. - 

THEA~TORNEYGENERAL 

OlF~EX:AS : 

June 18, 1948 

Honorable Lon Alsup 

Executive Secretary-Director 

State Commission for the Blind'~ " 

Land Office Building 

Austin, Texas 

Opinion NO. v-609 

Re: 'Authority of 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 Commission for the Blind permit 

the said ConmIssIon to accept donations. 

Mr. Ben M. Beaver '; . . desires to donate 

to the State Commission for the Blind approximately 17 acres of land, . . 

requesting anopinion reads in 

"Mr. Beaver proposes to give a deed 

to this land to said Commlss$.on with the 

specific agreement 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 statement made above, 

please advise this department If it would 

be advisable for this agency to accept this 

donation. Also advise if this land was accepted by this agency, if it would be exem ted 

we t 

from county and,state taxes. If it 

e not exempted, would this agency be responsible for the taxes or would such taxes 

be paid by the Legislature of the State of 

Texas. 
- 

Hon. Lon Alsup - Page 2-V-609 

"It is also to be taken into consideration the fact that if the Commission for 

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 reasonable period of time 

that such a project is not feasible, then in 

that event, the Commission for the Blind or 

the the State of Texas would be permitted to 

sell such land and the proceeds, of the sale 

of such property would 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 Legislature is codlfled as Art. 3207c, Sec.7, 

v. c. s., and reads as follows: 

"Gifts. The Director is hereby authorized and empowered, with the approval 

of the Commission, to accept and use gifts 

made unconditionally by will or otherwise 

for carrying out the purpose of this Act. 

Gifts made under such conditions as in the 

judgment of the Commission are proper and 

consistent with the provisions of this Act 

may be so,accepted and shall be held, invested, reinvested, and used in accordance 

with the condttlons of 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 development of a rural project for 

blind persons. It Is further noted that the deed reserves a life estate in the mineral rights to the grantor 

and his wife. 

In our opinion, a reservation of a life estate 

in the minerals to the grantor and his wife is "proper 

and consistent" with, the provisions of Art. 3207c,V.C.S. 

The reservation of the minerals In the land to the grantor and his wife for life may conceivably interfere with 

the future use of the land for the development of a rural 

project for the blind, if there is any substantial oil 

and gasdevelopment. In such event, however, the land 

could be sold without affecting the mineral rights of 
Honorable Lon Alsup - Page 3-v-609 

the grantor and his wife." -' 

If the Commlsslon accepted the donation of 

this land, would It be tax exempt?~ The State Commission for the Blind isan Instrumentality of State 

government and possesses only such powers as has 

been conferred on it by the Constitution and Leglslature. We do not find any statute or article of 

the Constitution that permits the,payment of 'taxes 

by the State Colmnission for'the Blind; 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 Attorney General's Opinion 

Ho. O-2355 as follows: 

"Your question is answered,' then, by 

determining the character of the'grant. 

It is clear that 3.P it is public money 

it may not be expended except upon a ape- , 

clfic appropriation made therefor by the 

Legislature. Sectia.6, Article VIII, 

Constitution of 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 Commlsslon as trustee under 

any lawful condltlons Imposed by the donor 

of the grant consistent with the Commlsslonts duties under Art; 3207a, V.C.S. 

Such funds have no place in the State 

Treasury and Section 6 of Article VIII 

of the Constitution has no application. 

Under such circumstances, moreover, reaaonble prudence would dictate that all 

such moneys received be placed in a private bank account." 

It is to be noted that Section 7 of Article 

3207c, V. C. S., authorizes the Director "to accept 

and use gifts," but the Commission must first approve 

the gift. The conveyance should be made to the Director of the State Commission for the Blind and his 

successors In office as trustee. Itis also to be 
Hon. Lon Alsup 

noted that the gifts "shall be held, invested, 

reinvested and 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 

capacity of 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, reinvested and used for vocational rehabilitation of the blind as authorized in Arti- 

,cle 3207c, V. C. S. 

Yours very truly 

ATTORNEYGENEML OF TEXAS 

RWS:bt 

BY Robert W. Spence 

Assistant 

APPROVED