. . .* 

. 

June 16, 1967 

Honorable Robert 9. Calvert 

Comptroller of Public Accounts 

Austin, Texae 

Opinion No. M- 91 

Re: Conetruction of Section 6 

of Article IM of the Constitution of Texas relating 

to State partlclpatlon In 

programs financed with funds 

from private or federal sources for establlshlng and 

equipping facllltles for 

assisting handicapped lnDear Mr. Calvert: dlvlduals. 

Your request for an opinion reads, In part, as follows: 

“The following questions are being asked as 

a result of a new procedure which the Texas Education Agency and the State Commission for the Blind 

desire to follow in the administering of the funds 

received from the Federal Government and the 25s 

of the cost of approved projects to be absorbed by 

local and private organizations. 

“Please advise as follows: 

“(1) Does Section 6, Article XVI permit the 

withdrawing of funds from the State Treasury In the 

form of a Grant in Aid before expenditures contemplated under the Grant in Aid are made? 

“(2) Under the provisions of Section 6, Article 

XVI, If the fund8 provided for in this provision are 

placed In the State Treasury, do the departments 

have the right to withdraw funds from the State 

Treasury under any basis other than reimbursement 

for expenditures covered by agreement between the 

State agency, Federal iovernment, and local or 

private organlzatlons? 

-412- 
._ . 

Hon. Robert 9. Calvert, page 2 (M-91) 

RI) adopted 

Section 6 of Article XVI of the Constitution of Texas, 

by the electorate In 1966, reads as follows: 

“(a) No appropriation for private or lndlvldual purposes shall be made, unless authorized 

by this Constitution. A regular statement, under 

oath, and an account of the receipts and expenditures 

of all public money shall be published annually, In 

such manner as shall be prescribed by law. 

f “(b) State agencies charged wlth’the responsibility of providing services to those who are 

blind, crippled, or otherwise physically or mentally 

handicapped may accept money from private or federal 

sources, designated by the private or federal source 

as money to be used in and.establishlng and equipping 

facllltlee for asslstlng~thoee who are bllnd~, crlppled, or otherwise physically or mentally handicapped 

In becoming gainfully employed, In rehabilitating 

and restoring the handicapped, and In providing 

other services determined by the state agency to be 

essential for the better care and treatment of the 

hand lcapped. Money accepted under this subsection 

Is state money. State agencies may spend money 

accepted under this subsection, and no other money, 

for specific programs and projects to be conducted 

by local level or other private, nonsectarian associations, groups, and nonprofit organizations, ln 

establishing and equipping facllltles for assisting 

those who are blind, crippled, or otherwlse~physlcally 

or mentally handicapped In becoming gainfully employed, 

in rehabilitating and restoring the handicapped, and 

in providing other service6 determined by the state 

agency to be essential for the better care or treatment of the handicapped. 

“The state agencies may deposit money accepted 

under this subsection either in the state treasury 

or in other secure depositories. The money may not 

be expended for any purpose other than the purpose 

for which It was given. Notwithstanding any other 

provision of this Constitution, the state agencies 

may expend money accepted under this subeection without the necessity of an appropriation, unless the 

Legislature, by law, requires that .the money be. 

expended only on appropriation. The Legislature may 

prohibit state agencies from accepting money under 

-413- 
Hon. Robert 9. Calvert, page 3 (M-91) 

this subsection or may regulate the amount of money 

accepted, the way the acceptance and expenditure of 

the money is administered , Andy the purposes for which 

the state agencies may expend the money. Money 

accepted under this subsection for a purpose prohibited by the Legislature shall.be returned to 

the entity that gave the money. 

“?hle subsection does not prohibit. state agencies 

authorized to render services to the handicapped from 

contracting with privately-owned or local facilities 

for necessary and essential services, subject to 

such conditions, stanflards, and procedures as may 

be prescribed by law. 

The provisions of Section 6 of Article XVI of the 

Constitution of Texas having been adopted at the general election 

ln 1966, there has not been an occasion for the judiciary of this 

State to construe Its provisions. 

It Is noted that under the foregoing provisions, state 

agencies are specifically authorized to accept money from private 

or federal sources for the purposes of assisting physically or 

mentally handicapped lndlvlduals and are further authorized to 

spend the money accepted for specific programs and projects to 

be conducted by local level or other private, notiaectarlan assoclatlons, groups, and non-profit organizations for such purpose. The 

state agencies may deposit such money either In the State Treasury 

or other secure depositories. State agencies may contract with 

privately owned or local facllltles for necessary and essential 

services. 

The Legislature may require that the money be expended 

only on appropriation. However, we are not aware of any statute 

enacted pursuant to this provision which requires the expenditure 

of money under this Section to be pursuant to an appropriation. 

In view of the explicit language of Section 6 of Article 

XVI of the Const~Ltutlon of Texas quoted above, It Is our opinion 

that your questions are 

General ‘a Opinion c-644 7 

overned by the authorities cited In Attorney 

1966) wherein it was held: 

“You are therefore advised that it Is the 

opinion of this office that the Governor’s Committee on Aging may contract.with religious 

Institutions for the performance of services that 

are within the scope of authority granted by 

Article 695k, Vernon’s Civil Statutes, and the 

-414- 
Hon. Robert 9. Calvert, page 4 (M-91) 

Texas State Plan for Implementing the Older 

Americans Act of 1965. . . .” 

In Attorney 

_ _ . _ . General’s Opinion C-644 this office relied 

on the landmark oplnlon by the Supreme Court of Kentucky /Re 

Building Commission v. Effron, 310 Ky. 355, 220 S.W.2d 83b. (1 

. wherein the Court stated: 

“It Is well settled that a private agency ’ 

may be utilized as the pipe-line through which 

a public expenditure Is made, the test being not 

who receives the money, but the character of the 

use for which It IS expended.” (Emphasis aaded.) 

It Is well settled that tax money raised ostensibly for 

one purpose cannot be expended for another purpose, Carroll v. 

Williams, 202 S.W. 504 (Tex.Sup. 1918). It Is our oplnlon th t 

this principle would apply to all public monies: Therefore, ionles 

acquired by this State pursuant to the provisions of Section 6 of 

Article XVI may be expended only for the purposes set out therein. 

In fact, Section 6 of Article XVI specifically so states. Whenever 

the state agency acting pursuant to the provisions of Section 6 of 

Artlole XVI establishes a local program and operates through private, 

nonsectarian assoclatlons, groups , and nonprofit organizations, such 

state agency Is actually carrying out the provisions of Section 6 of 

Article XVI. No provision Is contained In the above quoted Section 

of our Constitution which requires the expenditure of such funds 

only on a reimbursement basis. On the contrary, Section 6 of 

Article XVI specifically Btates that the state agency Is authorized 

to contract with privately owned or local facllltles for necessary 

and essential services. Therefore, the state agencies charged with 

responsibility of providing services to those physically or mentally 

handicapped may cause such programs to be locally administered 

through private, 

organizations. 

nonsectarian associations, groups, and nonprofit 

This may be accomplished through contracts for the 

purpose of establishing services determined by the state agency to 

be essential for the better care and treatment of the handicapped 

as specifically provided in the Constitution. 

Your questions are therefore answered as follows: Section 6 of Article XVI permits the withdrawing of funds acquired 

pursuant thereto before expenditures are actually made by the organization administering the program at the local level. The wlthdrawing of such funds Is not limited to reimbursement for expenditures, 

but are governed by the agreement between the state agency, the 

federal and local or private organizations, provided the state agency 

determines In its discretion that such method Is “essential for the 

better care and treatment of the handicapped.” 
Hon. Robert S. Calvert, page 5 (N-91) 

'SUMMARY 

Section 6 of Article XVI of the Cdnstltution 

of Texas authorizes state agencies charged with 

responsibility for providing services to those 

physically or mentally handicapped to spend money 

accepted under the provisions of Section 6 of 

Article XVI for specific programs and projects. 

Such programs may be conducted by "local level or 

other private, nonsectarlannassoclatlons, groups, 

and nonprofit organizations in providing services 

determined by the state agency to be essential for 

the better care or treatment of the handicapped. 

It is not required that expenditure of state money 

be made only on a reimbursement basis, but only 

that a contractual obligation pursuant to the 

provisions of Section 6 of Article XVI be created. 

General of Texas 

Prepared by John Reeves 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Hawthorne Phillips, Chairman 

W. V. Geppert, Co-Chairman 

Pat Bailey 

Dyer Moore 

Malcolm Quick 

Nell Wllllams 

STAFF LEGAL ASSISTANT 

A. J. Carubbl, Jr. 

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