E NET GENERAL
EXAS
AUBTIN. TEXAS "I
February 16, 1970
Honorable R. L. ~Coffman Opinion No. M-581
Administrator
Texas Employment Commission Re: Whether TBxas Employment
Austin, Texas 78701 Commission may insure its
buildings against fire,
flood; land other hazards
with premiums f4r such
insurance to be paid by the
Comptroller from funds
granted by the U.S. Depart-
ment of Labor for such
Dear Mr. Coffman: purposes.
In your request for an opinion you state the following:
"We have been advised by the Manpower
Administration of the U. S. Department of Labor
that we are being required to insure our build-
ings. The Manpower Department's directive in this
regard reads as follows:
gr,t:~~v~~t~i~~a~~b~~~~h
used to amortize the cost shall be
insured against loss by fire, flood,
tornado, or other causes. Granted
funds may be used to pay the cost of
such insurance. The amount of insurance
should be the replacement cost of the
building. licuever,where private
financing is involved, granted funds
may not be used for insurance protection
since this is the responsibility of the
lessbr o
'As an alternative to the purchase
of insurance from a private carrier,
granted funds may be used~as contribu-
tions to a State fund to which other
State departments contribute on a pro
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Hon. R. L. Coffman, Page 2 (M-581)
rata share of coats incident to the
administration of such fund, provided
similar charges are made to other
State departments.
'Where the State agency is not
amortizing the entire building,
granted funds may be used for only
the agency's pro rata share of the coat
of insurance coverage.
'Insurance coats will be
included as maintenance and operation
expense rather than in the total coat
of the project to be amortized.'
"We have not been insuring any of our buildings
in the past because of the policy expressed in
Senate Concurrent Resolution NO. 3 adopted by the
Senate and Rouse August 24, 1921. We have been
advised that the State Comptroller will not pay
the premiums on such insurance in view of the
prohibitions contained in Senate Concurrent Reso-
lution No. 3, although Federally granted funds
may be used far this purpose and classified as
maintenance and operation expense. Accordinqly,
our questions to you are as follows:
"(1) Can the Texas Employment
Commission insure its buildings for
which Federally granted funds have
been or are being used to amortize the
coat of euch buildfnga against fire,
flood, tornado, or other causes?
"(2) If the above question is
answered in the affirmative, can the
State Comptroller of Public Accounts
issue warrants from funds granted to
the Texas Employment Commission for this
purpose by the U. S. Department of
Labor and charge same to maintenance and
operation expense of the Texas Employ-
ment Commission?'
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. -
Hon. R. L. Coffman, Page 3 (M-581)
Senate Concurrent Resolution No. 3, 37th Leg.
2nd C.S. 1921, expressly provides that no insurance policy
shall be taken out upon any of the public buildings of the
State (with exceptions not applicable) and there are Attorney
General Opinions holding that State warrants may not be
issued for the payment of insurance premiums in the absence
of specific appropriation for that purpose. See Attorney
General Opinion No. C-193 (1963). However, the general
appropriation bill for the 1970-71 biennium (Sec. 25
of Art. V of House Bill No. 2, Acts 61at Leg. 2nd C.S.
1969) provides as follows:
*Sec. 25. FEDERAL FUNDS APPROPRIATED FOR
USE. All funds received from the United States
Government by the agencies of the State named
in this Act are hereby appropriated to such
agencies for the purposes for which the Federal
grant, allocation, aid, or payment was made,
subject to the provisions of this Act..."
Therefore, in so far as the questions under consideration
are concerned, the policy of the State as expressed in Senate
Concurrent Resolution No. 3 with reference to insuring those
buildings required by Federal law to be insured has been changed
by the 69th Legislature, and the quoted enactment expressly
appropriates such funds for the designated use. Consequently,
we answer both of your questions in the affirmative.
SUMMARY
-B--m--
The general appropriation bill for the
1970-71 biennium authoriees the Texas Employment
Commission to insure its buildings for which
Federally granted funds have or are being used
to amortize the costs of such buildings against
fire, flood, tornado or other causes, and the
State Comptroller of Publia Accounts may legally
issue warrants from funds granted to Texas
Employment Conuniaaionfor that purpose by the
U. S. Department of Labor and charge same to
maintenance and operation expense of the Texas
Employment Commission. .A
Ver#truly yours,
era1 of Texas
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Hon. R. L. Coffman, Page 4 (M-581)
Prepared by Jack Sparks
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Kerns Taylor, Chairman
W. E. Allen, Acting Co-Chairman
Wayne Rodgers
Jack Goodman
Pat Cain
John Reeves
MEADE F. GRIFFIN
Staff Legal Assistant
ALFRED WALKER
Executive Assistant
NOLA WRITE
First Assistant
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