Untitled Texas Attorney General Opinion

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 -2767- 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?' -2760- . - 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 -2769- 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 -2770-