May9, 1967

Honorable J. W.Edgar Opinion No. M-71 Commissioner of Education Texas Education Agency Re: Theauthority of the Texas Austin, Texas Education Agency to allocate federal andState 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 InTexas. Your request onthe 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 andat the present time, the Texas Education Agency has not provided for administration of such Programby apolitical subdivision, a local rehabllltatlon agency. Section 4.7> State Plan, copy forwarded herewith. Current1 3' the entire Programis admlnistered pursuant fro anapproved State Plan, directly by the deslgna%d-State Agency through its central andseveral field offices; financed by federal and state funds appropriated. HouseBill 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 1and 2. "Only recently have the federal laws been amendedto allow for a flexibility in State ad-

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

ministration of the Program. TheFederal Vocational Rehabilitation Act (Publlc.Law 83-565 last amendedby Section 8(a) of Public LawAas 9-333 authorizes and/or provides, in substance and in
so far as pertinent herein, that the State Board of Education maybe designated as the sole State agency to administer the plan, ‘or to supervise Its administration In apolitical subdivision of the State. ’

Section 8(b) provides that amendmentsof (a) shall become effective July 1, 1967, except that In any State (like Texas) such amendmentsshall become effective earlier on or after November8, 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 amendedby subsection (a).

“TheTexas Education Agency is contemplating the alteration of it8 State Plan to meet the requirements of the Vocational Rehabilitation Act as amended, thereby to authorize andapprove 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 401.8such 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 mayprovide for administration of the program through asole local rehabilitation agency of apolitical 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 awaiver of Statewideness, D401.9). 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, andshall describe

-323-Hon. J. W.Edgar, page 

### 3 (M-71)

the nature andthe extent of supervision exercised by-the State agency In order to assure observance In the application of State standards andthe 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 8401.9.

“Assuming this Agency adopts anamendedand approved State Plan to provide for flexibility In State administration authorized In the amended Vocational Rehabilitation Act, weneed andwill appreciate receiving anopinion 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, wedonot 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 dowefind anyprovision 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 and9, 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 andfederal appropriated funds approved andallocated by this Agency pursuant to the Vocational Rehabilitation State Plan, whenadministered under the supervision of the Texas Education Agency?



### "3

. Mayanypolitical 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 

### 5of Article IX, Constitution of Texas, authorizes the creation of ahospital district coextensive with the boundaries of the City of Amarillo andthe Amarillo Hospital District was so created pursuant to Its provisions. Thepurpose of the District Is to provide for "hospital care for needy fndividuals."

Article 

### 2675-1,VernonPa Civil Statutes, provides:

'Section 1. TheLegislature of Texas does hereby accept the provisions andbenefits of an Act of Congress passed June 2, 1920, amended June 

### 5, 1924, entitled: 'AnAct to provide for the promotion of Vocational Rehabilitation of persons disabled In Industry or otherwise, and their return to civil employment.'

"Sec. 2. TheTreasurer of Texas be, and he is hereby authorized andempoweredto receive the funds appropriated under said Act of Congress, andIs authorized to makedisbursements therefrom upon the order ~ofthe State Board for Vocational Education. TheState Board of Vocational Education is empoweredandinstructed to cooperate with the terms andconditions expressed in the Act of Congress aforesaid,

"Sec. 2-a. TheVocational Rehabllltatlon Division, through the Supervisorof Rehabilitation, is authorized to receive gifts anddonations for rehabilitation work, said gifts anddonations to be deposited by the Supervisor of Rehabilitation In the State Treasury, subject to the matching of

samewith Federal Fundsupto such amountas the Federal Governmentmayallocate per biennium to the State for said work, andwhich has not already been metwith state appropriations for said biennium.

'Sec. 2-b, Provided noperson shall ever receive anycommission in whole or In part for sollcltatlon of anyfunds as provided in this Act.

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

“Sec. 3. TheVocational Rehabilitation Division of the Texas Education Agency Is designated andauthorized to provide for the rehabilitation of severely physically disabled Texas citizens, excepting those whoare blind as defined byHouse Bill No. 347, Regular Session, 49th Legislature, 1945, Section l(f), andfurther that nothing herein contained would affect or repeal the present crippled children’s restoration service as authorized byArticle 4419c andadministered by the Crippled Childret;t’s Division of the State Department of Health.

Theabove-quoted provisions constitute apart of the Vocational Rehabilitation Program established by the State In 1929. Acts 41st Leg., 1st C.S., 1929, ch. 23, p. 57. Thepurpose of the Program Is to vocationally train disabled Individuals
so that they mayreturn to civil employment, andthe program Is administered b Opinions 0-6463;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. 2of Article 2675k provides: Sectlon

‘Rehabilitation Districts maybe created to provide education, training, special services, andguidance to handicapped persons peculiar to their condition andneeds, to develop their full capacity for usefulness to themselves and society, andto prevent themfrom becoming or remaining, In whole or,,in part, dependent onpublic 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, UnderArticle 2675-1, the Vocational Rehabilitation Division Is authorized to accept the provisions andthe benefits of the Federal Government In regard to Vocational Rehabilitation andis authorized to disburse all such funds received for such purpose. UnderArticle 2675k, aVocational Rehabilitation Programof the State Is administered locally through Rehabllltatlon Districts, created for such purpose, andconstitutes a comprehensive act authorizing the creation of Vocational Rehabilitation Districts for the specific purpose of providing education, training, special services andguidance to handicapped persons peculiar to their conditions andneeds,

-326-.

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

Onthe other hand, hospital districts are created for the purpose of providing "medical andhospital care to the needy Inhabitants." Chapter 5, Title 71, Revised Civil Statutes of Texas, 1925, as amended. Suchhospital dIstrIctas power to enter Into contracts with agencies of the State of Texas is for the purpose of "performing its duty to provide medical andhospital care to needy Inhabitants." Section 5 of Article IX providing for the creation of the Amarillo Hospital District specifically states:

"Thedistrict shall not have the Dowerto levy anytax 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 andoperation of the hospital or facilities. TheAmarillo 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 andprovide the necessary educational training contemplated by the Vocational Rehabilitation Programto enable handicapped persons to gain the necessary training to enable such Individuals to work In our general society. Ofcourse, the Vocational Rehabilitation Division of the Texas Education Agency has the power to contract with the Amarillo Hospital District to provide medical andhospital 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 andFederal Governments. While it maybe contended that since the Legislature has created a specific agency ror the purpose of administering the Vocatlonal Rehabllltatlon Program locally that noother local subdivision Is authorized to perform duties for which local Vocational Rehabllltation Districts are created

, werind noprovisions 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) TheTexas Central Education Agency has the authority to allocate or grant appropriate federal andstate 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 andprovide necessary vocational training contemplated by the Programto 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 andhospital care to such lndlvlduals.

(2) TheAmarillo Hospital District has the authority to spend for medical andhospital care, funds allocated under the Vocational Rehabilitation Program, but does not have the power to expend such funds for the comprehensive purpose to educate andprovide necessary vocational training contemplated by the Vocational Rehabilitation Programto enable handicapped persons to gain the necessary training to enable such Individuals to work in our general society. (3) School districts of the State maylegally be approved by the Texas Education Agency to administer aVocational Rehabllltatlon Programas a part of their educational program. However, we knowof noprovlslons which would authorize polltlcal subdlvlslons other than Vocational Rehabilitation Districts or school districts to carry out thla program.

SUMMARY

TheTexas Central Education Agency has the authority to allocate or grant appropriate federal andstate funds to apolitical subdivision of the State to carry out the State plan for Vocational Rehabilitation provided such political subdivision has the authority to “educate andprovide necessary vocational training contemplated bythe Programto enable handicapped persons to gain the necessary tralnlng,,to enable such lndlvlduals to work In our society, Asabove 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 5of Article IX, Conatltutlon of Texas, does not have such comprehensive power but does have the power to provide medical andhospital care to such lndlvlduals.

TheAmarillo Hospital District has the authority to spend for medical andhospital 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 andprovide necessary vocational training contemplated by the Vocational Rehabilitation Programto 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 maylegally be approved by the Texas Education Agency to administer aVocational Rehabllltatlon Program. truly yours,

m7==- C. -MARTIN General of Texas Prepared by JohnReeves Assistant Attorney General

APPROVED: OPINIONCOMMITTEE

Hawthorne Phllllps, Chairman W.V. Geppert, Co-Chairman HoughtonBrownlee John Grace Malcolm Quick W.0. Shultz

STAFFLEGAL

ASSISTANT A. J. Carubbl, Jr.

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