Case Information

*1 H6imrable Hclneti D. Eok

‘Awiitoti, Bay&ix ConntJ Ia Grange, Texas opinion NO. o-6931

Dear Sir9 RIB, Legality of depoeitilig SohOOl funaslnanybd&kothertslau the eohooldepoeitoryand legality ofnotreporting income to a State Aid Sohool

Your mqueet for& opinion on t&e shore enbjeot hae been moeived andoarerullyconsidemdbythie departaent. He quote below your letter of Awember 8, 1945, in fullt

"I would like to hare your opinion on the following fact situation;

"School Dietriot A. (0-n sohbol district) of Fayette County, Texas paid to another DletriotB (BuralHi& School) the mna of $260.30 for inetructing pupils, al80, $45.00 for high eohooltuitio~.

"Schbol District B cached the two vouohOm and depoeited to the credit of the eohool dlstriot in another bank dther than the echo01 depoeitory, to be need by the achoo+ The basie'of handllng these eume in this manner ie upon a ruling by the Deputy State Superintendent August 16, 1944, vhioh reads 'I agree with your rotion in accepting the oontrect from the school districta with lees than a fifty cent localmaintenance te+. You will handle this oontzaot locally and uab the fuuda from the dlstriot to take care of the lnoreaeed ooet of' operating your aohoolwhioh oannot be shown in your qtate Aid Budget.' "Based upon tbs faot eituation ae aboW&, I would like to hare rour opinion on the followiag queetione: "1. Is it legal for the eotiool diatriot to deposit aohool fund8 in any bank other than the sohooldeposltoryt h?. If question one ie answered -In the affirutive, then whowould bb acoountable for the money being spent legally and to whan would they report came?

Hon. Hanor D. Eck, Page 2 (o-6931)

“3. 16 it legal for a eohool dlrtrlot not to mport all lnoaue even though they am State Aid Schools?" Fran the contents of your letter we muet aseune that Fayette County has a duly seleoted and qualified County depoeitory and eroept in the instanae you mention all the oounty who01 funde are depoeited therein. We also aaatmte that both the sohooldietrlote mentioned in your letter are looated in Fayette County and levy and oolleot a nain- tenanoe tax for the purpoee of eupplementing the available eohool fund mcalved fron the State and oounty. It ia our further understanding .th+t the fmms you mention, I. e. "$260.30 for inatruoting pupils" and $45.00 for high echo01 tuition" were regular eohool funde to which the ooawn sohooldiatriotwae entitled either as a result of taxes It had levied or by reason of aocunulated State and County per capita funda on deposit to its credit.

We have reviewed oamfully the statute8 governing the questima you raieed and the law applicable to each. lie quote pertinent artioles frczu Revleed Civil Statutee of Texas:

Article 2922 (L) (1). m80 tuition in oertain aistdcts, attendanoe in high schools in or out of home district - "Sea. 1. The board of trueteea of any c-on or independent sohooldistriot, whether organized by General or Speoial Law, whfoh levies and oolleots a naintenanoe tax for the purpose of supplementing the available school fund mcelved ATan the State and County shall admit into the public schools of the district free of tuition, all pemona who am over eix (6) and not over twenty-cme (21) years old at the beginning of the soholaatio year, if such person or his parents or legal guardian reside within said ooBlplon or independent school dietrlct.

"Any pupil between the age of six (6) and twenty-one (21) residing in a rural dietriot or other district, which levies a localmainteuanoe tax, who hati been prcuuotad to a high echo01 grade not taught in his hone dietriot, shall have the right to attend a standardized, classified, or affiliated high school in his hone county or iu any other oounty at the expense of his hone sohool district, if suoh dletrict as determined by its budgeted expenditure6 aocording to the General Budget Law is financially able to provide tuition, or othelvise at the expense of the State of Texas.

"If the name of euch pupil appears on the cen8ue roll of hie hcsle district and If the pupil attends a high rsohool in the county of hle residenoe, hie State and oounty per capita funds shall be tr&ferred to the receiving dlstrlot under the General Iaw governing the transfer of pupils. . . .

"Sec. 2. The superintendent of the receiving dietriot, *3 Hon. Haner D. Eok, Page 3 (O-6931)

the county eupsrintendent, and the euperintendent or prinolpal of the sending dletriot shall oertify, not later than thirty (30) dqye after notification of the entrance of eaoh pupil in the moeiving hi& eahwl, the eligibility of pupile frvm the eending dirtriota for tuition privilegee in the hl& aohoole of the moiivin(l dietriot which said pupiln desire to attend by supplying euch infonvrtlon and eigning auoh forma M may be required by the State Departient of Eduoation. Upon the appmval of this oertifioate by the oounty superintendent, the State and diatriot e-hall be obligated for the payment’of the tuition. The oonnQ superintendent ie hereby required to file with the State Departient of Edwation a copy of the budget, made under the General Budget Law OP the State, not later than Ootober let, of each year of eaoh of themveral dlstriote in his oounty and to furnish ,snch other information 86 will enable the State Departrent of Eduoatlon to estimate the amount of high school tnition that each diatriot will be able to pyj provided, however, that no portion of the State and ~oonnty available fund8 of auoh distriot of those children not

trausfermd for high eohool purpoees shall ever be used for the payment of the high echo01 tuition due other dietriote exoept ae provided by the General LaWej provided further, that the euperlntendente pf sending independent se001 distrlote shall 8ign a oertifloata of eligibility, whioh oert$floate ehall obligate the distrlot end the State for the payment of eutih tuition at the rate a8 hemiqbefom provided; pro+ded further, that the superintendent of eaoh aending independent diatriot ie hereby required to file with the State Department of Eduoation oopy the budget of hia dlatriot not later than October lst, of each sehwl year and to furnish such infozmation 86 will enable the State Department of Eduostion to eetimate the emount high aohool tuition that the diotriot will be able to wj provided further, that no child entitled to fme hia eohwl privilegee under the p~~vielono of this Aot ehall ever have euoh privileges ourtailed, or his tuition aocount invalidated.

This ahall not oonatrued, however, to llmlt exoept ae to hi& eohwl tuition, the mgulations of tha State DewWent of Education relative to other provi~ione of the pmsent Rural Aid Law, or such ot@er laws for the equalization of educational opportrmltlee a8 may be enaoted.

“Sec. 3. Reoeivlng high aohool districts q hall make a report to the State Departient of Education and the county superintsndent at the olose of each eemester, giving the name of the oounty, of the hosre dietriot, and of the ahild, with his age, grade, and attend-e, and the rate and amount of tu1t10n. In addition to this report en itemized statement indicating tuition due to dab shall be cent at the close of eaoh eemester to the secretary of the board of truetaes of the eendlng district. Upon the beeie of the attendanoe report, *4 Hon. Hceser D. Eok, Page 4 (o-69%)

referred to in this Sectfon, when approved by the State 'Departssent of Eduaation, warrants ahall be issued seni- anuuallyby the Stats dfmotlyto the moelvinghigh school diatrtit for pameut of the tuition dusj provided, however, each haDe dlstriot indebted to a high school dial-riot for tuitionshall issue warrant to the high school distrlatnot later than June lsth, of each fisoal year for all of its surplus naintenanoe funda, or aa nuch themof as nay neoessary to pay the entire tuition aocount of such home distriot to the receiving high sohool, and the superiatendent of the receiving hi& sohool shall not later than July lat, of eaoh year aertify to the StatsDepartsnent of Education the anount moeived by the sohwl on high school tuition fron each sending district. The amount paid by the sending dlstriot shall be dsduoted frcen the second senf-annual payment made by the State to the moelving eahwl, provided that any 'high sohooldistriot receiving fr& the Stats Dspartment an amount in exoess of the total tuition charged by the receiving diatriot shall be mquired under this Act to return all excess payment to the State Department of Education to be depoelted with the 'State Treasurer to the credit of the fund ham which it cameo “Sea. ,4. The State Superintendeut shallwithbold

any aurd all funds due any distrlot that refuses or falls to execute forma required by the State Departaent of Eduoaticn for pupils eligible to have their high sohool tuition paid by the hcsne district aud the State. It la further provided that the State per capita available fund for each pupil transferred for high s&o01 purposes under' ' this Act, who has enrolled in the school to which he has been transferred, shall be distributed to the districts to whiob such pupils have been transferred as the apportiomnent la paid by the State. if any distriot falls' to pay thi6 portion of the State per oaplta aooordbg to the provisions of this Aatp then the State Superintendent, when notified by ae eupertitendmt of the reoaivlng distriote, aodanganled by an affidavit of such failure, shall withhold from such district, when the next per capita payment Is ready for '.distrlbutlon, suoh an amount as euoh district may owe any dletriot until such obligation has been paid; provided further, that the State Superintendent shall investigate such aooounts and dotemine that they are justaoaounts and obligations of the distriot before their portion of the par o8pita allotnent is withheld,"

Art. 29221. Warrants _

-

Eon. Haer.D. ICok, Pa&e 5 (O-6931) funda of waxy nature to whloh a rural hl&h

“All eohool dlrtrlot rq be entitled shall be paid out a

warrantn luued by the eeoretary and signed by the

eeore&ary and pmeident of the board of tnuteer and

appmrsd by the oounty ~uparintwdmt publio ixutruotion.

The bou(L of eohool truetee# rhall eeleot lk own pF8midEBt alb reomwa oaoh of wkar shall a anbar of tho,,@ard.

The esomtary shall keep a acppl.ete itaired aooount of

all moelpte aud diebum-t# In well-bound book owned and paid for by the dirtriot, and his aooonnt shall be

approved by the oouaty eupaHatendeat end by the oorrntj

board lohool tnuteer at the end of each roholutlo

year. Ilo rohool funds shall be allotted or apportioned

and paid to my rural hl@b l ohwl dirtrlot for the until thin mport in rubaitted

follmring year thenafter to and approved by the oo\nrty l uperintoudont Ed the 0-W

board of who01 truetoa~.”

Art. 25223 - Doporlt au4 dimbumaurrt oC fab.

"All funda brlon@a# to a rural hi& rohool (Lidriot #hall br doporited in the oouaty deporitow ~6 dirburmd in the euamanuc am other fuud8 l ra dlrburmd frmruoh dopoaltior7 urdrr thr brporltory law in 80 far l 8 maa bra applioabk .

Art. PgPPk. Qontrol by and of tnrrtorr- *6 - Hon. Homer D. Eok, Page 6 (O-6931)

with said depos$tory to the oredit of said oounty, dls;t;rIot and munIoipalitl&j. and, for eaoh and every failure to make such deposit, the county treaeurer shall be liable to eaid, . depoeitory for ten per oentupon tie'amountnot‘so

deporited, 30 be'raoorered by oIvll.aotion agaIn& lRIph trbamare~ and the suretiee on hle offIoialbcmd in my oonrt of dbmpetent jurl~dlot$6n in the oomty.

It shall btio.be the ~dt&y of the tax collector of suoh oomty to dbpol'lt alitaxes oolleoted by him, or under hie authority, for the State and euoh county and lte various distriote and other munio~ipal eubdlv@ioae, In q uoh depoeitory or depoeitorles, 88 eoo~laa oolleoted, pending the preparation of hIe report oi euoh oolleotions and eettlement t&ax-eon, whloh ehallbear interest on daily balanoer at the rate, If any, fixed for suoh depoeltu of the tax oolleotor by the Camniesi~ere~ Court In lte order dealgnat- ruoh deporritbry or depoeitories, and the lntere~t aooruingthereon shall be apportioned by the tax oolleotor to the various fund8 earning the mm. The bond04 suoh county depoeitory or depoeitoriee #hall etand as aeourity foti rll suqh funds. If the tax oolleotor of auoh county ehaU fail or refuee to depoeit tax money collected ae herein &eqt+ed, he shall be liable to suoh depository or depositories for ten per oent upon the aaiount not 80 deposited and shall in addition be liable to the State and oounty and Its various diatriota and other municipal subdivieions for all eume which would have beeti earned had tile provision been oomplled with, which intereet may be reoovered In a cult by the State. Upon euoh funds being de- posited ae herein required, the tax collector and euretles on hle bonde ohs11 thereafter be relieved of responeibility for lte cafe-keaping. All money mubjeot to the oontrol of the oounty treamimr or paysble dn hle order, belonging to diatrlote or munlo'lpal oubdlvielone seleoting no depository, are hereby deolarkd to "oountjr funda' within the wanInng thla ohapter and shall depoelted in +ooordanoe with Its requlre- menta and ehallbd ooneidered in fixins the lnaunt the bond of suoh depoeltory."

We muat therefore answer your first question negatively. Fayette County havingpreviouely du4 selected a county depoeltory, Art. 2549, ae quoted above.makes it mandatory that 811 money held for the eohool dietriota be depoeited with the du4 designated depository."

Sinoe we have given a negative answer to your flret question, we deem a epeoifio tiewar to you~eecond question la not neceeaary.

WC aleo answer your third question negative4 and cite Art. 2922(L), Sec. i, 2', 3 and 4 as quoted above. Your partiou&ar attention is called to the fOllowing language used in Artlole 2922L, Sectlop 3: "And the superintsndent,of the receiving high school shall not later than Ju4 let, of eaoh'year certify to the State Department of Education the amount received by the echo01 on high school tuition fram each sending district."

Hon. Hcrner D. D,ok, Pw 7 (o-6931)

We tifer further to 8. B. 167, 49th Lagislature, Beglec Session and puata below Article II Seotlon 1,of eaid bill as it appeam on page 642 of Vol. 5, Vernon'6 Texas Session Law Service:

“Artiale II, TBE APPLICATICD FCD STATS am;” Se0 tion 1. Tha t#uateee of the dlrrtrictn authorized to apply for aid W+&e pro~lsions of thie Aot shall send.

to the State Superintendant of Public Inatruoticm on fozm provided by arid Autharlty, whioh fonm have been approved by the .LegiolatiYe AoaauataBt, all infamatlan that may be required. Said forpu, will include a budSat by whiah the amm~t Salmy Aid to whloh sohool will be.eli@ble ahall ba detexmlned . The reoe1Dt.e aa ehowa in said bud&at will

include the state srd oaunty available anb local maintananoe balanoer bromht forward from the preoedins year. et&b and oounts available and laoal maintananoe reoel~ta for the ) currant yaar, tuit%cm to oollaoted looally, and lrircellaneau6i reoeipts. Tha expeBditure will inolude ealarles of teaohere as determined by the salary sohadule otated herein, and a . . I .- maxinum of Two Hundred Tan Dollare ($210.00) par teacher per year in accredited sohoola and One Hundred Ninety Dollara ($190.00) per teaaher per year in unaooredited eohoola for other current expenses; provided that If for either year of the biennium the Salary Aid Allaoshian ehall be ineuffloiant to guarantee the eaid Two &mdred’Tan Dollars ($210.60) and On6 Hundred liinaty Ddlnrs ($190.00) for current operating expewer,, the State Superintendent, with the approval of the Leglelatlve Aooountant, la empawered to raduoe all granta for that purpose proportlon- ately. The total MOUnt Of approved aXDeBdituiW8 le8s the totalemount of reoeints will be the emunt Salary Aid to whloh a school will be eliaiblei provided in no oaae will auoh anaunt axoaad the apuroved amount of teaokaw’ ralariae. The State SrperIatanden~-shall, subjeot to thepro&ione of thin Act, upna appraval of the Legislative Accountant grant, to the sohool an &aunt of aid a~ will, with etate and .gouaty available funde, together with all fuuda inoludlnS tuition, maintain the school for such a period and in auoh a manner aa authorlsed _~ in this Aot; provided that school dietriots qualifyins for salary aid under the pravlelona af this Ant may use this aid either to maintain a school in the bane diatrlot or to provide eohool faoilitiee for the bona fide soholastioa of the distrlote in aome other sohool of higher rank. The applloat1ana ehall be sworn to by the county superintendent of all Ccsmnon echo01 Distrlote and president and secretary of the board of truetees of all Independent School districta app4ing for aid. School dlstriote aooepting aid under the provisions of this Act ehall share in the diatrlbutian of state and oounty available school funds and in all other funds as herein may be provided. (Underecoring owe) *8 Hon. Hamer D. Eok, Page 8 (o-6931)

'We true-t the above satisfaotmF15 ammo your inquiry.

Ymm very tru4 AT!BXUKEYGEUi4EALOFTEXAS By /a/ E. M. DeGeurln E. M. DeGeurin Aeeletant EMDIbt-48

APPROVED RO?. 23, 1945 APPROVED

OPmIoH co&lMITTER /a/ Carlo8 C. Ashley

ET /e/ B.W.B.

FIESTASSISTAHT (xbaQw4

AT’lQRWEY GERERAL