Hon. George W. McNeil Opinion No. M-1175
State Auditor
Sam Houston State Office Bldg. Re: Whether the Texas Credit
Austin, Texas 70711 Union Department is sub-
ject to the provisions of
Article 6823a, Vernon’s
Civil Statutes (the Trave
Regulation Act of 1959))
Dear Mr. McNeil: and related question.
Your recent letter requesting the opinion of this
office concerning the referenced matter states, in part, as
follows :
“In connection with our regular audit
work at the Texas Credit Union Department
we have observed that their current practice,
with respect to the payment of a partial per
diem allowance of either $3.00 or $5.00 to
certain employees while working in the cities
designated as those employees’ headquarters.
We are told that such partial per diem allow-
ance is in lieu of in-town mileage, meals and
other incidental travel expenses, and that the
practice, with varying amounts and work areas,
dates from the inception of the Department in
1969. We have also observed that employees
traveling in areas outside their designated
headquarter cities, but within the State,
receive a per diem allowance of $18.00 plus
lO$ per mile for the departmental use of their
personally-owned automobiles.
“The views of this office, which are
based in part on the conclusions expressed
in your Opinion M-978, October 20, 1971, and
the practices of the Credit Union Department
differ as to whether or not sufficient au-
thority now exists for the use of departmental
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. .r .
Mr. George W. McNeil, page 2 (M-1175)
funds in this manner. We desire the opinion
of your office with respect thereto.
“More specifically, is the Texas Credit
Union Department subject to Article 6823a, of
Vernon’s Civil Statutes, referred to as the
‘Travel Regulations Act of 1959’, even though
its funds are maintained apart from the State
Treasury?
“If the answer to the foregoing question
is affirmative is the Texas Credit Union
Department subject to the mileage and per
diem rates specified in the General Provisions
of the current General Appropriations Act?”
The Texas Credit Union Department was established in
1969 by Article 2461-38, Vernon’s Civil Statutes. The Texas
Credit Union Commission was simultaneously created. Article
2461-38 transferred the jurisdiction, authority, powers, and
duties theretofore conferred on the Banking Commission, in
relation to credit unions, to the Credit Union Commission and
Department.
Articles 2461-44 and 2461-47 provide for the compensa-
tion and expenses of the Credit Union Department. Section (f)
of Article 2461-47 provides, in pertinent part, as follows:
11
. .Notwithstanding
. anything to the con-
trary contained in any other law of this state,
all fees. nenalties,
-~ charges. and revenues
collected by the Credit Union Department from
every source whatsoever shall be retained and
held by said department, and no part of such
fees, penalties, charges, and revenues shall
ever be oaid into the General Revenue Fund of
this staie. All expenses incurred by the
Credit Union Department shall be paid only
from such fees, penalties, charges, and
revenues. and no such exoense shall ever be
a charge’against the funds of this state. . . .”
(Emphasis added).
* All reference to Articles are to Vernon’s Civil Statutes.
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Mr. George W. McNeil, page 3 (M-l 175)
It is apparent that none of the travel expenses of
the employees of the Credit Union Department are paid from
the State Treasury pursuant to the provisions of any General
Appropriations Act.
Section 2 of Article 6823a (the Travel Regulations
Act of 1959), states, in part, as follows:
“The provisions of this Act shall apply
to all officers, heads of state agencies,
andate employees. . . .” (Emphasis
adde;r) .
That Act then goes on to set certain standards and criteria for
the payment of travel expenses of State employees.
The gravamen of your first question is, therefore,
whether Articles 2461-38, 2461-44 and 2461-47 remove the Credit
Union Department from the Travel Regulations Act.
In construing Article 6823, the predecessor of the
Travel Regulations Act, it was held in Attorney General’s
Opinion No. O-4628 (1942) that Article 6823 applied only to
the travel expenses of agencies and departments covered by the
General Appropriations Act.
Moreover, Attorney General’s Opinion No. WW-1053
(19611, in construing the Travel Regulations Act, specifically
held that
“Since such employees are not being
reimbursed for such travel from authorized
amounts in the General Appropriations Acts,
and are being compensated for their travel
by non-state agencies only, such compensa-
tion, from local funds, does not violate
Section 8 of the Travel Regulations Act of
1959, as the Travel Regulagions Act is only
applicable to funds appropriated by the
Legislature.” (Emphasis added).
See also Attorney General’s Opinions Nos. O-5589 (1943),
O-6066 (1944)) WW-1095 (1961)) WW-1222 (1961), and WW-1262 (1962)
for similar holdings.
In light of the ample precedent afforded by the fore-
going Opinions of the Attorney General, and the acquiescence of
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. _ .
. -
Mr. George W. McNeil, page 4 (M-1175)
the Legislature in such construction, we hold that the travel
expenses of employees of the Texas Credit Union Department are
not subject to the provisions of the Travel Regulations Act,
inasmuch as the expenses are in no way paid with funds appro-
priated in the current General Appropriations Act.
You are further advised that the travel expenses of
employees of the Credit Union Department may be paid pursuant
to Section (f) of Article 2461-47, as that Section is the necessary
pre-existing law authorizing the payment of such expenses.
Inasmuch as your first question has been answered in
the negative, it is not necessary for us to answer your second
question, as same was predicated only on the basis of an af-
firmative answer to your first question.
SUMMARY
The travel expenses of employees of the Texas
Credit Union Department are not subject to the
provisions of the Travel Regulations Act of 1959,
Article 6823a, Vernon's Civil Statutes.
Very.&ruly yours,n
c~Gg&&R[Nb?E
Attorney General of Texas
ii
Prepared by Austin C. Bray, Jr.
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Kerns Taylor, Chairman
W. E. Allen, Co-Chairman
James McCoy
Michael Stork
Jim Swearingen
Scott Garrison
SAMUELD. MCDANIEL
Staff Legal Assistant
ALFRED WALKER
Executive Assistant
NOLA WHITE
First Assistant
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