OAG 40-12.

• Case Date: July 15, 1940
• Court: Oregon

Oregon Attorney General Opinions 1940. OAG 40-12. 15OPINION NO. 40-12[20 Or. Op. Atty. Gen. 15]The legislature may by general laws subject municipalities to a general plan for retirement and pensioning of public employees to the extent that such legislation does not impair contracts previously entered into by such municipalities. Such compensation for past services would not ordinarily be for a public purpose.July 15, 1940.Hon. Charles A. Sprague,Governor of Oregon. Dear Sir: Under date of June 10, 1940, Acting Governor E. M. Fatland submitted for my opinion the following questions:

"1. Is it within the province of the legislature to provide that local governmental units participate in the state system mandatorily, or would municipal home rule provisions prevent inclusion of municipalities on a mandatory basis.

"2. Might other local government units, other than home rule municipalities, participate on mandate of the legislature, or the people.

"3. If a state system were set up, are there any barriers which would prevent participation by local government units, municipal and other, at the option of the local government

16 unit, whether through (1) action of the legislative body of the local government unit, or (2) by proper vote of the electorate of the local government units." These questions are hypothetical in their nature and could perhaps be much more satisfactorily answered if the particular statute contemplated were submitted as a basis upon which to issue an opinion. However, in answer to the first question submitted will state that local governmental units are but parts of the state and are subject to regulation by the legislature in all matters of public policy, excepting in case of municipalities affected by the home rule amendment of the constitution in matters strictly local. In re Application of Boalt, 123 Or. 1, 16, the court said:

"18, 19. When the people of a city legislate in regard to matters affecting the sovereignty of the state of which the city is an instrumentality, the warrant for such legislation must plainly appear in the Constitution or statute of the state in order to preserve the balance between municipal and state authority, and accomplish unison of purpose in the administration of the laws of the state. It is in consonance with our whole scheme of government that the legislature

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