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
Youhave recently asked an opinion of this office concerning payment of appropriations authorized by the Legislature underActs 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 sumpayment 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 andHarris Counties a regional water quality management program including provision ofwaste disposal systems and regulation of disposal ofwastes." (Acts61st Leg., 1969, ch. 409,p. 1336, codified by Vernon asArt. 7621d-2, V.C.S., Sec. 1.01). TheAuthority was created '...pursuant toArticle XVI, Section 59, of the Texas Constitution,
...which shallbe agovernmental agency andbody 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 tohave general independent powers subject to supervision by theWater Quality Board in the instances therein stated. Section 3.24, of theAct (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 ofAmerica

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Hon. Hugh C. Yantis, Jr. (page2) (M-723)

(1)toperform water quality andwaste disposal management inspection, and enforcement functions and give technical aid and education services to any entity that is aparty to the agreement; and (2)to transfer money orproperty to any entity that is a party to the cooperative agreement for the purpose ofwater quality andwaste disposal management, inspection, enforceme, and technical aid and education." (Emphasis added) This above authorization is likewise granted to theWater Quality Board in the same language (Art.7621d-1, Sec. 5.05,V.C.S.). We note that there areno restrictions in either Act to limit the amount ofmoney orproperty or themanner inwhich itmay 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 awater quality management andwaste disposal control program within the area of theAuthority, 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 themanner or amount inwhich the appropriations are to be paid. Acts 61st Leg., 2nd C.S., 1969, ch. 50p. 861. Our opinion is that the contract between the Texas Water Quality Board and the Gulf Coast Waste Disposal Authority

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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 awater quality management andwaste control program..." by theAuthority as set out inparagraphs Iand II of the contract. In paragraphs IB and IC it is stated:

"B. The Board covenants and agrees topay and transfer to theAuthority 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. Ifthe transfers as described in Subparagraph B, above, cannot be accomplished for any reason, then the Board agrees and covenants to pay theAuthority 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 bemade to theAuthority as the expenses are incurred on the basis ofvouchers submitted periodically to the Board by theAuthority

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

and approved by the Executive Director of the Board orhis designated representative." The other terms of the contract are in accordance with theprovisions ofArticle 7621d-2 andwith thepurposes of theWater Quality Board as set forth inArticle 7621d-1. Other terms in the statutes creating theAuthority provide formaintaining 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 amanner enabling him to report to the Legislature.
Inview 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 tomake a lump sum payment now to the Gulf Coast Waste Disposal Authority of the remainingportion of the $lOO,OOO.OO appropriated to the Boa/rdfor the fiscal year ending Ayu$t 31, 1971.

General of Texas

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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 LegalAssistant
ALFRED WALKER Executive Assistant NOLA WHITE FirstAssistant (M-723)

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