Dr. Raleigh R. Roas, M. D. 

Chairman 

Board for Texas State Iioepltals 

and Special Schools 

Austin, Texas 

Opinion NO. ~~-376 

Re: Whether the Board for Texas 

State Hospitals and Special 

Schools Is authorized to 

supplement the salary of the 

Executive Director of the 

Dear Dr. Ross: Board. 

We quote from your request for an opinion as follows: 

"This Board has been attempting for many months 

to employ an Executive Dlrectos capable of carrying 

out the duties and policies of this Board. Due to 

the diverse duties imposed by law In managing the 

State's mental hospitals, tuberculosis hospitals and 

special aohoola, It haa been,lmposaible for us to 

find a person with the neoeaaary quallfloatlons at 

the salary authorized In the current appropriation 

bill. 

"In addition to the above, the Executive Dlrector is now charged with the new and supplemental duty 

of conducting an extensive research $rogram and operation of several outpatient clinics. 

"In order for this Board to carry out Its 

responsibilities to the State of Texas and its 

patients and special students, particularly In the 

new, added and supplemental work fields occasioned 

by the various outpatient clinics and research proo-am J it Is essential that a person be employed who 

is capable of directing these various affairs. 

"A Texas charitable foundation has expressed 

an Interest in donating funds to the Board for the 
Dr. Raleigh R.Ross, ': " page 2 (WW-376) 

malntenanoe and operation of the research and 

out-patient clinic programs, and wishes to stlpulate that the Board,in Its discretion, may use the 

donated funds for supplementing the salaries of 

personnel In charge of these programs, if the use 

of the funda for this purpose would be lawful. 

Yherefore, your opinion Is respectfully requested as to whether or not'this Board may supplement the aalar 8 of the Executive Director from 

donated funds. 

The Board is 'authorized by general statute to accept 

and disburse gifts from private souroes. Article 693, Vernon's 

Civil Statutes, pertaining to the powers and duties formerly 

vested in the Board of'Contro1 with respect to eleemosynary 

institutions, provides In part: 

“8 . It may take and hold in truat any gift or 

devise of real or personal estate for the benefit of 

such institution and apply the same as the donor or 

deviser may direct." 

This power Is now vested In the Board for Texas State 

Hospitals and Special Schools by virtue of the provision in 

Section 2 of Chapter 316, Acts of the 5lst Legislature, Regular 

Session, 1949, whlch,reads: 

II 

* . . Effective September 1, 1949, the control 

and management of, and all rights, privileges, powers, 

and duties Incident thereto Including building, design and construction of the Texas State Hospitals 

and Special Schools which are now vested In and 

exercised by the State Board of Control shall be 

transferred to, vested in, and exercised by the 

Board,,for Texas State Hospitals and Special Schools. 

. . . 

In this opinion we shall assume that the donations 

will be made to the Board in accordance with Article 693. While 

this Article does not speolfloally authorize the Board to use 

donated funds for payment of salaries, we think the language 

used therein Is sufficiently broad to glve such authorization, 

provided same does not contravene the provisions of any other 

applicable statute. 

We need not concern ourselves with the question of 

whether the donated funds would be subject to legislative appropriation pursuant t,o Section 6 of Article VIII of the Constitution of Texas, for we In fact have an appropriation which we believe Is applicable to the limited situation presented by your 
Dr. Raleigh R. Ross, ?_ page 3 (w-376) 

request. In the current Biennial Appropriation Act (Acts 55th 

Leg., R.S., 19571; ch, 385, p. 907), there is the following provision under the heading of 'RESEARCH, TRAINING, AND OUT-PATIENT 

FACILITIES": 

"The Hospital Board Is authorized to accept any 

gifts, grants, or donations, real property or facilities, for the maintenance and operation of the Research Facilities or Cut-Patient Clinics; and such 

gifts, grants, or donations are appropriated for the 

purposes for which the donor stipulates, except such 

gifts shall not be used for traveling expenses of 

personnel employed at such facilities." 

It is significant that the only restriction placed 

upon the use of the subject funds In connection with the operation of research facilities or out-patient clinics Is that such 

funds may not be used for traveling expenses of personnel employed at such facilities. Implicit In this single restriction 

is the conclusion that such funds were appropriated for all 

other maintenance and operational costs,includlng the payment 

of salaries of personnel connected therewith. 

Chapter 4, Acts of the 55th Legislature, R.S., 1957, 

provides that the salaries of state officers and employees for 

the current biennium shall be in such sums or amounts as may be 

provided for by the Legislature in the General Appropriations 

The current Biennial Appropriation Act sets the salary of 

iki*Executlve Director of the State Hospital Board at $15,000.00 

for each year of the biennium. This fact alone, however, does 

not preclude the payment of additional compensation to the Director 

from gifts and donations. Attorney General's Opinion No. V-1476, 

written In 1952, concerned the legality of supplementing the compensation of the Comptroller of The University of Texas, from 

funds derived from gifts and bequests. Chapter 455, Acts of the 

52nd Legislature, R. S., 1951, contained the same provision, 

applicable to salaries for the 1951-1953 biennium, as Chapter 4 

of the 55th Legislature, supra. The: General Appropriation Bill, 

then In effect, set the~'salary of* the Comptroller at $l2,5OO.O0 

per year. There ,ware other proyisions in the Act, which provided: 

"The expenditure of the appropriations herein 

made and authorized, whether from the State General 

Revenue Fund, local institutional funds, or any 

other receipts and funds whatsoever, except bequests 

and gifts, shall be subject to the following provlsions: 

. . 

. . . 

"Sec. 24. Additional Salary Payments. No 
Dr. Raleigh R. Ross, page 4 (W-376 1 

Institution of higher education shall pay in 

excess of the salary rates specified for the 

ltemised positions In this Article, excepting 

only those which are designated as 'part-time.'" 

(Emphasis added.) 

The Opinion concluded, after considering the foregoing 

provisions of the Appropriation Act, tha~t the Legislature intended to limit the amounts of money that might be paid as salaries to 

these full-time administrative officials from funds derived 

from any source except gifts and bequests. The Opinion accordingly held that the proposed salary supplementation was authorized. 

Attorney General's Opinion No. WW-211 (1957) concerned 

the construction of an item in the appropriation bill which 

authorized the Central Education Agency to accept gifts, grants 

or allotments from the United States Government and to appropriate 

suoh funds for the "specific purposes authorized" by the Government or other donor. The Opinion held that such funds could be 

expended by the Agency as authorized by the Government or donor, 

and other provisions of the appropriation bill which limited the 

number of personnel employed in a particular category and set 

salary maximums therefor, did not apply to the expenditure of 

such funds, so long as such expenditures were in accordance with 

the terms of the colitract entered into 'between the Agency and 

the party making the gift or grant. 

We believe that the reasoning of the foregoing Opinion 

is applicable to your specific question. In appropriating gifts 

received for the operation of research facilities and out-patient 

clinics for the purpose for which the donor stipulates,-the 

Legislature has manifested a clear Intent that the funds so 

received and appropriated are In addition to and supplementary 

of the funds otherwise appropriated for such purposes. 

One further statute should be considered. Section 3(k) 

of Huuse Bill 3, Chapter 100, Acts of the 55th Legislature, 

Regular Session, 1957, provides: 

"(k) No officer or employee of a state agency, 

Legislator, or legislative employee shall receive 

any compensation for his services as an officer or 

employee of a state agency, Legislator or legislative employee from any source other than the State 

of Texas, except as may be otherwise provided by 

law." 

We have concluded above that the General Appropriation 

Act authorizes the use of donated funds for supplementation of 
Dr. Raleigh R. Ross, page 5 (m-376) 

salaries In connection with research and out-patient facilities. 

If this authorization Is In conflict with ChaDter 100. It is 

invalid as an attempt to modify or repeal a general law. State 

v. Steele, 57 Tex. 200 (1882); Moore v. Sheppard, 144 Tex, 

‘I92 S W 2d 5 9 

V-1254 i1951 7 

(1946); Attorney Ce 1's Opinions V-412 

and m-96 (1957). R%~er, we are of the 

that-this-Drovlslon of the-ADpropriatlon- Act Is not in conflict 

with Chapter 100. 

The above quoted Section 3(k) is a part of the code of 

ethics for state officers and employees enacted by the 55th Legislature. 

follows: 

Section 1 of the Act states the purpose of then Act as- 

"Section 1. Declaration of policy. It 1s 

hereby declared to be the pollcy~of the Leglslature that no officer or employee of a state agency, 

Member of the Legislature or legislative employee 

should have any Interest, financial or otherwise, 

direct or Indirect, or engage In any business or 

transaction or professional activity or inour any 

obligation of any nature which la In substantial 

conflict with the proper dlsoharge of his duties 

in the public interest. To implement such policy 

and to strengthen the faith and confidence of the 

people of Texaa In their Government, there Is hereby 

enacted a code of ethics setting forth standards of 

conduct to be observed by state offlcers and employees In the performance of their official duties. 

It is the Intent of the Legislature that this code 

shall serve not only as a guide for official conduct of the State's pub110 servants but also as 

a basis for dlaclpllne of those who refuse to abide 

by Its terms." 

Section 3(k) prohibits an officer or employee from reoelvlng compensation from any source other than the State of Texas, except as may be otherwise provided by law. Would the salary supplementation be received from the State of Texas, within the meaning 

of that phrase as uaed In thla section, 

"otherwise provld&d by law"? 

or Is the supplementation 

In either event, It would not be In 

violation of the Code. 

The Board has'the discretion to accept or refuse private 

donations which are tendered to It. We may assume that the Board 

will accept donations only after due deliberation and determlnatlon that the source of the donation and the conditions attached 

to its use would not be inimical to the interests of the State 

Government and the public welfare. The trust funds are held for 

disbursement on order of the Board and the donor loses all con- 
Honorable Raleigh R. Rosa, page 6 (w-376 1 

troI over their expenditure so long as the conditions of their 

use are complied with. Our conception of the purpose of Section 

3(k) 1s to prevent an employee from exposing himself to obllgatlon to or Influence by individuals or groups whose Interests 

might conflict with his fealty to the State and to the public. 

In receiving the salary supplement the employee would be dealing 

solely with the Board, and so far a8 he Is concerned the source 

of payment would be the Board acting as an agency of the State 

By the donation the trust funds lose their character 

zi ,‘sgzte funds and become,publio funds under the direct control 

of the State agency administering them. See Attorney Ceneral I s 

;Elnlon v-1365 (1951). This being true, it Is our opinion that 

e source of compensation would be the State of Texas within 

the meaning and spirit of Section 3 (k). But if we are wrong 

in this, the payment would nevertheless come wlthln the exception as being “otherwise provided by law. ” 

As already noted, there was legislative authorization for the payment of salaries from donations under the law 

existing at the time of enactment of the Code of Ethics. The 

exception in Section 3 (k) recognized and preserved all those 

provisions whioh sanctioned payment of compensation from other 

sources o To our mind, this 1s the clear meaning of the exception e It may be observed, further, that any other meaning 

would place the 55th Legislature In the position of condemning 

as unethical the acts of prior Legislatures which enacted 

these provisions. In adopting the Code of Ethics the 55th 

Legislature was not presuming to create a new and original 

concept of ethical behavior. The Code Is but an articulation 

of standards inherent in the duty of public employees to preserve the integrity of their employment. It is a reduction 

to written form of principles already embedded in the public 

conscience, so that persons less sensitive to those principles 

or less responsive to the restraints of conscience will know 

what standard of behavior the State demands of Its employees. 

It would require a much plainer negation than Is found In 

Section 3 (k) to say that the Legislature intended to condemn as unethical a course of conduct theretofore considered 

ethical or to forbid acts which had been authorized by prior 

Legislatures. The conclusion that the 55th Legislature did 

not intend In Chapter 100 to prohibit payment or supplementation of salaries from donations received by State agencies 

Is further borne out by the fact that the only restriction 

which the 55th Legislature placed on the expenditure of funds 

donated for research and out-patient facilities Is In the 

payment of traveling expenses. 

We are, therefore, of the opinion that the Board 

may, in its discretion, supplement the salary of the Executive Director from gifts or grants received by the Board for 

the purpose of maintaining and operating research facilities 
. 

-- - 

Honorable Raleigh R. ROSS, page 7 (w-376 / 

and out-patient clinics, provided such supplementation Is 

consistent with the purposes of such grants or gifts as specifled by the donor. The amount of such supplementation may be 

set by the Board, but should be commensurate with the special 

duties performed by the Director In connection with the malntenance and operation of research facllltles and out-patient 

clinics. 

As ,you have pointed out in your request, the Board 

Is confronted with the pressing problem of obtaining the 

services of a trained and capable specialist who cannot only 

accomplish the usual administrative duties of his post, but 

who can also give special attention and effort to the establishment and mafntenance of recently authorized out-patient 

clinics and the Improvement of hospital research facilities. 

The executive chosen will perform duties In connection with 

these clinics and facilities which,under ordinary circumstances, 

would not be incumbent upon this position. He will not be 

assuming an additional position, but additional duties, in this 

connection, will be transferred to the position of Executive 

Director. 

We wish to emphasize that the scope of this opinion 

is necessarily limited to the particular question submitted, 

and the answer to said question is grounded upon statutory 

authority which is not necessarily applicable to other posltions or situations. 

SUMMARY 

The Board for Texas State 

Hospitals and Special Schools 

may, In Its discretion, supplement the compensation of the 

Executive Director of the Board 

from gifts or grants received 

by the Board for the purpose of 

maintaining and operating research 

facilities and outhpatient clinics, 

provided such supplementation Is 

consistent with the purposes of 

such grants or gifts as specified 

by the donor. The amount of such 

supplementation may be set by the 

Board, but should be commensurate 
Honorable Raleigh R. Ross, page 8 (WW-376) 

with the special duties performed by the Director in 

connection with the maintenance 

and operation of research 

facilities and out-patient 

clinics. 

Yours very truly, 

WILL WILSON 

Attorney General of Texas 

1, ;x,, ~.. , P~C... e 

By 

onard Passmore 

Assistant 

iP:jl:zt 

APPROVED: 

CPINION COMMITTEE 

J. C. Davis, Chairman 

Cecil C. Rotsch 

Mary K. Wall 

REVIEWED FOR THE ATTORNEY GENERAL 

BY: W. V. Geppert