c 

OMNEY GENE-I. 

EXRS 

August 27, 1951 

Hon. J. W. Edgar Opinion No. V-1256 

Commissioner of Education 

Texas Education Agency Re: Authority of the Central EduAustin, Texas cation Agency to place Iocal 

funds of the Texas Scboolfor 

the Deaf 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 of the Texas 

School for the Deaf Independent School District in a local bank 

account to be expanded for the purposes set forth in Article 2827. 

V.C.S. Inasmuch as the Texas School for the Deaf is an independent school district, it is 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 to be expended as provided in the act. 

Your request for an opinion states: 

“Under the provisions of Senate Bill 393, jurisdiction 

over the Texas School for the Deaf Independent School 

District was transferred to the Texas Central Education Agency. This school has the status of an independent school district, and under the provisions of general 

statutes goverting the opcratlon of independent school 

districts, receives the per capita apportionment on the 

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 of products and services in the 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 children 
Hon. J. W. Edgar, page 2 (V-1256) 

which include such things as rental of motion picture films, other entertainment, cleaning and pressing, shoe repair and other similar services. It is 

the practice in independent school districts throughout the state to use funds derived from similar sources 

in about 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 in the depository bank for the Texas 

School for the Deaf Independent School District? If 

the answer to the above question is in the affirmative, 

does the Texas Central Education Agency have the 

authority to expend local funds deposited in the local 

maintenance account of the 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 of the State 

School for the Deaf to the Texas Central Education Agency, provides in part: 

“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 ~ths C,ommissioner of Ednc~t.Borr to a~ppoint a supesir;‘;e?kent for 

that school subject tc, a.pp+o~%l of the State board of 

Education. Such juri:zdictinn shall extend lc +Ibs physical assets of sa,id school and a,ppropria?.ioni made 

for the benefit of the school shall be adm,ieistered 

and expended by the education agency.” 

Immediately following the appropriation to the Texas 

/ School for the Deaf, Article II of House 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 of the Fifty-second Legislature, 1951, in accordance with the provisions, restrictions and l,imitations provided in this Article.” 
Hon. J. W. Edgar, page 3 (V-1256) 

Article II of House 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 of the 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 of the 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 of merchandise in the 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 ,be expended from the Board Local 

Fund except as provided in this Article.” 

Prior to the enactment of Senate Bill 393, jurisdiction over the School for the Deaf was vested in the Board for 

Texas State Hospitals and Special Schools. Arts. 3174a-3174b, 

V.C.S. 

Senate Bill 393 transferred exclusive jurisdiction 

and control of the Texas School for the Deaf to the Central 

Education Agency as of May 16, 1951. The, paragraph following 

the line items of the appropriation for the Deaf School reiterates that control and jurisdiction over the School is in the Central Education Agency. We do not think Section 10 of Article 

II of House Bill 426 applies to the Texas School for the Deaf. 

It states: “All unencumbered balances remaining in all local 

funds of the several institutions under the jurisdiction of the 

Board on September 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 the jurisdiction of the 

Board for Texas State Hospitals and Special Schools, but merely a provision relating to institutions that are under its control. Therefore, Section 10 has no application to the facts presented to us, and the Central Education Agency has authority 

to establish a local maintenance account. 

Yotir second quG@ipn relates to .tie authority of the 

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 the 
Hon. 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 of moneys which 

are in the local fund, since those funds are not derived through 

any appropriation in House Bill 426. 

The State Board of Education has, under the authority of Article 2666, V.C.S., created an independent school district at the Texas School for the Deaf. Therefore, the expenditure of local 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 of local funds of independent school districts, provides 

in part as follows: 

“2. Local school funds from district taxes, 

tuition fees of pupils not entitled to free 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, and for other purposes 

necessary in the conduct of the public schools to be 

determined by the Board of Trustees, the accounts 

and vouchers for county districts to be 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 in any 

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, it is only reasonable that the Central 

Education Agency may, within its discretion, spend part of this 

fund for main.tenance of these articles of wearing 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 School for the ,Deaf Independent School District. S.B. 393, Acts 52nd Leg:, 1951,,ch. 175. p* 

296; Arts. 2666, 2667, and 2827, V.C.S. Funds in’ 

this account may be expended for recreational activities, maintenance of wearing apparel, and ,sim,- 

ilar services deemed necegsaiy to the proper cotiduct of the school. Art. 2021, V.C.S. 

Yours very truly, 

APPROVED: 

Bruce Allen 

County Affairs Division 

PkICE DANIEL 

Attorney General 

Everett Hutchinson 

Executive Assistant 

Price Daniel 

Attorney General 

BW:b 

Aesistants 

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