Bonorablc Eiarry Knox, ahairman State Doard of Control Austin,Texae 0plnson no. O-3885 Dear tXrr Rs: Oonstruatloa af Subseatlon(11, Soatlon 2, Senate Bill Ho. 423, 47th Lsglslaturo,

the depertmentel~epproprlatlon **bill,** la relation.to

oertelnsthtutss.

v:e are pleaeed**to** 0041~ with your letter of .Aueust 25, 194 *iah m quoter

wStatement: Bearingin n&ad Artlole 603 aad &I ertlalcsof the Statute with refermtieto publla printing,

e8 well em the ertlel6a in'chapter

3, Purabasing 'Dlilalon,

plore espeolally

Articles634 to 664 lnolusira and any and all other pertinentprovlalon of the ,tetutes.

4
qwstloa 1. .(a)Does subsection*a* oi Section 2, of the Gantrral Pzorislons

ai the Departmental Lpproprlatlon Bill, peaeed by the 47th Le&letlire o&llat v;ith.the

above referredt6 Statutes, and i t so Aow said 'Seotlon a * * supereede the above artloles, aab 1s the BoarAoi:Control bound to be **governed** thereby, or are the above referred to %&Ites still the eovernlng

authority

ln suah matters? **m(b)** Doe6 6ubssotlon ***d!** af 14?ectlon 2, oi said CaneralPrwlsiens of the Departmentel Appropriation BIU. rforeaald~

oonfllct

with the aboSe referred to statutes,

and 1f so, does said oubaeation 'd' supersede the above artlales,end 1s the Board of Controlboo&

. -to be governedthereby, or are the rbwe referred to Statutesstill the governing eutharltyin suah matters? "c&lestlon

2. Said subfiebotlona (a* and *d@ adoresaid, being prorlaiow of the DepsrtmentelApgroprletlon Bill end not ln elther.the Elesmos~nsry,

Educational,or Jualblery Appropriation

BSU; ii you hold the eaperrede the above referred to ertloles, **do** they !&to either the Elsuaoaynery, $duoatl&el or Zudlam aiory Blll,~althoa& mot o+,alned,thereln?m

Aad with hour rypplemental letter of September 5, 1943,whlah quot. 1Hon. Harry Knox, Chairman, Page 2

RFurthar

supplementing

my letterto you under date or Au@st 25, 19W, in whloh a rulingwas requested with referenceto the so-oalled lanaumbraaae*

prwlaions of Seation 2 of the General Provlaions

OS the Departmental

Appropriation

Bill,passedby the 47th Lqlsleture, tho Ward ot Control desiresto know: question 1. Do the provisions **in** Section 2 aonillat wltb Artlals 660 of the RerlsrdCivil Statutes aoverlw Wmergenoy PurahaesaV *Question

2. Under Subdivision *d'. prwldlagt fThe &uptroller shall * * * have the power, aad it shall ba his duty,.from **tima** to time, to adopt, publlsh and anfaroersssonable rules and regulations not inoonsistent

herewith,for the purpose of carryingout the provisions

of this Aat’ * * * aan the Comptroller exemptany purchase from the provisfons of Reotion *C,* and more espcalallg that provision

that requlree
a purchaseordermgltlne posed to ba purohased9* the prl8e of the artlaliproArticles603, 634, ot Texas, read in suah order 660 end 664, Revised Civil Statutes a8 tollaner

"Article 603. The

_ ._ . $ard aim11ad&dater the laws relatlJ&!$

to tne oerrous ilepartments, boards, institutions

and publlo officera of the government herein nsmsd, end **peiorm** the eddltlonal duties and exercise

the addltlonal

tunotlonr

provided

for la this title, end ney combineunder it the followlag subdirlsfons

of lta workr 

# 2 DiT1slon Oi Dlvlslonof 3: rnwi0n 0f 4. DivisionOS tenance. Public Prlatlog. PurcheSlag Auditing. Design,Conetructlon end MainDitislonof Eetlmates sad Appropriations. 2: Mvlslon of Eleemoaynary Iastltutlont3 7. And such other divisiona or ita work ia it may find aeoessaryIn the admlnlstratloa of lts duties.*

'R~tlale 634. The Board cd Controlshall purohaw all the supplies

uaed by each Department ot the State Government,

includingthe StatePrison Sgat@m, and eaah eleemoaynary

ln&itUtlOn,'3ormal 8ohoo1, Agrloultural an6 Mechanical

College,

U&vsrsity oi Texas, a n d l aah and all o$har State Sahools or Departments bf tk State Government

her&ofore or heraefter areated. Such suppllos to includeSurnlture and rlxturea,

tsohnlaallaatzuments and **books,** and al1 other thingsrsqulred **br** the d.ltfe*nt.

dspwtmimt6 oz Institutions, except etrlotly psrlshabla

goods.*Hon. Berry Knox, Chalrnmn, Pa&a 3

*Artlola

660. In ease of emmrgency and where articles

are neasasary

end neededby any lnstltutlon, and It 1s Impractioable to Includethem In the annual contract,

the su erIntendent

shellmake a requlsitlon for asne to tha ii oerd of Control and the Board may fmthwith .purohase

euoh ertiolei

n the open market.*
“titiole

664. The Eoard shell frame and transmit to eeoh institution a systemof rules end regulations for the purche~se

of such 8uppUw.1

es have been deslgnated by then as perlahable and 88 speclslsupplleafor eduaational

lnntltutlons,

and to whloh, oonformity by ell institutions

is herebyrequir?d.n
Subsection(1) of Section2 of SenateBill No. 423, 47th &@lature, the dcpzrtmentel spproprlation

bill, reads as follows:
“(8) The Comptroller shell approveIn advanceof paymentthe amount of all expenditures to be paid from funds for which appropriations ‘have been made and shall enoumbfa

and/or allot all epproprlatlons against x&loh purchase

requlsltlons

or orders are Issue&~ and the Can troller shallheve the authority to en**cumber** and or allot muoh other approprletlons as he P deem essentiel

to a proper **and** uniformsystem of rcoord-keeping

on 0n enoumbraaoe

or allotmeat

basis.
*(b) The CoUptrOller shallheYe the authority and he la hereby directed to requireall departments, oomn&~aion~, **boerde, divisions,**  imtittutiom, agencies, and other units.

of the State Government for whioh appropriations

ere made In this **Act** to furnish such information

as he deems neassaary to mointaln

approprla~- tloaa on an enoumbranae and/or allotment

baala.
I((a)Mter the purahf+e requlsltlon

ha6 baen approved by the **Board** of Control, but before6 purahaee order for the ertlcle ,or erticles

requisitioned

has been made, it shall be the duty of the Boerd of Control to furnishthe Comptroller for his approvalthe orlglnel and a aopy of eel& purchase order,which shell show the depertment,

oommIsslon,

board,division,

Institution, .egtiauy

or other unit of State government meking the requisition,

the reqnisition

number
, the purchaseorder number,

,the appropriation

and number oat of whioh the purchaseIs to be paid, e desorlptlon of the article, the cost of the artlale, the person or firm fran whan the artiole

has been QUrchsSeC, end ~uoh other lnformatlon es the Comptrbller mey require. when the Oomptroller he8 approvedthe amount of the purchaw order he shell return the orlgIna1to the Board of dontrolfor

. the making of the or&r and shallretain the aopy of aeld purchase

order for his reoWd8.BOIL ferry lmox, Chalrmn, Pa@ 4

m(d) The Comptroller shall have the authority to presorlbe

suoh forms as he MJ deem neoessaryto carry this A& into ettcot and he shall furtherhave the power and It shall be his duty, from tine to time, to adopt, publishand enioroe reasonable

rules end regulations not InoonaIstent

herewIth

for-thepurpose

of oarrylngout the provisIona

oi this Aot.
“(8) If any department, oonualsaloa,

board,dlvlslon, lnatltutlon, agenog, or other unit of the State Oovernment

shall fail or **refuse** to fun&h the Comptrollerany or ell lnrormatlon requlrbd under the terms of this Aot, or whIoh the Comptroller requiresunder the terma of this Act, the Comptroller shall not write
or issue any warrant whatsoever

on any of tha appropriations made ior the benefitor such Q efaultlng department, ooxnIoslon,

board,dlvlslon,

agenoy or other unit of Etata government

until the requiredInforlntlon has been furnished.
"(f) ThIa Sectionshall be erreatlve rrom and after September

1, 1941, and the Camptroller shall oause same to beoomeoperative aa 80011

as practicable

thereafter,and not leter than January 1, 19&2.R

. Artiolea

603, 634, 660 and 664,.and othe, ielatedstatutes, confer oertain dutleaand powersum the Board or ~Control

. regerding

the purahaoing

of supplle6

for vsrloua statedspartments and institutions.

Subsection(1) or Seotlon- 2 of Senate Bill 80. 423 ooatains oertainnew requirements lnoldent

to the expenditures of the suma appropriated In Seoflon1 OS the dot. The expenditure8 far whIoh epproprletlom are made relate to the puroheso o2 **mp pllee**  for varlo~ state **departmenta.** The two-fold**purpoee** of the requirementa

ln Subaeotion (11.18 to preventthe overdraring af Items ot appropriation and to providea better bookkeeping agstem for the state. The requirements are new. They pioneer In the Sleld of strioter and more aoourate

bookkeeping for the atete. They appertain not to the statutory powers oi the Boerd. OS Control,but to the Comptrollar9a method of handlingthe payment of the purahases made by the Board of Control.

These provisions

do not repeal,or oonstltute an attempt to re;teal,

axI8tlng

statutes. Their vItelIty does not dependupon l ny change .lnthe statutory law of the etete. !Phe legislature has not deolaradthat the Board of Controlshall no longerpurokase supplies.

or othsrwlse

lnveded statutory

power8 of the Board. ft has r;lerely

stipulated

that paymentout of the appropriation made shall be subject to the desorlbsd

additional

requirements. The **Board** of Control1s still the parchasIng agenoy and in other reepeoteohergqd with the edmlnlstratlon of the laws re~letlng to &ate departmahta. The Comptroller Is not authorized

to approve purohases

es purohases)

he Is merely required to abide oertaln additions1

regulations

as to the paymentfor auah purchaeeswherefore he may kee
**on bv.**  **the Lad**  **a f**  the books.of

the etate In the manner deoldedup**mtnwm-**Hon. Harry %~ox, CheIrmf% PaSI 5

With tho wisdom or propriety of the adbitlonal

requirements, neitherthis depertamnt, nor the Comptroller, nor the Board af Control oan hsve eny oonoorn. Eaoh must follow the mendate
or the Le&~alaturs

if the requirements are althin ths bounds of law.

In tho very nature of the stupendous job of keeping the boob of this atate, the Le&ialature oan onlydeclarepurpoaea, prescribe

requIrementa,

definebounds of authority, and thereupon entrustadmlniatrstlon to the departments

of state involved. It has, aa It neoeaasrlly must have done, ohareed the Comptroller with the duty of promulgating thenaoeaaary

rules and regulationa to errsot the legislntlve purpoael It wea oompelled to give wlde latitudeto the Comptroller to scoept ths dutiesand reaponsIbIlItIes

Imposedand erecutethe leglslatlve msndate In the most reaaIble

msnner.
F’urohsaes

by the Board of Control, pursuant

to Its atatutory dutiesand powers,rmy be ole8slrIed a8 ot three types. First, the re&.ar purohaae of IaolatedItems upon the **basis of**  oompetltlve

bid8 relatingto eeoh lndIvIdual purchase. Second, puroheses

underannual oontraota awardedafter oompetltlve biddIng, whIah prescribe

prioe end qualIt&?,

quantity

being e matter of **au&** sequent

needs and requI?ementa. Third, 8mergenoy purohasds

purmuant to Article 660 under whloh the requirement of oompetltlve blda, end that requirement eione, la relaxed.

Under Subseotion(1) of Sootion 2 of Fenate Bill 423, it 1s lPandatory

upon the OWptroller to maintain all appropriations made In Seotlon1 of the Aot on an enoumbranoe **a&or** allotmant beBiB. l?eoesaarIly in the enaotment

of Subseotlon(1) the LegIal.:t&.at;d

**80** in contemplation of the threem8thodaor types of Henoe the alternative Renounbranoe and/orallotment bada.= be first type of puroheaeIs adaptable to. mslntenanoe upon **a** atrlot enoumbranoe besla. .Tha**aeoond** end third types of **puupaae** are more adaptable to mslntenenoe

upon an allotment Beoause af the multltudInoua details

and variationa

lnhe& in runningthe buaIne8s of the state, and in purohaaing auppllea

for departments

of atete,num8roua

and different

rules and regulations

must be adopted,

publish~sd

and snforoed

-by the Camptroller

to eohlevethe type oi bookkeeping required

by the Legislature.Henoe the broad rule-making power vested In the Camptroller.

ComplIanoe

upon the part of ths Board of Control with the’Mqul&m8nta of Subseotlon(11, and ulth the rules and regulations promulgated by the Comptroller

purlruant

thereto,

will not olroumaadba or restriotthe atetutory powers 6f the Board of Controlor obatruot ths Board of ControlIn the execution of its power8 and dutiesof purchase In the mannerprovided for and authorized

by statute.
Subaeotlon(1) shouldnot be etrlotly or unreasonably oonatrued. fn It8 very nature It requiresliberality of oonstiuotl on ‘ Ths reoognltlon

and repuIremen$

that appropriations ba maIntaIned

on an allotment

basispresupposes

the neoesalty

of eatimstes

of expendItur8s

under the ssaond end thirdmethod8 bfHon. Hsrry Knox, Choirman, **PO&B** 6

**purohaae** and the reserving by the Canptroller

of a oertelnpar- ~~~f~depproprIation r0r **the** paymentof oblI(;ationa yet to Were this not true, and **were** estimates end reservetloneof ~pp~opriatlons not oontempletrd

by the Le~elature, the requirement

would he% bean dnly that approprietlons be malntalned on.011

enoumbranoe

bsaia. Where an estlmte, end e oorrespondIngallotment **dsV8lOpB t0**  be eithertoo low or too hi&t, ad- @stAent can be made end It IS OOnt~plet86 under Subseotion (1) that adjustments

will her4 to be made. %iB the Leglalatura deemednor8 entiqraotory, rraa the stendpolnt or the books 0s the
**tStBt8,** than the oonditions heretofore

existing

under whloh the Btetu~a of en appropriotlon aooount

was al3 the while unoorteln end lnoapable

of Escertainment.

Statutes

oaunot, of oourse,

be **SUOO8SSfU~y** amended**or**
**i** repealed

In an appropriation bill. But the pleolngof restriot,iona upon the expenditure of money8 appropriated in **the** bill fnheres In the leglslotIv8 control

**over the**  State Treasury. Snb- :"sectlon

(1) of Se&ion 2 Of SenateBill 423 does not oonstltute y' an attemptto eooompllah the former but the exercise of the letter.

It Is thereforethe oonsidered oonolusion

of this depertment

thet the provlsion a oontelned In Subsection (1) or Section 2 of SeiEit8

aI= 423 do not Oonfilotwlth, BUp8rBed8,

emend
or repealArtlales603, 634, 660 and 664 of the statutesof Texes, or otherrelated statutes.

Your su~pler,entel

letterpropounds

the question,

In addition

to the one reletIn&to Artlole660, of whetherthe Captri&lcr may exem t
**Of %%bB8OtiOn**  **(1 P**  any purahasefrom the provlelons 0s Section0

**.** It la ~DUT

dpInIon that Seotlon o waa not'intended

to apfly t0 every ptUVhaB8traMaOtiOn and that the Comptroller does have the authority

to extanpt

**purChaB8B** therefrom if in the natures '~ of 8uah pureheaea,

othcmiae authorized bythe **Bt@tUt08 of**  Tents, they are incapable

OS bolne subjeoted

to the strictrequlremente 0s Seotlon0.~ AB mentionedabove,it Is **quit8** ObViOUs that the Legislature

oould **not** antIoipat8 eny end every contIngenoy that might arise rrm a bookkeeping etsndpolnt

end expresely

legislat8 upon each and every pOSBIbl8purbhese transaction

authorized

by .theetetutea. NeO8aserily muoh **must** have been left to the dlaoratioa,of

the BdminiBtr8tIV8

department

oherged

with enforoenent. ThereinlIcs the 8xplenfItIon end necessity

for the broad rule-making power and dIeor8tion expressly vested in the Comptroller*adepertment

. The Co)nptro~er is therefore

authorized

to exempt purchesea from the letter 0s Seotlon 0 when Buoh Is Inherently necessary,

ati to handle suoh p~OhBB88 in the BIBMer neOeI38Bry and t8eSibl8

to
**maintain** appropriations on an 8noumbranco

On&/Or allotment **ba8i8** es otherwies

rsqtiredby the **Various prOViSiOn**  **of** SUbsectIOn (1).

The **BeOOlld C$l8BtiOn**  in your letterOf August 25th inquires If oertain

provIsiqn8

of Subaeotion(1), oontalned only In Senate Bill i& the depertmentel spproprlatlon

bill, apply eitherto the

.- F. -

Hon. Harry Kuox, ChoIrnon, Pegs 7

Eleemoagnary,

the Educetlonal

or the Judltilery

appropriation

bills, although

not oonteined

in then. They do not.

Yours very truly

ATTOEIFY CEN%nkL OF TEXAS
By **B/B 201118**  C. %eak&ey

APZOVED OFI,WOh;

CO:XITTEX BY B-X!,

Chairman
ZCS:ejljrb