R-49g

THE

AUSTIN. TEXAS

May 19, 1947

HonorableHall Logan,.Chairman Stats Board of Control Austin, Texas opinion NO. v-206

Re: Use of Special Centennial Fund for purchase of French Embassy.

Dear Mr. Logan:

In accordance'with the requestmade by the Board ef Control for re-examination of TreasuryAccount No. 23 W ecial CentenmialFund" appropriated by House Bili 72$ Chapter 286 Acts of'l&thLegislature; for the purghase of the l%ench Embassy in Austin, Texas, and in view of the recent report of the State Auditer that the fmmd constitutes State money, we report 00 follews:

Without an audit or complete study of such fund and upon assumptionthat the fund was comprised who& of Federal appropriations left over from the Texas Centennial,this Departmentheld in former Opinions, Nos. o-6522, 0-6780 and V-27, that the money could not be used in accordance with House Bill 728, 49th Legislature,for the purchase of the French Embassy and groundswithout the approval of Congress.

Upon suggestionsfrom the Offices of the State Comptrollerand State Treasurerthat the remaining money in the Special CentennialFund actuallyrepresented amounts spent from State CentennialFunds which.could and should have been spent from Federal funds, and that as a matter of bookkeeping,the Federal funds had not been transferrednor applied to the exoees spent out of State funds, this Office askad Hon. 0. A. Cavneso, State Auditor, to examine the account. By letter dated April 16, 1947,Mr. Cavness stated:

"After reviewingthe informationsubmitted, it is q opinion this balance canHon. Hall Logan - Page 2 .
v-206 ‘5

be consideredState funds subject to dispositionby the Legislature.,

"The balance in the fund is a residue of funds received from the Federal government,from private donors and from reallocation

made by the CentennialControl Commission eut of funds granted for specific and specialprojectswithin the Centennialprogram,
"The comminglingof these funds and the fact that the Federal CentennialCommission long ago made its final report and returned to the United States Treasury their unallocatedbalance precludes,I believe, any other claim to the present funds other than the claim of the State of Texas."

In view of this report, the fact situationis entirely differentfrom the statementor assumptionof facts on which previous opinions of this Officewere based, In accordance with such findingsby the State Auditor, we now hold that the fund was subjectto appropriationfor the purposes set out in House Bill 728 of the 49th Legislature, which provides in part as follows:

"There is hereby appropriated all moneys now in the Texas CentennialCormission funds if and when available,to oFply sn the purchaseof the French Embassy building and all propertiestherein. 0 0"
(Section2 containsa descriptionof the property to be purchasedunder said Bill.)

Yki3 building is hereby set aside fer the us08 and E

urpaser ef the Baughters of the Repub fc of Texas, and the said Daughters of the 110 blic of Texas be and the ssme are here ry authorisedto take till charge of said building and use of the same as they may see proper. The property of the said French Embassy shall be the preperty ef the State, and the. Hon. Hall Logan - Page 3 v-206

title of said property shall remain in the custody of the Board of Control."
Accordingly,it is our opinion that the Board of Control may contract for the purchase of the property, and when there is tendered to the Board a good and sufficientdeed conveyingfee simple title to the State of Texas you are authorizedto accept the same for the State. !!hereuponyou will be authorizedto request that the Comptrolferissue a warrant for the payment out of the Treasury to the owners of said property,of the balance of said fund, provided,of course, that the actual purchaseprice of said property fs at least equal to that balance, The Comptrollerwill be authorized to issue, and the Treasurerwill be authorizedto pay such warrant. We call your attentionto the fact that House Bill 728 becsme effeetive on May 31, 1945. Your contract for purchase should be completedon OP before May 31, 19&T, before the appropriation expires.

SUMNARY

Since the State Auditor has found TreasuryAccount No, 23, %pecial Centennial Fund", to be State funds (a fact situationwhich was not known when former Opfnions,Nos;O-6522, O-6780 and V-27 were written), the balance therein may be used by the Board of Control in accordancewith House Bill 728, 49th Legislature, for the purchase of the French Embassy,

Verv truly yours 

## /;ucr, caveu Price Daniel Attorney General

PD/rt/erc