. . .*
.
June 16, 1967
Honorable Robert 9. Calvert Opinion No. M- 91
Comptroller of Public Accounts
Austin, Texae Re: Conetruction of Section 6
of Article IM of the Con-
stitution of Texas relating
to State partlclpatlon In
programs financed with funds
from private or federal sour-
ces for establlshlng and
equipping facllltles for
assisting handicapped ln-
Dear Mr. Calvert: dlvlduals.
Your request for an opinion reads, In part, as follows:
“The following questions are being asked as
a result of a new procedure which the Texas Educa-
tion Agency and the State Commission for the Blind
desire to follow in the administering of the funds
received from the Federal Government and the 25s
of the cost of approved projects to be absorbed by
local and private organizations.
“Please advise as follows:
“(1) Does Section 6, Article XVI permit the
withdrawing of funds from the State Treasury In the
form of a Grant in Aid before expenditures contem-
plated under the Grant in Aid are made?
“(2) Under the provisions of Section 6, Article
XVI, If the fund8 provided for in this provision are
placed In the State Treasury, do the departments
have the right to withdraw funds from the State
Treasury under any basis other than reimbursement
for expenditures covered by agreement between the
State agency, Federal iovernment, and local or
private organlzatlons?
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._ .
Hon. Robert 9. Calvert, page 2 (M-91)
Section 6 of Article XVI of the Constitution of Texas,
RI) adopted by the electorate In 1966, reads as follows:
“(a) No appropriation for private or ln-
dlvldual purposes shall be made, unless authorized
by this Constitution. A regular statement, under
oath, and an account of the receipts and expenditures
of all public money shall be published annually, In
such manner as shall be prescribed by law.
f “(b) State agencies charged wlth’the respon-
sibility of providing services to those who are
blind, crippled, or otherwise physically or mentally
handicapped may accept money from private or federal
sources, designated by the private or federal source
as money to be used in and.establishlng and equipping
facllltlee for asslstlng~thoee who are bllnd~, crlp-
pled, or otherwise physically or mentally handicapped
In becoming gainfully employed, In rehabilitating
and restoring the handicapped, and In providing
other services determined by the state agency to be
essential for the better care and treatment of the
hand lcapped. Money accepted under this subsection
Is state money. State agencies may spend money
accepted under this subsection, and no other money,
for specific programs and projects to be conducted
by local level or other private, nonsectarian asso-
ciations, groups, and nonprofit organizations, ln
establishing and equipping facllltles for assisting
those who are blind, crippled, or otherwlse~physlcally
or mentally handicapped In becoming gainfully employed,
in rehabilitating and restoring the handicapped, and
in providing other service6 determined by the state
agency to be essential for the better care or treat-
ment of the handicapped.
“The state agencies may deposit money accepted
under this subsection either in the state treasury
or in other secure depositories. The money may not
be expended for any purpose other than the purpose
for which It was given. Notwithstanding any other
provision of this Constitution, the state agencies
may expend money accepted under this subeection with-
out the necessity of an appropriation, unless the
Legislature, by law, requires that .the money be.
expended only on appropriation. The Legislature may
prohibit state agencies from accepting money under
-413-
Hon. Robert 9. Calvert, page 3 (M-91)
this subsection or may regulate the amount of money
accepted, the way the acceptance and expenditure of
the money is administered , Andythe purposes for which
the state agencies may expend the money. Money
accepted under this subsection for a purpose pro-
hibited by the Legislature shall.be returned to
the entity that gave the money.
“?hle subsection does not prohibit. state agencies
authorized to render services to the handicapped from
contracting with privately-owned or local facilities
for necessary and essential services, subject to
such conditions, stanflards, and procedures as may
be prescribed by law.
The provisions of Section 6 of Article XVI of the
Constitution of Texas having been adopted at the general election
ln 1966, there has not been an occasion for the judiciary of this
State to construe Its provisions.
It Is noted that under the foregoing provisions, state
agencies are specifically authorized to accept money from private
or federal sources for the purposes of assisting physically or
mentally handicapped lndlvlduals and are further authorized to
spend the money accepted for specific programs and projects to
be conducted by local level or other private, notiaectarlan assocla-
tlons, groups, and non-profit organizations for such purpose. The
state agencies may deposit such money either In the State Treasury
or other secure depositories. State agencies may contract with
privately owned or local facllltles for necessary and essential
services.
The Legislature may require that the money be expended
only on appropriation. However, we are not aware of any statute
enacted pursuant to this provision which requires the expenditure
of money under this Section to be pursuant to an appropriation.
In view of the explicit language of Section 6 of Article
XVI of the Const~Ltutlon of Texas quoted above, It Is our opinion
that your questions are overned by the authorities cited In Attorney
General ‘a Opinion c-644 7 1966) wherein it was held:
“You are therefore advised that it Is the
opinion of this office that the Governor’s Com-
mittee on Aging may contract.with religious
Institutions for the performance of services that
are within the scope of authority granted by
Article 695k, Vernon’s Civil Statutes, and the
-414-
Hon. Robert 9. Calvert, page 4 (M-91)
Texas State Plan for Implementing the Older
Americans Act of 1965. . . .”
_ In
_ Attorney
. _ . General’s Opinion C-644 this office relied
on the landmark oplnlon by the Supreme Court of Kentucky /Re
Building Commission v. Effron, 310 Ky. 355, 220 S.W.2d 83b. (1
. wherein the Court stated:
“It Is well settled that a private agency ’
may be utilized as the pipe-line through which
a public expenditure Is made, the test being not
who receives the money, but the character of the
use for which It IS expended.” (Emphasis aaded.)
It Is well settled that tax money raised ostensibly for
one purpose cannot be expended for another purpose, Carroll v.
Williams, 202 S.W. 504 (Tex.Sup. 1918). It Is our oplnlon th t
this principle would apply to all public monies: Therefore, ionles
acquired by this State pursuant to the provisions of Section 6 of
Article XVI may be expended only for the purposes set out therein.
In fact, Section 6 of Article XVI specifically so states. Whenever
the state agency acting pursuant to the provisions of Section 6 of
Artlole XVI establishes a local program and operates through private,
nonsectarian assoclatlons, groups , and nonprofit organizations, such
state agency Is actually carrying out the provisions of Section 6 of
Article XVI. No provision Is contained In the above quoted Section
of our Constitution which requires the expenditure of such funds
only on a reimbursement basis. On the contrary, Section 6 of
Article XVI specifically Btates that the state agency Is authorized
to contract with privately owned or local facllltles for necessary
and essential services. Therefore, the state agencies charged with
responsibility of providing services to those physically or mentally
handicapped may cause such programs to be locally administered
through private, nonsectarian associations, groups, and nonprofit
organizations. This may be accomplished through contracts for the
purpose of establishing services determined by the state agency to
be essential for the better care and treatment of the handicapped
as specifically provided in the Constitution.
Your questions are therefore answered as follows: Sec-
tion 6 of Article XVI permits the withdrawing of funds acquired
pursuant thereto before expenditures are actually made by the or-
ganization administering the program at the local level. The wlth-
drawing of such funds Is not limited to reimbursement for expenditures,
but are governed by the agreement between the state agency, the
federal and local or private organizations, provided the state agency
determines In its discretion that such method Is “essential for the
better care and treatment of the handicapped.”
Hon. Robert S. Calvert, page 5 (N-91)
'SUMMARY
Section 6 of Article XVI of the Cdnstltution
of Texas authorizes state agencies charged with
responsibility for providing services to those
physically or mentally handicapped to spend money
accepted under the provisions of Section 6 of
Article XVI for specific programs and projects.
Such programs may be conducted by "local level or
other private, nonsectarlannassoclatlons, groups,
and nonprofit organizations in providing services
determined by the state agency to be essential for
the better care or treatment of the handicapped.
It is not required that expenditure of state money
be made only on a reimbursement basis, but only
that a contractual obligation pursuant to the
provisions of Section 6 of Article XVI be created.
General of Texas
Prepared by John Reeves
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Hawthorne Phillips, Chairman
W. V. Geppert, Co-Chairman
Pat Bailey
Dyer Moore
Malcolm Quick
Nell Wllllams
STAFF LEGALASSISTANT
A. J. Carubbl, Jr.
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