In accordance'with the request made by the Board ef Control for re-examination of Treasury Ac- count No. 23 W ecial Centenmial Fund" appropriated by House Bili 72$ Chapter 286 Acts of'l&th Legisla- ture; 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 re- port 00 follews:

Without an audit or complete study of such fund and upon assumption that the fund was comprised who& of Federal appropriations left over from the Texas Centennial, this Department held in former Opin- ions, 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 Em- bassy and grounds without the approval of Congress.

Upon suggestions from the Offices of the State Comptroller and State Treasurer that the remain- ing money in the Special Centennial Fund actually rep- resented amounts spent from State Centennial Funds which.could and should have been spent from Federal funds, and that as a matter of bookkeeping, the Federal funds had not been transferred nor applied to the ex- oees 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 reviewing the information sub- mitted, it is q opinion this balance can *2 ‘5 be considered State funds subject to dis- position by the Legislature.,

"The balance in the fund is a resi- due of funds received from the Federal government, from private donors and from reallocation made by the Centennial Con- trol Commission eut of funds granted for specific and special projects within the Centennial program,

"The commingling of these funds and the fact that the Federal Centennial Com- mission long ago made its final report and returned to the United States Treasury their unallocated balance 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 situation is entirely different from the statement or assumption of facts on which previous opinions of this Office were based, In accordance with such findings by the State Auditor, we now hold that the fund was subject to ap- propriation for the purposes set out in House Bill 728 of the 49th Legislature, which provides in part as fol- lows:

"There is hereby appropriated all moneys now in the Texas Centennial Cor- mission funds if and when available, to oFply sn the purchase of the French Em- bassy building and all properties there- in. 0 0"

(Section 2 contains a description of the prop- erty to be purchased under said Bill.)

Yki3 building is hereby set aside fer the us08 and urpaser ef the Baugh- ters of the Repub fc of Texas, and the E

said Daughters of the 110 blic of Texas be and the ssme are here r y authorised to 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 *3 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 proper- ty, and when there is tendered to the Board a good and sufficient deed conveying fee simple title to the State of Texas you are authorized to accept the same for the State. !!hereupon you will be authorized to request that the Comptrolfer issue 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 purchase price of said property fs at least e- qual to that balance, The Comptroller will be author- ized to issue, and the Treasurer will be authorized to pay such warrant. We call your attention to the fact that House Bill 728 becsme effeetive on May 31, 1945. Your contract for purchase should be completed on OP before May 31, 19&T, before the appropriation expires.

SUMNARY Since the State Auditor has found Treasury Account No, 23, %pecial Cen- tennial Fund", to be State funds (a fact situation which was not known when for- mer Opfnions, Nos;O-6522, O-6780 and V-27 were written), the balance therein may be used by the Board of Control in accordance with House Bill 728, 49th Legislature, for the purchase of the French Embassy,

Verv truly yours /;ucr, caveu

Price Daniel Attorney General PD/rt/erc