THEAFJTORNEY GENERAL
OF TEXAS
Honorable Firmest 0. Thompcton, CZmIrman
RaIlroud commlsaIon of Texas
Austin, Texas,
Re: Under the provisions
of the appropriation
for the Oas Utilities
Elvislen of the Rail-
road Commlaslon ,as
ooataIned in the Ap-
propriatlon Act, 55th
Leg. R.S. 1957, can
the CozaIssIonemploy
a firm of Publio Utility
Aeaonntamtsfor evaluation
Dear Hr. Thoapuon: servioef4.
You huve~requestedan opinion on the tollowIng
questions:
"Questionho. 1: Can the C4laissIon
utlfize the savings In salaried Items in
the employment of a qualified public utlll-
ty evaluation servioe?
“Qeatloa Ro. 2: Can the Colriesion
likevise utilize the 6um appropriated un-
der Item 48 'For Other Expense' and which
reads 'and othm neceesary expenses to be
incurred in the admInIntratIonandenforce-
ment, eta.'?"
You state In your letter that the Railroad Com-
mission by reason of Inadequate appropriationand lnade-
quate salary authorizationhas not been able to maintain
a staff of auditors and engineers to properly evaluate
the teetImony presen,tedin a resent hearing on an appli-
cation of the Loan Star Qas Compeny for authorizationto
Inurease the cost of gas In it.8lntra-city operations,
and that It vi11 be neoeasary to erplo~ a capable ezperl-
enced firm of public utility aacountants to carry out
the Ccmzzlssitin~a dutyin properly evaluating the evi-
dence and exhibits already Introduced.
Honorable Ernest 0. Thompson, page 2 (~~-578)
Article 6065, Vernon's Civil Statutes provides
in part as follows:
"The Commission may employ and appoint,
from time to time, such experts, assistants,
accountants, engineers, clerks and other
persons as it deems necessary%to enable it
at all times to inspeat :and audit all records
or receipts, disbursements, vouchers, prices,
payrolls,.time,cards, books and official re-
cords, to inspect all property and records of
the ~utilities.sub;ject
to the provisions here-
of, and~to perform such other services as may
be directed by.the Commission or under its
authority." ..
Pursuant to the above quoted provisions, the
Railroad Commission has the authority to enter into con-
tracts to acquire the services of experts in a particular
case.
.'
The Legislature by line Item has appropriated moneys
for the payment of various salaries of employeesin the:
Gas Utilities Division. Following these line Items for
the payment ,of ,salarlesand,wages, Item 48 appropriates
moneys for other expenses as follows:
"SherIffs'~and witness Pees,,~postage,
books,.bond ,premiums,,
stationery, telephone
and telegraph, equipment, travel,,the main-
tenance, operation and ,replacementof one
passenger vehicle, and other necessary ex-
penses to be incurred in the administration
and enforcementof;and as contemplated by
the ,provisionsof Chapter 16 of the General
Laws of Texas,.lp25, as'smended and the pro-
792),
visions of Chapter.2 (,H.B..No.~ Acts of
the Forty-sixth Legislature . . .
"It is expressly,provlded that any saving
in the..salari-ed,items
for the:Gas Uttllties
Division may be'expended :for n~ece'ssary
Other
Expense items shown in'iltemNo. 48;.durIng
each of the fiscalyears ,of the biennium~be-
ginning September 1, 1957.,!'(Emphasis ours.)
,' .'
:" ,'
I
..
,'
Honorable Ernest 0. Thompson, page 3 (~~-578)
Section 8 of Article VI of House Bill 1 3, Acts of
the 55th Legislature (Qeneral AppropriationAct provides:
"Sec. 8. LimitationsOIIuse of Other
Expense funds for paying salaries and,
wages. None of the funds appropriatedin
Article I, II and III of this act in Items
designated for travel expense, %her opera-
ting expense, for capital outlay or equlp-
ment, or for maintenance,miscellaneousand
contingent expenses, may be used for paying
any salaries and wages ltnlessthe language
of those items explicitlyauthorizes such
use.
"In those instances where the language
of such items does explicitlyauthorize the
use of such funds for paying salaries and
wages, such employees shall not be paid a
larger amount than that provided in the reg-
ular appropriatedsalary Items for similar
positions in such agenay of the State. In
the event there are no similar positions
within such agency, then such employees shall
not be paid a larger amount than that provided
for similar vork or positions elsewhere In
the State Government. In the event common
laborers, skilled laborers, and mechanics
cannot be obtained at the salary rates lndlca-
ted in this paragraph, then the head of such
agency of the State may pay for temporary
employment only at rates not exceeding the
prevailing wage aaale paid in the locality
where temporary serviae Is to be rendered."
Since Item 48 Is "For Other Expenses" the prohi-
bition contained In Section 8 of Article VI above quoted
applies to the expenditureof Item 48, together with the'
moneys available for expenditurefor other expenses whhich
is saved from salary Items for the Qas Utilities Division.
merefore, the question presented by you is whether
the employment of a firm of public utility accountants as
experts in their field to make the evaluationproposed In
your request constitutesthe payment of salaries or wages
Honorable Ernest 0. Thompson, page :4 (~~-578)' '
or constitutes a ,contingen~texpense,necessaryto the operation
of the Railroad~Commisslon in ,this,
particular ease.
Since the proposed contract is not for the performance
of duties generally for the Commission, but is entered into
'Inorher to aapfire '2ne'aerv~cal3ti x?xp@t P-aXu&t%onriccaurft-
ants and/or engineers to carry out a specific valuation in
a particular case, It Is our opinion that &oh: contract does
not constitute the payment of any salary or,wage. On the
contrary, such expenditure is a neoessarg expense to the
Commission under the facts submitted and, therefore, payable
out of Item 48 and any sum transferred to Item 48 which is
saved from salaried items. Your questions are, therefore,
answered in the affirmative.
SUMMARY
Item 48 of the appropriation to
the Railroad Commission may be
expended for the purpose of con-
traating with a firm of experts
to make necessary evaluations en-
abling the Railroad Comnilssionto
carry out its duty in evaluating
the testimony ;?dduc,ed
at a hearing
before the RaIlroad Commission.
Yours very truly,
WILL WILSON
Attorney General of Texas
‘&iii?kLefd
Assistant
JR:rm:mfh
APPROVED:
OPINION COMMITTEE
Geo. P. Elackburn, 'Chairman
Jot Hodges/Jr.
Grundy Williams
Grady H. Chandler
Wallace Finfrock
REVIEWED FOR THE ATTORNEY GENERAL
BY: W. V. GEPPERT