August 31, 1965

Honorable John H. Winters OpinionNo. C-495 Commissioner of PublicWelfare John HO ReaganBuilding Re: Authority of the State Austin, Texas 78731 Department of Public Welfare to continue to operateunder the Merit System Plan for employees of the State Department Dear Mr. Winters: of PublicWelfare.

You have requested our opinion on the following question:

"Is the State Department of PublicWelfare authorized to continue to operateunder theMerit System Plan in accordancewith its agreementwith 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 increasesby deleting the words "merit salary increases" from the provisions of the General Appropriation Act authorizing salary adjustments in accordancewith agreements with the Federal Government.

House Bill 

### 86,Acts of the 58th Legislature (General AppropriationAct 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:

"Salaryadjustments and merit system lncreases shall be governed by agreementswith the Federal Governmentprovided,however, that such agreementsdo not exceed the provisions in this Act governing the operation of the State Employees ClassificationPlan."

The above quoted rider appears In the appropriationto the State Department of PublicWelfare for the biennium ending August 31 1967, at page 111-161 of the GeneralAppropriationAC; of the 59th Legislature,House Bill 12, Acts of the 59th Legislature, Regular Session, 1965, reading as follows:

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### (c-495)

"Salaryadjustmentswithin designated salary ranges for classified employees of the Department of PublicWelfare shall be governed by agreements with the Federal Government pursuant to federal standards for a merit system of personneladministration. notwithstandingany other provisions ofthistovided, 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 proportionalbasis should the State Commissioner of PublicWelfare find that the necessity therefor exists. Appropriations for personal services and for other expensesmay be used for the training of personnel whenever the Board of PublicWelfare deems such training expense essential to the public service." (Emphasisadded)

The use of the Merit System by the State Department of PublicWelfarewas 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 ClassificationAct of 1961 (Article

### 6252-11,Vernon's Civil Statutes) provides that all Merit Systems authorized for certain State agencieswhich operateunder employeeMerit Systems as a condition for qualifying for federal grants-in-aid "ashave been made ormay hereinafterbe agreed to by the respectiveState 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, togetherwith the above referred to rider contained in the GeneralAppropriationAct for the biennium ending August 

### 31 1965,it was held in Attorney General's OpinionNo. C-172 (1963):

"A consideration of all of the foregoing factors leads us to the conclusion that the Legislaturewas well aware that the Department's operation is substantiallyaffected by agreementswith 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 ClassificationSystem 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 perceivehow the continuation of the agreementswith the Federal Governmentwill violate this principlewith the factin mind that the Department is already at a comparativedisadvantage salary-wise. -2340-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 accordancewith the Department's agreement with the Federal Government. Furthermore, the pre-existing law, Article 

### 695c, Vernon's Civil Statutes, and the Position ClassificationAct 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 grantmerit salary increases as provided therein. Sections 1 and 

### 5 of Senate Bill 

### 563provide:

"Section 1. It Is expresslyprovided that Departments and Agencies having appropriations for classified salaries and wages,may in addition to the salary adjustments described In ArticleV of HouseBill No. 12, 59th Legislature,grantmerit 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 

### 563are "inaddition to the salary adjustments described in Article V of House Bill No. 12, 59th Legislature" General Appropriation Act for the biennium ending August 

### 31, fi 19 7) and in no manner affects the Merit System of the State Department of Public Welfare. On the contrary, it ismerely an authorization for merit salary increases in addition to those authorized by the GeneralAppropriationAct and merit system agreement of the Department. You are thereforeadvised that the State Department of PublicWelfare may continue to operateunder theMerit System Plan in accordancewith 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, -2341-- -

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

Department or Board that operatesunder the Merit System Plan agreement with the Federal Governme'nt.

SUMMARY
The State Department of PublicWelfare may continue to operateunder the Merit System Plan in accordancewith its agreementwith 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 operatesunder the Merit System Plan agreementwith 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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