OFFICE OF THE ATI’ORNEY **GENERAL** OF **TEXAS**
**AUSTIN**

Eon. Tom C. King **State** A@ltor and Elilolenoy l%xpert Austin, Toxar

Dear Slrt

we **60knowi0age** 1939, asking for o Appropriation Aot so6elOn, p. 93918) after set out. ienoy warrants against ipets& revBnue6.

lt?tterof November 9 Z(a) Ch. 444 Camerai neral Lews, regular io quastionsherelna in the lnstltutisn**0r** the two risoal years ending 19'36,end August 31, 1939 hsmise appropriated r0r ei

**inrtitutiom during**  ‘oaohor the rald **ri006l** ream, reispootival~.*Hon. To41C. King,page 2

Your quaatlona are 04 follcm4r
y(l) Arc suoh Institutionsempowerad to laaua 'dafloiencywarrants' agalnct antlolpatad revenues to suoh funds?
"(2) Ara the7 empowered to bind such antlolpatadrayanuos on notes payable for the purchaseprioa of equipment and/orproperty Insurance,whore thematurity dates of the notes extend oyar a period of three yaar81W

The Laglslaturawas wall within its prarogatlya In making the further appropriation ot balances in addition to the spaolfio approprlatlonsstated in the act. The addltlonsl appropriation is sufiioiently spoolflo within Itself to mast the raquiramentsor the Constitution. (Seaour opinionNo. C-1661 addressed to you). It will be soon from a reading of Sac. 2(a) that all balances in the rospactlva institutions, including balancesIn their rarolvlng funds at the time, end the entire Income to said funds during each of the years named, have bean appropriated. Those WbalanoosRand tha 'lrl0om0'

obrlousl7~portalnto sntiolpatad raoalpta, for it could not be aotlnltalyknown ln adyanoawhether then would be suoh balances or lnooma.

That an appropriationmay rightly sot a pert anJ. tiolpatad raoaipts is no longer an open question In this state.
Forgusony. Johnson, 51 2. A'.(2) 372 Involved the right of the Laglslaturato appropriate, or parhapsmore accurately stated the right of the Highway Cozmission to contraot, upon tha basis of antlolpatad receipts in thamattar of oonstruotlnghlghwa78 to the extent of about $S,OOO,- 000.oo
. The plalntlfi*8oontantion was that suoh antlolpatad funds ware not Wands arailabloC within the statute of oontraotual power of the Commis8ion. (Vernon'sAnnotated Civil StatutesArts. 66746 (6674q-4), 66740 (66749-53,end 66741). chi0r matioo u0ci0naon, writing ror the court sala:

'*Fundsarallabla~ as marking the bounds OS the Cozal.88lon~soontraotual llsblllt~ oroatlng authority for *highway improvements*can, wa think, mean but one thing, namaly, funds made avall-Hon. Tom C. King,paga 3

able for that purposeby the Laglslatura throu h appropriation.x * * Ii this item 7axpeotanoy)oannotbe contrectaa againstuntil paid into the treasury, it xould be naoasaary to aocumulate an additional sum equal to the entire avaflabla Yadaral ai fun4 bOlor8 that fund could be contracted afalnst. * * * The departmentmust oaaplata construction contractedagainst this tuna prior to the and of tha Federal flsoal year (Juno 30, 19JJ) otherwise the appropriation lapses. l l * Those approprlatlona (of revenues derived from Fadoral taxation) are nomore gratuities then any other authorized Tadera appropriation, and -khanalloceted to a perticuler sLata are a6 1av6ilabla~as any other **‘ fund** * for ap?ro>rlata contrectual purposes.*

The court hold tta antloipatadrecal?ts to co the proper eubjeot of a?proprlationand that they viera upon sooh appropriation wfunda arallabla* foruse or the liighwaydapartmant.

Now the word RZundw or “funds*has no fired meaning applicabla alike to ovary situation,but its real meaning la to be determined according to the familiar rule of statutory construction in tha light of the oontext and the assooiatad words:wlth which it 14 azploycd. In ths aoxmaotion hero used,
as indloetad in the Farguson-Johnsoncase, it is not limltad to actual cash in hand but iaused in the more aosfiprahansiva
sense as oovsring not onlymoneys but sacurltles and properties of a nature to be or to baooma usable In connection %lth the epproprlatlon. The *lnstltutlonalfunds* and thebalances and inooma thereof ooatarcplata not only money but the antlclpatad receipts ior the periods stated.

As to the issuance of ~datioianoywerrantsW, those instruments do not create debts, theymerely servo the oonvaniant purpose of avidanclng the liability of the fund for payment ii and when the lnatlttitlon has funds available for cash payment. They are not spaoiallyauthorized by law and .teannothing substantial. wDaficiencywarrant” in this oonnaotlon, Is ffiaraly departma5tal language for "hot chock".Hon. Tom C. IUng, psga 4

There is no reasonwhy the existing llabllity, contingent though it may be, msy not be thus atldanoed.

1. So that, you are sdrlsad this department is of the opinion ymr first question shouldbe answered in tha ariLrmatlr0.

The Constitutionprovides that no appropriationof money shall be made for a longer tern than two yaers. VIII, 880. 6). (Art.

This aaanotbe violated or ignored, The institution thereforehas no right to oontraot upon the basis oi suoh antlolpatad ravanuas bayon the parlod of the appropriation - two years. Itmay validly oontraotupon **the** reasonably antlolpatadraianuas ior aaoh year raspaotlralyof the blennfum, but no further. This oonoluslon is supported by the reasoning in FortWorth Calvary Club Ino. Y. Sheppard, Comptroller, 85 S.W. (2) 960, and by the prinoiplea Of pub110 polloy in general.

2. From the above It follows that question number 2 should be SnBwered, “now.

Vary truly pours

ATTORNEY CRRRRAL OF TEXAS

OS-XR doia Spoor Assistant