THE ORNEY GENEIRAL
OF mXAS3
April,23, ~1959
Honorable William S. Fly, Chairman
Senate Finance Committee
Honorable W. S. Heatly, Chairman ,.
,.
House Appropriations Committee
Austin, Texas
Opinion NO. w-604
Re:, Validity of provisions
fin the general appro-
Eations bill, 56th
relating to pay-'
ment'of rentals and
services by special
Dear Messrs. Heatly and Fly: fund agencies.
You have requested our opinion on the validity of
proposed provisions to be incorporated in the general
appropriations bill 'for the next biennium. An example
of these provisions is as follows:
"For th,epayment of office rent and .
shop rent for examinations; rental amounts
for State-owned space are to be computed
at the rate of 3C$ per square foot per
'month, and the Comptroller shall transfer ‘,
from this appropriation item the appr~opri-
ate rental sumto the State Building Fund
If the occupied space,isin buildings con-
structed from such fund, or to the General
Revenue Fund if the occupied space Is in
buildings otherwise acquired. . . . ; $
$ .”
In Attorney General's Opinion W-573 (1959), it
was held:
"The Legislature cannot by rider in
the appropriation bill amend a general
law. Attorney General's Opinion ,V-1304
(1951). Therefore, th% ,Degislaturecan-
not transfer special funds to the General
Hon. William S. Fly & Hon. W. S. Heatly, page 2 (W-604')
Revenue Fund by an appropriation bill wlth-
out first amending the general law creating
the special fund. The Legislature does
have the power, however, to transfer statu-
tory special funds to the General Revenue
Fund by a general law without violating the
provision of Section 7 of Article VIII of
the Constitution {of Texas, relating to the
diversion of special funds. Gulf Iosurance
.
Company v. James, 143 Tex. 42q, 185 S.W.2d
( 945) Attorney General's Opinion
E4i (19i9).
"Item 16 to the appropriations to the
Attorney General appropriates money for the
purposes authorized by the general law and
it keeps such special funds In a separate
account to be expended only for the purposes
authorized by the Legislature by general law.
Since the appropriation is neither contrary
to any constitutional provision nor to the
general law, it is our opinion that such itey
of the appropriation bill Is,constitutional.
Since the occupancy of such space is necessary to
the carrying out of.the particular duties of.an'agency of
the State, the Legislature is authorized to appropriate
moneys for the payment of rent. The question presented
by you concerns whether this rent can be charged-by the
Legislature for the occupancy of State-owned space when
the Legislature determines that it is to the best Interest
of the State Building Program to make such charge. There
Is no question'concerning the reasonableness of the rate
of 309!per square foot for State-owned space and such occu-
pancy is for a governmental purpose.
The rent authorized to be paid by the above quoted
provisions of the appropriations bill is to be deposited
in the State Building Fund which was created by Section
51-b of Article III:of the Constitubion o,f:Texas when the
space to be occupied is in buildings constructed from such
fund and is to be deposited in the General Revenue Fund if
the occupied space is in buildings otherwise acquired.
This deposit is to be made by requiring the Comptroller to
transfer from the appropriation item for rent to the State
Building Fund or the General Revenue Fund as above indicated.
Therefore the transfer is to be made to the proper fund and
the question of transfers of special,funds is.thereby removed.
Hon. William S. Fly + Hon. W. S. Reatly, page 3 (~~-604)
You are therefore advised that the above quoted
language is valid since it carries out the purpose of
the general law creating the special funds and Is in
conformity with the principles announced*fn.~Oplnion
w-573. .'
.,.
Your second question concernsthe following pro-
visions to be included in the general appropriations act:
"Its committees having determined"
that the reasonable cost of the services
rendered by administrative and service l
departments or agencies of the State to
the Board of Barber Examiners in carrying
out its statutory duties and responsibili-
ties to be the annual sums herein indicated,
the Legislature hereby adopts the foregoing
fact-finding; and for the purpose of paying
for such services there Is hereby appropri-
ated and the Comptroller shall transfer from
the Barber Examiners Fund (No. 40) to~the
General Revenue Fund at the end of ,eachfis-
calyearthesumof. . . . $ $ ."'
In Attorney General's Opinion W-573, this office
stated: _~
"In response to the last paragraph of
"your request relative to suggestions this
office might make, you are advised that the
Legislature may carry out its intended pur-
pose in one of two alternative methods.
"First, the Legislature can amend the
general law creating each special fund so
as to authorize a transfer of designated
amounts to the generalyfund, as determined
by the Legislature.
"Second, the Leglslature'may provide
in the General Appropriation Bill~a method
for the reimbursement to the General Reve-
nue Fund by establishing the machinery ,for
a factual determination of the value cf the
services rendered by administrative end
servic@departments, or the actual..jc,o'st
of
the services rendered. This may be aocom-
plished by designating the Legislat,tiv@
. ;;
:
Hon. WI&m S. Fly & Hon. W. S. Heatly, ,page 4 (~~-6~04)
Budget Board or the Governor or some other
agency designated by the Legislature, and,
after a factual determination, the authori-
ty to execute the proper certification of
the value of the senvices rendered. The
Comptroller should then be given authority
to transfer from the Special Fund to the
General Revenue Fund upon such a certificate." .,,
In your request you state that the ab&e,quoted
provisionsto be Included in the GeneralsAppropriations :'.
Act have been drafted in light of Attorney General's
Opinion WW-573. The Legislature by this language has
provided for the reimbursement to the General Revenue
Fund for services rendered by administrative and service
departments financed from the General Revenue'Fund, and
has made this reimbursement based upon a factual deter-
mination of the value of the services rendered by such
departments prior to .the reimbursement being made., There-
fore, you are adlvsed that these provisions comply with
the principles announced in Attorney General's Opinion
WW-573 and are valid.
SUMMARY
-
The Legislature is authorized
to make appropriations for the
payment of rent of space in
State-owned buildings and have,
such appropriations deposited
into the proper fund.
The Legislature may provide in
the General Appropriation Bill
forkthe reimbursement to the
General Revenus Fund for serv-
ices rendered by the administra-
tive and service departments
financed from the General Reve-
nue Fund, provided that a method
is prescribed therein for making
a factual determination of the
value of the services rendered
by administrative and service "
departments, or the actual cost'
of the services rendered by the
administratiye apd service depart-
Hon. Will lam S. Fly & Hon. W. S. Neatly, page 5 (~~-604)
ments financed from the General
Revenue Fund. Attorney General's
Opinion WW-573.
Yours very truly, .
WILL WILSON
Attorney General of Texas
Assistant
JR:rm
APPROVED:
OPINION COMMITTEE
Gee. P. Blackburn, Chairman
Riley Eugene Fletcher
Jack Goodman
Robert T. Lewis
REVIEWED FOR THE ATTORNEY GENERAL
BY: W. V. Geppert