Honorable Robert S. Calvert 

Comptroller of Public.Accounts 

Austin, Texas 

Opinion No. C-536 

Re: Construction of interagency 

contract between the Texas 

Department of Mental Health 

and Mental Retardation and 

Dear Mr. Calvert: the State, Building Commission. 

Your request for an opinion reads as follows: 

"I am endlosing an account payable to 

the State Building Commission In the amount 

of $1,395.9&, Incurred under an interagency 

contract with the Texas Department of Mental 

Health and Mental Retardation. A copy of the 

interagency agreement is attached. 

"You will please advise if accounts incurred under this contract would be legal charges 

against the following appropriation made to the 

Department of Mental Health and Mental Retarda-. 

tion which is found on page 21, Item 24, Article 

II of Rouse Bill #12, Acts of the 59th Legislature. 

"'Salaries of Classified Positions (excluding Legal and Claims Division).........., $334,506.00’ 

"A breakdown of the account shows that the 

amount of the claim,, $1,395.94, is to be deposited in the appropriation to the Building Commission 

in the,followin manner. 

services', $1,1&2.00 

'Professional fees and 

'Travel expense', $253.94. 

Both appropriation a&ounts being itemized appropriations of the Building Commission. 

"If your answer to the above question is in 

the negative, would payments under the contract be 

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, . 

Hon. Robert S. Calvert, page 2 (C-536) 

governed by this provision which is found on 

Page 27 of the Appropriation Bill and reads 

as follows: 

"'Said Department Department of Mental 

Health and Mental Retar 6, tion) is authorized 

to pay from the respective items under the 

State Hospitals and Special Schools Building 

Program the salary and travel of construction 

project inspectors and the salaries of mechanics 

and laborers as may be required. Such construction project inspectors may be employed under 

the titles of Clerk of the Works I (9096) and 

Clerk of the Works II (9097).' 

"If you advise that the account is payable 

out of the classified salary appropriation, could 

the proceeds Abe deposited in the manner requested 

or must the deposits be a reimbursement to the 

appropriation out of which the employees were., 

paid? 

Subdivisions (A), (B), (E) and (G) of Section 5 of House 

Bill 37, Acts of the 59th Legislature, Regular Session, 165, 

Chapter 455, page 926, compiled in Vernon's as Article 67 % f, 

Vernon's Civil Statutes, and known as the State Building Construction Administration Act, provide as follows: 

"(A) The State Building Commission is hereby designated as the administering agency and shall 

exercise the powers and duties conferred upon it 

by this Act in addition to all powers, duties and 

responsibilities previously conferred upon it by 

Acts of the 54th Legislature, Regular Session, 1955, 

Chapter 514, as amended (compiled as Article 678m, 

Vernon's Annotated Civil Statutes), and the provisions 

of such Act, as amended, shall apply where pertinent 

to all construction under the provisions of this Act. 

The Commission shall be the coordinating authority 

for the construction of any multiagency State office 

buildings which the Legislature may, from time to 

time, authorize. 

"(B) The,Commission shall, subject to the 

provisions of the Appropriaticn Act and such General 

Laws as may apply, employ professional, technical 

and clerical personnel. In selecting such personnel, 

the Commission shall give first preference to persons 

currently employed in the hgineering Section of the 

-2569- 
Hon. Robert S. Calvert, page 3 (C-536) 

State Board of Control and in the Design and 

Construction Division of the Board for Texas 

State Hospitals and Special Schools." 

"(E) The operating expenses of the State 

Building Commission shall, unless otherwise 

specified by the Legislature, be paid from 

appropriations made out of the State Building 

Fund. The State Building Fund shall be reimbursed for such expenditures from the funds 

appropriated by the Legislature for projects 

supervised by the Commission. In order that 

each project shall bear its fair and proper 

share of the Commission's expenses, the Commission shall Institute and maintain a cost 

accounting system which shall be devised by 

the State Auditor as soon after the effective 

date of this Act as possible." 

"(G) On or before the first working day 

of the fiscal year beginning September 1, 1965, 

all files, records, equipment, furnishings and 

personal property of all kinds heretofore used 

by the Engineering Section of the Building Engineering and Management Division of the State 

Board of Control and by the Design and Construction Division of the Board for Texas State Hospitals and Special Schools shall be transferred to 

,the Commission. The Commission shall agree with 

the State Board of Control and with the Board 

for Texas State Hospitals and Special Schools on 

the personal property to be transferred and shall 

evidence such agreement in a written inventory to 

be signed by representatives of the Commission 

end the respective Boards. The agreement when 

so signed shall be full authority (1) for the 

Commission to transfer the personal property listed thereon to Its control and (2) for the Comptroller of Public Accounts to enter any inventoried 

items on the property Inventory records of the 

Commission and to delete the same items from the 

property inventory records of the State Board of 

Control and of the Bzard for Texas State Hospitals 

and Special Schools. 

Subdivision (D) of Section 7 of House Bill 37, provides: 

-2%70- 
Hon. Robert S. Calvert, page 4 (C-536) 

"(D) There is hereby appropriated out of 

the General Revenue Fund to the State Building 

Commission for the Implementation of the 'Building Construction Administration Act' for an 

Archaeologist the sum of Twelve Thousand Dollars 

t 

$12,000) each fiscal 

3 

ear, four Project Analysts 

not to exceed $12,000 the sum of Forty-four 

Thousand Dollars ($44,000) each fiscal year. 

Salaries of Classified Positions the sum of One 

Hundred Thousand Dollars ($100,000) each fiscal 

year, Professional Fees and Services, Fifteen 

Thousand Dollars ($15,000) each fiscal year and 

unexpended balances of the first year of the biennium, Travel Expenses, Fifteen Thousand Dollars 

($15,000) each fiscal year and unexpended balances 

of the first year of the biennium, Other Operating 

Expenses, Fifty Thousand Dollars ($50,000) each 

fiscal year and unexpended balances of the first 

year of the biennium. The combined sum for the 

biennium from the General Revenue Fund shall be 

Four Hundred Seventy-two Thousand Dollars 

($472,000)." 

Pursuant to the authority vested in the State Building 

Commission by the provisions of Section 5 of House Bill 37, 

Acts of the 59th Legislature, Regular Session, 1965, and the 

provisions of Article 678m, Vernon's Civil Statutes (See Attorney General’s Opinion WW-1120 (1961)), the State Building 

Commission and the Department of Mental Health and Mental Retardation, successor to the Board for Texas State Hospitals 

and Special Schools, entered into a contract whereby reimbursement was to be made to the State Building Commission for 

services rendered on construction projects previously entered 

into by the Board for Texas State Hospitals and Special Schools. 

It Is noted that the appropriation to the Department 

of Mental Health and Mental Retardation contained certain 

classified positions now under the jurisdiction of the State 

Building Commission by virtue of the provisions of House Bill 

37 of the 59th Legislature. Since House Bill 37 specifically 

provided for reimbursement to the State Building Commission 

for expenditures'for projects now supervised by the Commission, 

it was necessary to enter into the contract in question in order 

to assure that the projects under construction would continue to 

have qualified supervision. The contract provides as follows: 

"Pursuant to authority provided In Chapter 

514, Acts, Fifty-fourth Legislature, Regular 

X5 71- 
. r 

Hon. Robert S. Calvert-,,.page~5~~(G-536) '~ 

Session, and Attorney,Generall,s,Opinion No. 

WW-1120, 1961, this agr’eemerit 'is entered into 

by the,Sta,te~~Bullding.Commission,.actlng through 

its Executive. Director3 and the ~Department of 

Mental Health and Mental.Retardation, acting 

through its.Aoting Commissioner. 

%HEREAS, proper,and workmanlike construction is'pequ,ired ln.all structures erected by 

the State.of Texas; :and 'y 

"WHEREAS, economical, proper and workmanlike construction can best be insured by quallfied supervision during~the construction phase; 

and 

'WHEREAS, the, Department of Mental Health 

and Mental Retardation has current construction 

projects on which continuing qualified supervision Is required, and on which Clerks of the 

Works are presently employed; 

'Now, Theref,ore, It is agreed by and between the parties hereto that effective September 

1, 1965 the Department of Mental Health and Mental. 

Retardation agrees to reimburse the State Building 

Commission for these services for the fiscal year 

beginning September 1, 1965 in the maximum amount 

of Sixteen Thousand One Hundred Fifty-two and OO/lOO 

Dollars ($16,152.00). 

"THIS AGREEMENT shall continue on a month to 

month basis, in whole or in part, and may be terminated by the mutual consent of both parties. 

"IN WITNESS WHEREOF the ,covenant .herein described Is made this 1st day of September,~ 1965." 

You are therefore advised that the account payable 

to the State Bulldlng Commission, incurred under the interagency 

contract with the Texas Department of Mental Health and Mental 

Retardation is a legal charge against the appropriation in 

House Bill No. 12 for 'Salaries of Classified Positions (excluding Legal and Claims Division)" and the proceeds can be 

deposited in the following Itemized appropriations to the 

Building Commission: "Professional fees and services' and 

%ravel expense." 

,-2672- 
Hon. Robert S. Calvert, page 6 (C-536) 

SUMMARY 

The account payable to the State Building 

Commission, incurred under the interagency contract with the Texas Department of Mental Health 

and Mental Retardation is a legal charge against 

the appropriation in House Bill No. 12 for "Salaries 

of Classified Positions (excluding Legal and Claims 

Division)" and the proceeds can be deposited in the 

following itemized appropriations 'to the Building 

Commission: "Professional fees and services' and 

'Travel expense." 

Very truly yours, 

WAGGONER CARR 

Attorney General 

Assistant 

JR:ms:mkh 

APPROVED: 

OPINION COMMITTEE 

W. V. Geppert, Chairman 

Malcolm Quick 

Paul Phy 

John Banks 

Tom Routt 

APPROVED FOR THE ATTORNEY GENERAL 

BY: T. B. Wright 

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