THE ORNEY GENEIRAL 

OF mXAS3 

April,23, ~1959 

Honorable William S. Fly, Chairman 

Senate Finance Committee 

Honorable W. S. Heatly, Chairman 

House Appropriations Committee 

Austin, Texas 

Opinion NO. w-604 

,. ,. 

Re:, Validity of provisions 

fin the general approEations bill, 56th 

relating to pay-' 

ment'of rentals and 

services by 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 

appropriations bill 'for the 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: 

Opinion W-573 (1959), it 

"The Legislature cannot by rider in 

the appropriation bill amend a general 

law. Attorney General's Opinion ,V-1304 

(1951). Therefore, th% ,Degislature cannot transfer special funds to the General 

. 

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

Revenue Fund by an appropriation bill wlthout first amending the general law creating 

the special fund. The Legislature does 

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 Article VIII of 

the Constitution {of Texas, relating to the 

diversion of special funds. Gulf Iosurance 

Company v. James, 143 Tex. 42q, 185 S.W.2d . 

( 945) Attorney General's Opinion 

E4i (19i9). 

"Item 16 to the appropriations to the 

Attorney General appropriates money for the 

purposes authorized by the general law and 

it keeps such special funds In a separate 

account to be expended only for the purposes 

authorized by the Legislature by general law. 

Since the appropriation is neither contrary 

to any constitutional provision nor to the 

general law, it is our opinion that such itey 

of the appropriation bill Is, constitutional. 

Since the occupancy of such space is necessary to 

the carrying out of.the particular duties of.an'agency of 

the State, the Legislature is authorized to appropriate 

moneys for the payment of rent. The question presented 

by you concerns whether this rent can be charged-by the 

Legislature for the occupancy of State-owned space when 

the Legislature determines that it is to the best Interest 

of the State Building Program to make such charge. There 

Is no question'concerning the reasonableness of the rate 

of 309! per square foot for State-owned space and such occupancy is for a governmental purpose. 

The rent authorized to be paid by the above quoted 

provisions of the appropriations bill is to be deposited 

in the State Building Fund which was created by Section 

51-b of Article III: of the Constitubion o,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 Comptroller to 

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,funds is.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 

conformity with the principles announced*fn.~Oplnion 

w-573. .' 

.,. 

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

"Its committees having determined" 

that the reasonable cost of the services 

rendered by administrative and service l 

departments or agencies of the State to 

the Board of Barber Examiners in carrying 

out its statutory duties and responsibilities to be the annual sums herein indicated, 

the Legislature hereby 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 ,each fiscalyearthesumof. . . . $ $ . "' 

In Attorney General's Opinion W-573, this office 

stated: _~ 

"In response to the last paragraph of 

"your request relative to suggestions this 

office might make, you are advised that the 

Legislature may carry out its intended purpose in one of two alternative methods. 

"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'may provide 

in the General Appropriation Bill~a method 

for the reimbursement to the General Revenue Fund by establishing the machinery ,for 

a factual determination of the value cf the 

services rendered by administrative end 

servic@departments, or the actual..jc,o'st of 

the services rendered. This may be aocomplished by designating the Legislat,tiv@ 

. ;; 
: 

Hon. WI&m S. Fly & Hon. W. S. Heatly, ,page 4 (~~-6~04) 

Budget Board or the Governor or some other 

agency designated by the Legislature, and, 

after a factual determination, the authority to execute the proper certification of 

the value of the senvices rendered. 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 

Opinion WW-573. The Legislature by this language has 

provided for the reimbursement to the General Revenue 

Fund for services rendered by administrative and service 

departments financed from the General Revenue' Fund, and 

has made this reimbursement based upon a factual determination of the value of the services rendered by such 

departments prior to .the reimbursement being made., Therefore, you are adlvsed that these provisions comply with 

the principles announced in Attorney General's Opinion 

WW-573 and are valid. 

SUMMARY - 

The Legislature is authorized 

to make appropriations for the 

payment of rent of space in 

State-owned buildings and have, 

such appropriations deposited 

into the proper fund. 

The Legislature may provide in 

the General Appropriation Bill 

fork the reimbursement to the 

General Revenus Fund for services rendered by the administrative and service departments 

financed from the General Revenue Fund, provided that a method 

is prescribed therein for making 

a factual determination of the 

value of the services rendered 

by administrative and service " 

departments, or the actual cost' 

of the services rendered by the 

administratiye apd service depart- 
Hon. Will lam S. Fly & Hon. W. S. Neatly, page 5 (~~-604) 

ments financed from the General 

Revenue Fund. Attorney General's 

Opinion WW-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