MARK WHITE 

Attorney General 

The Attorney General of Texas 

May 6, 1981 

Honorable Ray Farabee, Chairman 

Senate Committee on State 

Affairs 

Austin, Texas 78711 

Honorable Gerald Hill, Chairman 

Committee on Elections 

House of Representatives 

Austin, Texas 78711 

Opinion No. W-333 

Re: Constitutionality of C.S.H.B. 

889 concerning direct &posit of 

payroll warrants by magnetic tape 

transfer service 

Dear Senator Farabee and Representative Hill: 

You have requested our opinion regarding the mnstitutionality of 

House Bill 889, presently pending in the 67th Legislature. The bill would 

amend article 43444 V.T.C.S., by adding the following provision: 

Notwithstanding the provisions of any other statute, 

the Comptroller of Public Accounts may establish and 

operate an electronic ftmds transfer system only to 

transfer employees gross state salaries less 

deductions specifically authorized by state or federal 

law or reimbursement for travel and subsistence of 

employees or [payment?] to state contractual payees 

to satisfy state contracts directly into their accounts 

in financial institutions. An employee or state 

contractual payee must request in writing to 

participate in any electronic ftmds transfer system 

established and operated by the Comptroller of Public 

Accounts A single transfer may contain payments to 

mutiple payees without the necessity of issuing 

individual warrants for each payee. The Comptroller 

shall establish procedures for administering the 

system and may use the services of financial institutions, automated clearinghouses and the federal 

government. The use of electronic ftmds transfer or 

any other payment means does not create any rights 

that would not have been created had an individual 

state warrant been used as the payment medium. The 

State Treasurer may not make a payment of a state 

employee’s salary before the last working day of the 

payroll period. 

p. 1079 
. - 

, 

Honorable Ray Farabee 

Honorable Gerald Hill 

Page Two @I+3331 

The state treasurer contends that this proposal, if enacted, would contravene article 4, 

section 23, and article 3, sections 50 and 51 of the Texas Constitution. 

In Attorney General Opinion MW-213 (1980), we said that, while existing law 

permitted the comptroller, at an employee’s instruction, to transfer the employee’s pay 

warrant directly to his designated bank, there was no statutory authority for the 

comptroller to issue to a bank a pey warrant covering multiple employees or to issue 

warrants solely by means of magnetic tape. House Bill 889 furnishes such authority. 

Article 4, section 23 of the Texas Constitution merely establishes the office of 

state treasurer and directs that he “perform such duties as are or may be required by 

law.” No duties of the treasurer are specified in the constitution, and, in our opinion, 

the legislature is at liberty to reasonably determine the scope of his duties. The 

provision of the bill directing the comptroller to “establish procedures for administering the system” merely makes it his duty to conform the use of electronic “warrants” 

as nearly as may be possible to the statutory requirements governing the issuance and 

control of paper warrants. The existing statutes flsnish sufficient standards to guide 

his discretion. The sentence prohibiting the State Treasurer from making a payment of 

a state employee’s salary before the last working day of the payroll period is 

confirmation that the bill does not attempt to change the traditional role of that 

constitutional officer. No payment may be ma& from the treasury except at his 

direction. 

Article 3, section 50 of the constitution prohibits the legislature from lending or 

pledging the credit of the state for the liability of any individual, corporation or 

association. Article 3, section 51 prohibits the grant of public finds to an individual, 

corporation or association. In our view, neither of these provisions is subverted by 

House Bill 889. See Attorney General Opinions MW-55 0979); H-74 (1973). 

Accordingly, it is otii$nion that House Bill 889, if enacted, would be upheld as 

constitutional as against the objections raised. 

SUMMARY 

House Bill 889, presently pending in the 67th Legislature, 

does not contravene article 4, section 23 or article 3, section 50 

or 51 of the Texas Constitution. 

A* 

Attorney General of Texas 

p. 1080 
., - 

- I 

Honorable Ray Farabee 

Honorable Gerald Hill 

Page Three (rw-333) 

JOHN W. FAINTER, JR. 

First Assistant Attorney General 

RICHARD E. GRAY III 

Executive Assistant Attorney General 

Prepared by Ride Gilpin 

Assistant Attorney General 

APPROVED: 

OPINION COMMlTTEE 

Susan L. Garrison, Chairman 

Jon Bible 

Rick Gilpin 

Jim Moellinger 

Thomas M. Pollan 

p. 1081