Ron. Cliffora B. Jones Opinion No. 

### O-1607

President Re: Building college printTexas Technological College Lubbock, Texas ing shop.and issuing revenue bonds in payment thereof.
Dear Sir:
Wehave your letter wherein you request our opinion on the following question:

“Does the Board of Directors of Texas Technological College have authority to issue evidence of obligations for building a building to house’ the college printing shop under a pledge of revenues therefrom, sameto: be built from funds borrowed from sources other than the United States Government?U
The authority of the Board of~Directors to borrow moneyto build a building to house the college printing shop is’ contained in the provisions of Article 

### 2603~of Vernon’s Annotated Civil Statutes, as amended. Section 1 of said Anticle 2603~ Session, P as amendedby Senate Bill 

### 393,Acts of the Regular
lows: orty-sixth Legislature, 

### 1939,reads in part as fol-

“Section 1. That the Board of Regents of the University of Texas and its branches, andthe Board of Directors of the Agricultural andMechanical College
, andIts .:branches, andthe Board of Directors of Texas-Cal Collesei andthe Board of Regents of the State Teachers Coleges, and the Board of Regents of the Texas State College for Women and the,Board of Directors of the College of Arcs and Industries are hereby severally authorsized andempowered to construct or acquire. through funds or loans to be obtained from the Government of the United States, or any agency or agencies thereof, created under the National Recovery Act, or otherwise created by the Federal Government or from any other source private or aublic, without cost to the State of Texas and accept title, subject to such conditions and.limitations as maybe. . ,.

Hon. Clifford B. Jones, page 2

prescribed by each of said Boards, dormitories, kitchens anddining halls, hospitals, libraries, student activity buildings, gymnasia, athletic buildings andstadia, e as mavbe needed for the F andthe moral welfare and social conduct of ~the students of such institutiong whenthe total cost, type of construction, capacity of such buildings, as well as the other plans and specifications have been approved by the respective Governing Boards; provided, however, that the Legislature shall never makean appropriation out of the general fund of this State, either in the regular appropriation bill or in a supplemental or emergency appropriation bill, for the purpose of equipping or for the purpose of purchasing and installing anyutility connections in any of the buildings erected under andbyvirtue of the provisions of this Act.” ‘~ Section 2 of said Article 2603, as amendedby Chapter 

### 459,Acts of the Second Called Session, Forty-fourth Legislature 

### (1934)provides that the Boards for the various colleges are authorized to fix fees and charges for the use of the buildings erected. Said section then further provides as foll’ows:

“The fees and charges thus fixed along with all other indome therefrom shall be considered as revenue derived from the operation of the buildings thus constructed. n Section 3of said Article 

### 26o3~,as amendedby Senate BLlL‘m, Ax-!!&

rzf*JmBfXJLLax.sks.mL, 

### (1939)reads in part as follows: F~.fk.y-a&JL LvgA!!J&T%

“Section 

### 3. Subject ,to,the above restrictions, each of said Boards is given complete discretion in fixing the form,~conditionsand details of such bonds or notes. ,&~y ‘bonds ~,ornotes issued hereunder shall not be an indebtedness of the State of Texas but shall be payable solely .from the revenues to ge derived from the operation of said~buildings; provided that such bonds maybe~refinanced by the said~Boards whenever such action is, found bythe Board to be necessary.”
Section 4 of said Article: 

### 2603~,as amendedby Chapter 

### 204,Acts of the Forty-fourth Legislature 

### (1934)provides in part as follows:Hon. Clifford B. Jones, page 3

‘lSection 4. Each of said Boards is authorized andempoweredto pledge all or a part of such revenues to the payment of such bonds or notes, andto enter such agreements regarding the Imposition of sufficient charges andthe collection, pledge and disposition of such revenues as It maydeemproper.”
Webelieve that the above quoted provisions of Article 2603~ authorizes the Board of Directors of Texas Technological College to issue evidence of obligations for building a building to house the college printing shop under a pledge of revenues derived from the operation of said building. Said bonds must be paid solely from the revenues derived from the operation of the building endno payment can be madefrom funds appropriated to the College by the Legislature. Section 1 of said statute authorizes the construction of buildings which "maybe needed for the good of the institution.11 However, wepoint out here that the Board of Directors of said institution must in the exercise of good faith anddiscretion determine whether or not said building is one that is needed for the good of the institution. Section 1 of said statute also provides that such a loan may be obtained from any source, either private or public. Under Section 2 of said article, as well as other portions of said statutes above quoted, authority is given to execute notes bearing interest as high as six per cent, payable over a period not exceeding forty years. Wemight add that this department has, in Opinion NumberO-1694, addressed to Honorable TomC. King, State Auditor, Austin, Texas, held the above quoted statutory provisions constitutional. Therefore, it is the opinion of this department that the Board of Directors of Texas Technological College has authority to issue evidence of obligations for building
a building to house the college printing shop under a pledge of
revenues derived from the operation of said building sameto be built from funds borrowed from sources other than {he United States Government.

Trusting that this satisfactorily answers your question, weremain
APPROVED

JAN16, 1940 /s/ W.F. Moore FIRSTASSISTANT ATTORNEY

GENERAL
APPROVED:

OPINIONCOMMITTEE
:%-s:wb BWB,CHAIRMAN Very truly yours ATTORNEY

GENERAZ

OFTEXAS By/s/ Claud 0. Boothman Claud 0. Boothman, Assistant