Untitled Texas Attorney General Opinion

R-54 THE A NEY OF%-EXAS AUSTIN.TEXAS ' Jan.28,1947 Hon. S. B. Whittenburg, President Board of Regents Texas State College for Wanea c/o Amarillo Times Amarillo, Texas Opinion No. V-54 Re: Local funds or institutional receipts, expenditure of for research purposes by Board of Regents of Texas State . College for Women. D~ear Sir: We acknowledge your letter of recent date wherein you request an opinion of this Department concerning the following submitted question: “Does the Board of Regents of the Texas State College for Women have authority to authorize ex- penditure of its local or general funds for research purposes?” Article 2654d, V.A.C.S., providing for the control of the type of funds in question by the governing baard of State institutions of higher learning provides in part as follows: “Sec. 1. The governing boards of. . . including . . . College of Industrial Arts . . ., may retain con- trol respectively of the following sums of money col- lected at each of said several institutions in carrying out the functions of an educational institution, such as funds collected from student fees of all kinds: charges for use of rooms and dormitories, receipts from meals, cafes and cafeterias, fees on deposit refundable to stu- dents under certain conditions; receipts from school athletic activities; income from student publications or other student activities; receipts from sale of pub- lication products and miscellaneous supplies and equipment; students’ voluntary deposit of money with said school for safekeeping; all other fees and local institutional income of a strictly local nature arising out of and by virtue of the educational activities or Hon. S. B. Whittenburg, Page 2 Opinion No. V-54 research or demonstration carried out by each and all of said several schools. .. . . . “Sec. 8a. No part of any of these funds shall ever be used to increase any salary beyond the sum fixed by the Legislature in the appropriations bill, and this law shall be subordinate and subservient to the biennial appropriation bill for the support of the several iaot@@ions herein mentioned;” (Underscor- WI -4 Under Article 2624, as amended by Acts 1945, 49tb Leg- islature, Ch. 156 and 171, pages 203 and 208, the name “College of Industrial Arts” was changed to “‘Texas State College for Women.* Acts 1945, 49th Legislaturl), Gh. 377, Appropriations -- Educational Institutions, General Provisions, Subsection (3) at page 804, the Act appropriating institutional receipts, reads in part as followa: ” . . . and all proceeds . , . irom f&es and any land all other receipts 8h&ll &ecome and are hereby appropriated as maiiit@aance or Contingent fund to be expended under the direction and with the approv- al of the governing board having jurisdiction. Said governing boards are authorized to use out of the proceeds of said receipts and funds, in accordance with the provisions of this Act, such amounts as they shall deem necessary for the support, main- tenance, operation and improvement of said fnsti- tution. Any balances remaining to the credit of any of said institutional local funds at said institution or in the State treasury at the end of any fiscal year are hereby reappropriated for the above mentioned purposes for the succeeding year,” The expenditure of local funds collected by institutions of higher learnin is controllad by the provisions of Article 2654d and Subsection (3‘3 of the General Provisions of the Appropriation Bill, Ch. 377, Acts 1945, 49th Legislature. Article 2654d, Section 1, providing that said governing boards may retain control of said monies, and may use such amounts in carrying out the “function8 of an educational institution,’ also prohibits in Section 8a thereof, their expenditure in any attempt to increase any salary beyond the sum fixed by the Legislature, Furthermore, under the provi- sions of the General Appropriation Bill, Ch. 377, the said govern- ing boards are authorized to use said funds as they zhall deem Hon. S. B. Whittenburg, Page 3 Opinion No. V-54 necessary only for the “support, maintenance, operation and im- provement of said institutions,” Thus, such control is made sub- servient to the will of the Legislature as expressed in its biennial appropriation bill, and the expenditure of local funds may only be made for the benefit of the respective institutions. “Research” being the method commonly employed by modern universities, institutions of higher learning, and scientific foundations to increase the sum of human knowledge, we believe that research activity in State educational institutions of higher learning may be considered as one of the proper “functions of an educational institution. and within the contemplation of the phrase as used in Article 2654d, Section 1. Further, that an expenditure from the local funds of said institution of higher learning for re- search purposes is authorized under Chapter 377, Acts 1945, pro- vided the expenditure is made for the benefit of the institution, and is deemed necessary by the respective governing board for the “operation and improvement” of said institution. However, the said local funds may not be used to supplement or increase any salary beyond the sum fixed by the Legislature in the Approprio- tion Bill. In answer to your question, it is our opinion that under present existing law, the Board of Regents of Texas State College for Women has the authority to authorize expenditure of its local institutional funds for research purposes beneficial to the institu- tion, the governing board deeming same necessary for the opora- tion and improvement of the college, and provided the expenditure will not be used to increase any salary beyond a sum fixed by the Legislature. SUMMARY The Board of Regents of Texas State College for Women has authority to expend it:s local instirutrorzal funds, as defined in Article 2654d, Section 1, V.A~.C:S.;, for research purposes beneficial to the Ckllege, sub- ject to the prohibition set out in Section Ra, Article 2654d, Acts 1933, 43rd Legislature, Ch. 221. Yours very truly, APPROVED ATTORNEYGENERALOF TEXAS Chester E. Ollison OF TEXAS APPROVED - OPINION COMMITTEE CEO:djm: sl BY * -BWB - CHAIRMAN