OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
Honorable WIlllam L Xerr, Ymnbar
Board of Regsntr, Stntn Tcachera Collegra
That Rhtlonal Bank BuIldIn
Midland, Texaa
Dear Sir: Oplnlca No. O-6661
Tour latter of Apll
on the above ootbienaed questio
aIdsration,
mdsratand tha
in aubatanoa, aa
r0u0w-8; The tade i to om or tha &ate
Taachcra Oollsgea
pqmant or tuitio
tending the oolle
rent pqroll aad efpenaea~
dviaad whether It has tha
f aonry to meet there ourrent
iroumatanooa aubmlttsd.
al Approprlstloa Bill, Aota 1945, 49th
salon, Chapter 377, dt0r making ftemiaed
paymmt of lmohrra’ lalnrlea and for the
nt and malntananos oi the Tcauhera Collegea of
thr Oenrral Protlalona of raid Aota aa iollowar
Wubaeotlon (3). xnatitutIonal Rooelpta. * l l,
. bonorablr’ WIlllam L. Xrrr - Pege 2
and any end all othrr r8orIpta 8h811 bao:ma aad are
h6rrby approprlatrd ea 6eIntrnenoa or oontlngant fund
to be arpendrd uadar the dlraotioa end with tha ap-
prove1 of thr governing board having jurladlotlon.
Bald governing board8 are euthorlaed to uao out of
tha proorda OS lald rroripta end funda, In aooord-
ano8 with the provIsIon of this Aat, auoh lmounta
ea they ahell deem nroraaary for thr aupport mela-
tonanoa, operation end Improve.arnta of aald fnatltu-
tlona. Any belenora remalnlng to the oredlt or any
or raid lnatItutIonal looal fund8 at arid Inatltu-
tlona or In thr Stete Treasury et the on6 of eny rla-
oel year era hrreby rrepproprlated ior the ebovr-mm-
tlonrd purpoaea tar the ruooeeding yoer.*
Thla provlalon, lubaeotlon (3). oonatltutaa an appro-
priation by the Laglalature to the T8eohera Oollagea of the tul-
tlon and other irea. the oollegea may reellea by vlrtua of Artlola
2654b-1, Saotlon 4, Vernon*n Annotated Clvll Statutea, -iran tha
government under the a. I, Bill of RIghtal furtheraora, we are of
the oplnlcm that these iunda, treated by the Leglaleturr aa pub-
110 monlaa, ~111 oonstltuta e part of the looal or InstItutIonal
fund8 oi the rrapeotlvc oollegsr and are aubjsot to dlaburaement
under the dlreotlon and authority of ths Board of Rag~;:o;~r
aupport end meintananoa of Btata Taaohara Collegea.
2647, Beotlon 11, VernOn’a Annotated CIvIl Statutsa.
Artlola 265456, Seotlon 1, Vernon’8 Annotated Civil Sta-
tutea, provider In part aa followar
“The Oovernlng Board of tha * * * (East, North,
Sam Eouaton, Strphaa F. Auatln, Southwast,~ Sul Roaa,
end the Wart Texaa) Teaohera College8 l * +, may rrtain
omtrol rrapeotlvrly OS the following rum8 of monry
oollroted et raoh of raid several inatItutIona ‘In
gerrylng out the funotlona of en lduoatlonal Inatl-
tutlon, luoh aa ruada otillrotsd from student iera oi
all kinda; ohergsa ior uao of room8 and doraltorlea;
rrorlpta rrom nrala, oafs8 and oafrt~riea; f8ra on
deposit rrfumleblr to atudsnta under orrtaln oondl-
tlona; raoelpta rros lohool lthlotlo aotIvltI8r; In-
oomr. from atudsnt publloetlona or other student ao-
tlvltlsa~ rroripta rrom lalo ot publloatlon produota
and mIaoallanroua auppllea and rqulpmcmt~ atudrnta’
~onorabla NIlllam L. Kerr - Paga ]
voluntary dapoalta ot money with raid lohoola for
aafrkarplng: all other feea end loo81 InstltutIoaal
lnooma 0r~a atrlotly locel nature lrlalng out 0r and
by vIrtu8 of the 8duoetIonel aotIvItI8a, or r8a8aroh
or daaonatratlon oerrlrd on by asoh end all of aeld
severe1 sohoola.w
It la olrer, that raid Artlola doer not glvr rxprsaa
authority to th8 Board of Regent8 to plsdg8 loo81 runda whloh
ml be eveIlabl8 la the futur.8, nor doer it give axproaa eu-
thority to the Board to borrow money to meet an rmarganoy. Con-
atruiag 811 aeotlona of Artlolr 26546 tOg8th82, we think the Lag-
ialeture Intenda& only to give loo81 boarda the right to Leap auoh
local or Inatltutlonal runda In a loo81 dapoaltory, Instead qf re-
qulrlng that they be trenamlttad to the Stat8 Traeauryg that th8re
waa no intention to oonfar on auoh board8 thr power to pladgr aaoh
looel runda aa might eoouaulete ln the ruture. Furtbaraor~, the
Stat.8 la not bound by aa egraeaaat of it8 agent to pey Interest,
unleaa there la a law authorizing the agent to enter euoh a fan-
treat. 3b Taxer Jurlaprudanor page 8551 15 Toxaa 72. The ‘:ower
to pledge auoh runda ia, we thbk, one whloh the Board of %genta
would not have In thr abesnoa of lxpr8aaad L8glaletlvr authority.
Pub110 offloaraend governmental and edmlnlatratlva boarda poa-
aoaa only luoh p a r 8 aa lra rxprrsaly oonrarrad on them by law
or’era n8oaaaerIly ImplIad from the powrra oonfrrrad. 34 Teraa
.JurIaprudano8 4401 Fort north Cevelery Club v. Sheppard, 125
hxea 339, 63 S. W, 26 660.
A&a, with raapaot to the matter of LeglaletIve Intent
w would quota in pert, rrom the Eduoat:onel Appropriation Bill,
aupra, Subaaotfon (41, Looel D8poaItorIaa, aa rollowar
et*+
*It la hereby drolerad the L8gIalatlv8 Intent
that the governing boerda and beeda of thr aavaral
State Inatltutlona o? higher 18ernlng ahall not bor-
row money from eny peraon,firn or oorpcretlon to br
repaid out oi local funds, other than la npaoIfIoally
authorized by lcgIaletlve aneotment.~
iua balleva, turther, that there la yet en eddltlonel rae-
aon that would preoluda en Implloation of inplled ower n8oaaaarlly
in the Board of Regent8 to borrow money or pledge P0081 fund8 whloh
$onorablr Wllllam L. Xrrr - PIga 4
rr~ be lvallabla Qi the future, la tha lb a a noofr la rzprraaad
#wtllW OOtIfarring the power. By virtua o? the provlalona o?
~tlola III, Srotlon LO, Conatltution or.Toxea; Arta. 4351 and
b35la Varnoa’a Annotated 01~11 Statutra, tha Lrglalatura h8a art
up th8 pooedura by whloh the ameaagera or State Ina~ItutIona or
oaar peraona la Texaa with ths power or duty of mntreotlng for
luppllaa or in any nannar plrd6ing them the oradlt o? the Stat8
?ca any da?Ialanoy that slay uiaa under their menagaaaant & oon-
trol* m8y lxtrIoata thamaalvaa iron oaaual darloIanoIaa unroraar-
ebla when epproprIetlona wera made..,: The feat that the legIaletura
hea praaorlbed the method to b elnployad la oaao o? drflolant ap-
oprletlona would rurther praoluda, wa think, an lniaranoe o?
EP lied rower La the Board o? Ragenta to authorize the ~borrowlng
o? money for the purpoaaa axpraarad herein. Wa do not go Into
the queatlon o? the evelleblllty to Taaohara Collagaa o? dail-
olanoy approprlatlona under the faota ateted, but In lieu thcrao?
etteoh and formrd harewith Attorney Ganarel Opinion O-2118, ap-
proved funs UC 1940, whloh dlaouasar that mettrr, oomplstrly.
In the light o? the atet:~taa end raeaona haraln above
dl.eouaecd, It la the oplnlon o? thla department that your quaetlon
luat be end la anawerad in the nagetlva.
Truatlng the ebova letIa?aotorily lna wr a your lnqulry,
88 are
Your8 vary truly
AlTORNXY GENERALOF TJUAS
~fP%
BY
Ohratrr B, Olllaon
. Aaaiitent
aaaloaura