Honorable Preston 

Governor of Texas 

Capitol Building ~^ 

Smith Opinion No, M-782 

Re: Questions relative to disAustin, Texas 78711 

AUSTIN. TEXAS 78711 

February4, 1971 

bursement of Pedera.1 funds 

granted the ,Stat,e pursuant 

Dear Qovernor Smith: 

to the Omnibus Crime ~Control 

and Safe Streets Act of 1968. 

,Your request for an opinion asks the follorPng 

questions: 

"(1) The Texas Criminal ,Justice C~ouncll re-’ 

spectfully re,quests an opinion as to whether or 

not the State Comptroller ,can i,ssue a warrant 

payable to a non-profit agency, such as the 

Vocational Guidance ,Semice, when such war%??& 

has been requeste,d by the Texas Criminal Justice 

Council in the normal ~~aarse of their 'business 

to be ,drawn on federal funds deposIted with the 

State Treasurer and the payment of such funds 

is to be mad:e for the purposes of a dls:cretlo~nary 

grant of Federal monies and by authority of and 

in compliance with P.L. 90-'351, Title I, Omnibus 

Crime Control and Safe Streets Act of 1968 and 

to a.cc,ompllsh the objectives of the 197,O State 

Plan as approved by the Law Enforcement Assistance 

Administration. 

"(2) The Texas Criminal Justice Counc1l,respectfully remquests an .oplnion as to whether or 

not the State Comptroller can issue a warrant 

payable to an educational institution, to-wit: 

a non-state supported university, college or 

junior college either within or without the State 

of Texas, such as Southern Methodist University, 

when the warrant is requested by 'the Texas Criminal 

Justice Council In the normal course of busln~ess 

to be drawn on Federal funds deposited with the 

State Treasurer and such payment is to be made to 

the educational institution for educational and/or 

-3807- 
Hon. Preston Smith, page 2 (M-782) 

training services to be rendered in accordance with 

the terms of the grant application approved by the 

Texas Criminal JuStIce Council and for the purposes 

of the Federal grant and by authority of and In 

compliance with P.L. 90-351, Title I, Omnibus 

Crime Control and Safe Streets Act of 1968 and to 

accomplish the objectives of the State Plan as approved by the Law Enforcement Assistance Adminlstratlon. 

“(3) The Texas Criminal Justice Council re- 

.spectfully requests an opinion as to whether or 

not the State Comptroller can issue a warrant payable to a non-profit corporation, such as the Texas 

District and County Attorneys Educational Foundation, when the warrant Is requested by the Texas 

Criminal Justice Council In the normal course of 

their business to be drawn on Federal,funds deposited with the State Treasurer and such payment 

to the non-profitcorporation Is to be made for 

educational and/or training services rendered in 

accardance with the terms, of the grant application 

approved by the Texas Criminal Jus,tice Council and 

for the purposes of the,Federal grant and by authority of and in compliance with P.L. 90-351, 

Title I, Omnibus Crime Control and Safe Streets 

Act of 1968 and to accomplish the objectives of 

the 197~0 State Plan as approved by the Law Enforcement Assistance Administration. 

"('I) The Texas Criminal Justice Council respectfully requests an opinion as to whether or not 

the State Comptroller can issue a warrant payable 

to an Individual or individuals, who are employees 

or elected officials in the criminal justice system, 

as reimbursement for travel, subsistence, tuition, 

fees, costs of materials used, etc., previously lncurred for educational and/or training purposes when 

such warrant is requested by the Texas Criminal 

Justice Council In the normal course of their 

business to be drawn on Federal funds deposited 

with the State Treasurer and such payment is to 

be made In accordance with the terms of the grant 

application approved by the Texas Criminal Justice 

Council and for the purposes of the Federal grant 

and by authority of and In compliance with P.L. 

90-351, Title I, Omnib us Crime Control and Safe 

-3808- 
Hon. Preston Smith, page 3, (M-782) .' 

Streets Act of 1968 and to accomplish the objectives 

of the 1970 State Plan as approved by the Law Enforcement Assistance Administration." 

The Texas Criminal Justice Council Is a planning agency 

in the Governor's office, created by an Executive, Order dated 

October 18, 1968, charged with the administration and dlsbursement of Federal funds made available through them Law~Enforcement 

Assistance Admlnlstration,, provided for by the provisions of P.L. 

90-351, Title I (Omnibus Crime Control and Safe Streets Act of 

1968). The Texas Criminal Justice Council Is financed by funds 

appropriated to the Governor In Item 11 of the current Qeneral 

Appropriations Act to the Oovernor's office which reads as follows: 

"For the Years Ending 

August 31, August 31, 

1970 1971 

"11. To provide from the 

General Revenue Fund for 

special planning projects 

and studies including but 

not limited to Comprehensive Health Planning,, Texas 

Criminal Justice Council, 

Coastal Resources Study, 

State Economic Study, Manpower Development, and 

Governor's Committee on 

Human Relations, Including 

salaries of exempt and clas'slfled poaltions, professional 

fees and services, part-tlme 

and,seasonal help, travel, 

consumable supplies and 

materials, current and recurring operating expenses, 

capital outlay, planning 

grants, and all other actlvlties for whkh no other provisions are made. 

$ 585,000 $ 644,728 

-& U.B." 

Section 25 of Article V of the current General Appropriations Act provides In part as follows: 

-3809- 
Hon. Preston Smith, paBe 4 (M-782) 

."A11 funds received from the United States 

Government by the agencies of the State named In 

this Act are hereby appropriated to such agencies 

for the purposes for which the Federal grant, al-‘ 

location, aid, or payment was made, subject to the 

provisions of this Act . . . ." 

Each disbursement contemplated by your four questions 

Is In compliance with planning grant applications which have been 

approved and is for the purposes for which the Federal grant is 

made. Therefore the Comptroller may Issue such warrants unless 

prevented by some constitutional or statutory restriction. 

In view of the provisions of Section 25 of Article V 

of the current General Appropriations Act, above quoted, Federal 

grants received by the Texas Criminal Justice Council are deposited in the State Treasury to be expended for the purposes 

for which the grant was made. 

Section 6 of Article VIII of the Constitution of Texas 

DrOVldeS that no money shall be drawn from the Treasury but in 

pursuance to specific-appropriations made by law. 

480 (1898). See 

Pickle v. 

Finley, 91 Tex. 484, 44 S.W. also Si 

Steele, 57 Tex. 200 (1882); Linden v. Finley,. 92 Tex. 451, 

S.W. 578 (1899). 

In the instant case the moneys in question have been 

appropriated for the purposes of the Federal grant and such 

appropriation authorizes the withdrawal of the money from the 

Treasury for such purposes. The only question remaining Is 

whether the Issuance of a warrant payable to a nonprofit agency 

such as the Vocational Guidance Service, a nonprofit United Fund 

agency In Houston, Texas, providing comprehensive rehabilitative 

services to adjudicated delinquent boys and preventive services 

for other boys with a potential for delinquency, violates the 

provisions of Section 51 of Article III of the Constitution of 

Texas, prohibiting the "making of any grant of public moneys to 

any Individual, association of Individuals, municipal or other 

corporations whatsoever . . ." It is well settled that the purpose of this section Is to prevent the application of public 

funds to private purposes. State v. City of Austin, 160 Tex. 348, 

331 S.W.2d 737 (1960); City of Aransas Pass v. Keeling, 112 Tex. 

339, 247 S.W. 818 (1923); Jones v. Williams, 121 Tex. 94, 45 

S.W.2d 130 (1931); Byrd v. City of Dallas, II8 Tex. 28, 6 S.W.2d 

738 (1928). 

A similar question regarding disbursement of Federal 

-3810- 
Hon. Preston Smith, page 5~ (M-.782) 

funds deposited with the State Treasury to' colleges and universities for teacher training was involved In Attorney General's 

Opinion c-474 (1965). It was there held that payments to colleges 

and universities which provided teacher training under a State 

plan approved by the Texas Education Agency and the United States 

Government were valid and that such payments would not violate 

Section 51 of Article III of the Constitution of Texas. After 

reviewing authorities It w&s held: 

"Thus it appears that your Inquiry resolves Itself Into a question of whether the, 

payment of these funds to enable teachers to 

obtain professional training in areas of mental 

retardation, emotional dlsturbance,~ speech and 

hearing Impairment, whereby, they will be better 

trained .to.teach such exceptional children, Is 

logltially within the meaning of applying 'public 

funds to a private purpose.' We think that It 

Is not." 

Likewise it was held In Attorney Qeneral'~s Opinion 

V-1067 (1950): 

"In determining whether an expendlture,of 

public monies constitutes a gift or a grant ,of 

public monies, 'the primary question Is whether 

the funds are used for a "public" or "private" 

purpose. The benefit of the State from an expenditure for a "public purpose" is in the nature 

of consideration and the funds expended are therefore not a,alft even though private DerSOns are 

benefited therefrom.' Alameha County v. Jan&en, 

16 Cal.2d 276, 106 P.2d 11, 130 A.L.R. 1141 Trvub)." 

In view of the foregoing we are of the opinion that the 

Issuance and payment of warrants outlined In your four questions 

do not violate Section 51 of Article III of the Constitution of 

Texas. You are accordingly advised that payments may not only be 

made to public or state supported institutions, but also to nonprofit organizations, to non-state supported universities, 

colleges and junior colleges, as well as to Individuals who are 

employees or elected officials In the criminal justice system, 

provided the payment and expenditure of such warrants is for 

the purpose for which the Federal grant Is made.' 

Your request as well as the accompanying documents 

outline material facts showing such payment Is to be made in 

-3811- 
. . . 

Hon. Preston Smith, page 6 (M-782) 

accordance with the terms of each grant application and for the 

purposes of the Federal grant and by authority of and In compliance with the Omnibus Crime Control and Safe Streets Act of 

1968. Therefore, each question Is answered In the affirmative. 

SUMMARY 

Pursuant to the provisions of Section 25 of 

Article V of House Bill 2, Acts 61st Leg. 1969,~2nd 

C.S., disbursement of Federal grants deposited In 

the State Treasury pursuant to the provisions of 

P.L. 90-351, Title I, Omnibus Crime Control and 

Safe Streets Act of 1968, can be made by issuance 

of warrants by the Comptroller of Public Accounts 

payable not only to public or state supported lnstitutlons, but also to nonprofit corporations 

and associations, non-state supported educational 

Institutions, and Individuals who are employees 

or elected officials In the criminal justice 

system so long as such payment and expenditure 

is made In accordance with the terms of the grant 

application and for the purposes of the Federal 

grant. Such payment Is for a public or governmental purpose and would not viol e Section 51 

of Article III of the Constitut of Texas. 

General of Texas 

Prepared by John Reeves 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Kerns Taylor, Chairman 

W. E. Allen, Co-Chairman 

Ben Harrison 

Llnward Shivers 

Austin Bray, Jr. 

James Broadhurst 

-3812" 
Hon. Preston Smith, page 7 (M-782) 

MEADE F. GRIFFIN 

Staff Legal Assistant 

ALFRED WALKER 

Executive Assistant 

NOLA WHITE 

First Assistant 

-3813-