Honorable Robert S. Calvert 

Comptroller of Public Accounts 

Capitol Station 

Austin, Texas 

Opinion No. WW-300 

Re: Whether certain approprlations to the Board for 

Texas State Hospitals and 

Special Schools for the 

payment of refunds are 

Dear Mr. Calvert: 

supported by pre-existing 

law. 

You have requested whether the appropriations 

contained in Item 1 under the heading of pay patient refunds 

and Section 3 of the riders to the appropriations to the 

Board for Texas State Hospitals and Special Schools are 

supported by pre-existing law. 

Item 1 under the heading of pay patient refunds to 

the appropriation to the Board for Texas State Hospitals and 

Special Schools contained in Article II of House Bill 133, 

Acts of the 55th Legislature, 1957, provides: 

“For the Years Ending 

August 31, 

1958 

August 31, 

"Out of General Revenue 

1959 

Fund: 

"1. There is hereby appropriated out of the 

General Revenue Fund to 

the Doard for Texas 

State Hospitals and 

Special Schools for the 

Payment of pay patient 

refunds, which are 

approved by the business managers of the 

respect-tve institutions 

under the Hospital 

Roard, the sum of $10,000 $10,000 
Honorable Robert S. Calvert, Page 2 (WW-300) 

"All receipts to institutions under the Board 

for Texas State Hospitals and Special Schools for 

pay patient collections shall be deposited to the 

credit of the General Revenue Fund. Disbursements 

of refunds shall be made by the Central Office 

only after receiving approval of the Butiness 

Manager of the respective institutions. 

Article 3196a, Vernon's Civil Statutes, provides for 

the admission and care of mentally ill persons and authorizes 

the Board to charge relatives and guardians of the estate of 

mentally Ill patients for the care and treatment of such 

patients. Attorney General's Opinion WW-253 (1957). There is 

no provision, however, in Article 3196a or any other article 

applicable to the Board for Texas State Hospitals and Special 

Schools which provides for the payment of refunds of money collected for the care and treatment of patients at the institutions under the control of the Hospital Board. 

Section 4li of Article III of the Constitution of Texas 

provides: 

"The Legislature shall provide by law for the 

compensation of all officers, servants, agents and 

public contractors, not provided for in this Constitution, but shall not grant extra compensation 

to any officer, agent, servant, or public contractors, after such public service shall have been 

performed or contract entered into, for the perform- 

&nce of the same; nor grant, by appropriation or 

otherwise, any amount of money out of the Treasure 

of the State, to any individual, on a claim, real 

or pretended, when the same shall not have been provided for by pre-existing law; nor employ any one in 

the name of the State, unless authorized by preexisting law." (Emphasis added) 

This provision has been construed by the courts of 

this State to mean that the Legislature cannot appropriate State 

money to any individual "unless at the very time appropriation 

is made there is already in force some valid law constituting 

the claim the appropriation is made to pay 2 legal and valid 

obligation of the State." Austin National Bank~~v. Sheppard, 123 

Tex. 272, 71 S.W.2d 242 (1934). See also Fort Worth Cavalry 

Club v. Sheppard, 125 Tex. 339, 83 S.W.2d 660 (1935); State v. 

Stcck Company, 236 S.W. 2d 866, Tex. Civ. App. (1951, error ref.); 

Attorney General's Opinion WW-96 (1957); Attorney General's Opinion WW-150 (1957). By a legal obligation referred to above, is 

meant such an-obligation aswould form the basis of a judgment 
. 

Honorable Robert S. Calvert, page 3. (ww-300 ) 

against the State in a court of competent jurisdiction in the 

event it should permit itself to be sued. Austin National Hank 

v. Sheppard, supra. 

In Corsicana Cotton Mills v. Sheppard, 123 Tex. 

71 S.W.2d 247, it was held that where a corporation volun352, 

teers the payment of taxes, a legislative approprlatlon to refiiKdXuci-F~Zy%En~ -.-_ _o axe-s violated the provisions of Section 

~o~:,Art~,c~e-_I‘If in,-_that ~the corpo.ratlon-liKd~dIaim against the Eale for ~K.-~~-.-g-.~-.~~~ "a~~'..~~~"~~-~~",‘t~~.~~p~io"pria _ 

tion was ma6~,-~~~,~~~~~~~~~~~~~~~, _,,,~,_," pproprIatI8n was noXXi$p 1'- tITF.~a. ..- ,,.. ~.~.. ~. .._..._. ~,-", 

ported by pre-existing, law. However, L‘ ~~.~ .Eexd.-T- .se~a~e~. 

Akin Product Company, 155 Tex. 286 S.W.2d 110, that taxes 

paid under duress of an unconstitutional act may be refunded. 

In view of the foregoing, it is our opinion that the 

above quoted appropriation appropriates money for refund of 

moneys paid both voluntarily and under duress. Insofar as the 

appropriation appropriates money for the payment of refunds that 

do not constitute a legal obligation as that term is defined in 

Austin National Hank v. Sheppard, supra, such appropriation is 

not supported by pre-existing law. Insofar as the above quoted 

appropriation appropriates money for refund of moneys paid under duress, the appropriation is 

You are, therefore, 

supported by pre-existing law. 

advised that the payment from this appropriation for pay patient refunds will depend on the facts in 

each case in which the claim for refund is presented. 

Section 3 of the riders to the appropriation to the 

Hoard for Texas State Hospitals and Special Schools in House 

Bill 133 provides: 

"Sec. 3. Services to employees and guests. In 

order to reimburse equitably the appropriation items 

in this Article from which expenditures are made fork 

services to employees and guests, the following reimbursement rates and rules shall apply: 

"Services furnished by the institutions to 

employees shall be valued at not less than the 

following: 

:: 

i 

30 per month for meals for adults 

15 per month for meals for children, ages 

1: 

i 

2 through 15 

5 per month for laundry 

15 per month for lodging, excluding 

medical personnel of hospital system 

"$15 per month per room for the first room 

for lodging of medical personnel of 
Honorable Robert S. Calvert, page 4. mi-300) 

hospital system and $10 per month per 

room for each additional room 

"Collection for services rendered employees 

and guests shall be made by E deduction from the 

recipient’s salary or by cash payment in advance. 

Such deductions and other receipts for these services from employees and guests are hereby reappropriated to the 'Other Operating Expenses' of the 

institution. Refunds for excess collections shall 

be made from the appropriation to which the collection was deposited. 

"Employees residing away from the grounds of 

the institutions in which they are employed shall 

pay cash for only such meals at the institutions 

as they may actually take, and there shall be no 

deductions from the regular salary payment due 

employees of the respective institutions for 

institutional services or emoluments not actually 

received by said employees." 

In Attorney General's Opinion ~11-265 (1957), it was 

held: 

"In Opinion m-96 this office held that the 

General Appropriation Bill may direct appropriation 

of money and may detail, limit or restrict the use 

of funds so appropriated where such provisions are 

necessarily connected with and incidental to the 

appropriation and use of the funds. 

Daughters of the Republic of Texas, 

156 S.W. 197 (1913). 

"Such provisions concerning'accounting procedures and directions as to the method of expenditure 

and reimbursement of certain funds are permissible 

and proper so long as they do not conflict with the 

general law on the subject. 

Opinion V-1254. 

Attorney General's 

However, general legislation 

constitutes a separate subject and cannot be included within a General Appropriation Bill, and a 

rider to a general appropriation bill cannot 

repeal, modify or emend an existing general law. 

Moore v. Sheppard, 144 Tex. 537, 192 S.W.2d 559 

Tex. 451, 49 S.W. 

57 Tex. 203 (1882); 

Attorney Genvio. V-1254." 

Applying the principles of law announced in Attorney 

General's Opinion ~~-265, it is noted that Section 3 of Article 
Honorable Robert S. Calvert, Page 5 (WW-300) 

TI not only provides for the emoluments of employees of the 

several Institutions under the jurisdiction and control of the 

Hospital Board, but also attempts to authorize expenditures 

for services to guests. Such provisions do not concern the 

direct appropriation of money nor concern accounting procedures and directions as to method of expenditure, but 

authorize the expansion of services which are not now 

authorized by general law. To this extent its provlslons 

constitute a proper subject for general legislation in 

violation of Section 35 of Article III of the Constitution of 

Texas. Attorney General's Opinion W-96. 

Therefore, you are advised that Section 3 of 

Article II, House Bill 133, Acts of the 55th Legislature, 

1957, Chapter 385, is supported by pre-existing law insofar 

as Its provisions are applicable to employees of institutions 

under the jurisdiction and control of the Hospital Board. 

You are further advised that its provisions are not supported 

by pre-existing law Insofar as it applies to "guests", and 

further, such provisions violate the provisions of Section 35 

of Article III of the Constitution of Texas. 

SUMMARY 

Moneys appropriated for pay 

patient refunds are supported 

by pre-existing law insofar 

as it authorizes the payment 

of refund of moneys collected 

under duress. Section 3 of 

Article II of House Bill 133, 

Acts of the 55th Legislature, 

is supported by pre-existing 

law insofar as it provides 

for the emoluments of employees of the institutions under 
Honorable Robert S. Calvert, Page 6 (W'W-300) 

the jurisdiction and control of the 

Board for Texas State Hospitals and 

Special Schools. 

Yours very truly, 

WILL WILSON 

Attorney General of Texas 

Assistant 

JR:jl 

APPROVED: 

OPINION COMMITTEE 

Geo. P. Blackburn, Chairman 

J. Mark McLaughlin 

Leonard Passmore 

C. K. Richards 

Marietta Payne 

REVIEWED FOR THE ATTORNEY GENERAL 

BY: 

James N. Ludlum