TIJIEAT~-!P~D~Y 

### GENE~L OP TEXAS

Honorable

Oeo. II. Sheppard Cciaptroller

of Public

Aacounts Awtln, Texax
Dear lllrr <)plnlon #IO. **o-4365** R&t

Your letter

of June two qucrtione

relating

**to fhe**  aa followEr commuotiim of allocatlonn.to and appropriation8

out of the old AgeAurl&tnccINnd 11th requeatlng

our opinion

on Old Age **Aaolstanct** Fund read8

**YJID AOE**  **XSSxsTAwcE FUND** **FxpmDITuREs**
"senate Bill 490 (Artialc

70&a). Forty-seventh laturt, nmendlng

**Stctlon** 2, Article

XX, Houxe

Blll 8 the Regular

Session

ot -th$. Foey-seventh Ltg~l.+re LeglOOf ccemwnly

known a8 the tiibw Tax Bill, ha6 to do ulth **the** allocation

of the revenue6 **derived** frcm

Certainocaupatlcmand gross

recelpte

taxes, and reference

is particularly made to the iollcmlng portion

of Senate

Bill No. 4901 "#(4) After the **above** allocation8 and mnta have been

### made

fromsuchCl

earatweFund,thereahallbepald there!'raa

into the Old-Age

Aarlatanoa

Fundon the 

### flrot OS each Ronth, much l u, whloh,

taken rlth**other** suma

paid IntoruchOld-Age

Amal8tenee

Fundby virtue ot other law 8tlllin force,

will equala total of b xflllonSeven Hundred

**Flrt~Thowazxl** ($1,750,000.00) Dollare,and

**mueh** mm la **hereby** appropriated for **the** wo provide6 by law for muchOld-Age

AmlstanoeFund. Should ruch payment8

into the Old-Age

A8(118tuktt

Rud by virtue

of other

law8 exaeed One lUllion

Seven Rundred

**Fifty Thowancl**  ($1,7~,COO.o0) Dollar8,

in any one wnth, **then not**  more **than** Cne eJilllon **Seven lfundrecl**  **Hfty Thousand**  **(~1,750,000.09)** Dollars or 8uche&all

be expended

for old-age

asrletence

in Fueh month EM the rtmalnder in exceea thenot shsl).-be

withhelduntil

the succwdiag

month or **months** andbe taken lntacnnelderatla

in allocating

fund8 Fiatthe Clearance **Fund** to the Old-Age **dsslstanae Puti,**  **ud** the amountpaid in fromtheClearanue Fund intothe Old-Age'Amlstance Fundrhall

b e **reduced** l

Ccordingly

to **the** end that a sta-tonorablo Qeo. li. S&Oplrrd,

p4ze2
~~~~~&ttup~~~l~~~krerred to **above it**  **has been**  **the** practice **of thim**  **dejnwtamt to**  **sake a**  **transferonthe flrstdsJofeach**  monthfrcathe Qmlbau clearanae hnd to the Old-Age A8slrtance

Fund or an amount uhlch,

**when added**  to the **cash balUrCe**  then **in** the Old-Age A8alatanee

nun3 together

ulthreceipts

to the trnd by virtue of other law willequal $1,750,000.03. In other word, on the tlMt d 7 of each aucceedlng month the balance Is nlred **back** to the l,~O,OOO.~. %e balance

lxi the Old-Af$e

hdmlnlatation

find, uhlch fimd is tonaldared

a part o? the Old-Age Amalatance

Fund, although

**tarried** in a separate **account,** 16 alsocCnraldtmd .ln **arrldng** at the agount to be &ansferred

when brlnglne the balance In the Old-Age Rsslstencc

Ptmd **up to**  **the** $1,730,600.00.

Thl$ Old-Age 4dItlnlatratlon Pccount I8 **raintatned** by tra8ferring suns f’rom

the Old-Age

&aalatanot Fund In amount6

aa 8nd when requested by the Public

Ytlfare Depzkrtment..

The lawdotsnot preacrlbe thlaseparate ac**count, but**  the fast thatthe leglslatwe appropriates

out of the Old-Age

Aealetence

Fxmdotrtaln amounta for admlnistratlan and the law ?urther

limits the admlnlstratlvt

coat to 3% o? asalatance paid makesit ntoeaaary to reparatt the **accounta** in wder to onntrol the expenditures. “Durlngeachaonththen are a nunibero~werrfinta cancelled,

**aaualng** a c-it t.o **the** fundaccount

and thereby ralalng thebalance. Practically all of the cancellations are ofuarraaita

whlehuere l8auedln some previous mmth Md again& that gn*iOUS IMAth. allOtIaMIt Or **DOatf.** Tht meet CQ~OD reamon

for these

cancellation8

l8 that**the** pensloner

**dlcs** before reoelvlngbl8 uarant. The warranta are returned,

cancalled

and eredlted

**back** to tbc fund In l ooe rubaequent

month,wMBg that aonth’e total credits to l xccsd the grtatlonary 8um' of (1,750.ooO.00 vnt11 recently

the total

wrMnt8 lamed against tk8e funds

in a 8lngle

month have not amounted to the $1,753,000.00,

thereby leaving a balance

an great

as or greater

than the amount

of cancellatlowi

to be takeninto conaldtratlon

In allocating

the fund8

for the folloulog month uhen brlnglng

the balance

**up to**  **the rtqu@** **‘ ed**  $1,75a, 003.00. -lJou thlt the OM-Qe Asalatanoc grants and the cost of adainlatratlon

together

have reached

and tight exceed the ~1~750,000.00

la **a** given

month, the question

arises u to the use of the or&its eaueed by the oancellatlon of url tame uarranta. I thtnrorc request your answer to the ro~loulng qut8tloM:. HonorableOeo.H.3)uppard, page 3,

of t~l&-wlslon of the **Aat quoted**  **ln** ~ollouing the IR the Captroller 8co~llahlng the PurW8e prsctlce

of c~nslderlng

she 888h

b8lancc at the clo8e **of one**  **mnth la**  **srklvlng** at **the maount**  to **k** transferred ao the lint of each

mmth, eventhigh thrrc right be an mdekrmkbed uaount of s6mlnlatratlw l Xpen8e accounts 0utatudlng8ndunp8idutthctlme?
"In wutrlng thl.8

queatlon

@ease **bear lm**  **alnU** that the&irealmkya

8omeunpaid

sccounta

while cut

the other handthere

rue current

expenditures

for 8upplle8

which are to be used throughout the future

mnth8. Also, that One 8tatute

(the knlbus Tax Bill)

products

the **none7** 8Nle another

authorirethe cxpendlturea. *
-2. 18 the Comptroller authorlred

to l8aut

durlk: any onemonth

rsrrsnta

for the psyment

of old-sge

aaalstanct and adminlatratlon coaablned totallng

more than $1,750,003.00

if **the** amant **ln excess**  **of ~1,750,000.09**  la **not** greeter

thsnthe amount of cancelled **utrranta** credit described

**abwe?** -1 8hall be glad to hew you confer vlth rtpr484ntttiwa of this

department

8nd the Publfc

**Yelfsre Depsrtment**  if you wlah further

detailed

lnfoznatlon

**:b,bout** the operation Of ule aCCoWit6

befor lpaklng

JOUr IVPU.
You q&c **at** the beglnnlng 0r pur letter that portlar of **Senate** Bill 490,

Acts 47thLegislature, upon th8 CaeMructlon or rNch **depends** the 6naWera to yourquestions. Uhlle Senate Bill 490 8menda

section 2 of Article

XX of Abuse

Bill 8 (Wnlbw Tax Bill) of the same resalon,that portiaa

of SenateBill 490 uhloh you quote,repeats

unahsnged the asme provlslons

88 eaatalned

In House Bill 8. **The** leglsltfive Intent88 to said prwl~lon, fber8fore, m6y be ng8rded **t8 unchang48**  **fraa Iioust~ZUll.iS,**  **so** thtt **wtanaot** look to other portlow of R. B. 490 for **help** in **tsctrtslnlng** the legtslatlw intent embodied

ln the provlslrans **under** consldemtlon.
& now constituted,

payments

into the 0ld"Age

AaalatanteFud art pads fraa two sources: .

(1)The clcsrsnce

fundand (2)'ctrtaln tsxe6'tihich

are paid **dlrectty** intothe Old Age A8alat8nce ?und. Theseletter

. ar4 three-fourths

of **th4** rtwnuts collected trap tares

on **(a)** calm-operated

machlnts,

**(b)** Bw1acIDcnt8,

(c) ulna, b44rand liquorstamp taxes and **(d)** 811 the revenues frcuwine,

beer ud liquor

permits. -The revenues

IYaa these

t8x sourc~a,

partlCUl8rl;t

as A ;z ice; wlae sn&llquor permltr, vsryCOn8iderabl.y

from month

. In the quoted **statute,** these **Mwnuea** are d48crlb4d

.- _Xonorable Oao. 8. Sheppard.

page 4

aa 'other

sums paid Intotha Old-Age A&slstanca

Fundby vlrtua of ot!wrlawa

at111In farce.' The utdoubtad Purbwee of tha quoted provlrlon

was to asaura

that thara

ba available

a 8tatIonary

sum of $1,750,000.00 per month', 1rrcSptctIvt of fluctuatIona

in **tht** monthly

raoe:pts

from t!aa taxa8 which have baan spaclflcally

allocatad

ta the old hgc haslrtanca Fuacl. This purportis acaampllshad **by** the firat

StnttnCt

Of raid**aub mtctlon**  (4), which read81

'iftar the **abwe** allocations and **paymanta** have **been** made frcmsuchClearance Fund,

there rhsll.

ba pald tharesrom fnto the 

### old-Agt4sslstanctFund on tht rmt or eachaonth,much sum, uhlch, taktnu:th other

8UmSpaid into suchold-4ga

ABslstance

Rurd **by virtue**  **of other**  **laws** etlll.ln

force, willaqua1

**a** total of One HlllIon

Swan Hundred ?lfty Thousand

(~1,75O,OD9.03)

Dollars,

and such mum la her+by

approprlatad

for the* use provldad

**by** law for such 9ld-Pgi?

Assistance

Fund.

**This aantanct**  **a86urto** that $1,75O,OQO.~ willbe ~~-d&ntotht Old **Agt** Assistance F'und on the first of each **It dots**  not U&It **the mrpandltura8**  **from the**  **fund** suchkount each

month. **to** Ror **dots** it provide

thatunexpendad balancas

**fmm preceding**  months **in the**  **Ol&.$gt** Assistanct purd rhall ba conaldarad

In dettr&nJ.ng

fha amount

uhichahall

be

. **paid** ln fromtht clearance fund. Tht $1,75O,COO.O0 paid lnto the Old &a **Asdhmct** Ru%d.cach month consists

on- of the total rtvtnue darlvad fromtha "other

laws' during

tht pracadlngmonth,

plus whatever **addltloml** am may ba naceiwwy from tht clearance

fundto m&a a total of ~1,~,000.00 And euch mm ti **to** bt p8Id into tha Old A@ A8816tmt Fund on tha r'irrt ofeverymonth,irraspactivt o~unaxpandadblanea8 frompravIouS mcmrtharemainlngin the fund.

Tha second

r&tenet of tht quoted prwl8Iondoe8not lmprposa a gtntrallimitation upon the amount

whiah may ba expcadad each month from

tha fund. A careiLllreadl~wIll l M.thattha entIra

rtnteaca applies

only In those

month8 %n uhlchthe rwtnutt from ‘ other laws*

txcead ~l,~~,OOO.QDt : Should such

paymantn

into the Old-Age Aaslstpnca Fiend **by** vlrtua

ot other laws 8xcttd clne Xllllon

**Savta** lkmdrtd Fifty Thousand

($1,750,000.00)

Dolleu's,Jn

any onemonth,

thannotmore than **Out** Rilllon Seven Xundrad **Fifty** hou6and ($1,750,ooO.00) Dollar8 of l uch shall

ba expandad

for old-age

asslatace In l

uchmonth;

and tht **mnaitxlar** in cxceem tbtreof shall be rlth!beld until tht sacceedng

monthor month8

and ba taken

into**consldaratlm** in allocating

fun& fromthe Cleuwnca PUnd to tha Old-Age **Aulmtaacc** Fund, aad the amount p81diln frcm the Claarance nmd lntdtht Old-Ag8 Aesirtance

lhniil 8hall be reduead accordinglytotha

end that* rtrtlolry rumof olt RIllia!+men -red Fll't~ Thowand (&750,000.00) 0011~~ y~,y$h bt awM@al f'rm Skk fund8 ior old-wActually, the revenuetror *other lw8" hiw never axcatd, **nor** even **approached** ~l,~,OiW.OO ln any one month, a0 that thlr pro~l~lon haa never becoll~ OptMtlW. ~MQ ii It rhould baacue

operative,

it uould

1Imlt the expenditure

out of the Old Agt **X8slrt@nca Fund**  **in** that mouth **to** $l,75O,WO.O0 only a8 **to** 'Isuch*

money a8 uaa pal& ln that month. It would **not** forbid 

### l

s d: n g

In addltlonto 'Luch*$1,750,009.00, other modes which might be In the Old &e A88fst8nCe ?und **by** virtue of unexptnded balances left **wtr** fran prlor‘month8.

Tha final

courseI *to

tht and thata stationary 8um bf One Wlllon **Seven** Hundred per aonth be ava:lablc", **Fifty** Thousand ($1,750,000.00) hllar8 la to be conatruad, **we** bellew, **not** to prescrfbe

the amount

which may **be expanded,**  butktheemountwhlah 18 to be al1oCateU

to the 0ld Age Aslrlstanct Fund each **month.** Thus construed,

the entireprovlrlon **undtr** consldcrat:on l8 an allocation

of monlae into **the Old**  Ago Assiatanca Fund, rather than sn appropriation thereof.Ut find the appropriation of these funds **in** the Departmental Approprktlon Bill, S. D. 423, nets 47th Leg., In t?a fol:&:ng language:

-'Ml fnconnca

allocated

or Qtansferrcd

to the Old Age Assistance

Fad by R. B. Wo. 3, Acts of the 47th Le&loleture, Aagular

Sesaslon,

or other revenue lawa, for t&e purpbuc of provldlng and admlnlstarlng **old-age** asslatanca, la **hereby** appropriated for each of the fiscal year8 ending Augunt 31, 1942, and Ru~uat 31, 1943, to the State

Eepnrtmfnt of Fublle

Welfare&or oldage eB8IBtnnco paymcnt~ and for oalarlas, **equipment,** bupplla8, travel,

**lanntenance** en4 cont*ant **expenses nectmrary**  **’** In the axtanslon of **6ald** old-age a88Istance. 9 This clearly

**conetituter,** an approprlatlon for "eachof the fiscal

yearns,and cannot **be** construtd **a8** bclng "each of the fiscal

yteruE), and cannotbe conzstrued am balng an approprlatlon

on a-monthly

bfdn. H. B. 8 and 5. 8. 499 

### prwldt for the allocation **to** the Old Age ii88iatanoe ?und of $1,~0,O0O.O0 each month, and the abow provl8ion **of** S. IS.. 423, aporopriat&s:all the aonIes **80** allocated for each of **.tht two**  flacelyeara.

It follousfrom the foregoing anal&s that there may be expendedfrom the Old hgt AssIat+%nCe Rxnd iwant month not only the $1,75O,OOO.O0 ellocated

to 8ald fund on t?ke flwt of said month, but In addltlon thereto,

suoh.' uncxpendtd

balnnaeas there may bt in tht fund by virtue of expendlttwes

&ur?ngpreceding

months of the flaoal

year havingbeen belo%%

$1,750,0OO.00. Turning**nw** to e **comlderatinn** of your tro questIon8. **i&r** first **question** Is ansuered In tht negatlveti. a., we believe

that you shWJl6

not aonslder the cash **balance** at the close of onemonth (that.Ia, the unexpended

portlen of tht

.
atthc 8mounttobetransferredtrortJaealeaawm first of eachmonth. T&t amount to be tran8rerred

rrw the ClaaXWoe fundon the tint of themonth IO the dlfftrencaHon. oeorge II. sheppma, pcy 5

between $l,~O,OOO.OO sncl the amountwhich has been psld into the old age aaslstanct rclnd fma %tkcc laan- aurlng the! wccedin&ma&h pluwany balance carriedover becauseof an cxcee8 wer **4**1,75O,O#.OG,whichmay have **been pa!d**  lnto **the fund**  **by** virtut of other laws in prior ronths.

Ut **ahmrtr** your **second** question**In** the af?irmatlvt; i. t., you say Issue during any one uonth warrantc for the payawntof old a@ ao8lsrance and ebninlstratlon

combined totaling

180x-t than $l,?~,O~.OG, If there ls an uncxpcrulcd balanct in the fund f%xu priormonths to cover ruch excts8. The canctllcd

warrantcredit ta uhlch you 

### refer may be **one** of the sources oi such uncxpcnded balanceof f’unda

prtvlou~ly allocatrd.
Yours very truly

BY Walter 3. Koch

.48S iatant.
**bWCrmm:ba**

- hPFRWl?D JCL 3, **1042**
**Oerald C.**  **ti**

**- ’**  **2**