. . 

OF TEXAS 

pibnnc. tinning Oplnlar lo. V-1067. 

State Bard of Oontrbl Rsr Authority of the Board 

Austin, Texas of Control to approve 

payment in advance for 

aaaual rental on buslDear Sirs lleas machinea. 

Your request for an oplnlon Is aa followsr 

"This oiflce is in receipt of voucher 

ntni~ber 26243 from Texas Technological College in favor of ths Intsrnatloual Business 

Maahlaes Corporation. The total amount of 

said voucher belag $6,8g2.80. This amount 

1s the total rental for one year from September 1, 1949, through August 31, 1950. A 

question la raised as to whether or not ve 

are authorized to pay for the rental of such 

squf$aeent prior to actually having received 

the seml'aes ." 

8) of Rouse Bill 19, Aots filet 

approprlatlon for 

barnlng) pro- 

'Rental of llrohlnes and Bqulpmsnt. lone 

or the momejs herein appropriated shall be 

used for the rental of office nachlnes or 

any equipabnt of any kind vlthout.flrst having presented a requlsltlon for the rent81 

thareof to the Board of Control and secured 

Mid Board's written approval thereofj and 

the State Comptroller, or any local dlsburszogf;gr, still not issue varnnts or 

pa-at of Statzv;+ntal vlthout 

said Boanl s written a 

the government or aay r fate employee shall 

. A0 agency OS 

pemt any seller who has bid on new nchlnes 

or naw equipment of any kind to deliver any 

used or rented equipment in rulfillpent of 

such ordec, even though said equipment has 
. . 

eon. R. 0, unniag, page 2 (V-10671 

peh.m;daby the agono so drolding to 

. 

oionsr 

we quote the 

Se&fan 6 or 

or Toxasr 

r0zloring 0onatftutionai proriArtiole VIII of the Oonatitutlon 

"Ro money ehall be drawn from the 

Treasury, but la pursuanoe~of sp~olfio 

approprlatlon8 mid0 by law; nor shall any 

appropriation of romy be made for a lcnger tern than two years exoept . . .' (Fe 

oeptlon not applloablej 

Seotlon 4g of Article III or the const1tut1an 

of Texas: 

“lfo debt shall be oreated by OF on 

behnlf or the Stee, exoept . . .” (lb 

oeptlon not applloable) 

0r Thxasa 

Section 50 of ArtlOl@ III of the Constltutlon 

'The Legislature sball have no power 

to give or to lend, or to authorice the IVlag orlonding, of the oreditofthe Sta f e 

in aid of, or to any pmoon, assooiatlon or 

oorporatlon, whether muniolpal or other, or 

to pledge the oredit of the State in any aannor whatsoever, for the payment of the llabllltlea, present or prospeotlve, of any 

iadlvldual, as8oolation of lndlvlduals, 8uniolpal or other oorpomtlon whatsoever.* 

seotlon 51 of Art1010 III of the Oolutitutlan 

or TMasr 

"The Leglslatao eh8llmonopow~~to 

ma kae 8y g r a 8t or l uthcirlm them 

any yant of publlo 8onep to any 2 in vldual, aemoolatlon of ladlvldu818, -0% 

other oorporatloqwhat oevori . . . 

omptlon not applloablo f 

p" 

1 or 

mSinoa payment of rental of the equipwrt in 

qUMtlon is to be paid 00t of ourrent apprOprUtlO!Im,the 
I . 

Bon. R. C. Ianrug, page 3 W-1067) 

payment IS not vlolatlvo or Sectian 6 of Article VIII or 

Sootion 49 of Artlole III or the Constitution of Texas. 

Charles Sorlbxmr*s Sons v. Harm, 114 TM. 11, 262 S.W. 

(1924) . 

110 m+m 

In deterWnlng whether an expend%t~ of pubiM, 

oonstltytma girt or a grant of pub110 mmthe primary ~uestlon is wbsther the SundB are used 

r0r a 'public' or private' purpose. The b0dit 0s the 

State from an expenditure for a 'publlo ptwpoee' is in 

the nature af oonslderatlonandthe funds exDendedaro 

therefore not a gift 

l t0d thcerrai.’ 

even though private p&one are bon- 

. Jansmn, 16 Ca1.2d 

276, 106 P.2d 11, 1 

The expenditure in the instant ease is for a 

publlo purpose and the State is reoelvlng valuable oamsidorati0n for the 0xpsndmdrs 0s its funds, to witt the 

uee and benefit of the business naohlms for a period or 

one4 par. 

Therefore, it la our opinion that the payment 

0s rental in advanoe does not constitute a "grant 0s pub110 mcmey8" within the meanzng of Se&ion 51 of Artlole 

III 0s the c0mtmtm 0s ~0x88. 

In Bannock County v. Citizen8 Bank and Trot 

%l%%'%nt&r-•thm 9rovlslons litiir:~hooi?% 

139 22 P 26 m tb S C 

stltutiap aoh plovldGd that no oouaty shall "lemd or 

plodgo the credit or faith thareof or laur its oradlt to 

any lndlvidnal, eta: The Court stated% 

l In interpret 

?I 

the seotlons or the 

Comtltutlou in quo0 am, the language employedmustbe talcenand uxlarstood lnlts 

natuval,ordknary,genera1,andpopular 

Selas~. . . . In thf3 popular naule, lending or Lw mey or oredIt is at on00 

understoe to man a tronsaotiarr creating 

the0~11t~n~ti0n0rb0m~er8ad 

lender, SD vhloh the mcmoy is borraed for 

a ria tim, aad the bamow0r praiws t0 

repa~thaamouut~crradatastatodt~ 

in*ba future, with laterest at a rmtd 

And tht is tlm same, then in whluh 

tb iulguago rp1oJedinthoso seOCi~muBt 

be understood, and so understood no oouaty, 

r0lr example, sbalz lead or pledge its oredit or faith, dlreotly or indlroatly, or In 
IiOn. R, 0. Lannlng, page 4 (V&1067) 

any manner whloh would oreete the oustomary 

relation of borrower and lender." 

It IS Our Oplniou that the pay+& Of pSntai 

in aavaaoe doer not in any manor oreate the oustomary 

rolatl~hlp of boimwer and lender and such payamt la 

not a lending of the Utate'8 oredit* within the meanlx@ of Seotlon 50 of Avtlole III of the Oonstltution of 

Texa8. 

It was held in Attome Oeneralts 0 inlox go. 

O-6246; dated October 27, 1944, &at the Camp e roller was 

8uthorlsed to pa 

la l dva noon e a % 

out of oument l pproprlatlons premlpu 

lve ysar fire lnsuran~e polloy on bulldlags of The Unlverslty of Texas. 

In view of the foregoing it 1s our opinion that 

payment la advanoe of rental ou bualuess mohlnes used by 

the State Institutions of lUgher Learnlug la not vlolative 0s sections 50 and 51 0s Article III 0s the c0nstitutlon of Texas. You are therefore authorized to honor 

the vqnoher under the facts submitted. 

Payment in advance of rental on business 

machines Wed by the State I~tltutlous of 

Hlghav Learnlag is authorfeed provided payment is mde from ourrent a proprlatlons~suoh 

aoticah does not violate Seo e ions 49 50, or 

51 of Artiole 111, or Section 6 of krtlole 

APPROVBDl 

J. C. Davis, Jr. 

county Affairs mvfriaor 

Joe Greenhlll 

First Assistant 

Touxr very truly, 

PRICE IMIEL 

Attorney (teneral 

Prloe Daniel 

Attorney General 

JRsbh:mw Aaslstant