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May 2, 1974
The Honorable Ben F. McDonald, Jr., Executive Director Opinion No. H- 292 Texan Department of Community Affairs P. 0. Box 13166Capitol Station Austin, Texas 78711
Dear Mr. McDonald: Re: Construction of rider toAppropriation Act with reference to grants to ’hulti-purpose human resource delivery organimations” Your opinion request concerns theproper construction ofanappropriation toyour agency by the 63rd Legislature (1973) for the fircal years ending August 31, 1974, and August 31, 197,5. The appropriation is to provide “aeaiatanee to multi-purpose human reeource delivery organizations, ” which are not defined in the statute. A rider tothis appropriation provides as followa:’

“Funds appropriated above for assistance to

multi-purpose human resource delivery organizations may be expended only under contract with s&d organizationa, including private nonprofit corporations chartered under the laws ofthe State of Texas, which comply with guidelines established bythe Governor, and for the administration of these contracts. The guidelines eetablished by the Governor must insure that the organizations operate programs designed tomeet human resource needs of the people served, that the organizations have the approval of the local general purpose government in whose area they operate, and that the organizations are fi6cally, administratively, and programmatically accountable to the state. ” (Acts 1973, 63rd Leg., ch. 659, p. 1786,193O). You have asked two questions aa follows:

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The Honorable Ben F. McDonald, Jr,, page 2 (H-292)

“1.

“2. May counties and incorporated municipalitier (including home rule and general law) be considered as multi-purpose human resource delivery organizations for the purposes of distribution under the appropriation? Does aprivate nonprofit corporation, such a# a Community Action Agency, in eubmitting an application tothe Department to receive funds from this appropriation under guideline8 approved by the Governor, need tohave the application specifically approved by the local general purpose governments in whose areas it operate8 ifthere same governments have prior thereto already given general (carte blanche) approval tothe corporation to operate as awhole in their areae? Ifso, would the genera1 approval have to beupdated or may we rely upon the existing permiraion? Should we require evidence of non-revocar tion ofsuch general approval (Certificate of Good Standing) ?” We beli’eve your first question is answered affirmatively by the provisions ofArtic’le 4413(201), V.T. C.S., which creates your department. Section Z(3) ofthis Act defines “Local government” as:

“a county; anincorporated municipality: a special district; any other legally constituted political subdivision oftbe State; or a combination of political eubdivisiona. ” Section 4specifies your functions, among them, the following:

“(3) provide financial aid to local governments and combinations of local governments for programs which are authorized such assistance;”

p. 1362The Honorable Ben F. McDonald, Jr., page 3 (H-292)

“(9) encourage cooperative actlon by local governmentn whcre~appropriate;” Section 138pertains to “Multipurpose human 

### reeource center@. ” Ita pertinent provision8 are:

“(a) In order to:pr.ovide for “tha mort effective and efficient delivery ofhuman resource services tothe poor population, aa well a(1the total population, the Texas Department of Community Affairs may establish multipurpose human **resource** centerr in various communities in the State. ”

“(c) Any State or local governmental agency or private, nonprofit human resource agency that haa filed **a**State or regional plan for delivery ofhuman resource service6 with the State ie eligible to locate ataff in a community multipurpoee human resource rervice center. ” We believe that the effect ofthe above provision6 clearly allows conaideration of countier and incorporated municipalities (including home **rule** and general law) as multi-purpose human resource delivery organizations for the purposes of distribution ofthe appropriation. Your second question involves the appropriations rider. One effect ofthe rider is to give the Governor authority tocontrol the expenditure of these funds through the establishment of guidelines for the approval of local organizations. We have found no specific authority inArticle 4413(201) for the governor to exercise such power. Attorney General Opinion M-1199 (1972) provides at page8 2and 3that:

“Aside from the constitutional substantive veto power of the Governor granted inArticle IV, Section 14, Texas Constitution, there is no other authority provided for him tohave **a** continuing veto power over expenditure ofappropriated funds. Any attempt by the Legislature to delegate tothe Governor thepower to

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The Honorable Ben F.McDonald, Jr., page 4 (H-292)

exercise a continuing veto over euch expenditure8 and athis cwndiacrktionwouldccnstitute an attempt to increase the **Governor ’** **s** veto power. Furthermore, if the Legislature attempted to grant such power bya rider in an appropriation bill, such rider would amount to general legislation inviolation ofArticle III. Section 35, Texas Constitution

1,

. . . . Therefore, it is our opinion that the portion of the rider requiring compliance with guidelines eetablished by the Governor ia invalid. SUMMARY Counties and incorporated municipalities (including home rule andgeneral law) m~aybe considered as multipurpoee human resource delivery organizations for the purposes of distribution under appropriations to the Texas Department of Community Affairs. A rider tothe.appropriation tothe Department of Community Affair8 is invalid inaofar as it requirea compliance with guidelines ertablirhed by theGovernor. Very truly yours,

JOHN L. HILL Attorney General of Texas APPROVED:

DAVID M. KENDALL, Chairman Opinion Committee
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