Untitled Texas Attorney General Opinion

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