L 

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Honorable L.T. Des Champs 

Llano County Attorney 

~lano County Courthouse 

Llano, Texas 78643 

Opinion No. JM-729 

lb: Whether a commissioners court 

may make improvements on county 

school land from proceeds received 

from the lease of that land 

Dear Mr. 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 

invested by a commissioners court, as follows: 

Each county may sell or dispose of its lands in 

whole or in part, in manner to be provided by 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 the United 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 17.82 of the Texas Education Code 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 

ccsmaon school districts; road precinct, drainage, 

irrigation, navigation, and levee districts in the 

state; or incorporated cities or towns; or in 

interesr-bearing bank 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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Honorable L.T. Des Champs - Page 2 (JM-729) 

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benefit of its public free schools, and only 

interest thereon may be used and expended annually. 

Section 17.83 of the Texas Education Code addresses the manner 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 granted by the state to any county for 

educational purposes shall be appropriated by the 

commissioners court of the county in the same 

manner legally prescribed for the appropriation of 

interest on bonds purchased with the proceeds from 

sale of such lands. Likewise, proceeds from the 

sale of timber on these lands shall be invested by 

the commissioners court as prescribed in Section 

17.82(b) of this code. None of the rental, lease, 

or timber proceeds shall be applied by the commissioners court to any purpose other than those 

prescribed in this code. (Emphasis added). 

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 

commissioners court), as follows: 

-_ 

Thus, we observe Article 2825, supra. in plain 

and unambiguous language. provides in what manner 

the income from the lease of school lands shall be 

used. It 'shall be appropriated by the commissioners courts of said counties in the same manner 

as is provided by law for the appropriation of 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 shall be placed in, and constitute, the available school fund. Therefore, the 

proceeds from any renting or leasing of the school 

lands must also be placed in that fund. By its 

terms Article 2825, supra, makes any other disposition unlawful. 

Consequently, we must find, and you are respectfully advised, that the commissioners' court 

of Polk County cannot build 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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Honorable L.T. Des Champs - Page 3 (JM-729) 

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 

Attorney General of Texas 

MART KELLER 

Executive Assistant Attorney General 

JUDGE ZOLLIE STEAKLEY 

Special Assistant Attorney General 

RICK GILPIN 

Chairman, Opinion Committee 

Prepared by Tom G. Davis 

Assistant Attorney General 

1. We note that section 11.11(c) of the Tax Code provides for 

the payment 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 county general fund. 

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