Hon. George W. McNeil 

State Auditor 

Opinion No. M-1175 

Sam Houston State Office Bldg. Re: Whether the Texas Credit 

Austin, Texas 70711 Union Department is subject to the provisions of 

Article 6823a, Vernon’s 

Civil Statutes (the Trave 

Regulation Act of 1959)) 

Dear Mr. McNeil: and related question. 

Your recent letter requesting the opinion of this 

office concerning the referenced matter states, in part, as 

follows : 

“In connection with our regular audit 

work at the Texas Credit Union Department 

we have observed that their current practice, 

with respect to the payment of a partial per 

diem allowance of either $3.00 or $5.00 to 

certain employees while working in the cities 

designated as those employees’ headquarters. 

We are told that such partial per diem allowance is in lieu of in-town mileage, meals and 

other incidental travel expenses, and that the 

practice, with varying amounts and work areas, 

dates from the inception of the Department in 

1969. We have also observed that employees 

traveling in areas outside their designated 

headquarter cities, but within the State, 

receive a per diem allowance of $18.00 plus 

lO$ per mile for the departmental use of their 

personally-owned automobiles. 

“The views of this office, which are 

based in part on the conclusions expressed 

in your Opinion M-978, October 20, 1971, and 

the practices of the Credit Union Department 

differ as to whether or not sufficient authority now exists for the use of departmental 

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. .r . 

Mr. George W. McNeil, page 2 (M-1175) 

funds in this manner. We desire the opinion 

of your office with respect thereto. 

“More specifically, is the Texas Credit 

Union Department subject to Article 6823a, of 

Vernon’s Civil Statutes, referred to as the 

‘Travel Regulations Act of 1959’, even though 

its funds are maintained apart from the State 

Treasury? 

“If the answer to the foregoing question 

is affirmative is the Texas Credit Union 

Department subject to the mileage and per 

diem rates specified in the General Provisions 

of the current General Appropriations Act?” 

The Texas Credit Union Department was established in 

1969 by Article 2461-38, Vernon’s Civil Statutes. The Texas 

Credit Union Commission was simultaneously created. Article 

2461-38 transferred the jurisdiction, authority, powers, and 

duties theretofore conferred on the Banking Commission, in 

relation to credit unions, to the Credit Union Commission and 

Department. 

Articles 2461-44 and 2461-47 provide for the compensation and expenses of the Credit Union Department. Section (f) 

of Article 2461-47 provides, in pertinent part, as follows: 

11 

. . . Notwithstanding anything to the contrary contained in any other law of this state, 

all fees. nenalties, charges. and revenues -~ 

collected by the Credit Union Department from 

every source whatsoever shall be retained and 

held by said department, and no part of such 

fees, penalties, charges, and revenues shall 

ever be oaid into the General Revenue Fund of 

this staie. All expenses incurred by the 

Credit Union Department shall be paid only 

from such fees, penalties, charges, and 

revenues. and no such exoense shall ever be 

a charge’against the funds of this state. . . .” 

(Emphasis added). 

* All reference to Articles are to Vernon’s Civil Statutes. 

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Mr. George W. McNeil, page 3 (M-l 175) 

It is apparent that none of the travel expenses of 

the employees of the Credit Union Department are paid from 

the State Treasury pursuant to the provisions of any General 

Appropriations Act. 

Section 2 of Article 6823a (the Travel Regulations 

Act of 1959), states, in part, as follows: 

“The provisions of this Act shall apply 

to all officers, heads of state agencies, 

andate employees. . . .” (Emphasis 

adde;r) . 

That Act then goes on to set certain standards and criteria for 

the payment of travel expenses of State employees. 

The gravamen of your first question is, therefore, 

whether Articles 2461-38, 2461-44 and 2461-47 remove the Credit 

Union Department from the Travel Regulations Act. 

In construing Article 6823, the predecessor of the 

Travel Regulations Act, it was held in Attorney General’s 

Opinion No. O-4628 (1942) that Article 6823 applied only to 

the travel expenses of agencies and departments covered by the 

General Appropriations Act. 

Moreover, Attorney General’s Opinion No. WW-1053 

(19611, in construing the Travel Regulations Act, specifically 

held that 

“Since such employees are not being 

reimbursed for such travel from authorized 

amounts in the General Appropriations Acts, 

and are being compensated for their travel 

by non-state agencies only, such compensation, from local funds, does not violate 

Section 8 of the Travel Regulations Act of 

1959, as the Travel Regulagions Act is only 

applicable to funds appropriated by the 

Legislature.” (Emphasis added). 

See also Attorney General’s Opinions Nos. O-5589 (1943), 

O-6066 (1944)) WW-1095 (1961)) WW-1222 (1961), and WW-1262 (1962) 

for similar holdings. 

In light of the ample precedent afforded by the foregoing Opinions of the Attorney General, and the acquiescence of 

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. _ . 

. - 

Mr. George W. McNeil, page 4 (M-1175) 

the Legislature in such construction, we hold that the travel 

expenses of employees of the Texas Credit Union Department are 

not subject to the provisions of the Travel Regulations Act, 

inasmuch as the expenses are in no way paid with funds appropriated in the current General Appropriations Act. 

You are further advised that the travel expenses of 

employees of the Credit Union Department may be paid pursuant 

to Section (f) of Article 2461-47, as that Section is the necessary 

pre-existing law authorizing the payment of such expenses. 

Inasmuch as your first question has been answered in 

the negative, it is not necessary for us to answer your second 

question, as same was predicated only on the basis of an affirmative answer to your first question. 

SUMMARY 

The travel expenses of employees of the Texas 

Credit Union Department are not subject to the 

provisions of the Travel Regulations Act of 1959, 

Article 6823a, Vernon's Civil Statutes. 

Very.&ruly yours,n 

c~Gg&&R[Nb?E 

Attorney General of Texas 

ii 

Prepared by Austin C. Bray, Jr. 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Kerns Taylor, Chairman 

W. E. Allen, Co-Chairman 

James McCoy 

Michael Stork 

Jim Swearingen 

Scott Garrison 

SAMUEL D. MCDANIEL 

Staff Legal Assistant 

ALFRED WALKER 

Executive Assistant 

NOLA WHITE 

First Assistant -5743-