Untitled Texas Attorney General Opinion ( 1986 )

The Attorney General of Texas
July 7, 1986 _
JIM MATTOX
Attorney General
Supreme Court Building
Mr. William R. Mil:.er Opinion No. ~~-511
P. 0. BOX 12545
Austin, TX. 7871% 2548
Executive Director
5121475.2501 Texas School for the Blind Ret Whether the Texas School for the
Telex 910/874-1367 1100 West 45th Street Blind may expend interest earned on
Telecopier 512,475.0266 Austin, Texas 78;'5;6 proceeds received pursuant to chapter
362 of the Sixty-ninth Legislature
714 Jackson, Suite 700
Dallas, TX. 75202.4506 Dear Mr. Miller:
214,7428944
You ask whether the Texas School for the Blind may expend interest
earned ou the proce'edsof a sale or lease which was authorized for a
4824 Alberta Ave.. Suite 180
El Paso, TX. 799052793
certain tract of land and buildings in the city of Austin by chapter
915/533-3464 362, Sixty-ninth Legislature. We conclude that the legislature
appropriated the proceeds of a sale or lease of the property in
question to the T:exas School for the Blind but that it did not
-1 Texas, Suite 700 appropriate intereot earned on the proceeds to the school.
uston, TX. 77002.3111
713223-w
Sections 1 and 3 of chapter 362, Sixty-ninth Legislature, which
is not codified, provide, in part, that
806 Broadway, Suite 312
Lubbock. TX. 79401.3479
SECTICK 1. SALE OR LEASE OF PROPERTY. The
SOS/7476235
board of directors of the Texas School for the
Blind, or,behalf of the Texas School for the Blind,
4309 N. Tenth. Suite S may sell .a11 of the state's interest in the real
McAIIen, TX. 78501.1685 property described in section 2 of this act for a
5121682.4547
considerc:tion the board considers appropriate or
may negol:iateand enter into a lease of that.real
200 Main Plan, Suite 400 property ~811
the terms and for rental that the board
San Antonlo. TX. 782052797 considerr:appropriate. . . .
512/225.4191
SECTIC~N3. DISPOSITION OF PROCEEDS. In addition
An Equal Opportunltyl
to sums previously appropriated for this purpose,
Afflrmatlve Action Employer the proceeds from the sale or the rental income
from the lease of real property authorized by
section I of this act are appropriated to the Texas
School for the Blind to be used for the construc-
tion of a facility for severely handicapped
students.
The State Fuilds Reform Act formerly was codified as article
4393c, V.T.C.S., at.dnow is chapter 4 of the Treasury Act, where it is
codified as srtic,le 4393-1. V.T.C.S. It requires that funds be
p. 2347
Mr. William H. Miller - Pagl?2 (JM-511)
deposited in the State Treasury. Section 4.004 of that act provides,
in part, that
(a) Fees, fines, penalties, taxes, charges,
gifts, grants, donatidns. and other funds collected
or received by a :state agency under law shall be
deposited in the treasury, credited to a special
fund or funds, and subject to appropriation only
for the purposes1 for which they are otherwise
authorized to be tarpendedor disbursed. . . .
(b) Money that is required by this chapter or
by another law 1:o be deposited in the treasury
shall be deposit~sd to the credit of the General
Revenue Fund unless the money is expressly re-
quired to be depo:r:ited
to another fund, trust fund,
or special accomt not in the General Revenue
Fund. . . .
In our opinion, the Tezas School for the Blind is a state agency
within the broad definition provided by section 4.002 of the State
Funds Reform Act. It also is our opinion that the proceeds of a sale
or lease authorized by chapter 362 are not within the exemptions
specified in section 4.00:). See Attorney General Opinions MW-590
(1982) (discussing meaning of "state agency" and exceptions to State
Funds Reform Act); MW-454 #:1.982)(discussing exceptions to the act).
Article 8, section 6, of the Texas Constitution provides that money
may not be drawn from the treasury unless it has been appropriated by
the legislature. See Attorney General Opinion V-01 (1947) (proceeds
from sale of land deposited in treasury and subject to appropriation).
The legislature specificall:rhas appropriated the proceeds of the sale
or lease for the construction of a facility by the Texas School for
the Blind.
Section 3.042(a) of the Treasury Act, f0rmerl.y article 2543d,
V.T.C.S., provides that
(a) Interest received 'from time deposits of
money in funds and accounts in the charge of the
treasurer shall be allocated as follows: to each
constitutional find there shall be credited the
pro rata portion of the interest received due the
fund; the remaindrr of the interest received, with
the exception of that portion required by other
statutes to be credited on a pro rata basis to
protested tax payments, shall be credited to the
General Revenue Pmd. The interest received shall
be allocated on a monthly basis.
p. 2348
Mr. William H. Miller - Pal;e3 ,(JM-511)
Since the enactment of article 2543d in 1969, numerous prior
opinions of this office t.sve determined that interest on constitu-
tional funds must be credited to the constitutional fund and interest
on trust funds must be credited to the trust fund. See Attorney
General Opinions .I?-323 (1985); JM-321 (1985); JM-306 (lm); JM-300
(1985); MW-193 (1980); MW-82 (1979); E-1167 (1978); H-1040 (1977);
M-468 (1969). See also Lawson v. Baker, 220 S.W. 260 (Tex. Civ. App.
- Austin 1920, writ ref';rj: We conclude, however, that the proceeds
in question do not constitute trust funds and belong in the treasury
to the credit of the genertrl.
revenue fund in compliance with the State
Fund Reform Act. While no particular words are necessary to create a
trust, this office stated jr,Attorney General Opinion .JM-300that
in order to be characterized as trust funds, the
assets in question should reflect, among other
things, (1) th2.t they are administered by a
trustee or trustees, (2) that the assets are
neither granted to the state in its sovereign
capacity nor collected for the 'general operation
of state government, and (3) that they are to be
spent and invest'rdfor specific, limited purposes
and for the benef'itof a specific group of indivi-
duals.
The legislature created no special fund for the deposit of the
proceeds of a sale or lease authorized by chapter 362. It is our
opinion that the proceeds elfthe sale or lease do not meet the charac-
teristics of a trust fund tad that interest earned on such proceeds is
subject to the provisions c'fsection 3.042(a) of the Treasury Act that
require interest to be crei.itedto the general revenue fund.
Interest that becomeri a part of the general revenue fund is
subject to legislative appropriation. Hence, the final issue is
whether the legislature appropriated .such interest by section 3 of
chapter 362. We conclude that the legislature did not intend the
specific *ppropriation of "the proceeds from the sale or the rental
income from the lesse of rt,slproperty authorized by section 1 of this
act" to include interest tt.atmay be earned on the proceeds.
Statutes are interpreted according to the popular meaning of
the language employed, except where used in a technical sense or a
contrary meaning is clearly apparent from the context. In other
words, the intention of the legislature is determined by the plain and
ordinary meaning of the lan8usge used. Lawson v. Baker, id., st 268.
See also National Life Co. v. Stegall, 169 S.W.2d 155. 157 (Tex.
Comm'n App. 1943, opinion adopted). Our courts have suggested that it
may be proper and necessary to consult a dictionary to ascertain the
meaning of words in statutes. See Board of Insurance Commissioners v.
Duncan, 174 S.W.2d 326, 328 (G. Civ. App. - Amarillo 1943, writ
ref'd); Attorney General O]~!Lnion
H-1277 (1978). While the meaning of
p. 2349
Mr. William H. Miller - Pagl?4 (JM-511)
"proceeds" may depend on the context in which it is used, Black's Law
Dictionary 1084 (5th ed. 1979) defines it ss money or articles or
other thing of value arising or obtained by the sale of property and
the sum. amount, or value of property sold or converted into money or
into other property.
The language of the appropriation in section 3 of chapter 362 is
the same as the language u:sedby the legislature in several other
recent statutes which authorize the sale of state-owned land. Chapter
425 of the Sixty-ninth Legislature, 1985, provides
SECTION 4. DISI?C~SITIONOF PROCEEDS. The proceeds
from the sale of reel property authorized by section
1 of this act are appropriated, for the fiscal
biennium ending August 31, 1987, to the Texas Youth
Commission for the purpose of constructing the Texas
Youth Commission !;outh Texas Regional Facility in
Hidalgo County, Teras and/or for repairs or renova-
tions at the Corsicsna State Home in Navarro County.
Chapter 561 of the Sixty-eigttthLegislature, 1983, provides
SECTION 3. DISI'OSITIONOF PROCEEDS. The proceeds
from the sale of real property authorized by section
1 of this act are appropriated to the Department of
Public Safety, and the department may use the
proceeds to perform the duties and responsibilities
of the department.
Chapter 687 of the Sixty-eighth Legislature. 1983, provides
SECTION 3. D'ISPOSITION OF PROCEEDS. The
proceeds from a. conveyance under this Act are
appropriated to ,:IreTexas Employment Commission
for use in acquiring other land or for the
construction or Improvement of the facilities of
the Texas Employment Conrmission.
We conclude that the legislature intended its appropriation to
the Texas School for the Blind in chapter 362 to appropriate the sum
of money derived from the s,aleor lease of the described property but
did not intend chapter 362 to also appropriate interest income that
may be earned on that money.
SUMMARY
Chapter 36'!
(, Sixty-ninth Legislature,
authorizes the sale or lease of certain
state-owned land end appropriates the proceeds
from the sale or :.easeto the Texas School for the
p. 2350
Mr. William H. Miller - Page 5 (JM-511)
Blind for certain construction. The legislature
has not appropriated interest in the treasury that
may be earned cn the proceeds of the sale or
lease.
Very Itruly your
JIM MATTOX
Attorney General of Texas
JACK HIGHTOWER
First Assistant Attorney General
NARY KELLER
Executive Assistant Attorney General
RICK GILPIN
Chairman, Opinion Committee,
Prepared by Nancy Sutton
Assistant Attorney General
p. 2351