Honorable, ffeorge H. Sheppard Comptroller

of PublicAoaounts Austin, Texas
Dear Sirr OpinionNo. O-2703 Be: Use of appropriation for one fisoal year to purchasesuppUss for use in the follcming fiscalyear of a biennim.
Your letter of August 31, 1940, subnitsseveral questions

for the opinionof this department.We quote such letter in full:
"In August of 1939 the Department of Publio Safety ordered a supply of **drivers*** licenses

to be used in the year 1940 and, at the time of the order, charged or attempted

to sncmber their 1939'appropriation mith the amoti of the purchase. The drivers*

liosnsss

?mre mot delivered

to the Departmeat

of Public Ssfetyu" til January,

194% The Department of Publio 8afetynow desirestc pay for these lioenses

out of the appropriation available

for the fisoalyear olssing August 31, 1939, o1a.imingtha-b at the time the orderwas made, they encumbered thpt appropriation

withthe rmtit of the purchase*
"Is this department authorized

to issue

warramt in paymentof this alaim against

the ,appropiation

made for the Deprhnent of Publio Safetyfor the year endingAugust 31, 39391 "If not, is this departam& authorized to issuewarrantagainst a subsequent appropriation

for the paymentof these lioenses? "The Department

of Public safety further olaimsthat the balanceremaining in the appropriation'for the maintenance

of the Drivers*

LicenseMvision for the year ending

August 31, 1940, is insufficient to pay claims thatars not outstanding

against the appropriation for the yew 1940,,if the depmbnent should be foroed to lxy the aocount in questioa out of the 1940 appropriation. "Ifyou hold that the socountiu questionshouldbe paid out of the appropllation for the fisoal year ending

August 31, 1940, and since there would be insuffioient

funds tc pay,this

aoaowt and &her outstanding aooouats,thea whioh of the'aooouats wouldmaintainpriority?' Drivers'licenses

are suoh supplies

as are consumed

by their'use. Expenditures

made in the purohasa of suoh supplies

fall under the head of expendituresfor currentoperating expsnsss,

ratherthan expenditures for fixturesHon. George Sheppard - page 2 (o-2703)

or permanent

operating

faoilities. Our OpinionO-2390 rules the situation which you presentin your letter,so that the cost of the supplyof drivers' licenses

purchased

for use in the year 1940 may not be charged againtithe appropriationmade

available

for the fiscalyear endingAugust 31, 1939. The item of expenditure must be oharged

againstthe appropriation with reference

towhioh, oonsidering the nature of the itsla aad the purposefor which it is to be used, the deparhnent making the expenditum was authorized to oontract. Thus, unless at the timethat the ooatraot for the nurahse of the supplyof drivers'lioenses for use during the year 1940 i8aa made,the approprg- . . ation available

for suoh purposes

for the fiscal year ending August 31, 194.0 was alreadyfully expended or enoumbered,

this expenditure

must be aharged against such appropriation end the arrant aooordingly issued.
In reply to your last question, you are advisedthat the question in realityinvolvedis not one cf priority of aooounts,

but of availability of the appropriation

to pay a partioulv aocount. lplen **a** department

of the State govenrment

**having** been provided with an appropriation available

for the purchase of certain supplies, purchases

suoh supplies

for use during~the fisoal year for whiohthe appropriation is provided,

suah appropriatioa

is expemded

or enoumber ed to the extent of the smou+ut involvedin such purohase, and, of oourse,to the extent

~that the appropriatioa

has beem thus enoumbered or expended,

the authority

ofthe department

to contra& with refereaoe to the appropriation has been accordingly

diminished.When, 9 suooessive purahaaes,

the depatient has fully expended

or encumbered

the particular

Item of appropriatioa, the author ity to contract

with respectto suohappropriation is likemiss

exhausted,

so that accounts

incurred

or expenditures

made after the appropriaticm has beea filly enombered or expended are not entitled

to be paid out of such appropriation, for, at the time suoh aooounts were incurred

or expenditures

made, the authorityof the department head to oontraot

dth~referenoe to the appropriation had been exhausted.
Yours very truly AlTORt?EYGERRRALOFTEUS By /a/R. W. Fairchild
R. We Fairchild Assistant

AFPROVEDSEP 14, 1940 /s/ Gerald C. %nn ATTORN8YGEMERAL

OFTXAS 

### APPROVWD OpinionCmnnittes By B.W.B.~ &air&