Ausrm. TszxA6 rsrll 

May 2, 1974 

The Honorable Ben F. McDonald, Jr., 

Executive Director 

Opinion No. H- 292 

Texan Department of Community Affairs 

P. 0. Box 13166 Capitol Station 

Austin, Texas 78711 

Dear Mr. McDonald: 

Re: Construction of rider 

to Appropriation Act 

with reference to grants 

to’hulti-purpose human 

resource delivery organimations” 

Your opinion request concerns the proper construction of an appropriation to your 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 to this 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 of the State of Texas, which comply 

with guidelines established by the Governor, and for the 

administration of these contracts. The guidelines eetablished by the Governor must insure that the organizations 

operate programs designed to meet 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: 

p. 1361 
, ‘ 

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 a private nonprofit corporation, such a# 

a Community Action Agency, in eubmitting an 

application to the Department to receive funds 

from this appropriation under guideline8 approved 

by the Governor, need to have the application 

specifically approved by the local general purpose 

governments in whose areas it operate8 if there 

same governments have prior thereto already 

given general (carte blanche) approval to the 

corporation to operate as a whole in their areae? 

If so, would the genera1 approval have to be updated or may we rely upon the existing permiraion? Should we require evidence of non-revocar 

tion of such general approval (Certificate of Good 

Standing) ? ” 

We beli’eve your first question is answered affirmatively by the provisions of Artic’le 4413(201), V. T. C. S., which creates your department. 

Section Z(3) of this Act defines “Local government” as: 

“a county; an incorporated municipality: a special 

district; any other legally constituted political subdivision of tbe State; or a combination of political 

eubdivisiona. ” 

Section 4 specifies 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. 1362 
The Honorable Ben F. McDonald, Jr., page 3 (H-292) 

“(9) encourage cooperative actlon by local 

governmentn whcre~ appropriate;” 

Section 138 pertains to “Multipurpose human reeource center@. ” Ita 

pertinent provision8 are: 

“(a) In order to: pr.ovide for “tha mort 

effective and efficient delivery of human resource 

services to the poor population, aa well a(1 the 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 of human resource 

service6 with the State ie eligible to locate ataff in a 

community multipurpoee human resource rervice center. ” 

We believe that the effect of the 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 of the appropriation. 

Your second question involves the appropriations rider. One effect 

of the rider is to give the Governor authority to control the expenditure of 

these funds through the establishment of guidelines for the approval of local 

organizations. We have found no specific authority in Article 4413(201) for 

the governor to exercise such power. Attorney General Opinion M-1199 

(1972) provides at page8 2 and 3 that: 

“Aside from the constitutional substantive veto 

power of the Governor granted in Article IV, Section 

14, Texas Constitution, there is no other authority provided for him to have a continuing veto power over expenditure of appropriated funds. Any attempt by the 

Legislature to delegate to the Governor the power to 

p. 1363 
, * 

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

exercise a continuing veto over euch expenditure8 

and at his cwndiacrktionwouldccnstitute an attempt 

to increase the Governor’s veto power. Furthermore, if the Legislature attempted to grant such 

power by a rider in an appropriation bill, such 

rider would amount to general legislation in violation of Article 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 and general law) m~ay be considered as multipurpoee human resource delivery organizations for the 

purposes of distribution under appropriations to the Texas 

Department of Community Affairs. A rider to the .appropriation to the Department of Community Affair8 is invalid 

inaofar as it requirea compliance with guidelines ertablirhed 

by the Governor. 

Very truly yours, 

JOHN L. HILL 

Attorney General of Texas 

APPROVED: 

DAVID M. KENDALL, Chairman 

Opinion Committee 

p. 1364