THE A-ITORNEY- GENERAL 

OF ?!?EXAS 

May 21, 1968 

Honorable J. W. Edgar 

Commissioner of Education 

Texas Education Agency 

Austin, Texas 

Dear Dr. Edgar: 

Opinion No. M- 238 

Rer Whether equipment purchased 

for and provided to vocational 

rehabilitation clients is regarded as client services and 

may be excluded from inventory 

required of state-owned personal property. 

You have requested the opinion of this office upon 

the question of whether: 

.equipment purchased for and provided ;o'vocational rehabilitation clients 

(a part of their physical rehabilitation program and/or necessary to their restoration to 

a productive place in society) be regarded as 

client services or in any other manner denominated that thereby such equipment shall be 

excluded from inventory required of stateowned personal property?' 

In connection with the foregoing question you have 

stated that: 

"Within the total vocational rehabilitation process for handicapped clients, it is 

often necessary to purchase certain items of 

equipment for the client, as an essential part 

of his rehabilitation program. Such items can 

and do range from an artificial leg, to a medically prescribed fixture necessary for client 

hygiene, to a typewriter for training and self 

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Dr. J. W. Edgar, page .2 ~(M-238) 

" employment. Automotive tools, welding kits, 

wheelchairs and myriad of such items are purchased for clientservices. 

II 

. . . 

"The physical and administrative burden 

involved in the.inventory forclient equipment 

is serious. Growth of the Vocational Rehabilitation,Division within the past five years has. 

been tremendous. The client case load has multiplied to a point that a major proportion of 

couns,elor-time is and will be involved in attempting to keep the inventory accounting complete, thereby detracting seriously from the, 

time available for client servicing and counseling." 

You have further informed this office by your letter 

that communications have been had with the Regional Office ~of 

the Department of Health, Education and Welfare concerning Federal requirements fork an inventory control and have been notified 

that:, 

,I . . .there is no requirement for maintaininq such inventory; only the usual fiscal 

responsibility concernins such expenditures 

* . .we do not feel that an annual inventory 

of equipment purchased for clients with federal 

funds is necessary or desirable because of the 

cost of maintaining such an inventory." 

(Emphasis added.) 

In closing, you have stated. in your letter that: 

"In the face of this mounting burden,experienced . . . by the Vocational Rehabilitation 

,. Division in maintaining such inventory accountability, discussion meetings were held with repre-, 

sentatives of the State Comptroller and State 

Auditors Office. They share the concern. They 

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Dr. J. W. Edgar, page 3 (M-2381 

recognize that we are burdened with a problem 

which entails expending far more, estimated on 

an annual basis, in the inventory process than 

the client items cost initially. Zt was brought 

out that from an accounting stand point, the 

equipment is considered services and not capital 

outlay. ” 

The State of Texas accepted the provisions of the 

Federal Vocational Rehabilitation Act, 29 U.S.C.A., Chap. 4. 

part 401, with the enactment of Article 2675-1, Vernon's Civil 

Statutes. 

Section 3 of Article 6252-6, Vernon's Civil Statutes, 

provides, in part, that: 

"All real and personal property belonging 

to the State shall be accounted for by the head 

of the agency which has possession of the property- 

"(a) The Comptroller of Public Accounts 

shall administer the property accounting system 

established by this Act. The State Auditor shall 

adminhster the property responsibility system 

established by this Act. The ComptrolZer shall 

issue such rules and regulations and manual of' 

instruction and prescribe such records, reports, 

and forms as he deems necessary to accomplish 

the objects of this Act subject to the approval 

of the State Auditor. The State Auditor is 

directed to cooperate with the Comptroller in 

the exercise of the Comptroller's rule-making 

powers herein granted by giving technical as- 

'sistance and advice." 

Section 4(c) of Article 6252-6, directs that: 

"All personal property owned by the State 

shall be accounted for by the agency which possesses the property. The Comptroller shall by 

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. . 

Dr. J. W. Edgar, page 4 (M-238) 

Lc.gtulation -- --.-.- define wha_t is meant by-&crsonal 

~~o&g~-fZo~@ ourooses of this-. Un- ,,~ 

less the Comptroller prescribes, otherwise, 

personal property shall mean all non-consumable 

personal property. In nromulqam such regulations, the Comotroller shail take into accouF 

G&value of the orooertv, its expected useful 

&f-e, - and cost of record keeoinq should bear a 

~$~~~le rclationshio to the cost of the orooertv 

uficJ.n.-,_which records are kept. 

- 

The Comptroller shall 

consult. with the State Auditor in making such regu’lations and the Auditor shall cooperate with the Comptroller in the exercise of this rule-making power 

by giving technical assistance and advice." ( Emphasis added.) 

The Crippled Children's Division of the State Department of Health purchases equipment for the use of the children 

with whom it works similar to that used by the Vocational Rehabilitation Division of the Texas Education Agency. Section 

3 of Article 4419c, Vernon's Civil Statutes, enumerates certain 

powers of the Crippled Children's Division of the State Deoartment of Health and is set forth in part as follows: 

"At the discretion of the State Department of Health, transportation, appliances, 

braces and material necessary in the proper 

handling of crippled children may be in part 

or entirely provided. Such appliances, braces 

and material, beins'a part of the care and treatment Droaram and necessary to the ohvsical restoration of the individual crippled child as defined 

in this Act, shall not be considered to be stateowned oersonal property and shall be excluded from 

the personal prooertv inventorv reauired of stateowned orooertv; and all such property including 

~appliances, braces and materials, being a part 

of the care and treatment program, and which 

are now being accounted for under the provisions 

of the present system of 'accounting shall be 

deleted from and not required after the passage 

and effective date of this Act. The State Deoartment of Health, however. shall maintain at all 

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. 

Dr. J. W. Edgar, page 5 (M-238) 

times a complete record of such appliances, 

braces and materials provided and such 

records shall be verified bv the State 

Auditor." (Emphasis added.) 

In view of the foregoing, we are of the opinion that 

the Comptroller of Public Accounts, upon consultation with and 

approval by the State Auditor, could promulgate.certain rules 

and regulations, under the discretion conferred upon him pursuant to Section 4(c) of Article 6252-6, whereby certain equipment purchased for and provided to clients of the Vocational 

Rehabilitation Division, being of a consumable nature as properly 

determined and defined by the Comptroller, would not be deemed 

"personal property" for the purposes of Article 6252-6 and would 

thus not be required to undergo an annual inventory. 

In this connection, however, the Comptroller of Public 

Accounts might require some form of record keeping such as that 

required of the Crippled Children's Division of the State Department of Health under Article 4419c. 

SUMMARY 

The Comptroller of Public Accounts, upon 

consultation with and approval by the State 

Auditor, could promulgate certain rules and 

regulations, pursuant to Section 4(c) of 

Article 6252-6, Vernon's Civil Statutes, whereby certain equipment purchased for use by clients 

of the Vocational Rehabilitation Division of the 

Texas Education Agency would not be deemed "personal property“ for the purposes of Article 6252-6 

and would thus not be required to undergo an annual inventory. 

V& truly yours, 

ORD C. MARTIN 

orney General of Texas 

Prepared by Pat Bailey 

Assistant Attorney General 

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. 1 

Dr. J. W. Edgar, page 6 (M-238) 

APPROVED: 

OPINION COMblX~EE 

Hawthorne Phillips, Chairmen 

Kerns Taylor, Co-Chairman 

Thomas Mack 

Roger 51er 

Malctalm Quick 

Dyer Moore, Jr. 

A. J. CARUBBI, JR. 

Executive Assistant 

- 1166.