-._ 

## TEE ATJYORNEY G&& OF ?rExAs

AUETIYN~~.TIEXAE

February 35, 1952

Hon. John Ii. Winters IfxecutiVe Director State Department of Public Welfare Austin, Texas Opinion Ror V-1413
Ret Authority of WacoState Hometo participate in Board Local Fundappropriations andIn the Special Reserve Account, and authority to transfer funds between line item appropriations madeto the Homefor the Dear Sir: ;;ey;; ending August 9
. Youhave requested an opinion of this office on the several questions detailed below pertafnlng to the appropriations madeto the WacoState Homefor the biennium ending August 

### 31,1953.

In 

### 1949the Legislature transferred the management and control of the WacoState BP meto the Board for State Hospitals and Special Schools from the Board of Control. H.B. 1, Acts Xst Leg., B.S. 

### 1949,ch. 

### 316, 8' 

### 588(Art. 3174b, V.C.S. 1. As a consequence the oard was In control of the WacoHomeat the time of passage of the appropriation bL11 by the 52ndLeglslature, and all financial provlsions relating to the Home in the general appropriation bill for the biennium beinnin September 1 

### 1951and ending August 31, 1953 7H.B. 

### 626,Acts 52nALeg are couched In terms of ., B.S. 1951, ch. 499, p. 1228) authority to be exercised by the Board.However, the managementand control of the WacoState Romewas transferred from the Board to the State Department of Public Welfare by the 52ndLegislature, effective October 1, 19? H.B. 540 Acts 52nd Leg., R.S. 

### 1951ach. 

### 485,PO 66 (Art. 325$b, V.C.S.)

.

This transfer has raised manyquestions pertaining to fiscal operations of the WacoState Homefor the remainder of this 

### biennium. Adetermination of the authority nowvested in the Department of Public Wdfare, &/ TheBoard for State Hospitals andSpecial Schools will hereafter be referred to as the Board.Hon. John 8. Winters, page 2

and that which remains in the regard to the WacoState Home mainder of this biennium will these problems. (V-1413)

Board, if any with finances for 4he reeliminate manyof

vides: Section I of HouseBill 540, suurq, pro-

“Effective ‘the first day of the month after this Act becomes law, the management, government,~~

and control of the WacoState Home, Waco, Texas transferred from 4 shall be and are hereby heBoard of Texas State Hospitals and Special Schools to the State Department of Public Welfare and all other facilities hereafter established by the State for the care and education of dependent andneglected children shall be under the control and managementof the State Department of Public Welfare.

“The State Department of Public Welfare shall succeed to and be vested with all the rights, powers, duties, facilities, personnel, records and appropriations now held andwhich wili be appropriated for the biennium beginning September 1, 195l by the Board for Texas State Hospitals andSpecial Schools for the ear6 of-dependent and neglected children nowin, or whomayhereafter ;zx;;mmltted to the Waco State Home, Waco, SW The critical provision above Is the sta ementthat “The State Department of Public Welfare .2 shall succeed to and be vested with all the w, powerg, dutleg,

. . . and~aunroDrlat1 m go held D

. . by the Board-for Texas State Hospitals and Special Schools for the children

. . .n3 care of dependent andneglected

It will be noted that this Act transferred the rights, powers,.dutles, and appropriations “~pk! j&#’ by the Board. Tt is therefore essential to determkng the momentin time contemplated by the words
y The State Department of Public Welfare will hereafter be referred togas the Department. y Emphasis~added,throughout. i ,Eon. John H. Winters, page 3 (V-1413)

%ow held” sowe can ascertain what rights powers, and duties were held by the Board at that {Ime.

In the early case of Fisher

. Silaon. 95 Tax. 234, 66 S.W. 447 (1902) it Is heli that the word

“now” In an Act providing for notice of sale as “now required by lawn meant that notice was to be given In the mannerrequired by law at the time the Act In question became effective. Applying this rule to the facts before us, wefind that the provisions of House Bill !%Obecame effective on October 1, 19%. Therefore, the problem for determination Is the rights, powers, duties and appropriations held by the Board on October 1, 1951.

The provision transferring appropriations

“Which will be a proprlated for the biennium beginning September 1, 198” could Indicate that the “now held” provision related to someother appropriations made prior to September & 199. This seeming inconsistency is explained by the hact that the bill contained an emergency provision, Indicating that it was contemplated that the bill go into effect immediately, which would have been prior to September 1, 195l. However, the Senate passed the bill fiva vote, and, under the provisions of Article III, Section 39 of the Texas Constitution the Act could not become law qtil 90 days after the adjournment of the Legislature. The result of this enforced wait Is that the transfer of approprlatlons @‘nowheld” and “appropriations which will be appropriated for the biennium beginning September 1, lm” are synonymous terms.

Finally, It must be noted that the rights, powers, duties, and appropriations transferred were those held by.the Board for the care of dependent and neglected children. This did not transfer rights, powers, duties, and appropriations held by the Board, the exercise of which, with regard to the Home,would affect other institutions which remain under the jurisdiction of the Board. That the Legislature took from the Board only those rights, powers, duties, and appropriations which the Board held or exercised on behalf of the Homealone Is clear from a reading of the whole Act, including the emergency clause. There was obviously no Intent to give to the Department any form of authority which, in Its exercise, would in somemanner affect Institutions other than the WacoHome.

it/ The act became law on September 7, 1951, the 52nd Legislature having adjourned on June 8, 195l.

### Hon.JohnB. Winters, page 

### 4 (V-1413)

With the above holdings in mind, wewill nowturn to your specific questions.

Will the WacoHomebe eligible for the $36,5Ot*appropriation madeto it for the 1952- 

### 53fiscal year In Line Items 

### 30,31,and 32, all of which comefrom the Board Local Fund? H.B. 

### 426, Acts 52ndLeg., B.S. 195l, ch. 

### 499,p. 1273.

You state that the Comptroller of Public Accounts Is of the opinion that you cannot share in the Board Local Fundduring the 1952-53 fiscal year since you will not be under the jurisdiction of the Board at any time during that fiscal year. Wehave reached a diiferent conclusion. TheAct transfers to the Department all rights held by the Board on behalf of the Homeon October 1 rights held for the Homeon thai 195l.. Oneof the date was the right given by the appropriation bill (H.B. 

### 426)to share Znthe Board Local Fundto the extent of $36,500 in 1952-53. This right is nowheld by the Department on the Home’s behalf andthe HomeIs entitled to that amountat the proper time.

At the sane time it mustbe pointed out that one of the duties placed upon the Board on behalf of the Homeby the general appropriation bill is the duty of placing enumerated local funds in the Board Local Fund. This duty has nowpassed to the Department, and it is still required that the proper local funds of the Homebe placed in the Board Local Fundandnot in someother local fund. Sec. 10, Art. II, H.B. 

### 426,suura, at p. 12%.



### 2. Would the WacoState Homebe eligible to share in the $600 000 Special Reserve Account created by Section 9a oh Article II of HouseBill 

### 426 (pa 1294) if the need arose for emergency funds?

OnOctober 1 

### 1951,the Board held on behalf of the Homethe &ht to share in the Special Reserve Account if the necessity for it arose. This right was transferred to the Department, and it now holds this right on behalf of the Home. However, the decision of the necessity for funds andthe anou& to be received by each is held by the Board on behalf of all hospitals and special schools. Therefore sinzthe use of the power would affect all institutions under Its jurlsdictlon the Board still retainsI

Hon. John H. Viatars, page 5 .(V-l413)

the right of determlnlng the need for and extent to which the WacoHomemayparticipate In this fond.



### 3. Maythe Department transfer funds from one line Item appropriation to the other and specifically from General Revenue Fundline igems to Board Local Fundline items and from Board Local FundItems to General RevenueFuuditems?

Section 

### 7 of Article II, House Bill 

### 426 (p. 1293) gave to the Board authority to maketransfers between line item appropriations of institutions, between line item appropriations of the Central Office, andbetween institutions. Att’y Gen. Op. v-1305 U95l.j. The authority to transfer between line items of the appropriation to the Homewas one of the powers transferred to the Department since the exercise of this authority has no effect upon other institutions. However, the other two types of transfers must still be madeby the Board.

There .ls no restriction upon the manner of transfer between the line item appropriations to the WacoHome. Section 10(d) of Article II, House Bill 

### 426 (p. 

### 1295)provides:

“(d) All items herein appropriated to the several Institutions Including the Central Office, for bond premiums, post office box rent, land rental, postage, telephone, telegraph, heat, water, light, power, travel expenses maintenance of structures and eqcipmen8 Fund. , shall be paid from the Board Local

It is further provided that the items herein enumerated shall not be supplemented from any other funds appropriated in this Article, except as provided in Section 7(a) and (b) and Section 

### 9,as provided In this Article .v The exception provided is that nofunds appropriated for these items shall be supplem ted from any other funds appropriated In this Article F except through Sections 7(a) and (b) and Section 

### 9,relating to the

2/ up., Artlcle~ II, dealing with eleemosYnarY instltutions. / : ‘i .__.II

Hon. John H. Winters, page 

### 6 O-1413)

transfer and Special Reserve Account provisions. Therefore there Is no limit upon the 

## ametmt of funds thag maybe placed In anyline Item account, either from general or local funds so long as the funds are placed in the accouni by a transfer between line Items or by reeelpt of additional monry fromthe Special Reserve Account.

4.~ Maythe Department create newItem classlflcatlons and transfu appropriations into such newelasslficatlons?

Theauthority to maketransfers Is only 

### rorthe purpose 

### oftransferrIng between L-ine Items. There Is no authority to ereato new Item classlflcations* If the item desired does not fall wlthln one of the present classlflcatlons, it cannot be purchased.


### 5. Whenthere has been a transfer of General Revenue or Board Local funds from one line 

### itemfund 

### toa line item fund of opposite origin, what fund should be charged whenthe transferred money Is expended?

Whena transfer is made, there should be a bookkeeping transactioh removing the amountfrom the line item fund from which It is transferred and placing it to the credit of the line item fund to which it 1s being transferred. Whenthe noney is expended, it must then be charged to the ltie item account which gives the authoriiation to spend the moneyfor the article In question. ~xhefact that the funds originally cam6from 

### GeneralRevenue or Board Local Funds Is of no s$gnificance after the transfer Is made.

H.B. 5%) Acts 52nd Leg., B.S. 195l, ch. 485, p. 880 (Art. 3255b, V.C.S.), transferred to the State Department of public Welfare all rights j .powers, duties, and appropriations held by the Board for State Hospitals and Speclal’Schools on behalf of the WacoState,Home OROetobor 1, 1951.Hon. John H. Winters, page 7 (V-1413)

The right to receive $36,500 from the Board Local Fundfor the 1952-53 fiscal year (H.B. 426 ch. 499c p. 1238Acts 52ndLeg., R.S. 195l, at p. 1273) was transferred o the Welfare Department. The right to participate in the $600,- 000 Special Reserve Account (H.B. 426, p. 1294) was transferred to the Welfare Department, but the Board retains the power of deciding who shall participate and to what extent, since this is a power 4o be exercised on behalf of all eleemosynary lnstltutIons.TheWelfare Department has authority to maketransfers between line Item approprlations to the WacoHome(H.B. 426, p. 1272) but has no authority to create newItem classlficatlons. Whenmoneyis expended it must be charged to the line item appropriation that authorizes the expenditure, and the fact that the moneyoriginally came from General Revenue or the Board Local FundIs of no significance after the transfer Is made.
APPROVED: Yours very truly
C. K. Richards PRICEDANIEL Trial &Appellate Division Attorne~y General
E. Jacobson Reviewing Assistant Charles D. Mathews First Assistant By(r‘wrti E. Wa Thode Assistant EWT:wb