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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 4bmstter &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 sffectlre date of the 

tXlt8tiTW$ Of the cO6UptPOl~ 

tment, Trecrsury Dopwtment, 

neraP4 Dep4rtzmnt, Texas 

Rystem snl the tuo Huntsville 

conferred w%th aaoh other aad 

8ormd out the pl8n for est4blGahlng 

the Revolving purd. Under the plan 

adoptea, the etatie Treasurer depositad 

the roomy itl the tW0 HuIMville b&u&# 

($a$ ,ooo %n 6aoh bunk) from Treaary 

general oash, the theory beixig that 3.88 

aa6e 8 loss should be 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 

:fith the 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"(1) Should the money now on asposit with the Duntsville Banks be withdrawn by the State Treasurer anil warrants 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~er to 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 Charley Lockhart - me 3 

submitted to 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 should be 

drawn payable to t&e Prison System, 

what sort of a olsim should be pmsented to the State Comptroller tor 

iesu4noe of 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 question To. 

1 Is In the negrtiye, 4nd the present 

plsn is continued 4nd an invalid e14inl 

%4 paid by one of the Runtsvllle 34&s 

and charged againet the aoeouut titled 

*Claims Against the Texas Prison Systems,’ 

does the bank have the right to offset 

any loss sustaiaed aga%nst the speclol 

deposit msintainea there by the State 

Treaeuryt 

*(7) IS you rule that the money 

should be wlthdrauu from the State Preaeury by w4rrants and the w4rr4nts are iscued aad 

F 

d, does the State Treaeurer 

have ,any urther responsibility fob %ike 

money withdramt 

‘(8) If.;‘yonr 4nswer to question lie. 

1 IS In the aff%matjlve, ahould the warrante for plao%ng the (!50~oi30 Sn the 

Huntsville banks be s&is payable to the 

Texas Prison 8ystem or to the auntsvllle 

J&X& and Trust Qomysny, Runtsoille, Tex88, 

and the Birst Ration41 Rank, Huntsville, 

Texas, Par credit to the Prison Industrial 

Revolvine; $naB? 

C(e) If your answer to question lo. 1 

is In the negative and the present plan is 
contimmd 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 

prloon 6yst4m ia '@un6wsllcr Tea88 

of m.fty Thouspoa BoZlars (~0#000J, 

or 40 4wh there& 88 84ay be weemaorp to crsate a fund of Pifty !#hans8nU Pollars ( 0,oao) to be known a8 

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 oaah ef all 

equal alwunt4 lntfie~~~tnillel~ 

and Trunt Company at iiudo*Zlle~ Rm44, 

and the Piret llatimal Bank at Sunte- 

,rille, Cexae, and mid baaita shall deposit with t&e @enerU yona(te~ of tbtj 

Prieon system, bonU4 or 06her 4eeurlties to be apprmsd by tho Attterney 

OenereS 4f the State of B-4 4uffident to 444ure said dep44ft.4 

243 
244 

nonorable Charley Lockhart - Page 6 

It is the opinion of this department that 

your questions should b0 answersd as hereinafter 

etated, observing for convenience sake the nu&erlug given by you. 

1. Question NO. 1 should be answered in the 

affirmative. Section 1 Of the Act in question authorising the State Treasurer to create the revolving fund 

requires him to create the same out *of money received 

by him from the General Kanager of the Texas J?rieon 

System out of money eaxned by 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 created with Treasury 

general caeh. This mistaken method should be eorreoted in the manner indicated by this answer. 

2. The Prison System would have authority 

to use the revolving fund for all lawful purposes, but 

not by *drawing checks against* it as a depositor would. 

Seotion 4 of Ii* 3J. Ilo. 78 declareat 

"Payment Ipade from the Induotrial devolving fund shall be mpde 

upon duly autbentiooted oertiticate by the G+eral &tanager of the 

State Prison System and shall be 

paid by the State Comptroller of 

Public Aaoounts by proper warrants 

drawn on said fund as now rewired 

by law for the payment of other 

charges a&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 authority and n0t to 

be checked out upon the check of the State Prison Syetern or any representative of the Syiystem. 

3. Vouchers submitted to the State Gomptroller and the warrants b884d thereon should be in the nam 

of the person entitled to payment from such fund. The 

vouchers need only to be properly authenticated by the 

priscm System to authorize such payment. 
245 

Honorable Charleg Loc~khart * Page 6 

4. If by svarrantss in oonneation with your 

question 4, you refer to warrant4 issued to or for the 

benefit of olainmnts for sales to the Prison System, 

this question is ansvored by what we have said in ans4er to question 3. 

If, however, the word swarrantss is used in 

this question 4 as indicating the means of oreating or 

restoring the de leted x&ni4um 4um of the Revolving Fund, 

our answer to th P s question 14 that the 4453 8h0uia be 

in favor of the deposit&e banks for deposit by State 

Treasurer Industrial Revolving puad Texas Prison System. 

0. Any authorized adsdnietrative officer of 

the Prison System who approves, or otherwise authorize4 

and induoes the exeoution aM paymentof a warrant out 

of the Revolving Bund when no valid olaim exists therefor, would be oirilly liable for aa,y lose thereby to 

the Btate of Texas directly, or by aubro:ation to sny 

other person or offioer who had been compelled to pay 

euoh a loss. Of oourae, any person invoking the dootrine of subrogation or 4eekWig a recoupment or lndemndty An auyw%se would himself have to be free from any 

negligence or oulpabillty whatever in respect to the 

sdsapplioation of the fund. 

G. This question need 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 oontinue with respect to the Revolving Fund 

until the 4ame has been lawfully paid out to proper 

olainmnts, or otherwise fully aocountad for. In other 

words, the Revolving Fund iteelf 14 publio money in 

the posseosion of the State Treasurer to be disbursed 

and aooounted for as other public funds Oosdng into 

his hands. 

8. Thfs question has already been answered 

in this reply, to the effect that the instruments of 

deposit should be payable to the'respeGtiVc dopoeitee 

banks. 

9. This question need 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&ate Goorptroller 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 p4yrPent of 4eidroWmr.4 

ThbmathodofdAPlburMsn4atefthoFuxldb 

apparentl.yinoonfl%io8 oithwhattehae 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, 'pB ds 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 oonatitiatifmal nqalmment4 anb 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 an r rueted by law. * 0 e 

l EYen if the item wh ic h is uig nb 

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 fj6 of 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