# The Attorney General of Texas

December 31, 1982 MARK WHITE Attorney General

Supreme Court Building P. 0. BOY 12548 Austin, TX. 76711.2549 512/475-2501 Telex 9101674-1367 Telecopier 5121475.0266

1607 Main Si.. Suite 1400 Dallas. TX. 75201.4709 2141742-6944

4624 Alberta Ave., Suite 160 El Paso, TX. 79905.2793 9151533-3464

1220 Dallas Ave., Suite 202 Houston, TX. 77002.6966 7131650.0666

606 Broadway, Suite 312 Lubbock, TX. 79401.3479 6061747.5236

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200 Main Plaza. Suite 400 San Antonio, TX. 76205.2797 5121225.4191

An Equal Opportunity/ Affirmative Action Employer Mr. Robert B. Baldwin III Chairman Opinion No. MW-594
Texas StateUniversity System Board of Regents 505 Sam Houston Building Austin, Texas 78701 Re: Whether institutions of higher education may spend ad valorem tax funds received under article VII, section 17 for constr"ction projects without coordinating board approval
Dear Mr. Baldwin:
Your letter requesting an Attorney General Opinion states as follows: Article VII, section 17 of the Texas

Constit"tion, until its recent repeal, provided for a state ad valorem tax 'for the purpose of creating a special fund for the purpose of acquiring, constructing and initially equipping buildings or other permanent improvements at the designated institutions of higher learning...' The constitutional amendment which repealed article VII, section 17 provided that ad valorem tax receipts which had been distributed to eligible universities 'may be expended for the purposes provided under prior law or for repair and renovation of existing improvements.' permanent

A number of universities have receivedad valorem taxmonies which they have not yet expended. Education Code section 61.058(8) requires institutions of higher education to receive coordinating board approval for 'all new constructionand repair and rehabilitation of all buildings and facilitiesat institutionsof higher education.' We respectfullyask whether a project proposed by a university must be approved by the coordinating board if the project is to be

p. 2208Mr. Robert B. Baldwin III - Page 2 (Mw-594)

financed in its entirety or partiallyby ad valorem tax funds. ArticleVII, section 17 was repealed at theNovember 2, 1982 election. ArticleVIII, section l-e of the Texas Constitutionwas amended at the same election toprovide as follows:

sec. l-e. No State ad valorem taxes shall be levied upon any propertywithin 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 taxes and may be expended for countypurposes. Receipts from taxes collectedbefore that date shall be distributedby the legislatureamong institutionseligible to receivedistributions under prior law. Those receiptsand receipts distributedunder prior lawmay be expended for the purposesprovided under prior law or for repair and renovationof existingpermanent improvements. The recently enacted amendmentauthorizes expenditurespursuant to prior law. SinceArticleVII, section 17 was "self enacting", CoordinatingBoard approvalwas not required for the constructionof new buildings financed entirely or principallyby constitutional tax funds. We thereforeconclude that construction financedby funds distributedprior to the enactmentof Article VIII, section l-e,may be undertakenwithout prior CoordinatingBoard approval. SUMMARY CoordinatingBoard approval is not required for construction financedby funds distributedprior to adoption of Artice VII, section l-e.

Attorney General of Texas JOHN W. FAINTER, JR. First AssistantAttorney General
RICHARD E. GRAY, III ExecutiveAssistantAttorney General p. 2209