Hon. George W. McNeil

State Auditor Opinion No. M-1175 SamHouston 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: andrelated 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 wehave observed that their current practice, with respect to the payment of apartial per diem allowance of either $3.00 or $5.00 to certain employees while working in the cities designated as those employees’ headquarters. Weare told that such partial per diem allowance is in lieu of in-town mileage, meals and other incidental travel expenses, andthat the practice, with varying amounts andwork areas, dates from the inception of the Department in 1969. Wehave also observed that employees traveling in areas outside their designated headquarter cities, but within the State, receive aper 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 nowexists for the use of departmental

-5740-. .r
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Mr. George W.McNeil, page 2 (M-1175)

funds in this manner. Wedesire 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 andper diem rates specified in the General Provisions of the current General Appropriations Act?” TheTexas Credit Union Department wasestablished in 1969 byArticle 2461-38, Vernon’s Civil Statutes. TheTexas 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 andexpenses of the Credit Union Department. Section (f) of Article 2461-47 provides, in pertinent part, as follows:

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. . . Notwithstanding anything to the contrary contained in any other law of this state, all fees. nenalties, charges. andrevenues

-~ collected by the Credit Union Department from every source whatsoever shall be retained and held by said department, andnopart of such fees, penalties, charges, andrevenues shall ever be oaid into the General Revenue Fundof this staie. All expenses incurred bythe Credit Union Department shall be paid only from such fees, penalties, charges, and revenues. andnosuch exoense shall ever be acharge’against the funds of this state.
. . .” (Emphasis added).

* All reference to Articles are to Vernon’s Civil Statutes. -5741-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 2of 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 andcriteria for the payment of travel expenses of State employees.

Thegravamen 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 washeld in Attorney General’s Opinion No. O-4628 (1942) that Article 6823 applied only to the travel expenses of agencies anddepartments 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, andare being compensated for their travel bynon-state agencies only, such compensation, from local funds, does not violate Section 8of 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), andWW-1262(1962) for similar holdings.

In light of the ample precedent afforded by the foregoing Opinions of the Attorney General, andthe acquiescence of -5742-. _ .

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

the Legislature in such construction, wehold 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 nowaypaid with funds appropriated in the current General Appropriations Act.

Youare further advised that the travel expenses of employees of the Credit Union Department maybe 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 samewaspredicated only on the basis of anaffirmative answer to your first question. SUMMARY Thetravel 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 

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Attorney General of Texas

ii Prepared byAustin C. Bray, Jr. Assistant Attorney General APPROVED: OPINIONCOMMITTEE Kerns Taylor, Chairman W.E. Allen, Co-Chairman JamesMcCoy Michael Stork JimSwearingen Scott Garrison SAMUEL

D. MCDANIEL Staff Legal Assistant ALFREDWALKER Executive Assistant NOLAWHITE First Assistant -5743-