Untitled Texas Attorney General Opinion ( 1959 )

I . THEATI-ORNEY GENERAL OPTEXA~ November 16, 1959 Honorable Sam 0. Kimberlin, Jr. Deputy Commissioner Department of Banking Austin 14, Texas Opinion No. W-725 Re: Authority of the Finance Commission to invest funds In United States Government Dear Mr. Kimberlin: obligations. Your request for an opinion from this office reads as follows: "As you know all expenses of the Banking Department of Texas'are paid out of fees, penalties, and,revenues collected by the De- partment under the Banking Department Self Support and Administration,Act (Acts 1951, 52nd Legislature, page 233, Chapter 139). From timeto time funds are accumulated and held for some period of time before they are needed to pay the expenses of the operation of the Department. Please advise us whether or not, in your opinion, the Finance Commis- sion of Texas could authoriie the investment of such funds in U. S. Government Bonds or other obligations during such periods when such funds are idle and notneeded for the operation of the Department." The powers of the Finance Commission with reference to the disposition and control of public monies involved in yourrequest are governed by the provisions of Article 342-112, Vernon's Civil Statutes, which provide as follows: "The Commissioner shall, from time to time as directed by the Finance Commission, submlt to such Commission a full and complete report of the receipts and expenditures of the Banking Department and the Finance Commission may from . Honorable Sam 0. Kimberlin, Jr., Page 2 (Ww-725) time to time examine the financial records of the Banking Department or cause them to be exam- ined. In addition, the Banking Department shall be audited from time to time, by the State Audi- tor in the same manner as other State Departments, and the actual costs of such audits shall be paid to the State Auditor from the funds of the Banking Department. Fees, penalties aricrrevenues collected by the Banking Department from every source whatso- ever shall be retained and held by said Department, and no part of such fees, penalties and revenues shall ever be paid into the General Revenue Fund of this State. All expenses incurred by the Bank- ing Department shall be paid only from such fees, penalties and revenues, and no such expense shall ever be a charge against the funds of this State. The Finance Commission shall adopt, and from time to time amend, budgets which shall direct the purposes, and prescribe the amounts, for which the fees, penalties and revenues of the Ranking Department shall be expended; and the Finance Com- mission shall, as of December 31, 1951, and annually thereafter, report to the Governor of the State of Texas the receipts and disbursements of the Banking Department for each calendar year; and shall within the first sixty (60) days of each succeeding Regu- lar Session of the Legislature make a report to the appropriate committees of the House and Senate charged with considering legislation pertaining to banking." It is noted that such funds are required to be retained and held by the Banking Department. The Banking Department is further authorized to expend such funds for the payment of ex- penses of the Department. The Legislature has not specifically authorized the Finance Commission to invest such funds. When- ever the Legislature has authorized a State agency to invest public monies, it is stated the securities into which such mon- ies may be invested; e.g., Section 9 of Article 678m, Vernon's Civil Statutes, authorizing the State Building Commission to invest monies in certain United States Government obligations. In the absence of such statutory authorization, it is our opinion that the Finance Commission does not have authori- ty to invest public monies under its control. Such investment would not constitute payment of any expense of the Banking De- partment and would not constitute "retentioI1'bythe Department of the public funds since such an investment would require an expenditure of the funds. Honorable Sam 0. Kimberlin, Jr., Page 3 (w-725) SUMMARY The Finance Commission of Texas does not have authority to invest public monies under its control in United States Government obligations. Yours very truly, WILL WILSON Attorney General of Texas John Reeves JR:mfh APPROVED: OPINION COMMITTEE Gordan Cass, Chairman Howard Mays Wallace Finfrock Morgan Nesbitt REVIEWEDFORTHE ATTORNEY GENERAL BY: W. V. Geppert..