November 19: 1969 

Hon. Burton G. Hackney 

Commissioner 

Opinion No. M- 512 

State Department of Public Welfare Re: Authority of the State 

John H. Reagan Building Department of Public 

Austin, Texas Welfare to expend money 

to refurbish a building 

which is leased by the 

county on a long term 

lease basis and is furnished the Department 

Dear Mr. Hackney: rent free. 

your request for an opinion asks the following question: 

"May the Department expend funds for the 

purpose of refurbishing the interior of a 

building which is leased by a County on a 

long term lease basis and furnished to the 

Department rent free?" 

Subdivisions 5 and 7 of Section 4 of Article 695c, 

Vernon's Civil Statutes, relating to the powers and duties of the 

State Department of Public Welfare, provide in part as follows: 

"(5) Assist other departments, agencies and 

institutions of the local State and Federal 

Governments, when so requested and cooperate 

with such agencies when expedient, in performing services in conformity with the purposes of 

this Act; 

"(7) Establish and provide such method of 

local administration as is deemed advisable, and 

provide such personnel as may be found necessary 

for carrying out in an economical way the administration of this Act; . . ." 

Section 39 of Article 695c, Vernon's Civil Statutes, 

provides: 

-2&O- 
Hon. Burton G. Hackney, page 2 M-512) 

"Sec. 39. No provision of this Act is intended to release the counties and municipalities 

in this State from the,specific responsibility 

which is currently borne by those counties and 

municipalities in support of public welfare, child 

welfare, and relief services. Such funds which 

may hereafter be appropriated by the counties and 

municipalities for those services may be administered through the county or district offices of the 

State Department, and if so administered, shall be 

devoted exclusively to the services in the county 

or municipality making such appropriation." 

In construing the above quoted provisions it was held 

in Attorney General's Opinion WW-429 (1958): 

"In view of the provisiona of Article 695c, 

the State Department of Public Welfare is authorized to enter into agreements with municipalities and counties for the purposes of carrying out the Welfare Program. It is, therefore, 

our opinion that the Department of Public Welfare 

is authorized to make necessary repairs or renovation to office space allocated to the Department 

by a municipality or county as outlined in the request, and to expend appropriated moneys for such 

purposes." 

Therefore, the Department may expend funds for the purpos,e of refurbishing the interior of a building upon privately 

owned land which is leased by the county on a long term lease 

basis unless such expenditure constitutes a grant of public 

funds or credit within the meaning of Sections 50, 51 or 52 of 

Article III or Section 6 of Article XVI of the Constitution of 

Texas. 

In Attorney General's Opinion C-511 (1965) it was 

held that the provisions of House Bill 43, Acts of the 59th 

Legislature, Regular Session, 1965, Chapter 196, were unconstitutional insofar as the act authorized the Texas Aeronautics 

Commission to expend funds for the purposes of improving airports on leased land. It is stated in Attorney General's 

Opinion C-511 (1965): 

-2&l- 
Hon. Burton G. Hackney, page 3 (M-512) 

"However, the above mentioned opinion and 

court decisions do not involve the question presented by your request; that is, the use of public 

funds for the improvement of privately owned land. 

It is clear that H.B. 43 quoted above contemplates 

the possible use of public funds to improve land 

belonging to individuals, associations or corporations other than municipal corporations. At the 

end of the twenty-year lease the improvements on 

the land will become the property of the owner of 

the fee. In our opinion, the term of the lease has 

nothing to do with the question of the authority of 

the State or municipality to use public funds to 

improve the land. The statutory provision now requiring a twenty-year lease may be amended at~any 

time to require a one-year or a two-year lease. 

In any event, the question is the same.” 

It is our opinion that the expenditure of funds for 

the purpose of making necessary repairs and maintenance in order 

to make the building fit to be used by the Department does not 

constitute a grant of public money within the meaning of Sections 

50, 51 or 52 of Article III or Section 6 of Article XVI of the 

Constitution of Texas, for the reason that such expenditure 

constitutes necessary expense involved in the occupancy of the 

building by the Department. You are therefore advised that the 

expenditure of funds for the purpose of refurbishing the building , allocated to the Department of Public Welfare by the county 

may be made. 

SUMMARY 

The State Department of Public Welfare is 

authorized to expend funds for the purpose of 

refurbishing the interior of a building which 

is leased by the county on a long term lease 

basis and is furnished the Departme rent free. 

-2&2- 
Hon. Burton G. Hackney, page 4 (M-512) 

Prepared by John Reeves 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Kerns Taylor, Chairman 

George Kelton, Vice-Chairman 

Jim Swearingen 

Fielding Early 

2. T. Fortescue 

Wardlow Lane 

MEADE F. GRIFFIN 

Staff Legal Assistant 

NOLA WHITE 

First Assistant 

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