THICA-ITORNEY GENERAL
OF TEXAS
HonorableAlbert J. Hutson,Jr.
Oounty Attorney
Trinitycounty
Groveton,Texas
Dear Sirr Opinion moo.o+-fg6
RO: The ca~~~i8sloners'
court
cannot legallyinvest the
permanentschool fund of a
oo?ratyin such bonds ae
schoolboards are authorized
to issue under Article 2802 R-1,
Vernon% AnnotatedCivil
statutes.
Your recent request for an opinionof this DepartBlent,
upon the
questionas is herein stated has been received.
we quote fraa your letter aB follows:
%y the Ccmuiesloiera'Court investthe pemeamit eahool
fund of the county, (that is, the moneys receivedfor the sale
of public school land given to the county)in such bcuds as
sahoolboards are authorizedto lseueunder tit,.2802 R-1,
B. c. S.?
.iirt.2824, R. C. S. authorizesthe Cmmisa~oners' Court
to investsuch fmds In bonds of the State, of tim County,
roaddistricts etc, but all these bonds are bonds votedby
the people and creatinga debt Ihat all the propertyof the
polltlcalsubdivisionvoting said bond Is back of, while the
bonds authorizedby Art. 2802 E-1 are bonds that say be issued
by the schoolboard and are expresslynot an lndebtednese
createdagainst the vbole districtbut only against the parti-
cala- bullding,stadium,etc.
"It is my opinion that such bonds as are authorized
by Art. 2&Z E-l are not bonds that Art. 2824 authorizes
the pemanent school fund to be investedIn, and that,
therefore,a Oaaissioners' Court oamot legallyinvest their
pe-ent school funds in such bonds as Art. 2802 R-1
aut&orizes.w
'Em pemsnent school fund ia providedfor in Sectloas 2 aad 6
of Texss. The above mentionedSeati&m
of Article VII of the Ccpetitutlorr
of the Constitutionread ka follovs:
HonorableAlbert J. Hutson, Jr., Page 2 (O-2796)
Seotlou 2. “All fImA.9,lands and other property
heretoforeset apart and appropriatedfor thesupportof
pub110 eohools;all the altamats motions of land reseneA
by the State out of the ~rants hsretoforemaAs or that
may hem titer be made to rall.roaAmor other oorpara.tlonr
of
soy uature whatsoeverione-halfof the pub110 Aaaaln of the
State; and all mm ofmoney tibatmy oune to the State
fram the sale of any portion of the saum, shall constitute
a perpetualpublio school fund."
aaction 4. "All lands heretofc're or hereaftergranted
to the soverslaountfeeof thsn State for educational
purposes,are of rigbt the propertyof said countiesres-
pectivelyto which they yer+ granted,ad fltle %eretc
la vested in said countlee,ad no sdveraep0setf.m'I;" linfta-
tion ahall ever be wailable ag&fnst %e %tle or"any oomty.
Bach countymay sell or diupoee of fL,sland in whole or in pert
In manner to be providedby the cmtisfomra' court of the county.
Aotualsettlem residingon said Lmds shall be protectedin the
prior rights of ymchaefng ':1esame to tie axttnt of the52 settle-
ment, not to exceed 160 a,~%, at 3~6~prize fIxed by said court,
which price shall not Incluiliie
tie mix of existing SmprcvTnents
made thereonby such ee%lers. Said la&a, ati the proceeds
thereofwhm sold, shall be h?ld by said countiesalone as a
+M.uatfor the benefit of pzbl!,sx&.oo.l~tieref?l;
eafd prxeede
to be %uvestid31 bonds of +a% Baited States, the S+ate of Texas,
or countiesor in said S*sta, or in acch o+&er securitiesaud
under 6uch restrictionsas may It pr3s;ribedby law; antithe
couuty shall be reapom:bk ;Lp c al.*lwrar~bner.t.3;
the iaterest
thereonand other revenue, except the pr%nu:palS~ILU be avail-
able fu~&.~
The only etatute that we have bee;.able k fiud wherein the
Legislaturehas said hov and vhere t&s mmey shall be imeated is
Article 2824 of Vernon'sAxotsted Civil Statutea,vh?ch reada as
follows:
"Each corurtyxmy sell or diepose of +fe landa graated to it
for educatlonaipurposes lu sa& manner aa may be'@rovldedby tha
commlsafoners'court o? such county9and the prooeedsof say
such sale shall be inveeted in bonds of the United States, the
Stats of Texas, the bonde of the comt9=+ of the Stats, and the
lndependentor camon sckoold~atricts,rosd precincta,drairrrrge,
Irrigation,navl&&m aad levydistrfcts iu this State, aad the
bonds of lsmoqorated cities And towns, and held by auoh osunQ
alone as a trust fos the benefit of public free schools therein,
only the interestthereon to be used and txpmded azmually."
Honorable Albert J. Hutaou, Jr., Pa@ 3 (O-2796)
Artlole 2802 E-l, Vernoa’s Amotated Civil Statutes, smonS
o~therthings rpeoifioallyproriAerthat%
*(I* l Iloruoh obligationshall ever be a debt of any
rohool Airtrlotor city, but rolely a ohargo upon the prop-
erty ao moumbered, anA ohallaever be reokoned in deter-
nlnlng the power of aay lruoh eohool Al&riot or olty, to
lame bonds for any other purpose authorizedby lnw; provided
that noelectionfor the issuanoeof the bonds herein authorized
shall be necessary,but the same may be authorizedby majoriQ
vote of the board of trusteesof such independentschool district
or the governfngbody of such cfty. * l *
"The holder hereof shall never ha761 the right to demand
payment of thla obligationout cf any fund@ raised or to be
raised by taxation.l l l Iii0
land upon which is altuated
any of the schml impmvements other than ae describedshall
ever be nubject to the payment of any indebtednesscreated
hereunder,nor shall any encumbarmcs ever be executedthereon.
l l i’
aie above mentionedpwvisions of the Coustitutionand Article
2624, aupra, specificallyset forth the kind of bonds that may be bought
piti funds obtainedfran the sale of la~6 granted for educationalpur-
poses or any other portionof '%a permanentschool funds, and said fuuda
shall be invested in no otPlerponds except those specificallynamed and
contemplatedby the Ieglslatursas above mentioned. The bonds authorized
to be isauedby Article 2802 E-1, aupra, are not bonds named or conterm-
plated by the provislonsof the CouefFtntlonor 6tat~t.e above mentioned.
Therefore,you are respectfillya&laed that it ia the opiulon of this
Deparbuentthat the caumissloner6'co-et oaonot legaally invest t&e per-
manent school fund of the county in such bonds as school boards are
authorizedto lame under Article 2802 E-l, supra.
!Pruatlngthat the forsgol;lg
f%ly enswere your inquiry,tieme
APPROVQ)OCT 9, lf3kO Yours very truly
/s/Gerald c. Manu
A’PICZWWGEfCEBALOF TEXAS A'l'IWKZTGEXERALOF !ITXAS
By /e/ Ardell Wflliarcs
Ardell William
Assistant
APPROVED OPIlUOH cm BY /s/ BUB CHADMAE