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HonorableL.T. Des Champs

Llano CountyAttorney ~lano CountyCourthouse Llano, Texas 78643 OpinionNo. JM-729 lb: Whether a commissionerscourt may make improvements on county school land fromproceeds received from the lease of that land
DearMr. Des Champs:
You ask whether the Commissioners Court of Llano County has authority to make improvements on county school land from proceeds received from the lease of that land. Article VII, section 6, of the Texas Constitution limits the manner in which the proceeds from "county school lands" may be investedby a commissionerscourt, as follows:

Each county may sell or dispose of its lands in whole or in part, in manner to be providedby the Commissioners' Court of the county. . . . Said lands, and the proceeds thereof,when sold, shall be held by said counties alone as a trust for the benefit of public schools therein; said proceeds to be invested in bonds of theUnited States, the State of Texas, or counties in said State, or in such other securities,and under such restrictions as may be prescribed by law.
. . . (Emphasis added). Section 17.82of theTexas EducationCode states:

(b) The proceeds of any such sale shall be invested in bonds of the United States; the State of Texas; counties of the state; independent or ccsmaonschool districts; road precinct, drainage, irrigation,navigation, and levee districts in the state; or incorporated cities or towns; or in interesr-bearingbank time deposits with the bank having been designated the deposirory for that county under the terms and conditions of the depository contract. These bonds and deposits shall be held by the county in trust for the

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benefit of its public free schools, and only interest thereonmay be used and expendedannually. Section 17.83of theTexas Education Code addresses themanner in which lease proceeds from county school lands shall be handled, as follows: Besides other available school funds provided

by law, rental and lease proceeds from lands previously grantedby the state to any county for educationalpurposes shallbe appropriatedby the commissioners court of the county in the same manner legallyprescribed for the appropriationof intereston bondspurchasedwith theproceeds from sale of such lands. Likewise, proceeds from the sale of timberon these lands shallbe investedby the commissioners court as prescribed in Section 17.82(b)of this code. None of the rental, lease, or timberproceeds shallbe appliedby the commissioners court to any purpose other than those prescribed in this code. (Emphasisadded). Attorney General Opinion O-2111 (1940)addresses the question of investment of proceeds from lease of county school lands under then article 2825,V.T.C.S., now section 17.83 of the Texas Education Code (identical as to appropriation of rental and lease proceeds by commissionerscourt),as follows: -_

Thus,we observeArticle 2825, supra. in plain and unambiguous language.provides in what manner the income from the lease of school lands shallbe used. It 'shall be appropriated by the commissionerscourts of said counties in the samemanner as isprovidedby law for the appropriationof the interest on bonds purchased with the proceeds of the sale of such lands.' Article 7, Section 6 of the Constitution, supra. stipulates that the interest derived from the investment of the proceeds of a sale shallbe placed in, and constitute, the available school fund. Therefore, the proceeds from any renting or leasingof the school lands must also be placed in that fund. By its terms Article 2825, supra, makes any other dispositionunlawful. Consequently, we must find, and you are respectfully advised, that the commissioners' court of Polk County cannotbuild a house or make other improvements upon counry owned school land with funds derived from the rental or lease of said lands. ?

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We are unable to find any authority for the commissioners court to make improvements on coynty school lands from proceeds received from the lease of that land. SUMMARY

The Commissioners Court of Llano County does not have the authority to make improvements on county school land with proceeds received from lease of that land. None of the lease proceeds shall be applied to any purpose other than that which is authorized in section 17.83 of the Texas Education Code. Tex. Const. art. VII, 56; Educ. Code 517.83; Attorney General Opinion O-2111 (1940).

JIM MATTOK AttorneyGeneral ofTexas
MART KELLER ExecutiveAssistantAttorneyGeneral
JUDGE ZOLLIE STEAKLEY SpecialAssistantAttorneyGeneral
RICK GILPIN Chairman,OpinionCommittee Preparedby Tom G. Davis AssistantAttorneyGeneral

1. We note that section 11.11(c) of the Tax Code provides for thepayment of taxes on county school land as follows:

Agricultural or grazing land owned by a county for the benefit of public schools under Article VII, Section 6, of the Texas Constitution is taxable for all purposes. The county shall pay the tares on the land from the revenue derived from the land. If revenue from the land is insufficient to pay the taxes, the county shall pay the balance from the countygeneral fund.

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