May 9, 1967 

Honorable J. W. Edgar Opinion No. M-71 

Commissioner of Education 

Texas Education Agency Re: The authority of the Texas 

Austin, Texas Education Agency to allocate 

federal and State funds to 

hospital districts for the 

purpose of carrying out the 

State's plan for vocatlonal 

Dear Dr. Edgar: rehabilitation In said area, 

Your request for an opinion states that the Amarillo 

Hospital District, which is coextensive with the boundaries of 

the City of Amarillo, created pursuant to Section 5, Article IX 

of the Constitution of Texas, is interested in the possibility 

of the district being designated as a local administration rehabilitation agency under the supervision of the Texas Central 

Education Agency, pursuant to the State Plan for administration 

of the program of Vocational Rehabilitation In Texas. Your request on the authority of the Amarillo Hospital District to be 

designated as a local admlnlstratlon rehabilitation agency reads, 

in part, as follows: 

"For the several years past and at the 

present time, the Texas Education Agency has 

not provided for administration of such Program by a political subdivision, a local rehabllltatlon agency. Section 4.7> State Plan, copy forwarded 

herewith. Current1 

3' 

the entire Program is admlnistered pursuant fro an approved State Plan, directly 

by the deslgna%d-State Agency through its central 

and several field offices; financed by federal and 

state funds appropriated. House Bill 12, Acts 59th 

Leg., R.S., 1965, Article IV, at pages 177-181. See 

also: Articles 2675-1, as amended; 2654-1, Sections 

1, 3; and 2654-3, Sections 1 and 2. 

"Only recently have the federal laws been 

amended to allow for a flexibility in State ad- 

- 322 - 
Hon. J. W. Edgar, page 2 (M-71) 

ministration of the Program. The Federal Vocational Rehabilitation Act (Publlc.Law 83-565 

last amended by Section 8(a) of Public Law A 

as 

9-333 

authorizes and/or provides, in substance and in 

so far as pertinent herein, that the State Board 

of Education may be designated as the sole State 

agency to administer the plan, ‘or to supervise 

Its administration In a political subdivision of 

the State. ’ 

Section 8(b) provides that amendments of (a) shall become effective July 1, 1967, except that In any State 

(like Texas) such amendments shall become effective 

earlier on or after November 8, 1965 (the date of enactment of this Act) as such State has In effect an 

approved plan meeting the requirements of the Vocational Rehabilitation Act aa amended by subsection 

(a). 

“The Texas Education Agency is contemplating the 

alteration of it8 State Plan to meet the requirements 

of the Vocational Rehabilitation Act as amended, thereby to authorize and approve political subdlvlsion(s) 

of the State locally to carry out the State function; 

that is, the State Agency only to supervise admlnlstratlon of the State approved plan by a political 

subdivision, 

Section 401.8 

such as the Amarillo Hospital District. 

In the federal regulations revised to 

conform to the amendments (Federal Register, Vol. 31, 

No. 9, at page 501) further clarifies or reads in 

part as follows: 

“The State plan may provide for administration 

of the program through a sole local rehabilitation 

agency of a political subdivision of the State, 

under the supervision of the State agency and in 

compliance with Statewide standards established 

by the State agency (except to the extent there 

Is a waiver of Statewideness, D 401.9). If the 

plan provides for local administration, the local 

rehabilitation agency shall be responsible for 

the administration of all aspects of the program 

within the political subdivision which it serves 

If the State plan provides for the ad- 

&&ration of the program by local rehabilitation agencies, the State plan shall set forth 

the standards governing their organization and 

methods of administration, and shall describe 

- 323 - 
Hon. J. W. Edgar, page 3 (M-71) 

the nature and the extent of supervision exercised by-the State agency In order to assure 

observance In the application of State standards 

and the effective achievement of the objectives 

of the State plan throughout the State except to 

the extent that the requirement for statewideness 

Is waived in accordance with 8 401.9. 

“Assuming this Agency adopts an amended and 

approved State Plan to provide for flexibility In 

State administration authorized In the amended 

Vocational Rehabilitation Act, we need and will 

appreciate receiving an opinion from your Office 

on the following three legal questions which give 

us concern in the matter. 

“1 . Does the Texas Central Education 

Agency have the authority to allocate or 

grant appropriated federal and state funds 

to a political subdivision of this State to 

carry out said State functlo~n under the 

Vocational Rehabilitation State Plan and 

supervision by the Agency? 

“In the light of the authorities cited in 

Attorney General Opinion No. M-32, we do not believe 

that the allocation or grants, being for governmental 

purposes, could legally be regarded as violative of 

prohibitions set out in Section 51, Article III, 

Constitution of Texas. Nor do we find any provision 

In the law creating the Amarillo Hospital District 

(Art. IX, Sec. 5.> Constitution) which prohibits State 

participation In Its hospital 

found In Article IX, Sections E 

rogram; asmay be 

and 9, Constitution 

of Texas. 

“2 . Does a political subdivision of 

this State (Amarillo Hospital District) 

have authority to spend for vocational rehabilitation program ourposes local funds; 

and/or state and federal appropriated funds 

approved and allocated by this Agency pursuant to the Vocational Rehabilitation State 

Plan, when administered under the supervision 

of the Texas Education Agency? 

"3 . May any political subdivision of this 

State (city, county, hospital or school district) 

- 324 - 
Hon. J. W. Edgar, Page 4 (M-71) 

legally be approved by this Agency pursuant 

the State plan to administer a vocational rehabilitation program, under the supervision 

of the Texas Education Agency?" 

Section 5 of Article IX, Constitution of Texas, authorizes 

the creation of a hospital district coextensive with the boundaries 

of the City of Amarillo and the Amarillo Hospital District was so 

created pursuant to Its provisions. The purpose of the District 

Is to provide for "hospital care for needy fndividuals." 

Article 2675-1, VernonPa Civil Statutes, provides: 

'Section 1. The Legislature of Texas does 

hereby accept the provisions and benefits of an 

Act of Congress passed June 2, 1920, amended 

June 5, 1924, entitled: 'An Act to provide for 

the promotion of Vocational Rehabilitation of 

persons disabled In Industry or otherwise, and 

their return to civil employment.' 

"Sec. 2. The Treasurer of Texas be, and 

he is hereby authorized and empowered to receive 

the funds appropriated under said Act of Congress, 

and Is authorized to make disbursements therefrom 

upon the order ~of the State Board for Vocational 

Education. The State Board of Vocational Education 

is empowered and instructed to cooperate with the 

terms and conditions expressed in the Act of Congress aforesaid, 

"Sec. 2-a. The Vocational Rehabllltatlon 

Division, through the Supervisorof Rehabilitation, 

is authorized to receive gifts and donations for 

rehabilitation work, said gifts and donations to 

be deposited by the Supervisor of Rehabilitation 

In the State Treasury, subject to the matching of 

same with Federal Funds up to such amount as the 

Federal Government may allocate per biennium to 

the State for said work, and which has not already been met with state appropriations for said 

biennium. 

'Sec. 2-b, Provided no person shall ever 

receive any commission in whole or In part for 

sollcltatlon of any funds as provided in this 

Act. 

- 325 - 
Hon. J. W. Edgar, page 5 (M-71) 

“Sec. 3. The Vocational Rehabilitation 

Division of the Texas Education Agency Is designated 

and authorized to provide for the rehabilitation 

of severely physically disabled Texas citizens, 

excepting those who are blind as defined by House 

Bill No. 347, Regular Session, 49th Legislature, 

1945, Section l(f), and further that nothing herein contained would affect or repeal the present 

crippled children’s restoration service as authorized 

by Article 4419c and administered by the Crippled 

Childret;t’s Division of the State Department of 

Health. 

The above-quoted provisions constitute a part of the 

Vocational Rehabilitation Program established by the State In 

1929. Acts 41st Leg., 1st C.S., 1929, ch. 23, p. 57. The purpose of the Program Is to vocationally train disabled Individuals 

so that they may return to civil employment, and the program Is 

administered b 

Opinions 0-646 3; 

the Texas Education Agency. Attorney General’s 

(1962). 

(1945); O-6933 (1945); 0-5666 (1943); m-1229 

Article 2675k, Vernon’s Civil Statutes, is a lengthy 

Act providing for the creation of Rehabilitation Districts. 

2 of Article 2675k provides: 

Sectlon 

‘Rehabilitation Districts may be created 

to provide education, training, special services, 

and guidance to handicapped persons peculiar to 

their condition and needs, to develop their full 

capacity for usefulness to themselves and society, 

and to prevent them from becoming or remaining, In 

whole or,,in part, dependent on public or private 

charity. 

In view of the foregoing provisions, it is our opinion 

the Vocational Rehabilitation Program of the State of Texas 

. _ ^ -. . __ _ 

that 

1s an Integral part or tne state’s overall educational program, 

Under Article 2675-1, the Vocational Rehabilitation Division Is 

authorized to accept the provisions and the benefits of the Federal 

Government In regard to Vocational Rehabilitation and is authorized 

to disburse all such funds received for such purpose. Under Article 

2675k, a Vocational Rehabilitation Program of the State Is administered 

locally through Rehabllltatlon Districts, created for such purpose, 

and constitutes a comprehensive act authorizing the creation of 

Vocational Rehabilitation Districts for the specific purpose of 

providing education, training, special services and guidance to 

handicapped persons peculiar to their conditions and needs, 

- 326 - 
. 

Hon. J. W. Edgar, page 6 (M-71) 

On the other hand, hospital districts are created for 

the purpose of providing "medical and hospital care to the needy 

Inhabitants." Chapter 5, Title 71, Revised Civil Statutes of 

Texas, 1925, as amended. Such hospital dIstrIctas power to enter 

Into contracts with agencies of the State of Texas is for the purpose of "performing its duty to provide medical and hospital care 

to needy Inhabitants." Section 5 of Article IX providing for the 

creation of the Amarillo Hospital District specifically states: 

"The district shall not have the Dower to 

levy any tax for maintenance or operation of the 

hospital or facilities,, but shall contract with 

th litlcal subdlvlslons of the state or private 

?ndf%~~als 

purposes." 

, associations, or corporations for such 

(Emphasis added). 

Thus, the power of the hospital district to contract is 

limited for the purpose of providing for maintenance and operation 

of the hospital or facilities. The Amarillo Hospital District does 

not have the power, by virtue of the provisions of Section 5 of 

Article IX of the Constitution of Texas to educate and provide the 

necessary educational training contemplated by the Vocational Rehabilitation Program to enable handicapped persons to gain the 

necessary training to enable such Individuals to work In our general 

society. Of course, the Vocational Rehabilitation Division of the 

Texas Education Agency has the power to contract with the Amarillo 

Hospital District to provide medical and hospital care incident to 

the Vocational Rehabilitation Act but the Hospital District does 

not have the authority to administer the entire Vocational Rehabilltatlon Program in that area. Furthermore, as above noted, Article 

2675k authorizes the creation of local Vocational Rehabilitation 

Districts designed specifically for the purpose of carrying out 

the Vocational Rehabilitation Program of the State and Federal 

Governments. While it may be contended that since the Legislature 

has created a specific agency ror the purpose of administering the 

Vocatlonal Rehabllltatlon Program locally that no other local subdivision Is authorized to perform duties for which local Vocational 

Rehabllltation Districts are created , we rind no provisions In 

Article 2675k which prohibit school districts from admlnlsterlng 

the program locally as a part of thelr educational program. 

Your questions are therefore answered as follows: 

(1) The Texas Central Education Agency has the authority 

to allocate or grant appropriate federal and state funds to a political 

subdivision of the State to carry out the State plan for Vocational 

Rehabilitation provided such polltlcal subdlvlslon has the authority 

- 327 - 
Hon. J. W. Edgar, page 7 (M-71) 

to ‘educate and provide necessary vocational training contemplated 

by the Program to enable handicapped persons to gain the necessary 

training to enabie such lndlvlduals to work In our society.” As 

above noted, Vocational Rehabilitation Districts created pursuant 

to the provisions of Article 2675k, Vernon’s Civil Statutes, have 

such power. Amarillo Hospital Districts created under the provisions 

of Section 5 of Article IX, Constitution of Texas, does not have 

such comprehensive power but does have the power to provide medical 

and hospital care to such lndlvlduals. 

(2) The Amarillo Hospital District has the authority to 

spend for medical and hospital care, funds allocated under the 

Vocational Rehabilitation Program, but does not have the power to 

expend such funds for the comprehensive purpose to educate and provide necessary vocational training contemplated by the Vocational 

Rehabilitation Program to enable handicapped persons to gain the 

necessary training to enable such Individuals to work in our general 

society. 

(3) School districts of the State may legally be approved 

by the Texas Education Agency to administer a Vocational Rehabllltatlon Program as a part of their educational program. However, we 

know of no provlslons which would authorize polltlcal subdlvlslons 

other than Vocational Rehabilitation Districts or school districts 

to carry out thla program. 

SUMMARY 

The Texas Central Education Agency has the 

authority to allocate or grant appropriate federal 

and state funds to a political subdivision of the 

State to carry out the State plan for Vocational 

Rehabilitation provided such political subdivision 

has the authority to “educate and provide necessary 

vocational training contemplated by the Program to 

enable handicapped persons to gain the necessary 

tralnlng,,to enable such lndlvlduals to work In our 

society, As above noted, Vocational Rehabilitation 

Districts created pursuant to the provisions of 

Article 2675k, Vernon’s Civil Statutes, has such 

power. Amarillo Hospital Districts created under 

the provisions of Sectlon 5 of Article IX, Conatltutlon of Texas, does not have such comprehensive 

power but does have the power to provide medical 

and hospital care to such lndlvlduals. 

The Amarillo Hospital District has the authority to spend for medical and hospital care funds 

allocated under the Vocational Rehabilitation Program, 

- 328 - 
Hon. J. W. Edgar, page 8 (M-71) 

but does not have the power to expend such funds 

for the comprehensive purpose to educate and provide necessary vocational training contemplated by 

the Vocational Rehabilitation Program to enable 

handicapped persons to gain the necessary tralnlng 

to enable such lndlvl?uals to work in our general 

society. 

Vocatlonal Rehabilitation Dlstrlcts or school 

districts may legally be approved by the Texas 

Education Agency to administer a Vocational Rehabllltatlon Program. 

truly yours, 

m7==- 

C. -MARTIN 

General of Texas 

Prepared by John Reeves 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Hawthorne Phllllps, Chairman 

W. V. Geppert, Co-Chairman 

Houghton Brownlee 

John Grace 

Malcolm Quick 

W. 0. Shultz 

STAFF LEGAL ASSISTANT 

A. J. Carubbl, Jr. 

- 329 -