August 31, 1965 

Honorable John H. Winters Opinion No. C-495 

Commissioner of Public Welfare 

John HO Reagan Building Re: Authority of the State 

Austin, Texas 78731 Department of Public 

Welfare to continue to 

operate under the Merit 

System Plan for employees 

of the State Department 

Dear Mr. Winters: of Public Welfare. 

You have requested our opinion on the following question: 

"Is the State Department of Public Welfare 

authorized to continue to operate under the Merit 

System Plan in accordance with its agreement with 

the Federal Government?" 

You state in your request that the Comptroller of Public 

Accounts is taking the view that the 59th Legislature failed to 

provide for merit salary increases by deleting the words "merit 

salary increases" from the provisions of the General Appropriation 

Act authorizing salary adjustments in accordance with agreements 

with the Federal Government. 

House Bill 86, Acts of the 58th Legislature (General 

Appropriation Act for the biennium ending August 31 1965) provides 

in a rider to the appropriation for the State Department of Public 

Welfare appearing at page 111-186 of the bill: 

"Salary adjustments and merit system lncreases shall be governed by agreements with 

the Federal Government provided, however, that 

such agreements do not exceed the provisions 

in this Act governing the operation of the 

State Employees Classification Plan." 

The above quoted rider appears In the appropriation to 

the State Department of Public Welfare for the biennium ending 

August 31 1967, at page 111-161 of the General Appropriation AC; 

of the 59th Legislature, House Bill 12, Acts of the 59th Legislature, Regular Session, 1965, reading as follows: 

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Hon. John Ii. Winters, page 2 (c-495) 

"Salary adjustments within designated salary 

ranges for classified employees of the Department 

of Public Welfare shall be governed by agreements 

with the Federal Government pursuant to federal 

standards for a merit system of personnel administration. notwithstanding any other provisions of 

thistovided, however, that authorized positions in both 

the State Classification Plan and in line-items 

may be filled by two half-time employees each or 

by part-time employees on a proportional basis 

should the State Commissioner of Public Welfare 

find that the necessity therefor exists. Appropriations for personal services and for other 

expenses may be used for the training of personnel 

whenever the Board of Public Welfare deems such 

training expense essential to the public service." 

(Emphasis added) 

The use of the Merit System by the State Department of 

Public Welfare was first authorized in 1941 when the Legislature 

enacted Article 695c, Vernon's Civil Statutes, and has continued 

to date. Attorney General's Opinion C-172 (1963). The Position 

Classification Act of 1961 (Article 6252-11, Vernon's Civil 

Statutes) provides that all Merit Systems authorized for certain 

State agencies which operate under employee Merit Systems as a 

condition for qualifying for federal grants-in-aid "as have been 

made or may hereinafter be agreed to by the respective State 

agencies and agencies of the U. S. Government shall be in full 

force and effect, subject only to the applicable laws of this 

State." In construing the provisions of Articles 69% and 

6252-11, Vernon's Civil Statutes, together with the above 

referred to rider contained in the General Appropriation Act 

for the biennium ending August 31 1965, it was held in Attorney 

General's Opinion No. C-172 (1963): 

"A consideration of all of the foregoing factors 

leads us to the conclusion that the Legislature was 

well aware that the Department's operation is substantially affected by agreements with the Federal 

Government, and that it recognized the condition 

of a Merit System in order to qualify for such 

grants-in-aid. 

"Further, in viewing the Classification System 

broadly aa a plan to place all State employees of 

a same class on an equal basis as far as possible, 

we are unable to perceive how the continuation of 

the agreements with the Federal Government will 

violate this principle with the factin mind that 

the Department is already at a comparative disadvantage salary-wise. 

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Hon. John H. Winters, page 3 (C-495) 

"Therefore, in consideration of all of these 

factors, it is our opinion that the Department's 

agreement as set forth in the question presented 

is authorized and that a continuation of the Merit 

System is authorized." 

It is our opinion in view of the foregoing that the 

provisions of the Appropriation Act of the 59th Legislature for 

the biennium ending August 31, 1967, providing that salary 

adjustments for classified employees of the Department of Public 

Welfare shall be governed by agreements with the Federal Government pursuant to federal standards for a Merit System of personnel 

administration, authorizes a continuation of the Merit System in 

accordance with the Department's agreement with the Federal 

Government. Furthermore, the pre-existing law, Article 695c, 

Vernon's Civil Statutes, and the Position Classification Act of 

1.961. (Article 6252-11, Vernon's Civil Statutes) supports such 

rider. 

Senate Bill 563 Acts of the 59th Legislature Regular 

Session, 1965, Chapter 343, page 739, is an act permitting certain 

Departments and Agencies to grant merit salary increases as provided therein. Sections 1 and 5 of Senate Bill 563 provide: 

"Section 1. It Is expressly provided that 

Departments and Agencies having appropriations 

for classified salaries and wages, may in addition 

to the salary adjustments described In Article V 

of House Bill No. 12, 59th Legislature, grant merit 

salary increases in recognition of 'meritorious 

service' as provided herein. 

"Sec. 5. This Act shall become effective on 

September 1, 1965, and shall cease to have any 

force and effect after August 31, 1967." 

It is noted that the salary adjustments authorized by Senate Bill 

563 are "in addition to the salary adjustments described in 

Article V of House Bill No. 12, 59th Legislature" General Appropriation Act for the biennium ending August 31, 19 fi 7) and in no 

manner affects the Merit System of the State Department of Public 

Welfare. On the contrary, it is merely an authorization for 

merit salary increases in addition to those authorized by the 

General Appropriation Act and merit system agreement of the Department. You are therefore advised that the State Department 

of Public Welfare may continue to operate under the Merit System 

Plan in accordance with its agreement with the Federal Government. 

The foregoing is also applicable to the Texas Employment 

Commission, the State Health Department and any other State Agency, 

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- - 

Hon. John H. Winters, page 4 (C- 495) 

Department or Board that operates under the Merit System Plan 

agreement with the Federal Governme'nt. 

SUMMARY 

The State Department of Public Welfare may 

continue to operate under the Merit System Plan 

in accordance with its agreement with the Federal 

Government. Article 69% and Article 6252-11, 

Vernon's Civil Statutes. House Bill 12, Acts 

of the 59th Legislature, Regular Session, 1965. 

Attorney General's Opinion C-172 (1963). 

The foregoing is also applicable to the Texas Employment Commission, the State Health Department and any other State 

Agency, Department or Board that operates under the Merit System 

Plan agreement with the Federal Government. 

Yours very truly, 

WAGGONER CARR 

Attorney .General 

John Reeves 

Assistant 

JR:mcn 

APPROVHD: 

OPINION COMMITTEE 

W. 0. Shultz, Chairman 

Ralph Rash 

Ivan Williams 

Roger Tyler 

J. C. Davis 

APPROVED FOR THE ATTORNEY GENERAL 

BY: T. B. Wright 

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