## THE ATFORNEY GENERAL
-~, OF -XAS 

### Aucrrm. **-lkxAO 7s7ll**  September 4. 1974 The Honorable **Sam** F. Baxter Assistant Criminal District Attorney Harrison County **P.O. Box**  **776** Marshall, Texas 75670 Opinion No. H- 391 Re: May proceeds from sale of Permanent School Fund land be paid back toa County to create avocational school. Dear Mr. Baxter:

You ask: May the Commissioners Court of Harrison County,

Texas sell 2,260 acres ofland owned by the Permanent School Fund ofHarrison County, Texas, such land being situated in Runnels County, Texas, ifthe funds received from said sale are paid over toeach independent school district in Harrison County proportionally according topupil enrollment. May the independent school districts receiving said funds pay back said funds toHarrison County tobe used in the creation ofa County-wide vocational school. Clear Constitutional and statutory power is given tothe Commissioners Count of each county to sell land belonging tothe county Permanent School Fund. Article 7, $6, Texas Constitution; $517.81, 17.82(b), Vernon’s Texas Education Code. The express power tosell school land is coupled with express restrictions on the use ofthe proceeds ofthe sale. The Commissioners **Court** may invest the proceeds in certain designated bonds pursuant to Article 7, §6, ofthe Constitution and §17.82(b) of the Education Code. Or, the Commissioners **Court** may distribute the proceeds ofthe sale pursuant to Article 7, 56b of the Texas Constitution:
p. 1034The Honorable Sam Baxter page 2 (H-391) _-

. . . any county, acting through the commissioners court, may reduce the county permanent school fund ofthat county and may distribute the amount ofthe reduction tothe independent and common school districts ofthe county on aper scholastic basis to be used solely for the purpose of reducing bonded indebtedness ofthose districts orfor making permanent improvements
. . . . The distribution must be made “on a per scholastic basis. ‘I Baaed on two Texas Supreme **Court** decisions, Attorney General Opinion H-47(1973) interpreted “on aper scholastic basis” to mean “on the basis ofthe number ofpersons residing in the school district eligible by age for free aducation. ” Consequently, distribution proportionally according toactual pupil enrollment would not be the correct standard.

Article 7, $6b of the Constitution is the only vehicle allowing distribution ofthe corpus ofthe county Permanent School Fund tothe school districts. The funds so distributed may be used by the districts for reducing bonded indebtedness or for making permanent improvemente. Distribution is premieed upon the restricted **we** ofthe funda. The pay-back of said funds to the County would violate the constitutional duty ofthe echool district board oftrustees to use the funds solely to reduce bonded indebtedness or tomake permanent improvements. There may be ways in which the use of such funds by the school districts for the constitutionally restricted purposes could benefit vocational school programs, but the method suggested cannot be utilized. SUMMARY The Commissioners Court may sell land belonging tothe Permanent School Fund and distribute the proceeds tothe common and independent school districts ofthe county proportionally according tothe number ofpersons

p. 1835____, -.-

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The Honorable Sam F. Baxter page 3 (H-391)

APPFRED: residing in the districts who are eligible by age

for free public education. The school districts may not pay back tothe county funds received pursuant toArticle 7, $6b, Texas Constitution.



# \)\L Aahistant 

# &Z

DAVID M. I

SENDALL, Chairman Opinion Committee ery truly yours,

Attorney General of Texas

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p. 1836