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 to a County to 

create a vocational school. 

Dear Mr. Baxter: 

You ask: 

May the Commissioners Court of Harrison County, 

Texas sell 2, 260 acres of land owned by the Permanent 

School Fund of Harrison County, Texas, such land 

being situated in Runnels County, Texas, if the funds 

received from said sale are paid over to each independent 

school district in Harrison County proportionally according to pupil enrollment. 

May the independent school districts receiving said 

funds pay back said funds to Harrison County to be used 

in the creation of a County-wide vocational school. 

Clear Constitutional and statutory power is given to the Commissioners 

Count of each county to sell land belonging to the county Permanent School 

Fund. Article 7, $6, Texas Constitution; $ 5 17. 81, 17. 82(b), Vernon’s Texas 

Education Code. The express power to sell school land is coupled with 

express restrictions on the use of the proceeds of the sale. The Commissioners 

Court may invest the proceeds in certain designated bonds pursuant to 

Article 7, § 6, of the Constitution and § 17. 82(b) of the Education Code. Or, the 

Commissioners Court may distribute the proceeds of the sale pursuant to 

Article 7, 5 6b of the Texas Constitution: 

p. 1034 
The Honorable Sam Baxter page 2 (H-391) _- 

. . . any county, acting through the commissioners 

court, may reduce the county permanent school fund 

of that county and may distribute the amount of the 

reduction to the independent and common school 

districts of the county on a per scholastic basis to 

be used solely for the purpose of reducing bonded 

indebtedness of those districts or for 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 a per scholastic basis” to mean “on the basis of the number 

of persons residing in the school district eligible by age for free aducation. ” 

Consequently, distribution proportionally according to actual pupil enrollment 

would not be the correct standard. 

Article 7, $6b of the Constitution is the only vehicle allowing 

distribution of the corpus of the county Permanent School Fund to the 

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 of the funda. The pay-back 

of said funds to the County would violate the constitutional duty of the echool 

district board of trustees to use the funds solely to reduce bonded indebtedness 

or to make 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 to the Permanent School Fund and 

distribute the proceeds to the common and 

independent school districts of the county proportionally according to the number of persons 

p. 1835 
____, -.- 

‘ - A 

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 to the county funds received 

pursuant to Article 7, $6b, Texas Constitution. 

\)\L 

Aahistant 

&Z 

DAVID M. I SENDALL, Chairman 

Opinion Committee 

ery truly yours, 

Attorney General of Texas 

lg 

p. 1836