Untitled Texas Attorney General Opinion

Mr. George L. Allen, Chairman Board of Directors Texas Southern University Houston, Texas Opinion NO. C- 385 Re: Authord.tyof Texas Southern University to enter into an agreement to purchase proper- Dear Mr. Allen: ty in 1966. You have requested our opinion on the following question: "Can the University negotiate an agreement with the owners of the property immediately; establish the purchase price; and agree to enter into contract for purchase of the said property in February of 1966, with the necessary contingencies that such funds will be available and conditions of possession?" In Attorney General's Opinion NW-1213 (1961), it is stated: "Article 2643d authorizes Texas Southern Uni- versity to construct and otherwise acquire and equip buildings and structures which the Board of Directors deems proper or suitable for the students and faculty of the University. Section 3 of this statute provides that land owned by the State of Texas or by the University may be used as building sites and grounds 'for such buildings constructed or acquired under this Act; provided that said Board is hereby authorized to acquire by gift, or by pur- chase out of funds derived from the sale of said bonds, the said building sites and grounds.' "Article 2909c authorizes the institutions of higher learning, including Texas Southern Univer- sity, to construct, acquire, improve and equip build- ings and other structures and additions ~to existing buildings and'other structures 'and acquire land for said additions, buildings and other structures'if deemed appropriate by said governing body.' -1821- Mr. George L. Allen, page 2 (C- 385) "It is our opinion that Senate'Bill No. 296 does not affect or limit the powers grant- ed by Articles 2643d ahd 2gOgc~. Hdwever, it is also our opinion that the.land which the University is authorized'to acquire under these statutes, like 'Senate ~111 296, is limit- ed to the sites and.grounds for the buildings and structures constructed or acquired under the provisions of such statutes respectively." Since.the Texas Southern University has the authority to acquire land for additional campus space, the question presented concerns whether such a proposed agreement would vio- late the provisions of Section 49 of Article III of the Consti- tution of Texas. Section 49 of Article III of the Constitution of Texas provides: "No debt shall be created by or on behalf of the State, except . . .'I(l&caption not' applicable). In Attorney General's Opinion C-134 (1963), it was held that proposed contracts payable out of future revenues are in- valid, citing Section 49 of ArticlesIII of the Constitution of v. Marrs, 114 Tex. 11, 262 S.W. j; In view of the foregoing, you are advised that you are not authorized to obligate future revenues of Texas Southern University since such obligation would create a debt in violation of Section 49 of Article III of the Constitutionof Texas. Since the proposed agreement would attempt to obligate the University to,,payfor property out of future revenues, such proposed agreement is invalid. SUMMARY Section 49 of Article III of the Consti- tution of Texas prohibits the creation of a debt by the State, and any agr,ee- ment attempting to obligate future revenues -1822- . . Mr. George L. Allen, page 3 (C-385) of Texas Southern University.would be void. Yours very truly, WAGGONER CARR Attorney General John Reeves JR:sj:cg:ms APPROVED: OPINION COMMITTEE W..:V.Geppert, Chairman Larry Craddock Al10 Crow jack Goodman .Malcolm L. Quick APPROVED FOR THE ATTORNEY GENERAL By: Stanton Stone -1823-