GDhALDC.MANN June 15, 1939

HonorableWalter C. Woodward Life Insurance Ccmmissionerand Chairman of the hoard Board of InsuranceCcmmissioners Austin, Texas Dear Sir: OpinionNo. O-647. pep Disposition of oertain fees oolleoted uiider

Article 3020, as emended bythe 46th Legislature; S-B. ao..404.
we have for aeknodedgment your letter of 

### June 6th, 1939. It ap pears from your letter that Article 3920, as amended by the 46th Legislature, in Senate Bill No. 404, provides for the oolleotion of certain fees by the Board of InsuranoeCommissioners,and untilAugust 31, 1939, appropriates such fees "to 'theuse and benefit of the Eoardof Insurance Ccsmnissioners

tobe used in the payment of salaries and other expenses arising out of and in connectionwith the examination of insurance ccmpanies and/or the licensingof insurance companiesand investigationsof violations of the Iznsuranoe Laws of this 2tate.q You advise that the Board has several specialfunda out of which is paid the cost of examinationof insurance companies, certain expensesin connectionwith licensing insuranoe companies, and the oost of invemtigating the violation of InsuranceLaws, and you ask the opinion of this Department upon the questionwhether the fees collectedunder Article 392l may be deposited bythe Board in any of these special funds decided upon: by it and dislmrsed from such special funds in oarxyingout the provisions of the Article. You are advised that it is the opinion of this Department that the fees collectedunderArticle 3920 should be deposited in a special fund to be maintained for the purposes specified in Smate,Bill No. 404, and that moneys from this specialfundmay be transferredby the Board of Insurance Commissioners from time to time, as in ifs discretion appears neoessary, to supplementthe funds available in the other special funds maintained for the purposes of defrayingthe cost of examination of insuranae ocmpanics, defraying the expenses in connectionwith licensing of insurance oompanies,and defraying expenses inaidentto the investigationof the violation of inaurenae laws. .Sofar as the use of these moneys to defray the expenses of examining insurance companies is concerned, it does not appear that it is the intentionof the Legislature to amend Article 4690, as amended, so as to relieve the insurance companiesexamined, to the extent of the feesHonorablebklter C. Woodward, Page 2 (O-847)

availableunder Article 3920, from the payment of assessments for the expenses of examinations sufficientto meet all of the expenses and disbursementsnecessary to complywith the provisions of the laws of Texas relating to such'exandnationsof insurance companies. Ttwould therefore seem that the use ofthe fees under Article 3920 should b-s limited to expensesnot properly chargeableto and collectiblefrom insurance companies by assessment under the provisions.ofArticle 4690. This is not to say that the fees collectedunder Article 3920 may not be used for the purpose of defraying examination expense, but merely to require that the use of such fees collectedunder and by virtue of Article 3920 shall not relieve the insurance company from the duty of reimbursingthe .fund by the assessment required to be levied and collectedby Articld',4690.

,. ','. Yours very truly ‘ ATTORREYGEWEFZU OF TEXAS

~. .' :, " By /s/:R.W. Fairchild

R. W-Fairchild Assistent 1. RWF;PBP:egu ~' ..' APPRovEDI /s/Gerald C. k~nn APPROVED ATTORNEY GEEERAL OF TEXAS IT '~ 'Opinion. Cof-ti~ttee 'ByCOB " Chairman'

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