Untitled Texas Attorney General Opinion

,_ TB[E ATTOECNEY GENERAL OF TEXAS AUSTIN. TEXAS 78711 CRAWFORD CL MARTIN ATroxzNEY a- February 28, 1967 Honorable John Connally Opinion No. M- 31 Governor of the State of Texas Office, Capitol Building Re: Construction of House Austin, Texas Bill 87, Acts of.the 60th Legislature, Reg- Dear Governor Connally: ular Session, 1967. Your request on the above'subject asks the following questions concernln the expendituresof monies under the pro- visions of Section & of House Bill 87, Acts of the 60th Legls- lature, Regular Session, 1967: "(1) What is the latest date on which money appropriated therein for the Texas exhibit at HemisFalr 1968 can be committed? "(2) Can such money appropriated be used for operating expenses of the Institute of Texan Cultures for the 1968-69 biennium?" 'House Bill 87 passed the House of Representatives on January 24, 1967, by the following votes: - 121; nays - 23; passed the Senate on February 13, 1967, by'tte"following votes: yeas . - 7; and one paired and was approved by the Governor ~n2~;b~~~~y 20, 1967. Since House Bill a7 was passed by the Legislature by a record vote of two-thirds of all the members elected to each House the effective date of House Bill 87, Acts of the 60th Legls- lature is February 20, 1967. Section 4 of House Bill a7 reads as follows~ "Sec.44. In addition to the moneys ap- propriated in Section 6 of Senate Bill No. 166, Chapter 443, Acts of the 59th Legislature, Reg- ular Session, 1965, $5,500,000 Is hereby ap- propriated from the General Revenue Fund to the Texas Tourist Development Agency. The additional moneys appropriated in this Act and any unexpended - 134 - Honorable John Connally, page 2 (M-31) balance in the appropriation of Chapter 443, Acts of the 59th Legislature, Regular Session, 1965, shall be used In accordance with the provisions of Chapter 443, Acts of the 59th Legislature, Regular Session, 1965." It is noted that while appropriations made by the provisions of Sections 1, 2 and 3 of House Bill 87 were made for the fiscal year ending August 1, 1967, monies appropriated in Section 4 were not made for any particular period of time. Therefore, the appropriation is made for the entire period of time authorized by the Constitution of Texas. Section 6 of Article VIII of the Constitution of Texas provides that no appropriation of State funds may be made for a term of more than two years. Therefore, the last date on which monies appropriated In Section 4 of House Bill 87, Acts of the 60th Legislature can be legally encumbered Is February 19, 1969, the end of a two year period~from the ef- fective date of House Bill 87. It was stated in Attorney General's Opinion M-13 (1967): "Section 6 of Article VIII of the Consti- tution of Texas provides that no appropriation of State funds may be made for a term of more than two years. Therefore, generally speaking, personal services must be paid out of approprla- tions made for the year during which the personal services are rendered. Attorney General's Opinions O-2815 (1940) and V-1397(1952). It is clearly settled, however, that an appropriation for one year in the case of capital expenditures mav legally be encumbered by contract even though the project for which it is spent will not be completed and paid for until succeedin Attorney General's V-1139 (1950), WW-40 (1957), and Monies appropriated in Section 4 of House Bill 87, Acts of the 60th Legislature are required to be used in accord- ante with the provisions of-Chapter 443,,Acts of the 59th Legis- lature, Regular Session, 1965. Chapter 443, Acts of the 59th Legislature, 1965, Is an Act providing for a permanent structure at HemlsFalr, 1968, and the Institute of Texan Cultures is the - 135 - Honorable John Connally, page 3 (M-31) official designation of the property owned b the State of 43, Acts bf ‘the Texas pursuant to the provisions of Chapter’%’ 59th Legislature, Regular Session, 1967, located.in Bejrjr County, Texas, on the’ground known as ‘HemisFair, 1968. Sec- tion 6 of Chapter 4438 Acts of the 59th Legislature, Regular Session, 1965, reads as follows: ‘To carry out the purposes of the Act, the following appropriation Is hereby made: ‘From the General Revenue Fund to the Texas Tourist Development Agency, for a per- manent building of approximately 115,000 square feet; for grading, clearing, paving, retaining walls, parking, underground facilities, land- scaplng, lighting, special effects, and other necessary expenses lnciudlng planning for the exhibits: $4,%000. (Emphasis added ) In answer to your second question, you are advised that the monies appropriated in Section 4 of House Bill 87, Acts of the 60th Legislature may be used for operating expenses of the property owned by the State of Texas known as the Institute of Texan Cultures for the two year period ending February 19, 1969. SUMMARY Monies expended pursuant to Section 4 of House Bill 87 cannot be legally encumbered after February 19, 1969.’ Article VIII, Section 6, Texas Constitution.’ Monies appropriated by the provisions of Section 4, House Bill 87, Acts of the 60th Legislature, Regular Session, 1967, may be expended for a permanent building and grounds known as the Institute of Texan Cultures including all operating expenses connected therewith. Vedtruly yours, Prepared by John Reeves Assistant Attorney General - 136 - Honorable John Connally, page 4 (M-3i) APPROVED: OPINION COMMITTEE Hawttiorne'Phillips-,Chairuian W. V. Geppert, Co-Chairman Alan Minter P&t Bailey Malcolm Quick John Banks STAFF LEGAL ASSISTANT: A. J. Carubbi, Jr. - 137 -