E ATTORNEY GENERAL’ .’ ~‘~’ 

OF TEES 

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 in the State 

Treasuryandexpendsuch 

funds during the next biennium under the provi- 

.skm~ of the 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 of public health and blind 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 and Aid. The 

proper officer or officers of any State departments, bureaus, divisions or State agencies 

are hereby authorized to make application for 

and accept any gifts, grants, allotments. or 

funds from the United States Government, or 

educational or health projects and programs, 

to be used on State cooperative and other projedits and programs in Texas, including construction of public 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authorized by the granter, and may be withdrawn from the State Treasury subject to limitations placed on this Act except if contmry 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Board of Control and may be withdrawn upon 

presentation of vouchers approved by the State 

Health Office.” 
. 

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

In the appropriation bill for the biennium beginning September 1, 1951. (House Bill 426, Acts 52nd Leg,, 

R.S. 1951) in place of the above provision the following was 

inserted in Section 2 of Article III: 

“(10) When an agency of the State government has entered into a contract or agreement 

with the Federal government, such State agency 

shall file a copy of such contract or agreement 

with the Secretary of State for recording. Such 

State agency shall not encumber or expend any 

Federal funds received through such contracts 

or agreements until said copy is filed with the 

Secretary of State. Provided, that copies of research contracts ‘classified’ in the interest of 

National security shall not be filed but in 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 in the form and wording 

of the 1949 appropriation act. Instead, it provided that Federal funds received as a result of a contract or agreement by 

a State agency may not be expended by that agency until a copy 

of the contract or agreement is placed on file in the office of 

the Secretary of State. In this manner the Legislature clearly 

indicated that these Federal grants may be accepted and expended by the various State agencies, 

We are informed that, under the Federal law, blind 

rehabilitation is a part of the educational rehabilitation -program. 

The donations to the various States are made to the education 

agency of that State and not to a separate agency concerned solely with blind 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, in turn, grants funds to the 

Texas Central Education Agency to be used for blind rehabilitation. These funds are then allocated to the Blind Commission 

and expanded from the State Treasury for the purpose for which 

the,*grant was made. t, 

The health grants to the 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 and distince fund account 

for each State agency in which all Public Health 

Service grants may be commingled with other 

Federal grants (but no other funds) available to 

such agency.” Regulations Covering Grants to 

States for Public Health Services, 15 Fed. Reg. 

4222 (1950). 

In the light of these 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 of the Treasury? 

2. If the Stats Treasurer has the authority to take 

these funds into the Treasury, then are such Federal funds appropriated to the State Health Department and the Commission 

for the Blind for the purposes for which the allocations are 

made by the Federal Government? 

First as to the Blind Commission, in view of the 

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 that agency to place the Federal funds in the 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 of the Texas 

Central Education Agency are hereby authorized to 

make application for-and-accept any bther gifts, 

grants, or allotments from the United States Govern- 

“ment or other sources to be used.* cooperative and 

G projects and programs in Texas, including construction of buildings. repairs, and improvements. 

Any of such Federal funds as may be deposited in the 

State Treasury are hereby appropriated to then specific 

paphasis ours.) 

It therefore appears that with regard to the funds 

granted by the Federal Government for blind rehabilitation ample 

authority exists for placing those. funds in the State Treasury and 
Hon. Robert S. Calve& page 4 (V-1250) 

it also appears that they are appropriated for blind rehabilitation in virtue of the above quoted provisions of the 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” of the funds necessary to 

operate that Commission. Line items 1, 8, and 10 of appropriation 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 in the State Treasury is that which is 

contained in Article 4374, Vernon’s Civil Statutes, which provides 

that: 

“All moneys received by the Treasurer shall 

be kept in the safes and vaults of the Treasury: and 

the Treasurer shall not keep or receive into the 

building, safes or vaults of the 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.* 

It is thus seen that the only prohibition against placing money in the State Treasury is that money’“belonging to any 

individual” shall not be kept in the 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 State funds, in the State Treasury. It would therefore appear that the public grant to the State Health Department may be 

placed in the State Treasury and taken into account as funds of the 

Treasury. 

The question of the appropriation of those funds for 

use by the Health Department is answered.by. the appropriation 

to the State Health Department in House Bill 426, supra. It is 

there provided that the funds appropriated to the State Health Department are 

“To be used to match Federal funds allocated to the State of Texas for the payment of 

salaries and other necessary expenses in connection with the operation and maintenance of a 

State program of public health services, Specific descriptions of duties, examples of work performed, minimum qualifications, and compensation ranges for each classification are provided 
. 

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

in the approved personnel plan agreed with the 

the US. Public Health Service, tjxe U.S. Children’s Bureau, and the State Department of 

Health.” 

The Legislature thus recognized that State funds 

appropriated are only a part of, the funds necessary for the 

operation of the State Health Department. The remainder is 

to be supplied by the Federal Government by grants which, it 

appears, are clearly appropriated to use by the State Health 

Department. 

It is well settled that no particular form of wording is required to make an appropriation. In National Biscuit 

Co. v. State, 134 Tex. 293, 135 S.W.2d 687 (1940). the rule,is 

stated at page 693: 

u 0 e 0 It is settled that no particular 

form of words is required to render an appropriation specific within the meaning of 

the constitutional provision under discussion 

[Art. VIII, Sec. 61 D It is sufficient if the Legislature authorizes the expenditure by law, 

and specifies the purpose for which the appropriation is made. 0 e *” 

Also see Pickle v, Finley, 91 Tex. 484, 44 S.W, 480 (1898); 38 

Tex. Jur. 844, States, Sec. 27; 8 Tex. Jur, Supp. 781, States, 

Sec. 27. 

We therefore agree with your conclusion that the 

Treasurer has authority to take into account the Federal funds 

provided for blind rehabilitation and public health and that these 

funds are appropriated by House Bill 426, the general appropriation bill 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 expended 
Hon. Robert S. Calvert, page 6 (V-1250) 

under the provisions of the 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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