JIM MATTOX Attorney General

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An Equal Opportunltyl Afflrmatlve Action Employer 

# The Attorney General of Texas
July 7, 1986

_

Mr. WilliamR. Mil:.er ExecutiveDirector Texas School for the Blind 1100West 45th Street Austin, Texas 78;'5;6 OpinionNo. ~~-511
Ret Whether theTexas School for the Blind may expend interest earned on proceedsreceivedpursuant to chapter 362 of the Sixty-ninthLegislature
Dear Mr. Miller:
You askwhether the Texas School for the Blindmay 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:exasSchool for the Blind but that it did not appropriate intereotearned on the proceeds to the school. Sections 1 and 3 of chapter 362, Sixty-ninthLegislature,which isnot 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 theBlind, may sell .a11of the state's interest in the real property described in section 2 of this act for a considerc:tionthe board considers appropriate or may negol:iateand enter into a lease of that.real property ~811

the termsand for rental that theboard considerr:

appropriate.
. . . SECTIC~N

3. DISPOSITIONOF 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 appropriatedto the Texas School for the Blind to be used for the construction of a facility for severely handicapped students. The State FuildsReform Act formerly was codified as article 4393c,V.T.C.S., at.d now is chapter 4 of theTreasuryAct, where it is codified as srtic,le4393-1. V.T.C.S. It requires that funds be

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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 :stateagency under law shall be deposited in the treasury, credited to a special fund or funds, and subject to appropriation only for the purposes1for which they are otherwise authorized tobe tarpended or disbursed.
. . . (b) Money that is required by this chapter or by another law 1:obe deposited in the treasury shall be deposit~sdto 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) (discussingmeaning 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 treasuryunless it has been appropriatedby the legislature. See Attorney General Opinion V-01 (1947) (proceeds from sale of land deposited in treasuryand subject to appropriation). The legislaturespecificall: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.yarticle 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 remaindrrof 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 GeneralRevenue Pmd. The interest received shall be allocatedon amonthly basis.

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Since the enactment of article 2543d in 1969, numerous prior opinions of this office t.svedetermined that interest on constitutional fundsmust be credited to the constitutionalfund 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 alsoLawson 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 compliancewith the State Fund ReformAct. While no particularwords are necessary to create a trust, this office stated jr, AttorneyGeneralOpinion .JM-300 that in order to be characterizedas 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 'generaloperation of state government,and (3) that they are to be spent and invest'rd for specific, limited purposes and for thebenef'it of a specificgroup 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 elfthe sale or lease do notmeet the characteristicsof a trust fund tad that interestearned on suchproceeds is subject to theprovisions c'fsection 3.042(a)of the TreasuryAct that require interest tobe crei.ited to the generalrevenue fund.
Interest that becomeria part of the general revenue fund is subject to legislative appropriation. Hence, the final issue is whether the legislature appropriated .suchinterest 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 authorizedby section 1 of this act" to include interest tt.at may be earnedon theproceeds.
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 intentionof the legislatureis determinedby theplain and ordinarymeaning of the lan8usgeused. Lawson v. Baker, id., st 268. See also National Life Co. v. Stegall, Comm'nApp. 1943,opinionadopted). 169 S.W.2d 155. 157 (Tex. Our courtshave suggested that it may be proper and necessary to consult a dictionary to ascertain the meaning of words in statutes. See Board of InsuranceCommissionersv. Duncan, 174 S.W.2d 326, 328 (G. Civ. App. - Amarillo 1943, writ ref'd); Attorney General O]~!Lnion H-1277 (1978). While themeaning of

p. 2349Mr. WilliamH. 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 obtainedby the sale of property and the sum. amount, or value of property sold or converted intomoney or into otherproperty. 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 statuteswhich authorize the sale of state-ownedland. Chapter 425 of the Sixty-ninthLegislature, 1985,provides

SECTION 4. DISI?C~SITION OF PROCEEDS.The proceeds from the sale of reelproperty authorizedby section 1 of this act are appropriated, for the fiscal biennium endingAugust 31, 1987, to the Texas Youth Commission for the purpose of constructingthe Texas Youth Commission !;outhTexas Regional Facility in Hidalgo County, Teras and/or for repairs or renovations at the CorsicsnaState Home inNavarro County. Chapter 561 of the Sixty-eigttth Legislature, 1983,provides
SECTION 3. DISI'OSITION OF PROCEEDS.The proceeds from the sale of realproperty authorizedby 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-eighthLegislature. 1983,provides

SECTION 3. D'ISPOSITIONOF 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 EmploymentConrmission.
We conclude that the legislature intended its appropriation to the Texas School for the Blind in chapter 362 to appropriate the sum ofmoney derived from the s,ale or lease of the describedpropertybut did not intend chapter 362 to also appropriate interest income that may be earned on thatmoney. 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 theTexas School for the

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Blind for certain construction. The legislature has not appropriatedinterest in the treasury that may be earned cn the proceeds of the sale or lease.

JIM MATTOX Attorney General of Texas VeryI trulyyour

JACK HIGHTOWER FirstAssistantAttorney General
NARY KELLER ExecutiveAssistantAttorney General
RICK GILPIN Chairman,Opinion Committee, Preparedby Nancy Sutton AssistantAttorney General

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