August 31, 1965 

Dr. James E. Peavy 

Commissioner of Health 

Opinion No. C-493 

Texas State Department of Health Re: Whether the Sanitarians 

Austin, Texas Registration and License 

Fund is a special fund 

under the direction of 

the State Treasurer and 

Dear Dr. Peavy: related question. 

Your letter requesting an opinion of this office reads 

in part as follows: 

"The Sanitarians Registration Act (Senates 

Bill 333) as passed by the 59th Legislature authorizes the State Board of Health to set up 

certain proceedings for the registration of 

sanitarians; the charging of a Ten Dollar 

($10.00) fee and providing authorization for 

the setting up of standards and qualifications 

for sanitarians to be registered under the Act. 

"The Act further authorizes fees and expenses in Section 8 . . . 

$8 . . . 

"In reviewing this Act with the Comptroller's 

Office in order to establish a special Sanitarians 

Registration and License Fund, the following questions were raised: 

"1. Is the Sanitarians Registration and 

License Fund a special fund under the direction 

of the State Treasurer? The first sentence of 

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Dr. James E. Peavy, page 2 (C-493 ) 

8(b) creates a special fund; however, the last 

sentence infers that the fund may not be in the 

State Treasury (for example, it may be a trust 

fund). 

"2 . If this is a special fund under the 

direction of the State Treasurer, are the 

receipts appropriated to the Texas State Department of Health? 

"3. If this is a special fund under the 

direction of the State Treasurer, then what is 

the meaning of the last sentence in Section 8 

lb) ? The surplus would already be in the State 

Treasury. 

,I . . . 

"We would appreciate your assistance in 

answering the questions herein raised and your 

interpretation and direction as to our procedure 

in setting up the special fund in the State 

Treasury. " 

Sec. 8(b) of S. B. No. 333, Acts 59th Leg., 1965, ch. 

300, p. 606, provides: 

"There is created a swcial Sanitarians 

Reqistration and License Fund which will consist 

of any and all fees charged or collected under 

any of the provisions of this Act. The Fund 

shall be under the suoervision of the Board 

which shall file annually a statement of income and expenses with the Secretary of State. 

All exoenses necessarv to the administration 

and enforcement of this Act. as well as any 

other exnenses of whatsoever character that may 

arise becuase of the terms and provisions hereof, 

shall be made from the Fund, including the reimbursements made to Board members, as provided 

for by the provisions of this Act. Any surplus 

remaininq in the Sanitarians Registration and 

License Fund, at the end of each fiscal year, 

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Dr. James E. Peavy, page 3 (C-493 ) 

not necessary to defray the expenses mentioned 

and provided under the terms of this Act, shall 

be paid into the State Treasury." (Emphasis 

added). 

The Legislature has clearly set apart those fees 

collected by authority of Senate Bill 333 into a special fund 

entitled "Sanitarians Registration and License Fund." A special 

purpose has been designated for funds collected under Senate 

Bill 333. The caption of Senate Bill 333 reads in part as 

follows: 

II 

. . .providing for expenditure and other 

disposition of funds collected under provisions 

of the Act and fixing purposes for which such 

funds may be used: . . .II 

Section 8(b) as quoted above, clearly authorizes expenditures of funds collected under the Act for all expenses necessary to the administration and enforcement of the Act, as well 

as other expenses which may arise because of the terms and provisions of the Act. Fees collected under the Act are used exclusively for the occupation required to pay them and therefore 

are collected in a valid special fund. James v. Joseph, 179 

S.W.2d 411 (Tex.Civ.App. 1944) reversed on other grounds, 143 

Tex. 440, 185 S.W.2d 974. 52 Tex.Jur.Zd. 747, State of Texas, 

§ 36. In Section 8(b) the words "into the State Treasury" mean 

that funds are to be transferred into the General Fund. Manion 

v. Lockhart, 131 Tex. 175, 114 S.W.2d 216 (1938). The State 

has the right, if the Legislature deems it necessary, to pass 

suitable laws authorizing the balance of Special Funds created 

by statute to be used for general purposes. Gulf Ins. Co. v. 

James, 143 Tex. 424, 185 S.W.2d 966 (1945). 

In absence of any constitutional or statutory requirement that Special Funds or state funds must be deposited in the 

hands of the State Treasurer, a statute authorizing collection 

of license fees in a Special Fund will not be construed so as to 

require deposit of such fees into the custody of the State 

Treasurer. Gipson v. Ingram, 215 Ark. 812, 223 S.W.2d 595 

(1949); State Licensing Board of Contractors v. State Civil 

Service Commission, 110 So.2d 847 (La. Ct. of App. 1959, aff. on 

ape. 1. Fees collected under the Act may be paid to the State 

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Dr. James E. Peavy, page 4 (G-493 ) 

Treasurer as custodian of the Sanitarians Registration and 

License Fund administered as a special fund. The State Board 

of Health is authorized by the Act to expend funds collected 

under the Act for purposes described by the Act. A full report of expenditures is to be filed with the Secretary of State 

at the end of each fiscal year. All monies are to be deposited in the General Revenue Fund at the end of each fiscal 

year. 

It is our opinion that: 

(1) The Sanitarians Registration and License Fund is 

a special fund which may be deposited in the custody of the State 

Treasurer. 

(2) Monies deposited in the Sanitarians Registration 

and License Fund are to be expended under supervision of the 

State Board of Health for the purposes enumerated by Senate Bill 

333, 59th Legislature, 1965. 

(3) Any monies remaining in the Sanitarians Registration and License Fund at the end of each fiscal year are to 

be transferred to the General Fund of the State Treasury. 

SUMMARY 

(1) The Sanitarians Registration and License 

Fund is a special fund which may be deposited in 

the custody of the State Treasurer. 

(2) Monies deposited in the Sanitarians 

Registration and License Fund are to be expended 

under the supervision of the State Board of Health 

for the purposes enumerated by Senate Bill 333, 

59th Leg. 

;(3) Any monies remaining in the Sanitarians Registration and License Fund at the 

end of each fiscal year are to be transferred to 

the General Fund of the State Treasury. 

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r - 

Dr. James E. PeaVy. Page 5 (c-493 ) 

Very truly yours. 

WAGGONER CARR 

Attorney General 

Bv: 

Gordon Houser 

Assistant 

GH:ra 

APPROVED: 

OPINION CCMMITTEE 

w. 0. Shultz, Chairman 

Dean Arrington 

John Banks 

Jim Briscoe 

Larry Craddock 

APPROVED FOR THE ATTORNEY GENERAL 

BY: T. B. Wright 

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