December 9, 1952

Hon. Larrr 0. Cox O~lnlon No. V-3.547 Executive-Director. Board for Texas State Iios- Re: pitala'.&

Special Schools Austin, Texas Necessity for business
managers of the various lnatltutlons

under the Board for Texas State Hospitals and Special SchooIs to approve vouchers for expenditures from the States

Hospitals and Special Schools Build-ingFund. Dear Sir:

question:'

,Youhave requestedan opinion of the following

"Pleaseadvls,e

this office whether the businessmanagers for the~varlouslnstltutlons or the ExecutiveDirector should initiate and approve vouchers, for payment out of the State Hospitalsand Special SchoolsBuilding Fund." ~,

House Bill 2, Acts 51st Leg., 1st C-S., 1950, ch. 1, pi 1, created the "StateHospitals and Special Schools Building l?und" and appropriated$5;000,000to the Hospital Board for the purpose of constructing,repairing and equippingbuildings.

Section 1 of Article II of House Bill 426,
Acts 52nd Leg., R.S., 1951, ch. 499, p* 1228 (The Gener'Bl Appropriations

Act) contains appropriations to the various State Hospitals and Special Schools entitled "Maintenance and repairs, out of local funds" and "Capitaloutlay, Improvements

and equipment,outof, local funds." All other appropriations to the respective Institutionscontained In Section.1 are out of the general revenue fund. Section 26 of Article II of the General Appropriation Act contains the followingappropriation at page 1298:Hon. Larry 0. Cox, page 2 (v-1547)

.-

'(a) There is hereby appropriatedto the Board.for Texas State Hospitals and Special Schools Five Million Dol~ai~~~($5,000,000) for each fiscai year of the ~blemiurn ending August 31, 1953. Such funds are to be credited to the State Hospitalsand Special Schools Building Fund which Is the saine hospital building fund as provided for in Houqe Bill,No. 2, First Called Session, Fifty-first Legislature.

-Y "From and after September 1, 1951, all balances

eonhand or remairrlng ln the State Hospital Fnqd as created-by A@icle XIX, ,House Bill .No.

3;: First Called Session of the Fiftyfirst Legislatureand al? moneys accurlng'to said fund on and after September l,, 1951, froln any and all sourceswhatsoever are hereby transferredto the GeneraI~Revenue Fund.

"(3) All funds credited to the State Hospitalsand Special Schools Building Fund under this Article are hereby appropriatedto the Board for Texas StateHospItals and Speclal Schools for the purpose'~of architectural and:engifieering

plansfi'cpnk%tructlng,repalring and equippingsuch buildings as in the opinloti.df

the Board are necessary to the
proper care of those committedor to be commltted' to such.hospltals

and special-sbhools accordingto law. Provided,however, the fees paid to an architect shall~notexceed six per cent (6$) for the pItis, specIfica=' :. tlons and supervisionof construction of said buildWgs and all construction contractsmade for,~and the final acceptanceIn connection with such construction, other thanthe plans and specifications, shallbe subject to the review and approval of the.Eoardof Control. The Board may contract for, and pay plans and specifications

for any contemplatedconstruction, even though the contract for such lans and specifications may be made in one (1 year P and the contract for constructionis entered Into the followingyear.Hon. Larry p. Cox, page 3 ~(v-1547)

',Pollc;(:~ the Board Hospitals It is hereby declared the intent and

the Fifty-second

Legislature that shall use such moneys from the State and Special SchoolsBuildingFund'as
may be required to repair and rehabilitate existingbuildingsand facilities."

The appro rlations Akkle II (pages containedin Section 1 of 12 O-1282) i are specifically made to the various State Hospitals and Special Schoolswhile the appropriation

contained in Section 26 Is made to the Board for Texas State ,Hospltals and Special-Schools.

The Board for Texas State Hospitalsand Special schools was created by House Bill 1, Acts 51st Leg., R.S. 1949, ch. 316, p. 588 (Article317413, V.C.S.). Section 10'provldes:

"The Superintendent of any Institution named herein with the,approvai of the Executive Director may appoint a business manager who shall receive a salary not to exceed;Slx ThousandDollars ($6,000). per 'yearand who shall receive the-same emolumentsas the Superlnterdent. The busltiess manager shall
manage the fiscal affairs of the institution, handle all maintenancematters,be responsible for the efficient operation of all auxiliary enterprises,

and prepare and submit ,to the ExecutiveDirectorthe estimateof needed'approprlatlonseach biennium. He may have such other.dutles

and powers as 'the-Board for Texas State Hospitals and Special Schoolsmay,by rule and regulation prescribe. He shall give bond In the sum of Twenty-fiveThousandDollars ($25~000)payable to the State of'Texas conditioned

uuon the faithful derformarice ofHon. La&y 0. Cox, page 4 (V-1547)

It Is noted that the underlinedportion of Article 3174b Is strictly limited to'the "appropriated funds of the institutions" and does not apply to funds appropriatedto the Hospital Board.

Since the Board for Texas State Hospitals and Special ~Schools

Is the only agency of the State authortied
to expend~ploney

out of the Hospital Building Fund, It Is

our opinion that the appropriation contained In Section 26 of Article II of then GeneralAppropriation Act does not constitute "appropriated funds of the institutions". within the meaning of Section A0 of Article 3174b, V.C.S.

-Section1,of Article 6252-5,V.C,S., provides:

"All expenditures

of funds appropriated
to the~qarlous

boards, bureaus, commlsslons and other-agencies of the.Stateof Texas nor in existence,or hemafter created shall be made Sf order of the governingbo,dy thereof and tfie.

same shall be’

pa%bjr warrants drawn by the-Comptroller of Public Accounts on vouchersapproved,

by the chzi$man or presldent bf the governingbody or by an executive officer, official or .empJoyee of such board, **buregu,** commlsslonore other agency desi,gnated ,bythe governingbody by or~der entered on Its minutes, lf any, and countersigned by the secretary or an executiveofficer or official deslgilated

by the governingbody by order etkered on its minutes, if any. A certified
copy of any such order ktered pursuant to the provisionsof this Section designating

an officer,.official or employee to approve and execute or to countersign vouchem, togetherwith a slgnature’card of the person
or persons deslgnat,ed, ahal- be fllzd with the Comptrollerof Public Accounts.

We have been informedby the Comptroller'sofvice that pui-suant to Article 6252-5 the ExecutiveDlrector of the HospitalBoard has been designatedto approve vouchers for it. Therefore,you dareadvls.ed that the ExecutiveDirector of the Board for Texas State Hospitals and Special Schoolshas atithority to initiate and approve vouchers affecting the “StateHospit~als and Special Schools Building Fund.‘I.Hon. Larry 0. Cox, page 5 (V-1547)

SUMMARY

!l!he ExecutiveDirector of the Board for Texas State Hospitalsand Special Schools, rather than the Business Manager of the various estate

hospitals and special schools should Initiate and approvevouchers for payment effecting the act designatedas the "StateHospitals and Special Schools Building Fund" created by House Bill 2, Acts slat Legislature,1 Called Session, 1950, ch. 1, pa 1.

APPROVED:

J. C, Davis, Jr. County Affairs Division

B. Jacobson ExecutiveAssistant

Charles D. Mathews First Assistant

JR:am Yours very truly,

l'RICE DANIEL Attorney General

Assistants