I . 

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: 

"As you know all expenses of the Banking 

Department of Texas'are paid out of fees, 

penalties, and,revenues collected by 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 some period of time before they are 

needed to pay the expenses of the operation 

of the Department. Please advise us whether 

or not, in your opinion, the Finance Commission of Texas could authoriie the investment 

of such funds in U. S. Government Bonds or 

other obligations during such periods when 

such funds are idle and notneeded for the 

operation of the Department." 

The powers of the Finance Commission with reference 

to the disposition and control of public monies involved in 

yourrequest are governed by the provisions of Article 342-112, 

Vernon's Civil Statutes, which provide as follows: 

"The Commissioner shall, from time to time 

as directed by the Finance Commission, submlt 

to such Commission a full and complete report 

of the receipts and expenditures of the Banking 

Department and the Finance Commission may 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 same manner as other State Departments, 

and the actual costs of such audits shall be paid 

to the State Auditor from the funds of the Banking 

Department. Fees, penalties aricrevenues collected 

by the Banking Department from every source whatsoever shall be retained and held by said Department, 

and no part of such fees, penalties and revenues 

shall ever be paid into the General Revenue Fund 

of this State. All expenses incurred by the Banking Department shall be 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, budgets which shall direct the 

purposes, and prescribe the amounts, for which 

the fees, penalties and revenues of the Ranking 

Department shall be 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 disbursements of the Banking 

Department for each calendar year; and shall within 

the first sixty (60) days of each succeeding Regular Session of the Legislature make a report to 

the appropriate committees of the House and Senate 

charged with considering legislation pertaining 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 Legislature has not specifically 

authorized the Finance Commission to invest such funds. Whenever the Legislature has authorized a State agency to invest 

public monies, it is stated the securities into which such monies may be invested; e.g., Section 9 of Article 678m, Vernon's 

Civil Statutes, authorizing the State Building Commission to 

invest monies in certain United States Government obligations. 

In the absence of such statutory authorization, it is 

our opinion that the Finance Commission does not have authority to invest public monies under its control. Such investment 

would not constitute payment of any expense of the Banking Department and would not constitute "retentioI1'by the Department 

of the public funds since such an investment would require an 

expenditure of the funds. 
Honorable Sam 0. Kimberlin, Jr., Page 3 (w-725) 

SUMMARY 

The Finance Commission of Texas does 

not have authority to invest public 

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 ATTORNEY GENERAL 

BY: W. V. Geppert..