Untitled Texas Attorney General Opinion

OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN Honorable Baiter C. %oUwsrd, Chalmasn : Board of Infwmme Cosszfsslcmers Austlu, Texas C i 8 parts of ~Qur g of the probbate before us. Honorable Kelter C. Roodward,?yl;e2 work and tie paymnt of the sFilRriesof any additional examiners,etenosraphers,clerks and such help ae is neoesaary in the admlnls- tration of the examiuine;division (provided any lddltlonal 6nqQqyesspsrfoming similar work to the posit&m designatedhereinabove shell not receive d greater som of ooqmma- tion then thet her&x, provided),.ti Sor defraying all other exgmmes necessary for the administrationof the pr~vieio~ of Chapter 152 of the Qeneral Lowe of the Rogu- lar Session of the Forty-eeooudLegislature snd Chapter 264 of the General Lam of the Regular Sesalon of the Forty-fourthLegia- lature, and auy aud all amendmentsthereto, and ae amended by Senate Bill 397 Acta Regular Seeelon of the 46th Legis~ature,~~lQSQ, there is hereby appropriatedall fees end aessamnentecollecteduuder authorityof sald~~ExamlningLaw, to&her dth sny balsnces at the~~sndof a precedingfisosl par few eaoh of the fiscal yeara endiq Au& 51 1940,,aud Auguet 31 1941. The head of.& asp=tmsnt ahall e&e applicationto the. Board of Control aud recslve its approval in writing before exployeee,other than those lteinixedin the appropriationbill~ere ora- piaged. ssia applicationshall set out the reeaons, and neosssity for the employmsatlof' the addltioualexployeemr Pour first questlcm 18 restated by 08 to read% 'Did the Governor*s veto by uhieh he eliminated frox the appropriationbill five aenlor exadmrm and three aesietantoxmlnera, have the effect of dsstroyins the right of the Life Iusuraace Commisnionerto make apDlI- cation to the Beea of Costrol cud reeelpe its approval iu rritiag to employ addltl0naZ am- ployeos, imluding mamlners aa ugvsalflally authoritedby the rider in the appFopria%bn bill vhioh vastnot veto&t‘! seotion 6 of Article a of the Constitutiouprovides that "no money ahell be dram from the 'i'reamq s in&pug euauce of specifla apprapriatlonemade by lam, 736 Honorable Tklter G. Foo&mrd, Peg0 4 affaixs of such cos~auy, and shall have ant'; power to suwon and examine undar 08th the officers, egents and employees of suoh con- psny snd my other person within the state wlat.ive to the afrsilw of ml& cmlcpsnyr He may revoke or wdlfy any oertlfioateof authority issued by him or by any predeoos- 80x in office *en any condltlon or require- ment prescrlb~d by LOW for gxsntlng it rm longer exists. He shall give such aompany at least ten &apt rrltten notloe of his inte2tlon to revoke or miodlfy such oertitl- cate of authority, stating 0pOtlfically th0 xeasons for t&3 action he pxoposes to take.* krtlcles 46901 and 46QOb, as smmded by Senate Yill Ilo.397 of the 46th k@slatWe, effeotlve Zay 13, 1939, read as follorsr "hrtr 469Oa. 'Ilrsexpenses of ellex- smlnat10n6 of dosmstlo sll6urwue c-de8 made on behalf of the State ~ofY!uxa6by the Ohalnssnof theBoarad Inauranoe Comb- sioners or urxl*r his authm~~6h.a& bee* bythOc~~lOnOeupatnOd is8 the chati of th04bra of .Insu~e cQwiasloneTs shall ce@Afy to be Just and reasonable. *Assessmentsfor the uxpenaua of su& @owstfo exsmlnatlon,whiuh 6ha.U be maffl- dent t0.meet sll the expenses ma ais** lmuts neaesssry to cosqly rith the:proti- slona of the law of Texas relating to thr, exmimtion or insurwe c~anlos and to coaply rlth the provisions of this aot,~ shsllbe madebytha Chalrmm of the Board of Insurancekmis8ionere upOn the 00rpom- tions or assoalatlonsto be exmaxinedtrkkrg into conslaerrtion annual prsrainar re0&3ts, and/or adndtted ans6ts, an6 or lnsywue in force; provided suoh assessmentsshall be m&e and eolleoted only at the tine auoh exsmixmtlonsare uads* *hll sum8 solleatsa by the C2d.mmn of 737 Honorable Felter C. Woodrerd, Page 5 the Board of Insurence Gnmlasloners, or unck~rhis authority,on account OS the cost of exeminetlonsassmmed ns herein dove provided for shell he p8ld into the State Treasury to the oredlt of the InsuranceExemlnetionRmds cad the salarb%~ an6 expenclesof,the aetuery of the Eoard of Insurmme Commlasionere and of the exemlner8 end ~lllstant8, end ell other expenses of su6h emmlnetione, shell be paid upon tie certlfloateof the C~~FBW 0f tb6 Board 0r 1naurume #nmml- sionera by rarrent of the CasptrolEer drawn upon such fkmd in the State l'reeeuryI "Ifatulytlme it Ehalleppear tllet addltlanal pro r a talssessmea&s ere neae8- 86x-yto aove~rill of the ex#enser,end dls- bursementsrequired by lar end ne,aessery to consplydth thin Aat, khe e-e shell be made, mid any lmrplua Qleiing from any uxl Ill1sueb asaeasmellfs,over am3 &lb such exponsen. and d%ab~smW, shall be applied ln reduatlon of 8abreqtumt6 aesanent~ lntbe proportion aeaseaaedso that there 8hel.lti.80 a8seased end 001. leated the funds xmoeaamy to aeet euah expenses 8nd c¶lsburmnontaand no more. 'In c16e of an e-tioa of P eom= p-y not orgenloed'nnde~the lams of Texas, whether sudh exazal&lqn 10 mul.0by the Texas autborltiea alone,,er jointly rlth the lnmumaoe aupervl~~osy~,eutborltleaof another state or etatee, the expexmes.of such exkaitmtionduo twTexes pertlelpetlon therein, shell be borne by l&e cQspenyunaSr exeminatlon~ Pqmemt of *u&i costs ehell be mede by the aampmJ upon presentationof itemized urltten atetement by the chnlrmn+ and &all consist of the exemlners remme~- tion enllexpensee,~endthe other expenses of the Depertntentof Qmurenoe properly alloaable to tha.eremLn&loslr Peyment shall bemadedir&tly to the aheArme+ end all money aolleetedby asaessxuent on~foreign Honorable Wlter C. Xoodward, Page 6 companies for the coat of examination shall be deposited in the State Treaeury by the Qahnan to the credit of the I~urance ~xamlnPtlonPund out of ublch &all be pal, by warrant of the State Comptrollerof @%bllu Accounts on voucher of the Chalrmn of &he. Board of Insurance Coamlsaloners,'theax- amlner*s remunerationend exgensea fi the amounta determlned~bythe method hereinafter provided, when verlfled by thelr affldavlt and epproved by the chalrmau; and sold money Is hereby appropristedfor that purpose, the balance, if any to remeln in the Inmwanoe ExaminationF& in the State Treasury a&- ject to be expended for the purposes ti am other funds placed therein. &amln~r@a co- munerotion az@~expensesahall^ba the a(100 an that which would be paid by the harm state of a oompany uuder examination to persona oonductlngthe examinationof a Texas &mpany admitted to dc business in that state. Ii thors be no reoognlted.ohargefweru~~a*~e, thechalrlllana$allflxtheXVmln expense alloranae of the examhera at auoh reasonable figure PLIhe may da~termlna~~ "Art. 469013. Tbe choir of the Board of Insuranoe hxnmiaalonera8beJ.lnppolnt au&i number of examiners, one of dhos ah&l1 be the chief exami.ner,and 8uoh numbsr of ~as2atanta as he may damn necessary for the pu+poae of making on behalf of the State of Te%aa amd of the Hoardhi Insurance hamdssionera nil au& exeznlnatlo&of insurance coxpenlea at tba ex- pense of au& conpanles or oorporatlons,a8 are required to be made OF provlded'forhy law3 end, dter this af3tshall t&e 4trmt he shall ala* appoint an actuary to'the Baud of Insmpnce Com3alsaionera to advise the Board In conneotlonritb the performance gf its duties and for \i~%anLs+Ma md c&nall in connectionwith 3;l mmh exam3netlonamqulrod by law, Such exmltir~'~and assistants ahall, as directed by the Chalman of the SoaFa of Insursnoe Connai~sionera,perform nil the duties relative to all exm$natlons providad by lrr Bonoreble Falter C. a‘oodward,Pa.cs7 to be nnde by the rjoardof Insursnce bm!!xla- sloners of the State of Texas, and it la the purpose of tM!lie act to provide for the exmal- nation hereunder by the chairman of the Board of Insurance Comiissionersef all corpwetlone, firm or persons engqed in the business of writing insurance of any kM in thla state whether nou aubjeqt to the aupervlalonof the InsuranceDepaAment or not. "All such examiners and assistants uxl such aotuwy shall bold office subject to the ~111 of the Cbalrman of the &ward of Inauranca CommlsslMwws and the number of such etxadmwa end esslstantemny be.lnoreasedor decreaaad from time to time to suit the needs of the examWIn& work. The actuary end nll nuoh examlnera and asalatanta shall be paid oat of the Insurazwe Exemlnetlon Fund, such aalarlea au shall be fixed from time to tlme by the legislature ruvlthelr necessary travelingex~ penaes ah& be ptda out of ancih ruad upon auorn, lten~Lsedacoountathereof,tobe renderedmonthly ax@ approvedby the Chairman of the Board of fnsurwe Com&sslonera be- fore payment. "wbara the Ghrlrmra of the Hoaid shall dem it edvlneble he may csomnhslon the e&ueq of the Roard, the &Lef araalnsr, or eny other exmlner or employee of the Dep+ment or any other persctn,to oondtwt or eeelst in daa ox- anlnatlon of any company not orgganizedunder the lass of Texas and allow them comp6qatlon aa herein pmvlded, exoept thsf tbey may not sianera nor eny exuainer or assistant ahall contlnue~toserve es such if, while hold%ng such poaltlon, he shall d&reotly or lndlrectly accept from any lneurance company any employ- rent or pay or ccmpenaatlon or gratulty~on account of~ang serriee rendered or to be rendered an eny account vbeteoevmk* 740 lIonorebleXnlter C. Koodwerd, Pqe 8 It has Leen said that an lpproprfstlonneed not be nzed8in eny particular form of words. It 1s suffloient lf the Lqjlaletureeuthcrleesthe expenditureby l&w end specifies th8 purpose fur which it la Jlade. See 38 Tax. Jur. 844; 59 C. J. 244 Cherokee County v- odom, (Clv. "pp.) 297 S. :i.1055; 4lckle v. F%ndhy, 44 S. 1A.480. Xelther LB It essentlf& in Taxne thst the appropriation bill rpeclfy the mxlrmae~~~&ahlchmaybedrawnf'rom the State Treasury in dollars am3 cents. ktklns v. St&a Bl@ray Ijepartmnt, (Clv. App.) 201 S. E."226. In the c&se of Fulmore v. We, 140 S. K. 4005,~ AasoalateJustice Dlbrell of the Sup- Court mekea the fOllOW1~ atetement~ ?In construingthe purport of a veto measnge, the anme rules of construction that govern in aonatrulng leglaletlve acts should be applied. The veto power, when exerolsed, is 8 lsg181e;;tiU~ not an executive hmctlon. McCsl1, 86 Tex. 223, 24 S. Vi.2653 &oley on Const. L3.m.165; People V. Sowen, 21 X.Y. 517.9 We express the conviction thd effect of the veto hers exeralsed was to place the %mulnlng Dlvlalon appro- priations In the same stetus ea though the vetoed ltama hsA never been included ln the bill es flnslly petiaadby the Ls~lslature. It 1s noted the rldar contains the follwing lsn- gueger "Tliabend of the depertnmnt shall meke eppllaetlon to the Bosrd of Control mnd reoelve its epprovel in ~mitlng ba- for8 employ*ea other than those ltemlaed in the approprletfonbill m-8 employed. Said applioatlonahsl.1set out the reaaoma, and necessity .fcrthe enrploymentof the edditlonel employeesra It la 6lenrly tha intention of tb* bgialature that the Board of Contrul ahsT1 datermlna fawn the applfertlon /, Honorable Xelter C. Xoodmrd, Page 9 and aucb other Informationas auxybe availableto t?ieDoard, whether the condltlonupon Il$lchthe fuuds ma? be expended acttiallyexist, th.:tis, whether the expenditure of such funds, or my portion tber@' I.8necessary to adequately perforn the functions of the fnmance Department. The valldlty of such a provl.slon.In an appropriation bill was impliedlyrscogn.Ized In the case of Terre11 v. Sparks 135 S. 5. 519, wherein the cowt held sufficlsntly *paclfZc ae an appropriation,mn approprlatlon bill providing a sum of money for the Attorney Oewrd, to be expended by him k7 and with the approval. of the oovemor. See also State 8x rel Borml Schools v. %mnerman 183 Ma. 132 197 H. 8. 823. Cures apparentlycontrarywill be found in 81 A. L. 2, note at p. 1512, but in most of the cases there cltbd the constItutIonal. requirements are dIf- ferent frondthose In Texas. Es do not t&Ink the aam reasonfn~ applicebleto our altuution. In view of the provIsIona of the statutes and au- thoritiescited, you are rsrpeutfullyadvIsed it Is our opinion your queetlon Is properly answered In the negative m&that by complyingwith the term of the rider quoted above you may employ additionalnecessary employeea Includingexaminera and pay them from the epeolal fund created by Artlclea 46908 and 469Ob. 2. .~PrIorto'Pebruary1 1939, at which timeupon re- quest of the State Auditor th!s departmentrendered opinion No. O-61 (conferenoeopinion lie,30351, the fees collected by virtue of Article 3920, R. C. S., had been deposlted by the Doard of Insurance Commimsioners In the InnsursnceExemI- nation Fund and a8ed In comzectlon with the expense of ex- amining compenies and for the eervieea of employee5 incident thereto. The opInIon held the feea should be deposited In the general fund, Senate Bill No. 404 of tha.porty-sixth%egisleture, as reflectedby Its emergency ulauae, uat6lntroduaedfor the purpose of aendIng Article 3920 to meet the objeotlon8 poInted out in opinion Xoo+0-81. As finally paaued and ap- proved by the Governor, the bill emended ArtIols 3920 so that up to Septemberlr 1939, the ~nsurans8 Department was Honorsble Xalter C. koodward, Page 10 authoritsd to use t3e fees for t3e purpose theretoforeused. (See opinion &or O-947, nrftten to you on June 15, 1955). %s quota from your letter: “As relate5 to tha next blennlum, the bill reads a5 follows: "'After Awust 31, 1959. sll fees collectedb It' - this Art1 1 52i be deposit% ytg %ate TressUK"& roariated t th CD I~5ur~~~C~5~~ner5°to be used In the payskentof 8alax488 snd other expense8 arIsIng out of and in eon- me&Ion with the exsdnatlon of Imnmsno5 compsnies ma/or the lloenning of lnsu+ ppc9 o&upsnI55 an3 investIgr~tI0us Of violation5 of the'inawanee laws of this State In ma& xmmwr snd Agents* Llsenae Dlvlslon of the Board of xnsursnas c0i5l5I5sIon5r5.' (I I . . Vht question I now sub3dt to Jou fsc *(a) Do you regard the lsngua&s a- bove quoted lktm Senate Bill So. 404 as sn appropriationof the fees set out In Artisle 5920,~supra, for the purpos6s the-in statad "&I aonnectionrith the forsgoing, anothsr inquiry 15 necessary, as rill ap- pear frorcthe follorlng otatomsntt V?ollowIngthe Agentst Liosnse DIvI- alon, which Is one of the divisions to whicsh,under said Senate EIll 00. 404, ws rers permitted t3 use She ibe8 (the Agents* License Division, Inoludirg the llcenalng of Insursme cozpanIsa.sndthe investigationof violation of ths %naur- snce 1~~5) there appeszs the followfng rider Fn words and figures as folloast *t SubJeat to the limltatlonsset forth in the provIsion appearing at the end of thI5 A& ell agents' license fees collectedby v!rtue of the license laws, shall be deposited in the State Treasury and are hereby wproprlated sndmcry 6e sxpended,durIng the flscml years ending August Sl, 1940, snd August 31, 194l, in amor&ume with the laws or this State for payment of the items listed above.' *In connectiondth the~foregoing stateraent,your attention 15 direoted to Seotlon 7 of Artiole 5068a rsquirlng the collection of an agent(5 license fee of $1&O* *The queatlon submitted lo: *(b) Doea the rider above set out prohlblt this department frO51the useP of the fees or sny part thereof, set out in selaakl Bill. lroi 404, In wid!ltion to the Ag5&5* LloenseSees asprovldad tar In Semtlon 7 of Artisle SO68a afom- aaId? In other medo, does thb rider c0afine.thi5 depitrtm9nt to the use 0r the *gents* Liae~e fees in the ptJlaant of the s5larles other expense5ll5t8d under the Agents, g"dLicense Division of the *yproprlatlenb&&l? Or 15 it to be man- atrued as +rs&t>ing the appr0prlmtlon therdbfj in addlltkm to the fees or,- psrt thiuwof, a& out in Sanak &ll.3?0~ 404 (AdAale SQ26?? c e Q The Colreais~ionconstruestbb,rider a5 pemlttlng the une OS the Agen$s* L%aemse tees lnwmneotlonriththef68~ cellsateduudsr ss$dSexmte Bllll?% 404 (ArticleSseO) and that the rider is not intendedtc rsstrlotuss to the umaf the h(ients*Licensb few mdriothfng else* Honorable Wnlter C. Voodrrod, Page 12 Tienote the 8pecifC3 language of the above quoted parqraph.of Article $920 aa amended by Senate Bill 404. It will be~readily seen there Is a marked differencebetween the provisions of the above pcsragrnphand the specific language qloyed in protidlq the use 0r the funds from the time of thq passage of the act until September 1, 1939, wblob In direct language spproprlatesthe money collectdl aa such feea for a 6pOmO ptu-poae~ Stripped 0r ill 6x- ceae verbiage, the Leglalatw bp the quoted parwaph whlchve are conetrming eeyst “After August Sl, IQSQ, all fees collected... ahall be . . . appro- prlated l l * lnauchmanneranpro- vi&d in the general approprirtlon bill..." Here we hare no appropriationbut eat apperrS mmily a dlre&Son to the Le&.alature itself to later make th4 appropriation3.nthe general appropriationbill. We fail to findwhere auohhaa beendone, end we am of opinion that the situation by the very terms of Senate Bill 404, in the absence of nte&on in the general appropr1atlonbill, revert8 to W. statue oceupled at the tlzueopznion O-01 ras written. At thetime of the p&Wage and executive approval of Senate Bill 404 the genera appropriation blllhad not be&fimllypam& Thelaxquage oiaald Sen&g%llloould very well have expressed the la&4latln intent:at th* tisa of Its passage, but then, la .x10 lmguage An the “geneu+@lap- proprirtion bill inafc&tZve of euchlntent or cajmble eS being 80 construed by us nom. We therefore answer your q-uertlona& (a) ks do not rogsrd the.languagequoted fram Senate EL11 X0. 404 8s au appropriationof the fess.aet out in Article 3920, as amended, for the purposes therein stelad, or for any &her purpose& (b) Viedo not regard the rider as authorlelngthe Ia$urPnoe Department to use the fees mentioned In the payme& of the salaries and other expenses listed under the Agents' Ltoenss Divialon. %a 6ir6of opinion these fee8 ehoulfIbe cbposlted 533the State General Fund4 In vler of our answer to the questions us iwr), we do not think it waler to state we note no pm&W1 flion thet the various item ngntianod in the Agenld Liceme Dlvl- slon nay not be pafA.t"rorn the etatm*e general fund owm thoqh Ronorable Vslter C. Zooduard, Page W the Agents' License fees appropriatedIn the rider to the general asproprlatlonMl1 do not suffice to pay smer There is no langgge in the rider restrictingthe division solely to the we of ths fees there mmtloned. In the third section of your letter you quote Sec- tion 35 of Senate Eill I.35as passed by the 46th Legislature and duly approved by the Qovernora "Sec. 35. All fees paid to the Board of Insumnce Comlssioners by all assocla- tloxzsregulatedby this Aot shall be and the sme are here and now appropriatedfor the balance of the fiscal year ending August 31, 1939, to the use end benefit of the Life Insuranc6 Division of the Board, of Insurwe Gxmis8ionms to be used by the Life Inauranoe Comm~ssloner for the purpose of enforcing a@ carrying 03t the provlslons of this act and other law6 re- lating to the regulation and supervision of suoh assoclatlaas~ protided, however, that thereafter such fees shsll be ox- mde?l under poses aforesaid and are here and Boorapmo- printed for such purposes and all-laws and Darts of laws to the COn~rm are here end 'nowexpressly repealed to ih; extent~of such coIlfllctonly." (Unclerscorlng ours.) You~then propound the follorlng question: Way we# under Section 35 of Senate Bill l35, beginning September let, use these fees for the purposes mentionedt" As stated by you in your letter the general depart- mental appropriationbill raokesno ,specificreferenoe~to the use of the funds in connection with regulating, axCaainingsnd doing t&s clerical work relating to the mutual assesamsnt oom- 746 Honorable Kalter C. Eoodasrd, Page 14 pSJXLeS* Sou continue: “Pet, re reco&dze the apeclflc au- thority mentioned in Section 55,md as the general approprl-tloctill, as relatsa to the Life Division, specificallyauthorises the eqloymfmt of the three mutual asaess- ment supervisorsaud the secretary, we are of opinion thst we can us4 these I6e8, as far as they go, toward the payment of the muturl assestmentsupervisorsand the secretery,and thus relieve the Cenersl hmd of a buden to that extent.' x;enote R distinct dlffereuce in the language em- ployed in Section 35 of Senate Bill 155 from that used in &ticle 3920 as amended by Senate Bill 404, aonstruedby us in the secoud section of thle letter. In Senate %ill 404 the Legislature states the money "shall be . . . appropriated . . . in such manner as provided in the general appropriation * . .0 In 9xtlon 35'0f Senate El11 lS5, the direction is positive aud specific, and dependent upon no cont9ency of future approprlationr Thepertineutlaugusge is: . . . such fees shall be expended mder such l~ltations as the The Legislaturehaving thus speciflosllydireoted deposit in s special fund and appropriatedthe money aud havlug deslguated in the general appropriationbill three mtusl assessment supervisorsand the secretary with equlv- ocal limitation as to their salary, we are of opinion you nay use the feee paid to the Board of InsurauoeComsissione~re by all associationsregulated by Senate Bill 135 (hutual Assessment Insurance Companies and Associations)to pay the salnrles of such supervisorsaud secretrry. Therefore, re respe&Xully auswr your question in the affirmative. We wish to thsuk you for the complete iuformation furnished in your letter, shlah has materially aided us in Eonornble O;alter C. P:oodward, Page 15 our investl~;ation of t?e lm apJllcable to the questions pro- pounded. Yours wry truly Asslstaat