### GENEIRAL THE ORNEY

OF mXAS3

April,23,~1959

HonorableWilliam S. Fly, Chairman Senate Finance Committee

HonorableW. S. Heatly, Chairman House AppropriationsCommittee Austin, Texas Opinion NO. w-604 ,. ,.

Re:, Validity of provisions finthe general approEations bill, 56th relating to pay-' ment'of rentals and servicesby special Dear Messrs. Heatly and Fly: fund agencies.

You have requested our opinion on the validity of proposed provisions to be incorporated in the general appropriationsbill 'forthe next biennium. An example of these provisions is as follows:

"For th,e

payment of office rent and shop rent for examinations;rental amounts for State-owned space are to be computed at the rate of 3C$ per square foot per 'month,and the Comptroller shall transfer from this appropriation item the appr~opriate rental sumto the State Building Fund If the occupied space,isin buildings constructed from such fund, or to the General Revenue Fund if the occupied space Is in buildings otherwise acquired.

. . . ; $ $ .”

In Attorney General's
was held: OpinionW-573 (1959),it

"The Legislature cannot by rider in the appropriationbill amend a general law. Attorney General's Opinion ,V-1304 (1951). Therefore, th% ,Degislaturecannot transfer special funds to the General .

‘,Hon. William S. Fly & Hon. W. S. Heatly, page 2 (W-604')

Revenue Fund by an appropriationbill wlthout first amending the general law creating the special fund. The Legislaturedoes have the power,however, to transfer statutory special funds to the General Revenue Fund by a general law without violating the provision of Section 7 of ArticleVIII of the Constitution{ofTexas, relating to the diversion of special funds. Gulf Iosurance Companyv. James, 143 Tex. 42q, 185 S.W.2d . ( 945) Attorney General's Opinion E4i (19i9).

"Item 16 to the appropriations to the Attorney General appropriatesmoney for the purposes authorizedby the general law and it keeps such special funds In a separate account to be expended only for the purposes authorizedby the Legislatureby general law. Since the appropriation is neither contrary to any constitutionalprovision nor to the general law, it is our opinion that such itey of the appropriationbill Is,constitutional.
Since the occupancy of such space is necessary to the carrying out of.theparticular duties of.an'agency of the State, the Legislature is authorized to appropriate moneys for the payment of rent. The questionpresented by you concernswhether this rent can be charged-by the Legislature for the occupancy of State-owned spacewhen the Legislaturedetermines that it is to the best Interest of the State Building Program to make such charge. There Is no question'concerningthe reasonablenessof the rate of 309!

per square foot for State-owned space and such occupancy is for a governmentalpurpose.

The rent authorized to be paid by the above quoted provisions of the appropriationsbill is to be deposited in the State Building Fund which was created by Section 51-b of Article III: of the Constitubiono,f: Texas when the space to be occupied is in buildings constructed from such fund and is to be deposited in the General Revenue Fund if the occupied space is in buildings otherwise acquired. This deposit is to be made by requiring the Comptrollerto transfer from the appropriation item for rent to the State Building Fund or the General Revenue Fund as above indicated. Therefore the transfer is to be made to the proper fund and the question of transfers of special,fundsis.thereby removed.Hon. William S. Fly + Hon. W. S. Reatly, page 3 (~~-604)

You are therefore advised that the above quoted language is valid since it carries out the purpose of the general law creating the special funds and Is in conformitywith the principles announced*fn.~Oplnion w-573. .'

.,.

Your second question concernsthe following provisions to be included in the general appropriationsact:

"Its committeeshaving determined" that the reasonable cost of the services renderedby administrativeand service l departments or agencies of the State to the Board of Barber Examiners in carrying out its statutoryduties and responsibilities to be the annual sumsherein indicated, the Legislaturehereby adopts the foregoing fact-finding;and for the purpose of paying for such services there Is hereby appropriated and the Comptroller shall transfer from the Barber Examiners Fund (No. 40) to~the General Revenue Fund at the end of ,eachfiscalyearthesumof.

. . . $ $

."'

In Attorney General's OpinionW-573, this office stated: _~

"In response to the last paragraph of "yourrequest relative to suggestions this officemight make, you are advised that the Legislaturemay carry out its intendedpurpose in one of two alternativemethods. "First,the Legislature can amend the general law creating each special fund so as to authorize a transfer of designated amounts to the generalyfund, as determined by the Legislature.
"Second,the Leglslature'mayprovide in the General AppropriationBill~amethod for the reimbursement to the General Revenue Fund by establishingthe machinery ,for a factual determination of the value cf the servicesrenderedby administrativeend servic@departments, or the actual..jc,o'st of the services rendered. Thismay be aocomplished by designating the Legislat,tiv@

. ;;:

Hon. WI&m S. Fly & Hon. W. S. Heatly, ,page4 (~~-6~04)

Budget Board or the Governor or some other agency designatedby the Legislature,and, after a factual determination, the authority to execute the proper certificationof the value of the senvicesrendered. The Comptroller should then be given authority to transfer from the Special Fund to the General Revenue Fund upon such a certificate."

.,, In your request you state that the ab&e,quoted provisionsto be Included in the Generals Appropriations :'. Act have been drafted in light of Attorney General's OpinionWW-573. The Legislatureby this languagehas provided for the reimbursement to the General Revenue Fund for servicesrenderedby administrativeand service departments financed from the General Revenue' Fund, and has made this reimbursementbased upon a factual determination of the value of the servicesrendered by such departmentsprior to .thereimbursementbeing made., Therefore, you are adlvsed that these provisions complywith the principles announced in AttorneyGeneral's Opinion WW-573 and arevalid.

SUMMARY - The Legislature is authorized to make appropriations for the payment of rent of space in State-ownedbuildings and have, such appropriations deposited into the proper fund.
The Legislaturemay provide in the General AppropriationBill forkthe reimbursement to the General Revenus Fund for services renderedby the administrative and servicedepartments financed from the General Revenue Fund, provided that a method is prescribed therein for making
a factual determinationof the value of the services rendered by administrativeand service " departments, or the actual cost' of the servicesrenderedby the administratiyeapd servicedepart-Hon. Willlam S. Fly & Hon. W. S. Neatly, page 5 (~~-604)

ments financed from the General Revenue Fund. Attorney General's OpinionWW-573.

Yours very truly,

.
WILL WILSON Attorney General of Texas

Assistant

JR:rm

APPROVED:

OPINION COMMITTEE Gee. P. Blackburn, Chairman Riley Eugene Fletcher Jack Goodman Robert T. Lewis

REVIEWED FOR THE ATTORNEY GENERAL BY: W. V. Geppert