Untitled Texas Attorney General Opinion

OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN . June 14, lQS9 /' EionorableTom C. King State AuQltor a xtrrisieaeympwt Austin, Tent3 Dear Sirt Pa hare r0r a0 lettar of Euns 8, 19x1, whaieia ~'00refer mat-mot attaohad to your letter, State Boerd ot mreur Aamoia- oh the Board of Conourrsnt)ieaolu- tare, plaoer the acfnto Eeuorial Tower in said s the use or said buildlng inoludi!q the lnatalla- Noel museum, and authorizes rs and to operate a comes- ng, the loaatioa of the aonaea- iah they am to be operated to seoaiatlonand spprovod by the Board e oplnlon ot this Degartment~uponthe "1. Ooee the above mentioned oontract vlolatr krtiole Three (3) Section Fifty-one (51) of the State Constitution,or does thb drlrgatloaof woh ~ovsmmental authority to a self psrpstuatiagaor- poration rlolats any part or provision of the Con- stitution 0r thin Stats? mm: . . Hon. Tcs C. King, Jam 14, 1939, Page 2. *2. It question ISumber0ua 18 anmrarsd in the nogatire,would uhargos far elevator senloo be pub110 monies end es suoh subjeot to State control? "2. U quartion litamber Oxi* is enowered In tha nega- tito,ooa the pollolng mar of the b:saorfelba delegated to the aorparatiou? -4. If quoatlnn Eumber One $8 answered in the nege- tiva, would tha,titla to saored hiatorloaldoeumanta or objoots purahaaad dth iuads or tare aarned by the oorporatian BSOOIW the property of the Eltak, or would they ra8in the property of t&o oorpora- tloa mbjsot to rhatoror dl~p01~1tl0~ the 44li p4r- &mtuatieg body shouldapalto Mtha? =5* KLfqueStiOn Xuabsr On4 should be answered in the negetlro, da4 the oontreot requirementof ap- prove1 46 the Board of Control of the rules pro- mulgated by the oorporetion,ror tb4 operetlon or the Xlripculal, oonatituta thr oorporatlon an 4aplo744 of the Board of Control, or would it be ooastrued that tha Board of Control ir gfron roguletorr authority over the oorporatlon by oontraot; anb ii tha answer 14 t&i lattsr, what would be the sffeet of approval or disapprotel of tho Boerd, and would 4a4h ml44 ar th4 oorjwntlon b4 4rr40tit4 prior to the abprovil ofths Board7 It la intondsd that this qusstfoa lnalude the provl~lonunder whloh the corporation ia authorized, 'To make a maso& able oherge, tobe approved by the Board, for the use of the elevator to the obmtnetion toner in the top of the sheit.' "6. If qusetion Number On6 le answered in the nrga- tire, would the prorlalon la ssotion 8i.x(6) or tbe oontraot reierrlag to ths lBalanoe,if any, to bo used on the grounds of the San Jaolnto State park under the dlrootlon of the Board of Control* be funda to bs dopositsd into ths State m495ulf, or wuuld those tundo be ldralnlster&dby the OorFora- tlon1 “7. If question flambsrOne is in the negatlra, does the provlrlon of motion 81x (61 0r the aon- traot; *The A~mulatlon shell nzbmft to th4 Board ror approval,a dotallod monthly report of all Ool- lootleas and expsadltursa of these fund8’man that tb4 rorporation 10 4 Stat4 agomy aoatnetins to Bon. I'maC. King, June 14, 1939, Fuge 3. prrorm this rumtloa of ejovrrment? “8. It qusstion Ono.14 in the rtegatlvo,dooo the provisionin Section (8) OS the contractIn addi- tion to other provisions, *... shell tarmloeto and the San feolntoMemorialTower shall revert to the Stat4 of Tore8 . ..* oonatltut4thr 008traot, as a loaao agreement of this publio property, to the oorparati on?* Your Slrrt questionla enavorsd la the nogatlre. Th4 bontraot does not violato hrtioleS, Sootion81 oi our ConatltutioB, nor 60 far as 10 lm+o obaormd, ray other A portionor orovldo~ oi the Ooaatitutioaoi Tozaa. Th4. luthority or the state 0r T4raa to rntrr into aormaota or this ohareoter van a&&old la the oaae or Conlay is. Deughtera aitthe Republio, 166 S. W. 197; whlahrea a oeao d44llagvlth en Aat af the L4gial4ture0r the stat4 0r Tox44 luthoriaing the Qoromor to deliver the Ale160pro- perty boldnglng to the Stat4 into the ouetody end oar4 oi ths Deughtere of the Republic of Texas, to be melntelnad by them In good ardor and ropelr, without ohergs to the State, as a aeor4d mamorlel to the hero68who lmolated theimaelv48upon the hellowns&grounde. The Suprome Court or the State of.Texas, in that oeee, upheld tha'powrr of the Leglsleture of Texas thus to provido for th4 oar4 and custody 0r Its prop4rty, atatlng that the State ha8 the 44ne right.8and pm4rt in roepect to lta property as en individual. Speclflaally,the Court etated: *a4 are of o9lnlon that the Stats, acting by its Legislature,had the euthority tc acqulra title to the Alamo property lnC to place that pro- psrty In the custody of the aorpomtlon, the Daughter6 of the Republlo.w us to the question of ~olloy involved, the Court had this to say: This quclatlonis aekod: 'Should a Stat4 odt Its lntercsta to oorp0retlons7* This Qourt has naught to do with the policy OS th. Stat0 on that qu46tion.* Tour asoondqumatlon is amwersd In the affirrMtiv4. By Seation 6 of ths oontraot,it le oontsnpletadthat the oorQOr4~Oa, aa tXU6t44 ior th4 Stet4, shell us4 th0 mOnO]r Hon. rm c. King, inma 14, lOSO, Peg0 4. OollaOtad from operatiagthe 816vetOr to defray the upenea8 of operating tha alaretor, peylne:janitors end mtohmen, end ror mainteaeaoe end polIoIng of the buildfag, and ror oomply- lng with the general term8 or tha racrolutionof the Leglela- tare In reapoat to lneurenoe, with thm balaws of said aonaye, l e well as the balenoe or ths net prorite remaining 6rtst tha p6p6nt 0r 9~0h'6fp6n6e8, to be ueed on the ground6 of the SUI JeoInto State Eark under the dlraotion cb ths Boer& of Control. The raotlon provides that the corporatloa shall suteeitto the Boezd, r0r approval, a dot&lad nonthly report or 611 oolleotlonrend upcndIturae of eaoh runds. xt IO tharetors oontcllPplatsd br ths oontreot that expendlturae of SUO~ randa tilestate, tha Stata The money8 era thus subjeot to State oontrol In the uenee that the,stete lne the right to i66 that su6h moneys arc orpadded by thc ctirporationin eooordenoewith tha term8 end pror~8Ione cf the contract and of the resolution of tho Leglelature. Your third qiwetloa 16 anewwed in the afiirnta- tire. Ttm authority of the Legislature to plaoe’the duty or polloing the memorial In ths hands of the oorporation hea been suatulned by the oaee of ConUp VS. Caughters of tha Rspubllo, above raferred to. Your fourth question Is answered In the nsgatlre. The dlspoaltlonof the net profits oollsoted from sailing eowbairs and operating a oonceaslonand the money collect- ad fro= operating the elevator Ie provided by Seotloa 6 of the oontroot. The ooatraot ooatezpletesonly that tha asmoiatlon ehall use euoh laonaysfor the purposee speoi- fled thereln, to-wit: (1) Expense8 0r operatlag the ele- vetor. (2) Paying janitors and watobmen. (3) Expensae of maintenance and polloine or the building. (4) For oom- plying with the penerel tsm of the iesolution In respect to Iasurenoo. (5) The balenoe oi ths net prorltr alter suoh we8 ham beea aede, is required to be used on the grounds of the San Jaolnto State Perk, uader the dir8OtiOn or the Board 0r control. It Is not oontanpbtsd by the oontract or by the resolution that any soared h.letolicel documntr or object8 purohered rlth suab rustleor Tee6 shell beaoms the propert d th e eo r p o r a tlo rorn, It Islrpreesl~ provided in the nrolution 6nd In the oontreet thet the la s o eIa tIo OT n Hen. la a. lUn&, Juno14, 1939, *se 8. eorporetion rhall sot lo trustee ror the Stat0 In nepbot to th8 aare, eustodj, and Oontrol 6f the Ben feeinto X4notiel TOWSl'without eharge to th8 Stete of Texas),sol to @mit tBe we Or 8uOh rW88 to pUrOh448 wo&Wrty whloh I6 to beloolqto the ooa!poretlan, rettier thao to the Stats, would be ompeiwatlng meh oorporetIon ror ruoh serrfoee. Furthermore,'theoontraot iteel# does 8ot oonta thet cay ef euoh rond8 shall bo used ror pure&e Seared hhtO?ieSl 6OOUaantB OF objects. my SUOh pro- perty &8 purolmsed b ythe l*e00Ietlo a ,would th4r9r0a-0, ,b9 hO1.db UIh lSOOO~ti~, it pUSOh484d rdth 8UOh ruod8, 88 trustee r0rthe Stete, and not in it8 propriotwy 08PSitr. Eowrer,.ell?urnftfUo tiktuk48 4nd 4qoiprUtt inetelled ta aefd bnllhI& bpf aid et the eXpease.& the leeoeIetIoa,peid r0r dth its own md8, en& all of St8 hIetorIeel&.~k, mt8riel 484 eollootion8, mid for with it4 om run44 andqr the prwir~on8 0r seotioa 8 or the oontraot, oon&me tti brlw to sad reaeln the pomrty of the aeeoeietion. Aarrirlng yeur rmh questton, you ue edrleed thet the stetus of the e4rporetio4 h48 been detexuiMU by the ease et ConLif r8.‘7haghtera ai the Ropabllo, sapre, t0 b8 that of tN8tM. The oaee reromd to stetesr *We are et oplalon that by th alo o ep teno e or the t0m8 oi the statute, 'thecorporation beom a trustee ror the Steto.~ Seation 8 of the oontreot ooata8plet*8that the looatlon or the oono4ssfonsend tha ruler under uhloh tboy are to.b4 operated are to be sateblIaha4by said essoola- tlon end 4pproved by the Board ot Control. It Is lik4rIre Oontarpletedby said reotloa thet tbs oherge to bo nade by the lasooietionfor the uee of tbs elevator to ths obserre- tlon tomr is to b4 epprordd by th4 Board ot Control. Seotlon 6 of the aontreot likawiae oont4apletee that e datefled monthly report of 411 aolleetion8end lX- pwlditures 0r rundr dorived mm sellins soweairs, opsret- in6 the 001m48don, end iron op4mstIngtho eleretor, shall be mda to aa4 lpprwml by the State Board of aontrol. fn our opinion, the NleS of the oor~etlon roold not be lrreotlve prior to the apprcnel of the Board, nor rolrldthe oorpOr4tlon b4.eathorIzedto melu any oherge ror the use at the llw*tor fir’she lboenm of its prim c Eon. lar U. King, Juae 14, 1939, Fage @. lp p r wel by th eB o er d. IB o uro p lnh n, th e b elea roer e ur ed to lny e u sixth question oonetitutes a tNet fua& to bs ho14 by the trustee, the oorpuatloa r0r the asarad Eukeflt ef tha Stab, and to be expend br the tN4tOa oorpaeatiea on tbe gramIs of the &a JIoIntoSkte Furl 66 ray k directed by the Board of Control. Tour reventh queatlon baa olraedy been lwwend. The 8orparetion is 4 tmstee, 8nd tithe 8ddnletnbioaL of th* trust in, by the tens 0r the eontnot abjsot to the ~upemleery-ooatrolc4 tha Bar4 af Cemtrof la the partlrular nrPeote inalorted lbwe. The elmnoter of ooatrolmelnteImU by tho Bard 18 furthersaJh8iZad by the. prorieloae or Saetloa T, wbloh nqulre the preperetloa by thm eor$or&tioxof neoeeury nxlem uSregulatf6ns ooveringthe laplete oparetioa or the build:% end the 8UbdSdO~ of 8uOh tie8 and r’O&Ul~- dons to the Boerd for approval, end by the proviri~na of Seotion0, whloh prwido that ir the'srentd a brueb by the oorporetlon of enf 0r the temw or lo mB~tio or nethe oontreot, the ooatr8ot et the option 0r the Eoard slmll termlneteand the 0en JaointeXuer%el Tower rwert to the por6e8ri4~1 or the Stete or Te&s, ~adlthe Ti(Ihte Or the eseoeletionthereinuhtil 0068e. Aaswarlng four eLghthquestion, the eontnot is a trust, ret&r then 4 loose, agreement, She d istinotion resting upon the ocpaelt~in uhloh tbe eorpontion takes the posee8elQn 0r the proPertyc We trust tbt the abare letisfeotOT~y en8ww8 ell or youT illqulries. . A3WRltEYUBIPIL0?TEXh8