edlKlltion de\otloped in AllIbtmIlIfIer 1935. two~· term d~loped which limited the equity prcwisionl oIlhe b.mdition J'I'I.lIV'lITI. Tht first ""3S tho disconntdion 01 the al· OIlation o(tho requirtd local wre or effort; the second was the awropriation 0( gentn.l school aid funds ouuide 01 the louncI;r.. lion program is ategoriclllllid. These CIttgorir.aI aid procnms " - brm 0( two typu. Tht first I)'pe c:onaislI 01 ttJjtlllOioeolts which should bt indud· ed in the /oondalion I!t'()gJan\ such is ttiCher unilllO redua: clas$ si .. or funding for fringe btllt'fi\$. Tht second consists of programs which are pfOl)trly ategoriClllllid wd which do not neasArily rtpftKIlt llJtnrn.l per pupillolloclltion 10 uch Ioc.al school system (n., ~ tduc;olion m:I vocalionlII tduClItion). Tranapomtion is oIlhis second type m:I )/>QUId bt allocated oullide the foundatioo progrllm iIS orderfll: '"Transportlltion shan bt fund.d ... oulsid. Ihe foundlltion progrllm (Ordtr 01 Augwl22. 1993. p. 19,." Funding for school liKililiH is 1I major problem. Tht Mini. mum ~ oon«pI induclts apillll out~ is II coM fiKtor ~ it was proptrly assumed IhIIt uch IoClIl schooIl)'Stml WO\Ild ha~ to bur major IUponIibility for its apitlll outla)' netds and thllt the buil ding progrllm should be tQualind through the foundation program (statewide bond inue for school buildings is II rew'MIy rectnt phtnomem). J",* Reese hal; ruled IhIII "Funds shall bt pw.ided outsido: the Iouncbtion procram that will tlirninW: iclmlifom dtfocimciH in school beil· itits ",ilhin 1M 15»)'WS •. ." This W1doubtedIy rtfm to pUt dtfi· dtndu. In ~dd; tion. ' Funds shall all-O be provided for Ihe on·going soundneu and adequacy 01 education .. l facitilits ... (Order 01 AuguJI 22. 1993. p. 19)." ·On·going soundness" requires OIrrmt revtflUH, not spondic bond issues. J\.Id#: Rtnf tnI:)' hive loIl\icipiUd two dilkrm mtdt· loIlisms lor ~"'I oullay. Tht funding system /or eliminating deficiencies in fiKili· tits and for ntW construction shall bt fquitablt <IOd shlll \lIlto into iKCOUnl: tilt OIrrenl stale 01 buiklina;s. the uist· iog apiw debt KTYicu lfId tu ~ity of Ioaol school systems (a-der 01AugusI Zl. 1993. pp. 19-20). AcoompIish'ng thil indiClltr:o IhIIt equity funding, it\iIyIis 01

fund..,.

fACSil-tlLl

(205) Jl&-9tll

(lOS)Jl4oU16

ANNA LEE GIATTI NA "~EI" WD<!OOF ................... SI>oU' ''''

AMI Lee 0;." ..... PC Tht r- ~ .. ~OII«Po.k

Suftlll'/ll1 a.-oA_s-lI - . . . . - ...... 'llOS

_._--_.-...- ........._.... _....-_.-...-

.......,.. . ............. . ........." . _.,.,. .. c.uo ........"'"

362 1 NOVEMBER 1994

bcilitits deficiencies, loIld ""'" bond issut pooe«ds should all bt addrustd simultlltltOWly. lfId their purpoltl and long·lem impliClllions ardully inttgTated. ColeiOflal Aid Program. Funding that is "'l'lItted for 5P"cific categories 01 studtnll implitJ full Illite amunption of costs. such ~ \nn$porWion. ou~ the Ioundation po-ogrvn. The ""'iChIirC system required by J",* Rtnf for JI)lCiIoI tduc;otion. a/..risk, nI \IOCltionlll edu· ClIion may wggut alloc.alion iIS calegoriClll ,id (Onkr 01Augwi 22. 1993. p. 18). By removing theK from the foundllion program. Ioal school systems prOpOrtion.a.ltly bur ooly the COlt 01 the amoral school aid prOCriIflI; ptogriIf11S which an: not gtntral in ...tUft an: lIESI wumed 100 ptrmII by tilt SllIIt.. The incl· <ImoI: 01 such eduatioNl tud!; is dirtClly lIlUIe ploblem, not , local problem (ex.. c:IIllI$Irophic costs in spKial eduatioo). Required local .Iuore or effort Required toc.a1 ./fort _ dtfined in 1935 is tilt yield of 5.0 milb 01 ltd valon:m In. This hiS not bmI upcbttd to reflect (M ino;rwed levies lIUlhoriKd geneQiIy or tilt ..1eCtM: Ioc.al levy .u\horillltions. Whe..- in 1935 tilt required IoaI twolion was 7.0 mills (the loIlII then with statewidt lIulhorization). the ttWli · mum authoriud today;1 approx;trl/lte ly 53 mills (with 15 mill! authoriud stattwi<k). School syslems IT\aJI not Ityy all iId ~I. orem tut:s w.oibblo. A IDundation pfterlllll"J rqualizalion illim· ited whtn lloc.al school 1)'Sltm',lotaI_ to Ioc.al ~ is not alcuIloled in tilt fonnuIa. The gm.1.er tilt ~riioa: betwetn the required Ioal shan or effort <IOd the muimum locaIlrvy. the It" the <!qmlization. Giwn lhat Ihe nnge of ad valorem Itvied lor school poJl'jlORS has it>CTU$td from 1.0 mills in 1935 10 awroximately 53 mills in 1993. tilt simplt _R# oIlhis range. or JO mills, could be required oIlIIlloc.al school ~ (requires Hnc:hpln conSIilutionlol amendmtnl). N; tilt rtqutred nulriltr 01 mill! dtcr&5tS. equity dtctU$H. Conversely. u the rtquirtd number 0( mills incrtaSH, <!qui\)' ;ncrtases. Another deYelo!>mml since 1935 has bHn both the statutory wthotWtlioo 01 tho IoaoI sales tu (including fnnchist, u<ist lind privileg" Heenlt tnu) for school pu rpo,..,J lind liS ~ utilization. To intruv tilt oquaIizltion d'fectNtness 011 b.mdilioo prognm. il must tal<e inlo iKCOUI>t tilt common Ioc.al W b.>5e approwd to fund school!. Giwn that owr 75 fltr· cenl 01 local school systtms today \I$t the tales tax (lI,-eragt one ttnt). IIOIllt standanlinlion 01 its inciclmot should bt de\otlopcd. This could bt 1ICtlIIlIPIi$hed by swutorily Itv)irC I uniform Ioal one mil saIrs In lor school purposu, which btttJjlld I part of the required IoaI mare 01 dfort. Tht w.tu tu wealth of a 10caI

Richard Wilson & Associates Registered Professional Cou rt Reporters 80<1 S. I'ffry Street MontgOmtry. AlabalNl ) 6104

264-6433 TH E ALABAMA lAWYER

$Chool J)'Stem btCOmtt it's sNirt d a uniform local one cent ...ks tax; for oaks taxQ the nltalUrt crl wulth t.<;Oma the &les Tax lOOn. Should other ~ be mille ~W!le to Joa,I $ChooI systems. sucll as the income ux. llimil.ir wt.1lth indu <XIUld be

....""""

Thm is diffICUlty in mwurinll the yield d

~ other than ~

WI on the bWJ crl ~ ...mm WI )'iekb. In Abbami. pnJJIeTty...ulth is its oltp\'Wal$td or fair mark(t value. MIlCh. prop. erty cumntly uo:apes the ljlpnIil.1I PI'(l«U due to WI abo.te· wlo~m

ments lind is un recoeniled

lIS

wultll. Additionally by

~ 373 (the "UcI Bill). "" property is discounted ~ ratio into lour cl;wa.. The mtewide IM17tIIe d

bf an theK

clHor:!. is lIbout 17 prr«nl Fin.1liy, the appIitlItion d ~mp. lions (homestead. currmt _) munI thai It:H than 17 prrnnl d property wulth is rdlKted in the w)'ield. On the othe r hind, \un lutll as the oala \un Irt blIKd upon the 100 prrant value d the ~ with rNtMiy ~ o=ptionJ PfO"ided. While an ad valortm w tmcIs 10 under· >tate tho wulth crl the local JthooI $YSIem, mwutinll the yield d oc.oo tueJ-...plIrticularly tilt sala tII-in Itrms d the ad val· omn t.u ttnds to OMoote the til rffoI1 inwMd. GI\Itn AL1hI.. "",'s cumnt w $YSIem, it is diff"lCUlt to fairly <QUale apacity. tffort.lIIJd)'ie1d.. The m(l$t practk.a.ble way to do this il through II unifonn Joa,I w Jeo.y. OtIIer issues sllCh. as the aP!'fOl"lriltlolu 10 loa! S(hooI S)'!ot."", by their rapedive city <XIUncils and county C(IOllmissioru may need to be ~illertd in llet.nnining rtquired local share. Taxes ....h ich au uniquely avai""l. to ceNin 10000lschooi systtms and denied to othtn sucll as tho gasolint w and fNt1"1l1 impact ai<! abo rtqUire r<Vitw.

Requimlloal taxation ....... Ul requlmllocal trfor! Required local tantion mwI$ thai a Jtandard ....1. 0I1oclI w· ation is rtQuired for ~r1 ici~lion In tilt foundalion program. This has hislorically bun 7.0 milll. H~r, Ih. stalt has usumtd lhat S()mt of Ihis requir.d loa.l taution should bt avail.ibl< fof strictly local t<Iuc;otio)rQl purpO$U, ~Larly QIIi. tot ootl.iy. Therrlore, Iht thlI~baclc or requimlloclll tfJort was only ddnmined to bt 5.0 milil. This munI thit only 5.0 d the 7.0 mills u.... mauiml _ lXInJidtred to bt iYall.ib1< to fund >late fduaotional purpoaa.. SWtd anothtr way, the only lIfTIOlIIlt the LrgishtUrt could spmd in Iht lIppropriations bill _ 5.0 mills 01 M/flirPd IoozJ dort. The otheT 2.0 m,uiml mills_ ~ricted ~ IoozJ /axatit:!f1 as _ any additional loclII w Jeo.y (loa! ~I. An ,~ isJuo lor tudul evaluMion in any rwised or . Ioundation proenm is ~ the mjUired loa! dk>rt shall be 100 ptount 01 the uquimllDal1llD1ion.lf the amount is 100 ptrUnI. Ihm loclII boiIrdJ 01 ed~ion '"'- no Ilexibility in IDal eduatoon INtU" OMr mel abo:Ne the minimum (...-hetht. it is tilled minimum or ldequau islmnlllttrial-it is still the mini· mum required by the sIlItd. If. IoclI gowming body has bffll unwilling to w iholf up to whal~r shall bt rtq\.Iimlu local tantion, il doanl SHm realistic thai (InCO this.- minimum levy is in pbce thai thert will be greal int.rtst in itv)'i"lliddj· tiona! \lila for loclII purposes. ~r1icul.irly to Poly fof a building protram. In facl, many Ioal taxa curr~ntly l<Vitd-some as .school Wles. sornt as city or county taxu-are pledged or tar· marked for retiring bond issues. How can tht w yi.1d 01 tht.. lwies bt counted as bting ,vailablo for slite roucational purpos. THE AUJIAIoIA

~WYE R

a such as k:>.wering studtn1M>rher I"1Itiolllt will bt important for state lawmake" and tducaton 10 dd.rmi ..... lI rtqUired Joa,I effort that is less than the required IDal taalion in ordtr to rec:. ogniu the validity 01 MI)' plodga and to 1u... 1ocaI fltxibility lor educatiorlal programs or lor capit.il ou~ . Court-on5end ON JII"OI1"I.mI Othtr ...... programs ordmd bf Judge R<e>< Include a $)'!.I .... 01 school rewards lor .. 1<VS!iu1 ptrlorman« (p.. 71. subatlIntiai sbft" dMlopiUlt, d (p.. 9). atn. sbft" ~ (p.. 9), targeted «JITIptIlsaIofy lISSisI."Ina (p.. 10).• SUIt pbn including funIIine 10 mini· mizr: non--scfIooI burim to luming (p.. I I), In wiy dUldhood dM~ prognm lor d~taged Iou.·ytar oId$ (p.. I I), Piuchool SftYic:a lor three to moe ytar!llds with dlWMlitia (p.. lIJ. Wquw instructiorW ouppIla (p.. 13), ItdlnoIoiI:Y acquisi· tion, wpport. mainlmince.lIIJd ~ dMIOlp",ent (p.. 13), and su/I" dMlopmml in JptCiaI education (G-der ofAufJvJl22.. 1993. p.. I.). Th<st lIrt new cow 10 the ~ Equity is not tffKted ...-iIh thr:st prognms funded outside tho foundmon I"'l&Qm. UmlWiona of I FouDdation I"roInm as duaibtd 1'ToubIaanr lISptCtJ mn3.in in rt\'iving AIabima',louno:btion program which au ptrhaps unique toAlabllma. (I ) The first is that without II >tatistially ugnifoeurt chugebadc many local school J)'S1mls '"'- built .. infra$lructure N..d upon an extra tOO 5Ubsidy from the >tat. (twnple, frina< bt ..... fits) and an a.uumption thit e...rytllinQ l<Vi~d at lilt 1oca11ev<1 is for local purposes. The corapt that IOIllIt or all local rewnues could be . ub:!umed by , charg.back and, In .fftd. caplured by the .talt to ~y for educational txptndi. tures cu,",nUy dirtctly funded by lilt mit Is a poIilially-

REAL ESTATE ATTORNEYS LASER SOFfWARE A co mplete line of Real Estate Closing Program s incl udin g II HUD's, Buyer & Seller Statements, Disbu rse ment Register, Checkwrilin g ill Deeds., Mortgages, Noles, & Affid avi ts w: Title Policies, Co mmitments I nd Endo rsements fIE FNMA a nd MOl re O ne ti me dat a enl ry, all calcula lions pe rfonned, high qu ality printi ng or complele document, with da ta, genera ted on pla in paper. CALL FREE (8 13) 763.5555. . .

NOVEMBER 1994 / 363

and financiall)'--ilifficult iIWI'. Somttlow, the concept of a hold twml..., d.~ on 5OIl1t combination of state and local resources on a per ~tullent ba.lis is ~uired in the Order (p. 19), but its implementation scmme has root ""en d«tamL Tho oecQnd ...... is local indiffereoce to the financial plight of schools and the lack of a tnlt iocenti"" for levying taxes. \'\ItIl tl-006e currently authorized. Local boimIs of education do root llave taxing authority is in .IOffie otho:r ~tat ... Equity funding requires substantial nrw tax reYl'nuu, unleM the plan is to reallocate current educational funding. Tho plaintiffs argued from the I><ginning that the intent "as to level uP. root down. In addition, a I1old-twmlw pruvision apparently PT(' dude. reallocation of current rewnues (Robin Hood). Therefore, wllat is the source of n..... fund ing to supplement less amuent local school s)'Stems? Where is the incentive to levy ....... local taxes for schools? S)'Stems currently levying Substantial local lme. have un<leT$tood that uces.s local reYl'nue (local tax rev-enue derived strictly from a tax rate in excess of any proposed state requi red local taxation) could be ~d to offset proposed reductions in state allocations Or redirected to new !blte requirement.<. The implemenbltion of a cllargeback in a foundation program is a painful transition for local school systems "'hich have impl. mented a lawful educational pnJ8r.l1ll in full compliance with state .tatutory and administrative code provisions. This scheme which alla..'td the..: local school s)'Slems to prosper at the <letriment of others has its anttadent in 1938 and in suo:;es5ive Slate officiais woo have bttn unwilling to addres. the <leficieocits which have existed. Tho Or<ler T(quires standardization of school system taxes: Authorization for local school system taxes (rates permitted, kinds of taxes authorized, etc. ) shall be uniform, so that all school s)'Stems have equal "",ess to their respecti"l: tax bases. and sufficient taxing authority to participate fully in the State funding system ... Order- ofAugust 22, 1993. p. 18). The ~Iution of the chargeback awaits the linchpin constitutional amendmenl (2) Alabama hiS designated education as the one fundion of stat. government wl-006e implementation is subject to local aspiration. When .tate government was reorganized in 19J2. the Brookings Institution Report lamented that local vote ....... re giwn tM right to reject taJc levies uniquely for education. the most important fund;on of government. This local indifference may actually be voter elCpressioo of distntSt of the governmental process. Initiative and recall is not ilIIO'",~d in Alabama. The closest to this is a vote on a local school ad valorem tax. Given these circumstanceo and the realization of tax levying authority by local board> of education in other statu. Alabama's school finance plan may have to renect significant pt<:uliarities to Alabama.. Judge. Reese has also ordered adequate funding: Defwdants shall develOfl a method for determining what lewl of funding is llI'Cessary to provide an adequate education ... (Order-ofAugwl22, 1993, p. 18): If the methodolOi!l' i. a/mllule adfllUQCJI, adequacy will be measured against statutory and regulatory standards for the Operation of schools: if relative adequacy. the spending lewl of other states will become a benchmark. This will represent a major palky <leci.ion for the slate. In a foundation program. the 364 I NOVE MBER 1994

apphcation of a chargeback effectively ~rts local funds, reallocating upon nm;]. Granted, a I10ld harmless should be instituted. Ha..-ever. the focus beeom.. leM for adequac}l and equity and more on winners and losers. Balancing adequacy and equity will lor"""", a difficult iMue, If the burden of instituting t<juity is through l fInancial aid pnJ8ram in which equity funding is i<len· tiroed as;tll its cost and impact ""'ltlld be more clearly visible to educators and palicy·maken. This might promote adoquate funding more readily. ThaI may be one advantage of a power Or percentage tqualization program. The Pnantage Equ.o.liution Program [n simplut temlS, a percentage equalitation program muru that each mill levied in a local school ~m mould produce the same number of dollars of total school revenue per mill per pupil (w.ightro or unweighted) in every local school system (Burrup. el al. p. 250). Such a program uses the concept of a State Aid Ratio (SAR) which defillf$ a mathematical relationship betwem Slate and local revenues: State Aid Ratio (SAR) • 1 - kjfcIFC) where: fe • per unit fiscal capacity of the local school system: F"C per unit fosal capacity of the slate; and k • constant selectro by state (less lhan I) The Stat. Aid Rat io on a per unit basis (teacher unit or ",eight · ed pupil unit ) detennines the state aid aliOC/ltion for each of these units and is a fuoction of local tax capacity, tax effort. and ,tate assumption of cost. To determine the amount of state aid. the SAR is multiplied by the level of expenditure required by the state. Obviously. if the state mandat.. the total per unit . <pendi . ture deemed adequate, the percentage equalization fonnuta has the charocteri.tics of a foundation program. The smaller the oonstant k is, the greater the cost of the program to be assumed by the state and more if left to local tax resources (AEFA. p. 5). If the state does oot specify ",hat the minimally adequate elCpenditure level is to be for each local school system, then this typo of percrntage-equalization program becomes a District or S)'Stem Pawer Equalization Progrom and simply assumes the cllaracteristia of the Guaranteed Tax Yield!Base Prosram (ASPA. p. 5). This is a .tate guarantee that each local schoolS}"'tem will have the ability to generat. tho i<lentical rewnue on a per stu· dent basis for a given taJc rate. It does root matter whether this is called a Guaranteed Tax Base (GTB) or a Guaranteed Tax Yield (GIT) becaus. of the convertibility of tax base to yield as follows: Yield. Rate x Base These programs are ~tual1)' ,imilar is the state fiscally neulralizes the effects caused by .....alth Or fISCal capacity in local school S}'Stems (AEFA. p. 5).

"add..,..,:

, .. W. H..... y ~. W HIIovey received IIio ~

"""""11'_'

... p/>ysIcs rid cl>ernistry kom MilIlOilO College. & ""'.,."., <l8gr" ... phy$<>Iogy rid ~. jrom Uroi¥ero;ty Medocal Cer>1<If. Jacl<8ot>. ",,",",ippi, rid • doc"".", door" ... rid pOOIlcai ocionce kom _ '-"-oily He •

fIduC&!>O<\aoI_a,,,,,,

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to lho Gcwomor'. Ed\.OcatIcwl Reform TIM Force

THE AlABAMA 1.'.WY"iR

Ontt the state drtermine:s the tax rate that it will allow to be w.akest local school system to offu the same quality of procounted in this matching grant program MId the yield 00 a pu gram as wealthier ones and 10 make the lim. kind of local student basis that it will guarantee, the state allocates to each funding decisions as made by Ihe w.althiu onts. This partnulocal sct.::.ol systtm the amount 0( revenue that will be necessary ship may cease once th e local 5Chool system's local leI'!' to bring the yield (/. the local tax 00 a per student basis up to the tlceeds the stale mandate, Or the state !1\IIy ch()()M' to plac. a state guarantee. Por uample, if the state guarantee for a gMn tax premium on additional local taxation of a specifoc type (ad valrate is $1,000 per student and the loc.al\M yield for the giYen tax orem for example) and institute a tax poliq by expanding the guaranteed tax yield beyond the level of required local taxarate per pupil is $200. then the state matching grant is $800. For equity, the guaranteed yield ne.ds to be 100% 01 the highest lion, A r;1tional fear may be thai local determination. of local yielding local school system I~ cou ld be so high as to in the state on In Innual deplete availabl e state basis. This is the principle funds. However, the state inrorpOrated in the medialed is free 10 dictate, within settlement for FY 1994-95, Figure 4 the boundaries of conSlitutional requirem e nh, A two-lier PTOPOIII: flat just how far the p."tn •• _ grant and guaranteed tax yield ship extends. Another option available to the While not uniquely a slate beside. open-ended foundation program, a two0. capped is reduced tie. school r.na~ program equalization in which suefor Alaba!1\ll could meet all ceMi'Je mills Il."Jied beyond of Judge Reese's requiretho~ required are equalment, (see Figure 4). POT ized al a diminishing rate Ti er I. a nat grant on a of return, a sliding scal e weighted per pupil buis Optional (Burrup, et. al.. pp. 250provides an equal amount of Loa! 252). In any case, it s«ms slate revenue to each SluTaxatioD unlikely that any local dent equally situated. This governmental unit will fl. t grant most closely undergo ucessive tauresembles what Alabama lion. currenlly provides through A value of this program slate funding .nd should in terms of tax irn:rea.s.es at contain the cost factor:s of a Ihe slate level (adequaq) foundalion program (this is that for such ~ program will M in fact a foundation 10 uisl. a s~p ..ate fund program with Ihe chargebe created in Ih e should back equal to uro). Tier II stale Ireasury for the purof the funding formula po$I' of Ti~r II. This fund '. could be a guaranteed tax reve nu e requirements yield program based upon would be based upon the equity and adequacy decisions made required local tax taxation (the linchpin constilutional amend· by the legislalure. All would clearly ... where funds are placed menl) for all local school s}"tems calculated ot 100 ""rcenl of by priority: new program initiatiw, Or equity funding of the the yield of the highest·yielding school system of the stale. This general school aid program. will ha,,,, the financ"'l impact of a foundalion program ..... ith. chargel>ack, but eliminales the need for a "hold·hannleM" proCOIlclufioru vision and negates the fear that current m",nues will jll.\t be Alabama', Minimum Foundation Progr;1m law of 1935 can redivided. The addilional optional local taxation was presumed with revision acrommodate the modem im\nlctional wo.ld and to be in existence with. foundation program as il was not preprovide for adequat)' and equity. Whether the revision is major or minor. Ihe two basic problems described above must be cluded in Judge R....·• Order. Mathematically, the.arne result is ootained ..... ith a different set of funding principles. solved. (I) How much and .....hat typo: of ..quired local effort shall Outside of this eqU/lliud state funding program would exist be considered in the equitable application of the foundation prothose categorical aid PI"OIIrarTl$ (line item appropriations) ..... hich gr;1m? (2) What shall be the magnitude of lhe foundation proare defined as being full state assumption: .peeial education. gram: will it erooompa5S all the categorical aid programs defined vocalional education, at·risk students, transportation, pre-scllool as necessary in the past to operate the scllools; and a.. lhese revPI"OIIratl15, etc. Treating lhese as categorical aid programs neither enues adequale. The critical problem to face school flllanee ..fonn is IOCCi'S5 to revenues al the locallewl and lhe state lewl. enhances nor diminish .. equity, si""" they rep,..,..nl only..,.,. cial n«<is of students. No fina""" program will meet Judge Reese's Order without rea· This type of program places the slate in financial partnersonab~ local taxation. Nor will any such program ruch equity ship with each local school system. allowing the financially and adequacy wilhout signifocant new stale m-enues. The lawsuit

DIAGRAM OF ATWO-TIER PROGIWI: FLAT GRANT PLUS GUARANTEED TAX YIELD

! I

THE AlABAMA LAWYER

NOVEMBER 1994 / 365

was irl$lituttd on tht ba$is at idequicy iIOd fQIlity, not unspeci. fial school rrionnl. This an be KaJ!\'lIIIishtd with I pu~ b.rndation program or I pu'" p(JWrr ..,.,wizltion prognm. 0.. it (In be Ka,:mplishtd try I combir\llion at the twol. III $UCh I Olfl'lbinition. the fo<mdotion program could btcomt I llit grant prognm with any dtgrH d complnity in rost f~ors the ItgiJlatu~ migltt desi.., . including the eompluity of any cont.mpOl1lry foundation progrJm. Thf impOrtant pOi nt is that studmts with equal nttds would be trut· td tqUi-11y (wtigltttd). The chargebick 01' Ioal rtqUimi effort would be uro. thus t limirWing pnlbltml associottd with a holdharmlw iIOd 11 cIvorgdtack. All ~ ~ Ioc:aI WiIlion (the ~dthe hhpin CQnltitutiOl'llllllmndmmtj. T'ht procus of ..,...Iization oa:urring through a p(JWrr equalization PfCIinIll such lIS I~' iInIeN WI yield. migI:1t be ill! lltooM option lor AIlIbama. This could OptrJu by Ik'unnining just whit rJU at the YtQlIired Ioc:aI Wtation will bo: cqUi-liztd. This ~dit iOl'lllI allocation would bo: made to local sch:loI ~telTll to. in dfect. pffMdt them with tht unmtricted local tall moenue! that wtalthitr schoolsysttms ~. No (rot would be pmalixd., iIOd tq'Jity would be attained through ~ .....:" tll .llocation! which would mjIIi~ lint 5tlle wes. Tht plaintiffs clearly Ik'rnonstrJUd to tht Coort tIvot the cumnt moen.... ~ for public tduWion in AIabang is ...... qultt. If In lI!tqUi-t. rducatiOl'lllI pl'Ofrlm could be attainrd through grooM. thtn thert Will no twis for bringing this ~iL Tht AS£TI' is already earrrwkrd "ilr rducalional purposes only," Thert art man~ ways to lCcomplish tht duirtd rt modi u orde rN by Judge Reest. P.rhaps. tht grutlr the complexity 01 tht JITOIIOKd solution, tht longer it will tal!t to bo: lCttd upon. and I ru tu the dirtlculty to bring conKnsUl for Itgislative

Irtion. BuildillQ ... .....,.wlly upon the program alrudy in pilla OCCUr with a widt nwnber of vaNtiono pOSSible. EiCh d thtK varilltions should be IVIiIabIt to policy-!\'Ill«rs to allow thtm to ~ iUl irokw " otd decision about whidl is btst for the IChooI children d AlabarnlI iIOd its ~rs. •

(In

BiblioCraPbY Amtrican Education ri lli/'a AI.5ocio.tioo. Pubfic School Finarra I'rograms inlhe Uniled Sioia (1fI(/ Omodo: 1986-1987. Richard Salmon, Chrutino Da\oO/$Oll, Stewn Lawton. iIOd 1homas Johns.

•

Sarasota. I'Iorida: tht AI.5ocio.tion. 1988.

Burrup, Ptrcy E.. Bri mlq, Vt rn Jr., and Gufitld, Rulon R. F'inlmring EdumlitJn In A CJim<JI' oI~. r iM Edition. Allyn and 8icon. 1nc.. 1993. Circuit Coort d Monlgomtf)' County, AIaIwna. UobiIilN Onkn: doltd AuguJl 1J. 1991 fltId MwrJr 31, 1993, ond Ilemedv f.Jrd6 doltd 0c:t0IJer 22, 1993. by J~ Eugme Reest. Cast NoJ. tv· go-883·Rmel CV·9I -0117·R, Education Commillion of tht StattsIN~tiona l Confertnce of SblC Ltgis~tura. School ~ at a C/Dnat. o.tMnh A. $IC#fI. iltnYtr. Colorado: the CommiIIion. 1988.

"tr·

Gte, E. ConIon.1I1d Sperry, IRvid J. EduallitJn Ww and 1111 Public SdtooIs: A Qao.rpttlCi'ium. IIo6ton. Allyn and 8icon. Inc.,

Nitioml Education Associition, IJridvslondil19 Sial, School F'inorIceFormulas. Washington, DC: thtAssociation, 1987. U.S. Advisory Commiuion on InltriOWrTJInental Rdation$. Thtz Slrudure af Slole!lid 10 Elemmlar, ond S«:andary Ed!1C<llicn. \I,'lIShingtoo, DC: tht Commission, Otcernbo:r 1990.

ALABAMA CENTER FOR DISPUTE RESOLUTION ht ~ Cenltt for Dispute RnoIution, lotated in tht ~ Statt Bar offices. is now fully OptrJtionll. It maintains educational and TtsOUru mattrials and a roster of mediators for UK throughout the illite court sysitm. Administtred b)' Judy ItHCan {J.D. 1986. Catholic Unr.~rsi· tyl. the Ctnltr is beinl de\'tloptd into an altematr.'!: disput~ rtSOlution I11iI\ll!fmtnt, coordination. research and <It\>tlopment office simil/lr to dispute centers dtvtloped in othtr statts in roetnt)'tolrs. OptrJting ur.dor tho supeNioion of tht ntWly~reatrd Alabama Supreme Court Commwion on Dilpute Resolution, and in conjunction with the Alabama State Bar Committ« on Altcroati,'!: Methods of Dispute RtsOlution. tho Center I'>illl11il\ll!f and coordinate all alternative dis]l\Jte resolution progrJms in tht State d Alabama.. The Center will K"'~ as a clcarinl howe for ADR information. It will provid. support to Iou.I bu association ADR commlll«5. usist with tho prtlCntation of AOR Kminars. maintain statistical data to Mlluatt tht efftc· IMntsl of ADR programs. wist statt ~n.c:ies in implemtnt,ngAOR concepts in tilt adm,nlilntJ\'fc process. and work 10 promott conflict resolution programs in tht court!. schools and neighborhoods. For information about mediators. to rtllister on tho Center's roster as a mediator. or to obtain information about AOR materials or tducational programs. call the Center at (205) 269·0409.

366 1 NOVEMBER 1994

TIlE ALABAMA LAWYER

Appendix 1

APPORTIONMENT PROCEDURES FOR STATE FUNDS FOR ELEMENTARY AND SECONDARY EDUCATION. FY 1993-94 Financill PYognm and Unt Item of Sut. AllProvriIlion

It.m I-

II.

Financial Alli, una PYognm Mini mum PYognm And Public: School Fund A AIiOOltion Based Upon Number of Students l. Public School Fund 2. Minimum Foundation Program

Bull of Apportionment

Based upon 1978 School C. nsus Based upon Avtrage Daily Attendance

Fi nancial Allil lance PYognm Local Board, or Ed ucalion

A AIiOOltion Bastd Upon Number of Students I, Additional AIlOOltion for Special Education 2. Additional Elementary Teacher Units, Grades 3·6 3. Carfer ladder Salary Increases forTenurW Teachers 4. Driver Education Teacher Units 5, Elementary Guidance Counselor Teacher Units 6. Kindergart.n Teach. r Units 7. Library Enhancement (K-12) 8. Maintenance 9, Special Eduaotion Teacher Units 10. Supportive Teacher Units II. Teachu Aides 12. School Bus Capitol Outlay 13. VOOltional Teacher Units B. Allocation Based Upon Number of Employees 1. Classroom Instructional Suppli.... Grad ... K·12 2. Kindergarten Instructional Supplies 3. Social Security-FICA 4. Support Personnel Personal ~avt 5. Support Ptl'SQlUl.I Sick ~a\lt 6. Support Salary Increase. 7. Teachers' Personal ~ave 8. Teach...· Sick ~ave Reimbursement Ill.

I'.

Based &.td Based Based Based Based Based Based Based Based Based Based Based

upon Enrollment in Grades 1-12 upon Enrollment in Grades 2·6 upon State Teacher Units upon Enrollment in Grade iO upon Avtrage Daily attendance in Grade. 1-6 upon Avtrage Daily Attendance in K upon Enrollment in Grad ... K·12 upon State Teacher Units upon Enrollment in Grades 1·12 + Childcount upon Defined State Teacher Units upon Avtrage Daily Attendance in Grades K-12 upon units in service buil t before 1978 upon Fonnu\a Devised b)' SBE

&sed &sed Based &sed Based Based Based Based

upon State and Local Teachers upon State and Local Teachers upon State and Local Teach... and Employees upon all Support Employees upon all Support EmplQ)ll'es upon all Support Employees upon State and Local Teachers upon State and Local Teachers

Payment. On Bohalr A. Allocation Based Upon Number ofEmploy..s I. Public Education Employees Health lruurance Board 2. Teachers Retirement System of Alabama 3. Unemployment Compensation

Paid on Behalf of all Stale and Local Employees Paid on Behalf ol all State and l.neal Employees Paid on Behalf ol all Stat. and Local Employees

Programl Of Stale I>tportm~nt of Edllcation I. Textbooks 2. Adult Bask Education 3. Commun ity Education

Based Upon Student Enrollment Based Upon Program Based Upon Program

Public School And College Authority l. Proceeds of Bond Issues

&sed upon Authorizing ~gi~lation

THE ALABA.'1A UlWYER

NOVEMBER 1994 / 367

"In my first monograph alone, I'I/e already found information and idellS rdel/anlto the majon'ty ofcasu I'm now handling," SCOTT BAL OW' N I t h U MAL" Tu n

Alrcadf used boj seltet subscribers in 37 Sl1Ies. Ihe Independent Counsel Re$oul(el Monograph Series is nco.' av.Ulable follhe fim rime in widelpread Itlease ro Alabama's aUOIRe)'1.

Wriuen and edired by Francis Halt,)r.. each )0 to n pa&r monograph offen cxhawriYe ItXmh and anaiym oil single (rilin! iwe now eunmr in civil lirigarion-aOO includes comprehensiYe listings of up'lo,date COurt opinions (bolh published aOO unpublished), as well as mrnsiYe bibliographies of rdared reading materials, AI a lubscriber, you'll rteeiYe your quanerl~ monographs in boUt hard coP!'.mddiskrrre-Cflabling ~u 10 insr:l.fuly access and urilize rht information in 1 bro:\d range of your own use' prepar:arioo dToru. Older oow,aOO R 'II ICOO you our fim two monograplu Informat ion Sluring and DiSCOl'rnbilitf of Compurtt Darahasts-immtdiale1y, fur I complm list of future 10piQ, ask for our broc:huf(' by phone 20H9)],2400, or FAX /9~I,2404.

M O NEY

e", CI(

GU ... " ... NTE ..

If you arc DOl complerei)' sinisfied Wilb the qualiLY of your fifSllWO !IlCJIlOgraplu, mum them 10 us-and R'II !d"uoo you the COS! of yout $uh$criprion. A~"'8"'''''''' L ... WYER I SH""U THE'" C O ...........HI AB OUT BROTHER H"'R E'S M ONOGR ..... H SERLES: "/ WIIJ

gellllintl, llirpristd by Ihe IIlImber ofdfatiolll and quo/eJ l'd IItver sm, befort." UM HoO' •

. 'Wl 've already sttn significant savings in the unfold hQlm ofrestarrh we "''OlIld hare oIDer-lI:ise h4d to (ondllff Oliffel"J.'· .... u ....

"/ (all Dollml, JII] IDal fM fonr 'slibra" wollid be OIlI'Of-rblt WilDo1f1 Brothers /1follogr,Jph senes. " JO"H H ••••

I~O[~(.~OE .'ff

Cot ' 'SEL

RESOURCES TO SUBSCRIBE, UND YOU"

C:"KC:~ ~ O" ,H!I

TO:

Ind.prndrnt Coon",1 RtSOUrrn I p.o. Box 1341717

_I"

Binninlham. AL 111l11·0717

PI,." ;pt,ih ,IN fomul.~t "",CW,OM

{,1, fo' ,.., t'K"''''

by Roo.:rI S.lIon Smith

ues a.rf whl.! '« ~ for j (MHud SOcitly, Olivtf Wendell Holmes. Jr. d«b.rfd in Cqmpania de T~ v. CfJII«I() •. 275 U.S. 87.100 (1904). Tu .donn deNte. as to how our SU,lt tu I)'Sltm should bf: slrucl\>rfd to htlp educale ,nd it""" a civiliud society in Alibama. hu he retofore focused on the need for

fairntn 'ml equHy in ou r .tatt tu

system. C. C. Torbotrt. Jr .. ellai. of 1M AlaN· IN CommiloSion on Till and Fiscal Poli. cy lI:.fOllll (tIw "Commiuionl. 1990-91 (lind formn chid justice of th. Sup".... Co ... rt 0( Alahinu.. 1917-S9) wrote in 1M Spring 1992 issue of th. AioIJom<l UJw Rmeu> iu put of S)....· pOOum: PropoMd Tax Rtfo"" In AW>lo. mal about tM unfllima.s of the pusent Alabama IiJIl)'Sttm: ~ Commission found IIIaI OUr pruent til systtm is simply unfair. II is reQrn.i"" and lack.. roordination.

Tm: AlABAMA LAWYER

ITIIle CommiUlon decided it wOI,Lld (o.m"llIl. a systtm that would be ~nue ntutr.ill, thereby Invin, Iht decision" 10 !>ow much m/tnUf i5 IIftdfd to fund lIovunmentll urvict to those who are elected to mah such okdsioos. One ctnt ral theme underpins ~11 of Ihe Commission's r.com· mend~tlonl: broaden Ihe lax baH and /ou;vr 1M lax rale. 4JAW. L RftJ. Sll. S36 (1992). Then GcMmor Cuy Hunt. in OctobtT ]9'92, appointed a Tn RefoTm Task

Foret . chaired by ThomllS N. CITruthors.a Birminghllm we lI'o.,),,!r, ...ilh TtJlRHn~ti\IU 01 fdualion and oo.iMSS intuUIS. to promote I COmpTe· htruiw: ~ck&ge of 11.1 and eduation reform bill. in the AIIb.1rm Itgislaturt. The rdorm pi(k1Qe of some 33 related bill. dealing with tIXU. education accountability, and budgding proc.· durts died in the legislatuTe in March

1992. bCept for two bills (H. 246 and H. 247) modifyintl the incmtives for industrilll drvtlopnent and prwiding " __ • tirm rtportinQ rt(juirtmtnt (In Wit . . of ind ... trilll dew:lopment propaty. The Alabima we rtform SiIlIl>is coo· tinued. Ad.qUIII. funding fo r AlabalTlJ. public school. i, now the subjecl of unprecedented (in Alabarml liti gation regardinQ constitulional and due proCt$.l requirtmtnlS fOT funding the 129 public primary ind Hcondary "hool systems in Alabl.mll. A Montgomery County Circuit Ju\lit (Judg<e E~ ... W. Reut ) has determined the prtunt fundintl mtthod to be constitutionally unbi. and hal aIled upon and dtr.rnd to the leaislatuTt for rt .... dilll action. AJab<lma Cwlilion fM £quil,. Inc•• et al. v. j,'m Folsom. No. CV9O-883R (Ci •. Ct .• Montgomery Co .. All.. filtd 1990). To date the Allbama Ugi.litU T. has failed toacL This uticle presents an overview of the present Alabama tax system as a NOVEMBER 1994 / 369

muns 0( furthering lhe lIt!),t. on \all; rdorm in AI~bJmll. (Stt hmn D. 81')'«. Tax Reform Iswa in AJabtmuJ, ~ AJa L Rtll. 541 -599 (1992). Pleom iCUp! A$ J ....;or premist 01 this ITti· ck. in ~"lI our praml SUI. $)'S' lem of liullon. 11\;01 an incruse in Slalt tu ~nun 0( ]5 10 2() Pl'rcenl (in lIddilion 10 Ille uswol annwol rev· en .... incruHs. whkll ire lICCompanitd b)' innlliion ~nd 11K usual !/(Mmmenl cost increases) is urlltntly. meaningful. Iy. ~nd vitally netded to provide minimum. adeQuate and equilable funding for tht public ",hool systtm and gener. al ~mment in AW»rm. AW:IaITli ltate \all; rewnues. this year (FY 93 · 94). nt nptcud to equill appro.imllttlr $4.5 billion. SlIIt. lu r('ltn .... ' (not ind\Mlinllloc.ill<Mmment \alI;fI) illst ~1Ir ~"' about .54.2 billion. Tht annwo! increases in slllio ft\'tf1 .... from illst year to this ~M will ~ quickly consurncd by pressing gw. tmment cost incrust$. Approximlltely thm:· fourtlu 10 four· fifth, of this ~lIr's stalt \/Ix rtWnue i. allocat.d to support public education. and about ont·fourth to one·fifth will bt U$td to support gtntTII state govern· menl. AI lUit S67S to $900 million in OOditioNl $Ule tu revenue is nttdtd to bri"ll OUr schoob n ameral stat. ""'" HTUnent up to awntl' lI1lOIIlI the staIeI in this country. About 75 Pl'rttnt to 80 Pl'rant would go to the public schools n tht rerrlliTllirr would hrlp fund gm.. tnl g<Mmmenl. The nttd is luge bot not br)'OI'ld our ruth. A 15 to 2tJ porcmt tn ;ncrult should do thf job. Such investment. ~ now. will yitld tnor· mow future tcOTIOmic. social. and cui· tural dividends to the plOpl. of Ala!),rna. Alabama. today. has a population of aboul U million peoplt. Approximately 26 ""mnt 01 AiaI);ama', people are WIder the 0I18)'UTI. The$e, IT>()R thin one million. childr.n rtprt$.nt Almmll's grnlnt promilt lind poltntill n."" IUOUIU. Our ltal. is blnHd with owr 51.000 iqUlrt milts of bellutiful bnd. Ahlwm's gross state prOduct (CSP) is tstirnaltd to rnch. this ~u. ippro.i· mIIltly $78 billion. Tht tOlllI porsoml income of our (itilem (Ind tupa~l"I) will __ h Ibout S71 bilJion this year. Our per capila GSP ""ill be about S19 thousand • .-.:I our ptr capila Pl'nonal income will be about Sl7.3 thow.and this yea •.

370 I NOVEMB.:I! ]994

The pOpu~lion 01 Ahlwm is grealer thlln tht popullition of ibou t 71 of todlY 's world of .om. 191 "IIions (iCCordi"lllo the World AJmJ;m« ami BooIt tJI Facts. 1994). AIWmo.'s popula. lion n tCOIIOIII),. for IWlllplt. is !arttr Il\;on thlt of Irtland. Ire lInd has " popuillion of ibout 3.5 miUion ind .. grou cIomestic product (COP) 01 some $.39.2 billion (199]). Irtland'l 1991 Pl'r capiti GOP ""U SI1.2 thousand. Compue Alabam. with N01"\QY The POPUIlltion and tconomy of Alabama is comparablt to thot of Nor· way. Nor'Wlly', population in 1992 "'... .. timited il ~.3 million lind its ]992 GOP WU S72.9 billion. ~r capila COP in ~ in 1992 WH S11. 1 thouwM1 The purpose 01 thtM comparisons is to show the slanlrl(lnt nl"liw siu lind strcn&th 01 the poutnt AIab.m. popu~. lion n tconomy. Puceived on II worldwide bilis. AW:Iama i.an idvanctd. ~II-dtwloped. industrialltat. and tcOnomy. Considtr Liberia . for txamplf. which had a 1992 popul~tion of about 2.5 million. The geographi"r Irn of Liberia is 38.250 IqUIf. milu. The COP of Libe ria. in 1989, ""U lbout SI billion. Tht ptr capita GOP. in 1989. of Uberia ""U

5440. HondUTQ

Comp.uiton of AIINmII wilh Hon· duras. in Ctnlral Amtria. for rumple, makes the W'I'It point. Honduras has I popu~lion 01 5.1 million (1992 tst.j. Its gtogrlphicllllTU is 43.277 sqUire milts. slightly srnalltr than Ab.barna. Hondu.u. in ]99 I.l\;od .. GOP of $2.5 billion and I Pl'r capita GOP 0( S5 16. ro~ign

tu 'ysl,m Thf lotal tax burden of molt of the indUlt.ialiud world is iii gnat or irt.aot .... than thaI of the poutnt system in Ahlwm (includin& lilt ,.... raJ gw. fmmwt"s leviu). In Irtland. the maxi· mum Income tax rat. on indMdwols is 48 Pl'rant. CradUlttd indMdllll ntes bcjin II 27 Pl'l'Ctnt. The <;orpoqtion \all; ralt is 4() peretnt The Value Mdt<.! Tu (VAT) of 21 Pl'rcent i. Itvltd on many goodJ Ind uNiee •. Capilli gains ar. taxed at a ratt 0( 4() percent Norway imposts I VAT at Ihe rate of 28 percent on the SoIlt oI!loods ilTId Hr·

viets. ~1'1OIlI1 income \all; is levied at I maximum TlIIt 0128 ptrttnt on IIDbk income. The (OtpOTlilion tax ntt is 28 ptrtmt oIl1Dble income.

Alalwna t.u ,",rOtn This )'!.Ir the peopl. 01 Ahlwm ..;11 pay in tax TtV!nUtll about S13.7 billion to the federal IiOWmment. approximattIy $1..5 billion to Jlat. IiOWmment. n in tstimattd $1.6 billion to 001 g<¥". emments icitin and counties). The total tax burden of Ala!),mians. an t ltimattd S19.8 billion. repreHnts 25 porcont of ou r stale CSP. Of t his imOunt the statt's ~re ii 6 Pl'lUnt. the local share ii 2 ptretnt, and tht ftderal portion is 17 ""remt. iT'htsf. estimates Irt dtriwd from Th, SlatiJfi(Q1 Abstract of th~ llnilaJ States. 1993· ]994. n The fJni· HrS41 Aim<mQC 1994: 1ft (/00 (AnI", lor /JusinaJ ami economic ResNrch. AJahtmta ECMOnIK Outlook {I994 )). Thuc Wfr. 1.7 million ftdtral incomt lax rdurns filtd by AllbalT\.l tiXpiytTJ in 1990. ,nd pruumab!y ,boul that lime number of rdu rns ~rt filed ""ith the Slalt o.partment 0( Re~nut. Tht 1992 Pl'r capit .. IIIxe5 paid b)' Ala!),rna citiuns to tilt lederal govtmment WiS SJ.I77. This .tprt!i'nttd 76 pereent 0( the U.S. awrillt. Alabama citi.,ni, howtvtr. rt<rived i prtlty good deal. In 1992. the f.... ral !/(Mm· mtnt sptnt $1.920 Pl'r capito in AIiba.. rna. AWwniins paid about 65 emu for uch <IoIl.I.r rt«iYtd. ConntClicut. the ltalt with the high· fli PI" ClOPIIII Pl'nonal incomt, did not fart .. ~11 U AI,barna. Th. 1992 Pl'r capitll tutJ plid by Connecticut citi· unl w.. S6.2S6. That ~ir the ftderal gowmment IPI'nt $1.846 per ,apita in Conntclicu t. The ptoplt of Connt cti· cut. thtrtfort. paid S1.44 in federal tax •• for fIlCh dollar r«tMd. Alabama t.uu Tht PuI"CQ Reporl (I publkition of tm Publi( Afflira RtStlreh Council of AIII!),mII. Number 20 (I994 )) lists tho sources of rtwnu. lor tht AllbalT\.l ~lIItf gowmll1f11t for FY 1993·94. The 10IIII t.u rtvtn ..... U prmously slattd. i. estimat.d to be 54.5 billion. (Tht total 'IIItt ftYtn ...... including f.lltraJ sourcn, IOCil sourcn. lictnses. ftts. college and unlvtraity r(Ytnut. hospillli ftu 10' HNkts. etc .. art projected at SI().2 billion).

TI lt: AlABAMA LAIIIYER

The "big mules" among sute tun (och oIwhich gtntR.w OWr $100 mil·

lion of rt~nue annuilly ) IU : stlte incomt liX. gtotlCll 5oI.Ies and _ tlXts. "Icoholic beI>r!'a# tuts. insunnce premium tu. motor fueb and oils tun, utilit~ grou r«eipts tax". 01<1 valorem (property) tax. and corporale franchise til. About 90 perctnt of III .tate tn ,evenue is produced by tht.t eillht 1iIU. TIlt "big. big mula" an 1M $ales and inoomt Wts. which togdhtr produ« ~ 61 perunl oftolilllate TtYenun. TIlt state ~ Vllonm (propertyl iii (not countiTll its impOrIMlt oontri· bution to localgowrnm.nt) prOYidn only about 2.6 perctnt of total5tate iii rtIItnut. Baud on itsltate tax cont ri bu · tion, the ~ valorem (property) tax "big mult" is not vtl'}l hullh}'. In fact. Alah.!.· ma I'lIniu 5Oth;unong the w.w in this o;,.tegory. 1ht foI~ 1iI>k. which ~ in the summer 1994 issue of the Pluco Report. 'UPfTl. lists 100 ..... 2] w.ttwide tau. (or c"ttgories of tu.s ) which together will gentnte the $4.5 billion of txpeded .tate ...... nu •. Each of the taxu Is numbe red and will be disculSed in mon d.t.l.il subsequwtly in this article. They lit: State of Alabama ,... R... nuu f or F'Y 1 993·~

ToW (Doitar fieurt.l in millions)

INCO~E TAXES I. Stat. In.;ome Ta,,"s 2. Financial hut. Excise Tax TOTAL INCOME TAXES

3. Ceotn.l Salesand Use Taxu 1.221 4. Alcoholic: ~ Taxu 158 5. Ccl1utarTtltphoneTn 7 6. ConItKtOTSCros.sReOOpuTn 21 7. InsuRn« Premium Tax It;/I II. LOOlling Tn 1/1 9. Motor Futl. &; Oil Taxt. 531 10. Parimututl Tu 6 II. Rtnt.l.i &; luse Tax 39 12. Tobacc.o Taxu 67 13. Utility CI"(l$S Rtctipts TIXe!

227

14. Utility Uctnse Taxu TOTAL SALES &; CROSS RECEIPTS TAXES

THE AU\DAMA LAWYER

,•

2,538

I. Statt IdCO.". Tal< Tht llale income \U i, estimated to produce $1.5 billion in rtIItnue for 1994 (htrtafltr tu rtWnut (i,lure, are f'Y 1993-94 ulimates). This ~mounts to approximatel~ 34 ~rcent oIlotal slale tax rtIItnun. Tht tax bast for the mte income tax is the nd incomt tuned from all .KIUrcts by ruidmta. nOI"loTuidmts, and plITl·yellT residents deriving income from AI"bama K1urcu. and corporations d<.>miciltd in or rtttivin. income from Alabama. The Alabama income tax ratt is; ( I ) Single Pel"loOTl'l. !lead 01 Family, and Married Pcnoru Filing Separate ~turns:

2 percmt on tht fifJt S500 of IaDble ott i~ 4 peranl on the ntxI $2.soo S perunl on inoomt owr SJ.OOO Return: 2 perctnt on the firlt $].000 of taxable net Income 4 percent on the nut S5.000 5 perctnt on income owr $6.000 131 Domtstic: CofporItions 5 ptrantof m lire ntltaDble income annually (4) Foreign Corporations:

5 percent of .ntir. net in.;om. annuaJ1~. UnltlS a sepantt xcounting system is emp~ for AbtwnI Optl'lltions. that part of income tamed in AbtwnI will be Ikltrmintd by" formula ~ forth in Income Tn Regulation No. 398.2. Authority for the mte income tax is Ala. Qlnsl. 011901. ~rntnd$. 25. 61. 212

120

thftlUi/h 40·1/1·91 (19751. 1ht Commission rtoonlmencltd that the AI"~IM pen.QI1ll1 income tn be conformed as closely IS possible to the felknl income tax. with fedtnl ~jl.l$t_ ed grotS income IS I beginning pOint. The CommilSion also ' t.;ommended tN.t the Alabama .;orporate income tax be conformed ill clouly U J)O$Siblt to the f.deral corporat. i""omt lU.. and lhat It be "tended to fin.anci.ll institu· liom to reptace the Fil\llnci~1 Institu · tions'

(2) Married Pel"loOTl'l Filing Joint

1.533 J;l 1.566

SA1.£S &; CROSS RECEIPTS TAXES

PROPERlY &; OTHER TAXE S 15. Ad Valorem Tu

>1, 16. Corponte FnnchiJt Tn 17. DocumtnIl.I'}I or Filing Taxes I. 18. £.sUit &; Inhtrilinc.t Tn 20 19. Medn! PnMdtn Tn 20. Other Property Taxn 21. $ewnncelUn: (0;01 SewI'llllCt Tu Fortst Product.! Sewnnce TalC Oil &; Cas Production Tu. .>I TOTAL PROPERTY &; OTliER TAXES TOTAL TAX REVEJ'I,'UES

and 225. and Mo. Code 11 40·]8-1

Elu:i~

TIL

2. Finaddal hulitutiolll EXaM Tu

The fil\llnci~1 irutitutions uciH t.u (FIEl) will product ...... nue 01 all'PfflJli . mately S33 million this year Ithe actual tstimales ue for the fiscal year). 1ht tax bast for the financi.ll irutitu· tions uciJt tax is the ott inoomt of any bInk. binkin,usoci.ltion. trust compa· ny. building and lo"n usociati on. industrial or other loan company doing businus in Alabarru. The Alabama financial institut ions excise tn rale is 6 percent of IHabie ntlincornt. Statutory authority for the FIET is Alo. Cod, 1140· 16·1 throullh 40- 16·/1 (1975). As previously stated. the Commission no;ornmencltd that the AIabamIo «>flIOratt income tax be Ultndtd to filW'lCi.l1 institut ions to replact the financial institutions' ucist IlL 3. Centra] Sal.. ond U... Tun Central Nles and use taxtS in Alaba· ma this year will product aboul $1.2 billion. This imounts to approximately 27 perunt of toW sut. tax ~.. n...u . 1ht tax bast for the AIabamIo lilts tax is the grotS PlOCftds (rom 1M Nle of all t"uble items to individUllls. COfJ)OR' tiom. and other .nlilies within AIaba· mao ucept as spe.:irlcally ".mpted by law. and on the gross proceeds (rom conducting or ope rating public pl~et$ of amusement or tntertainmtnt. 1ht Illes tax rate is: • • percent of gross procttds of Nit of tangiblt penonal ~rty. • 4 pen2nt of gross nctipU from conductina or Optl'llting public: places of amUStmtnt or tntertainment. • 2 perctnt o( net trade difftrence o( new or used automobilts. truch. tr.iltrl or hoosetrailen. • I 1/2 pe rcent of stllinQ pr ict o( NOVEMBER 1994 / 37]

IT\Khinery o.aed for mining or manufllCturin, • I 1/2 ~rctnl 01 net IBdt differtll«' of new or und fum machinu, mIChintTy Ind equipment Ihll is used in prQduclion of agriculturil produce o r products, li"... tock, or poultry on ti""". • 3 !",rcent of cost of food products ..old through ~ooing machilW:$. In addition 10 the AlwIN sales W. the Dtpartrmnl 01 Revenue coll ects ~nd administen appro~;mately 350 county and municipal ulu and llTOSS receipts tun, ~giT\JJ in rate from I,~ of I per_ ctnl to 4 perttnt. Authonty lor the wu tn is Ala. Cod<! 114!f..z)·1 through 4!f..23-38 0975). The Abbatna we IU is polid, in Sfn«. it by ill consumers. corponote or otherwin, with rupe cl 10 111 Ilnllible items purcluwd outside Alwma. but consumtd or used inside the stalt.. The o.ae IU rate is IICnm.liy the same as the Allwma pin lax nte. When property is imported 10 Alabama from" .Iate ha"ing a reciprocal agrurnen! with Alabama, and" lax equal to Or I ' eater than the Alabama tax was paid in tilt other 'tale. such property is not subject to Allbama usc tu. If the tu paid to the other stale is less IlIan tilt AI"barN til. the difference mUSI ~ Authority for the I.IX tu is At.z. Cotk 114!f..23-60 Ihrouah 4!f..23-38 (1975). T he Commiui on recommended ut.n,ion of Ihe generil Hln lax to include scMen Irld lutornobil.. and a rtddinition 01 uempiioN. 4. Alcobolk S-~ Tuu Alcoholk bt..-tnges taxes in Alabama will senerale approximately $1!;8 million in re~nue this jltu. Thi. amounts to ibout 3.5 percent of tOlal state tax ~n"".

Atlbaml alcoholic M~roge conlrol revenues indude In uc;s., lH. on the Sile. 1101lle, or receipt of mil t Or brtWld bew,* for the purpose of distribulion_ Distillers. minuflClureTS, wholeSiltTllnd retlilers of ilcoholk bewnan il..o P/IY li«rIK ~ filing ~ The Alabama ikoholk beverage t.u rale is:

"..,

• Liquors"

fortified wine

S cents per 12 fluid ourt«s Or fraction thereof

3721NOVl-:MBER 19Soi

1.625 cents per 4 nuid ouncu 0. fl'llCtion tllt.tof.

56 percent of cost plus markup.(Saln

tu also applies) • Table ..ine 45 unts per lite •. Authority for lhe AlibarnlI ilcoholic beverage tnes is Ala. Cod<! tt26·3...tJ; 28-3·183 through 28-3·205 (1975). The Alabama alcoholic beverage taxes ~ 'e aetuall~ highe r than comparable talIU in most of the olher StitH.

5. Cellula. TelephoM Tu The "lIular telephone t.u will prodlKe IppTOllimatel~ $7 million for the stile Ihis yelr. The Allbimll cellulu telephone: tall is I privile~ w; on the provision of cellula. ndiG 1.lecommuniaotion Hrvica in the .ute. The tax nte is.: If monlhl)'

bnl:Iit ~Ipt. f..... m uo:h

person ... ' • Not ""U

$40.000

...

• OWr $40.000 but not IMr

• OW. $60.000

polidlo~

• LoQI betr tuu

The Il.1 is: 4 percent of taxable amount

$1.600 plus 3 percmt 01 txCfM 1M. $40J)00 $2,200 pi ...

2 ptT«nl of U<:eS$ oYtr

$60.000

AUlhority for the A]lbam.l cellula. telephone tu isAt.z. Codt H!f..21·12L 6. Cont_ton' emil Rtuiptl Tu The con tnclon' IIross receipls tu will produce ,,"enue this yea r of app ,o~imately S2] million. The cont' Klon' grou receipts tax is a privilege tu on lny person. corporation. or other entity enNing in tilt busineu 01 CQI1IrKling to conlt ruct , reeon.truct Or build ,n~ public hithwa~. roid. bridge Of lIretl. The In nte is S percent of I.on reaipU deri~d from the performmc:e of contracts subi«t to the taL Authority fo, the contnctoo'lTOU r«.iplS tall

isAla. Cod<! t4!f..Z3.5I) (1975). 7. InUf1In« Pftmlum Tu The insuranct premium tax will produce about $168 million 01 ",,,,,nue for Alabamil this year. Thi. amounts to

allProlimatel~ 3.7 percent of the total stlte w; rrwnue. An insuranct premium W; is impCl!.ed on the lmounl 01 pftmiums wrium by an insurer. A license t.u is ilso levied for the privilfllt of transKting an insurII1Cf business in the Itlle. The pftmium WI rate is: • DorMslic .'ire and CUUllty---1 percent of lll'OSi premiums leos returmd premiums and prescriMd dividends. • Foreign Pire and Casualty----4 perc~nt of STOSS premIums 1'10$ rdumed pre· miums and prescriMd dividends. • Wet or ()(tan MIT lne TuJ l1 pe •. cent of I percent 01 the gross under· wriling profit. • Domestk lif.-I percent of premi· UITOI and annuity considmotions. • fouiil'l Lif-.3 perttnt at premiums and I pe,"nt 01 annuity consideR-

The for.illn insurers III rate is idjusted downward if the requisite percentage 01 ~miutd asHU is in_ted in Alabama In~stmentl. Authority for the Alabama insuranc. premium tax is Ala. C«k 1127-4·2 through 27-4-1111975). The Commiuion r.comrmnd. d tllat the insurance rompany premium tv; M modified 10 lrelt foreiln lind domestic illlllren under tilt ",me formula. The illlllRIl«' premium tax tw now betn 1I,~ndedbythe Insuraru Pmnium Tu Refonn Act 011993 (Acts 1993. No. 93~791 to become effectil.'t JinUiry I. I99S..Ala. Cod<! f27-4A· 1 through 1274.-\·7 (l97S1.1n tenrnI. the pnmiwn tnitlOn ralH for lif. insurance pftmiums ~ hulth insurance pmniurns for both foreign insuren /100 oome5lic insur~n will be tqUliiml in iocnments wer a f".. ;'til' period. and "in thereafter be equal. Premium tv; on other insur;mce premiurns. efftel;"'" January I. 1995. "ill M 3.6 percent per iUlnUm. except for eertlin t)'pu 01 lnsuranc:ellPfCifOCil1y lisled iOl the slitut.1I.1ower ratn. 8. Lod"",Tu

The lodging w; win produce about $18 million in n:vtnue this)'tN_ The lodging tu ii 1 priviltge t.u imposed on e-wry person or fmn rtntinQ or furnishing Iodg. ings or kIXOI"I"IITIOdai0n5 10 transients for II period of less than 30 days lor /I Itt. Iodginll w. rate;5: • 5 pe rcent of the charges (or accommodations in the counli~. compris· ~

TilE ALABAMA

~I'JYER

ing tM AlwfTIl m()Unt;Join lake ~ graphic lrn: Blount, ChuokH. Col· but. CUlimln , DfKJlb, Etowlh. FTlnklin , hchon. lludtrdalt, Ywnncc, UrnWOnf, M3dison, Mari· on. Mar$IWl. MOrgln and Winston. • 4 ""rant of the cNTfU for ~m· modations in all other Alab>fTIl CQUn· ties. Authority for tM,I,l.;iIwn;i l(ldginQ tax is Ala. C«Ie fHO·U·I throuQh 40·2621 (1975). 9. Motor Folds . nd Oil. Taxn Motor fuels md oils t.uu in Alabama this )'Ur will bri"ll in about S531 mil· lion 10 the Jtatt trnsury. This is fqlIal to apprOl.ifTlltdy 11.7 Pfr«nt 01 tobl .utt t.u rrwnue. Tht \.uts au impOu:d on the ult, consumption. distribution. SIOQj[t or withdrawal from stODge 01 guolinf Dr motOl' fuel in AI.IoIwm.. Thtrt is also an uci" tn on motor carritn which OjX'ratt motor ~hid" on an)' Alabama highway (Motor Carriu FlItI Tax). Alabama collfCU thrte I~t.!. 01 S.07. S.05 and $,(14, for a total 01 $.16 per gal· Ion. Tht motor arrier fuel we is levied al Uw: wnt ntt tNt is in tffect for ga5OIirc. Authority lor thut tUts is A/a. COr/51. 011901, .. mend •. 93 and 354; A/Il. Codf 1t40·17·3O through 40·17· 12-4 and 4(1.17·220 through 4(1.17-225 (~irot Tax), and 40,17·140 through 40·17.155 (Motor Carrirr futl) (1975). 10. Parimutuel Tax Tht AllIwnI. ~rimulutl t.u is aped. til to yitld approximaltly 56 million in _nut this year. Tht ~rimututl t.u is l~tII on persons tnlll!ttd in tho busi· nW of oper.tting a doli Or Ilorse track. bued on t ht total amount wagered (pool) on all ~ri·mulutl racu (a rate in which individuals .... ho wager on win11m dMde 11M tot.a.lam()Unt ..... rtd in proportion to Ihtir individwol wagers, aft.r deduction of lUthoriw.! t.uo:$, Ittl and mana;ttm.-nt t:IJItn$t5). The stalt ~rimututl tax nit is I per· c.nt of the parimutuel pool on all parimutuel raeu plus I ""rcent 01 tM parimuluel pOOl on all parimututl racu rtquiring lhe selection 0( three or mort

= ••

Authority for Uw: parimutuel tax is Ala. Code tf40·26A·I throuQh 40·26A·17,

and it 1-65·29 (1975). THE At.\6AMA lAWYER

The utility gTOil$ rteeipts taxu ntf is:

Loc.al In rlltu from 2 percent 10 7 percent life al$O imposed in enen. Macon. Mobil. ~ Jefferson CQUnlios.

If monlhly IJO"

II. R.ntal and I.taM Tu Rmtal and lust taxts in AIWma will

I penon '""'

~rotl1Ot~

approximalely S39 million in rtvtnue this )'Ur. The rmtal or leasing of Pfrsoml property In is I privilege t.u on pel1Ol'lS engaged in the businus of lUling or rtnting t;Jongiblt ""IWII<II prll\ltrty. The tax rale is: • 4 ""rernl of gr04S proceods from Iusing or rental of mosl t;Jongibl~ perwn· al property. • Il/Z po rcent of Qrou proceeds from I.uing or renlll of automobilu, trucks. semi·trailers. or ~,.,.;ItQ, • 2 pertenl 0( gross Plotteds from lasinQ or rtntal oi linms 01' prmm~ Authority lor tM rtnW ~ luse t.u is A/11. C«k ff40·12·220 Ihrough 40·

12·227 (975). 12. Tobacco Taxn Tobacco \aleU in Alabama ..... hich art comparable. or hiQhtr than most other statt.!. will bring in revtn\ll' this)Ul' oi appTOll.imateiy 567 million. The tobacco tax is bastd on tho ule. storage. \1St Or dist ribution of tobuco and tobacco products by whol~Sllen, rtl.l.ileB aAd ~~~

The tobKco tax ratt is 8.25 mills on uch cigarelle. Riltu vary on other lobKco products sU(:h u d,e.Jrs. smok· ing tobllcco. chewing lobuco, and snuff. depending on wtight or retail price oftM ~. Auihorily for Ihe Alabama tobacco tax is Alil. CQik 1140·25·1 Ihrough 40·25-

47 (l975J. 13. Utili\)' Croll Rtctipt. Taxes AlabafTll utility Qross receipts talltS will bring in about S227 million this )'Ur. This lImounl f<tlll.is approxi .... t.1y 5 porcml of toW .we t.u rtYtnue. The t.u is simiLar to I Wu tax. The buis 0( tho ulilily gross rm'ipts tax i. II privilegt tax on tw:ry utility (~Iectric, dom.-Ilic wllttr. nlItuI101 guo teltgnph lnd ttltphone) furnishing utility "rviets in Alabaml. AlthouQh tM t.u il impO$td on 1M utility U:Mce purchaser. liabllily for payment 01 the tax remains with the provider.

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,",IS rtctipt. rapodl.,.

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• Owr $40.000 but not ow:r

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SI,600plw 3 percent of .1USS ow:r $40,000 $Z,200plu$ 2 porctnt of U<:tSS ow:r $60.000

Aulho rity fo r t he Aillbama utili ty gfOtoS rtetipU taxes is AI4. C«k 11'(1. 21-80 through 40-21-87 0975J.

14. Ulllil1Liw1H Tu.. Utility lictnst taxts in ALabama will !lentrate lIpproxi ....t.ty S74 million of rtY!nUt this yt.lr. The utility li«nst tax is ;mpostd on all ""rsoRJ opo'nting a public utility in Alabama (except rail· roads. uprUI complnies, lelephO)n. and lelegraph eompanies). The tax rate is 2.2 porernt on tach dollar of grOll receipts. Aulhority for the utilily littnse luts is A/Il. Code 11'0·21·50 Ihrough 4(1.21·51, and 40· 21 ·53( 1975).

IS. All Valortm (~atral P.Optrty) Tu The sll.t. ad valortm (Qtntnl prll\ltr· ty) tax will produce lIbou! sno million this )'Ur. Approl.i .... ldy 2.6 perctnt 0( the tot.a.l sl.l.\e tu rtYtnut is produced by Iht ad valortm IU. Tho buis oItM ~ ",,]or.m {Q.""nl PTOPfrtyf In is ownership of real and personlll property in Alabama. The stale tax rate is 6.5 mills. Autllority for Ihe Slale ad valorem tax is Alo. Cilns/. 01 19()1, 1191 and 21 4. and amend$. III and 373; All1. Code 1140·7.1 throuQh 4(1.9·29 and 4(1.11·1 through 4(1.11·5 (1975). For PUfpOHS otlht ld valorem tu. aU non-utmpt prll\ltrty is dividtd into tho following c1usa and JUbj«t to thr wessmmI ratios iAdiaoltd: • CluJ 1 All utility profltrty used in such utililies 3(1 ""runt • elm II

All property oot otherwise clmifitd 20 perunt NOVEMBER 19941373

• Clus III AU iiricultural, forat and single· foomily owner occupied ~sidential property. including mobile homes and hiMoric buildingnnd silts. IO~ranl

• Clus IV All privlll: ~lI#r aUlomobiles OUld molor lrucks used for ~1'5ON1 UK. 15~ranl

All Wible proptrty II; 10 be IIlPl'lIiKd al ib fai r and ~~Ie ..... Iue, wilh lhe uception of Class III properly. which may be appraised by the assessor on current UK value if tht owner of the property rtqUtsU. Homesleads. no! 10 ~ 160 xm., wIlo$o: ""'!len art Iw than 65 ~an 01 iie, a.., Hemp! from stale ad valorem ta~ up IG 54.000 of lSKSSed ..... Iue. County exemptions vary from 52.000 to S<4.000 of assessed ..... Iue IGr the regular homestead. County mil~ ..... ried lOr !he 1991. 92 fiscal yu. f.om 14.5 mills to 38 millJ. City millagu ''If)' from one mill to 46.9 millJ (a mill is 111000 of a dollar or 1110 of .. cent, SG that 6.5 mills «jualJ 5.0065 or .65 ~l'OOlt of SI ). Thr fGlIowi"i! II; lin i!Dmplt 01 appli. calion olJlatt mill. . . .It to dottermint state ad valorem IUts due. As.Iumt a home with an appraised value of $100,000 and a homeowner IWip,lo~ r) whG i. eligible for tht $4.000 stale

The 0JfP00k franchise w is based on the capillll 01 a domtstic COf]':IOOo. lion and on the actuol iIIllOUnt 01 capital employed in ALlbama by a foreign CGrpr "'Iion. The CCJrp:')rate fr.mchi$e IU ...II: is: • Oomutic Corpo ... t","-$IO lor uch $1,000 of pooid·up stoe •. plu. sub .

stoc.

scr ipt ions subject 10 can. NG·par slock is hued on the amoont dedicat. ed to t he capi ta l .toc k account. deril'td from salts olstock. Minimum f« is $50. • Forti,n CGrporations-SJ for tlIch SI,OOO 01 xtuil capiul fmploytd in AI~ma.

Authority for tilt corpOnte franchix IU is Ala. Coml. G{ 1901. 11229;and 232. and a~nd. 27 {a~ndjng 1229;. Ala. Cctk tt40-14..o thfOUlh 40-14-57 (1975). The Commis.ion recommended retention 01 the corpor~te franchise tax. b.utd on capital employed (nr all rorpo-

... ticm. 17. Ilocumenlllry OUld fili ... Tax" Thil year tht AlaN"," documfntary OUld filing lUes will provide about SI8

million in ~nut. Documtnlary and

filing taxes II'! imposed on the rtcordi. lion Gf mortgages. deeds. bills 01 sale. Conditional salt contracts. etc. The rat. oflll ;,: • •"'~ $.15 per SIOO 01 indebit<l.

.-. or fraction thereof. (Abo dmII 01 trust, O'lnditional sale wntrxts, tlt- ). • Deeds $.50 per $500 of valut. or (rac· tion thertof. !Also bills of ult). Authority IGr tht documentary and lilin,lUtl is A/". Code 1140.22 . 1 Ihrough. 40-22. 12 (1975). 18. ElllIte and ln heril.once Tu The estale tu in Alalwna this )'tlr should product about UO million in f'!YtnlJt. The AIabam;o rsIlItt Wi is b.utd on all nel estates pwi"i! by will, cIeviso:. nr under intrslllltlaws 01 AI~ The estate We ratt i. 0Ul amount tQual to tht tOll credit lIliowable undtr the fedt ...1 tstate tu laws. The tu on non . residtnt tsl.ates is imposed on the pro. portiooalt shut of the net esllte which the Alabama property burs to the entil'! eSlltt. AUlhority lor the totate lax il Ala.

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Thr sute ad VlIortm LU: in AIW .... is"",,"t of the SO $bits. In imtDl, !he sUIt and loa! ad valortITI tu nIts in Alabama are the 1~lt in tht United States.

16. Corponte f'nnchlH Tn Thr AIWmIO col'pOrite franchix tu will bri"i! in moenlJt this yeu ollobout $119 miUioo. This amoont is equal to approximalely 2.6 ~rcent of total m .te IU moenue.

37.t 1NOVEMBER 19!M

• Fraud - LoST ProfitS - Business Value -LiTigation Slf'pon oFinancial lnvCSTigation

We ca n h e lpl Caillh e fo r e n Sic accounT a nts an d fra ud exa min e rs.

1530 AmSoutt1IHarbeft Plaza IliTringharn, Alabama

205-716-7000 THE AlABAMA lAWYER

QJde H40-15-1 through 40- \5- \9 and

4<l-ISA-1 through 40-ISA-14lI975). 19 . M.dica.id Pro\~ d. r T"" •• Medicaid pro"ider laus in Alabama will garner about $14 million in rev_ enue.! this yeu. Medicaid prO\li<it, tue. ore privi lege ta xes levied on att providers of pharmaceulical se,...,ices. nursing home care. and h()l;pital car •. The !all rate is: • Pharmaceutical Se,...,kts-SO.IO poer prucription wilh a retail price of at le",t $3. filled Or refill ed for an Alaba· maciliun; • Nursing Home Facilitiu-$999.96 per year per bed; • Non -public Hospitals-$25 per patient day per year. adjusted accord· ing to Ih. hospi ta!", M.d ica r. cas. mix index for discharges. as published b)' the Health Care Financing Admin_ ist ration (HC FA) of the Departmenl of Heallh and Human Services. Any non· public hospilal nol having such mi~ inde. publisMd b)' HCFA shall be as!e55ed Ihe same rate with no adjustment. (Public hospi tal,. a' defined in Section, 22·21-1 and 40· 268·40(B). a re nOI t n ed. bul are mandaled to transfer funds to Modi. caid at a rate determined annually b)' Ihe Alabama Medicaid Agency. based on faclors noted in Act 92-418.) Authorily for Ihe Medicaid provider 1alI" is Ala. Code U22 · 12B· llhrough

22·12B·4. and 40·26B·l Ihrough 40· 26B·27 (1975). 20. Other Proper!)' "fue. This year other property lalIes levied by the .tate will produce revenue of aboul $2 million. Thi. calego ry includes misce llaneous olher properly taxes which are nOI separately discussed in thisarticle.

2 1. Se..'trlln« Tun Severance lalIe. in Alabama Ihis year will generale approximalely S72 million of revenue. These sevtrance tues include the coal ,"wrance lax, fore.1 products severana !all. and oil and gas production lUes. The coal5e>'erance IalI i. a privilege tax levied on tvl'ry perron .evuing coal in Alabama. The fo,e'l producls severance ta>: is a tax 00 the severing of timber or any other foresl

TIlE Al..o\lWtA I..o\WVER

product from the wil for sale. profil Or comm.rcial use ~nd on Nl'ry proct5S01" or manufacturer (in ·.lale or out ·ofslale) using luch forest products. The oil and gas produclion tax is a IU on lhe production 0( oil Of natural gas 5e>'ered from any well or woll, ;0 Alabama. There i. abo an oil and gas privilege tax. The rate of Ihe coal •• ,uance lax Iwhich includes two levies of $.135 and 5.20 cenls per ton) i. a lolal of $.335 per Ion. Th. rale of Ih. fore,l produclS 5e>'eranct tax varies based on Ihe specif· ic timber or olher forest producl sev· ered. The rate of the oj] and gas production tax i. 2 percent 0( the gr<m value of Ihe oil or gas at the poinl of production. Authority for these taxes ~re; Coal • everance tax: Ala. Code U40-13-1 Ihrough 40·13·10 and 40-\3 · 30 Ihrough 40·13·36 (19;5); Forest products 5e>'erance 1alI, Ala. QxIe §§9·13·80 Ihrough 9·13-105 (1975]; and Oil and gas production tax: Ala. Code §§9·17-25 through9·17-31 (1975].

lem and general governmenl in Alaba· ma. Thi. repre.ents a n.ed of 675 10 900 million dol la...ach yra. of addilional Slale lax reWnu •. The need for addilional revenue has uisled for a long lime. "And it carne to pass in those days lhal Ihue "'tnl out a decr.e from Caesar AugusluS. thai all the world should be wed: Bible; luke 2;1. The following more .pecific recommenda· lioM or ,uggeslions (wilhoul Ihe bene · fit of i£gi,laliw Fiscal Office . , Iimate.) are made;

Conclus ion Based upon Ihe preceding owe,...,iew of Alab.lma lUes. one at onc. app,"ciates the magnitude of the task as.umed b)' the Alabama Commi..;on on Tax and Fiscal Policy Refonn. The Commission repo,l i. daled January 1991 and appears as an Appendix to 43 Ala. I.. Rev. 741· 775 (19921. The Commi.. ion 51ales in ils reportlhal il r.commended an owerall tax .ystem that. which gener. ally mainlaining revenue n.u l ralily. allows our elected public officials to make the necessary policy chokes to increase or lower various tax rat .. to gen..at. Ihe r.quired amounl of rev· enue. The Commi.. ion staled Ihal one of its goals is 10 "broaden I~ IU basis and lower the r~te." in order to Insen the r.g .... ivity of the currenl syslem and 10 make the sy,lem IOOr' fair for all laxpayerS. Thi. artkl . fully ataplS the need 10 I.... n Ihe rtg,enivily of Ihe currenl Alabama lax system and to make the .ystem more fair for al1laxpa~r5. A.I slated previou,ly. however. a major premise of Ihis article in revi ....·ing our stale sy.tem of laxation is tha t an inc ... as. of .tat. IalI rNl'nue of 15 to 20 percenl is urgenlly needed and vital to provide minimum adequale and equi. table funding lor Ihe public >chool .)"·

• Increase or decrease olher lUes and change thf IalI base with the gool of lax equily and rtvl'nue neutrality.

• Double the rate of the .Iate ad val. orem tax from the presenl 6.5 mill, 1013 mills. • Extend the genera l sal e. ta x to include services (tued al a rale of 2 percent) . • Increase the dom~'tk co",.,rat. franchise rate 10 equal Ihe fale now imposed on foreign co",.,rations. • Eliminate the Alabama income lax deduction for federal income taxes paid.

• Accepl the goo! and develop policies to encourage and promote growth and deve lopment of the gro...Iale pfoduCI in Alabama. The first five reeommendations relale specificatt y 10 stale taxes and melhods of raising additional rtvl'nue . as well as tax equity and faim .... The Iasl reCOm· mendation may be Ihe mOSI importanl one. The growth and development of Alabama industry. Ir.de. and services, Ihereb)' increasing the esp. wiliitad 10 increased revenue from exisling laxes Ihrough Ihe principle of elaslicity, Ihat tax revenue grows in proportion to 8"",1h of personal income and C5P. A pragma lic approach should be adopted, namtll' to find and use whal .... er melhods are cost effective in the .tate effort to supporl Ihe all raclion and growth of industrial development. The recenl succe..ful dfort of the .Iale 10 . ncourage Mercedes· Ben. 10 build ilS new U.S. manufacturing plant in Vana. Alab.lma is a fine example of what can be done. Every city and county in Alabama should seek 10 dtvl'lop r. ..t class indus· Irial park. to help aUract and develop new industry Ihroughoullhe .tale. NOVEMBER 1994/ 375

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The r.rtt rHo mmend.lion above, rtLatH to lhe pr~nl sllte ~ wln .. m (property) tal. The pr~nl JUte r'lIle is 6.5 mills and produas about SI20 mil· lion in 51ate revenue tath year. Dou· blinQ the presenl milllg. should genuII. in additional SI20 million 0( moenllt. AlwIN. nnks lisl lImOflQ the sliln in rrLlIking tffecti~ UK of Ihe property ~ 10 dtlivtr I1ft<kd I/OYtm. rTlfnt rtvtnu •. A compltte (Wtrhaul 0( Ihf ad valorem (property) tal< system would, of course. be pre/nibl •. AI least. doubling Ih~ slate millage rate would be I $tep in the right dir«tion. The S«OOd rttOrlImendatLon propos. n ut.nsion of 1M g.ner.1 u.lu Iill to include servicel lined II • rale of 2 percent). The Commiuion recommend.d th~t ~II services be subjecl to the stat. tax. For example. repair Krviefs, ~nonal cue S"''Iites. eonn fu clion. computtr pfogrllmming and profeuionlll urvic .. would be inc:ludrd. nor 2 per«nt I'lIk il MJggQt. ed sinc:e this would r.prestnt .. COmpletely new SOurCe o( itale revenue in AllI!»rrLlI. lithe present u.lu lax is maintained at the prutn t rat •. the tllension to inc:ludt seMen tax.d at i 2 per«nl rale shoold product wfficimt mTnue to mrel IIppl'OlirrLlltely half of the pr-..t need for ..sdilioNl ~ut (or statt schools lind general g~m· men!. This nlension would r.prestnt II sup in tho right direction toward a stat. tax system more soundly based on equitable principles. As II practiatl mat· Ie., this IFIiIjI be lhe I110IIt fruilful souru of new ..... nllt. We should diligently 5W'Ch for rvw equitablt tax sourc... h .IoNthln S..;I\. told Lady Carteret: "For Cod', uke. madam. don 't uy that in ~:ngland lor if you do, they will surely tax it."

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The third r«ommendlliion, .. bow, suggests that the dorlltslk corponte fDllChist rate be inoustd to tqtW lhe rilt now imposed on foreign corpol'll' liol1l. This step will promote \All eQuily lind faim .... without dtereuinQ \All rev· .nut derivtd from tM prestnt franchise \All on foreign corponlions. Imp!emrn· Iltion ollhis recommend"tion ""'1 involve a constitutional.mendm.nl sinet the AlabarrLll Constilution now reQuirt! impOSition of the corporate franchise \ax on domestic corporations ·;n proportion to the .. mount 01 capilli nock.- (A/a. Conlt. lITl. XII. 1229 (lITItfld«Il936). The p..... nt sysl.m 01 l.IlIing the ~r 'IIllIt 0( Qpitlll stock of domtstio: co",", I'lIlions is usily circumvented ~ simply reduci ng th~ par v,lue of " corPO"· lion's stOCk. Placing .!orTlfstk <orporalions on an eQ1IlI1 footing wilh foreign corporalions will both produce r>ttdtd addilional revenllt lind will ... poutnt I rrLlIjor step in the direction of equily and (lIimtSS in the sllte tax t_tmenl at both domeslic lind foreign corpor'll' lions. The fourth rt<ommen!lation. above. is to eliminate the Alabama incom. In dtduction for Itderal incoo>t t.lJtts p.id. Tho purpOle, of cou r't, is 10 raise addition.1 ,"venu'. Thi. II.p would prove product ive of revenue in II faiT, prog feuive WilY, It would help lesstn the prueot regreuivity io tht st~te tax .y.ltm. Implementation of this Jugge5lion will be nlllt;~ely simple lind highly rffKllvt. A com~,.· bit It~p in the ftdUl1 In system wu ,Iiminalion of tht itemiud dtduc· tion for consumer intereJI. The fiflh ncommendation, lIbove. In dfect acctpl$ all the ncommend~lions of tht Comminion to bro.adon the tax bue and lower the tax rate. Full implemenlllion of the Comm;" lion', rocommtndlllions in AllIbllrrLll IN.)' uk. ytlIr5. In the melll'llime. the citizmJ of AlwIN. should Immediattly address the present nttd lor increast<l funding of our public schools and gen. tnll/OYtm ..... nl Addition.l.l inVl!Jtmtnt in the hurrwl ",sourct$ of our slite is a sound invtJtmrnl. II Is a constTv.ltivt investment that will ~y incalcuLable fulure dividends. •

n..

THE AtABA."IA lAWYER

DISCIPLINARY REPORT Tre n, ' " to DluiMlity Inactive Status • Aubum attorney Androw J. Gentry _ tnr$trnd to dis. ability inKlivt SUIlIS. tffKlivt August 26, 1994. Gentry',lnns· fer was onlertd by the Suprerm Court of AIibima P'Jrnlillt to i pnor order of tilt Ducipl;",ry Board of ~ Abb>mo. Statt 6.1.•. [Rut. 27(1.}; Pel. No. 94-OO[ Su"...nde. 0' Licen •• o Hinningham anomey lIaroy C. Tt noanoYll has surrtndertd his licenK 10 prlctic. law in response to charges brought alliimt him by tilt Office 01 Ctn.... t Counso:'l 01 the Allb.I.lN StIItt &r. The IiormlI dwllu filftl ag.>imt T..rano.... alltgt tNt hr. while not wthoriud 10 prxta law in the SUte 01 AIIbami, hekl himself out U 1Iliwytr lOCI iC«jlkd a Itt of 55.000 from" climL Roi)(rt M. Dailey. Jr" to itt up a rorpor;otion lOd obtI.in l

_wed a "",.nt ~r to oblloin the ""'tnt for 11ft 01$1.000 to be pUI out 01 the 55.000 Itt thit he hieS nctMd. Terl'VoO\lll f.Ioi~ 10 ~ the lawytr the $1.000 lOCI nothinl was dono (In tho patmL Although he duw up IOmt ir1CO<J!Of3.lion documents. ~ "«rt filed and Temnova retained the $5,000 fft.ln addition to this amount, T.~ ~ivtd two i!dditioN.l chfcb from Daill)'. 0lIl' in the amount of $36 made p')'3.bl. 10 the probate court and anolhtr in tilt amoont 01 5SO made lIIlyable to the Secreul')' of Stale. Terrano.. va altered the namu of I»)'tt 00 both of these ch«ks to re~ " Barry Terraoova, Attorney" and deposited them in his bwinw checking KCOlInt. IASB No. 91 . 7751 • ~nt1l' attorney Guy E, I>.avi£ Iw IlIrrtndtml his I~rue topndiCl! bw, In anonler datedAUlust 31, 1994, the; Supreme Court d ~ Nsed upon OaI.is' IlIrrt". of his li«mf, an«ied and illlnulled OaI.,'lictnSO to prxti« bw in this,we dffdiYe StpItmber t, 199-4,IASB N..... 93·356, 93-384, 93-401, 93470,93-486," 9.1.{l231 • Ruth Simmonl Capn. a Birmingham ~r, IlIll'mCkmi her liomH to prxt~ law and "'... $ll'rlm ,""" the; roll of allor' ntYI' by the Supreme Court of AIabami, efffdiYe July 7. 1994, Capn wH convicted in the UnilOd Statu District Court for the Northern DiSlrict of Alabama lor kl\QWingly and fraudu . lently Iramferring to her own w.e real property belonging to a bankruplcy utat. while tile property was in her chuge U I bankruptcytrwtee In violation of 18 U,S.C. § 153: for unlawful. ly retaining and con~rting to Mr 01<'" w.e "!'\.lin sums of money belongi"ll to tho: bankruptcy .. tote, which money ame into hrr Iw1d$ by virtllt of hrr position as bankruptey trustee in violation d 18 U.s.C. 1645: and lor ...ui"ll and awing to be made hlK and rlditioul; $l.>tnnmli and ~~ ... tions in tM trwtee'l Application for rioW Comperuatioo Ind Reim· bursement of Experuu. Report of R«eip\.! and Oisbursemenll .. nd Notin of Propond Distribution submitted to the Bankruptcy Court in violation 0118 U.s.C. 11001. IRuit 2ZllI I'd, No. 9.1-051 • Auburn lillOme)' Jack F . Saint has lurrendeml his li«rue to pn.c\iCl! law. In In ordu dated August 23, 1994, the Supreme Court of Alabama, based upon Saint's surrender of his licell$f, Pill",! 01 .., irMntion. lit

"".nt

THE ALABAMA ~II'YER

anctled inc! annulled !Wint's liCl!IlK to prxtict ~ in this efffdiYe August 8. 1994, IASB Nos.. 93·107 & 9.I·187J

iUll(

Suspensions • fluntsvill. atlorney C..,. C. lI udtaby hu betn luwended from the practice 01 law for I period of 45 days by the Disciplinary Board of the Alabama State Bar. Uuckaby'ssuwens;oo

/H:came ~ff«tiVl' Sept~mber 3, 1994, Th is action Wa!l ' ","ult Ii hi, having pled guilty in the United Statu District Court for the Northern District of Alabama to the criminal misdtrmanor 01 failing to m~ an income Iix retllrn for the cal~ndar yur 1988. IRutf: 22(1)(2) Ptt. No. 92-07J Public AeprilMlncls

• ~n IIttomry Milford LIon Cannon was Pllblicly reprimanded by the Abbima StIlI( Bir 00 Jul)' 17, 1994, A bmily of former clie:nlJ of Cumon's had oontaclfll anothrr attorney u.out pu ...... ing II pOS,Sibie nWpnctia: d.um ;oaa.inll Carmon, Carmon hlld rectiwd I lelttr from thi' IttorntY wMr~in 1M IUOmtjl i",trutted Cl.rmon to ha~ no further conlxt with Carmon', fo ...... r clie:nu, and to dirKlall}' and.11 «I1'fHJ!OI1(Ien« <:OOCm1ing tMm to the r'ItW attorney's offiCI!, Contnry to this requesl. Garmon CO!Ii~d rorrupondtnct to the former clienlJ, The ~ IltOmtjl ap.in wrote to Garmon requtlting that he CU\oe lily further communications with the clients. Again, Carmon <»pied the fo ...... r clienll with a stpa· rate letter "'herein he i ttacked the characler of the former clienlJ' r'ItW attorney, and threatened to ..... the r'ItW altomo)', as well M the; Iormer clie:nu. for lltomty's ftu. court 005U and txpenscs un<kr the I..ilig;otion Iw:ODuntibiHty Act. rorrn.al charges we re filed .i"'t Cl.rmon. At 1M conelu· ,ion of the due procui hari"ll on the formal chafl[Q. Ihr Dis·

Notice to Show

e. u••

Noti,e is hertby given to Nickey John Rudd. Jr. of Binningham that pursuant to an Order to Sh()\o,' Ca use of the Di$ciplin aTy Commission of t he Alabama State Bar, dated May 23, 1994, he has sixt)' (60) days from the date of this publication (November 18, 1994) 10 come into ,omp!iance y,'ith the Client Stcurity

~'und

Assessment. I\on·

,ompliance of this assessment shall rnult in

SUS]'IefIMOIl of hi.s license.

- DlIdplbwy (0_ 1..I0Il, AIabanuo Stllte Bar

NOVEMBER 1994 1377

Board found t~t Carmon Ilad vioL"Ittd Discipli~ry Rule 7-104 (,)( 1) oIthe Iormrr(Atk oI~ Ilapqnsi. bililg in t~t he eonvnuniattd with i .... rty he kMw to be rtpmotnttd by " ~r without lilt prior COOSotnt 01 the ~r rtprestnt.ng such .... rty. The Oisciplinuy Board thm wnducted ;on ,ggrMtion ItId mitiption hurinQ U ta the iss~ of discipliM ~ ordered that Carmon rtttive" public rtprimand ....ilhout ~ne~1 pub· lication. fGr hi' ethitlll misconduct [ASB No. 90·632[ • On July 17, 199~, Montgomery I~wyu Ken ne t h T. Ilemphlil received a public reprimand with general publka· tion for fail ing to rupond ta a lawful demand for infarmation from I disciplinary authority undtr Rule 8.l(b) Gf the Ruin of Profusional Canduct. A di.nMriend af Hemphill" cam· plained that ht had not rtceived all the maney to which ht wlS tntilled f,am I rOIl utate dasing. The ClSt WII n'$01ved by I pip. ,.gFffmrnt ~ Hemphill ~ the bar in which ht ~rttd to tht reprimand lind rntitutian in the lmount 01 SIO.SOO. Hemphill ~d no pria, disc,pliror. [ASB dpli~ry

No. 93·0691 • On July 17, 1994, Birmingt\3.m

Ia~r

0 . ,-\4 E. IIGdgtJ

rtttivtd • public. reprimand with geror ....1 publication IrWn,g from tthical problems in the handling of his finn'J upuKitd divorce plXtice. In ]993. tht finn 01 Hodges" Creer btpn advertising JGw·rost uncont.,ttd divorces. Within a relatively lhart li~. Ihe firm'J divorce clientel. had il\trtUl'd Jubstan. tially. In time. ellent.! began to complain to the bar abGut not rtttivin~ thei r divorce afttr IO!IJI periods 01 dellY. Invutiga· tion inta lilt matter _altd the eli.nt.! w... ligning blank or incomplete divorce document.!. and many never tven talked wilh a w..~,. 5(rious quutions ~re ~ised abGulthe iuthen. lidly of lilt ~lu",J on • number of lilt divorcu btl", filtd by the firm. IioditJ dtnifil notr kn<....;ngIy filing any /lI1$t doe·

umrnt.! wilh I court. but iCCtpttd lilt Tl'PrilTWKis prOp(:ISed by I'" Oiscipli.... ry CommiWon. His only deftnse was thit the suddm high wlume oIdWotct filulMrtiMd the offiu', ilbility to cltil with lhe QKIoid. At $On>r point 5Gmt sttff mrmbe", 01 lilt firm belP" to IM"'ttp IeQaland tthical bounds.. 'Tho! Oiscip!i .... ry CcJmmiiSion found thit flodQu Ilad hliled to JUpeMK non·)a,.)'fr ISSistllnu. fii!td to providit compell'1ll rellrenntition to II number of thest divorce clients. and enga,ged in conduct that is prejudittal to 1m administ~tion 01 justic•. [ASB No. 93-458[ • On July 17, 1994. Birmingham lawyer J. Marlr Creer received a public reprimand with general publication arising from ethical problems in the handlinQ of his firm', .xpand.d divorce practice. In 1993, ~ firm oIl1~s & Guer bopn adwrti.ing JGw...:m1 unconltSt.d dM:m:es. Within II rtlatively shcH1 t.ow. lilt firm's di>oofce clientele had incrt~ JU~. llally. [n tiow, clil'1lt.! btg.an to I;Qmplaln to tilt hlr ~I not n'aM", Ihtir divorce Mler Ioni periods 01 c1t1ay. hwwip· lion into lilt mailer rtIIUled lilt clientJ ~fe sign.", bWllt or incompltle di'lOl'Ct document.!, ~ many never tven talked with • ~r. ~rious qutJtions ...... n' ~iJtd abGut 1m lIU\hm· Iic:ity 01 the .ig.... turt;S on II number 0I11It divorces bei", fil(d by the firm. Cretr dtni(d tver kl'lClWi",ly fili", iIJ1y (11K document.! with a court. but iCCepted the reprimaNis propoKd by the Disciplinary Commiuion. Hil only dden .. w... that tht .udden high ,'Olume of divorce Ill., o-vertutd the office's abili· ty to deal with the caseload. At some point. $Ome s!.all members 01 the firm beglOn to overstep legal lind ethical bound.. The Disciplinary Commiuion found IJut Cuer had failed to WperviK non·la~r assist.l.nt.!. filled to provide competent rep,enntatian to a number of thtn divorce clitnt •. and eng..g.d in ronduct that is prejudio:ilI la lilt Kminist~tion of ju$tict. IASB No. 93-4511 •

j-----------------------------------------------,

ADDRESS CHANGES

CGmplete the loon btIGw O!'LY if IMn' Ire chanitlla)'OUr listing in the cumnt ~ &r Dndory. Out 10 c~ in !he It.l.tule IIOWmin, eltdion of bor """"""ionors. ...... '-' are n'quired to use m<mbt .. ' olfIu addftSOtS. unltu nGnt il lVllilable or • member is prohibited from rteeiving ltate bar mait at the oIIice. Additionally, the AlaI>amo &r Diff!dorv II compilrd from our mail· ina lilt and it il important to use buoineu addruse! for thaI rU$Ofl. NOTE, If \<It do not kr'l(JW 0( an ad<Irw chan~e . "'" cannot 1'I'I3k. the ntu ... ry changt. on OUr .tc<>nh. so pltaIC notify uowhen yOUr addrw changes. ,'Iall form 10: Chriltlt T .... ntlno. P.O. Box 67t.MQlltlJOmtry. AL 36]OI.

! I I I

::-_ _ _ .'C-C-'" - - - - M........, ldtrllltlcatlOfl (Social SKuri!),) "'......., Choooo ....: O M,.

O M....

O Hon.

O M...

D Hl.

O Othtt

~ _ _ 1',,"'" Yu. 01 AIImiMIon

"~ ltPColit Office Stmt Add.... (if di!ft""1 ""'" mlitintodd .... )

L _______________________________________________ J

318 / NOVEM8ER 1994

THE ALARAMA UWYER

ALABAMA STATE BAR SECTION MEMBERSHIP APPLICATION To join 0"'" or more 5I.'Ctions. complete this lorm ~od attach "'p",ate checks payable to each 5eCtfon you wi~h to join

N'mo __________________________________________________________ firm or Asency _____________________________________ Office Add,... , ____ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ __ _

Office Location __________________________________ _ __

Office Te l."hone Numoo _______________________________ __

~dion AdminiSlr~li~e

Law .................. ....... ......................... . Bankruptcy and Commercial law .............. . Business Torts and Antitrust law ................. . Communications law .... . ________ __ . __ _.... .

Corporate Coun ... I ........................................................... .

Annual Dues ___ _. ____ ................................... $20 . .......... _______ .$20 . .................... ..... $ 1S

., ___ .$15 ...................... ..... $30 ...... $10 .. ......................... $10 ___ .$20

Corpor~tion. 8anking and Business Law Criminal Law ..................................................... . Envimnmental Law. Fam il y Law ................ .................................. ...... . .................... $30 Health Law ... ........... . ............... ....... ......................... $15 Labor and Emp loymeot Law ........ .... $ 10 if practicing I",. than 5 years. $30 if practicing 5 0< more years Litigat ion............. ....................... ........ ..................... ...... 51 5 Oil, Gas and MirJeral Law .................................. . .. ............................ ............. $ 15 Professional Econom ics and Technology Law ......... ............ $25 Real Property. Probate and Trust Law ... . .......................................... $10 Taxat ion ............ ......... . . ...... $ 15 Wo<ker's Compensation Law. . ......................................... $20 Young lawyers' ............. . .. ...... .. ..................... 0

TOTAL Remembe<, Att.ach a separate check lor each section. Mail to, Sections. Alahama 5!ate 8ar. P.O. Box 671. Montgomery. AL 36101

THE: AlABAMA ~WYER

NOVEMBE:R 1994/ 379

Bench & Bar Mid-Winter Conference ......... ""

Circuit & District Judges Associations and Alabama State Bar Committee on Stnch & Bar Relations Joint Mid-\\1nter Conference Th ur$day, January 19, 1995

Howard Johnson Governor's House--f>lonlgomery 8:00 •.m.-5:00 p.m. •'eatured spukt rs: Professor Joseph Colquitt, Broox C. Holmes. Chid Jl,l$tin Sonny Ilornshy, Hon. W. t larold Albritton, Samuel Franklin. and

~lanhall

Tirnlxrlake

6:00 p.m.

Reccption hosted by the Montgomery County Ba r Association and the Alabama Judicial College fatuity Association Reg iltration fee I, $35· ·Fee c~rs cost of conference. CLE ...... ritten materials. conti nental breakfast. lunch. and reception. Con· (erenee is approved for 6.0 hout"$ of CLE credit by the Alabama State Bar.

----------------------------------------------Bench & Bar Mid-Winter Conference

......... ""

Cimlit , Disbid Judgn AI"";'linn$1!Id AbbolllJ StJk &r COIIIIIIitIet 011 BrndI &: &r RdItions Thunday. Janual)' 19. 1995 Howard Johnson Governo r's House- f.lontgomel)· I will attend the conference and my registration fee of $35 is enclosed. (Checks for regist ration should be made payable to "Alabama Judicial Co llege Faculty Association " or ·AJC FA'·.I

Addreu _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ __ _ __ _ __ City PhoneIL_ _ : Relam by hn ....f)· 6. 1995 10: Alabama. Judicial College 300 1x->ltT AWlmt ~'''ntgomel')'.

Alab.:.ma 3611).j

L ____ _ _ _ _ _ _________ _ _ ___ _______________ _ __ _ _____ ~

380 1 NOVEM6ER 1994

Tm AU\BAMA UIYYER

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SENTS

A Look at Two Legal Services Programs loy Penll)' W..,.....

t first ,lalKe, ThOrNS Grady

Keith and Rib KlIy Ldl·Oein ~ ~m to haw little in rommon, otm.. than the fact tilt» OK both L.egal Services lawytrJ. They differ in agt. gender and r,ee. Tom h.u worked fo r l.gal Strvku for mOrt than 20 yurs,lU1 (ewer than two. BU1. Ih. tommon q..... litiu thfl' Slure an unw., vering commitment to community service ,nd tilt rUPKI dlhei. p«n. Both abo ~rt.umI in~mr-Tom in FOI1 Pioyne in trw: northt:Ultm p.lIrt of tht $1.111., ..... IUy in wuthtm Mon· roe Counl)'. As )'OUths. Mithtr pW!no<l 1I GTft. In Ill..... ". canllhink 01 MY law»er l~ ~r kr>()Wn that I '.'I"'C1 mo'. thin Tom Keith," A)'S Huntsville's Bill Bu'll~. I

,.t

former leg,l Services lawyer whose prac t ice now is primarily criminal

ddense. He hL! chaired the u l!<Il SeT. vicu of North Central AlolbamI. (I.5NCA) oo.rd of dinctors for the piS! eight yun. 'You coul dn 't ask lor anyone mo •• dtdiCited, and th.l.f. In opinion tmt'l shand by tveryone in Ow legal <;O/TIm\Inity IItn. II~ is I dedicattd publie 5tTVltlt. " Tom Ktilll jaintd ISSCI. in Hunl$vilk IS 10 stMfittomry in 1972. str.light out 01 !tit Uni\ofrsity 01 Alabiml', I.1w school; h~',

boten the progr.lm·s dim:tor sil'lCf 1981. AI first Tom planned I Ciretr in tnginetrina, but UI'O'ur~ to ideas about economic develOpment "got me think· ing beyond what 1 WitS doing," and he

382 1 NOVEMBER 1994

began to think about >n}'i of helping poor PfOI)le in the South. Accepled in t968 it tI.e Uni~rsity cl Virginia's I.1w school. Tom ~ut studin On hold aftor rec~iving In induction notict from the U.s. Army. For two Yf'Irs he nunked the Army', periodic physic..1 exam. and his ttntltivt status forctd him to forgo th~ eduCit ian It UVA. II~ worktd It Loddwd in Atl.1nla whitt in limbo ...i!h the Army ;mil fin.&11y was able to begin liw xhoollt AL1bami. "I WIInltd 10 do JOtntlhing lodally U5tful from Iht bt · ginn ing." he ny,. noting th.t seve ral 1.1... proftssors .t the Uni\ofr. s ily tneour · .gtd public semct. Doing I~gll lid-type

---

luhi o nable Thomas Keith then." he SIy5. Tom took ~rt in the school', ttgal din· ic .... hith SOmelimu look clns thll btc.Imt contnwenil] II tilt limo. Af\tT graduation. Tom btc.Imt a suff l!tornty in th~ I]unuvillt Ltgal Aid office. I pragrlm founded in 1968 by 001 privat~ bo~rs. including Tommy Armstrong of Scottsboro. and promi· nenl members of the lIuntsville bar.

such I i Robert Stllers Smi th. who mT\iins on the progrim's boud loday. lnd GI~nn Mlnning, who stepped down IilSI )'far afttr more tluln 2(1 )'fu$' service on the boi.rd. Their efforts to provide I~gal r~pruenhtion for \ow· incom~ tit iuns prtdal~d the crtItion of the federal Legal Sorvic.. Corporation. which W;\5 signed into I.1w by Pruident Nixon in 1974. "In thO$f: elrly days. tht sl.lf WIS grun Ind hlId Ii lot of growin, to do. But th~ young Ilwyers ...·ue talenltd. they had good T3pport ...illl the dimu. ;mil &rut )pint ~nd energy ;oboonded," Tom N)'l, The: )'tUt bt"''tm 1975 UId Ihe urly 1980s wli a tim. of r~JI;d gw..1h and outr.xh. During tlult timt. tM prog .... m had U mlny a.s tight class aclion, going at once. Initially. local judges had to bt .duCoated aoout many of the poverly Issues the legal a id IIW)I1'TS brouQht btfor. th(m. ~nd some pri .... te laW)l1'rs felt thrutoned at fiT$i. "Back thtn. thtre wen lots of chal · It~' to clitnt eligibility. You IuIrdly ever "'~ thllt today: Tom loIIys. Much l ime ...;u .pent monilorinll 1gend~s' compliinct with regul.1lions Ind gel· ling them to Optrit~ undtr tht ta..... The number 01 mff ta...'yotrs pulctd ~t 14 in the bote 19701. dropping to si. by the mid·198OJ. 1'ht JI1'OlI"",,', rAstio»d ha.s remained around 3.000 clo.ed c~s I )'Ur. cK,pitt Ill. attrition in staff attorneys. Its work hu shifted from impaci ca.stl to more routine wQr• .

Tm; AI.ARAMA U\WVER

"There were a lot of big trees to chop down th e n: Tom says of the urly yu". "There were lightning bolt decisions coming down from the ftdtral courts. and "'e "''ere respond· ing to} issuu never tackled before: These induded jail conditions suits, challenges to school feu. cOnSumu dass actions. and lots of due process cases. "A lot 0( lime was Spent on proct· dural issues, making programs work the way they "'ere suppoMd he says. The 1980, ......,r. difficult years. SW\'re funding cuts, coupled with th e uncertainty of Legal Se rv ice,' future under the Reagan administration. made recruitment and retention 0( staff problematic. In 1981. when the opportunity came up to take over LSNCA's director· ship, Tom wasn't particularly enthusiastic about assuming the role, Burgess recalls. -He didn't want to} be a ma""ger. bul somebody had to step up to the plate and do it, and he did i\. His preference i. to be a courtroom lawyer. and he continue. to do courtroom work today: Burgess says. Bar relations, always strong in Hunt.wille, continued to improve O'Jer the years as the program .slabli.hed crwibility with both judges and private lawyef5 , And over the yea rs private la"'Y"fS boca"", ITlQre aware 0( remedies available for poor people. They rteogniud that Legal Servicu helps malee the system "'Ork and dOl'sn't take away their bUSiness. "We are the safety val"" for problems in the community. We provide access for poor people seeking jll.\tice through the courts: Tom sa~'s. What keeps Tom from bu rning out after 20 years of pove rty law practice? "Seeing clients is the best thing I do. I gonuinely like my clients, like helping them, and they appr.ciat. my work. "It's a lot of fun being a Legal Se rvices attorney. I feel we have more fun than the attorneys "'e go agaill$i. It's an intell ectual lu ~u!)' to do what you n~d to do and not be guided by purse .tring.. You can livt what you btli"'" in and malee a career of it: he says. When he isn't representing clients. Tom enjoys tinkering with his three old MCBs and spending time with hi. wife. Karen . a former nuclear quality enSi· neer who now operates her own graphic de.ign business. Un like Tom. Kay Lett·Dean came to

to:

THE AlABAMA LAWYER

a well ·established Legal Service. office in the fall of 1992. after graduating from Tulane University's law school. She joined Mary Jane Oakley in the Legal Services CorporatiO}n O}! Alabama ([.SCAI office in Monroeville, where Mary Jane has practiced since 1983. Coming to Monroeville Wa5 coming home for Kay, who '01'35 born and reared there and wiJ<:u family i, still wry much a part 0( the community fabric. Both par_ ents are retired schoolteachers who grew up in the Buml Com and Uriah areas of Monroe County. Her twin brother live. in Monroe County and ttache. in neighboring Clarke County. In her senior year at Monroe County High School, a ftcruite r from the Univef5ity of the Sou th at SeWantt. Tennessee. convinced Kay to choose that college. She was awarded a full academic scholarship there but only siayW two years btfore trall$ferring to Auburn University, where she wanted to hKome a pharmacist. "Organic chemistry changed my mind about pharmacy school: Kay says, and she tamed her (\e. gree in com· munity htalth

instead. A career in law was not

KaYs plan. but one day duro ing her senior )'eM at Auburn she deCided to take the !.MT. "It asked Kay Lett_Deen yO}u to list institutions you wanted your $Cores sent to. and I put Tulane and Emory. After the results were out, I got a call from Tu~. I .till wasn't surel wanted to go to law school, but 1 did go to) New Orleans that spring, visited the school and then decided to go: Kay uys. Tulane awarded her a $14.000 yearly scholarship, During her law school summers. Kay clerked fO}r the Fede ral Depos;t Insuran ce Corporation in Atlanta, but she already had public inle rest law in mind. Tulane's law school has a mandatory community service requirement. and she spent her time at Covenant Hous e, a cen t er for

troubled youths and runaways in New Orlean •. Her interest in helping troubled juveniles continuu today. She serves on Monroe County's juvenile justice coordinating committee a nd i, working with the local Department of Human Resources on develop· ing altemati,,!: community se",ice programs for juvenile offenders. Legal Services appealed to Kay, even in law school. "I saw Lega l Service. as a means of ~.llping people less fortunate than myself and because ] wanted to contri bute to my communi· ty. J rtalized that somebody along the way had done somelhing that helped make my life what it is today. and 1 wanted the opportunity to repay soci· ety: she says. "The work has been hard but rtward· ing: Kay says, Her casework inV1llves mostly unemployment compensation claims, public hou.ing .vict ion. and public btMfits problems. "She's a .. al plus at Legal Services: says ~I onroe County Di,trict Court Judge William ) , Causey, Jr. "She's in my court about as much as an}'<lne else, and I enjoy w'Or!;ing with her: Acti"e in her church and in youth programs. "Kay is in constant demand for speeches: says her colleague, Mary Jane Oakley. Elting so......,11 knCM'Il in the community does ha,'e it> drawback$. "It is nothing for the phone to ring at home at nine or ten at night ~cause peoplt who know me thin k 1 can do something special for them oul5id. the rtgular channels. This can be frustrat· ing, but at the same time. if you can help somebody }'<lU''''' grown up with, it can be very gratifying: Kay's husband. John Dean. works for AT&T in Atlanta, and the couple takes turll$ oommuting on the wttktnds. Sht has no ptall$ to leave Legal Se",ic.. or MonfOl'Vilie anytime soon. "Right now, I'm taking one day at a time. Ultimately, I'd like 10 be a juvenile court judge: .h. say •. Currently, Monroe County doesn 't ha"" this position. • Pemy W.. _ .. CO'M'U'licatioN coo<dirwor 01 tI>e A1abalna CorI5ortk.m 01 l6gaI Serviooo Programs She .... pr..,;o..,lly ..... e4 • •• fi-'onot pI>oIogrop/>er and write<, " di'ec. !Of 01 nlormaoon for tI>e $QuItlem ~ t..oN C -. and a. aosislanl dito<;1Oi' 01 tI>e """,". cln F".... dl Service Commit, ....·• Alabama Community Relltiona Program

NOVEMllER 1994 / 383

Ra_.

Julian Harris Uli.n 1I."i. 01 I)ee.lu •.

AbI:<m>.. pr.I

or Il1o 1t8a1p!"0(.... • Ion 01 Ihi, '1010. dird on Auaul! 9. 19901. lit _ born in~on Dot· ombo. 10. 1~

oro! INoII oil " .... lift D1 thai ti!)r. Iti<

/alht •. AJ. IWrio. onolluo grondfrlhoT. C.e.

1t.1 ..... wor. luding """}"trs in Dt<.atu. from tilt )'tar 1872 whm C.e. 11anU",.,.,.w f.om Moulton to Decalur and Mgan hi. i><X!l« !w... Hi> rrollIw., FAith Wtst II.>r· rio ..... tl>< daughter or 1I<:-.~ ..1Id Anson W<It who - . , r ~ b..tlop In II><

Mtthodist ct...n:h.. /-It llorrio I.-..Itd lrom high tchool in llKatur at lho >g< or 16. lit atlen6td tl>< AI.>I>oona Polytechnic IruI,lu!t. which lot .. bu.m. Aubu'n Unl" .. on~. Alll>ough firs! conttmplalinQ' bankil\ll (.IItffr, Mr. llarri, laler d.ddtd 10 Iollow in hi. 1.lho,'s and g",ndlall><r', 1001,1,.,. and t. k. up Ih. 1,\01. II , .nl".d law ..:hoolot tho Unl"""ily 01 Virginia in 1925, Whil. 01 1h.>.1 univ."il)' h. lOa, • ltcttd 10 Phi Stili Kawa. tho Ordtr or Iht Coil .nd tho Itav.n Sod.ly. It. .."'"" on Il1o tdil<>rial board "Iho V"IT'

T,O. Howell, Jr.

dllllnII\Its.hnI ........,., of thi' " ..... ialion. poostd _ ""' !Vi 1.1~;ard

Sow, tht. tlo<'. bo ,I ••""'..-.l thai

·T.O.", "' h• ..,.. ofloclion.uly kno\oln. \01" bo.n in and ltayod • lif.long ... id.nl of Mobi l•. Al:rboma "'he" ht aUtndtd public J<hooI. ond g"du.ud Irom tho UnlvUllly 01 AI . born. School of La\ol .nd com· m.ncod proeti" in Mobil. 'n 1937. fl ...Ntd .. an w.il.tanl d~rir:t .ttorn.y and ,.cogn'ud by tho AI.bam. Scat, Ba. _ tho So • ........,..11"" for mort Ih.n 50 y.... 01 d,dical ,d urvic,. fl. founding d""to. 01 Mobil. f.d".1 S,,,n8' & LOln .•

w., •

384 1 NOVF.MRER 1m

~ ~itJl

oIlJw M>lt.:r-

m<f SIQU Bort .dopl.d in 197~ by tl>< Sup,. m. Courl of AI.bo ..... fl, ...... a m,mho, 0/ tho AI.bo .... Sill" Ba • ..,d tho Amt,icon 1Ia, ........,iolion. lI ..."..-.l for. numbo. 01 yo", On t h. 8.,.,.d of Commi .. 0/ the AIaba .... Stat, Ba,. Not 001]' """ Julion 110m,..,. oIlho grut I.awye" 01 hilti ..... ho .."""""" public and eM< ft:adoor• II, ' .. pon~td w,thout f.1t to ••• ry r<qut>t upOn II.. h .... and raourcu lor lho dod to Imp."... hi< O(XII.

i..,."

,,1"<anI

'OIU''''''

!h,,,,, ....

p.t'on of Ih. ,'1ob,I,

1 ~II,Jr.o

.'Iobi"

~ tho AW'O' .... bor ...miNII"" .1Id """ admitted to Il1o p~ti<t in Alabama. It • •• cti .... d hi. law rlogru in 1928.nd 'nt,red law prac:lk. wilh hi. f.lhor. Mr. II.>rrio .... tl«tfd M<><gan County Solicitor in 1930.nd in 1!n4. ralgning in 1936. It..... appOInltd ~ir<uit jUllgt or tl>< Eighth JudlC'lll Circuil in 1943 and ........... ntll 1965. Mr. tUm. _ tho .ltom'1 lor Morgan Counly lor ""' ... \han 20 yurs. U, .. rvtd On tho I),calu. Bo..d 01 Eduu!i"" lrom 111-13 10 1963. 11' ..... ' ""mbor oIlh. C""", no,·. Commi .. ion on lIigh .. F.duution .nd .."'"" .. ch.>.lrman oIlho IIoord 01 Trwt••• 01 Athtns COlita. for 20 y ..... M,. II ..... "'.. ch.>.irman oIlho commrllcc 01 tho Alaba.. .... SIlII. Sor wIIirh d .. fttd tho Codt 01

OJ>< ..

mun,l)'. JIll. and na!ron. In .-.cogn'tion

01 hi. public .. Met. ho 1>'>$ h:>nortd on nu .... "",. occasion>. Among I ...... Mn· ,,'I \oIttl Ih. 8rOlherlloo<l A",ard of Ih. N.tion.1 Conf... nco 01 Chri ,tian. and J..... , •• I«lion .. Ih. honor .. of Ih • I).e.lur C,n ... 1 Ho.pillll founulion Cab. .nd the ""';1'\11 01 , Dt<.atur p.rbIrc tchool .. lho Jul .... IIo.m EI.""nll!), School. II, ...... charttT mtmbotr 01 tht

llKatu. Rotary Club and twntd .. a Poul Iwm fellow by that club. for 50 yt.ort Julian IlIUVoI tho m.n·, Bibl. cia" at f'rtt Unit.d Methodi,t Church. So di.· tingui ..... d - . hi • ..,,;<t that Ihi, cw. bta" his nam<' The Julian liar';' ~nd. 110"" Ribl. CII... , Surtl]'. his omil,. h" ..... I .nd his "". dom ..,,11 b. ", .. Iy mi ... d by.1I \oIho ~ .. Ironottd 10 'n.io1 usocialion Wllh Juhan, II " I".c,. how".... i, muth "",r. lhan fon<I """",riO$. Iii. lif< " • c,,",\lnu'nQ t«\,mony IIu1Iho pra<t ic< 0/ law should not bo a .. lfish pm"',1 0110<I..... and la",. but ... Ifl ... dtdicolKlt\ 10 tilt .. Me. 01 !hoot in nud. II, .... lefl 10. all 01 us ""'" darm lho namt of "lawytr'" tl>< porteet txamplt 01 nobl. aOO rlewt,d ...vitt!O Il1o ·J •• I"", Mist .... • . -JoIr. A. CMdtII UI,ionII friead .... odmlrn 01 J.Ji•• 1t.1rri1

DKaI.,. Alaba.....

Cuild. and

a m.mb .. 01 the board 01 tho fin. he ..... T.O.

10"

ginMz uTho OIl"""'" followrng hi. steond)'tar ",law ",hool Mr. ItarrU

Arlo Mu,.um of tho Soulh. fl. \oIas .1",

Please Help Us

a m,mber of Ih, f.udom Foundation.

17W A/rI!II:Imo

Ih. Bo.hm Socitty .nd tho Cuid.d do Malaga Organiulion ........ II .........,..1 mystic s""i,ti ... th, Ath.I,ton Club and Ih. Mobil. Counlry Club. II. tho omiot ,n II>< finn 0/ lbotl'.

\I0Il • ~ to ~ ........,." 0( tho ba. with Infomrat;on about tho

po""'"

10"

Johnston.II~

T.O ........ tco,ni .. d by hi. p...... • tough a"" .kill.d nogotlOlo.... woll . . . ""ry .ble.1Id ~ompt !i ti'" ;r.dvout. In tho courtroom. T.O . wU ~ ~.vole~ folh" .nd fami ly m.n .nd Itfl surviving him 0 son. T.O. Iloweli. III 01 Mobi" .• r:b.ugh. t... ehrisoit H(>IottIi 01 Atlanl>. and krrrciIIi .... dtvottd Intnd. I)ot Boylrin. also 01 Mobilt._ nwl)'OIh..... lot ........

- Rkt.anf !Iou..... ..,..okknl MohUt 110 • .uJOdotkN>

~ .~ .

><C.

_ d their ~ n. IrIaINma SUrIt It.- and. tho EdiIorioI ~ _ no ..., 0/ knowi", ..twn ..... d OUr

..........._ .......... ...u.

fiN. "'"- IaI<t Iht timt to ~ .. witlr tIrM I.w.n..ti<>o. II you wUIr 10

.mt. oomtIhirc abouIlho ~'. hI. and proIusionaf >rXOn'Ij>IloIr .... "" in tho rJlOII>!int, pItM Irmrt your _ to :!SO and send ... JIict.... if possibIt. W.........

for i\Ulllication

""""*'

tho riIfII to «IiI ...................... Ied ... lho -_ - section. "'"_ ....r&wnI irIr:rrmD;rn to tht foI. Iowr.... oddmo: ,..,...... L.. .'I."",. 11ot..w..-~.

r oO.

ao. .156-

_..........,..AL 31610 1

Til£ Al.A8AMA LAWY£II

Daniel A. Pike

Wi '·' ". D'ni,1

"'.

Pikt •• di.·

1inaui.hed mtm·

be. of Ihi •• uooi.tion, p .... d .... y on May 12,

1994:an<i Wh ..... , the

.. h..... aff.ctionat.1y known ....... a n.liv. of Hob,l. wher. he att.nded pUothLoI ~ publiI: xhooil. .Ie urned hI< bachelo. of xitnu de .... in 1968 from Spnnah,tI Collet<......... he helped found 1h< Alpho Delta Ganvna {"I,m,t;'. In 1!161!, he rt<:tlYfd 1h< O·I.ury "'.... ..:1.1 Sprinahitl ,n '«<linollon oIlh. offort. lowa..:llhe btU'''''''nl 01 tilt community . II, .ll,nd,d Ih. Unive .. ily o( AI.ba .... .... h... h. g'.~"'l,d (rom Low xhool in

oftht.-\lab,vna Tn.>I "-)'t"A/4<xLoliorL Dantp«ioI....t in tht rn<l"" 01 ......• ;Ii"" I.... Plnicula,ly ",'"01'1.1 injUry .nd oIe.lh '"""Mna "",nlnn, .....,.k.... Ite wa. r<cogn ... d .~d ,,,p«l.d •• being highl~ Pfofkion1 .nd obI< in Ihi< ..... of II.. plKllC< of law. D;o.n " .... <lfyoj«l flrnily .... n.nd loft .urviving him hil ... ,f•• V,u8hn P, k. 01 Mobil •. IWO d.uAhl .... Cingn .nd Til.ny, onol h'l moll,,,, Ch.i,ti", lbrn· monds 01 .'1obi". as well as 1WO .in"..

m.mM. hi. n.m. and •• coini .. hi. conl"bulion. rna.d. 10 ou. p. of...i"" or>J to thIS «Immun'ty, Sow.1h<rdo«. be d.tsQIwd thallMn.

1971. l)on ..... a ..I ..... oithe US, "...". >I p.uid.nl of Ih. Skyline c....nlry CI .... in M-obolo and was a mem· be. of Ihe Mobil' Ba. Auociolion. lhe AI>b.lmo ~I' &r and 1h< """""'" Tri.oJ ~" """""""'" ..... n.. an oI'6cft

Ernest RI)' Acton

John Heron Edm ondson. Jr.

Charles Leroy tl oward. Jr.

Nonl~

Admilled: 1950 Died: Seplember 2. 199-1

Tampa. nQrida Admifled: 1952 Died: 1993

Bfrmmgham Admitted: 19-19 Died: Seplembt. 12. 1!l9-i

Joh n Calvi n Adams

David Bern ard Ellis

Joseph ,", un tl ey John son

flirmingham Admilled: 1947 1Jftrd: Augusl23. 1993

Tuscalorutl Admilled: 1974 Died: Augusl 10. 1994

Mnu1ted: 1966

Died: Jun. 21. 1994

Willi"m Jackson Allen

Claude A. Gholston

George Alexander LeMaistre

Mob,l< 80. A.uooj. .\;0., .... i... to ~

""""""

H......,d

1:1...... ~ ....

.oo Jo Ann I\'unxhoL

_ Ri<hanl

Bou...u

[Jot,"""

Died: February22. 1993

Admitted: 1939 DiN: May 19.1993

Admilted: 1933 Died: $(pltmbt. 26, 1994

Thomu Legnt nd Borom

Miles Shinkle Hall

Randolph A. Lorie

QUIrk

NOtllgonwry

Admill.-d: 1928 Died: f ebruary 2, 1!l92

NO'ltIlQlrn'l"V Mmitted: 1934 Died: July 29, 1994

Died: June 3. 1994

Joe T. Bums

Julian Harris

Roben M. Maclaurin

II~

Mmiltfti: 1938

Died: M"ch 31. 199-1

D«olur Mmillfti: 1927 Died: AujfUst 9. 1994

Died: A/m12. 1994

Hu gh Franklin Culvemouse

Thomas Orr Howell. Jr.

Alben Gordon Rives

Tampa. non'do Admilled: 19H

Nobile Mmilled: 1937

Bim,ingham Mmilt<'li: 1925

Admilled: 1942

Adm/lied: 1953

Died: AugulI 25.

1994

l)ied:

May 7. 1994

Admilll.'II: 1931

l)ied: September 26. 1994

NOVEMBER 1994/ 385

Joe Graham Barnard hU ... , Ju~g. Jo, G.. h.m 8.1rnord.• member of tho Birm· ingh.m Bar Assod.tion ,inn 1956. di.d.t tho 'g' 0/ &I on July 18.

1994: .nd , Wh,,, .. , Judg, Barnard .mnd,d WOO<lI.""n High School, Birmingham. Soolhorn Collog<, .nd u.. Uni,~ ... ity of Al>bama School of Law; .nd, II'ho ..". Judg. Barnard ",,,,d hi' counlry with di.tin,lion .• arnlng tho Combot Inf.ntry 8.1dgo and tho Bron.. Stat ""ith V.lor in th, Ko,..,n 11'"" and r<lire<! as >. colon,1 f, om th, AI.b,,,,,, Army National Guard: Ind. 1I-"lIt...... Judg. B>m;ml WM. lif,long member 0/ t:.,t La .. Unit.d Methodi't Church. "*>ore ho organ;U<! >nd dirt<ttd the Boy', Choi,.ro:! dil'Kte<! the CI'IaoctI

Judge James Russell McElroy he"'" Judge J.me> H"",I I Met:l· roy, who ..""d in lofle""n Coon·

ly .. an acti•• dr<uit judg. fo. .I"""'t 50 YUIS, .nd .....,,,,,mumer:u,)" judge fo, ........1 yeo ... th....fi<r. d,e<!.1 lh< >II' 0(92 on Juo. 28. 1994; .nd. lI'ho,,",. Judg. M<E I,O)' w... nati,.. of Su ml" Counly, AI.b.m ...... ho "«i.... d hi, .. eondory education th.". arod worke<! in the rail,<oo irod"'try until he .n.nded tn. lJniv''' ity of AI.Mm. School of La,,' (,ptei.1 cou .... 1 .nd tho Birmingham &I>00I of Law. boing admil· l.d to tho bar in 1924: and. Who"",, Judge McElroy was engage<! b,'.Oy in priv.t. I.", praeti« .nd . . . part ·limo ... i.t.nl city altorney 0/ Birm· inallam until h< was .ppointe<! a circuit Judge in 1927•• t ago 25. in which pooi· lion he "Mol continuou,ly .. an octi"" judge until hi. "ti"""nt in 1977. Ite ""ed a I.ngthy tenu" .. p,uiding judge of the dr<uit from April 1942 to Juno 19M. following .... hicn ""ico h. docte<!to " Iurn to u.. lrial bfoch until hi. reti""",nt; arod. Who,.a>. Judg. Mctlroy pmidod "'.. , many not.bl. trial., both tivil.nd crimi·

386 1 NOVEMijl-:1l 1994

Bo:II Ch>ir and the Celebtat"" Ringe.-.; ond. Whorus. Judg. B>ma,d II>"< frtt ly of hi. timo to hi. cnmmunity... rving •• ~i.<Cto, of tho Chancel Choir. Ih< Chan· e<1 Belt Choir .•nd th< Yooth Bo:I I Choi, .t S.v.nly·Si. th St,..t P, .. byt"i.n Chu.ch... 1.. <1<, of an Expl,,,., Scout Po,t .• nd .s.n .cH.e m.mbtr 01 t ho W"bk,. Club .nd tho Birmingh.m M.tro Chapt" of th, &..ci.ty for PI... r· ".tion .nd Entou .... g.m.nt of 8.1rbtr· $hop Quart" SiJllliog in ,\meric.; and. 1I'h.rus. Judg. B>mard ...... 01 with hono' .nd di'lin<lion .. Birmin~h.m City Court Judg. for ,",,~n YUIS and ... circuit judgt fo, 16)"toll" and. Whor..... Judge s.mord .. ""d hi. f,t· low judg.. by to.ching (,.qu.nll\' in judk..1ac>.demi" .nd .. m'na .... whkh i> tho work in "'hich ho w", .ngoge<! .t tho Hme 0( hi. d..lh; .nd.

nal, arod boamo a nati<>nali)> ,uognized a ulhorily On Ihe law of •• id.net. Ho .uth""d what i. now known .. M<:t'/· ~'. AlaN"'" £v~. ,,'hieh <;Onlinu" urod .. u.. .uthor,h,p 01 Do." Chari.. W. C.mbl •. as tho mo,t wid.ly u"d I.~.I trUli .. in the .tat •. H. w., • prolific writ" and I'<lu"r . • rod "Md <M'r ""ri· od< 0/ many >~" ••• port·ti"", focu lly "",mho. 0( Birmingham School o( Law, the Uni"""ity of Alabama School of La.... , Samford Uni"'r>iII'Cumbfrl.nd Schoof of I..aw, ond the Mo<liQI College of Ab.bamo;

\\'htrus, Judgo MeEt,oy Ita.< bun hon·

0,,01 by tho .. tabli.hment of Endow.d

Pro(...... "hips in his honor 31 Samford Uni"" ... ity·' Cumbfrl.nd School 0( Law arod lhe Uni",,,ily 0( Al.bama School 01 La"". ",hor. a schol.rship in hi' hono, Ita.< be.n .. tabli,hed .• nd by .uch 0",;",;10", tho Uni"""ity 0( Alabo"", La,,' &hool Doan', -Notable Sorvi«" "word (19721 ~ the BinningtJam Bar ,...."d.· tion·. -Law arod Ju,h .." .,,·.nlI19721 .rod othor hono,,; and, II'h." ••. Judg. Md-:lroy .. ",,01 hi. community. state and ""tion throughoul hi. lengthy car.. r in ,uch di ...... octivi· ti.. "' tho V1>1CA. tho Junior Chamber 0/ Comm.rc •. as chairman of lh< Counly Council of Unit.d St,vk. OrllOoi.

"'0

J.ff,,..,,,.,

Wh." ... Judge Barnard ""., d.. ~ly r.. pt<t." by tho membf" of this <om· mun ity, lh, bo, . nd hi, con'''8u« on the hooch, .nd. Wh" .... w. "pr". our enduring rtg;.rd.nd ".pt<t fo, OOr distiJllluishe<! coIt<>gue who "Md 00' prof.,,;oo , our natt. and our ,OUn1ry in >uch.n ... m· piaI)' "",nnor. n i•. \he"fo", hereby "..,)-,,,d, by th, E. tculi", Committ __ of lhe Birming. ham har Associ.tion , that thi. ~ • ..,Iu· tion bo 'Ilrt.>d u (>on Ih< minult. 0/ this Commin.... nd that eopi., the roof bo "nl to his wif•• Bony Sy... B>rnard: hi' ;on , Jot C .... h.m 8.1rnard. Jf.' >.nd hi, moth<r.lltmiet Graham 8.1mord.

_ 1I,Ili.m

~' .

CI.,.t

r....I<I<nt Birmingh.m Bar Auowtion

I.lion. and ch.irm.n of.1I .d.i.o. y

b<."Il. to local draft boord. in JtIf...on County during World War IJ; . . . co· ""g;.nize' of tho ALlbo"", Circuit Judg.'. A1soci.1ion .n" il! pas' pr .. id,nt; . . . mtmbf, of lh< bo>.rd of the Birmingham Educational T.ltvi. ioo """",,i.tion. Inc" ... ,W'( membfr for !loy> Summer C.mp, at C.mp Winnat"k" . nd . , . IMgtim. momb . . . nd past mem!>.. of tho board 0/ ,t',..ord. of Trin ity Uniled ~ I .thodi>l Church; .rod, ""lIt ..... Judg. MetlrO)' w" po:wesstd of . I",.. of the I. w equal.d only by hi. lov. of Cod. hi. f.mily and h i. foll ow man. Hi. g.... t int.ll.el. high mo",1 and ethical 'llrndaro.,'rod hi> ti ..I, ,, <110m to cont'ibut. to ju.tic •. logic .rod good ord .. in the ,u le of I.", h.". indelibly ""m",,~ him ••• I,ad., 0/ tho high<>1 ordor .nd havo contribut.d iotm.",ur · .bly to the impro,'<mtnl of th, bfne h .rod bor of thi, ,\at.; ."d, Wh ...... ..... t UP'''' Our enduring "g;..d .rod ' "pect lor this most di.tin· gui.hod coll •• gu. for hi. I><trl .., and ..10.....rvi«.

"'ea

-\\ll1lam S. Clark Pr..idont Bi""lR~h.m

II.. A..,,<I.. llon

THE AlABAMA ~WY£R

CLASSIFIED NOTICES RATES : Yam",.: 2 free list.ng1 Of 50 words Ot less per bar member per calendsr year EXCEPT for "pos;lion want· ed" Of "poSllIOf1 offered" listings - S35 per inSEtrloon of 50 WOlds 01 less. $.50 per additional word . Nonmember.: S35 per insertIOn of 50 words or less, $ 50 per add,tlonal WOfd . Ctassiflfld copy and payment must be received acCOfdlJ'lg 10 the IoIIowong publishing schedule; November '94 1. ...8 - deadline Septembef 30, 1~ • .January '95 I. .... deadlIne No:Mlmbef 30, 1994. no deadline extensions 'MIl be made

Send ctassdied copy and ~. payable to The Alabama LBIIYE". 10" A1abitma Lswyer Classdieds, C/O Margaret Murphy. P O 8olI4156. Montgomery. Alabama 36101.

FOR RENT • OFFICE SPACE : B~mingham. Korr\e. wood, fu....ished. 0ver1I0w work ...... able. IndudH: 'Kej)lion. conrer-. tw.k - . ba$Ic: oIfic:a .......... CUI' ...... Itnty... UIiIitiM, cIearWIO...a, fT.- UN 01 fax (IocaI).-.! oop;.r, I«U'I1)1 "'-tailed, phone syslem ~, no ~. F'hI:o:'lto (205) 879-2908.

FOR SALE • LAWBOOKS: Wmiam S. He;" & Co I~ .. HfIIIng In. l"IIal communllt lot 0Yef 150 ~ ..... W. buy. sell, fIIppraiM ,II I,wbook,. $end W~n1 lisi. to : Fu

(1181 883·5595 Or ph""e ' ·800·828·

ALA8AMA CODE: Updll.d • •11 el Alabama Cede anrootaled. MIni condi· lI<><>-me>st velum. . h..... MY" been epoened . $350. Call KlnlY Gaites at (205) 53""'10185. LAW800KS: Alabama Ripen. and Alabama Appillati Rlpons , 1916I B75: cem,nuad by SOUlh ..... 2d vol· umes 331-614 ; Cadi of Alabama, 1075; West' , Ligal Form •. 2d. All books PII'd!as<KI ntw In January 1992 • nd mest nlvl' opoent<l 0' Slampoed. ContaCI Julll 5Incl.), al (205) 939· 0033; tax (933-6133). LAW8OOKS: Ant Ju, Proof 01 FICtS. I. 2. 3; Up-104ata. ' - oonr:Iiuon. Phone Oon Hardaman. Cullman . (205) 739·

''''''.

7571. • LAWBOOK$: Save 50 poII<CMlI 0t1 your Iawbooks. CIII Nalional Law Retoutc»,

Am.r le.', '••gut 1. ... _

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~ m-.n~ lDwesI prices.

Ex<:.!-

Ieonl quIIliIy . 5alisiaClioo"l gvaraotHd. UI to HII your unn..-d DooI<s. NHd thtlvlr>g? W.....n .... w. brand name. 'Ieel and wood lhelving II drs· count ~ •. F," qual .... 1·800·27B·

can

77i11. Nallonillaw R!I$OU"". LAWBOOKS : Comp!ell"'w libfary. E. clilant CGnd,tion . Will IIpa.all. Ala . Olonl ; Ala. App. Rap.; All . RIports: A.... Repott...: An\Ju' Tria": POF 111. 2ro:Il 3rd; Legal FOITTII; Ala. COOn: Shepard$. AI up to daII. Con· taCI Do<1 Ha"iemal' . Culmai', al (205) 13IH,081.

Tin: Au\I!A.'"IA LAlllYER

SERVICES • EXPERT CONSULTANT, CNId abuse consuIIanl With ...,........ In •• t 9 _ and cau uparianc. cu"anUy Imployed at I iall la.el will p,ovm case assistance anc1IOr -.luca1ional PI"" """" In aoosa .".. of Factitious Disorder by Pro<y. MuflChauNl' by Proxy S yndrom •. and .a.u.1 abu ... Non· Georgia casu only. AaIllOllllbla. Ret· .... nell •. Louisa J. L.IIfIIIr. P.O. 80. 737. Conyers. GItorgiIr J02(l7. Phone (4001) 185-not!.

• PARALEGALS : Alllniion InOrnlly. and PIIfSCI1nel d~.eIo< • . The National Acad.my 10' P ...I.glr Studi .. has Qualil it<l paralegal' In your local a' . a

"Mly 10< Imploymenl in law off;';" Ind

corporalion,. OJ r paralegal graduala. .r. tr.lnt<lln .,.as 01 law.• uCh as lamily, tNl .Itall. IMI. cn-n;nal. PI"" bll •. and corpo, a tll la ... . S lud.nl irIIIIn-. .. a aIIo .. 1;bb. "llIaQ ... roo '"' tor lhIsa MrW::es. For 8CIdiIianII inIotmalion. c:.It lie ~,t 0IIi0a II 1-300-285-30125•• .<1. 3t).t I. PROFESSIONALLEGALINVESTlGATOR : i.k;ensad and bonded. SpaOa II~ . 1r>g In Iinaneill and sacu,ili •• "Ialed c..... E. I."'i .... axpflrilf1<:fl In ... ~II"

coa.. ~ ".,rig.!ions and CII$I prepara· tion lor trill. For c:onli6enlial COI'IIUIII· lions or COpy 01 C.V. and ..,......... con"CI Wyman O. Hiog in ••1 (205) 2SO-M92 or P.O. 80. 21\011. Monl· gomery. Alabam~ 36121.

• DOCUMENT EXAMINER : Examination 01 OUlliion.d Documantl. C.rtlfl.d Fe,.nllc HandwritIng and Dowm.nl E........... T..wy._ year' . xpert. ...,. in .. lorlotllicdcaJ_ .. otWni. RMmarty. Chta! 0 _ _ ~

Anlll'11 . USA Cflminal Inv.stlg.llion L.bOr.IO<IaI. D,pIomal. (cenlti-.:l}Brltl.h FSS . Oiplom~I' (~ .. \J!I-.:I)_ ABFDE . Member : ASOOE ; 1,11,1: SAFDE : NA CDl. R•• ume Ind lea Icht<lula upon '."U85t . Hlnl Ma y,r Gidion, 2 18 Merrymcnt Onva. Ar..IgouaIa. GItorgiIr 30901. Phone (106) /160-<1281 . • LEGAL RESEARCH: leoat_m. help. E>per .."ced 811Orney'. "*Tbar 01 AI-.n. SUlI. Bar since 19n. . - . . to 11,1, llIw library. WE STlAW a.,II· able. Protn9I deadline searchel. Sao.h Kalh!)'n Farnell . 112 Moore Budd ing. NOVEMBER 1994 / 387

Montgomery. Alabama 36t04. Phone (205) 277-7937. No represenrarion is made //lar rile quaMy 01 the legal stK,.;ces 10 be periormoo Is gr6al6r than "'" quality 01 legal SfKVk;es perfo<med by other la"Ytlrs. DOCUNENT EXAMINE R: Cerlilied Foren. ic Document Examiner. Chi,1 documenl examiner. Alabama Depart· ment or FO<ensic Sciences. retired. B.S .• M.S. Graduale. unIversity-based resident school in oo.::ument e.amination. POOlishOO I\il!ionaIIy and "'temally. Eighteen years trial experience, stale/tedoral courts of Alabama. For~. aite<ations and 00cument authenticity e.aminalioos. Criminat and non-aiminal matlOI'S. Amet· iean Academy 01 Forensic Sciences American Board 01 Forensic Document Examiners. American SocieW or Ques· t ioned Document Examiners. Lamar Mille<, 3325 Lorna Aoad, ,2·3t6. P.O. Box 360999. Birmingham. Alab ama 35236-0999. Phone (205) 968-4158. FORENSIC DOCUMENT EXAMINA· TION: HandWriting, typewriting. altered documents. Crim inal and civit mall... s. Med ic al records, willS, contracts, deeds. checks. anonymous letters. Court qualilied. Thirty years comi)ined exporienot!'. ABFDE cert~ied. Members, American Academy ot Forensic Sci· enot!'. American Society or QuntOneQ Documenl Examiners. Inlernallona l Associatio<1 lor ldenmication. Camey It. Nel&o<1 F"'lIf1sic Documoot Laboratory. 5855 J immy Carter Bouleva rd . Nor· cross (A~anta). G&orgia 30071. PI>one (404).16-7690. DEPOSITION SUN MARIES : Paralogals lfained in all areas of law worI< 0<" computerized progrem in our ollice saving you valuable review time and paperwork. cost effective. strict cenli· denti ality. Guaranleed case contlict checI< with each wmmary. meets your schedule, even ovemight. Customized to your needs. linished proo::tva Is user· Iriendty. converts 10 your compute< sys· tem. OI'Ie hundred pages summarized free with lirst order. Phone 1·800· DEPO-786 (1·8()().337-6786). 388 1 NOVEMBER 1994

PROPERTY SETTLEMENTS : Dissolu· tion of marriage. Retired pay aflatysi •. MemDar fn service or retired. Military, civil serv;ce. state and municipal. All ott>er types 01 rotir""""'ts, $240. Retiroo Pay Anatysls. Phone HIOO-704-7529 or (719) .75·7529. INSURANCE CONSULTANT; ute ar<! healt!1 . claims and ""IJOO$. AdviceItestlmony on punitive damages. Retired insurance company vice-president on slaff wilt> 40 years policy drafting and claims e'~rienot!'. ARKE Professional Sef'fir::es. Inc.. P.O. eo. 783, Pensaco· la. Florida 32594 . Phone (9~) 9682130 or 1-8()().700-ARKE. LEGAL RESEARCH AND WRITING: Research and briol writing at rna! leval and appellate level. licensed Alabama atlOrney. Hugo Black Scholar. Access to University 01 Alabama Law Library. Lexis MVP available al no additional COSI. Contact VirginIa Buck. Phone (205) 752·6773 . No tepreSllnlation is msde thaf tile qualiry of rile legal stir· vic<os 10 be petformed is gtBatOl llIan tha qualiry ol/ha lega! satvices pat· !orm«J by other lawyers. CONTRACT PARALEGAL SERVICES: Certified paralegal available !or o:>nttact wor1<. Prompt and professional seMce .., ordering. Ofganizi"ll and summarizing medical reco,ds: summarizing depositions: drafting legal doo.men!s; and....:lfd processino· Exlensive trial preparatIOn ot!erod. induWIg tI'KI preparation at Iri<" exhibit$ and personal assistance at trial. Carmen Curtis, 2845 Bri· dOlwood Terrace. Birmingham, Alabama 35060. Phone (205) 620-<1053.

not-...

rnontl1S. Federal Reports. tOtO Vermont AvenuB. NW , '406-AB, Washington, D.C. 20005, Phone (202) 393·3311. VISA and Mastl!lCani """""'Pied. MANAGING ATTORNEY; Legal Ser,""",s Corporalion 01 Alabama. a non· profit law r;,m providing bee lega l services 10 the poor. is seeklno 10 ti ll the 01 managing anornoy in its Tuscaloosa Regional Office. Minimum three years 01 law practice. Management experience required Sala ry' OOE. Please respond to MefOllria ludgood, hecutive Direclor. Legal Ser· vices Corporation 01 Alab ama. 207 Montgomery Street, 500 Ban BuiO:ling. Montoomery. Alabama 36104. LSCA ill an Equal CWOrtunity Employe<.

"".iIion

LITIGATION ASSOCIATE ; An eSlab· lished, small bUl growing law firm in Montgomery seeks an associate with two 10 loor years 01 e.pe<ience. Strong civilliligation experienao desirtld. Salary r:ommenwrate with education and back· ground. Posltio<1 availabie immediately. Send resume Ie MilrI!Igirlg Partner. P.O. Bo. 4992. Montgoms,y, A labama 36103-4992. ERISA ATTORNEY; New Orleans lirm seeks ERISA associate with one-livs years 01 benelits law experience . The firm's pra.ctice encompassGs all ~s 01 emplo yee benelits law, including advice and planning with "specl 10 retirement and weHare plans as well as a~ active ER ISA litig al ion practice. Excellent credenlials. communical ion ability and organizational skIlls required. Send resume to Hiring A!tOt· ney. P.O. Box 750368. New Orleans, Louisiana 70t 75-0366.

POSITIONS OFFERED ATTORNEY JOBS; National and F_ra! Emllloyment Report HlghIy regarded monlhty detai led listing 01 attorney and Iaw·related jobs with the U.S. Governmemo othe< pu~idprivate employers in Washinoton. D.C. throvgr.oul the U.S. and abroad. 500·600 new Jobs each issue. $34 tor three months; $58 tor six

ASSISTANCE NEEDED PUBlIC RIGHTS-OF·WAY ATTORNEY : AnyoN.! e><pO.!flen:;ed In deaI"'g with the Alabama Oej:>artment or TrartSportatio<1 representing or delending claims by homeowners where roads are beIng widened. CaII .tad< at (205) 251-9956.

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JOURNAL.