The Attorney General of Texas
December 31, 1982
MARK WHITE
Attorney General
Mr. Robert B. Baldwin III Opinion No. MW-594
Supreme Court Building
Chairman
P. 0. BOY 12548
Austin, TX. 76711.2549
Texas State University System Re: Whether institutions of
512/475-2501 Board of Regents higher education may spend ad
Telex 9101674-1367 505 Sam Houston Building valorem tax funds received
Telecopier 5121475.0266 Austin, Texas 78701 under article VII, section 17
for constr"ction projects
1607 Main Si.. Suite 1400
without coordinating board
Dallas. TX. 75201.4709 approval
2141742-6944
Dear Mr. Baldwin:
4624 Alberta Ave., Suite 160
El Paso, TX. 79905.2793
Your letter requesting an Attorney General Opinion states as
9151533-3464 follows:
Article VII, section 17 of the Texas
1220 Dallas Ave., Suite 202
Constit"tion, until its recent repeal, provided
Houston, TX. 77002.6966
7131650.0666 for a state ad valorem tax 'for the purpose of
creating a special fund for the purpose of
acquiring, constructing and initially equipping
606 Broadway, Suite 312 buildings or other permanent improvements at the
Lubbock, TX. 79401.3479
designated institutions of higher learning...'
6061747.5236
The constitutional amendment which repealed
article VII, section 17 provided that ad valorem
4309 N. Tenth, Suite S tax receipts which had been distributed to
McAllen, TX. 76501-1665 eligible universities 'may be expended for the
5121662-4547
purposes provided under prior law or for repair
and renovation of existing permanent
200 Main Plaza. Suite 400 improvements.' A number of universities have
San Antonio, TX. 76205.2797 received ad valorem tax monies which they have not
5121225.4191 yet expended.
An Equal Opportunity/ Education Code section 61.058(8) requires
Affirmative Action Employer institutions of higher education to receive
coordinating board approval for 'all new
construction and repair and rehabilitation of all
buildings and facilities at institutions of higher
education.' We respectfully ask whether a project
proposed by a university must be approved by the
coordinating board if the project is to be
p. 2208
Mr. Robert B. Baldwin III - Page 2 (Mw-594)
financed in its entirety or partially by ad
valorem tax funds.
Article VII, section 17 was repealed at the November 2, 1982
election. Article VIII, section l-e of the Texas Constitution was
amended at the same election to provide as follows:
sec. l-e. No State ad valorem taxes shall
be levied upon any property within this State.
2. All receipts from previously authorized
State ad valorem taxes that are collected on or
after the effective date of the 1982 amendment to
this section shall be deposited to the credit of
the general fund of the county collecting the
taxes and may be expended for county purposes.
Receipts from taxes collected before that date
shall be distributed by the legislature among
institutions eligible to receive distributions
under prior law. Those receipts and receipts
distributed under prior law may be expended for
the purposes provided under prior law or for
repair and renovation of existing permanent
improvements.
The recently enacted amendment authorizes expenditures pursuant
to prior law. Since Article VII, section 17 was "self enacting",
Coordinating Board approval was not required for the construction of
new buildings financed entirely or principally by constitutional tax
funds. We therefore conclude that construction financed by funds
distributed prior to the enactment of Article VIII, section l-e, may
be undertaken without prior Coordinating Board approval.
SUMMARY
Coordinating Board approval is not required
for construction financed by funds distributed prior
to adoption of Artice VII, section l-e.
Attorney General of Texas
JOHN W. FAINTER, JR.
First Assistant Attorney General
RICHARD E. GRAY, III
Executive Assistant Attorney General
p. 2209