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- COPY COPY (Sea11 OROVER SELLERS Attorney General

Dr. E. N. Jones, President Texas College of Arts and Industries Klngsvllle, Texas

Dear Dr. Jones: Tm ATTORNEY GENERAL OF TEXAS Austin 11, Texas

Re: Can the Board of Directors of the Texas College of Arts & Industries legallyenter into a contractwith a coach who receives a part of his salary under the educational appropriationbill and agree topay him out of the athletic department income for a longerperiod than oneyear? Your letter of December 28, 1945, reads, Inpart, as follows: "If a coach 1spaid entirely from the athletic fund, the source of which 1s entirely from athletic department income, I judge it 1s in order for a contract of two, three. five ormore years to be entered into. It would seem. from newspaper reports, that the University of Texas and A. & M. College follow such aplan. "Would the signing of a contract formore than oneyear at a time be legally tenable if the Institution,being smaller, does not employ a coach for lntercollegiate athleticpurposes only, but uses apart of his time forphysical education activitywork and therebypays apart ofhis salary. at least, from state appropriatlo"s?' A proper determination of your question requires a review of the followingpertl- "ent Statutes and Section 6 of Article VIII of the Texas Constitution, to-wit:

“Sec. 6. Nomoney shall be drawn from the Treasury but inpursuance of specific appropriationsmade by law; "or shall any appropriation ofmoney be made for a longer term than twoyears, except by the first Legislature to assembleunder this Constitution,which may make the necessary appropriations to carry on thegovernment until the assemblage of the sixteenth Legislature. The 49th Legislature at its Regular Session 1" 1945 speclflcallypassed legislation on this subject 1" Senate Bill 324 (Chapter362, page 652, Laws of 1945). Section 1 of which reads, inpart, as follows:

"Section 1. The salaries of all State Officers and all state employees, except those Constitutional State Officers "hose salaries are speclflcally fixed by the Constltutlo", and except the salaries of the District Judges and other compensation of District Judges shallbe, for theperiod beginnIng September 1, 1945. and ending August 31, 1947, In such sums or amounts asmay be provided for by the Legislature in the general appropriationbills. . .' I" confonnltywith Section 6 above, the 49th kgislature in 1945passed what is oommonly called the EducationalAppropriationBill (Chapter 377.page 682, Acts of RegularCOPY Dr. E. N. Jones -page 2 o-7012 COPY

Session, 1945). Section 1 ofwhich appears as follows:

"Section 1. (a) That all balances I" the institutionalfunds of the Several State I"stlt"tio"snamed in this Act, at the close of the fiscal year ending August 31, 1945, includingbalances in their revolving funds at that time, and the entire Income in said funds during each of the two fiscalyeax ending August 31. 1946, and August 31, 1947.which are not otherwise appropriated for either or both of said fiscalyears are hereby appropriated for the support,maintenenoe, o?eration, and improvement of said State l"stitutlc"during each of said fiscalyears, respectively." At page 765 of Chapter 377, supra, appears the specific appropriation to Which you allude, viz.:

"Health **and** Physical Education" For theYears ending Aug. 31, 1946 Aug. 31, 1947 39. Professor and head of Department $3,300 $3,300 40. Associateprofessor 2,300 41. Instructor 2,200 2,200 42. Instructor 2,200" Subsection 11 of Chapter 377. supra, reads: "Athletic or Fxtramural Department. The generalprovlsion~made in this Act shallnot apply to athletic or extramural departments, and as to these exceptions, thegoverning board shallmake such necessary rules and adjustments asmay be deemed advisable." Section 1 of Article 2654d ofVernon's Annotated Statutes of 1925. reads, in part, as follows:

"The governing boards of . . .Texas College of Arts and Industries , . . may retain control respectively of the following sums ofmoney collected at each of said Several institutions in carrying out the functions of a" educational lnstltution. such as . . . receipts from school athletic actlvltles

. . ." The lnstit"tlonal funds, including receipts from school athletic activities,mentioned in Section 1 of Article 2654d, and appropriatedby Section 1, Subdivision (a) of the Educational Appropriation Bill for the current biennium are State funds and could not be expendedunless they were appropriatedby the Legislature.

It 1s apparent that the coach, If employed,will be an employee of the College, and his salarywill be paid from State funds.whether he Ispaid entirely orpartly from receipts derived from the school's athletic activities, or from the appropriationmade to the College out of the State's General Fund for the current blennlum endingAugust 31, 1947. Therefore, the Board of Directors of the Texas College of Arts and Industries are unauthorized to enter into a contract with an employee for his services for a term extending beyond August 31, 1947. the expiration date of the current appropriationmade for such purpose.COPY Dr. E. N. Jones - Page 3 O-7012 COPY

You are further advised that we know of no legal objection to your Boardmaking a contractwith a teacher or athletic coach for his services for aperiod of time extending beyond August 31, 1947, subject to subsequent appropriationsbeingmade by the kglslature topay his salary for such time of employment. If no such appropriationsaremade such a contractwould then tennlnatewhen the current appropriationexpires, August 31, 1947. Yours very truly, ATTORNEY QENERAL OF TEXAS By a/ Wm. J. Panning Wm. J. Fanning Assistant WJF:AMM:“c APPROVED JAN lb, 1946 s/ Carlo6 C. Ashley FIRST ASSISTAliT ATTORNEYGENERAL Approved Opinion CommitteeEy s/BWB Chairman