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### THEATI-ORNEY GENERAL OPTEXA~

November 16, 

### 1959

Honorable Sam 0. Kimberlin, Jr. Deputy Commissioner Department of Banking Austin 14, Texas Opinion No. W-725
Re: Authority of the Finance Commission to invest funds In United States Government Dear Mr. Kimberlin: obligations.

Your request for an opinion from this office reads as follows: "Asyou know all expenses of the Banking

Department of Texas'arepaid out of fees, penalties, and,revenues collectedby the Department under the Banking Department Self Support and Administration, Act (Acts 1951, 52nd Legislature,page 233, Chapter 139). From timeto time funds are accumulated and held for someperiod of timebefore they are needed to pay the expenses of the operation of the Department. Pleaseadvise us whether or not, in your opinion, the Finance Commission of Texas could authoriie the investment of such funds in U. S. GovernmentBonds or other obligationsduring suchperiodswhen such funds are idle and notneeded for the operation of the Department." The powers of the Finance Commissionwith reference to the dispositionand control of publicmonies involved in yourrequest are governedby the provisions of Article 342-112, Vernon's Civil Statutes,which provide as follows:

"TheCommissioner shall, from time to time as directedby the Finance Commission, submlt to such Commissiona full and complete report of the receipts and expenditures of the Banking Department and the Finance Commissionmay from.

Honorable Sam 0. Kimberlin, Jr., Page 2 

### (Ww-725)

time to time examine the financial records of the Banking Department or cause them to be examined. In addition, the Banking Department shall be audited from time to time,by the State Auditor in the samemanner as other State Departments, and the actual costs of such audits shallbe paid to the State Auditor from the funds of the Banking Department. Fees, penalties aricr evenues collected by the Banking Department from every sourcewhatsoever shallbe retained and held by said Department, and no part of such fees, penalties and revenues shall everbe paid into the General Revenue Fund of this State. All expenses incurredby the Banking Department shallbe paid only from such fees, penalties and revenues, and no such expense shall ever be a charge against the funds of this State. The Finance Commission shall adopt, and from time to time amend, budgetswhich shalldirect the purposes, and prescribe the amounts, for which the fees, penalties and revenues of the Ranking Department shallbe expended;and the Finance Commission shall, as of December 31, 1951, and annually thereafter, report to the Governor of the State of Texas the receipts and disbursementsof the Banking Department for each calendar year; and shallwithin the first sixty 

### (60)days of each succeedingRegular Session of the Legislaturemake a report to the appropriate committees of the House and Senate chargedwith considering legislationpertaining to banking."
It is noted that such funds are required to be retained and held by the Banking Department. The Banking Department is further authorized to expend such funds for the payment of expenses of the Department. The Legislaturehas not specifically authorized the Finance Commissionto invest such funds. Whenever the Legislaturehas authorizeda State agency to invest publicmonies, it is stated the securities intowhich suchmoniesmay be invested; e.g., Section 9 of Article 678m, Vernon's Civil Statutes,authorizing the State Building Commissionto investmonies in certain United States Government obligations.

In the absence of such statutoryauthorization, it is our opinion that the Finance Commissiondoes not have authority to investpublicmonies under its control. Such investment would not constitutepayment of any expense of the Banking Department and would not constitute "retentioI1'by the Department of the public funds since such an investmentwould require an expenditure of the funds.Honorable Sam 0. Kimberlin,

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### 3 (w-725)

SUMMARY The Finance Commissionof Texas does not have authority to investpublic monies under its control in United States Government obligations.
Yours very truly,
WILL WILSON Attorney General of Texas

John Reeves

JR:mfh APPROVED: OPINION COMMITTEE Gordan Cass, Chairman Howard Mays Wallace Finfrock Morgan Nesbitt REVIEWEDFORTHE ATTORNEYGENERAL BY: W. V. Geppert..