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TB[E ATTOECNEY GENERAL OF TEXAS CRAWFORD CLMARTIN **AUSTIN. TEXAS**  78711 ATroxzNEY aFebruary 28, 1967

Honorable John Connally Governor of the State of Texas Office, Capitol Building Austin, Texas Dear Governor Connally: OpinionNo. M- 31 Re: Construction of House Bill 87, Acts of.the 60th Legislature,Regular Session, 1967. Your request on the above'subjectasks the following questions concernln visions of Section & the expendituresof monies under the proof House Bill 87, Acts of the 60th Leglslature,Regular Session, 1967:

"(1) What is the latestdate on which money appropriated therein for the Texas exhibit at HemisFalr 1968 can be committed? "(2) Can suchmoney appropriatedbe used for operating expenses of the Institute of Texan Cultures for the 1968-69biennium?" 'HouseBill 87 passed the House of Representatives on January 24, 1967, by the following votes: - 121; nays - 23; passed the Senate on February 13, 1967,by'tte"following votes: yeas . the Governor ~n2~;b~~~~y 20, 1967. - 7; and one paired and was approved by
Since House Bill a7 was passed by the Legislatureby a record vote of two-thirds of all the members elected to each House the effectivedate of House Bill 87, Acts of the 60th Leglslature is February 20, 1967. Section 4 of House Bill a7 reads as follows~ "Sec.4

4. In addition to the moneys appropriated in Section 6 of Senate Bill No. 166, Chapter 443, Acts of the 59th Legislature,Regular Session, 1965, $5,500,000 Is hereby appropriated from the GeneralRevenue Fund to the Texas Tourist DevelopmentAgency. The additional moneys appropriated in this Act and any unexpended

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balance in the appropriationof Chapter 443, Acts of the 59th Legislature,Regular Session, 1965, shallbe used In accordancewith the provisions of Chapter 443, Acts of the 59th Legislature, Regular Session, 1965." It is noted that while appropriationsmade by the provisions of Sections 1, 2 and 3 of House Bill 87 were made for the fiscal year ending August 1, 1967,monies appropriated in Section 4 were not made for any particularperiod of time. Therefore, the appropriation ismade for the entire period of time authorized by the Constitution of Texas.

Section 6 of ArticleVIII of the Constitutionof Texas provides that no appropriation of State fundsmay be made for a term ofmore than two years. Therefore, the last date on which monies appropriated In Section 4 of House Bill 87, Acts of the 60th Legislature can be legally encumbered Is February 19, 1969, the end of a two year period~from the effective date of House Bill 87.
(1967): It was stated in Attorney General's OpinionM-13

"Section6 of Article VIII of the Constitution of Texas provides that no appropriation of State fundsmay be made for a term of more than two years. Therefore, generally speaking, personal servicesmust be paid out of approprlationsmade for the year during which the personal servicesare rendered. Attorney General's Opinions O-2815 (1940)and V-1397(1952). It is clearly settled,however, that an appropriation for one year in the case of capital expendituresmav legallybe encumberedby contract even though the project for which it is spentwill not be completed and paid for until succeedin Attorney General's V-1139 (1950), WW-40 (1957),and Monies appropriated in Section 4 of House Bill 87, of the 60th Legislatureare required to be used in accordwith the provisions of-Chapter 443,,Acts of the 59th LegisActs ante lature,Regular Session, 1965. Chapter 443, Acts of the 59th Legislature, 1965, Is an Act providing for a permanent structure at HemlsFalr, 1968, and the Institute of Texan Cultures is the

- 135-Honorable John Connally,page 3 (M-31)

officialdesignation of the property owned b Texas pursuant to the provisions of Chapter’ 43, Acts bf ‘the %’the State of 59th Legislature,Regular Session, 1967, located.inBejrjr County, Texas, on the’groundknown as ‘HemisFair,1968. Section 6 of Chapter 4438 Acts of the 59th Legislature,Regular Session, 1965, reads as follows:

‘To carry out the purposes of the Act, the following appropriation Is herebymade: ‘Fromthe General Revenue Fund to the Texas Tourist DevelopmentAgency, for a permanent building of approximately 115,000 square feet; for grading, clearing,paving, retaining walls, parking, underground facilities, landscaplng, lighting, special effects, and other necessary expenses lnciudlngplanning for the exhibits: $4,%000. (Emphasisadded) In answer to your second question,you are advised that the monies appropriated in Section 4 of House Bill 87, Acts of the 60th Legislaturemay be used for operating expenses of the property owned by the State of Texas known as the Institute of Texan Cultures for the two year period ending February 19, 1969. SUMMARY

Monies expended pursuant to Section 4 of House Bill 87 cannotbe legally encumbered after February 19, 1969.’Article VIII, Section 6, Texas Constitution.’Monies appropriatedby the provisions of Section 4, House Bill 87, Acts of the 60th Legislature,Regular Session, 1967,may be expended for a permanentbuilding and grounds known as the Institute of Texan Cultures including all operating expenses connected therewith. Vedtruly yours,

Preparedby John Reeves Assistant Attorney General

-136-Honorable John Connally,page 4 (M-3i)

APPROVED: OPINION COMMITTEE Hawttiorne'

Phillips-,

Chairuian W. V. Geppert, Co-Chairman Alan Minter P&t Bailey Malcolm Quick John Banks STAFF LEGAL ASSISTANT: A. J. Carubbi, Jr.

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