Hon. George B. Butler, Chairman Board of Insurance Commissioners Austin, Texas Opinion No. 

### v-1376. Be: Numberof employees of the Board of Insurance Commissioners for whom travel expense funds are madeavailable by the general appropriation bill for attending a meeting of the National Association of Insurance Dear Sir: Commissioners.

Youhave requested an opinion of this office relating to the numberof employees of the Board of Insurance Commissioners for whomtravel expense funds are madeavailable for attending a meeting of the National Association of Insurance Commissioners.

Section 12(d) of the General Provisions of Article III HouseBill 426, Acts 52ndLeg., R.S. 1951, ch. 449 p. 1228 at p. 1436 (the general appropriation b 11) prov

i 1des in part;
thrk In no event shall more than 

### i3ipersons from anv one (1) d&- be approved for travel to any convention or meeting of a slmilar nature.” Youstate in your letter:

“It is the construction here among the three Co

2”issioners that eata of the Departments Life, Fire, Casualt may send three persons to the National **ASSO** ciation of Insurance Commissioners meeting, andthat their expense accounts will LJ Emphasis added throughout..

Bon. George B. Butler, page 2 (v-1376)

properly be compensable under the above quoted section of the Appropriation Act. Thereason for the construction is that under the provisions of Article 1.04 of the 1951 Insjlrance Code the sunervn+ry functions ~of‘the three Insurance Conunissionei% are spedflcally out&& andsegarrit”ed to the extent that, except whentaking ~official action, the operatdotis &Apractically separated.”

“In view of the premises, will you please advise us whether each of the three Commissioners maysend three persons from their respective Departments to the meeting of the National Association of Insurance Commissioners for the purposes above outlined, andthat the expense accounts of the respective persons so delegated are properly compensable under the current Appropriation Billon Subsequent to the date of your request wewere officially advised that the Boardwould request travel authority from the Attorney General for three menonly to attend the National Association of Insurance Commissioners meeting.

In determining whether the Legislature considers the Board of Insurance Commissioners to be the head of three departments or the head of one department with three divisions, it Is necessary to look to the statutory schemewhich established the Board. Articles l*ol-.25 constitute Chapter Oneof the Insurance Code 1951 ch. 491 p* 88) b s.~.,236 Acts 52ndLeg., R.S. ITS $OWERS

AN!)DIJTIES.Zwhich Is titled “THEBOABD,

Anexamination of these artic1e.s makesclear that the Legislature Intended the Board to be the head of one department with three dlvisions. Each d&vision is to serve a different function, but in the final analysis the divisions are but segments of the whole andnot entitles within themselves.Hon. George B. Butler, page 3 

### (v-1376)

Thefollowing quoted portions from the articles establishing the Board and defining its powers andduties support this proposition: Art. 1.04. Duties of the Commissioners

“Generally, the Life Insurance Commissioner shall have supervision of matters relating to life insurance, to the examination andto the chartering of companies, certificates of authority, andas to the solvency of persons and corporations engaged in the insurance business; TheFire Insurance Commissioner shall have general supervision of matters relating to fire andallied lines, marine and inland marine insurance; andthe Casualty Insurance Commissioner shall have general supervision of matters relating to casualty, motor vehicle, workmen’s compensation, fidelity, guaranty, title andlmiscellaneous insurance. The Boar sha 1 nevertheless overate as awhole. anda majority vote of the membersshall be ngcessarv to official action.” Art. 1.10. Duties of the Board 

### “12. Report to Governor.--It shall report annually to the Governor the names andcompensations of its clerks, the receipts and expenses of its deoarw for the year, its official acts, the condition of companies doing business in this State, and such other information as will exhibit the affairs of said deoartmgnf,

. Art. 

### 1.16. Expenses of Examinations*

III:gt;ition of SumsCo i-

“In case of an examination of a companynot organized under the laws of Texas, whether such examination is madeby the Texas authorities alone, or jointly with the insurance supervisory authorities of another state or states, the expenses of such examination due to Texas’ participation therein, shall be borne by the companyHon. George B. Butler, page 4 (v-1376)

under examination. Paymentof such cost shall be madeby the companyupon presentation of itemized written statementby the Chairman, and shall consist of the examiners* remuneration and expenses, andthe other expenses of the Deoartment of Insurance properly allocable to the examination.

. . .n Art. 1.17. Appointment of Examiners and

Assistants andActuary by Chairman of Board of Insurance Commissionersj Salaries

n It Is the purpose of this article ini kticles 1.1.6 and 1.18 of this code to provide for the examination hereunder by the Chairmanof the Board of Insurance Commissioners of all corporations, firms or persons engaged In the business of writing insurance of anykind in this State whether nowsubject to the ;;p;er;islon of the Dsurance Denartm&

.

‘1.

. e

“Wherethe Chairmanof the Board shall deemit advisable he maycommission the actuary of the Board, the chief examiner. or any other examiner or employee of the DeDrtment or any other **pirSbn** to conductaor ass& in the examinatloi of any companynot organized under the laws of Texas andallow themcompensation as herein provided,

. . .I1 Art. 1.22. Free Access to Records

“Toverify the correctness of records, the Board shall be entitled to free access to the Treasurer’s records, required by the preceding article, andthe Treasurer shall be entitled to free access to the books and other documents of the Jnsurance DePartma relating to securities held by the Board.”
We think the above provisions amplyjustify our conclusion that the Legislature intended to establish a single Insurance department with three dlvisions, not three separate departments.Hon. George B. Butler, page 

### 5 ('-1.376)

, The quoted portion of Section 12(d) of the appropriation bill, a does not attempt to alter, amend, or change any o) the statutory duties of the Board. Theattempt to makesuch a change by rider In a general appropriation bill would be in

### valid. Attly Gen. Op. V-1254 (1951). However, the rider does not limit your authority to send as many persons as you deemnecessary to the meeting if such attendance is In pursuance of statutory duties. The rider to the appropriation bill merely limits appropriated travel expense funds to three persons from one department to any one meeting. This is entirely proper In anappropriation bill. 92Tex. 

### 451,49S.W. 

### 578(1899Ja %!%dkg expenses of only three persons maybe paid from the appropriated funds, even though a greater numbermay attend the meeting.

Thefinal question is to determine the meaning intended by the Legislature for the word “department” as used in the appropriation bill rider, limiting the numberof persons for whomtravel pay was appropriated.

Theappropriation to the Board of Insurance Commissioners Is found in Article III of the general appropriation bill. (H.B. 

### 426,guora)

Section 1 of Article III provides:

“The several sumsof moneyherein specified, or somuchthereof as maybe necessary, are hereby appropriated out of anyfunds in theestate Treasury not otherwise appropriated, or out of special funds as indicated, for the support and maintenance of the wcutive and &g&&gandat?- of the State of Texas for the two-year period beglnnlng September 1, 

### 195l., and ending August 

### 31,1953." Following the above will be found the appropriation to the Board of Insurance Commissioners, subheaded Life Division (p. 

### 1360);Casualty Insurance Division (p. 1366); andFire Insurance Division (p. 

### 1372).HOL George B. Butler, page 

### 6 (v-1376)

Section 2(f) of the General Provisions of Article III requires the Auditor to certify to the Comptroller all departments that have failed to make a required report andprovides for withholding the warrant of the head of the department. Therider then provides:

“

. . . Heads of departments as used herein shall be defined as elected andappointed officials, membersof Commissions, Boards, etc., and/or the chief admfnistrative officer of such Department, Board, Commission, Bureau or Agency for which appropriations are madeherein.” Wethink the above provisions demonstrate that the word ltdepartmentl’ was used to meaneach of the various State agencies anddepartments which functions as an entity under its statutory powers. Youare therefore advised that the Board of Insurance Commissioners, as the head of one department, has an appropriation for travel expense for not morethan three persons going to any one convention or meeting of a similar nature4 andweagree with the action of the Board in reques ing travel authority for three menonly to attend the meeting inquired about.

Thepractice thus far followed by the Board of Insurance Commissioners in not requesting travel approval for more than three persons to any one convention or meeting of a similar nature Is correct i TheLegislature in creating an Insurance Commission created a single department with three divisions rather than three separate departments, andthe Board of %surance Commissioners, as the head of one department, has approprlation for travel expense for not more than three persons goin~g to any one conventionHon. George B. Butler, page 7

or meeting of a similar nature. Arti-~. 1.01~1.25,, .InsurancEe,CodQ, BadEsB, 426, Acts'52nd Leg., RI& 

### 1951,?h. 499,*p, 1228. APPROVED: Yours very truly C. K. Richards PRICEDANIEL Trial &Appellate Dlvlslon Attorney General E. Jacobson Reviewing Assistant Charles D. Mathews First Assistant EWT:wb