‘ . December 22, 1950. 

Miss Doris H. Connerly 

Acting State Librarian 

Texas State Library 

Austin, Texas 

. 

Dear Miss‘ Connerly: 

Your request 

Opinion No. V-1139. 

Re: Fiscal year appropriation from which 

to pay for’ microfilm 

copies of newspapers 

ordered for the State 

Library under 

mitted facts. 

for an opinion reads as follows: 

the sub- 

“For several years, the Texas State Li- 

.._ . brary -has been ordering microfilm copies of 

newspapers. These have been contracted for: 

(1)’ Back files’of newspapers at .fixed 

amounts 

” ,- (2) : ‘. On annual basis so much per foot, 

. : 

paid by the year : 

. . (3) On an annual basis so much per foot, 

paid by the month. 

* “Attached are photostat copies of letters 

which the State Library sends out each year in 

advance of renewal orders that are placed by 

. . the fiscal year. 

“The Texas State Library. is of the opinion 

that there is no difference In these annual orders and those placed on an annual basis for 

newspapers in print and paid for In advance, and 

that~ the invoices covering microfilm orders can 

be paid on the annual basis from funds of the 

fiscal year in which they are placed regardless 

of whether microfilms are received within the 

fiscal year or after the close of”the year, and 

regardless of whether they are paid by the foot 

each month or whether contracted for several 

years of back files at a fixed amount. 
: 

Miss Doris H. Connerly - Page 2 (V-1139) 

"On the other hand, it is the opinion 

of the ComDtrollerts DeDartment. Claims 

Division, 

(1) 

‘. (2) 

Back files of newspapers contracted 

for must be paid for out of the appropriation of the fiscal year in 

which the work was done regardless 

of the fiscal year in which the contract was made 

Invoices can be paid only in the fi'scal year in which the work was actually done when quoted by the foot 

and paid by the month for the reason 

that they are of the opinion, that the 

item of cost is a service or labor 

.charge. 

DYour opinion is necessary on account of 

the conflicting views of the departments. 

Plea& advise which is right." 

bat this is a service charge and 

: -, You:have advised us that the term "on an annual 

basis" contained in your request means.'*on a fiscal year 

basis.” 

Item 15 of the appropriations for the support 

and maintenance of the Texas State Library is an appropriation of Q25,OOO for each fiscal year of the current biennium for l'books, subscriptions, memberships, maps, bind- 

.ing, book repairs, preparation for binding microfilms, 

microfilming." 

pate 1281.) 

(Acts 5lst Leg., R.S. 1949, ch. 615, at 

This office has repeatedly held that supplies 

i&ended for use during a certain fiscal year must be purchased from an appropriation for that year and that an appropriation for one fiscal year may not intentionally be 

used to purchase supplies which are to be consumed during 

a succeeding fiscal year. Att'y Gen. Ops. O-2380 (19401, 

0-6011 (19441, o-6883 (1945). Ho>rever, we have recognized 

that an exception to this rule exists in the case of so- b, . called "capital assets" or supplies which from their nature 

will not be entirely used or 'consumed during a brief period 

of time, but may be continuously used after the year in 

which they were purc&ased. 

0-6011 (1944). 

Att'y Gen. ops. o-2631 (19401, 
. - 

Miss Doris H. Connerly ,- Page 3 (V-1139) 

. ” 

* 

. : 

I~ 

We quote from Opinion o-2631 as follows: 

:. 

"T&cardinal rule is that money appropriated to a department or institution to be 

expended for supplies to be used and consumed 

during a given fiscal year, may not in any 

event be expended for supplies intended for 

use and consumption during another fiscal 

year. As pointed out in our Opinion No. O2380, ourappropriations, while made for two 

years -by the Appropriation Act, are nevertheless specifically for each separate year of 

the biennium. .: : .,. (.... , ~ :: 

. . *. i '. : :. > I: ..> ., .:. 

. :.... ',. : . .. ::. -.: 

.?'With .?'With respect respect fo'those to 'those supplies, or 

I. 

: . 

things which, as you state, might be termed 

Ia capital capital asset of the State', State', the rule is 

that such supply or fixture fixture may be,purchased be,purchased 

and paid for out of the aonropriation aonropriation for any 

'year-of the biennium for i&i& an appropria-- 

tion has been made. Fixtures, equipment and 

supplies whatsoever that do not perish with 

their use, but, which may be continuously used 

after the year in which they are purchased, 

~~ 

are not governed by the identical principles 

applicable to those supplies which are consumed with their use. Thus, machines, fixtures, books, and the like, are not consumed 

during the year they are purchased, but they 

last for many years. Such *capital assets' 

of the State may therefore be purchased and 

paid fork out of the appropriation for any year 

of the biennium for which an appronriation for 

such article has been made. This is true regardless of the year in which the delivery is 

made, since the purchase during the proper 

year amounts to an expenditure or commitment 

of the appropriation for that year. 

"In construing the Appropriation Bill, as 

in construing any other legislative act, the intent of the Legislature governs. When the Legislature has authorized the purchase of equipment or supplies, which are not consumable by 

.use during the year for which they are authorized to be purchased, it is obvious that the intent is not to provide for the operating expense 
I I 

.Miss Doris H. Connerly - Page 4 (V-1139) 

o.f the department for the year,during which 

the appropriation is available for expenditure, but, on the contrary, to provide for 

an addition to the permanent operating facilities of the department or institution. 

Since the reason for the rule announced with 

respect to the type of expenditure involved 

in 0-2380 does not exist with reference to 

this type of exoenditure, the rule, of course, 

does not .apply.i" 

It was-held in~Opinion 0-6011 that the claim 

of a book binder for binding books under authority of a 

requisition issued therefor by the State Board of Control on August 19, 1943, was properly payable from an 

appropriation for such purpose for the fiscal year ending August 31, 1943, notwithstanding~the actual binding 

of the books did not begin until sometime during April, 

.1944. It was further held therein that llbook bindings" 

are "capital assets". within the meaning of -hat term as 

defined in Opinion o-2631, supra; . 

. . . You-have informed us that microfilms of newspapers do not perish with use but may be continuously 

used for many years and will last as long, if.not longer, 

than newspapers printed on paper made fromwood-pulp, 

such as is commonly used for printing newspapers. de 

think such films may be properly classified,as "capital 

assets" of the State'of Texas. Therefore, the answers 

to your questions are controlled by Att'y Gen..Ops. O2631 (1940) and o-6011 (1944). 

In view of the foregoing, it is our opinion 

that the cost of microfilms of new,spapers in each of the 

three instances stated in your request is chargeable to 

and payable from the appropriation contained in Item 15, 

supra, for the fiscal year in which the constracts for 

,such films were made, regardless of the fiscal year in 

which the delivery thereof is made. 

SUMMARY 

Where the Texas Library and Historical 

Commission entered into.a contract for the 

purchase of microfilms of newspapers for the 

Texas State Library, the cost of such microfilms may be paid from the appropriations to 

the Commission for such purpose for tha fiscal year in which such contract was entered 
,. - 

Miss Doris H. Connerly - Page 5 (V-1139) 

. 

into, notwithstanding delivery of the microfilms isnot made until after the-expiration 

of that year. 

APPROVED: Very truly ydurs, 

C. K. Richards 

L Trial & Appellate'Division 

Everett Hutchinson~ 

Executive Assistant 

Charles D. Mathews 

First Assistant 

BWB:wb 

. . . 

-. 

j 

. % 

PRICE DANIEL 

Attorney General of Texas 

h-f=&* 

By .' 

Bruce W. Bryant 

Assistant 

,. .:.. : ‘..