# TheAttorney General ofTexas
December 18, 1978 JOHN L.HILL Attorney General
Honorable John J. Kavanagh, M.D. Commissioner Texas Department ofMental Health and Mental Retardation P.0. Box12668 Austin, Texas 78711 Dear Commissioner Kavanagh: Opinion No. H- 1290 Re: Deposit and use of funds received for genetic counseling services.

You have requested our opinion regarding the deposit and use of funds for genetic counseling services. Section 2.25 of article 5547-202, V.T.C.S., authorizes the Texas Department of Mental Health and Mental Retardation to charge for genetic counseling services provided under

the authority ofthis Act at arate not to exceed the actual cost of providing such services. The proceeds from such charges shall beretained and utilized bythe department for the continued provision of such services. You state that the Denton State School, adepartment facility, receives funds under section 2.25 from community mental health centers, from other departmental facilities, and from individuals. Genetic counseling services are generally provided on an outpatient basis. You ask whether section 2.25 empowers the Denton State School to deposit funds received thereunder ina local depository. Article 3179,V.T.C.S., applicable tothe Denton State School, inter alia, provides: AR funds of every character received by or

belonging to the institutions, other than money appropriated for their support from time to time by the Legislature, shall as soon asreceived, bepaid over to the State Treasurer by the Board, superintendent or other person receiving them. The Treasurer shall place such sums to the credit ofthe general revenue fund.



### P. 5088Honorable John J. Kavanagh, M.D. - Page 2 (H-1290 1

Itmight be argued that article 3179,byrequiring the deposit ofall such funds inthe State Treasury, irreconcilably conflicts with section 2.25 of article 5547-202. Article 3179,however, applies only to unappropriated funds, andit seems clear that all moneys collected under section 2.25 are appropriated. In section 3h ofarticle IIof the current appropriations act, Acts 1977, 65th Leg., ch. 872, at 2804, allproceeds from the operation ofout-patient clinics bythe Denton State School are, with a single nonrelevant exception, reappropriated to that institution:OUT-PATIENT CLINICS. (11The State agencies named in

this Section are authorized to charge for treatment and medication to patients treated on an out-patient basis at rates not to exceed the actual cost. An additional charge may be made for medication dispensed to patients at arate not to exceed the cost tothe State. (2) Proceeds from the sale of medications and from treatment are hereby reappropriated to the respective outpatient clinics orinstitutions. (3)As an exception to the General Provisions ofthis Act relating to reimbursements and payments, it is expressly provided that the moneys received by the Department of Mental Health and Mental Retardation and the Department of Health Resources, from interagency contracts with the Department ofPublic Welfare under Title XIXofthe Social Security Act, are to be considered pay-patient collections and deposited inthe General Revenue Fund. ln addition, section 26 of article V appropriates to the relevant agency reimbursements for authorized services received from another state agency:

REIMBURSEMENTS AND PAYMENTS. Any reimbursements received by an agency of the State for authorized services rendered to any other agency of the State Government

...are hereby appropriated to the agency of the State receiving such reimbursements and payments for use during the fiscal year inwhich they are received. The reimbursements and payments received shall be credited

...to the agency’s current appropriation items or accounts from which the expenditures oflike character were originally made.

... Thus, outpatient moneys collected by the Denton State School from individuals and from community mental health centers are reappropriated to the agency by section 3h of article IIof the appropriations act, while funds received from other departmental facilities are reappropriated under both that section and section 26ofarticle V. As aresult, since article 3179has no application to these

P. 5089Honorable John J. Kavanagh, M.D. - Page 3 (H-1290)

particular funds, section 2.25 of article 5547-202 prevails, and the Denton State School should retain andutilize funds collected for genetic counseling services “for the continued provision of such services.” By deciding that these funds may be deposited inalocal depository, we need not decide whether they are considered to be “inthe state treasury.” SUMMARY

The Denton State School is authorized to deposit funds received forgenetic counseling services, pursuant to section 2.25 ofarticle 5547-202, V.T.C.S., inalocal depository.

/$i$g~& cL/y General ofTexas

DAVIDM-KENDALL, First Assistant

Opinion Committee jsn



### P. 5090