Untitled Texas Attorney General Opinion ( 1968 )

THE A-ITORNEY- GENERAL OF ?!?EXAS May 21, 1968 Honorable J. W. Edgar Opinion No. M- 238 Commissioner of Education Texas Education Agency Rer Whether equipment purchased Austin, Texas for and provided to vocational rehabilitation clients is re- garded as client services and may be excluded from inventory required of state-owned per- Dear Dr. Edgar: sonal property. You have requested the opinion of this office upon the question of whether: .equipment purchased for and pro- vided ;o'vocational rehabilitation clients (a part of their physical rehabilitation pro- gram and/or necessary to their restoration to a productive place in society) be regarded as client services or in any other manner denom- inated that thereby such equipment shall be excluded from inventory required of state- owned personal property?' In connection with the foregoing question you have stated that: "Within the total vocational rehabilita- tion process for handicapped clients, it is often necessary to purchase certain items of equipment for the client, as an essential part of his rehabilitation program. Such items can and do range from an artificial leg, to a med- ically prescribed fixture necessary for client hygiene, to a typewriter for training and self - 1161- Dr. J. W. Edgar, page .2~(M-238) " employment. Automotive tools, welding kits, wheelchairs and myriad of such items are pur- chased for clientservices. II . . . "The physical and administrative burden involved in the.inventory forclient equipment is serious. Growth of the Vocational Rehabili- tation,Division within the past five years has. been tremendous. The client case load has mul- tiplied to a point that a major proportion of couns,elor-timeis and will be involved in at- tempting to keep the inventory accounting com- plete, thereby detracting seriously from the, time available for client servicing and coun- seling." You have further informed this office by your letter that communications have been had with the Regional Office ~of the Department of Health, Education and Welfare concerning Fed- eral requirements forkan inventory control and have been notified that:, ,I . . .there is no requirement for main- taininq such inventory; only the usual fiscal responsibility concernins such expenditures * . .we do not feel that an annual inventory of equipment purchased for clients with federal funds is necessary or desirable because of the cost of maintaining such an inventory." (Emphasis added.) In closing, you have stated.in your letter that: "In the face of this mounting burden,ex- perienced . . . by the Vocational Rehabilitation ,. Division in maintaining such inventory accounta- bility, discussion meetings were held with repre-, sentatives of the State Comptroller and State Auditors Office. They share the concern. They - 1162- Dr. J. W. Edgar, page 3 (M-2381 recognize that we are burdened with a problem which entails expending far more, estimated on an annual basis, in the inventory process than the client items cost initially. Zt was brought out that from an accounting stand point, the equipment is considered services and not capital outlay. ” The State of Texas accepted the provisions of the Federal Vocational Rehabilitation Act, 29 U.S.C.A., Chap. 4. part 401, with the enactment of Article 2675-1, Vernon's Civil Statutes. Section 3 of Article 6252-6, Vernon's Civil Statutes, provides, in part, that: "All real and personal property belonging to the State shall be accounted for by the head of the agency which has possession of the proper- ty- "(a) The Comptroller of Public Accounts shall administer the property accounting system established by this Act. The State Auditor shall adminhster the property responsibility system established by this Act. The ComptrolZer shall issue such rules and regulations and manual of' instruction and prescribe such records, reports, and forms as he deems necessary to accomplish the objects of this Act subject to the approval of the State Auditor. The State Auditor is directed to cooperate with the Comptroller in the exercise of the Comptroller's rule-making powers herein granted by giving technical as- 'sistanceand advice." Section 4(c) of Article 6252-6, directs that: "All personal property owned by the State shall be accounted for by the agency which pos- sesses the property. The Comptroller shall by -1163- . . Dr. J. W. Edgar, page 4 (M-238) Lc.gtulation define wha_t is meant by-&crsonal -- --.-.- ``o&g~-fZo~@ ourooses of this-. Un- ,,~ less the Comptroller prescribes,otherwise, personal property shall mean all non-consumable personal property. In nromulqam such regula- tions, the Comotroller shail take into accouF G&value of the orooertv, its expected useful &f-e,- and cost of record keeoinq should bear a ~$``~le rclationshio to the cost of the orooertv -uficJ.n.-,_which records are kept. The Comptroller shall consult.with the State Auditor in making such regu’la- tions and the Auditor shall cooperate with the Comp- troller in the exercise of this rule-making power by giving technical assistance and advice." (Em- phasis added.) The Crippled Children's Division of the State Depart- ment of Health purchases equipment for the use of the children with whom it works similar to that used by the Vocational Re- habilitation Division of the Texas Education Agency. Section 3 of Article 4419c, Vernon's Civil Statutes, enumerates certain powers of the Crippled Children's Division of the State Deoart- ment of Health and is set forth in part as follows: "At the discretion of the State Depart- ment of Health, transportation, appliances, braces and material necessary in the proper handling of crippled children may be in part or entirely provided. Such appliances, braces and material, beins'a part of the care and treat- ment Droaram and necessary to the ohvsical restora- tion of the individual crippled child as defined in this Act, shall not be considered to be state- owned oersonal property and shall be excluded from the personal prooertv inventorv reauired of state- owned orooertv; and all such property including ~appliances,braces and materials, being a part of the care and treatment program, and which are now being accounted for under the provisions of the present system of 'accountingshall be deleted from and not required after the passage and effective date of this Act. The State Deoart- ment of Health, however. shall maintain at all - 1164- . Dr. J. W. Edgar, page 5 (M-238) times a complete record of such appliances, braces and materials provided and such records shall be verified bv the State Auditor." (Emphasis added.) In view of the foregoing, we are of the opinion that the Comptroller of Public Accounts, upon consultation with and approval by the State Auditor, could promulgate.certain rules and regulations, under the discretion conferred upon him pur- suant to Section 4(c) of Article 6252-6, whereby certain equip- ment purchased for and provided to clients of the Vocational Rehabilitation Division, being of a consumable nature as properly determined and defined by the Comptroller, would not be deemed "personal property" for the purposes of Article 6252-6 and would thus not be required to undergo an annual inventory. In this connection, however, the Comptroller of Public Accounts might require some form of record keeping such as that required of the Crippled Children's Division of the State Depart- ment of Health under Article 4419c. SUMMARY The Comptroller of Public Accounts, upon consultation with and approval by the State Auditor, could promulgate certain rules and regulations, pursuant to Section 4(c) of Article 6252-6, Vernon's Civil Statutes, where- by certain equipment purchased for use by clients of the Vocational Rehabilitation Division of the Texas Education Agency would not be deemed "per- sonal property“ for the purposes of Article 6252-6 and would thus not be required to undergo an an- nual inventory. V& truly yours, ORD C. MARTIN orney General of Texas Prepared by Pat Bailey Assistant Attorney General -1165- . 1 Dr. J. W. Edgar, page 6 (M-238) APPROVED: OPINION COMblX~EE Hawthorne Phillips, Chairmen Kerns Taylor, Co-Chairman Thomas Mack Roger 51er Malctalm Quick Dyer Moore, Jr. A. J. CARUBBI, JR. Executive Assistant - 1166.