Case Information
*1 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 Executive Director Austin, TX. 7871% 2548 Texas School for the Blind Ret Whether the Texas School for the 5121475.2501 1100 West 45th Street Blind may expend interest earned on Telex 910/874-1367 Telecopier 512,475.0266 Austin, Texas 78;'5;6 proceeds received pursuant to chapter
362 of the Sixty-ninth Legislature 714 Jackson, Suite 700 Dear Mr. Miller: Dallas, TX. 75202.4506 214,7428944
You ask whether the Texas School for the Blind may expend interest earned ou the proce'eds of a sale or lease which was authorized for a 4824 Alberta Ave.. Suite 180 certain tract of land and buildings in the city of Austin by chapter El Paso, TX. 799052793 362, Sixty-ninth Legislature. We conclude that the legislature 915/533-3464 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, may sell .a11 of the state's interest in the real 4309 N. Tenth. Suite S 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:iate and enter into a lease of that. real property ~811 the terms and for rental that the board 200 Main Plan, Suite 400 considerr: appropriate. . . . San Antonlo. TX. 782052797 512/225.4191
SECTIC~N 3. DISPOSITION OF PROCEEDS. In addition to sums previously appropriated for this purpose, An Equal Opportunltyl the proceeds from the sale or the rental income Afflrmatlve Action Employer 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.d now 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 *2 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 tarpended or 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:r has 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.
Mr. William H. Miller - Pal;e 3 ,(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-300 that
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'rd for specific, limited purposes and for the benef'it of 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 elf the 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'f section 3.042(a) of the Treasury Act that require interest to be crei.ited to 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,sl property authorized by section 1 of this act" to include interest tt.at may 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 *4 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:sed by 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~SITION OF 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-eigttth Legislature, 1983, provides
SECTION 3. DISI'OSITION OF 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 ,:Ire Texas 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,ale or lease of the described property but did not intend chapter 362 to also appropriate interest income that may be earned on that money.
SUMMARY 36'! Sixty-ninth Legislature, Chapter (, authorizes the sale or lease of certain state-owned land end appropriates the proceeds from the sale or :.ease to the Texas School for the *5 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 I truly 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