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Auwmiu~~.TEx~s PRICE DANIEL ATTORNEY

GENERAL

August 22, 1951

Hon. Robert S. Calvert Comptroller of Public Accounts Austin, Texas Opinion No. V-1250
Re: Authority to deposit Federal funds inthe State Treasuryandexpendsuch funds during the next biennium under the provi- .skm~ ofthe general appropriation bill.
Dear Sir:
Your request for an opinion concerns the status of certain funds granted the State by the Federal Government for purposes ofpublic health andblind rehabilitation, As a rider in House Bill 322 (Acts 51st Leg., R.S. 1949, ch. 615, p. 1208) it is provided at page 1345:

“(10) United States Funds andAid. The proper officer or officers ofany State departments, bureaus, divisions or State agencies are hereby authorized to make application for andaccept any gifts, grants, allotments. or funds from the United States Government, or educational or health projects and programs, tobe used on Statecooperative and other projeditsand programs in Texas, including construction ofpublic buildings, repairs and improvements, All of such funds shall be depoeited in the State Treasury and are hereby appropriated to the specific purpose or purposes authorized by the granter, and may be withdrawn from the State Treasury subject to limitations placed onthis Act except if contmry to the purposes for which the funds were received; provided, however, purchases from Venereal Disease Control Funds used for Rapid Treatment Center operations, shall be considered as emergency purchases by the Board of Control andmay be withdrawn upon presentation ofvouchers approved by the State Health Office.”.

Hon. Robert S. Galvert, page 2 (V-1250)

Inthe appropriation bill for the biennium beginning September 1, 1951. (House Bill 426, Acts 52nd Leg,, R.S. 1951)in place ofthe above provision the following was inserted in Section 2 ofArticle III:

“(10) When anagency of the State government has entered into a contract or agreement withthe Federal government, such Stateagency shall file a copy of such contract or agreement with the Secretary of State for recording. Such State agency shall notencumber or expend any Federal funds received through such contracts or agreements until said copy is filed withthe Secretary of State. Provided, that copies of research contracts ‘classified’ inthe interest of National security shall notbe filed butin lieu thereof a statement that such a contract has been made shall be filed.’ Thus, the Legislature evidently felt that it was unnecessary to include in the appropriation bill for the biennium 1951-53 the general provision with regard to acceptance and disposition of Federal grants inthe form andwording ofthe 1949 appropriation act. Instead, it provided that Federal funds received as a result ofa contract or agreement by
a State agency may notbe expended by thatagency until a copy ofthe contract or agreement is placed onfile in the office of the Secretary of State. Inthis manner the Legislature clearly indicated thatthese Federal grants may be accepted and expendedby thevarious State agencies,

We are informed that, under the Federal law, blind rehabilitation is a part ofthe educational rehabilitation -program. The donations to the various States are made to the education agency ofthat State andnot to a separate agency concerned solely withblind rehabilitation. Accordingly, the Texas Blind Commission prepares its budget for funds necessary for operation and submits it to the Texas Central Education Agency. The Central Education Agency considers the budget and request for funds and, after approving it, submits the request to the Federal Government, The Federal Government, inturn, grants funds tothe Texas Central Education Agency to be used for blind rehabilitation. These funds are then allocated to the Blind Commission andexpanded from the State Treasury for the purpose for which the,*grantwas made. t,

The health grants tothe States from the Federal Government are made directly to the State agency concerned with public health with a provision that:. .

Hon. Robert S. Calvert, page 3

-. (V-1250)

“(a) The principal State Accounting Officer shall maintain either (1) a separate and distinct fur&account for each Public Health Service grant, or (2) a separate anddistince fundaccount for each State agency inwhich all Public Health Service grants may be commingled with other Federal grants (butno other funds) available to such agency.” Regulations Covering Grants to States for Public Health Services, 15Fed. Reg. 4222 (1950).

Inthe light ofthese facts, you present for our consideration the following questions:

1. Does the State Treasurer have the authority to take the Federal fundsallottedto either the State Health Department or the Commission for the Blind into account in the funds ofthe Treasury?

2. Ifthe Stats Treasurer has the authority to take these funds into the Treasury, then are such Federal funds appropriated to the State Health Department andthe Commission for the Blind for the purposes for which the allocations are made by the Federal Government?

First as to the Blind Commission, inview ofthe method by which funds are donated by the Federal Government, it is necessary to look to the appropriation for the Texas Central Education Agency to determine whether authority exists for thatagency to place the Federal funds inthe Treasury and whether they are appropriated for blind rehabilitation. Following the line appropriations to the Central Education Agency, it is provided in House Bill 426, Acts 52nd Leg., R.S. 1951, that

“The proper officer or officers ofthe Texas Central Education Agency are hereby authorized to make application for-and-accept anybther gifts, grants, or allotments from the United States Govern- “mentor other sources tobe used.* cooperative and G projects and programs in Texas, including construction ofbuildings. repairs, and improvements. Any of such Federal funds as may be deposited in the State Treasury are hereby appropriated to then specificpaphasis ours.)
Ittherefore appears thatwith regard to the funds granted by the Federal Government for blind rehabilitation ample authority exists for placing those.funds in the State Treasury andHon. Robert S. Calve& page 4 (V-1250)

it also appears thatthey are appropriated for blind rehabilitation invirtue ofthe above quoted provisions ofthe appropriation bill. The appropriation for the Blind Commission provides in several places that the State moneys appropriated for use by that agency are the “State’s part” ofthe funds necessary to operate that Commission. Line items 1, 8, and 10ofappropriation for Blind Commission, Art. III, H.B. 246, Acts 52nd Leg., R.S. 1951. Turning to the provisions with regard to the Federal grants to the Texas State Health Department, theonly prohibition against placing funds inthe State Treasury is thatwhich is contained inArticle 4374, Vernon’s Civil Statutes, which provides that:
“All moneys received by the Treasurer shall

be kept inthe safes andvaults ofthe Treasury: and the Treasurer shall notkeep or receive into the building, safes or vaults ofthe Treasury any money, or the representative of money, belonging to any individual except in cases expressly provided for by law; nor shall said Treasurer appropriate to his own use, or lend, sell or exchange any money, or the representative of money, in his custody or control as such Treasurer.*
Itis thus seen that the only prohibition against placing money inthe State Treasury is that money’“belonging to any individual” shall notbe kept inthe treasury except under a spacific statute. No prohibition exists with regard to placing public money, whether it be public money granted by the Federal Government or Statefunds, in the State Treasury. Itwould therefore appear thatthe public grant to the State Health Department may be placed in the State Treasury andtaken into account as funds ofthe Treasury.
The question ofthe appropriation ofthose funds for use by the Health Department is answered.by. the appropriation to the State Health Department in House Bill 426, supra. Itis there provided that the funds appropriated tothe State Health Department are
“To be used to match Federal funds allocated to the State of Texas for the payment of salaries andother necessary expenses inconnection with the operation andmaintenance of a State program of public health services, Specific descriptions of duties, examples ofwork performed, minimum qualifications, andcompensation ranges for each classification are provided.

Hon. Robert S. Calvert, page 5 (V-1250)

inthe approved personnel plan agreed withthe the US. Public Health Service, tjxeU.S. Children’s Bureau, andthe State Department of Health.”
The Legislature thus recognized that State funds appropriated are only a part of,the funds necessary for the operation ofthe State Health Department. The remainder is tobe supplied by the Federal Government by grants which, it appears, are clearly appropriated to use by the State Health Department.
Itis well settled thatno particular form ofwording is required to make an appropriation. InNational Biscuit Co. v. State, 134 Tex. 293, 135 S.W.2d 687 (1940). the rule,is stated at page 693:

u0e0 Itis settled that no particular form ofwords is required to render an appropriation specific within the meaning of the constitutional provision under discussion [Art. VIII, Sec. 61DItis sufficient if the Legislature authorizes the expenditure by law, and specifies the purpose for which the appropriation is made. 0e*”
Also see Pickle v, Finley, 91 Tex. 484, 44 S.W, 480 (1898); 38 Tex. Jur. 844, States, Sec. 27; 8Tex. Jur, Supp. 781, States, Sec. 27.
We therefore agree withyour conclusion thatthe Treasurer has authority to take into account the Federal funds provided for blind rehabilitation and public health andthat these funds are appropriated by House Bill 426, the general appropriationbill for the next biennium, for the purposes for which granted.

SUMMARY
Federal funds granted the State for blind rehabilitation and public health services may be deposited in the State Treasury and expendedHon. Robert S. Calvert, page 6 (V-1250)

under the provisions ofthe general appropriation bill (H.B. 426, Acts 52nd Leg., R.S. 1951).
Yours very truly,
APPROVED:
Everett Hutchinson Executive Assistant PRICE DANIEL Attorney General

Charles D. Mathews First Assistant
Price Daniel Attorney General Assistant

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