Honorable Hugh C. Yantis, Jr. Opinion NO. M-723 

Executive Director 

Texas Water Quality Board Re: Contract Between 

1108 Lavaca Street Texas Water 

Austin, Texas 78701 Quality Board and 

Gulf Coast Waste 

Dear Mr. Yantis: Disposal Authority 

You have recently asked an opinion of this office 

concerning payment of appropriations authorized by the 

Legislature under Acts of the 61st Legislature, Second 

Called Session, 1969, chapter 50, page 861. Your specific 

request rephrased is: 

Whether the Texas Water Quality 

Board may make a lump sum payment now to the Gulf Coast Waste 

Disposal Authority of the remaining portion of the $lOO,OOO.OO 

appropriated to the Board for 

the 1971 fiscal year. 

The Gulf Coast Waste Disposal Authority was created 

for the purpose of ".. .developing and effectuating for 

Chambers, Galveston and Harris Counties a regional water 

quality management program including provision of waste 

disposal systems and regulation of disposal of wastes." 

(Acts 61st Leg., 1969, ch. 409, p. 1336, codified by 

Vernon as Art. 7621d-2, V.C.S., Sec. 1.01). The Authority 

was created ' . ..pursuant to Article XVI, Section 59, of 

the Texas Constitution, . . .which shall be a governmental 

agency and body politic and corporate of the State of 

Texas..." Art. 7621d-2, Sec. 2.01, V.C.S. In a review of 

the entire act, the Authority appears to have general independent powers subject to supervision by the Water 

Quality Board in the instances therein stated. 

Section 3.24, of the Act (Art. 7621d-2, V.C.S.) reads 

as follows: 

"The authority may enter into 

cooperative agreements with 

other local governments, state 

agencies, or agencies of the 

United States of America 

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. . 

Hon. Hugh C. Yantis, Jr. (page 2) (M-723) 

(1) to perform water quality 

and waste disposal management 

inspection, and enforcement 

functions and give technical 

aid and education services to 

any entity that is a party to 

the agreement; and 

(2) to transfer money or property to any entity that is a 

party to the cooperative agreement for the purpose of water 

quality and waste disposal 

management, inspection, enforceme, and technical aid and 

education." (Emphasis added) 

This above authorization is likewise granted to the Water 

Quality Board in the same language (Art. 7621d-1, Sec. 

5.05, V.C.S.). We note that there are no restrictions in 

either Act to limit the amount of money or property or 

the manner in which it may be transferred in the fulfillment of contracts. 

The general appropriations bill for the 1970-1971 

biennium makes the following appropriation to the Texas 

Water Quality Board (Art. III, p. 161, item 19): 

"19. Contracting with the Gulf 

Coast Waste Disposal Authority 

to carry out a water quality 

management and waste disposal 

control program within the area 

of the Authority, as authorized under the Gulf Coast Waste 

Disposal Authority Act 

For the Years Ending 

August 31, 1970 August 31, 1971 

100,000 100,000" 

We note that there are no restrictions imposed to limit 

the manner or amount in which the appropriations are to 

be paid. Acts 61st Leg., 2nd C.S., 1969, ch. 50 p. 861. 

Our opinion is that the contract between the Texas Water 

Quality Board and the Gulf Coast Waste Disposal Authority 

-3498- 
I . 

Hon. Hugh C. Yantis, Jr. (page 3) (M-723) 

was authorized by the Legislature under the laws stated 

above. 

We consider now the provisions of the contract itself. The purpose is stated substantially as stated in 

the enabling act, "to carry out a water quality management and waste control program..." by the Authority 

as set out in paragraphs I and II of the contract. In 

paragraphs IB and IC it is stated: 

" B . The Board covenants and agrees 

to pay and transfer to the Authority 

the sum of One Hundred Thousand and 

No/100 Dollars ($lOO,OOO.OO), effective upon the execution of this agreement, and further covenants and 

The optional features of the contract provide: 

"C. If the transfers as described 

in Subparagraph B, above, cannot be 

accomplished for any reason, then 

the Board agrees and covenants to 

pay the Authority for the expenses 

incurred in carrying out this program, determined in accordance with 

standard engineering and accounting 

procedures, including without limitation operating and overhead expenses. These payments shall not 

exceed $lOO,OOO.OO for the expenses 

incurred during the State fiscal 

year ending August 31, 1970, and 

$lOO,OOO.OO for the expenses incurred during the State fiscal year 

ending August 31, 1971. Payments 

will be made to the Authority as 

the expenses are incurred on the 

basis of vouchers submitted periodically to the Board by the Authority 

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. 1 

Hon. Hugh C. Yantis, Jr. (page 4) (M-723) 

and approved by the Executive 

Director of the Board or his designated representative." 

The other terms of the contract are in accordance with 

the provisions of Article 7621d-2 and with the purposes 

of the Water Quality Board as set forth in Article 7621d-1. 

Other terms in the statutes creating the Authority 

provide for maintaining bank accounts, authorizing bonds, 

taxes, loans, accepting grants, and charging fees, and 

requiring the state auditor to audit annually the 

Authority's books and accounts in a manner enabling him 

to report to the Legislature. 

In view of the foregoing, it is our opinion that the 

Texas Water Quality Board may make a lump sum payment 

now to the Gulf Coast Waste Disposal Authority of the remaining portion of the $lOO,OOO.OO appropriated to the 

Board for the fiscal year ending August 31, 1971. 

SUMMARY 

The Texas Water Quality Board 

is authorized to make a lump sum 

payment now to the Gulf Coast Waste 

Disposal Authority of the remaining portion of the $lOO,OOO.OO 

appropriated to the Boa/rd for the 

fiscal year ending Ayu$t 31, 1971. 

General of Texas 

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Hon. Hugh C. Yantis, Jr. (page 5) 

Prepared by Roland Allen 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Kerns Taylor, Chairman 

W. E. Allen, Co-Chairman 

John Banks 

Jim Swearingen 

Roland Dan Green III 

James Mabry 

MEADE F. GRIFFIN 

Staff Legal Assistant 

ALFRED WALKER 

Executive Assistant 

NOLA WHITE 

First Assistant 

(M-723) 

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