The Attorney General of Texas 

December 7, 1981 

MARK WHITE 

Attorney General 

Supreme Court Building 

P. 0. BOX 12546 

Austin, TX. 76711 

512/475-2501 

Telex 9101674-1367 

Telecopier 51214750266 

1607 Main St., Suite 1400 

Dallas, TX. 75201 

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4824 Alberta Ave., Suite 160 

El Paso, TX. 79905 

915/533-3464 

1220 Dallas Ave., Suite 202 

Houston, TX. 77002 

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606 Broadway, Suite 312 

Lubbock, TX. 79401 

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McAlle”, TX. 76501 

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5121225-4191 

An Equal OppOrtunityi 

Aftirmative Action Employer 

Honorable Warren G. Harding 

State Treasurer 

L.B.J. State Office Building 

P. 0. Box 12608, Capitol Station 

Austin, Texas 78711 

Opinion No. MW-405 

Re: The funding of escheat 

investigations 

Dear Mr. Harding: 

You advise that holders of dormant bank deposits and inactive 

accounts may not be complying with the provisions of article 3272b, 

V.T.C.S., which require that such funds be delivered to the custody of 

the state treasurer. You believe the services of a certified public 

accountant and an attorney with expertise in the recovery of unclaimed 

property would be helpful to your office, and wish to know if such 

personnel can be employed and, if so, out of which fund their expenses 

and fees or salaries should be paid. 

The General Appropriations Act for the biennium ending August 31, 

1983, appropriates money to the treasury department for "escheat 

management." Acts 1981, 67th Leg., ch. 875, art. I, at 3333, 3517. 

Among the funds supplying the money appropriated is the Escheat 

Expense and Reimbursement Fund No. 152. Id. (method of financing). 

That is a fund established by article 3272a, V.T.C.S. A different 

fund styled the "State Conservator Fund" is established by article 

3272b. V.T.C.S. 

Both statutes are a part of Title 53 dealing with escheats. 

Section 15(a) of article 3272a states: 

There is hereby created a revolving fund to be 

known as the 'Escheat Expense and Reimbursement 

Fund' in the amount of One Hundred Thousand 

Dollars ($1000,000) to be held by the State 

Treasurer,... one half (k) of which shall be used 

by the Treasurer and the Attorney General,... for 

the purpose of enforcement of the provisions of 

this Title, including the expense of publishing of 

notices, examinations, travel, court costs, 

witness fees, employment of such additional 

assistants and other personnel as may be necessary 

for such purposes in either of their offices at 

p. 1375 
Honorable Warren G. Harding - Page 2 (MW-405) 

salaries not to exceed the rate paid other 

employees for similar services, and all other 

expenses necessary for enforcement of this Title. 

(Emphasis added). 

The fund established by article 3272a is earmarked "for the purpose of 

enforcement of the provisions of this Title." (Emphasis added). 

The "State Conservator Fund" of article 3272b. comprised of 

escheated accounts and other property, is earmarked for the 

"enforcement of the provisions of this Article." As you noted article 

3272b ("this Article") addresses depositories -- meaning banking 

institutions and other organizations that receive and hold deposits of 

money for others -- and the disposition of dormant or inactive 

accounts. See Attorney General Opinion C-107 (1963). Section 5 of 

article 3272b specifically establishes the "State Conservator Fund": 

from which there shall be set aside and maintained 

a revolving expense fund of Twenty-five Thousand 

Dollars ($25,000) for the purpose of paying 

expenses incurred by the State Treasurer in the 

enforcement of the provisions of this Article, 

including the expense of publications, forms, 

notices, examinations, travel, and employment of 

necessary personnel.... The expense fund of 

Twenty-five Thousand Dollars ($25,000) is hereby 

appropriated to the State Treasurer for the 

purposes above stated for the biennium ending 

August 31, 1963. 

You suggest that the legislature intended by the foregoing 

provision to make available to your office the $25,000 revolving 

expense fund in addition to any other funds appropriated for the 

purpose of defraying escheat management expenses. The lack of an 

express requirement that the article 3272b expense fund be subject to 

recurring appropriations is contrasted with the language of article 

3272a establishing the Escheat Expense and Reimbursement Fund (also a 

revolving fund) which expressly states, "The [funds] shall be subject 

to... appropriation by the Legislature for the purpose of enforcing 

this Title." Id. 515. 

The absence of express language authorizing or requiring a 

legislative biennial appropriation does not make this fund available 

to your office without appropriation. Article VIII, section 6 of the 

Texas Constitution specifies: 

No money shall be drawn from the Treasury but in 

pursuance of specific appropriations made by law; 

p. 1376 
Honorable Warren G. Harding - Page 3 (MW-405) 

nor shall any appropriation of money be made for a 

longer term than two years.... 

Moreover, by making an initial appropriation of the fund for the 

biennium ending August 31, 1963, the 57th Legislature signified that 

the fund was to be deposited in the treasury and appropriated by the 

legislature as needed. The money in the fund is earmarked for use by 

the treasurer as specified and cannot be devoted to any other purpose, 

but it cannot be withdrawn from the treasury for such use unless 

properly appropriated therefor. See Johnson V. Ferguson, 55 S.W.2d 

153 (Tex. Civ. App. - Austin, writ dism'd). The initial appropriation 

served only for the 1962-1963 biennium. See Dallas County v. McCombs, - 

140 S.W.2d 1109 (Tex. 1940). 

It follows that the money appropriated for escheat management, 

but not the unappropriated money in the article 3272b revolving 

expense fund, is available to your office for the purpose of paying 

the salary and expenses of persons to assist in the investigation and 

recovery of unclaimed property. Your office has ample authority to 

use the appropriated funds for that purpose. Both articles 3272a and 

3272b evidence the legislative intent that the treasurer actively 

pursue enforcement of the statutory provisions, employing personnel 

for that purpose and paying their expenses. See Attorney General 

Opinion C-388 (1965). 

We advise that you may employ experts to aid you in the recovery 

of unclaimed property, and that their expenses and fees or salaries 

should be paid from the amount appropriated to your office by the 

legislature for "Escheat Management," or from other "Fiscal 

Management" sub-items transfered thereto. See Attorney General 

Opinion M-1010 (1971). Cf. Letter Opinion NrMS-258 (1956) (no 

appropriation). You should, of course, consult pertinent riders to 

the appropriations act. See Acts 1981, 67th Leg., ch. 875, art. V, 

581, 2(s), 9, 40, 41, 68,: 3333, 3766, 3794, 3801, 3815, 3816, 3823 

(riders re: position classification plan and schedule, manual of 

accounts, court representation, outside legal counsel, consultant 

contracts). See also V.T.C.S. art. 664-4 (professional services 

procurement act; V.T.C.S. art. 6252-11 (position classification act); 

V.T.C.S. art. 6252-11~ (private consultants). 

SUMMARY 

The treasury department may employ experts to 

aid in the recovery of escheated property and pay 

the expenses and fees or salary thereof from funds 

appropriated to it. 

p. 1377 
Honorable Warren G. Harding - Page 4 (Mw-405) 

Very truly yours, 

MARK WHITE 

Attorney General of Texas 

JOHN W. FAINTER, JR. 

First Assistant Attorney General 

RICHARD E. GRAY III 

Executive Assistant Attorney General 

Prepared by Bruce Youngblood 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Susan L. Garrison, Chairman 

Jon Bible 

Rick Gilpin 

Jim Moellinger 

Bruce Youngblood 

p. 1378