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### THEA~TORNEYGENERAL OlF~EX:AS :

June 

### 18,1948

HonorableLon Alsup ExecutiveSecretary-Director State Commissionfor the Blind'~ " Land Office Building Austin, Texas OpinionNO. 

### v-609
Re: 'Authorityof State Commission for the Blind to accept land as a donation; to pay taxes thereon:to sell; and dlsposition of proceeds of such sale.
Dear Sir:

part: Your letter

"The laws

. . . in behalf of the State Commissionfor the Blind permit the said ConmIssIonto accept donations. Mr. Ben M. Beaver ';

. . desires to donate to the State Commissionfor the Blind approximately17 acres of land,

. .

requestinganopinion reads in

"Mr. Beaver proposes to give a deed to this land to said Commlss$.on with the specificagreement that all mineral rlghts~ are to be reserved to him and his wife untll their death. Then, such mineral rights would become the property of the commission.
"In view of the statementmade above, please advise this departmentIf it would be advisable for this agency to accept this donation. Also advise if this land was acceptedby this agency, if it would be exem ted wet from county and,statetaxes. If it e not exempted,would this agency be responsible for the taxes or would such taxes be paid by the Legislatureof the State of Texas.-

Hon. Lon Alsup - Page 

### 2-V-609

"It is also to be taken into consideration the fact that if the Commissionfor Blind were to accept this donation of land that It is to be used for the development of a rural project for blind persons. If it Is found over a reasonableperiod of time that such a project is not feasible, then in that event, the Commissionfor the Blind or the the State of Texas would be permitted to sell such land and the proceeds, of the sale of such propertywould go to the State Commission for the Blind to be used in developing the business enterprises program for the blind."

1945, Sec. 

### 7 of Ii. B. 

### 347,

Ch. 241, p. 

### 374,

Acts of 49th Legislatureis codlfledas Art. 3207c, Sec.7, v. c. s., and reads as follows:

"Gifts. The Director is hereby authorizedand empowered,with the approval of the Commission,to accept and use gifts made unconditionally by will or otherwise for carryingout the purpose of this Act. Gifts made under such conditionsas in the judgmentof the Commissionare proper and consistent

with the provisionsof this Act may be so,acceptedand shall be held, invested, reinvested,and used in accordance with the condttlonsof the gift."
It is OUT opinion that "gifts" as used in Article 3207c, Sec. 

### 7,V.C.S., is broad enough to include land.

Your letter states that this land, if accepted, would be used for the developmentof a rural project for blind persons. It Is furthernoted that the deed reserves a life estate in the mineral rights to the grantor and his wife.

In our opinion,a reservationof a life estate in the minerals to the grantor and his wife is "proper and consistent"

with, the provisionsof Art. 3207c,V.C.S. The reservationof the minerals In the land to the grantor and his wife for life may conceivablyinterferewith the future use of the land for the developmentof a rural project for the blind, if there is any substantialoil and gasdevelopment. In such event, however, the land could be sold without affecting the mineral rights ofHonorableLon Alsup - Page 

### 3-v-609

the grantor and his wife." -'

If the Commlsslonaccepted the donationof this land, would It be tax exempt?~The State Commission for the Blind isan Instrumentality of State governmentand possesses only such powers as has been conferredon it by the Constitutionand Leglslature. We do not find any statute or article of the Constitutionthat permits the,paymentof 'taxes by the State Colmnission for'theBlind; therefore,It is our opinion that such property interest conveyed to the said Commission would be exemptfrom Stite~~ and County taxes.

The question of whether or not such property could be sold was answered in AttorneyGeneral's Opinion Ho. O-2355 as follows:

"Your question is answered,' then, by determiningthe characterof the'grant. It is clear that 3.P it is public money it may not be expended except upon a ape- , clfic appropriation made thereforby the Legislature. Sectia.6, Article VIII, Constitutionof Texas; &Combs v. Dallas County (CCA; 1940) 136 S. W. (2) 975. On the other hand, if the gift constitutes a trust fund, and we hold under the specific facts given, that It does, It may be expended by your Commlsslonas trusteeunder any lawful condltlonsImposedby the donor of the grant consistent with the Commlsslontsduties under Art; 3207a,V.C.S. Such funds have no place in the State Treasury and Section 

### 6 of ArticleVIII of the Constitution has no application. Under such circumstances, moreover,reaaonble prudencewould dictate that all such moneys receivedbe placed in a private bank account."
It is to be noted that Section 7 of Article 3207c, V. C. S., authorizesthe Director "to accept and use gifts,"but the Commissionmust first approve the gift. The conveyanceshould be made to the Director of the State Commissionfor the Blind and his successorsIn office as trustee. Itis also to beHon. Lon Alsup

noted that the gifts "shallbe held, invested, reinvestedand used in accordance with the conditions of the gift."

- Page 

### 4 -- 

### v-609

SUrnY

The Director of the State Commission for the Blind, with the approval of the Commission, may act In the capacityof a trustee and accept gifts of land with mineral rights reserved in ~the grantor and his wife for life, and the interest in the land that is accepted will then be exempt from State and County taxes. Such land may be sold and the proceeds of the sale held, Invested,reinvestedand used for vocationalrehabilitation of the blind as authorizedin Arti- ,cle3207c,V. C. S.
Yours very truly

ATTORNEYGENEML OF TEXAS

RWS:bt BY Robert W. Spence Assistant

APPROVED