"P'arcA~r0mv~Y GENERAL 

OFTEXAS 

September 15, 1958 

Honorable J. M. Falkner 

Commissioner 

Department of Banking 

Austin 14, Texas 

Dear Mr. Falkner: 

Opinion No. WW-500 

Re: Whether or not the Finance 

Commission of Texas may, 

under the provisions of 

Article 342-112, Vernon's 

Civil Statutes, authorize 

the expenditure of moneys 

for costs and other expenses 

incurred by the State Banking Board in the trial of a 

case brought under the pro+ 

visions of Article 342-115, 

Vernon's Civil Statutes. 

You have requested the opinion of this office as to 

whether the Finance Commission of Texas may, under the provisions of Article 342-112, Vernon's Civil Statutes, authorize 

the expenditure of moneys for costs and other expenses incurred 

by the State Banking Board in the trial of a case brought under 

the provisions of Article 342-115, Vernon's Civil Statutes, 

based on the following factual situation. 

Some time ago,several lawsuits were brought against 

the State Ranking Board in connection with certain applications 

for charter of a State bank under the provisions of Article 342- 

115, Vernon's Civil Statutes, which provides that the findings 

and determination of the State Ranking Board shall be subject 

to review by a court of competent jurisdiction. After the disposition of these cases in the trial court there was an appeal 

to the Court of Civil Appeals at Austin, Texas, in one of the 

cases, and incidental to this appeal, the Court Reporter of the 

98th District Court of Travis County, Texas, furnished copies 

of the Statement of Facts in certain of these cases to be used 

by the Office of the Attorney General of Texas in preparing the 

briefs for the State Ranking Board and the members thereof as 

appellees. 

The statements for the services rendered by the Court 

Reporter were presented to the Department of Ranking for payment 

from its funds, but since no allocation of funds had been made 

for such purposes, the account is still unpaid. However, the 
Hon. J. M. Falkner, page 2 wi- 500 1 

Finance Commission, acting under the'provisions of Article 342- 

112, Vernon's Civil Statutes, has recently set aside funds for 

the purpose of paying these bills if it may legally do so. 

It is the opinion of this office that the Finance Commission of Texas may under the provisions of Article 342-112 

Vernon's Civil Statutes, authorize the expenditure of money f& 

costs and other expenses incurred by the State Ranking Boardin 

the,trial of a case brought under the provisions of Article~342- 

115, Vernon's Civil Statutes. The State Ranking Board, which is 

composed of the Attorney General, the State Treasurer and the 

Banking Commissioner, is a State agency and subject to be sued 

in a court of competent jurisdiction to set aside its findings ' 

and determinations, as was done in this case. 

Vernon's Civil Statutes). 

(Article 342-115, 

It is the duty of the Attorney General 

of Texas to defend any action brought against the State Banking. 

Board and the members thereof by reason of any official act. 

(Article 342-207, Vernon's Civil Statutes). The suit in question 

was an action brought against the members of the State Ranking 

Board by reason of an official act, and, therefore, it was the 

duty of the Attorney General of Texas to defend them in such 

Court. 

While it is true that Article 342-1128, Vernon's Civil 

Statutes, provides that the Banking Department shall cause to be 

transferred each year of the biennium the sum of Four Thousand 

(&,OOO.OO) Dollars to the General Fund to cover the cost of governmental service rendered by other departments, such provision 

only covers the services rendered by the Attorney General of 

Texas in defending the action under the provisions of Article 

342-207? but does not include and is not intended to include expenses incurred by the Attorney General in conducting the defense 

of the suit to its final determination. The cost of furnishing 

copies of the Statements of Fact by the Court Reporter to the 

Attorney General was a legitimate expense incurred by and on behalf of the State Banking Board in the defense of the action. 

Article X42-112, Vernon's Civil Statutes, provides in 

part as follows: 

11 . . . Fees, penal'ties and revenues collected 

by the Ranking Department from every source.whatsoever shall be retained and held by said Department, 

and no part of such fees, penalties and revenues 

shall ever be paid into the General Revenue Fund of 

this State. All expenses incurred by the Ranking 

Department shall be paid only from such fees, penalties and revenues; and no such expense shall ever 

be a charge against the funds of this State. . . .'I 
Hon. J. M. Falkner, page 3 WJ- 500 1 

Since the above quoted portion of Article 342-112' 

provides that all expenses incurred by the Banking Department 

shall be paid only from such fees penalties'and revenues, and 

the expenses incurred one behalf oh the Banking Department for 

the services of the Court,Reporter being legitimate expenses, 

you are advised that the Finance Commission of Texas may authorize the payment of these obligations. 

SUMMARY 

Court costs and expenses incurred in defending an action~against the State Banking, Board 

under the provisions of Articles 342-115 and 342- 

207, Vernon's Civil Statutes, may be legally paid 

from sums appropriated by the Finance Commission, 

of Texas under the provisions of Article X42-112, 

Vernon's Civil Statutes. 

Yours very truly, 

WILL WILSON 

Attorney General of Texas 

CKR:jl:wb 

APPROVED: 

OPINION COMMITTEE 

Geo. P. Blackburn, Chairman 

William E. Allen 

Jack Goodman 

Tom I. McFarling 

Leonard Passmore 

REVIEWED FOR THE ATTORNEY GENERAL 

BY: W. V. Geppert