# T'msA~~oamim~ GENEZRAL OF ?I?ExAs

A- 

## 1s.

- W’ILL WILSON A-rroR- a-RAI. January 27, 1961

Mr. 0. B. Ellis. Mrector Ooinlon No. W-ggl Texae~Bepartment of Corrections - Huntsville, Texas Re:

Dear Mr. Ellis:
Youhave requested our opinion on questions: Construction and effeot of Article 5382d of Vernon's Civil Statutes
the following

“1. Should royalties andrentals paid after the passage of Article 5382d, Vernon's Civil Statutes, on leases of prison lands which were executed prior to June 2, 1951, be credited to the Special Mineral Fundof the Texas Department of Corrections?"

“2. Should all revenue be c?:?dl.ted to the Special Mineral Fundof.the Texas Department of Correctlona where such revenue is derived from leases on prison lands which were executed after the effective date of Article 5382d, VW?"
Article 6203a, Vernon's Civil Statutes,created the Board for Lease of Texas Prison Lands. This Board waaempoweredto lease all or anypart of lands ownedby the State of Texas aa Texas prison lands. Thi.oAct also provided that "Royalties as stipulated in the sale shall be paid to the General Land Office at Austin, Texas, for benefit of the General Revenue Pund..." Weare advised that gwauant to this Act the Board med certain prison lands, fram which oil andgas has been produced. Royalties therefrom have been recelvra andwere deposited to the credit of the Ge.leral Revenue Fundas provided in the Statute. Subsequently, Article 5382a, Vcrnonls Civil Statuter+ was enacted by the 52ndLegislature **and** became effective onJune 2, 1951. This Act provided that lands thereafter ownedor held for the use or benefit of anyDepartment, Board, or Agency of the State of Texas might be ieased. TheBoard la comprised of the Commiasloner of the General LandOffice, the Attorney General, and "the particular President or Chairman of the Fhard w Acency, or Headof the Department charged G<ithth;?Mr. 0. B. Ellis, Page2 (W-991)

responeibility of managementor control of lands nowowned by, or that mayhereafter be ownedby, or held iti trust for, the use andbenefit of said Department, AEcncy, or Board.” Section 16 of this Statute provides that anyamounts received under andbyvirtue of this Act shall be deposited in the State Treasury to the credit of special funds to be knownas the ‘(appropriate Department, Board, or Agency) Special Mlneral Fund’
, which funds are hereby created, and shall be used exclusively for the benefit of the appropriate Department, Board, or Agency; provided, however, nomoney shall’ever be expended from these funds except by legislative appropriation andthen for the,purpcaes and in the amounts stated in the Act appropriating same.” TheAct also repealed all laws or parts of lawa.ln conflict therewith. Replying to your first question, weare of the opinion that all monies received after June 2, 1951, should beg deposited to the credit of the Texas Department of Correction’8 Special Mineral Fund, even though the lease from whiah the revenue was derived was executed prior to the effectl.ve date of Article 5382d. Theprovision in Article 6203a for royalties to be paid to the General LandOffice for benefit of the General Revenue Fund, was superseded andconsequently nulli-’ fied as cf June 2, 1951, whenArticle 5382dbecame operative. It is of no consequence that leases may have been executed prior to that date since somemonies were received therefrom after this Act became effective.
As to your second question, It is our opinion that all r&ewe from leases madeaf.ter June 2, 1951, at which time Article 5382d became effective, should properly be credited to the Texas Department of Correction16 Special Mineral Fund as authorized by that Act. In that connection, weare lnformed that $15,882.53 has been paid on a lease madeDecember 12, 1952, and that $61,062.69 of royalties has been paid on a lease madeDecember 28, 1951, These royalties have been deposited to the credit of the General Revenue Fundrather that the Special Mineral Fundof the Texas Department of Corrections, even though both leases were executed after Article 5382dwent into effect. While these monies should properly have been credited to the Special Mineral Fundof the Texas Department of Corrections, you are advised that monies maynot bewithdrawn from the General Revenue Pund andplaced in another fund in order to rectify aprevious bookkeeping error, or for anyother reason, except upon specific direction of the Legislature. Conatltution of Texas, Article 8, Section 6; Manlonv. Lockhart, 131 Tex. 175,Mr. 0. B. alis, Page 3 (W-991)

114 S.W. 2d 216; Q-44. Attorneg Qcneral’e opinions No. O-108 and

Copies of these opinions are attached.

SUMMARY Royalties andrentals paid after June 2, 1951, being the effective date of Article 5382d, Vernon’8 Civil Statutes, on leases which were executed prior to that date, should properly be credited to the Texas Department of Correctlonfs Special Mineral and. All revenue received from leases which were executed after June2, 1951, should be credited to the Texas Department of Correction’s Special Mlneral Fund; however, revenue which has been received on leases of Texas prison lands, irrespective of whether the leaaf, was exeotued before or after June 2, 1951, andwhich funds have been erroneously deposited to the account of the General Revenue Fundmay not be withdrawn or transferred to the Special Mineral Fundexcept upon specific direction of the Legislature. Very truly youra, WILLWILSON

By B. H. Tlmmlns, Jr. .‘/ Assistant BHT:jh
APPROVED:
OPINIONCOMMITTEE w. v. Geppert, Chairman
John Reeves L. P. Imllar RayV. Loftln J. Arthur Sandlfn
REVIEWED

FORTHEATl?ORNEY GENERAL BY: Morgan Nesbitt