## ---- 246

OFFICE OFTHEA'ITORNEY GENERAL OFTEXAS
AUSTIN

mnorable c&m-ley Iioclburt State Treasurer Austin, Texas

Dear Mr. Locrkhsrta

t4ln question0 propoval* eertwm or the 4bms

### tter &nil 4eoeBIp4ap



### at the Acts or the of t&e 44th L6gzL6~ he ore*tion af PO Paul of tho Texas

w to m,wo.
ter ths sffectlredate of the tXlt8tiTW$ Of the cO6UptPOl~ tment, Trecrsury

Dopwtment, neraP4 Dep4rtzmnt,Texas Rystem snl the tuo Huntsville conferredw%th aaoh other aad 8ormd out the pl8n for est4blGahlng the Revolvingpurd. Under the plan adoptea, the etatie Treasurerdepositad the roomy itl

the tW0 HuIMville b&u&# ($a$,ooo %n 6aoh bunk) from Treaary general oash, the theorybeixig that 3.88 aa6e 8 loss shouldbe eustaimd, the

## 241

Donorable Charloy Lockblast - Page 2

loss would bc chargeable to the Prison System Funds cn the books Of the State Treasury and the State Couptroller and the Prison System recover its loss by disposing;

of the sccurltLes required by Rouse Dill No. 78, to be deposited :fiththe General Danager of the Prison System. The Huntsville Banks do not make charges against the deposits maintained witb them by the State Treasurer but pay claims against the Prison Systeu from another account with the undorstanding that the WSX~BBIUI amount to be pi& is $26,000 from each bank. The Prison System setis its claims to the State Comptroller,~who issues warrants on the State Treasury drawn against Wison Funds and these warrants are credited by the banks to the claims account againet the Prison System.

** 4s*
sllaprcsentativcs

of the State Auclitor*s

Department, State Comptroller's Department and the State Troasury Department have di.soussed the change as recommended by Dr. King and have agreed that the following qucst%ons be subDitted to you for answeringr
"(1) Should the money now on asposit with the Duntsville Banks be withdrawn by the State Treasurer anil warrants drawn on the Texas Prison Funds be substitutoat
v(2) If your answ~erto question No. 1 is in the affirmative, would the Prison system have authority to use the $60,000
as a revolving fund by clrawixig checks against tha funds on Beposit with the Huntsville bankst
"(3) If your answer to question No.2 po in the affirmative, should the vouchers

## 242

Honorable CharleyLockhart - me 3

submittedto the State Comptroller by the Prison Systam require the warrants to be issued payable to the Prison Syston or.to the original clPim4ntsP

l (4) IS the warranto shouldbe drawn payable to t&e Prison System, what sort of a olsim shouldbe pmsented to the State Comptrollertor iesu4noeof the warrants?
.(a) If your 4n6wer to questions Ros. 1 and S are in the 4ffirnr3t~ve, a.ud the Prieon System p4ys 8n invslid clalra, where does the responsibility 1%e?
W(S) If your answer to questionTo. 1 Is In the negrtiye, 4nd the present plsn is continued4nd an invalid e14inl %4 paid by one of the Runtsvllle34&s and chargedagainet the aoeouut titled *ClaimsAgainst the Texas Prison Systems,’ does the bank have the right to offset any loss sustaiaedaga%nst the speclol deposit msintaineathereby the State Treaeuryt
*(7) IS you rule that the money shouldbe wlthdrauufrom the State Preaeury by w4rrantsand the w4rr4ntsare iscued aad F d, does the State Treaeurer have ,any urther responsibility fob %ike money withdramt
‘(8) If.;‘yonr

4nswer to questionlie. 1 IS In the aff%matjlve,ahould the warrante for plao%ng the (!50~oi30 Sn the Huntsvillebanks be s&is payable to the Texas Prison 8ystem or to the auntsvllle J&X& and Trust Qomysny,Runtsoille,Tex88, and the Birst Ration41Rank, Huntsville, Texas, Par credit to the Prison Industrial Revolvine;

$naB?
C(e) If your answer to question lo. 1 is In the negativeand the presentplan iscontimmd and a 10~4 4houlU otmur, tauld the loss be ohargeable to the air021 Industrial ~erolring Fuw on the mom ot the,State Treaeurer and State &xnptroll@P?4
Beation 1 ef II.

D. w is a4 follms(
Qkom am3 af6er t&e Mfeetfve uafe of ths8 A&f, 6he mate Treamrer of the state of vex84 4hal.l. deposit sucEioient amount of poney reoeited by b&m from the #tenerr yanryec 0P 6he Tex84 Prioon ey4tem out ef 884843~ 

### earned by au%belamgiq to t&s State prloon6yst4mia '@un6wsllcr Tea88 of m.ftyThouspoa

BoZlars (~0#000J, or 40 4wh there& 88 84ay be weemaorp to crsate a fund of Pifty !#hans8nU Pollars ( 0,oao) 

### to be knowna8 

### the Iadustria 

### I%tol* ?wd of the

plant,~ **4ho0 anU**  **print** 4hop **aml** ***t&r** Szulnstriea

and delivery of $YMehed pmduat4 a4 prwided 9.81 the Iansru Appropr~fS0n 1111 ir eciib By&m, and 6380

&ate Tre84urer uhal1.taU

Fund up t0 the rsrirnrm funda 8bWe pmY%&U, and iarid fuUle ehrll be n@ed i4r th4 p‘Omp6 Paysrsnt 

### tn oaahef all

equalalwunt4 

### lntfie~~~tnillel~ and Trunt Company at iiudo*Zlle~ Rm44, and the Piret llatimalBank at Sunte- ,rille, Cexae, and mid baaitashall deposit with t&e **@enerU** yona(te~ of tbtj Prieon system, bonU4 

### or 06her 4eeurlties to be apprmsd by tho Attterney OenereS4f the State of B-4 4uffident to 444ure said dep44ft.4 

## 243

## 244

nonorableCharley Lockhart - Page 6

It is the opinion of this departmentthat your questionsshouldb0 answersd as hereinafter etated, observingfor conveniencesake the nu&erlug given by you.

1. QuestionNO. 1 shouldbe answeredin the affirmative. Section 1 **Of** the Act in questionauthorising the State Treasurerto create the revolvingfund requireshim to create the same out *of money received by him from the General Kanager of the Texas J?rieon System out of money eaxnedby and belonging to the State Prison Syetem in Iluntsville, Texas.' The fund
as it has been 0reated and now exiets was not, therefore, constituted out 0f the proper m0nies,but on the contrary,appears to have been createdwith Treasury general caeh. This mistakenmethod shouldbe eorreoted in the manner indicatedby this answer.

2. The Prison Systemwould have authority to use the revolvingfund for all lawful purposes, but not by *drawingchecks against* it as a depositorwould.

Seotion4 of Ii*

3J.Ilo. 78 declareat
"PaymentIpade

from the Induotrialdevolving fund shallbe mpde upon duly autbentiootedoertiticate by the G+eral &tanager 

### of the State Prison System and shall be paid by the State Comptrollerof PublicAaoountsby properwarrants drawn on said fund as now rewired by law for the payment of other chargesa&net the State 

### of Texas.*
This claarly indicates that the Revolving Fund thus set apart ie nevertheless a State fund, subject to be drawn ag8inSt by State authorityand n0t to be checked out upon the check of the State Prison Syetern or any representative of the Syiystem.

3. Vouchers submittedto the State Gomptroller and the warrantsb884d thereon shouldbe in the nam of the person entitled to payment from such fund. The vouchersneed only to be properlyauthenticated by the priscm System to authorizesuch payment.

## 245

HonorableCharlegLoc~khart * Page 6

4. If by svarrantssin oonneation with your question4, you refer to warrant4 issued to or for the benefit of olainmntsfor sales to the Prison System, this questionis ansvoredby what we have said in ans4er to question 3.

If, however, the word swarrantssis used in this question4 as indicatingthe means of oreatingor restoringthe de leted x&ni4um 4um of the RevolvingFund,
our answer to th

Ps question14 that the 4453 

### 8h0uiabe in favor of the deposit&ebanks for depositby State TreasurerIndustrialRevolvingpuad Texas Prison System.

0. Any authorizedadsdnietrative officerof the Prison Systemwho approves,or otherwiseauthorize4 and induoes the exeoutionaM paymentof a warrant out of the RevolvingBund when no valid olaim exists therefor, would be oirilly liable for aa,y lose thereby to the Btate of Texas directly, or by aubro:ationto sny other person or offioerwho had been compelledto pay euoh a loss. Of oourae, any person invoking the dootrine of subrogationor 4eekWig a recoupmentor lndemndty An auyw%sewould himselfhave to be free from any negligenceor oulpabillty whatever in respect to the sdsapplioation

of the fund.

G. This questionneed not be answered in 

### view of the fekt that we have not answered question No. 1 in the negative.

Under our Interpretation of the Act in question,$e State Treasurervs duty and liability abide 8nd oontinuewith respect to the RevolvingFund until the 4ame has been lawfullypaid out to proper olainmnts,or otherwisefully aocountadfor. In other words, the RevolvingFund iteelf 14 publiomoney in the posseosionof the State Treasurer to be disbursed and aooountedfor as other public funds Oosdng into his hands.

8. Thfs questionhas alreadybeen answered in this reply, to the effect that the instrumentsof deposit shouldbe payable to the'respeGtiVc dopoeitee banks.

9. This questionneed not be 8n4wered,in

## 246

Bonorable Gh*loy t0crYhart - p6go v

hew of the fact that we hate not answered question 80, 1 in the nagativer

We oco nOtamasdfulof Itoml~ in thoBfennial appro@ation mde by tb-e 44Nh begiolature for the Prison ayetern* Thin Itos 8-woppopiatee the $60 000. 00 originally approprirtod for the oro*tion of this ~,andsPJreoo~bber8ppcopsirb~ooa~thelwre 44uroo of an eddition8l @0,000.00, llmking a total in th@ia;lpst;rialammingRmdot ~100,ooo.00. St 8uthori6o4 thePen4ral Manager of the Pri4on8y4tsata issue 8 touoher upon the plmd %hWb ahall be Bent to theBoard of Control and the 

### l&ateGoorptroller for op provalaxlmgiskmtion,ud laid Wmptroller ball is8nedhtUy refura eaid vouohW~ if found lm be oorrgot, to the0asU.e~ of UmFriaoa Byetoa,who f&all iesue adraftuponthebaaker **benlrs mummated**  horn%%% in p4yrPentof 4eidroWmr.4



### ThbmathodofdAPlburMsn4atefthoFuxldb apparentl.yinoonfl%io8oithwhattehae saidabove.

we h8Yo all-a&y quoted Bf8otioQ 4 of U. B* no. wta reieron8e to the manner of wing Qut said
Appvopri.atiea&t dsnot oartroll effeot to ohange the w p4y6anf or die bursonxmt of thepurd prtml.diM fa iafirB. #a.m.

PI Ba go, 'pBds a gewrral law ood it i4 884t the gmwime of ana a general ctatute. EY priation oat to 8memd **or** repeal **poeelblyhwe** the legal (2-d Appr4prUtionA4tawld effct8tCocagoti the a;anscell UT, upon 0 g with all oonatitiatifmalnqalmment4anb 1 6 a4 to legielatiaa, but euuh %a nof the u4ual part ordhary Qireot.

In Oealey tr WbugfJ1t4~4 of tbo lko*lla of
roxae (the Alwo 088~3) 16% 81+1. sw, Ghtef Justioe F4 eaidr

*St wan never ooatetnplated that avalid imlstinglaw I)houldlHmpealed by an appropdation oi money, even though, a4 is not the 0840 &a this imtanoe It b4 toWly inoenellatent

with ihe term of the emleting law. l + **Admftt%ng tint a repeal* a04 IIligbt be epndprichad aaumjj the yarious and WudTJ ltcme of a general appwpriotion act, et.111 suubh an aat would not be 0.aubJeot or aaoount for and onrbioh nxmeyga

are approprlattd,aml nhoul& be ax~eeed in the tStla. It uat3 nw6e ooatelnplated that an aot mhouldbberepealedbj anitsrm2.n anappropriatSoa bill, and thare is now in the item oppropriatiag the ~QQO.00 to s.mprw8 the Alamo pvQe.rty thfbt wlnoeo any desire upon the part oi the Gegislatura to take the ouMm¶y UP the pro rty f+roa those to whem it baa bean r an rueted by law. * 0 e
l EY en ifthe

item which is uignb pie&by appellantebybeing atiled a *repealSng a&' bad been interrbea as an lI4IrAemnt

or the Bet of ram, it wouli%

not be in harm%ny with &~,fiells III, section fj6of the constitution whinh prwidas thet no law sbrll be iur18W by referonos to its title, but in ma&z oaae the wt Fsriered or the 6wtian or eeotiona aauwkl shall hors-ctlrrrotec%nnd publi&edatlen&h.*

Trustina;

that th3.m

reply till have answered yau: questione 6atis&aotor~ly, we BF8