THEAFJTORNEY GENERAL 

OF TEXAS 

Honorable Firmest 0. Thompcton, CZmIrman 

RaIlroud commlsaIon of Texas 

Austin, Texas, 

Re: Under the provisions 

of the appropriation 

for the Oas Utilities 

Elvislen of the Railroad Commlaslon ,as 

ooataIned in the Appropriatlon Act, 55th 

Leg. R.S. 1957, can 

the CozaIssIon employ 

a firm of Publio Utility 

Aeaonntamts for evaluation 

Dear Hr. Thoapuon: servioef4. 

You huve~requested an opinion on the tollowIng 

questions: 

"Question ho. 1: Can the C4laissIon 

utlfize the savings In salaried Items in 

the employment of a qualified public utlllty evaluation servioe? 

“Qeatloa Ro. 2: Can the Colriesion 

likevise utilize the 6um appropriated under Item 48 'For Other Expense' and which 

reads 'and othm neceesary expenses to be 

incurred in the admInIntratIon andenforcement, eta.'?" 

You state In your letter that the Railroad Commission by reason of Inadequate appropriation and lnadequate salary authorization has not been able to maintain 

a staff of auditors and engineers to properly evaluate 

the teetImony presen,ted in a resent hearing on an application of the Loan Star Qas Compeny for authorization to 

Inurease the cost of gas In it.8 lntra-city operations, 

and that It vi11 be neoeasary to erplo~ a capable ezperlenced firm of public utility aacountants to carry out 

the Ccmzzlssitin~a dutyin properly evaluating the evidence and exhibits already Introduced. 
Honorable Ernest 0. Thompson, page 2 (~~-578) 

Article 6065, Vernon's Civil Statutes provides 

in part as follows: 

"The Commission may employ and appoint, 

from time to time, such experts, assistants, 

accountants, engineers, clerks and other 

persons as it deems necessary%to enable it 

at all times to inspeat :and audit all records 

or receipts, disbursements, vouchers, prices, 

payrolls,. time,cards, books and official records, to inspect all property and records of 

the ~utilities.sub;ject to the provisions hereof, and~to perform such other services as may 

be directed by.the Commission or under its 

authority." .. 

Pursuant to the above quoted provisions, the 

Railroad Commission has the authority to enter into contracts to acquire the services of experts in a particular 

case. 

.' 

The Legislature by line Item has appropriated moneys 

for the payment of various salaries of employeesin the: 

Gas Utilities Division. Following these line Items for 

the payment ,of ,salarles and,wages, Item 48 appropriates 

moneys for other expenses as follows: 

"SherIffs'~and witness Pees,,~postage, 

books,. bond ,premiums,, stationery, telephone 

and telegraph, equipment, travel,, the maintenance, operation and ,replacement of one 

passenger vehicle, and other necessary expenses to be incurred in the administration 

and enforcementof;and as contemplated by 

the ,provisionsof Chapter 16 of the General 

Laws of Texas,.lp25, as'smended and the provisions of Chapter.2 (,H.B..No.~ 792), Acts of 

the Forty-sixth Legislature . . . 

"It is expressly,provlded that any saving 

in the..salari-ed,items for the:Gas Uttllties 

Division may be'expended :for n~ece'ssary Other 

Expense items shown in'iltem No. 48;.durIng 

each of the fiscalyears ,of the biennium~beginning September 1, 1957.,!' (Emphasis ours.) 

,' .' 

: " ,' 

I 

. . 

,' 
Honorable Ernest 0. Thompson, page 3 (~~-578) 

Section 8 of Article VI of House Bill 1 3, Acts of 

the 55th Legislature (Qeneral Appropriation Act provides: 

"Sec. 8. Limitations OII use of Other 

Expense funds for paying salaries and, 

wages. None of the funds appropriated in 

Article I, II and III of this act in Items 

designated for travel expense, %her operating expense, for capital outlay or equlpment, or for maintenance, miscellaneous and 

contingent expenses, may be used for paying 

any salaries and wages ltnless the language 

of those items explicitly authorizes such 

use. 

"In those instances where the language 

of such items does explicitly authorize the 

use of such funds for paying salaries and 

wages, such employees shall not be paid a 

larger amount than that provided in the regular appropriated salary Items for similar 

positions in such agenay of the State. In 

the event there are no similar positions 

within such agency, then such employees shall 

not be paid a larger amount than that provided 

for similar vork or positions elsewhere In 

the State Government. In the event common 

laborers, skilled laborers, and mechanics 

cannot be obtained at the salary rates lndlcated in this paragraph, then the head of such 

agency of the State may pay for temporary 

employment only at rates not exceeding the 

prevailing wage aaale paid in the locality 

where temporary serviae Is to be rendered." 

Since Item 48 Is "For Other Expenses" the prohibition contained In Section 8 of Article VI above quoted 

applies to the expenditure of Item 48, together with the' 

moneys available for expenditure for other expenses whhich 

is saved from salary Items for the Qas Utilities Division. 

merefore, the question presented by you is whether 

the employment of a firm of public utility accountants as 

experts in their field to make the evaluation proposed In 

your request constitutes the payment of salaries or wages 
Honorable Ernest 0. Thompson, page :4 (~~-578)' ' 

or constitutes a ,contingen~texpense,necessary to the operation 

of the Railroad~Commisslon in ,this, particular ease. 

Since the proposed contract is not for the performance 

of duties generally for the Commission, but is entered into 

'In orher to aapfire '2ne'aerv~cal3 ti x?xp@t P-aXu&t%on riccaurftants and/or engineers to carry out a specific valuation in 

a particular case, It Is our opinion that &oh: contract does 

not constitute the payment of any salary or, wage. On the 

contrary, such expenditure is a neoessarg expense to the 

Commission under the facts submitted and, therefore, payable 

out of Item 48 and any sum transferred to Item 48 which is 

saved from salaried items. Your questions are, therefore, 

answered in the affirmative. 

SUMMARY 

Item 48 of the appropriation to 

the Railroad Commission may be 

expended for the purpose of contraating with a firm of experts 

to make necessary evaluations enabling the Railroad Comnilssion to 

carry out its duty in evaluating 

the testimony ;?dduc,ed at a hearing 

before the RaIlroad Commission. 

Yours very truly, 

WILL WILSON 

Attorney General of Texas 

‘&iii?kLefd 

Assistant 

JR:rm:mfh 

APPROVED: 

OPINION COMMITTEE 

Geo. P. Elackburn, 'Chairman 

Jot Hodges/Jr. 

Grundy Williams 

Grady H. Chandler 

Wallace Finfrock 

REVIEWED FOR THE ATTORNEY GENERAL 

BY: W. V. GEPPERT