Case Information
*1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
GROVER SELLERS ATTORNEY GENERAL
Hon. Gibb Glichrist, President Agricultural and Mechanical College of Texas College Station, Texas
Dear Sir:
Opinion No. 0-7201 Fe: Under Acts 1945, 49th Legislature, R. S., Chapter 377, can Comptroller legally pay to A. & M. College interest on State bonds held by A. & M. College Federal Lead-Grant Endowment Fund for years 1946 and 1947; $10,450.00 annually?
We acknowledge receipt of your letter dated April 2, 1946, requesting an opinion on the above condensed question. For purposes of the opinion, we quote from portions of your letter as follows:
"The Educational Appropriation Bill for the previous blennium (Chapter 399, General and Special Laws, 48th Legislature — Regular Session) includes the following provision for the payment of the interest on the State of Texas bonds held by the Texas Agricultural and Mechanical College Federal Lead Grant Fund (page 771);
"Further, there is hereby appropriated to the State Comptroller of Public Accounts, out of the General Revenue Fund of the State, to pay interest on State of Texas bonds held by the Texas Agricultural and Mechanical College Federal Lead Grant Fund, the sum of Ten Thousand, Four Hudges and Fifty ($10,450) Dollars for each of the fiscal years ending August 31, 1944 and August 31, 1945."
On page 772 of the Acts referred to above, under the healing of 'The Agricultural and Mechanical College of Texas' the following provision is made for this interest:
"Also there is appropriated to the Agricultural and Mechanical College of Texas, the total amount of current or accumulated interest received on the land grant endowment fund of said College, aggregating Ten Thousand Four Hundred and Fifty ($10,450) Dollars annually and any balances thereof on hand at the end of any preceding fiscal year, for each of the fiscal years ending August 31, 1944 and August 31, 1945.
*2 Hon. Gibb Gilchrist, page 2 to be expended in the payment of expenses incurred in fulfilling an: of the purposes provided by the State Land Grant College Lot and the Federal Land Grant College Lot, and any amendments thereto, in the manner therein provided." "The Educational Appropriation Bill for the current blen:1um (Chapter 377, General and Special Laws, 49th Legislature - Regular Session) makes no provision for paying the interest on the bonds held by the Texas Agricultural and Mechanical College Land Grant Fund, but under the heading of 'The Agricultural and Mechanical College of Texas' makes the following provision for the expenditure of this interest (page 683): "Also, there is appropriated to the Agricultural and Mechanical College of Texas, the total amount of ourrent or accumulated interest received on the land grant endowment fund of said College, aggregating approximately Ten Thousand Four Hundred and Fifty Dollars ( ) annually and any balance thereof on hand at the end of any preceding fiscal year, for each of the fiscal years ending August 31, 1946, and August 31, 1947, to be expended in the payment of expenses incurred in fulfilling any of the purposes provided by the State Land Grant College Lot and the Federal Land Grant College Lot, and any amendments thereto, in the manner therein provided." "The purpose of this letter is to ask you for a ruling on whether the Comptroller of Public Assounts can legally pay to the A. A.M. College of Texas the interest on the state of Texas bonds held by the Agricultural and Mechanical College Federal Land-Grant Endowment Fund for each of the fiscal years ending August 31, 1946 and August 31, 1947, amount ing to annually."
By virtue of the provisions of Title 7, Sections 301 to 308, inclusive, United States Code Annotated; Article 2614, Vernon's Annotated Civil Statutes, and Acts 1915, 34th Legislature, B. S., Senate Bill No. 277, Chapter 154, the Agricultural and Mechanical College of Texas Land-Grant Endowment Fund consists of derived from the sale of lands received by the state of Texas under the United States Land Grant Act of 1862, all of which is invested in state of Texas 5% Coupon Bonds of 1915, dated September 1, 1915, due September 1, 1955. The interest on these bonds, payable semi-annually September 1 and Marshall, amounts to annually; the faith and eredit of the state of Texas being irrevocably pledged for the prompt payment of principal and interest.
*3 Non. Gibb Gllohitat, page 3
Article 8, Section 6, Constitution of Texas, providee as follows:
"No money shall be drawn from the Treasury but in pursuance of specific appropriations made by law; nor shall any appropriation of money be made for a longer term than two years. . . ."
This section not only requires an appropriation before money can be paid out of the Treasury but also limits every appropriation to a term of two years. Pickle v. Finley, 91 Tex. 484, 44 S. W. 480.
Article 4344, Vernon's Annotated Civil Statutes, prescribes, among other duties of the Comptroller of Public Accounts, that the Comptroller is required to draw warrants upon the Treasurer for the payment of all moners directed by law to be paid out of the Treasury.
We have examined carefully the appropriations enacted by the 49th Legislature including the provisions of the Educational Appropriation Bill, Acts 1945, 49th Legislature, R. S., Chapter 377, and have been unable to find a specific appropriation made by the Legislature to the Comptroller of Public Accounts for the payment of the interest on the bonds in question for the fiscal years ending August 31, 1946 and August 31, 1947.
There being no specific appropriation of money for the payment of the interest as required by the above quoted constitutional provision, the Comptroller of Public Accounts lacks the necessary authority as required by Article 4344, v. A. G. E, to draw a warrant in payment thereof. Our answer to your question, therefore, must be and is in the negative.
We know of no rule of statutory construction which would allow the indulgence of a presumption that the Legislature intended to make a specific appropriation for the payment of the interest on the State bonds in question. We think that the constitutional provision quoted herein would prohibit such a presumption. The failure to provide for the payment of interest on these State bonds appears to be an oversight on the part of the Legislature which only a subsequent Legislature may correct.
*4
Hon. Gibb gilchrist, page 4
Trusting that the above satisfactorily answers your inquiry, we are
Tours very truly,
ATTORNET GENERAL OF TEIAS
By (Signed) CHESTER E. OLLISON APPROVED APR 301946 Assistant (Signed) CARLOS C. ASHLEY FIRST ASSISTANT ATTORNEY GENERAL CROIrt AME
APPROYED OIINION CCUMITTIE By B.W.B. Chairman