JIM MATTOX 

Attorney General 

Supreme Court Building 

P. 0. BOX 12545 

Austin, TX. 7871% 2548 

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An Equal Opportunltyl 

Afflrmatlve Action Employer 

The Attorney General of Texas 

July 7, 1986 _ 

Mr. William R. Mil:.er 

Executive Director 

Texas School for the Blind 

1100 West 45th Street 

Austin, Texas 78;'5;6 

Opinion No. ~~-511 

Ret Whether the Texas School for the 

Blind may expend interest earned on 

proceeds received pursuant to chapter 

362 of the Sixty-ninth Legislature 

Dear Mr. Miller: 

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 

certain tract of land and buildings in the city of Austin by chapter 

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 

appropriate intereot earned on the proceeds to the school. 

Sections 1 and 3 of chapter 362, Sixty-ninth Legislature, which 

is not codified, provide, in part, that 

SECTICK 1. SALE OR LEASE OF PROPERTY. The 

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 

property described in section 2 of this act for a 

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 

considerr: appropriate. . . . 

SECTIC~N 3. DISPOSITION OF PROCEEDS. In addition 

to sums previously appropriated for this purpose, 

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 construction 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 

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 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 required 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. 

p. 2348 
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 constitutional 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 individuals. 

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 characteristics 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, 

Comm'n App. 1943, opinion adopted). 

169 S.W.2d 155. 157 (Tex. 

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: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 renovations 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 

Chapter 36'! (,Sixty-ninth Legislature, 

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 

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. 

JIM MATTOX 

Attorney General of Texas 

Very I truly your 

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