Untitled Texas Attorney General Opinion ( 2010 )


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  •                                  ATTORNEY GENERAL OF TEXAS
    GREG ABBOTT
    August 23,2010
    The Honorable Richard P. Bianchi                               Opinion No. GA-0791
    Aransas County Attorney
    301 North Live Oak Street                                      Re: Use and management of a county jail
    Rockport, Texas 78382                                          commissary fund under Local Government
    Code section 351.0415 (RQ-0841-GA)
    Dear Mr. Bianchi:
    You request an opinion about the use and management of funds generated by the operation
    of the Aransas County jail commissary (the "commissary'V Local Government Code section
    351. 0415 authorizes a sheriff or the sheriff s designee to operate a commissary for the use of inmates
    in the county jail. See TEX. Loc. GOV'T CODE ANN. § 3S1.041S(a) (Vernon 2005); 37 TEx. ADMIN.
    CODE § 291.3 (2010) (Tex. Comm. on Jail Standards, Inmate Commissary Plan). The sheriff or his
    designee "has exclusive control of the commissary funds" and must maintain accounts "showing
    the amount of proceeds from the commissary operation and the amount and purpose of
    disbursements made from the proceeds." TEx. Loc. GOV'T CODE ANN. § 3SI.041S(b)(1)-(2)
    (Vernon 2005). Commissary proceeds may be used only for the purposes set out in subsection
    3SI.041S(c), which include the costs of operating the commissary and various programs to benefit
    inmates. See 
    id. § 35
    1.041 S(c).
    You state that funds generated from the Aransas County jail commissary have been deposited
    with the county treasurer in reliance on Local Government Code section 113.021, and the interest
    on the commissary fund account has been deposited into the county general fund since approximately
    February of2008. Request Letter at I. Section 113.021 reads in part:
    (a) The fees, commissions, funds, and other money belonging
    to a county shall be deposited with the county treasurer by the officer
    who collects the money....
    IRequest Letter at I (available at http://www.texasattomeygeneraI.gov). The conunissary funds you inquire
    about are the proceeds generated by the operation of the jail conunissary, not the inmate's personal funds taken from him
    upon admission, earned while injail, or received from others and placed in an account for the inmate's use. See Tex.
    Att'y Gen. Op. No. GA-0534 (2007) at 1-2 (describing inmate's account).
    The Honorable Richard P. Bianchi - Page 2                       (GA-0791)
    (b) The county treasurer shall deposit the money in the county
    depository in a special fund to the credit of the officer who collected
    the money....
    (c) The interest accruing on the money in the special fund is
    for the benefit of the county in accordance with other law.
    TEx. Loc. GOV'TCODEANN. § 113.021 (Vernon 2008).
    You suggest that there is a conflict between the requirements of section 113.021 and the
    sheriffs "exclusive control of the commissary funds" under section 351.0415. Request Letter at
    1-2. You wish to know whether the proceeds of the commissary operation are "funds belonging to
    the county" within Local Government Code section 113.021. 
    Id. Not all
    funds held by a county officer in his or her official capacity are funds "belong[ing]
    to the county." See Tex. Att'y Gen. Op. Nos. GA-0704 (2009) at 1-2 (stating that Local Government
    Code section 115.901(a) authorizes the county auditor to examine the accounts of county officers,
    whether or not they relate to money belonging to the county); JM-1263 (1990) at 2-3 n.2 (stating
    that Local Government Code section 112.001 does not authorize a county auditor to adopt
    regulations with respect to funds and fees that do not belong to the county). We consider whether
    the commissary fund is a fund "belonging to a county" within the meaning of section 113 .021. TEx.
    Loc. GOV'T CODE ANN. § 113.021 (Vernon 2008).
    First, pursuant to the express terms of section 351.0415(c), the commissary fund must be
    used to benefit inmates of the county jail. See 
    id. § 35
    1.0415(c) (Vernon 2005);2 see also Tex. Att'y
    Gen. Op. No. MW-143 (1980) at2 (stating that all profits from operating ajail commissary must be
    spent for the "benefit, education, and welfare" of jail imnates). Thus, the proceeds from operating
    the commissary are funds held by the sheriff for the benefit of a specific group of persons.
    Second, the sheriff or his designee "shall maintain commissary accounts showing the amount
    ofproceeds from the commissary operation and the amount and purpose of disbursements made from
    the proceeds." TEx. Loc. GOV'T CODE ANN. § 351.0415(b)(2) (Vernon 2005); see also Mills v.
    State, 941 S.W.2d 204,206 (Tex. App.-Corpus Christi 1996,pet. refd) (stating that the county
    auditor met with the sheriff to explain accounting procedures and record keeping for the proposed
    jail commissary). In contrast, the county auditor ordinarily maintains "an account for each county,
    district, or state officer authorized or required by law to receive or collect money ... that is intended
    for the use of the county or that belongs to the county." TEx. Loc. GOV'T CODE ANN. § 112.005(a)
    'Commissary proceeds may be used only for an educational or recreational program and religious or
    rehabilitative counseling; clothing, writing materials, and hygiene supplies for inmates; an educational and a law library
    for use of inmates; funding physical plant improvements, technology, equipment, programs, services, and activities that
    provide for the well-being, health, safety, and security of the inmates and the facility; and the expenses of operating the
    commissary. TEx. Loc. GOV'T CODE ANN. § 351.0415(c) (Vernon 2005). "A commissioners court may not use
    commissary proceeds to fund the budgetary operating expenses of a county jail." Id § 35 1.04 I 5(g).
    The Honorable Richard P. Bianchi - Page 3                   (GA-079I)
    (Vernon 2008);3 see also 
    id. § 112.002
    (authorizing the county auditor to regulate collection and
    accounting of funds that belong to the county). The sheriff is thus authorized to maintain
    commissary accounts, just as a justice of the peace is authorized to place restitution on a hot check
    in a separate bank account not subjectto the county auditor's regulation, because the restitution does
    not belong to the county but to the holder of the dishonored check. See Tex. Att'y Gen. Op. No.
    DM-396 (1996) at 4.
    Third, section 351.0415 expressly grants the sheriff or his designee "exclusive control" of
    the commissary funds. TEx. Loc. GOY'T CODE ANN. § 351.0415(b)(1) (Vernon 2005). We give the
    term "exclusive control" its plain meeting. See TEx. GOy'TCODEANN. § 311.011 (Vernon 2005).
    The term "exclusive" has been defined as "vested in one person alone." See Kinnard v. Circle K
    Stores, Inc., 
    966 S.W.2d 613
    , 617 (Tex. App.-SanAntonio 1998, no pet.). This office has defined
    "control" for purposes of Local Govemment Code section 351.0415 as "the function or power of
    directing and regulating; domination, command, sway." Tex. Att'y Gen. Op. No. JC-0122 (1999)
    at 4. Thus, the authority to direct and regulate the commissary fund is vested solely in the sheriff,
    subject to the limits found in section 351.0415. See TEx. Loc. GOy'TCODEANN. § 351.0415(b)(l)
    (Vernon 2005); see also 
    Mills, 941 S.W.2d at 208
    (stating that commissary proceeds are "maintained
    by the Sheriff s Department").
    This office determined in Attorney General Opinion JC-0122 that purchases from jail-
    commissary proceeds are not subject to the competitive procurement requirements in the County
    Purchasing Act, Local Govemment Code chapter 262, subchapter C (the "Act"). See Tex. Att'y Gen.
    Op. No. JC-0122 (1999) at 4. The opinion, noting that the Act applied only to purchases by the
    commissioners court, concluded that the sheriff s "exclusive control" of the commissary funds
    meant that his or her purchases from jail commissary proceeds were not subject to the Act. See 
    id. (citing Texas
    Local Govemment Code section 351.0415). In reaching its conclusion, Attorney
    General Opinion JC-O 122 stated thatthe fund created by Local Government Code section 351.0415
    appeared "to be outside of 'county funds' for some or all purposes." 
    Id. at 3;
    see Tex. Att'y Gen.
    Op. Nos. GA-0364 (2005) at 6 (constable may retain a fee for delivering a notice to vacate premises);
    DM-396 (1996) at 3 (restitution on a dishonored check made to a justice of the peace belongs to the
    holder of the dishonored check and does not belong to the county); see also Tex. Att'y Gen. Op. No.
    JC-0062 (1999) at 2 (fees collected by a prosecutor for processing "hot checks" are "money
    belonging to the county" within Local Government Code section 113.021(c)). In our opinion, the
    - -- --·sheifrr·i;"exdiisivecoriiiol"ofthecoiriiriissaryfundaIsomeans··thitfthesheriffrefuiils·cusfoay 6f-
    the fund instead of having to deposit it with the county treasurer pursuant to section 113.021(a).
    'The county auditor must examine the commissary accounts at least annually if the sheriff supervises the jail.
    See TEx. Loc. Gov'T CODE ANN. § 351.0415(d) (Vernon 2005). A private vendor operating a detention facility must
    have the commissary accounts examined by an independent auditor at least annually. See 
    id. § 35
    1.04 I5(e); see also
    Tex. Att'y Gen. Op. No. GA-0704 (2009) at 1-2 (concluding that Local Government Code section 115.901(a) requires
    the auditor to examine all accounts held by the sheriff in his official capacity, not merely county records held by the
    sheriff).
    The Honorable Richard P. Bianchi - Page 4            (GA-0791)
    You also ask whether the interest accruing on the commissary fund belongs to the county or
    to the commissary fund. Request Letter at 1. Texas courts follow the common-law rule that interest
    follows principal. See Phillips v. Washington Legal Found., 
    524 U.S. 156
    , 165--66 (1998); Sellers
    v. Harris County, 
    483 S.W.2d 242
    , 243 (Tex. 1972); Lawson v. Baker, 
    220 S.W. 260
    , 272 (Tex. Civ.
    App.-Austin 1920, writ refd). As the Texas Supreme Court has stated, "[i]nterest ... is an
    increment that accrues" to the principal fund earning it and, unless lawfully separated from the
    principal, becomes part of the principal. 
    Sellers, 483 S.W.2d at 243
    . Section 1 l3.021 (c), in
    providing that the interest on "money belonging to a county" will be "for the benefit of the county,"
    separates interest from the principal of money that belongs to the county. See TEx. Loc. GOV'T
    CODEANN. § 113 .021 (a), (c) (Vernon 2008). Because we have concluded that commissary proceeds
    are not funds "belonging to a county" under section 1l3. 021 (a), any interest earned on these proceeds
    would not be severed from principal pursuant to section 1l3.021(c) and would instead remain part
    of the commissary fund. Accordingly, interest on the commissary fund remains with the fund.
    The Honorable Richard P. Bianchi - Page 5         (GA-079l)
    SUMMARY
    Local Government Code section 351.0415 grants the sheriff
    exclusive control of funds generated by the operation of a jail
    commissary, requires the sheriff to maintain commissary accounts,
    and provides that commissary proceeds may be used only to benefit
    inmates of the county jail. Commissary proceeds are not funds
    "belonging to the county" under Local Government Code section
    113.021(a).
    Texas courts follow the common-law rule that interest follows
    principal unless lawfully separated from the principal. Section
    113.021 separates interest from funds "belonging to the county" and
    allocates it to the county general fund. Because the commissary fund
    is not a fund "belonging to the county," interest remains with the
    commissary fund.
    Very truly yours,
    DANIEL T. HODGE
    First Assistant Attorney General
    NANCY S. FULLER
    Chair, Opinion Committee
    Susan L. Garrison
    Assistant Attorney General, Opinion Committee
    

Document Info

Docket Number: GA-0791

Judges: Greg Abbott

Filed Date: 7/2/2010

Precedential Status: Precedential

Modified Date: 2/18/2017