Arrs~xiw ,&TEXAS 

October 6, 1965 

Honorable Robert S. Calvert Opinion No. C-522 

Comptroller of Public Accounts 

Austin, Texas Re: Whether a rooming house 

qualifies as a commercial 

lodging establishment as 

that term is used in Section 

15 of Article V of the 

General Appropriation Act 

of 1965 and related quesDear Mr. Calvert: tions . 

Your request for an opinion on the above subject matter 

asks the following questions, in view of the provisions of paragraph (a) of Section 15 of the General Appropriation Act of the 

59th Legislature: 

"1. Does a rooming house qualify as a 

commercial establishment? 

"2 . Does an apartment qualify as a commercial establishment? 

. . . 

"3. If you hold that the renting of an 

apartment follows within the definition of 

'commercial lodging', what would two or more 

State employees renting and living in the same 

apartment be entitled to for reimbursement on 

a per diem basis? 

"4. At what rate of per diem would an employee.'be entitled to who secures lodging at 

YMCA, YWCA, and membership clubs? 

"5. Would a statement or billing received 

as a result of the use of a credit card from a 

company other than a commercial hotel, motel, or 

other coannercial lodging establishment, entitle 

the employee to qualify under the $12.00 per 

day per diem rate?" 

-2457- 
-. 

.~ ; 

. 

Hon.. Robert S. Cslvert, Cslvert, page,2 (Ce522 1 

,, This office in Opinion,~NoVo. C-472 defined .a ,"comer&aP 

.,. ~eatabliahxaantt' aa~followa: : 

"In i&w of ~the foq*goiig,, .it iS ciar op+lon 

that thb phrase ‘comnerciai .h'otelr mot,el, or other 

cokaarcial lodging eatabliahment,~ refers to.thoae' 

puqtia, firm,' corporations;, aaaocfati~ona or ., 

-'eatabliahmatitar engagsd in the buaineaa of furnishinglodging to the public gazketally for pay, '* D .'I : 

.~ ,' ~, 

,' ~A8 p&nted'.out in .the abo+o$inion, UArtlcle 4596, 

Raviaod~.Civil~Statutea.of Texaa, 1925,.deftnea a hotel or inn as 

*&place' whereItha,buaineae is.,@ furnish f&d and lodgin4 or 

of&d; to 'all who,kp~l~ and. wy theragor.“’ (EnWaai? added.) 

,100 l .uch, ra8trlction .I8 placed on the.tem Wnmercia1 lodging 

aatabli9hmaRt"; The only roQaireuunti ,of the latter are that > 

tli~.~mfurriiali lodg,ing to, the.vublic asnerallv for MY I4 0 

'. (Nmphaaia added,) 

",Applying the,above.definitfon to questions 1, 2,. and 

4, rooming houaea,'apartmanta, and YMCAla~and YWCA's fail within 

tha .definition of "cokercial loQq.ing~establishment". Conae- 

.q~~tlf,c~any State employae who mat remain out of town in order 

~to~perfbrm his, duties for either a .day or,aeveral months and 

.,+18&a .to. stay at one ,of the above,:18 entltled'to~ twelve dollars 

(S&2) pur ‘diem. 

.Quaation number 4 doaa',not reveal the typa membership 

. . cl&~ to'which you ark referring. '.If meaberahip~is~both limited 

and la d pre~aquiaite for.using tha facilitiea,of the club, its 

is ,not’ R,,Comaaklal eatabliahmnt~open to the. Q&UC even though 

it my 'require iemReration.frm, tha individual member who stays 

overnight.' 'For example, a 'social fraternity would be a ambertih,ip .clubwhich w.ould.furniah -lodging, to its itinerant'mcmbera 

for pay'buttiould'not be a coma~oiel establishment yithin the 

~. above hef inition. 

:. 

.In a&wer.to queatiofi nun&et 3,~ paragraph (e) of '. 

. . '...'&ioR~ i5 of.~Aiticle,'Vof~ the general Appropriatfou~,Act of the 

59th LugUlatutr. ptoyldea : 

.~ 

., 

.‘~~, 'IRatea bf ,allcwance.: Nach employee traveling 

.o@ #t$te buainaaa. inside the bouudRri& of me 
Hon. Robert S. Calvert, page 3 (C-522 ) 

State of Texas shall be allowed, in ,lieu of actual 

expenses incurred for meals and lodging, a flat 

per diem rate not to exceed twe~&ve dollars ($12) 

provided there is attached to his expense account 

when submitted a 'Paid' bill or receipt from a 

commercial hotel, motel, or other commercial 

lodging establishment for his lodging, but provided further that if such receipt is not submitted, the flat per diem rate shall not exceed 

seven dollars ($7)." 

Section 15 of Article V places no limitation on the 

actual cost of lodging: it merely requires that the State employee has paid for his lodging and such payment is evidenced 

by a "Paid" bill or receipt from a commercial hotel, motel, or 

other commercial lodging establishment in order to qualify for 

the twelve dollar ($12) per diem rate. When two or more State 

employees are renting and living in the same apartment, each 

employee's expense for lodging is that portion which he pays 

of the total bill. Upon the submission by the State employee 

of a "Paid" bill or receipt, or copy thereof, indicating that 

the employee was one of the tenants, he will qualify for the 

twelve dollar ($12) per diem rate for the days covered by the 

receipt. 

Article 155533, Vernon's Texas Penal Code, defines 

credit card as follows: 

"Sec. 3. The term 'credit card' as used 

herein means an identification card, plate, 

coupon, book, device or number issued to a person, association of persons, or corporation by 

a person,or business organization which permits 

such person, associations of persona, or corporations to attempt to obtain, or obtain, or pay 

for items of value or services of any type, irrespective of whether such items of value or 

services can be obtained or paid for bv a credit 

card issued by the person or business organization 

offering the items of value or services or by 

another person or entity engaged in providing 

credit facilities for said person or business 

organization." (Emphasis added.) 

-2459- 
Ron. Robert S. Calvert, page 4 (C-522 ) 

The credit card represents a contract between the 

credit card holder and the issuer of the card. Once the credit 

card holder has used the card, he becomes liable to the issuing 

company. Texaco, Inc. v. Goldstein, 229 N.Y.S.2d 51, 34 Misc.26 

751 (Municipal Court of New York, 1962). Similarly, the issuing 

company becomes liable to the ,party who accepted the card. As 

between the credit card holder and the party accepting the credit card, the holder is relieved Of further liability and for 

purposes of Bection 15 of Article V the accepting party has been 

"paid" thus qualifying the Gtate employee for the twelve dollar 

($12) per diem rate upon the presentation of the statement or 

billing received from the company issuing the credit card. 

SUMMARY 

Apartments, boarding houses, YWCA's, and 

YEA"8 are commercial establishments and State 

employees are entitled to the twelve dollar ($12) 

per diem rate upon presentation of a "Paid" bill 

or receipt from one of the above. A membership 

club, that is limited as to its membership, and 

membership is a prerequisite for using the facili- 

-,. ties of the club, is not a "commercial lodging 

establishment" as that term is used in Section 15 

of Article V. 

TWO or more State employees may occupy the 

same apartment and qualify for the twelve dollar 

($12) per diem rate upon the presentation of a 

"Paid" bill or receipt, or copy thereof, which 

indicates that they were tenants. 

A statement or billing received as a result of the use of a credit card from a company 

other than a commercial hotel, motel, or other 

commercial lodging establishment entitles the 

employee to qualify under the twelve dollar ($12) 

per diem rate for the days covered by the bill 

or statement. 

-24&J- t 
I-Ion, Rbbert S. Calvert, page 5 (C-522 ) 

Very truly yours, 

WAGGONER CARR 

Attorney General 

Wade Anderson 

Assistant 

WA:ra 

APPROVED: 

OPINION COMMITTEE 

W. v. Geppert, Chairman 

Malcolm Quick 

Dougless Chilton 

Linward Shivers 

APPROVED FOR THE ATTORNBY GENERAL 

By: T. B, Wright