, 

-- 

JIM MATTOX 

Attorney General 

Supreme Court Building 

P. 0. Box 12546 

Austin, TX. 76711. 2546 

5121475~2501 

Telex 9101674-1367 

Telecopier 51214754266 

714 Jackson. Suite 700 

Dallas. TX. 75202.4506 

2141742.6444 

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El Paso, TX. 79905.2793 

9151533.3464 

- 41 Texas, Suite 700 

wsto”, TX. 77002-3171 

1131223.5666 

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Lubbock. TX. 79401-3479 

6061747-5236 

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McAllen, TX. 76501.1665 

5121662.4547 

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San Antonio. TX. 76205.2797 

5121225.4191 

An Equal Opportunity/ 

Affirmative Action Employer 

-e 

The Attorney General of Texas 

October 12, 1983 

Mr. Kenneth H. Ashworth Opinion No. JM-77 

Commissioner 

Coordinating Board k?: Whether Coordinating 

Texas College and University System Board has authority to approve 

200 E. Riverside Drive college construction funded in 

Austin, Texas 78741 part by ad valorem tax funds 

received under former article 

VII, section 17, of the Texas 

constitution 

Dear Mr. Ashworth: 

You have requested clarification of Attorney General Opinion 

MW-594 (1982), which holds that construction projects for institutions 

of higher education funded by state ad valorem taxes received under 

former article VII, section 17, of the Texas Constitution, are not 

subject to Coordinating Board approval. Although section 61.058 of 

the Education Code provides that the Coordinating Board shall approve 

or disapprove all new construction of facilities at institutions of 

higher education. projects funded under former article VII, section 

17, of the constitution were held in that opinion to be exempted by 

the constitution itself. 

You now inquire as to what proportion of the total funding of a 

project must derive from state ad valorem taxes in order to exempt it 

from the requirement of Coordinating Board approval under section 

61.058(B) of the Education Code. 

In our opinion, Attorney General Opinion NW-594 was incorrectly 

decided. Article VII, section 17 was repealed at the November 2, 1982 

election. Article VIII, section l-e of the Texas Constitution was 

amended at the same election to provide as follows: 

sec. l-e. 1. No State ad valorem taxes shall 

be levied upon any property within this State. 

2. All receipts from previously authorized 

State ad valorem taxes that are collected on or 

after the effective date of the 1982 amendment to 

this section shall be deposited to the credit of 

the general fund of the county collecting the 

p. 325 
Mr. Kenneth H. Ashworth - Page 2 (JM-77) 

taxes and may be expended for county purposes. 

Receipts from taxes collected before that date 

shall be distributed by the legislature among 

instit"tions eligible to receive distributions 

under prior law. Those receipts and receipts 

distributed under prior law may be expended for 

the purposes provided under prior law or for 

repair and renovation of existing permanent 

improvements. 

The recently enacted constitutional amendment changes the mode of 

distribution of the ad valorem tax funds from that formerly dictated 

by article VII, section 17. See Attorney General Opinion H-1129 

(1978). Under article VIII, Zion l-e, tax receipts collected 

before the effective date of the amendment are to be appropriated by 

the legislature and projects constructed with those funds are subject 

to Coordinating Board approval to the same extent that other 

legislatively appropriated funds for college construction are subject 

to such approval. See Jessen Associates, Inc. v. Bullock, 531 S.W.2d 

593 (Tex. 1976). - 

The new constitutional amendment states with respect to receipts 

distributed under prior law, that is, article VII, section 17, that 

they "may be expended for the purposes provided under prior law or for 

repair and renovation of existing permanent improvements." The new 

provision preserves the purposes for which funds could be spent under 

former article VII, section 17. It does not preserve the language 

that rendered article VII, section 17 "self-enacting." Thus, any 

language of article VII, section 17, which might have excepted ad 

valorem tax funds from the requirements of section 61.058(B) of the 

Education Code is no longer in effect. Construction projects are not 

excepted from Coordinating Board approval under section 61.058(B) 

merely because they are funded in whole or part with ad valorem tax 

funds. Cf. Attorney General Opinion MW-245 (1980). Of course, if the 

project z be funded by these receipts has been approved by the 

legislature, Coordinating Board approval will be unnecessary. See 

Attorney General Opinion MW-520 (1982). 

Thus, the answer to your question is that Coordinating Board 

approval is required for all construction projects even if they are 

funded in whole or in part from ad valorem tax funds. Attorney 

General Opinion MW-594 is hereby overruled. 

SUMMARY 

Construction projects are not excepted from 

Coordinating Board approval under section 61.058 

of the Education Code merely because they are 

funded in whole or in part from ad valorem tax 

p. 326 
Mr. Kenneth H. Ashworth - Page 3 (JM-77) 

-1 

funds. Attorney General Opinion Mw-594 is 

overruled. 

JIM MATTOX 

Attorney General of Texas 

-- 

TOM GREEN 

First Assistant Attorney General 

DAVID R. RICHARDS 

Executive Assistant Attorney General 

Prepared by Susan Garrison & 

Rick Gilpin 

Assistant Attorneys General 

APPROVED: 

OPINION COMMITTEE 

Rick Gilpin, Chairman 

Jon Bible 

David Brooks 

Colin Carl 

Susan Garrison 

Jim Moellinger 

Nancy Sutton 

p. 327