Case Information

*1 ---- OFFICE OFTHEA'ITORNEY GENERAL OFTEXAS

AUSTIN

mnorable c&m-ley Iioclburt

State Treasurer

Austin, Texas

Dear Mr. Locrkhsrta

propoval* eer- t4ln question0 twm or the 4bms-

tter &nil 4eoeBIp4ap at the Acts or the of t&e 44th L6gzL6~ he ore*tion af PO Paul of tho Texas w to m,wo.

ter ths sffectlre date of the tXlt8tiTW$ Of the cO6UptPOl~ tment, Trecrsury Dopwtment, neraP4 Dep4rtzmnt, Texas Rystem snl the tuo Huntsville conferred w%th aaoh other aad 8ormd out the pl8n for est4blGahlng the Revolving purd. Under the plan adoptea, the etatie Treasurer depositad the roomy itl the tW0 HuIMville b&u&# ($a$ ,ooo %n 6aoh bunk) from Treaary general oash, the theory beixig that 3.88 aa6e 8 loss should be eustaimd, the

Donorable Charloy Lockblast - Page 2

loss would bc chargeable to the Prison System Funds cn the books Of the State Treasury and the State Couptroller and the Prison System recover its loss by disposing; of the sccurltLes required by Rouse Dill No. 78, to be deposited :fith the General Danager of the Prison System. The Huntsville Banks do not

make charges against the deposits main- tained witb them by the State Treasurer but pay claims against the Prison Sys- teu from another account with the undor- standing that the WSX~BBIUI amount to be pi& is $26,000 from each bank. The Prison System setis its claims to the State Comptroller,~who issues warrants on the State Treasury drawn against

Wison Funds and these warrants are

credited by the banks to the claims

account againet the Prison System.

** 4s *

sllaprcsentativcs of the State Auclitor*s Department, State Comptrol- ler's Department and the State Troas- ury Department have di.soussed the

change as recommended by Dr. King

and have agreed that the following

qucst%ons be subDitted to you for

answeringr

"(1) Should the money now on as- posit with the Duntsville Banks be with- drawn by the State Treasurer anil warrants drawn on the Texas Prison Funds be sub- stitutoat

v(2) If your answ~er to question No. 1 is in the affirmative, would the Prison system have authority to use the $60,000 as a revolving fund by clrawixig checks against tha funds on Beposit with the Huntsville bankst

"(3) If your answer to question No.2 po in the affirmative, should the vouchers

242

Honorable Charley Lockhart - me 3

submitted to the State Comptroller by the Prison Systam require the warrants to be issued payable to the Prison Sys- ton or.to the original clPim4ntsP

l (4) IS the warranto should be drawn payable to t&e Prison System, what sort of a olsim should be pm-

sented to the State Comptroller tor iesu4noe of the warrants?

.(a) If your 4n6wer to questions Ros. 1 and S are in the 4ffirnr3t~ve, a.ud the Prieon System p4ys 8n invslid clalra, where does the responsibility 1%e?

W(S) If your answer to question To. 1 Is In the negrtiye, 4nd the present plsn is continued 4nd an invalid e14inl %4 paid by one of the Runtsvllle 34&s and charged againet the aoeouut titled *Claims Against the Texas Prison Systems,’ does the bank have the right to offset any loss sustaiaed aga%nst the speclol deposit msintainea there by the State Treaeuryt

*(7) IS you rule that the money should be wlthdrauu from the State Preae- ury by w4rrants and the w4rr4nts are is- d, does the State Treaeurer cued aad F have ,any urther responsibility fob %ike money withdramt

‘(8) If.;‘yonr 4nswer to question lie. 1 IS In the aff%matjlve, ahould the war- rante for plao%ng the (!50~oi30 Sn the Huntsville banks be s&is payable to the Texas Prison 8ystem or to the auntsvllle J&X& and Trust Qomysny, Runtsoille, Tex88, and the Birst Ration41 Rank, Huntsville, Texas, Par credit to the Prison Industrial Revolvine; $naB?

C(e) If your answer to question lo. is In the negative and the present plan is

contimmd and a 10~4 4houlU otmur, tauld the loss be ohargeable to the air021 In- dustrial ~erolring Fuw on the mom ot the,State Treaeurer and State &xnptrol- l@P?4

Beation 1 ef II. D. w is a4 follms(

Qkom am3 af6er t&e Mfeetfve uafe of ths8 A&f, 6he mate Treamrer of the state of vex84 4hal.l. deposit

sucEioient amount of poney reoeited

by b&m from the #tenerr yanryec 0P

6he Tex84 Prioon ey4tem out ef 884843~ earned by au% belamgiq to t&s State prloon 6yst4m ia '@un6wsllcr Tea88

of m.fty Thouspoa BoZlars (~0#000J, or 40 4wh there& 88 84ay be weem-

aorp to crsate a fund of Pifty !#hans- 8nU Pollars ( 0,oao) to be known a8 the Iadustria I%tol* ?wd of the plant,~ 4ho0 anU print 4hop aml *t&r Szulnstriea and delivery of $YMehed

pmduat4 a4 prwided 9.81 the Iansru 1111 ir eciib By&m,

Appropr~fS0n and 6380 &ate Tre84urer uhal1.taU

Fund up t0 the rsrirnrm

funda 8bWe pmY%&U, and iarid fuUle ehrll be n@ed i4r th4 p‘Omp6 Paysrsnt tn oaah ef all

equal alwunt4 lntfie~~~tnillel~

and Trunt Company at iiudo*Zlle~ Rm44, and the Piret llatimal Bank at Sunte- ,rille, Cexae, and mid baaita shall de- posit with t&e @enerU yona(te~ of tbtj Prieon system, bonU4 or 06her 4eeurl- ties to be apprmsd by tho Attterney

OenereS 4f the State of B-4 4uffi- dent to 444ure said dep44ft.4

nonorable Charley Lockhart - Page 6

It is the opinion of this department that your questions should b0 answersd as hereinafter etated, observing for convenience sake the nu&er- lug given by you.

1. Question NO. 1 should be answered in the affirmative. Section 1 Of the Act in question author- ising the State Treasurer to create the revolving fund requires him to create the same out *of money received by him from the General Kanager of the Texas J?rieon System out of money eaxned by and belonging to the State Prison Syetem in Iluntsville, Texas.' The fund as it has been 0reated and now exiets was not, there- fore, constituted out 0f the proper m0nies, but on the contrary, appears to have been created with Treasury general caeh. This mistaken method should be eorreot- ed in the manner indicated by this answer.

2. The Prison System would have authority to use the revolving fund for all lawful purposes, but not by *drawing checks against* it as a depositor would.

Seotion 4 of Ii* 3J. Ilo. 78 declareat "Payment Ipade from the Induo- trial devolving fund shall be mpde upon duly autbentiooted oertiti- cate by the G+eral &tanager of the State Prison System and shall be paid by the State Comptroller of Public Aaoounts by proper warrants drawn on said fund as now rewired by law for the payment of other charges a&net the State of Texas.* This claarly indicates that the Revolving Fund thus set apart ie nevertheless a State fund, sub- ject to be drawn ag8inSt by State authority and n0t to be checked out upon the check of the State Prison Sye- tern or any representative of the Syiystem.

3. Vouchers submitted to the State Gomptrol- ler and the warrants b884d thereon should be in the nam of the person entitled to payment from such fund. The vouchers need only to be properly authenticated by the priscm System to authorize such payment.

Honorable Charleg Loc~khart * Page 6

4. If by svarrantss in oonneation with your question 4, you refer to warrant4 issued to or for the benefit of olainmnts for sales to the Prison System, this question is ansvored by what we have said in ans- 4er to question 3.

If, however, the word swarrantss is used in this question 4 as indicating the means of oreating or restoring the de leted x&ni4um 4um of the Revolving Fund, our answer to th P s question 14 that the 4453 8h0uia be in favor of the deposit&e banks for deposit by State Treasurer Industrial Revolving puad Texas Prison System.

0. Any authorized adsdnietrative officer of the Prison System who approves, or otherwise authorize4 and induoes the exeoution aM paymentof a warrant out of the Revolving Bund when no valid olaim exists there- for, would be oirilly liable for aa,y lose thereby to the Btate of Texas directly, or by aubro:ation to sny other person or offioer who had been compelled to pay euoh a loss. Of oourae, any person invoking the doo- trine of subrogation or 4eekWig a recoupment or lndem- ndty An auyw%se would himself have to be free from any negligence or oulpabillty whatever in respect to the sdsapplioation of the fund.

G. This question need not be answered in view of the fekt that we have not answered question No. 1 in the negative.

Under our Interpretation of the Act in question, $e State Treasurervs duty and liability abide 8nd oontinue with respect to the Revolving Fund until the 4ame has been lawfully paid out to proper olainmnts, or otherwise fully aocountad for. In other words, the Revolving Fund iteelf 14 publio money in the posseosion of the State Treasurer to be disbursed and aooounted for as other public funds Oosdng into his hands.

8. Thfs question has already been answered in this reply, to the effect that the instruments of deposit should be payable to the'respeGtiVc dopoeitee banks.

9. This question need not be 8n4wered, in

Bonorable Gh*loy t0crYhart - p6go v

hew of the fact that we hate not answered question 80, 1 in the nagativer

We oco nOtamasdfulof Itoml~ in thoBfen- nial appro@ation mde by tb-e 44Nh begiolature for the Prison ayetern* Thin Itos 8-woppopiatee the $60 000.

00 originally approprirtod for the oro*tion of this ~,andsPJreoo~bber8ppcopsirb~ooa~thelwre 44uroo of an eddition8l @0,000.00, llmking a total in th@ia;lpst;rialammingRmdot ~100,ooo.00. St 8uthori6o4 thePen4ral Manager of the Pri4on8y4tsata issue 8 touoher upon the plmd %hWb ahall be Bent to theBoard of Control and the l&ate Goorptroller for op provalaxlmgiskmtion,ud laid Wmptroller ball is8nedhtUy refura eaid vouohW~ if found lm be oor- rgot, to the0asU.e~ of UmFriaoa Byetoa,who f&all iesue adraftuponthebaaker benlrs mummated horn%%% in p4yrPent of 4eidroWmr.4

ThbmathodofdAPlburMsn4atefthoFuxldb apparentl.yinoonfl%io8 oithwhattehae saidabove.

we h8Yo all-a&y quoted Bf8otioQ 4 of U. B* no. wta reieron8e to the manner of wing Qut said Appvopri.atiea&t dsnot oartroll to ohange the w p4y6anf or die effeot

bursonxmt of thepurd prtml.diM fa iafirB. #a.m.

PI Ba go, 'pB ds a gewrral law ood it i4 884t oat to 8memd or repeal the gmwime of ana priation a general ctatute. EY (2-d Appr4prUtionA4tawld poeelblyhwe the legal effct8tCocagoti the a;anscell UT, upon 0 g with all oonatitiatifmal nqalm- ment4 anb 1 6 a4 to legielatiaa, but euuh %a nof the u4ual part ordhary Qireot.

In Oealey tr WbugfJ1t4~4 of tbo lko*lla of roxae (the Alwo 088~3) 16% 81+ 1. sw, Ghtef Justioe F4 eaidr

*St wan never ooatetnplated that avalid imlstinglaw I)houldlHm-

pealed by an appropdation oi money, even though, a4 is not the 0840 &a

this imtanoe It b4 toWly inoen-

ellatent with ihe term of the emlet- ing law. l + * *8 a repeal* a04 *Admftt%ng tint

IIligbt be epndprichad aaumjj the yarious

and WudTJ ltcme of a general appw-

priotion act, et.111 suubh an aat would

not be 0. aubJeot or aaoount for and

onrbioh nxmeyga are approprlattd,aml

nhoul& be ax~eeed in the tStla. It

uat3 nw6e ooatelnplated that an aot

mhouldbberepealedbj anitsrm2.n anap- propriatSoa bill, and thare is now

in the item oppropriatiag the ~QQO.00

to s.mprw8 the Alamo pvQe.rty thfbt

wlnoeo any desire upon the part oi the Gegislatura to take the ouMm¶y UP

the pro rty f+roa those to whem it baa bean r an rueted by law. * 0 e

l EYen if th e item which is uignb pie&by appellantebybeing atiled a

*repealSng a&' bad been interrbea as

an lI4IrAemnt or the Bet of ram, it

wouli% not be in harm%ny with &~,fiells III, section fj6 of the constitution

whinh prwidas thet no law sbrll be by referonos to its title, iur18W

but in ma&z oaae the wt Fsriered or the 6wtian or eeotiona aauwkl shall hors-ctlrrrotec%nnd publi&edatlen&h.*

Trustina; that th3.m reply till have answered yau: questione 6atis&aotor~ly, we BF8