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 

4309 N. Tenth, Suite S 

McAllen, TX. 76501-1665 

5121662-4547 

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 State University 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The constitutional amendment which repealed 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 

received ad valorem tax monies 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 

construction and repair and rehabilitation of all 

buildings and facilities at institutions of higher 

education.' We respectfully ask whether a project 

proposed by a university must be approved by the 

coordinating board if the project is to be 

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

financed in its entirety or partially by ad 

valorem tax funds. 

Article VII, section 17 was repealed at the November 2, 1982 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

taxes and may be expended for county purposes. 

Receipts from taxes collected before that date 

shall be distributed by the legislature among 

institutions 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 amendment authorizes expenditures pursuant 

to prior law. Since Article VII, section 17 was "self enacting", 

Coordinating Board approval was not required for the construction of 

new buildings financed entirely or principally by constitutional tax 

funds. We therefore conclude that construction financed by funds 

distributed prior to the enactment of Article VIII, section l-e, may 

be undertaken without prior Coordinating Board approval. 

SUMMARY 

Coordinating Board approval is not required 

for construction financed by funds distributed prior 

to adoption of Artice VII, section l-e. 

Attorney General of Texas 

JOHN W. FAINTER, JR. 

First Assistant Attorney General 

RICHARD E. GRAY, III 

Executive Assistant Attorney General 

p. 2209