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Honorable L.T. Des Champs Opinion No. JM-729
Llano County Attorney
~lano County Courthouse lb: Whether a commissioners court
Llano, Texas 78643 may make improvements on county
school land from proceeds received
from the lease of that land
Dear Mr. Des Champs:
You ask whether the Commissioners Court of Llano County has
authority to make improvements on county school land from proceeds
received from the lease of that land.
Article VII, section 6, of the Texas Constitution limits the
manner in which the proceeds from "county school lands" may be
invested by a commissioners court, as follows:
Each county may sell or dispose of its lands in
whole or in part, in manner to be provided by the
Commissioners' Court of the county. . . . Said
lands, and the proceeds thereof, when sold, shall
be held by said counties alone as a trust for the
benefit of public schools therein; said proceeds
to be invested in bonds of the United States, the
State of Texas, or counties in said State, or in
such other securities, and under such restrictions
as may be prescribed by law. . . . (Emphasis
added).
Section 17.82 of the Texas Education Code states:
(b) The proceeds of any such sale shall be
invested in bonds of the United States; the State
of Texas; counties of the state; independent or
ccsmaon school districts; road precinct, drainage,
irrigation, navigation, and levee districts in the
state; or incorporated cities or towns; or in
interesr-bearing bank time deposits with the bank
having been designated the deposirory for that
county under the terms and conditions of the
depository contract. These bonds and deposits
shall be held by the county in trust for the
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Honorable L.T. Des Champs - Page 2 (JM-729) -.
benefit of its public free schools, and only
interest thereon may be used and expended annually.
Section 17.83 of the Texas Education Code addresses the manner in
which lease proceeds from county school lands shall be handled, as
follows:
Besides other available school funds provided
by law, rental and lease proceeds from lands
previously granted by the state to any county for
educational purposes shall be appropriated by the
commissioners court of the county in the same
manner legally prescribed for the appropriation of
interest on bonds purchased with the proceeds from
sale of such lands. Likewise, proceeds from the
sale of timber on these lands shall be invested by
the commissioners court as prescribed in Section
17.82(b) of this code. None of the rental, lease,
or timber proceeds shall be applied by the commis-
sioners court to any purpose other than those
prescribed in this code. (Emphasis added).
Attorney General Opinion O-2111 (1940) addresses the question of
investment of proceeds from lease of county school lands under then -_
article 2825, V.T.C.S., now section 17.83 of the Texas Education Code
(identical as to appropriation of rental and lease proceeds by
commissioners court), as follows:
Thus, we observe Article 2825, supra. in plain
and unambiguous language. provides in what manner
the income from the lease of school lands shall be
used. It 'shall be appropriated by the commis-
sioners courts of said counties in the same manner
as is provided by law for the appropriation of the
interest on bonds purchased with the proceeds of
the sale of such lands.' Article 7, Section 6 of
the Constitution, supra. stipulates that the
interest derived from the investment of the
proceeds of a sale shall be placed in, and consti-
tute, the available school fund. Therefore, the
proceeds from any renting or leasing of the school
lands must also be placed in that fund. By its
terms Article 2825, supra, makes any other dis-
position unlawful.
Consequently, we must find, and you are re-
spectfully advised, that the commissioners' court
of Polk County cannot build a house or make other
improvements upon counry owned school land with
funds derived from the rental or lease of said ?
lands.
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Honorable L.T. Des Champs - Page 3 (JM-729)
We are unable to find any authority for the commissioners court
to make improvements on coynty school lands from proceeds received
from the lease of that land.
SUMMARY
The Commissioners Court of Llano County does
not have the authority to make improvements on
county school land with proceeds received from
lease of that land. None of the lease proceeds
shall be applied to any purpose other than that
which is authorized in section 17.83 of the Texas
Education Code. Tex. Const. art. VII, 56; Educ.
Code 517.83; Attorney General Opinion O-2111
(1940).
JIM MATTOK
Attorney General of Texas
MART KELLER
Executive Assistant Attorney General
JUDGE ZOLLIE STEAKLEY
Special Assistant Attorney General
RICK GILPIN
Chairman, Opinion Committee
Prepared by Tom G. Davis
Assistant Attorney General
1. We note that section 11.11(c) of the Tax Code provides for
the payment of taxes on county school land as follows:
Agricultural or grazing land owned by a county for the
benefit of public schools under Article VII, Section 6, of
the Texas Constitution is taxable for all purposes. The
county shall pay the tares on the land from the revenue
derived from the land. If revenue from the land is in-
sufficient to pay the taxes, the county shall pay the
balance from the county general fund.
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