The Attorney General of Texas
MARK WHITE May 6, 1981
Attorney General
Honorable Ray Farabee, Chairman Opinion No. W-333
Senate Committee on State
Affairs Re: Constitutionality of C.S.H.B.
Austin, Texas 78711 889 concerning direct &posit of
payroll warrants by magnetic tape
Honorable Gerald Hill, Chairman transfer service
Committee on Elections
House of Representatives
Austin, Texas 78711
Dear Senator Farabee and Representative Hill:
You have requested our opinion regarding the mnstitutionality of
House Bill 889, presently pending in the 67th Legislature. The bill would
amend article 43444 V.T.C.S., by adding the following provision:
Notwithstanding the provisions of any other statute,
the Comptroller of Public Accounts may establish and
operate an electronic ftmds transfer system only to
transfer employees gross state salaries less
deductions specifically authorized by state or federal
law or reimbursement for travel and subsistence of
employees or [payment?] to state contractual payees
to satisfy state contracts directly into their accounts
in financial institutions. An employee or state
contractual payee must request in writing to
participate in any electronic ftmds transfer system
established and operated by the Comptroller of Public
Accounts A single transfer may contain payments to
mutiple payees without the necessity of issuing
individual warrants for each payee. The Comptroller
shall establish procedures for administering the
system and may use the services of financial institu-
tions, automated clearinghouses and the federal
government. The use of electronic ftmds transfer or
any other payment means does not create any rights
that would not have been created had an individual
state warrant been used as the payment medium. The
State Treasurer may not make a payment of a state
employee’s salary before the last working day of the
payroll period.
p. 1079
. -
,
Honorable Ray Farabee
Honorable Gerald Hill
Page Two @I+3331
The state treasurer contends that this proposal, if enacted, would contravene article 4,
section 23, and article 3, sections 50 and 51 of the Texas Constitution.
In Attorney General Opinion MW-213 (1980), we said that, while existing law
permitted the comptroller, at an employee’s instruction, to transfer the employee’s pay
warrant directly to his designated bank, there was no statutory authority for the
comptroller to issue to a bank a pey warrant covering multiple employees or to issue
warrants solely by means of magnetic tape. House Bill 889 furnishes such authority.
Article 4, section 23 of the Texas Constitution merely establishes the office of
state treasurer and directs that he “perform such duties as are or may be required by
law.” No duties of the treasurer are specified in the constitution, and, in our opinion,
the legislature is at liberty to reasonably determine the scope of his duties. The
provision of the bill directing the comptroller to “establish procedures for administer-
ing the system” merely makes it his duty to conform the use of electronic “warrants”
as nearly as may be possible to the statutory requirements governing the issuance and
control of paper warrants. The existing statutes flsnish sufficient standards to guide
his discretion. The sentence prohibiting the State Treasurer from making a payment of
a state employee’s salary before the last working day of the payroll period is
confirmation that the bill does not attempt to change the traditional role of that
constitutional officer. No payment may be ma& from the treasury except at his
direction.
Article 3, section 50 of the constitution prohibits the legislature from lending or
pledging the credit of the state for the liability of any individual, corporation or
association. Article 3, section 51 prohibits the grant of public finds to an individual,
corporation or association. In our view, neither of these provisions is subverted by
House Bill 889. See Attorney General Opinions MW-55 0979); H-74 (1973).
Accordingly, it is otii$nion that House Bill 889, if enacted, would be upheld as
constitutional as against the objections raised.
SUMMARY
House Bill 889, presently pending in the 67th Legislature,
does not contravene article 4, section 23 or article 3, section 50
or 51 of the Texas Constitution.
A*
Attorney General of Texas
p. 1080
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Honorable Ray Farabee
Honorable Gerald Hill
Page Three (rw-333)
JOHN W. FAINTER, JR.
First Assistant Attorney General
RICHARD E. GRAY III
Executive Assistant Attorney General
Prepared by Ride Gilpin
Assistant Attorney General
APPROVED:
OPINION COMMlTTEE
Susan L. Garrison, Chairman
Jon Bible
Rick Gilpin
Jim Moellinger
Thomas M. Pollan
p. 1081