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 ooataInedin the AppropriatlonAct, 55th Leg. R.S. 1957, can the CozaIssIonemploy
a firm of Publio 

### Utility Aeaonntamtsfor evaluation Dear Hr. Thoapuon: servioef4.

You huve~requested an opinion 

### on the tollowIng questions: "Questionho. 1: Can the C4laissIon

utlfize the savings In salariedItems in the 

### employmentof a qualifiedpublic utlllty evaluationservioe?

“Qeatloa Ro. 2: 

### Can the Colriesion likeviseutilize the 6um appropriated under 

### Item 48 'ForOther Expense'and which reads 'and othm neceesary expenses to be 

### incurred in 

### the admInIntratIonandenforcement, eta.'?"

You state In your letter that the Railroad Commission 

### by reason 

### of Inadequateappropriation and lnadequate salary authorization has not been able to maintain
a staff of auditorsand engineersto properly evaluate the teetImonypresen,ted in 

### a resenthearing on an application of the Loan Star Qas Compenyfor authorizationto Inureasethe cost of gas In it.8 lntra-cityoperations, and that It vi11 be neoeasary 

### to erplo~ 

### a capable ezperlenced firm of public utility aacountantsto carry out the Ccmzzlssitin~a

dutyin properly evaluatingthe 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 :andaudit 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'~andwitness Pees,,~postage, books,.

bond ,premiums,,

stationery, telephone and telegraph, equipment, travel,, the maintenance, operation and ,replacementof 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 :forn~ece'ssary Other Expense items shown in'iltem No. 48;.durIng each of the fiscalyears ,ofthe biennium~beginning September 1, 1957.,!'(Emphasis ours.) ,' .' : " ,' I

.

. ,'

### HonorableErnest 0. Thompson, page 3 (~~-578)



### Section 8 

### of ArticleVI of House Bill 1 3, 

### Acts of the 55th Legislature (Qeneral 

### Appropriation Act provides:

"Sec. 8. 

### LimitationsOII use of Other Expense funds for paying salariesand, wages. None 

### of the funds appropriatedin Article I, II and III of this act in Items designatedfor travel expense, %her operating expense,for capitaloutlay or equlpment, or for maintenance, miscellaneous

and contingentexpenses,may be used for paying any salariesand wages ltnless the language of those items explicitlyauthorizessuch use.

"In those instances 

### where the language of such items does explicitlyauthorizethe
use of such funds for paying salariesand wages, such employeesshall not be paid a larger amount than that provided in the regular appropriatedsalary Items for similar positions in such agenay 

### of the State. In the event there are no similarpositions within such agency, then such employeesshall not 

### be paid a larger amount than that provided for similarvork or positionselsewhereIn the State Government. 

### In the event common laborers,skilled laborers,and mechanics cannotbe obtainedat the salary rates lndlcated in this paragraph,then the head of such agency of the Statemay pay for temporary employmentonly at rates not exceedingthe prevailingwage aaale paid in the locality where temporaryserviae Is to be rendered."
Since Item 48 Is "For Other Expenses"the prohibition containedIn Section 8 of ArticleVI above quoted applies to the expenditureof Item 48, 

### togetherwith the' moneys availablefor expenditurefor other expenseswhhich is saved from salary Items for the Qas UtilitiesDivision.

merefore, the questionpresentedby you is whether the employmentof a firm of publicutility accountantsas experts in their field to make the evaluationproposed In your request constitutesthe paymentof salariesor wagesHonorable 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 'Inorher to aapfire '2ne'aerv~cal3 ti x?xp@t P-aXu&t%onriccaurftants 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