February 3, 1966 

Mr. Walter W. Broemer, 

Superintendent 

Alabama-Coushatta Indian 

Reservation 

Livingston, Texans 

Dear Mr. Broemer: 

Opinion No. C-593 

Re: Whether the AlabamaCoushatta Indian Tribal 

Members can create a 

Public Houslng Authority 

as a separate corporate 

entity to which the Commission for Indian Affairs 

and the Alabama-Coushatta 

Indian Tribal Council could 

make a forty-year lease of 

State Trust Land to develop 

a low-rent housing project. 

Your letter of January 11, 1966, requesting our opinion 

relative to the above captioned matter reads, in part, as follows: 

'In reference to Opinion No. C-520, we 

have proceeded in making application with 

the Public Housing Administration for a Public 

Housing Project on the .Indian Reservation. 

The Public Housing Administration finds that 

they cannot provide the necessary funds for 

low-rent housing because the Texas Commission 

for Indian Affairs has the power to issue 

bonds for a period of only twenty-five years. 

Low-rent housing projects require forty-year 

bonds. 

'Therefore we would like to request the 

opinion as follows: 

"Can the Alabama-Coushatta Indian Tribal 

Members create a Public Housing Authority as 

a separate corporate entity to which the Texas 

Commission for Indian Affairs and the AlabamaCoushatta Indian Tribal Council could make a 

-2862- 
Mr. Walter W. Broemer, page 2 (C- 593) 

. 

forty-year lease of State T;ust Land to develop 

3 low-rent housing project, 

In answering this question, it is necessary'to review 

certain legislative and congressional enactments. For a more 

exhaustive historical summation, 

No. WW-43 dated March 5, 1957. 

see Attorney General's Opinion 

By an Act dated February 3, 1854 (4 Gammel 68) the 

State of Texas provided funds and authority for the purchase of 

1,280 acres of land for the Alabama Indians to be used by that 

tribe as a home. The Commissioners appointed under this Act did 

arrange for the.purchase and conveyance to the tribe of Alabama 

Indians of several tracts of land, and the deeds from the several 

grantors specifically made reference to the Act of 1854. Thus 

to accuratelv determine the nature of the estate conveved. we 

must construe the deeds and the Act together. 

Section 3 of 1854 Act provides, in part, as follows: 

.and that said Indians shall not 

allen,'lLase, terwise ren ., le 

dispose of said land or any part thereof to 

any person whatsoever. And should the.Stafe 

of Texas hereafter provide a home for said 

tribe of Indians, and settle them thereon, 

then the said twelve hundred and eighty acres 

of land, with its improvem$nts, shall become 

the property of the State. (Emphasis added) 

From the quoted Section of the Act, it is apparent 

that the Indians received less than a fee simple estate in the 

lands. There are specific restrictions imposed on the Indians, 

which bar any conveyance or lease by them of this land or any 

part thereof, and further their possession and enjoyment of the 

lands are dependent upon the Legislature as evidenced by the 

quoted language. The reversionary interest is in the State of 

Texas and should the Legislature see fit to provide a lawful 

procedure for leasing these lands, it could do so. 

In 1928, the Indian Reservation was enlarged when an 

adjacent tract of 3,071 acres was purchased by the United States 

"in trust for the Alabama and Coushatta Indians of Texas." Under 

Public Law 627, Acts of 83rd Congress, 1954, 68 Stat. 768, 25 

U.S.C.A., Sets. 721 et. seq., the Federal Government was authorized to deed said tract to the State of Texas, to be held 

by it "in trust for the benefit of the Alabama and Coushatta 

-2863- 
Mr. Walter W. Broemer, page 3 (C-593) 

Tribes of Texas, subject to such conditions regarding management 

and use as the State of Texas may prescribe and the disposition 

of such lands shall be subject to aooroval of a majority of the 

adult members of the Alabama and Coushatta Tribes of Texas." 

(Emphasis added.) Thus Congress terminated Federal supervision 

over the tribe. 

adoption of Public Law 627, the 

ConcurrentResolution No. 31 ~~' 

.In anticipation of the 

Texas 

(Acts 

Legislature adopted Senate 

1953, R.S.,~ p. 1078) authorizing the Governor to accept on 

behalf.of the State a transfer of the trust responsibilities of 

the United States respecting the lands and other assets of said 

tribes, and providing further: 

"That'the Governor is authorized to designate 

the Sta<ies 

shall rest, and the agency so designated shall have 

authoritv to oromulgate rules and regulations for 

the administration of the trust and the protection 

of the beneficial interests of the Indians in such 

lands and other assets." (Emphasis added) 

The Board for Texas State Hospitals and Special Schools 

was designated by Governor Allen Shivers as the agency to administer the trust. 

Section 2.of Article 1174b, Vernon's Civil Statutes, 

provides in part: 

- 

" 

. . .Effective September 

control and management of, and 

1, 1949, the 

all rights, 

incident thereto 

construction 

privileges, powers, and duties 

including building, design and 

of the Texas State Hospitals and Special Schools 

which are now vested in, and exercised by the 

State Board of Control shall be transferred to, 

vested in, and exercised by the Board for the 

Texas,,State Hospitals and Special Schools, 

‘ . . 

Section 3 of Article 3174b, Vernon's Civil Statutes, 

provides:~ 

'Section 3. The term 'Texas State Hospitals 

and Special Schools' as used in this Art shal~l~ 

mean . . .The Alabama Coushattl Indian Reservation, 

Livingston, Texas . . ,. and all other institutions 

-2864- 
Mr. Walter W. Broemer, page 4 (C- 593) 

heretofore or hereafter referred to as 'eleemosyyary 

institutions,' or 'hospitals and special schools. 

. . . 

. 

House Bill No. 1096, Acts 59th Legislature, 1965, 

Ch. 279, p. 552, codified as Article 54212, Vernon's Civil 

Statutes, which creates the Commission for Indian Affairs, provides as follows in Section 8: 

"Section 8. All powers, duties, and functions with respect to the supervision, management, 

:. and control of the Alabama-Coushatta Indian Reservation, previously vested In the Board of Texas State 

Hdspitals and Special Schools; and all appropriated 

balances, property, personnel, and records used 

by the Board in conjuction with such powers, 

duties, and functions are transferred to the 

Commission for Indian Affairs. 

Section 14 of House Bill No. 1096 provides: 

sion 

that 

'Section 14. All bonds issued by the 

Tribal Council shall mature serially or otherwise not more than 25 years from the date of 

issuance, . . ,II (Emphasis added). 

Section 15 of House~Bill No. 1096 provides: 

contained in this 

the Commission hav 

“Sent~ _-__-_._ on 15. -__ Subject to the restrictions 

act, the Tribal Council and 

e complete discretion in fixing 

the ftrm, conditions, and details of the bonds; 

. . . (Emphasis added). 

Any discussion of the powers and duties of the Commisfor Indian Affairs would not be complete without stating 

the Commission must have express authority to issue bonds 

and other negotiable securities , and thls 1s not a power tnat 

may be implied. In this connection, in Lasater v. Lopes, 110 

Tex. 179, 217 S.W. 373, 376 (lglg), the Supreme Court said: 

. 

"Without special authority, a court charged 

with the administration of the business affairs 

of a county is without the power to issue 

negotiable securities, depriving the county of 

true defenses against the original creditor. 

It is not a power to be implied. It does not 

exist unless expressly conferred by law. Such 

-2865- 
, 

Mr. Walter W. Broemer, page ?,(C- 5%) 

is the established doctrine in this State, 

and has been from an early time." 

added) 

(Emphasis 

As set forth In Attorney General's Opinion C-520, the 

control and management of the affairs and property of eleemosynary 

Institutions established by law were vested in the Board for Texas 

State Hospitals and Special Schools. Control and management of 

building construction on the Alabama-Coushatta Reservation was 

vested in the Board for Texas State Hospitals and Special Schools 

by'virtue of Section 2 of Article 3174b. Section 8 of House Bill 

No, 1096 transfers control and management of building construction 

to the Commission for Indian Affairs as the Commission's primary 

responsibility is the development of the human and economic resources of the Indian Reservation. 

It is our opinion that the express authority to issue 

public bonds and other negotiable securities by the Commission 

is governed by Sections 13, 14, 15 and 16 of House Bill No. 1096. 

Section 14 of Hou~se Bill No, 1096 specifically states the maturity 

of all bonds issued is to be not more than twenty-five years from 

the date of issuance. The,Commission's power does not exist unless expressly conferred by law. The Commission must operate within 

the framework of the express authority to issue bonds and cannot 

do indirectly what it may not do directly. The Tribal Council 

may issue revenue bonds or any other evidence of indebtedness 

only after having obtained the written approval of the Commission. Therefore, the Tribal Members cannot create a Public 

Housing Authority as a separate corporate entity to which the 

Commission and the Tribal Council could make a forty-year lease 

of State Trust Land to develop a low-rent housing project. 

SUMMARY 

The Alabama-Coushatta Indian Tribal Members 

cannot create a Public Housing Authority as a 

separate corporate entity to which the Commission 

for Indian Affairs and the Alabama-Coushatta Indian 

Tribal Members could make a forty-year lease of 

State Trust Land to develop a low-rent housing 

project. 

Very truly yours, 

WAGGONER CARR 

Attorney General 

AM:ra:mkh 

By: m m;;;t-, 

Alan Minter 

Assistant 

-2866- 
Mr. Walter W. Broemer, page 6 (C- 593) 

APPROVED: 

OPINION COMMITTEE 

W. V.' Geppert, Chairman 

Pat Bailey 

Arthur Sandlin 

Ben Harrison 

Malcolm Quick 

APPROVED FOR THE'ATTORNEY GENERAL 

BY: T. B. Wright 

-2867-