May 9, 1967
Honorable J. W. Edgar Opinion No. M-71
Commissioner of Education
Texas Education Agency Re: The authority of the Texas
Austin, Texas Education Agency to allocate
federal and State funds to
hospital districts for the
purpose of carrying out the
State's plan for vocatlonal
Dear Dr. Edgar: rehabilitation In said area,
Your request for an opinion states that the Amarillo
Hospital District, which is coextensive with the boundaries of
the City of Amarillo, created pursuant to Section 5, Article IX
of the Constitution of Texas, is interested in the possibility
of the district being designated as a local administration re-
habilitation agency under the supervision of the Texas Central
Education Agency, pursuant to the State Plan for administration
of the program of Vocational Rehabilitation In Texas. Your re-
quest on the authority of the Amarillo Hospital District to be
designated as a local admlnlstratlon rehabilitation agency reads,
in part, as follows:
"For the several years past and at the
present time, the Texas Education Agency has
not provided for administration of such Pro-
gram by a political subdivision, a local rehablllta-
tlon agency. Section 4.7> State Plan, copy forwarded
herewith. Current1 the entire Program is admlnis-
tered pursuant fro 3' an approved State Plan, directly
by the deslgna%d-State Agency through its central
and several field offices; financed by federal and
state funds appropriated. House Bill 12, Acts 59th
Leg., R.S., 1965, Article IV, at pages 177-181. See
also: Articles 2675-1, as amended; 2654-1, Sections
1, 3; and 2654-3, Sections 1 and 2.
"Only recently have the federal laws been
amended to allow for a flexibility in State ad-
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Hon. J. W. Edgar, page 2 (M-71)
ministration of the Program. The Federal Voca-
tional Rehabilitation Act (Publlc.Law 83-565 as
last amended by Section 8(a) of Public Law A9-333
authorizes and/or provides, in substance and in
so far as pertinent herein, that the State Board
of Education may be designated as the sole State
agency to administer the plan, ‘or to supervise
Its administration In a political subdivision of
the State. ’
Section 8(b) provides that amendments of (a) shall be-
come effective July 1, 1967, except that In any State
(like Texas) such amendments shall become effective
earlier on or after November 8, 1965 (the date of en-
actment of this Act) as such State has In effect an
approved plan meeting the requirements of the Voca-
tional Rehabilitation Act aa amended by subsection
(a).
“The Texas Education Agency is contemplating the
alteration of it8 State Plan to meet the requirements
of the Vocational Rehabilitation Act as amended, there-
by to authorize and approve political subdlvlsion(s)
of the State locally to carry out the State function;
that is, the State Agency only to supervise admlnl-
stratlon of the State approved plan by a political
subdivision, such as the Amarillo Hospital District.
Section 401.8 In the federal regulations revised to
conform to the amendments (Federal Register, Vol. 31,
No. 9, at page 501) further clarifies or reads in
part as follows:
“The State plan may provide for administration
of the program through a sole local rehabilitation
agency of a political subdivision of the State,
under the supervision of the State agency and in
compliance with Statewide standards established
by the State agency (except to the extent there
Is a waiver of Statewideness, D 401.9). If the
plan provides for local administration, the local
rehabilitation agency shall be responsible for
the administration of all aspects of the program
within the political subdivision which it serves
If the State plan provides for the ad-
&&ration of the program by local rehabili-
tation agencies, the State plan shall set forth
the standards governing their organization and
methods of administration, and shall describe
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Hon. J. W. Edgar, page 3 (M-71)
the nature and the extent of supervision exer-
cised by-the State agency In order to assure
observance In the application of State standards
and the effective achievement of the objectives
of the State plan throughout the State except to
the extent that the requirement for statewideness
Is waived in accordance with 8 401.9.
“Assuming this Agency adopts an amended and
approved State Plan to provide for flexibility In
State administration authorized In the amended
Vocational Rehabilitation Act, we need and will
appreciate receiving an opinion from your Office
on the following three legal questions which give
us concern in the matter.
“1 . Does the Texas Central Education
Agency have the authority to allocate or
grant appropriated federal and state funds
to a political subdivision of this State to
carry out said State functlo~n under the
Vocational Rehabilitation State Plan and
supervision by the Agency?
“In the light of the authorities cited in
Attorney General Opinion No. M-32, we do not believe
that the allocation or grants, being for governmental
purposes, could legally be regarded as violative of
prohibitions set out in Section 51, Article III,
Constitution of Texas. Nor do we find any provision
In the law creating the Amarillo Hospital District
(Art. IX, Sec. 5.> Constitution) which prohibits State
participation In Its hospital rogram; asmay be
found In Article IX, Sections E and 9, Constitution
of Texas.
“2 . Does a political subdivision of
this State (Amarillo Hospital District)
have authority to spend for vocational re-
habilitation program ourposes local funds;
and/or state and federal appropriated funds
approved and allocated by this Agency pur-
suant to the Vocational Rehabilitation State
Plan, when administered under the supervision
of the Texas Education Agency?
"3. May any political subdivision of this
State (city, county, hospital or school district)
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Hon. J. W. Edgar, Page 4 (M-71)
legally be approved by this Agency pursuant
the State plan to administer a vocational re-
habilitation program, under the supervision
of the Texas Education Agency?"
Section 5 of Article IX, Constitution of Texas, authorizes
the creation of a hospital district coextensive with the boundaries
of the City of Amarillo and the Amarillo Hospital District was so
created pursuant to Its provisions. The purpose of the District
Is to provide for "hospital care for needy fndividuals."
Article 2675-1, VernonPa Civil Statutes, provides:
'Section 1. The Legislature of Texas does
hereby accept the provisions and benefits of an
Act of Congress passed June 2, 1920, amended
June 5, 1924, entitled: 'An Act to provide for
the promotion of Vocational Rehabilitation of
persons disabled In Industry or otherwise, and
their return to civil employment.'
"Sec. 2. The Treasurer of Texas be, and
he is hereby authorized and empowered to receive
the funds appropriated under said Act of Congress,
and Is authorized to make disbursements therefrom
upon the order ~of the State Board for Vocational
Education. The State Board of Vocational Education
is empowered and instructed to cooperate with the
terms and conditions expressed in the Act of Con-
gress aforesaid,
"Sec. 2-a. The Vocational Rehabllltatlon
Division, through the Supervisorof Rehabilitation,
is authorized to receive gifts and donations for
rehabilitation work, said gifts and donations to
be deposited by the Supervisor of Rehabilitation
In the State Treasury, subject to the matching of
same with Federal Funds up to such amount as the
Federal Government may allocate per biennium to
the State for said work, and which has not al-
ready been met with state appropriations for said
biennium.
'Sec. 2-b, Provided no person shall ever
receive any commission in whole or In part for
sollcltatlon of any funds as provided in this
Act.
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Hon. J. W. Edgar, page 5 (M-71)
“Sec. 3. The Vocational Rehabilitation
Division of the Texas Education Agency Is designated
and authorized to provide for the rehabilitation
of severely physically disabled Texas citizens,
excepting those who are blind as defined by House
Bill No. 347, Regular Session, 49th Legislature,
1945, Section l(f), and further that nothing here-
in contained would affect or repeal the present
crippled children’s restoration service as authorized
by Article 4419c and administered by the Crippled
Childret;t’s Division of the State Department of
Health.
The above-quoted provisions constitute a part of the
Vocational Rehabilitation Program established by the State In
1929. Acts 41st Leg., 1st C.S., 1929, ch. 23, p. 57. The pur-
pose of the Program Is to vocationally train disabled Individuals
so that they may return to civil employment, and the program Is
administered b the Texas Education Agency. Attorney General’s
Opinions 0-646 3; (1945); O-6933 (1945); 0-5666 (1943); m-1229
(1962).
Article 2675k, Vernon’s Civil Statutes, is a lengthy
Act providing for the creation of Rehabilitation Districts. Sec-
tlon 2 of Article 2675k provides:
‘Rehabilitation Districts may be created
to provide education, training, special services,
and guidance to handicapped persons peculiar to
their condition and needs, to develop their full
capacity for usefulness to themselves and society,
and to prevent them from becoming or remaining, In
whole or,,in part, dependent on public or private
charity.
In view of the foregoing provisions, it is our opinion
that the. Vocational
_ Rehabilitation
^ -. . Program__ of_ the State of Texas
1s an Integral part or tne state’s overall educational program,
Under Article 2675-1, the Vocational Rehabilitation Division Is
authorized to accept the provisions and the benefits of the Federal
Government In regard to Vocational Rehabilitation and is authorized
to disburse all such funds received for such purpose. Under Article
2675k, a Vocational Rehabilitation Program of the State Is administered
locally through Rehabllltatlon Districts, created for such purpose,
and constitutes a comprehensive act authorizing the creation of
Vocational Rehabilitation Districts for the specific purpose of
providing education, training, special services and guidance to
handicapped persons peculiar to their conditions and needs,
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.
Hon. J. W. Edgar, page 6 (M-71)
On the other hand, hospital districts are created for
the purpose of providing "medical and hospital care to the needy
Inhabitants." Chapter 5, Title 71, Revised Civil Statutes of
Texas, 1925, as amended. Such hospital dIstrIctas power to enter
Into contracts with agencies of the State of Texas is for the pur-
pose of "performing its duty to provide medical and hospital care
to needy Inhabitants." Section 5 of Article IX providing for the
creation of the Amarillo Hospital District specifically states:
"The district shall not have the Dower to
levy any tax for maintenance or operation of the
hospital or facilities,, but shall contract with
th litlcal subdlvlslons of the state or private
?ndf%~~als , associations, or corporations for such
purposes." (Emphasis added).
Thus, the power of the hospital district to contract is
limited for the purpose of providing for maintenance and operation
of the hospital or facilities. The Amarillo Hospital District does
not have the power, by virtue of the provisions of Section 5 of
Article IX of the Constitution of Texas to educate and provide the
necessary educational training contemplated by the Vocational Re-
habilitation Program to enable handicapped persons to gain the
necessary training to enable such Individuals to work In our general
society. Of course, the Vocational Rehabilitation Division of the
Texas Education Agency has the power to contract with the Amarillo
Hospital District to provide medical and hospital care incident to
the Vocational Rehabilitation Act but the Hospital District does
not have the authority to administer the entire Vocational Rehabill-
tatlon Program in that area. Furthermore, as above noted, Article
2675k authorizes the creation of local Vocational Rehabilitation
Districts designed specifically for the purpose of carrying out
the Vocational Rehabilitation Program of the State and Federal
Governments. While it may be contended that since the Legislature
has created a specific agency ror the purpose of administering the
Vocatlonal Rehabllltatlon Program locally that no other local sub-
division Is authorized to perform duties for which local Vocational
Rehabllltation Districts are created , we rind no provisions In
Article 2675k which prohibit school districts from admlnlsterlng
the program locally as a part of thelr educational program.
Your questions are therefore answered as follows:
(1) The Texas Central Education Agency has the authority
to allocate or grant appropriate federal and state funds to a political
subdivision of the State to carry out the State plan for Vocational
Rehabilitation provided such polltlcal subdlvlslon has the authority
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Hon. J. W. Edgar, page 7 (M-71)
to ‘educate and provide necessary vocational training contemplated
by the Program to enable handicapped persons to gain the necessary
training to enabie such lndlvlduals to work In our society.” As
above noted, Vocational Rehabilitation Districts created pursuant
to the provisions of Article 2675k, Vernon’s Civil Statutes, have
such power. Amarillo Hospital Districts created under the provisions
of Section 5 of Article IX, Constitution of Texas, does not have
such comprehensive power but does have the power to provide medical
and hospital care to such lndlvlduals.
(2) The Amarillo Hospital District has the authority to
spend for medical and hospital care, funds allocated under the
Vocational Rehabilitation Program, but does not have the power to
expend such funds for the comprehensive purpose to educate and pro-
vide necessary vocational training contemplated by the Vocational
Rehabilitation Program to enable handicapped persons to gain the
necessary training to enable such Individuals to work in our general
society.
(3) School districts of the State may legally be approved
by the Texas Education Agency to administer a Vocational Rehablllta-
tlon Program as a part of their educational program. However, we
know of no provlslons which would authorize polltlcal subdlvlslons
other than Vocational Rehabilitation Districts or school districts
to carry out thla program.
SUMMARY
The Texas Central Education Agency has the
authority to allocate or grant appropriate federal
and state funds to a political subdivision of the
State to carry out the State plan for Vocational
Rehabilitation provided such political subdivision
has the authority to “educate and provide necessary
vocational training contemplated by the Program to
enable handicapped persons to gain the necessary
tralnlng,,to enable such lndlvlduals to work In our
society, As above noted, Vocational Rehabilitation
Districts created pursuant to the provisions of
Article 2675k, Vernon’s Civil Statutes, has such
power. Amarillo Hospital Districts created under
the provisions of Sectlon 5 of Article IX, Conatl-
tutlon of Texas, does not have such comprehensive
power but does have the power to provide medical
and hospital care to such lndlvlduals.
The Amarillo Hospital District has the au-
thority to spend for medical and hospital care funds
allocated under the Vocational Rehabilitation Program,
- 328 -
Hon. J. W. Edgar, page 8 (M-71)
but does not have the power to expend such funds
for the comprehensive purpose to educate and pro-
vide necessary vocational training contemplated by
the Vocational Rehabilitation Program to enable
handicapped persons to gain the necessary tralnlng
to enable such lndlvl?uals to work in our general
society.
Vocatlonal Rehabilitation Dlstrlcts or school
districts may legally be approved by the Texas
Education Agency to administer a Vocational Rehabl-
lltatlon Program.
truly yours,
m7==-
C. -MARTIN
General of Texas
Prepared by John Reeves
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Hawthorne Phllllps, Chairman
W. V. Geppert, Co-Chairman
Houghton Brownlee
John Grace
Malcolm Quick
W. 0. Shultz
STAFF LEGALASSISTANT
A. J. Carubbl, Jr.
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