Untitled Texas Attorney General Opinion

EATTORNEY GENERAL. Q,F TEXAS AcwrrIN 11. -n3mL4s PRICE DANIEL j ATTORNEY GENERAL June 24, 1949 Hon. William L. Kerr, President Board of Regents State Teachers Colleges Midland, Texas Opinion No. V-848. Re: The legality of using funds available under the College Building Amendment to con- struct and equip buildings which will be revenue pro- ducing. Dear 6ir: We quote fre.m:Yeur request for opinier as follows: “You have heretofore advised our Board of procedural matters under the Constitutional Amendment Building Program. (Tex. Const. Art. VII, Sec. 17; A, G, Opinion Nos, V-798, V- 799.) We now m&e further request and impase upon you for addition&l opinion as to the use we mry melce Of the 8vdlable money, “‘Seven colleges are wnder the jurisdic- tion of our Board. The needs of the respective schools are varying. Far instmce, the meat pressing need in the greater number of our saheob is for class roem buildings, but as to one or perhaps two, the urgent need ia for’ dir- ing halls er dormitor,ies or combination of the twe. As M one or perhapa 6rvm. the pressing need is for nmhpsiums. In other werde, as m some of the schools, the need is for buildings which would be self-sustaiming in part and the t~pc of building for which revenue bonds have been issued in the past, under the Skiles Act. (Ax& 26Mcc-A, V.C.S.) . HDL William L. Kerr, Page 2 (V-84g) “‘FOP the use of our Board in detommia- ing the type of buildings to be permitted tier the Buildin(t Amendment, will you please &- vime: “‘May w.ar Board of Regents expend funds available under the BuildSag AnePsl- ment fom: &km. Willhm L. Kerr, Pale 3 (V-84s) or note4 iseued for the purpose of’acquiring, ooaotructiag and ini- tially equipping s o a buildings or othar permanent improvements at said respective institutions.” It neither describe4 n0r fines any other limitations as to the types ‘of building4 or 0-r permbnent improvements which may be wquir,ed or canrrtr.ucted. Therefore, the bonds or notes may be i44ued to secure fund4 f,er ,the ~acquisi- tion, construction and the initial equiyping of any tfnt of building at the remp4ctive iw3Mulrioms whiob the pverning board properly ikema recea4rry in eur#9hg wt tke PunctiEioaaof ita eQuoatiana1 in&it&&m, iacldizkg tAxtwo typea of buildings whick way be eor- structsd under tha Asnerisian4 of Articles 260%~ 4r 2654-1, V.C.S. However, Article 2603~ provides Get the conartruc- tion or ecquisition of the improvemea~ therein authoriaed shall be “without cost to the State of Texas,” and that any bonds issued thereunder “4hall not be an indebtedness of th4 6tak Qf Tenas, but shall be payable solely from the ,revenue4 Q be derived frem the operation of 4rid buildie;li4 O‘* AAm, ir Article 2&4-f, it i4, po- vided that the acqui4iti0is and 00M%kpue$i@n of ttVe im@rovansmto provided for therein ‘“4hall bc llrlc without cost to the State of Texas, ad no bonds ia4ued fez 41&h iegfovemeats r&&l oonsti- tutc a debt of the State ef Texas in mny mann*r whatpoevor, but &all be a charge only rpinst those ~evanuo4 gre,%ieaAAy pledged for their p8yment.oa A, 0, Opimimu M~4kd-tZT3, O-1694, O-1707, O-()36, O-6993, by prior. ddda*r&~ns. Thrse statute4 rould apt preclude the i44uucs mf baa&m or note4 under Section 17 of Article VII. H0aever, if revenue bonds were BP are 00 be issued . u&er Article 26a3c or Article 2C54c-1, then these statute4 would _ q@y to such reverie bWdr aid %luaUSI ol t#ibbprocreds. &i Other ..:: ,. WM-SLS~tbti bu~t##ag~ w+mqw-e~$s tm&# We Simwyal either by t&d ,&ssuance of &a*& ,a*,,M&5* u&&k @#sXWSi 1,7 af &ptic.As VII or ,&t&4 issw8 oPs3iwMMkc bmula Mk&*r AH&tile 26&k or AWide &&J6c-1, bitt @k-hl?p kw*. It io cA.ew, tbesafwe, that tiw prwcedr from tzte noJc*,gr bon& ieswd uader Scetiea 17 & Ahiclc VII, Gorstitu- ‘,.., ion df: Texas, o&a Lo wm~d ncitke~ to supplement fund4 0bttined . ., bp, Ne ia.sqmce 08 pewsme baa&v *dim Article 2603~ o,r Article UHO-1, nor te p*y t&e d*netiuction o,r acqui4ition costs 0f the ,~$@p@mvmmentscevcr~ad by such revezIue bonde, nor te ply my #& of the intere4t *a and ppineipaA 0f ouch b0ikd4. We ares unabble te an4wer your second question cnt- rpzicplly because it involves fact considerations. Section 17 I Ho& William L, Kerr, Page 4 (V-848) . ‘, provides, ae st&?d, that the mwey realiesd from the sale af the bonds, shall be spent: %ar the purpose of q2.quirhg, con,?, structingl, and initiPdly equipping buildings “; oh other permanent improvements a O .‘* .1, As staked by the Court af Civil &@erls: “The primary purpose of the amen& QleQt***r86~.* fw the pPrpeee of fiwrc- ing (8tr ~~ns~paction Pnd~Jequipment of build- ings sad akbiir pwinament improvements , a OR Whit%aide v* Brvwn, 214 S.W,2d g44 (19483, ,er;ror refused). The amendmrnt wits sefferred to by #at Court as it was ad i6 c csnrnody denominated, the wCoLlepe 8J-j Amend- ment, 84 The cap@i:tm on S,J& 4 (tit amendment as prapored by the Lagislatawe) &&es that &he amendment provided: “A meehod~of pqtmen$ for the WP- strai&h~ and eepment of buildings ax ~rnuraot imprtwemebts a e .’ Coaretschq the histwy af the amendmInt it ir our intarpreta%on tbaa it was intended by tie Legislature and the peo- p&e to provide p&marfPy for the construction or acquisitian af building& a& the construction or acquisititin of other permraent improvements. There is no provision in the amendment for the repair @f e&sting buildings out of such funds. On the contrary, the amendment says dthaa &he participating colleges (except in case of aalamity) ‘“shall not e e O receive any other state funds fer the acqd&ng or constructing of btihW.gs or ether. permaaent im- provemex& L/s qyD It will be noted also that the ame&rne& uaas the word ‘%~@%Cally”in maying ‘for the purpose of acquiria#.i, ceast*ti buildings or other permaaent impsova- lyw so rPsled further indic8tec trhrt the people and the Legislature coniemplwkd the canntrwtien or AC- quisition of such bui%diBfls or cuber permaaent imppevemeatti a@ might requite “inB&& equipme&@ That pwt ot the am- Hon. William L. Kerr, Page 5 (V-B48) calling for equipment" certainly docs not contemplate re- “initial pairs. ““InitiJ 0qdpa0at"'ixdcata6 equipmetrt fer the fiirt t+e, p mr4!pdP6W U%d 6iSih Op4~4tiO~6 m8y ba paid for out ef Gelleg* AmePdmoet money, then the L*eIaturr is pro- hibited index the p6evS6ioa quoted above freti B aay ap#ro- priation for such ~raS0ns during the effective life of’-i3i; amend- ment. So a colle#e which cakuhted that it would rsceive 6 million dollars under the amendment a not expend 6 million dollars for the construction of buildings and initially equippiv them. It would have to save back enough money to rep6ir and remodel its laboratories, clrrclare08~6 ) et cet8ta. for *a whoAa effective life of the amerdmont -- ha-0 it c& SW receive snf m0ney from the generd revewe for 6ucL. items &axing th8t period. The paople ud W k@slatuxe irtanded ne such result, They %s- *$ @he -:6M be invert& in build- iRg6 8nd similm ~-stimplP- ate at the collsges which were se bully YIlJd by W &tar i&e hkr war, mad which will be needed during the Jfec4kve lMe od the uaerdment. It called for capitsi investment of the meaey --not the wm 0f it fer maintenance, Jteratioru, and repairs. Ths Bmrd of Rep&r of mate TeackaT6 CeIle~ea may *enid it6 Ce836t%tv&onrl U : . Ika. William L. Ke~a+~Page 6 (V-648) u?aet lbiadiq hods (Tmx. Canst. Art, Ilr, aoc. 1 7 &) o@ra l0 cqG6itbaa @lg c~ishwctic+a aad iai- t&J. oquip#og ob a9q tygbdsof building rt the in- at6QIQsopLwbirb +&to Board properly deems net- 91-y h carrying cut the functions of its ia- stf4oticm. tad&g those types of buildings au- tb&z@d to ba constwcted under the provisions of &ttcPms 2603~ or 2654c-1, v,c,s. SW& &ads may net, however, be ekscd b swpphanmt f&a &%&xed by the issuance ef rwmaua beads u&m Article 2654c-1 or 2603~~ 01: b par pay papi oi t&e cos+rhctism op1 lcq&sPWa coBbs ef the improviments cev- axed by stxch rove-, bowls, or to pay opy past 86 tbm pPbaGip& ubd fnltotest Paquiramen*s of such PQVmaambox&. A 6, OpworAs V-796, v-799.