Untitled Texas Attorney General Opinion

The Attorne,y General of Texas May 1, 1985 JIM MATTOX Attorney General Supreme Cowl Building Honorable Oscar H. Ilsuzy Opinion No. JM-313 P. 0. Box 12548 Chairman Aus!in. TX. 70711.2348 Committee on Jurisprudence Re: Use of the “bad check fund” 512,4752501 Texas State Senote under article 53.08 of the Code Telex 9101074-1367 Telecopier 512/4754266 P. 0. Box 12068, Capi.tol Station of Criminal Procedure by a dis- Austin, Texas 78711 trict attorney, county attorney, or criminal district attorney 714 Jackson, Suite 700 Dallas, TX. 75202.4506 Dear Senator Mausy: 2141742.8944 Article 53.08 of the Code of Criminal Procedure authorizes the 4824 Alberta Ave.. Suite 160 county attorney, d:lstrict attorney, or criminal district attorney El Paso. 7X. 79905-2793 [hereinafter attorney] to collect fees from persons who have passed 91515333404 “bad checks” and est.a.blishes a special fund in the county treasury in which the fees must be deposited. Under article 53.08, the fund is ’ Texas. Suite 700 administered by the attorney rather than by the county commissioners I, ,ton, TX. 77002CNll court. You ask r;everal questions about the propriety of the 713/223-5886 attorney’s making specific types of expenditures from the fund. Most of the disbursemen,:s about which you inquire relate to specific expenses of the prmecutor’s office, including payment for office 006 Broadway. Suits 312 Lubbock. TX. 79401.3479 supplies and equipment, for the salaries of various employees, and for 0061747.5238 certain “bonus” expc!nse allowances and salary supplements, You also ask generally wheth’zc the attorney must obtain the approval of the commissioners court prior to making expenditures from the fund. Both 4309 N. TsnIh. Suite S this general question and your specific questions, however, depend McAllen. TX. 78501.1685 5121682-4547 upon the scope of the statutory authority granted to the attorney by article 53.08. Accordingly, a basic explanation of the provision must precede our response ‘to your specific questions. 200 Main Plaza. Suite 400 Son Antonio. TX. 78205-2797 Article 53.08 p,rovides, in part: 512m5.4191 (e) Fetzs collected under this article shall be An Equal OpportunitYl deposited :in the county treasury in a special fund Allirmative Action Employer to be a6$nistered by the county attorney. district at’torney, or criminal district attorney. Expenditur@ from this fund shall be at the sole discretion of the attorney, and msy be used only to defrfy ?he salaries and expenses of the pro- secutor s l>.ffice, but in no event may the county attorney, &trict attorney, or criminal district attorney sceplement his or her own salary from this fund. Nothing in this Act shall be construed p. 1427 Honorable Oscar Ii. Hauty - Page 2 (JM-313) to decrease the ,cotal salaries, expenses, and allowances which a prosecuting attorney’s office is receiving at the time this Act takes effect. (Emphasis added). TWO aspects of this section are relevant to your inquiry: the creation of a special fund and the grant of expenditure power to the attorney. Several prior opinions of this office dealt with article 53.08. See Attorney General Opinior,s W-584, IN-439 (1982); MU-241, IN-188 -00,. Controversies over interpretation of the act stemmed from article 53.08’s directive thzlt: the fund is “to be administered by the county attorney, district attorney , or criminal district attorney” and that “[elxpenditures from thI,s fund shall be at the sole discretion of the attorney. . . .” Ordinnrily, expenditures of county funds are controlled by the county commissioners court. In question 18, you ask whether the attorney must obtain the approval of the commissioners court before making expenditures from the fund. Three prior opinions of this office provide neclessary background information and are significant to the scope of the attorney’s authority over the fund. Attorney General Opini~,n MW-188 (1980) concluded that county auditors may prescribe accounting and control procedures for all fees collected pursuant to artic1.e 53.08 despite the fact that the fees were properly to be deposl.t,ed in a special fund in the county treasury. The opinion found no conflict between the district attorney’s limited statutory discretion to determine the purpose for which zxpenditures from the fund are to be made and th; auditor’s statutory pover to prescribe accounting and control procedures for making deposits ;uld disbursements. (Emphasis added). Thus, the attorney has “limi,:ed statutory discretion” over the nature of expenditures from the fund. Some confusion may have arisen from the language in Attorney General Opinion MW-439 (1982). The opinion concluded that the statutes which require compns R-908 (1976); R-656 (1975). The employees of all three types of prosecuting attorneys fall under the provisions of article 332a, V.T.C.S. See Attorney General Opinions H-922 (1977); E-908 (1976). Attorney General Opinion H-908 reasoned that article 332a is a more s;?ecific statute which was enacted later in time than article 3912k. Article 332a. in section :5, provides: Salaries of asc;l.stant prosecuting attorneys, investiaators. secretaries and - other off& person& shall te fixed by the prosecuting attorney, subject ?o the approval of the com- missioners court of the county or the counties composing the district. (Emphasis added). Thus, in response to part of question 2, the existence of any “salary schedule” depends upon the salaries set by the various attorneys’ offices. Because the attorns,y’s power in article 332a is “subject to the approval of the commissioners court,” some clarification of our response to question number 16 is necessary. As indicated, article 332a addresses various que’stions relating to personnel matters and to other expenses of the attorney’s office. Sections 5 and 6 of the act deal with salaries and travel expenses, respectively, and each section expressly requires the “approval” of the commissioners court. In contrast, article 53.08 of the code places expenditures from the fund within the “sole discretion” of the prosecuting attorney. Article 332a was enacted in 1973, see Acts 1973. 63rd Leg., ch. 127, at 275, whereas article 53.08 wasadded to the Code of Criminal Procedure in 1979. See Acts 1979, 66th Leg., ch. 734. 51. at 1802. Therefoc’e. article53.08, as the more recent expression of the legislature’s intent , supersedes article 332a to the Honorable Oscar H. Hauty - Page 9 (JM-313) extent of conflict, &, with regard to expenditures from the special fund. To the extent that sa:Lary increases and office expenses may be paid from the special furd, the attorney need not obtain the commissioners court’s approval. Neither article 53.08 r,or article 332a. however, addresses the question of salary supplements or bonuses. Clarification of the distinction between salary “increases” and salary “supplements” 16 necessary st this point. We assume that by “supplements” you mean payments for work that has already been performed by an employee. The two differ. See generally Attorney General Opinion MW-459 (1982). Salary increases are within the discretion of the prosecuting attorney by virtue of section 5 of article 332a. Although the provision requires the “approval of the commissioners court ,I’ see Attorney General Opinions H-908 and H.-922, to the extent that salary increases may be paid from the specl.al fund, the attorney need not obtain commissioners court approval. The commissioners court may not. however, reduce the amount already authorized for salaries in order to counteract, and thus interf e,ce, with the attorney’s “sole discretion” over the fund. See Attorney General Opinion H-922 (1977); see also Code Grim. Pro=‘;-art . 53.1:3(e) (“Nothing in this Act shall be construed to decrease the total salaries . . . which a prosecuting attorney’s office is receivirg at the time this Act takes effect.“). Nevertheless, salary increases or supplements cannot be retroactive. Article III, section 53 of the Texas Constitution provides, in part: The Legislature ,shall have no power to grant, or to authorize an;r county or municipal authority to grant, any extra, compensation, fee or allowance to a public officer, agent, servant or contractor, after’service has teen rendered, or a contract has been entered into, and performed in whole or in part. . . . See also Tex. Const. art. III, 044. Section 53 prohibits the retro- active payment of salary bonuses, supplements, or other salary increases by political subdivisions. Fsusett ‘I. King, 470 S.W.2d 770 (Tex. Civ. App. - El Paso 1971, no writ); Pierson v. Galveston County, 131 S.W.2d 27 (Tex. Civ. A,pp. - Austin 1939, no writ); Attorney General Opinion H-11 (1973). Even if district attorneys, county attorneys, and criminal dizrtrict attorneys are not themselves a “county or municipal authority” for purposes of article III, section 53, the special fund created by article 53.08 is clearly comprised by county funds. See Attorney Ganeral Opinion MW-584 (1982). Thus, the attorney administering the special fund may not grant extra compensa- tion, fees or allowances to ;u\ employee after the employee’s servlces have been rendered. p. 1435 Honorable Oscar H. Hausy - Page 10 (JM-313) In sum, with regard to questions 1, 2. and 4, the payment of salary supplements to employeoa of the prosecuting attorney’s office is distinct from the payment of salaries. Although salary increases or supplements are authorized, payments, by whatever name, which compensate for past work performed by an employee of the office, are prohibited by the Texas Constit,ution. III. Payment of “in kind” bonuses. In questions 5, 7, 13, 14, and 15, you ask about expecaitures from the fund to pay various allowances and expenses to or for the employees of the attorney’s office. The preceding discussion about the constitutional prohibition against the payment of extra compensation to public employees after services have been rendered also applies to “bonuses” which are not directly related to salaries but which are intended or function as added compensation. For examI#le. in question 5 you ask about parking allowances. Paid parking may be a legitimate part of compensation, but when cash “parking allowances” are given directly to employees as a bonus after the employees’ services have been rendered, the payments subvert the purpose of article III. section 53. Some of the allowances about which you ir.q,uire appear to be added compensation; others fall within the category of reimbursement for expenses properly chargeable against the county. In general, payments of allowances and expenses for public employees must reasonably relz,t,e to the performance of the employee’s official duties. See Attorney General Opinions MW-116 (1979); E-1164 (1978); H-152, 8-m (1973); W-978 (1971). Article 53.08, in sub- section (e), authorizes the attorney to make expenditures from the fund only for “salaries and texpenses of the prosecutor’s office.” Moreover, article III. section 52 of the Texas Constitution expressly prohibits the use by a politi,cal subdivision of its public funds or credit for private purposes. State v. City of Austin, 331 S.W.2d 737 (Tex. 1960) ; Attorney General-Opinion JM-220 (1984). An incidental private benefit from the expenditure of public funds for a public purpose is not prohibited. E,arrington v. Cokinos, 338 S.W.2d 133 (Tex. 1960); Attorney General opinions JM-220 (1984); PM-251 (1980). In question 5 you arik about “automobile and/or parking allowances.” As indicated, parking for employees when they come to work may be a legitimate perquisite of employment. It is not, however, an expense incurred in the performance of the employee’s official duty. On the other hand, if the employee’s official duties require travel, an “automobile allowance” may be an expense of performing official duties. A,rticle 332a. la section 6, provides: Assistant prosecuting attorneys and lnvestiga- LOTS, in addition to their salaries, may be allowed actual anti necessary travel expenses incurred in the discharge of their duties, not to exceed the amount- fixed by the prosecuting p. 1436 Honorable Oscar H. Mauzy - PaI;e 11 (~~-313) attorney and apprcved by the commissioners COUKt of the county 0,: the counties composing the district. All claims for travel expenses may be naid from the General Fund, Officers’ Salary Fund, or any other av$.lable -funds of the county. (Emphasis added). As discussed previously. article 53.08 of the code replaced. to the extent of conflict, the provisions in article 332a which require commissioners court approval. To the extent that legitimate expenses may be paid from the fund, the attorney need not obtain comnnissioners court approval. BY “automobile allowance ,” we assume that you refer to a set amount of money paid at clz::taln intervals to defray the cost of operating a privately-owned automobile which is used in the conduct of the employee’s official duties. See Attorney General Opinions H-992 (1977); H-152 (1973). If the z of the employee’6 vehicle is necessary to the actual performance of the employee’s official duties, section 6 of article 332a tuthorizes the payment to assistant pro- secuting attorneys and investigators of “actual and necessary travel expenses incurred in the dis-harge of their duties.” Nevertheless, a flat rate automobile allowance which bears no relation to the number of miles actually driven on oEficia1 business is not authorized. -See Attorney General Opinion H-152 (1973). Question 13 refers to tl,e payment of State Bar dues for assistant prosecutors. In Attorney General Opinion MN-251 (1980), this office determined that a state agency may spend public funds to pay the notary license fees of its employees who provide notary public services as part of their duties. This did not constitute an uncon- stitutional grant of public funds for s private purpose because the expenditure was directly and substantially related to the performance of the agency’s governmental function. Although the payment of bar dues by assistant prosecutors may be necessary to the performance of the assistant’s duties, it is an expense related to the individual’s profession rather than an “office expense.” A distinction must be made between the minimum qualifications for public employment and additional training and/or specialization for. additional duties. Accordingly, the attorney may decide to pay the State Bar dues of assistant prosecuting attorneys only as additional compensation, and not as an expense of the office. Opinions MN-276, MN-156 (1980) ; H-1042 =i55f+2&t7;;;) ;=:ef;;: (1966) ; C-506 (1965). The same constitutional principles apply to the expenditures you inquire about in questions 7, 14, and 15. Question 7 refers to expenditures from the fund to pay the expenses of assistant pro- secutors who attend continuing legal education programs. Such expenditures .are authorized :lnoofar as the programs are directly and p. 1437 Honorable Oscar H. Msuzy - Pagl? 12 (JM-313) substantially related to the performance of the office’s governmental functions. See Brazoria Count 537 S.W.Zd 89 (Tex. Civ. APP, - Houstz[lst Diet.] 19716, * writ , Attorney General Opinions no -=-=Y’ MW-251 (1980); H-1164, H-1133 (1978). As indicated previously, expenditures must relate to t‘ie duties of the prosecuting office but are not limited to the specific prosecuting and collection functions covered by article 53.08. I:> addition, when expenditures are made which involve potentially substantial incidental private benefits, article III, section 52 requires that conditions be attached to the expenditure to assure the use of public money for a public purpose. Attorney General Opinion JM-2X (1984); see Attorney General Opinions JM-103 (1983); MW-423 (1982); MU-60 (1979). For example, the Brazorla County v. Perry case dealt with a deputy sheriff who attended a law enforcement officer’s training program at county expense. The deputy sheriff agreed to reimburse the county for the expense of the program if he did not remain in the enploy of the sheriff’s department for at least two years after completing the training program. In question 14 you ask whether the attorney may make expenditures from the fund to pay the co:l:tege tuition of his secretary. It is conceivable that certain coll”8e courses and training programs may be directly and substantially rel,ated to the performance of the part of the office’s governmental functions which the secretary performs. The payment of college tuition, however, for the general education of the secretary is not authorized. On the other hand, if the college tuition is limited to cours,es which train the secretary for a different position or additi,onal duties which are part of the performance of the office’s governmental function, the expenditure appears legitimate. The Tex;as Constitution, however, requires that the office attach contractual c.onditions to the expenditure which will assure that the office will rc:c.eive the full value of the expenditure, including the value of the expenditure as a “loan” to the secretary. In question 15, you refer to “management retreats” on dude ranches in the Texas hill cowtry. It is conceivable that a legiti- mate training or continuing Yegal education program could be located in the Texas hill country. Nevertheless, if by “retreat” you do not refer to a formal training or education program, but rather an occasion merely to increase the morale and productivity of the attorney’s office, it may be nothing more than a private vacation at public expense. As such, it Eunctions as and is subject to the legal limits mentioned above which are applicable to additional compensa- tion. It must be a pre-established part of the employee’s compensa- tion. In question 8 you inquire about the “federal, state, or local income” tax ramifications of t,hese “in kind” benefits. There is, of course, no state or local inccome tax in Texas. Questions about the federal income tax consequence of the receipt by individual employees of "in kind" bonuses should be addressed to the Internal Revenue p. 1438 . Honorable Oscar H. Mauzy - Page 13 (JM-313) Service. We note, however, c:hat for some purposes, Texas law draws a distinction between expenses and compensation. See Attorney General Opinions JM-39 (1983); NW-391 (1981); -cf. MW-334 (1981). IV. Expenditures for equipment and supplies. In questions 6, 11. and 12 YOU ask about the propriety of making exnenditures from the fund for various types of ec,uipment and suppli&. . Subsection (e) of article 53.08 expressly provides that expenditures from the fund may be used to defray the “exI,enses of the prosecutor’s office.” As indicated previously, expendj,tures are not limited to the direct costs of effecting article 53.08, ‘>ut may be used to defray the expenses of the entire prosecutor’s office. Nevertheless, expenditures must directly relate to the official duties and functions of the pro- secutor’s office. Consequently , the attorney may make expenditures from the fund to pay for a cc~mputerired office security system and new carpet if those things are re.ssonably necessary to the performance of the official duties of the p.rosecutor,s office. To the extent that such expenditures can be made from the special fund, the approval of the commissioners court need c.ot be obtained. V. Expenditures for members of the grand jury. In questions 16 and 17 you ask whether the T’ttornev may make exnenditures from the fund to-pay for coffee, douf;tlnuts, iunch, and framed photographs for members of the grand jury. These are clearly not expenses of the prosecuting attorney’s 0ff:lce. Compare Code Crim. Proc. 1038. Consequently, totally aside E,rom the ethical considerations involved, the attorney lacks the authority to make such expenditures. 2, U M M A R Y The county alztorney, district attorney, or criminal district attorney who administers the special “bad check” fund created pursuant to article 53.08 of ,:he Code of Criminal Procedure need not obtain th,e approval of the commissioners court prior to making expenditures from the fund. Expenditures from t.he special fund are not limited to the costs which are related solely to the prosecution and collection of bad checks; they may be made for the whole prosecutor’s office. Outlays from t’he fund are, however, limited to defraying the salaries and expenses of the prosecutor’s office. Although salary increases and pre-existing “in kind” forms of compensation are authorized, no l~onuses, salary supplements, or allowances may be made which operate as additional compensation to an employee after the employee’s services have been rendered. An employee may, however, be reimbursed for legitimate expenses p. 1439 Ronorable Oscar H. Maury - Page 14 (JM-313) incurred in the Performance of the employee’s official duties. The attorney may make expenditures from the fund to pay for of:f:lce equipment and supplies if they are reasonablg, necessary to the performance of the official dut:les of the prosecutor’s office. Expenditures for t!w benefit of members of the grand jury are not authorized. JIM MATTOX Attorney General of Texas TOMGREEN First Assistant Attorney Gener,al DAVID R. RICHARDS Executive Assistant Attorney Ceneral RICK GILPIN Chairman, Opinion Cormaittee Prepared by Jennifer Riggs Assistant Attorney General APPROVED: OPINION COMMITTEE Rick Gllpin, Chairman Jon Bible Colin Carl Susan Garrison Jim Moellinger Jennifer Riggs Nancy Sutton p. 1440