BonorablcEiarryKnox, ahairman
State Doard of Control
Austin, Texae
0plnson no. O-3885
Dear tXrr Rs: Oonstruatloaaf Subseatlon(11,
Soatlon 2, Senate Bill Ho. 423,
47th Lsglslaturo,the depert-
mentel~epproprlatlon bill, la
relation.tooerteln sthtutss.
v:eare pleaeedto 0041~ with your letter of .Aueust
25, 194 *iah m quoter
wStatement: Bearingin n&ad Artlole 603 aad
&I ertlalcsof the Statutewith refermtieto publla
printing,e8 well em the ertlel6ain'chapter3, Pur-
abasing 'Dlilalon,
ploreespeolallyArticles634 to
664 lnolusira and any and all other pertinentprovl-
alon of the 4,tetutes.
qwstloa 1. .(a)Does subsection*a* oi Sec-
tion 2, of the Gantrral
Pzorislonsai the Departmental
Lpproprlatlon Bill, peaeed by the 47th Le&letlire
o&llat v;ith.the above referredt6 Statutes,and it
so Aow said 'Seotlon*a* supereede the above artloles,
aab 1s the BoarAoi:Control bound to be governed there-
by, or are the above referred to %&Ites still the
eovernlngauthorityln suah matters?
m(b) Doe6 6ubssotlon *d! af
14?ectlon
2, oi said
CaneralPrwlsiens of the DepartmentelAppropriation
BIU. rforeaald~oonfllctwith the aboSe referredto
statutes,and 1f so, does said oubaeation'd' supersede
the above artlales,end 1s the Board of Controlboo&
.-to be governedthereby,or are the rbwe referred to
Statutesstill the governing eutharltyin suah matters?
"c&lestlon2. Said subfiebotlona
(a* and *d@ adore-
said, being prorlaiow of the DepsrtmentelApgroprle-
tlon Bill end not ln elther.theElesmos~nsry,Educa-
tional,or JualbleryAppropriationBSU; ii you hold
the eaperrede the above referred to ertloles,do they
am !&to either the Elsuaoaynery,
$duoatl&el or Zudl-
aiory Blll,~althoa& mot o+,alned,thereln?m
Aad with hour rypplementalletter of September5, 1943, whlah
quot.1
Hon. Harry Knox, Chairman,Page 2
RFurtharsupplementing my letterto you under
date or Au@st 25, 19W, in whloh a ruling was request-
ed with referenceto the so-oalledlanaumbraaae* prwl-
aions of Seation 2 of the GeneralProvlaionsOS the
DepartmentalAppropriationBill, passed by the 47th
Lqlsleture, tho Ward ot Controldesiresto know:
question 1. Do the provisionsin Section 2 aon-
illat wltb Artlals
660 of the RerlsrdCivil Statutes
aoverlw Wmergenoy PurahaesaV
*Question2. Under Subdivision*d'.prwldlagt
fThe &uptroller shall * * * have the power, aad it
shall ba his duty,.fromtima to time, to adopt, pub-
llsh and anfaroersssonablerules and regulationsnot
inoonsistentherewith,for the purposeof carryingout
the provisionsof this Aat’ * * * aan the Comptroller
exempt any purchasefrom the provisfonsof Reotion
*C,* and more espcalallgthat provisionthat requlree
a purchaseordermgltlnethe prl8e of the artlali pro-
posed to ba purohased9*
Articles603, 634, 660 end 664, Revised Civil Statutes
ot Texas, read in suah order a8 tollaner
"Article
_ ._ 603. . The $ard aim11 ad&dater the
laws relatlJ&!$
to tne oerrous ilepartments,
boards,
institutionsand publlo officeraof the government
herein nsmsd, end peiorm the eddltlonalduties and
exercisethe addltlonaltunotlonrprovidedfor la
this title, end ney combineunderit the followlag
subdirlsfonsof lta workr
Public Prlatlog.
23: Dlvlslon
DiT1slonOi
of PurcheSlag
rnwi0n 0f Auditing.
4. DivisionOS Design, Conetructlonend Main-
tenance.
Ditislonof Eetlmatessad Appropriations.
2: Mvlslon of EleemoaynaryIastltutlont3
7. And such other divisionaor ita work ia it
may find aeoessaryIn the admlnlstratloaof lts duties.*
'R~tlale 634. The Board cd Controlshall purohaw
all the suppliesuaed by each Departmentot the State
Government,includingthe StatePrison Sgat@m, and eaah
eleemoaynaryln&itUtlOn,'3ormal8ohoo1,Agrloultural
an6 MechanicalCollege,U&vsrsity oi Texas, a ndlaah
and all o$har State Sahools or Departmentsbf tk State
Governmenther&ofore or heraefterareated. Such sup-
pllos to includeSurnltureand rlxturea,tsohnlaalla-
atzuments and books, and al1 other thingsrsqulred br
the d.ltfe*nt. dspwtmimt6 oz Institutions, except etrlot-
ly psrlshablagoods.*
Hon. Berry Knox, Chalrnmn,Pa&a 3
*Artlola660. In ease of emmrgencyand where
articlesare neasasaryend neededby any lnstltutlon,
and It 1s Impractioableto Includethem In the annual
contract,the su erIntendentshell make a requlsitlon
for asne to tha ii
oerd of Control and the Board may
fmthwith .purohaseeuoh ertiolein the open market.*
“titiole664. The Eoard shell frame and transmit
to eeoh institutiona systemof rules end regulations
for the purche~seof such 8uppUw.1es have been deslg-
nated by then as perlahableand 88 speclslsupplleafor
eduaationallnntltutlons,and to whloh, oonformityby
ell institutionsis hereby requir?d.n
Subsection(1) of Section2 of Senate Bill No. 423, 47th
&@lature, the dcpzrtmentelspproprlationbill, reads as follows:
“(8) The Comptrollershell approveIn advanceof
paymentthe amount of all expendituresto be paid from
funds for which appropriations‘havebeen made and shall
enoumbfaand/or allot all epproprlatlons against
x&loh purchaserequlsltlonsor orders are Issue&~
and the Can troller shall heve the authorityto en-
cumber andPor allot muoh other approprletlonsas he
deem essentielto a proper and uniformsystem of
rcoord-keepingon 0n enoumbraaoeor allotmeatbasis.
*(b) The CoUptrOllershall heYe the authority
and he la hereby directedto require all departments,
oomn&~aion~, boerde, divisions, imtittutiom, agencies,
and other units.of the State Governmentfor whioh ap-
propriationsere made In this Act to furnishsuch in-
formationas he deems neassaaryto mointalnapproprla~-
tloaa on an enoumbranaeand/or allotmentbaala.
I((a)Mter the purahf+erequlsltlonha6 baen ap-
proved by the Board of Control,but before6 purahaee
order for the ertlcle,or erticlesrequisitioned has
been made, it shall be the duty of the Boerd of Control
to furnishthe Comptrollerfor his approvalthe orlgl-
nel and a aopy of eel& purchaseorder,which shell show
the depertment,oommIsslon,board, division,Institution,
.egtiauyor other unit of State governmentmeking the
requisition,the reqnisitionnumber, the purchaseorder
number,,theappropriationand number oat of whioh the
purchaseIs to be paid, e desorlptlonof the article,
the cost of the artlale,the person or firm fran whan
the artiolehas been QUrchsSeC,end ~uoh other lnforma-
tlon es the Comptrbllermey require. when the Oomptrol-
ler he8 approvedthe amount of the purchaw order he
shell return the orlgIna1to the Board of dontrol for
. the making of the or&r and shall retain the aopy of
aeld purchaseorder for his reoWd8.
BOIL ferry lmox, Chalrmn, Pa@ 4
m(d) The Comptrollershall have the authorityto
presorlbesuoh forms as he MJ deem neoessaryto carry
this A& into ettcot and he shall furtherhave the pow-
er and It shall be his duty, from tine to time, to adopt,
publishand enioroereasonablerules end regulationsnot
InoonaIstentherewIthfor-thepurposeof oarrylngout the
provisIonaoi this Aot.
“(8) If any department,oonualsaloa, board,dlvl-
slon, lnatltutlon,agenog, or other unit of the State
Oovernmentshall fail or refuse to fun&h the Comp-
trollerany or ell lnrormatlonrequlrbd under the terms
of this Aot, or whIoh the Comptrollerrequiresunder
the terma of this Act, the Comptrollershall not write
or issue any warrantwhatsoeveron any of tha appropria-
tions made ior the benefitor such Q efaultlngdepartment,
ooxnIoslon,board,dlvlslon,agenoy or other unit of
Etata governmentuntil the requiredInforlntlonhas been
furnished.
"(f) ThIa Sectionshall be erreatlverrom and
after September1, 1941, and the Camptrollershall oause
same to beoome operativeaa 80011as practicablethere-
after, and not leter than January1, 19&2.R .
Artiolea603, 634, 660 and 664,.andothe, ielatedstat-
utes, confer oertaindutleaand powers um the Board or ~Control .
regerdingthe purahaoingof supplle6for vsrloua state dspart-
ments and institutions.
Subsection(1) or Seotlon- 2 of Senate Bill 80. 423 ooa-
tains oertain new requirementslnoldentto the expendituresof
the suma appropriatedIn Seoflon1 OS the dot. The expenditure8
far whIoh epproprletlom are made relate to the purohesoo2 mp-
pllee for varlo~ state departmenta. The two-foldpurpoee of
the requirementaln Subaeotion (11.18 to preventthe overdraring
af Items ot appropriationand to providea better bookkeeping
agstem for the state. The requirementsare new. They pioneer
In the Sleld of strioterand more aoouratebookkeeping for the
atete. They appertainnot to the statutorypowers oi the Boerd.
OS Control,but to the Comptrollar9amethod of handlingthe pay-
ment of the purahasesmade by the Board of Control.
These provisionsdo not repeal,or oonstltutean attempt
to re;teal,axI8tlngstatutes. Their vItelItydoes not dependup-
on lny change.lnthe statutorylaw of the etete. !Phe legislature
has not deolaradthat the Board of Controlshall no longerpur-
okase supplies.or othsrwlselnveded statutorypower8 of the Board.
ft has r;lerely
stipulatedthat paymentout of the appropriation
made shall be subjectto the desorlbsdadditionalrequirements.
The Board of Control1s still the parchasIngagenoy and in other
reepeoteohergqd with the edmlnlstratlonof the laws re~letlngto
&ate departmahta. The ComptrollerIs not authorizedto approve
purohaseses purohases)he Is merely requiredto abide oertaln
additions1regulationsas to the paymentfor auah purchaeeswhere-
fore he may kee the books.ofthe etate In the manner deoldedup-
on bv. the Lad af mtnwm-
Hon. Harry %~ox, CheIrmf% PaSI 5
With tho wisdom or proprietyof the adbitlonalrequire-
ments, neitherthis depertamnt,nor the Comptroller,nor the Board
af Control oan hsve eny oonoorn. Eaoh must follow the mendate
or the Le&~alatursif the requirementsare althin ths bounds of law.
In tho very nature of the stupendousjob of keeping the
boob of this atate, the Le&ialatureoan only declarepurpoaea,
prescriberequIrementa,define bounds of authority,and thereupon
entrustadmlniatrstlon to the departmentsof state involved. It
has, aa It neoeaasrllymust have done, ohareedthe Comptroller
with the duty of promulgatingthenaoeaaaryrules and regulationa
to errsot the legislntlvepurpoael It wea oompelledto give wlde
latitudeto the Comptrollerto scoept ths dutiesand reapon-
sIbIlItIesImposedand erecutethe leglslatlvemsndateIn the
most reaaIblemsnner.
by the Board of Control,pursuantto Its atat-
F’urohsaes
utory dutiesand powers,rmy be ole8slrIeda8 ot three types.
First, the re&.ar purohaaeof IaolatedItems upon the basis of
oompetltlvebid8 relatingto eeoh lndIvIdualpurchase. Second,
purohesesunder annual oontraotaawarded after oompetltlvebiddIng,
whIah prescribeprioe end qualIt&?,quantitybeing e matter of au&
sequentneeds and requI?ementa. Third, 8mergenoypurohasdspur-
muant to Article660 under whloh the requirementof oompetltlve
blda, end that requirementeione, la relaxed.
Under Subseotion(1) of Sootion 2 of Fenate Bill 423,
it 1s lPandatory upon the OWptroller to maintainall appropriations
made In Seotlon1 of the Aot on an enoumbranoea&or allotmant
beBiB. l?eoesaarIly in the enaotmentof Subseotlon(1) the LegIa-
l.:t&.at;d80 in contemplationof the three m8thoda or types of
Henoe the alternativeRenounbranoe and/or allotment
bada.= be first type of puroheaeIs adaptableto.mslntenanoe
upon a atrlot enoumbranoebesla. .Thaaeoond end third types of
puupaae are more adaptableto mslntenenoeupon an allotment
Beoause af the multltudInouadetailsand variationaln-
he& in runningthe buaIne8sof the state, and in purohaaing
aupplleafor departmentsof atete, num8rouaand differentrules
and regulationsmust be adopted,publish~sd and snforoed-bythe
Camptrollerto eohlevethe type oi bookkeepingrequiredby the
Legislature.Henoe the broad rule-makingpower vested In the
Camptroller.
ComplIanoeupon the part of ths Board of Controlwith
the’Mqul&m8nta of Subseotlon(11, and ulth the rules and regu-
lations promulgatedby the Comptrollerpurlruant thereto,will
not olroumaadba or restriotthe atetutorypowers 6f the Board
of Controlor obatruotths Board of ControlIn the executionof
its power8 and duties of purchaseIn the manner providedfor and
authorizedby statute.
Subaeotlon(1) should not be etrlotlyor unreasonably
oonatrued. fn It8 very nature It requiresliberality of oonstiuo-
tlon‘ Ths reoognltlonand repuIremen$that appropriations ba
maIntaInedon an allotmentbasis presupposesthe neoesaltyof
eatimstesof expendItur8sunder the ssaond end thirdmethod8bf
Hon. Hsrry Knox, Choirman, PO&B 6
purohaae and the reservingby the Canptrollerof a oertelnpar-
~~~f~depproprIation r0r the payment of oblI(;ationa
yet to
Were this not true, and were estimatesend reser-
vetloneof ~pp~opriatlonsnot oontempletrdby the Le~elature,
the requirementwould he% bean dnly that approprietlons be maln-
talned on.011 enoumbranoebsaia. Where an estlmte, end e oorres-
pondIngallotmentdsV8lOpB t0 be eithertoo low or too hi&t, ad-
@stAent can be made end It IS OOnt~plet86 under Subseotion(1)
that adjustments will her4 to be made. %iB the Leglalatura
deemednor8 entiqraotory, rraa the stendpolntor the books 0s the
tStBt8, than the oonditionsheretoforeexistingunder whloh the
Btetu~a of en appropriotlonaooountwas al3 the while unoorteln
end lnoapableof Escertainment.
Statutesoaunot, of oourse,be SUOO8SSfU~y amended or
i repealedIn an appropriationbill. But the pleolngof restrio-
t,ionaupon the expenditureof money8 appropriatedin the bill
fnheres In the leglslotIv8controlover the State Treasury. Snb-
:"sectlon(1) of Se&ion 2 Of Senate Bill 423 does not oonstltute
y'an attemptto eooompllahthe former but the exerciseof the letter.
It Is thereforethe oonsideredoonolusionof this de-
pertmentthet the provlsion a oontelnedIn Subsection(1) or Sec-
tion 2 of SeiEit8aI= 423 do not Oonfilotwlth,BUp8rBed8,emend
or repeal Artlales603, 634, 660 and 664 of the statutesof Tex-
es, or other related statutes.
Your su~pler,entel
letter propoundsthe question,In
additionto the one reletIn&to Artlole660, of whetherthe Cap-
tri&lcrmay exem t any purahasefrom the provlelons0s Section0
Of %%bB8OtiOn (1 P .
It la ~DUTdpInIon that Seotlono waa not'intendedto ap-
fly t0 every ptUVhaB8traMaOtiOn and that the Comptrollerdoes
have the authorityto extanpt purChaB8B therefromif in the natures '~
of 8uah pureheaea,othcmiae authorizedbythe Bt@tUt08 of Tents,
they are incapableOS bolne subjeotedto the strictrequlremente
0s Seotlon0.~ AB mentionedabove,it Is quit8 ObViOUsthat the
Legislatureoould not antIoipat8eny end every contIngenoythat
might arise rrm a bookkeepingetsndpolntend expreselylegislat8
upon each and every pOSBIbl8 purbhesetransactionauthorizedby
.theetetutea. NeO8aserilymuoh must have been left to the dlaora-
tioa,ofthe BdminiBtr8tIV8departmentohergedwith enforoenent.
ThereinlIcs the 8xplenfItIon end necessityfor the broad rule-making
power and dIeor8tionexpressly vested in the Comptroller*adepert-
ment. The Co)nptro~eris thereforeauthorizedto exempt purchesea
from the letter 0s Seotlon 0 when Buoh Is Inherentlynecessary,ati
to handle suoh p~OhBB88 in the BIBMer neOeI38Bry and t8eSibl8to
maintain appropriationson an 8noumbrancoOn&/Or allotmentba8i8
es otherwiesrsqtired by the Various prOViSiOn of SUbsectIOn(1).
The BeOOlld C$l8BtiOn in your letter Of August 25th inquires
If oertainprovIsiqn8of Subaeotion(1), oontalnedonly In Senate
Bill i& the depertmentelspproprlatlon bill, apply eitherto the
.-F
. -
Hon. Harry Kuox, ChoIrnon,Pegs 7
Eleemoagnary,the Educetlonalor the Judltilery
appropriationbills,
althoughnot oonteinedin then. They do not.
Yours very truly
ATTOEIFY CEN%nkL OF TEXAS
By B/B 201118 C. %eak&ey
APZOVED OFI,WOh;CO:XITTEX
BY B-X!,Chairman
ZCS:ejljrb