Dr. Dorman ?I. Wlnfrey Opinion No. C-673 Director and Librarian Texas State Library Re: Whether it is permissible Austin, Texas under, existing state laws, for the Texas State Library to make monetary grants to localpublic library units under Title I of the Library Services and Construction Act of 1964, Public Law Dear Dr. Winfrey: 88-269.

Your recent letter requests of this office an opinion on the following question:

"Whether it ispermissible, under existing state laws, for the Texas State Library tomake monetary grants to localpublic library units under Title I of the Library Services and ConstructionAct of 1964, Public Law 88-269." The Library Services and ConstructionAct as amended, public Law 88-269 (1964y, provides for increased federal assistance to promote the developmentof public library services to all areas without public library services,or with inadequate service. The Library Service and ConstructionAct provides as follows:
"Sec. 2.(a) It is the purnose of thisAct to promote the further extensionby the several States, of public library services to areas w!thout such services or with inadequate services. "(b) The provisions of thisAct shallnot be so construedas to interferewith State and local initiativeand responsibility in the conduct of public library services. The administration of public libraries, the selectionof personnel and librarybooks and materials, and insofaras

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consistentwith the purposes of thisAct, the determinationof thebest uses of the fundsproid d under thisAct shallbe reserved to the gtazes and their local subdivisions." (Emphasis added) Subsequent to thisAmendment, the 59th Legislature of Texas amendedArticle 5436,'VernonlsCivil Statutes,by adding the followingprovisions:

"(c) The commission is authorized to accept, receive, and administer federal, fundsmade ,available by grant or loan or both to improve thepublic librariesof Texas. "(d) The commissionmay enter into contracts or agreementswith the gcverningbodies and heads of the counties, cities, and towns of Texas tomeet the **terms** prescribedby the United States and consistentwith state law for the expenditure of federal funds for improvingpublic libraries."
As a result of these amendments, the Texas State Library and Historical Commission as agent for then State of Texas, prepared and secured the approval of a State'Plan for the administration of Federal Funds granted or loaned for the purposes set forth in the Library Services and ConstructionAct of 1964.

Also, the 59th Legislature of Texas in the General AppropriationBill (HouseBill No. 12, Regular Session, 1965), made provision for the expenditureof the above mentioned Federal Funds as follows:

"Forpersonal services, consumable supplies and materials, current and recurring operating expense and capital outlay Includingbooks and publications, for promoting developmentof public'library service, estimated tobe

. . . "Federalgrants made to or received in Federal Public Library FundNo. 118 are hereby appropriated for thepurposes for which such grantsmay be made; provided, however, that none of suchmoneys may be expended for personal serviceswithout advance written' approvalby'the Governor."

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Dr. Dorman H. Winfrey, page 3 (C-673)

Furtherprovision ismade in the GeneralAppropriation Act for the expenditureof such Federal Funds inSections 27 and 28 of Article V. Administering the funds in accordancewith the State Plan for the fiscalyear 1966, has necessitated that Texas State Library personnel handle the ordering of books and equipment, and because of the limitednumber of personnel, this procedure has become difficult and cumbersome. The authorization to make directmonetary grants of these Federal Funds to local public library units would alleviate theseproblems.

This office has earlier held that funds receivedby a State Agency for specificpurposes from the Federal Government are "trust or special funds" and must be expended in accordance with terms of the agreement under which the funds were received. Attorney 'General'sOpinions, c-530 (1965) and c-551 (1965).

The foregoingprovisions as set out in the Library Service and ConstructionAct, clearly establish thepurpose for which the funds are to be expended. The Legislature in amendingArticle .5436, as above queted, delegated - +n broad and general **terms -**  the task of shaping the administrative procedure for expending, receiving and administering federal fundsmade available to improve librariesof Texas and authorized such commission to enter into contracts of agreement with the governingbodies of local library authorities so as to achieve the purpose of providing adequate library facilities. In delegating such authority, it is clear that the Legislature intended for the Commission to devise a method or methods for administering the fundswhich would expeditiously, efficiently and effectively achieve the purposes of theAct. In so doing, the Legislaturemsni?ested a clear intent that the Commission use its sound discretion in devising the method for the administration of the funds.

In the light of the foregoing,we are of the opinion that the Texas State Library and Historical **CommiSSion may,**  under existing State Laws, make direct **monetary grants**  **to local**  public library units under Title I of the Library Service and ConstructionAct of 1964,as amended; subject to the promulgation, submission and approval of a new or revised State Plan allowing such grants by the Commissioner of Education of the United States Health, Education, and Welfare Department.

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Dr. Dorman H. Winfrey, page 4 (c-673 )

SUMMARY
Subject to the approval of a new or revised State Plan allowing directmonetary grants to local Public Library units, the Texas State Library and Historical Commissionmay make directmonetary grants to localpublic library units under Title I of the Library Services and ConstructionAct of 1964, Public **LOW** 88-269, **as** amended. Very truly your6,
WAGGONER CARR Attorney General

JPC:mll:mls
APPROVED: OPINION COMMITTEE
W. V. Geppert, Chairman Dean Arrington C. Daniel Jones, Jr. Kerns Taylor H. Grady Chandler
APPROVED FOR THE ATTORNEY GENERAL By: T. B. Wright

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