February 17, 1966

Mr. Harry B. Kelton Director OpinionNo. C-614

Texas NationalGuard Armory Board Re: Whether certain funds West Austin Station appropriated to the Austin, Texas 78703 Armory Board can be legally expended for constructing abuilding addition for theAdjutant General's Department at Camp Mabry under the

Dear Mr. Kelton: provisions of Section 6 Paragraph (7) of Article 5767V.C.S., and related questions.

We have your letter of recent date requesting our opinion relative to the above captionedmatter,which letter reads as follows:

"As indicatedby the enclosed certified copy of an Armory Board resolution of January 29, 1966 the Boardhas made $235,000.00 available for the construction of a two-story building addition for theAdjutant General's Department at Camp Mabry, provided the expenditure of such funds is approvedby the Executive Budget 'Office,the Legislative Budget Board and the Attorney General of Texas.

**“ In**  the event the funds appropriated to the Armory Board can be legally expended for constructinga building addition on land acquiredby the Board under the provisions of Paragraph (71,Section 6, Article 5767, Chapter 690 of the General and Special Laws of Texas, 59th Legislature,Regular Session, 1965,would the Board be required to lease
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MI-.Harry B. Kelton, page 2 (C-614)

such property to the State of Texas or would the Boardbe authorized to transfer such property to the State of Texas.,"

The resolution attacheddiscloses that the fundsmade availablewere derived **from** the sale of property at Camp Wolters and Hulen.

House,RillNo. 410, (Acts1965, 59th Legislature, chapter 690, page 1601) amended Chapters 1 and 2
,,Title 94, Revised Civil Statutes of Texas, to read in part as follows:

"Article 5767. Texas National Guard Armory Board.
"Express **powers**
"Section 6. The Board possessesbut is not limited to the followingpowers:
II

. . . "(7) To constructbuildinqs on anv of its real property.whether held in fee simple
or otherwise,and to furnish and equip the same and toehold,manage and maintain all of said property and to lease to the State of Texas, in the same.

mannerwashereinafter providedwith respect.to other property, the buildings, and the sites thereon situated,which ,it may construct at Camp Mabrv, Camp Hulen and Camp Wolters, and to lease and sublease, convey and exchange,

. . .'I (Emphasisadded).
Section 7 ofArticle 5767 provides as follows:
"Section 7. As and when any of the property ownedby the Board shallbe fully paid for, free of all liens, and all debts and other obligations incurred in, connection with the acquisition or construction of such propertyhave been fully paid, the Board may donate, transfer,and convey such property, -2983-.

Mr. Harry B. Kelton, page'3 (C-614)

by appropriate instruments of transfer, to the state of Texas, and such instruments of transfer and conveyance shallbe kept in the custody of **the** Adjutant General's Department."

House Bill No. 12 of the 59th Legislature,which is theAppropriation Bill for **the** State of Texas for the biennium September 1, 1965,toAugust 31, 1967, at page III-18 provides
as follows:

"There ishereby appropriated~to the Texas National Guard ArmOIy Board all fundswhich have been or may be derived from sales of stateowned National Guard Camps and other property ownedby the TexasNational Guard Armory Board and of land, improvements,buildings, facilities, installationsand personal property in connection therewith,as authorizedby Senate Bill No. 279, Acts, 1963, Fifty-eighthLegislature. Such funds shall be expendedby the Texas National Guard Armory Board for the use and benefit of the Texas National Guard for one or moresof the following purposes: (1)As a participating fund in the construction of armories financed in partby the United States Government: or (2)AS a construction fund tobe usedby theArmory Board: or (3)As a debt servicing fund as provided in Senate Bill No. 279,Acts, 1963, Fifty-eighth Legislature, Regular session. Provided,however, that all such funds as are not actually used for the purposes,hereinbefore~specifiedshall remain,
on depositwith the State ,Treasurerto the creditof the Texas National Guard Armory Board forthe usesandbenefit of the Texas National Guard, their successors or components, as provided in Senate Bill No. 279,Acts of the Fiftyeighth Legislature, 1963. There is hereby reappropriated to the Texas National Guard Armory Board~all, sums refunded to said Board from any sourcewhen such fundswere originally~ expended for any of~the purposes enumerated in Items 1 through 5 above. Such reappropriated
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fundsmay be expended for any of the purposes enumerated in Items 1 through 5 above." (Emphasisadded).

It appears from a reading of House Bill No. 410 that the same recodifies all of the laws pertaining to the Texas National Guard and Armory Board.

In view of the provisions of subdivision 7 of Section 6 of Article 5767,Vernon's Civil Statutes, as amended, and the fact that the Legislaturehas appropriated funds derived from sales of National Guard Camps and other property ownedby the Armory Board tobe expended "as a construction fund",we are of the opinion that to make such portion of the Appropriation Bill effective, itwould include the expenditure of funds for the construction in question.

It is therefore our opinion that subject to **the** approval of the Executive Budget Office and the Legislative Budget Board and the Attorney General of the State of Texas, that the funds available for the construction of a two-storybuilding addition for the Adjutant General's Department at Camp Mabry can be legally expended for constructinga building addition on lands acquired by the Board under Paragraph (7),Section 6, Article 5767, Chapter 690 of the General and Special Laws of Texas, 59th Legislature, Regular Session, 1965.

If thebuilding towhich the two-storybuilding addition is attached for the Adjutant General's Department at Camp Mabry is under lease to **the** State of Texas, then this addition should be leased to the State of Texas, under the same terms and conditions as contained in the original lease, as thisbuilding would upon completionbecome a part of the originalbuilding: however, if thisbuilding addition is constructed on property ownedby the Board and such additionbecomes a part of a building that is fully paid'for, free of all liens and all debts and other obligations incurred in connectionwith the construction, then the Board may donate, transfer, and convey such property,by appropriate instruments of transfer, to the State of Texas, and such instruments of transfer and conveyance shallbe kept in the custody of the Adjutant General's Department as provided for in Section 7 ofArticle 5767,Revised Civil Statutes of Texas.

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St&E%RY

1. Funds appropriated to the Texas Wational Guard Armory Board can be legally expended for constructing an addition to an existingbuilding at Camp Mabry, subject to .&heapproval of the Executive Budget Office, Legislative Budget Board and the Attorney General of the State of Texas, under the provisions of Section 6, Paragraph (7), Article 5767,Revised Civil Statutes of Texas.

2. When such additionhas been completed to the existingbuilding at Camp &bry and if such originalbuilding is under lease to **the** State of Texas, then **this** building addition shouldbe leased to the State under the **Same** terms and conditions as contained in the original,lease; if suchbuilding addition is constructed on property ownedby theArmory Board and such additionbecomes a part of a building that is fully paid for, free of all liens, debts and other obligations incurred in connectionwith the'constructionjthen the Armory Board is authorized to donate, transfer and convey such propertyby appropriate instruments of transfer, to the State of Texas, as provided for in Section **7** ofArticle 5767,Revised Civil **titaktes** of Texas.

Y&d3 ve* ttixly,

WAGGONER CARR Attorney General

JHB:sj:ra

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APPROVED: OPINION CCMMITTEE

W. V. Geppert, Chairman Pat Bailey Alan Minter Marvin Sentell Harry Gee

APPROVED FOR THE ATTORNEY GENERAL BY: T. B.Wright

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