c



### OMNEY GENE-I.
EXRS

August 27, 1951

Hon. J. W. Edgar Opinion No. V-1256 Commissioner of Education Texas Education Agency Re: Authority ofthe Central EduAustin, Texas cation Agency to place Iocal funds oftheTexas Scboolfor theDeaf Independent School District in a local bank account to be spent by the Texas Education Agency for the deDear Dr. Edgar: scribed purposes.



### Your request for an opinion relates to the authority of the State Board of Education to keep local funds ofthe Texas School for the Deaf Independent School District ina local bank account to be expanded for the purposes set forth inArticle 2827. V.C.S. Inasmuch as the **Texas** School for the Deaf is an independent school district, itis **your** opinion that,the general laws governing independent school districts should 

### govern and not the appropriations act (H.B. 426,, **Acts** 52nd Leg., 1951), which estiblishes a Board Local Fund tobe expended as provided inthe act. Your request for an opinion states:
“Under the provisions of Senate Bill 393, jurisdiction
over the Texas School 

### forthe Deaf Independent School District was transferred tothe Texas Central Education **Agency.** This school has the status ofan independent school district, and under the provisions of general statutes goverting the opcratlon ofindependent school districts, receives the per capita apportionment onthe scholastics enumerated at the school each year. The Appropriations Act for the 1951-53 biennium does not make specific reference to local funds at the Texas School for the Deaf Independent School District,

“Local funds received by the school each year are (1)
a $10 fee paid by each student each year, (2) revenues derived from sale ofproducts and services inthe vocational shops, (3) profits from vending machines and (4) athletic funds derived from athletic contests. These funds have for the past several years been used by the school to pay the expenses of organized,athletic contests and to provide special services to the childrenHon. J. W. Edgar, page 2 (V-1256)

which include such things as rental ofmotion picture films, other entertainment, cleaning and pressing, shoe repair and other similar services. Itis the practice in independent school districts throughoutthe state to use funds derived from similar sources inabout the same way that the Texas School for the Deaf Independent School District has used these funds during prior years.
“Does the Texas Central Education Agency have authority under the general statutes governing independent school districts in Texas to establish a local maintenance account inthe depository bank for the Texas School for the Deaf Independent School District? If the answer to the above question is inthe affirmative, does the Texas Central Education Agency have the authority to expend local funds deposited inthe local maintenance account ofthe Texas School for the Deaf Independent School District for the purposes enumerated above 7”

Senate Bill 393, Acts 52nd Leg., 1951, ch. 175, p. 296, which transferred exclusive jurisdiction and control ofthe State School for the Deaf to the Texas Central Education Agency, provides inpart:

“The c~htral education agency shall have exclusive jurisd,i:tion and contT01 over the Sia,te School for the Deaf; a.u,d. it shall be the duty of~thsC,ommissioner of Ednc~t.Borrto a~ppointa supesir;‘;e?kent for that school subject tc,a.pp+o~%l ofthe State board of Education. Suchjuri:zdictinn shall extend lc +Ibsphysical assets of sa,idschool and a,ppropria?.ioni made for the benefit ofthe school shall be adm,ieistered and expended by the education agency.” Immediately following the appropriation tothe Texas / School for the Deaf, Article IIofHouse Bill 426, Acts 52nd Leg.,

1951 (general appropriation bill), provides:

“All funds herein appropriated to the Texas School for the Deaf for the biennium ending August 31, 1953, shall be expended by the Central Education Agency under authority of **Senate** Bill No, 393, Acts ofthe Fifty-second Legislature, 1951, in accordance with the provisions, restrictions and l,imitations provided inthis Article.”Hon. J. W. Edgar, page 3 (V-1256)

Article IIofHouse Bill 426 further provides as follows:

“Sec. 10. There is hereby established a Board LocaI Fund. All unencumbered balances remaining in all local funds of.the several institutions under the jurisdiction ofthe Board [Board for State Hospitals and Special Schools] on September 1, 1951. are hereby appropriated to the Board Local Fund, except funds deposited to the credit ofthe Independent School Districts of such institutions, and funds held in Trust

‘for patients or students. All future receipts from ,pay patient collections, from the sales ofmerchandise inthe small stores operated by the several institutions, and from all other sources not specifically appropriated for other purposesin this Article,
are hereby appropriated to,the Board Local Fund. No money shall ,beexpended from the Board Local Fund except as provided inthis Article.”

Prior tothe enactment ofSenate Bill 393, jurisdiction over the School for the Deaf was vested inthe Board for Texas State Hospitals and Special Schools. Arts. 3174a-3174b, V.C.S.

Senate Bill 393 transferred exclusive jurisdiction and control ofthe Texas School for the Deaf to the Central Education Agency as of May 16, 1951. The,paragraph following the line items ofthe appropriation for the Deaf School reiterates that control andjurisdiction over the School is inthe Central Education Agency. We do not think Section 10ofArticle IIofHouse Bill 426 applies to the Texas School for the Deaf. Itstates: “All unencumbered balances remaining inall local funds ofthe several institutions under thejurisdiction ofthe Board onSeptember 1, 1951, are hereby appropriated to the **Board** Local r’und
,‘Z”-(Emphasis added.) This is not an attempt to transfer the Deaf School to thejurisdiction ofthe Board for Texas State Hospitals and Special Schools, but merely a provision relating to institutions that are under its control. Therefore, Section 10has no application to the facts presented tous, and the Central Education Agency has authority to establish a local maintenance account.

Yotir second quG@ipn relates to.tie authority ofthe Central Education Agency to‘expend local school funds for organized athletic contests and to provide special services such
as the rental of motion picture films, other entertainment, clea,ning and pressing, shoe repair, and similar services. These local funds are derived from tuition, revenue from theHon. J.W. Edgar, page 4 (V-1256)

sale of products and services. profits from vending machines, and from admissions to athletic contests. The general appropriation bill does not control the expenditure ofmoneys which
are inthe local fund, since those funds are not derived through any appropriation in House Bill 426.

The State Board of Education has, under the authority ofArticle 2666, V.C.S., created an independent school district at the Texas School for the Deaf. Therefore, the expenditure oflocal school funds is governed by the law pertaining to independent districts so far as applicable. Article 2667, V.C.S.

Article 2827, V.C.S., the statute pertaining to the expenditure oflocal funds ofindependent school districts, provides in part as follows:

“2. Local school funds from district taxes, tuition fees ofpupils not entitled tofree tuition and other local sources may be used for the purposes enumerated for State and county funds and for purchasing appliances and supplies, for the payment of insurance premiums, janitors and other employees, for buying school sites, buying, building and repairing and renting school houses, andfor other purposes necessary inthe conduct ofthe public schools tobe determined by the Board ofTrustees, the accounts and vouchers for county districts tobe approved by the county superintendent; provided, that when the State available school fund in any city or district is sufficient to maintain the schaols thereof inany year for at least eight months, and leave a surplus, such surplus may be expended for the purposes mentioned herein. a
Under this section the trustees are vest.ed with discretion in expending these funds. Under Attorney General’s Opinion O-7183 (1946), it is clear that the funds **may** be expended for recreational activities deemed necessziry by the trustee:;. We think it is equally clear that the trustees may expend these funds for ordinary services whicht he trustees deem necessary, Since the Texas School for the Deaf provides clothing and shoes for scholastics when necessary, itis only reasonable that the Central Education Agency may, within its discretion, spend part ofthis fund for main.tenance ofthese articles ofwearing apparel.
SUMMARY

The Texas Central Education Agency is authorized to establish a.local maintenance account for the. . .



### Hon. J.W. Edgar, page 5 (v-1256)

Texas Schoolfor the,DeafIndependentSchoolDistrict. S.B. 393, Acts 52ndLeg:, 1951,,ch. 175.p* 296; Arts. 2666, 2667, and2827, V.C.S. Fundsin’ this account maybeexpendedfor recreational ac

### tivities, maintenance ofwearing apparel, and,sim,- ilar services deemed necegsaiy totheproper cotiductoftheschool. Art. 2021, V.C.S.
Yours very truly,
APPROVED:
Bruce Allen CountyAffairs Division PkICE DANIEL Attorney General

Everett 

### Hutchinson Executive Assistant
Price Daniel Attorney General
BW:b Aesistants

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