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