**OFFICE OF**  **THE ATTORNEY**  **GENERAL OF**  **TEXAS AUSTIN** 

I Sknorable ICortfmer Brown zxeoutir8soorstary l'eaohsr 

## Retlrmemt

Sylrtem Au&in, ka8 Earoh 29, 1939

Dear Sir:

we are in ma nqueatirytho opinion OS 

### trustseaa? the Tea 8uder hrtACltl

2!9z3!%-1 tion Art101e Toa0her Retir **Conson~tlon** Sarah 99, 1999, to wheth8r tba'board OS Texas la 6luthQrlaed
on (1)and rexas canllt1tuS the Sunda OS the. J the Brasol River ;

a Comtitutfon, prwldea la

oomp~atloII OS **rra%d**

**,** Sor muh Rotlremont 0S the State 0S



### Actsbd 46thl& Senate Bill #49, now appearingas **Artlole** 2988~1, Se&a 9, S&eotlen (I),Bsvised OiVil **StatUttteS,** 1986, protim in part:

-The Etate Boclsd

OS Trustear &ml1 be the trwtaes OS the asveral Sunda as harein omtod by this &ot, and shall have Sull ptnsqr ta invest aad xeiweert suoh Sum&a tmbjeot to the SolZowing lltitatio~ and rbstrlotion#$Eon. Mortlmer Brown,Haroh 29, 1939, Paga 8

All retirement**Sunda,** M are raeelted by the maaatuy of the Xste of Texas from oontrlbutlonaOS teaohera'and employers~6 hereln provided,my be lnreatcdonly In bonds Of the United states, the State Of (i’cxas, or co~t.les,or CitieS, Or SOhOcldistricts Of this Stats, wherein Said COUtlCS, or Cities, or sohool districts hate not dstaulted in principal or intere6tcm bonds wlthln a period OS tan (10)Years, or in bonds issued by any agency of the waited State6 Government,the payment OS the principaland lnter- *St on which la @m'auteed by the Unltsd 

### States;an4 in interestbearlne notes or bonds OS 

### the tmlreraltyof Tax66 i66uedunder and by virtue oS Chapter 40, **Aot6** OS the Forty-third Lc~lalature,Seoond Called Geaaioa;

. . .*

The authorizationot the board to latest funds OS the ayata la llmlted to those ~laaass OS **bonds**pelaltt& by ths ~tltuti~ and **hots** oS the Leglal~ttara. 

### 'A0 mu6t deterrdns 

### than 1S the bonds issuqd by the Bra606 ~lrar Conaomation and ReolamationDlatriot iall within any of the olaasiSloatloaa listed abovs.

~_Article 16, hotion 59, Texas Conatltutfon,**provides** in part:

m(b) There loay

be oreated rithln the StateoST-6,
or the Statemay be 

### diridedinto, such number OS OOILMlVat&on and reolaaationdi6triOtS as may.be **datemlned** to be asasntlalto the aooqllahsnt of the ptlrp06~6 OS this smeadment to the ooaatltutiou,nblch dlatrlota 6hd.l b6 gorernmental**agenoiea** and bodlas politlo and OOTpOratO with auoh powers OS govarnmant and with the authorityto axerclaa suoh rQht8, prirllogoa and Suuctlona ooaoeraing the aubjeotmatter OS this amendmat as my be OOnSdrmd by law.
"(a) The Laglalkre shall authorize all such Indsbtedness as may ha necessary to provide all lmpro~emeut6and the malntcnance AereoS requisite to the aohlevemmntOS the purposes OS this ambndment, and all such ludebtedne666W be evidencedby bonds OS such oonsenatlon and reOl.a~tIon dlstrlota, to be issuedunder such ragubtions 66 6W (=Y) be presorlbedby law and shall also, authorize the le*Y and collectionwithin such districts OS all suoh t-66, equitablydistributed,a6 my be necessarY SOr the Papent of the interestand the oreatlon OS a SinBdnS Sund Sor the paymant OS such bonds; and also Sor the QaintenanOeOS c~~h districtsand Iarprovements, and such indebtedness shallbe a lion upon the proparty assessed for the paylaent thereor;provided tho Le&,alature ahall not authorize theRon. Eortimer Brown, bferoh29, 19959, **Page** S

lsaumce of ariy

bonds or provIa for any lnaebteflneas against any reclamation

### ai3wct. unless such proposition shall lYrat ic subzlttcdto the qualifiedproperty tsxpaying voter6 of such dlntrlct and the proposition edopted."

PUr6dEt t0 the fOmgOing OOkI6titUtioMdaUthOriZ6t~On the Draaoa River Coneervatlonand Rsol.matlonUistrlotwas or&d by Aota 1989, 41st Aaglslature,Sad C. S., Cpeofal hUa,.p. SS, Ch. 13, an6 aub6eqaantly

### emendedby Aots 19934, 4Srd Leg., 4th C. S., p. 5, Ch. 5; kcts 1935, 44th Leg., p.'56, Ch..19; **Acts** 1955, Uth Lw., 

### 1st **c. S.**  **p. 1529,**  Ch. 368. Ssotlon Z OS the orlglnalAct provide6:

W&e BrazoaMui- Conservationand Reolemtloa District la createdas a gorcmmeatal agonoy, a mnlolpallty, body polltio and oorporata, faatbd with 611 the authority as eu0h under the CoitStitutlOn and Lawa OS the State; .andshall have and be reoeted to exerolao 31 OS the powers OS such gorsrImwnta1apaoy and body po1ltio an& oorporateaa are expressly authoriaed In the provldona
or the Conatitutlon,'Seatlon59 OS Article 16, Sol: Dlatrlota created to co~6erv6,oontrol, and uttllae to.bensrioial service the stow an6 Slood watora OS the rivers an4 atreana OS the State, or'auohpowers as may be oouteqlated a& l.mpli& by the purposes OS this provlaion OS the Gomtltutioa, and OS may be conferred **by** General law, aad liptha provlalonaOS thi8 Aot;'and shall have 

### and be reoogniaed to exeroiaaall the rights and powers of au lndepstiaut govenmaatal agenoy,munlo~pallty,body politlo en4 

### oor-

. porate to Sormtlatsany and all plana deemed eaaeatlal -tothe operationOS the Dletrlot and Sor Its adminlatration in the oontrol, storlag,prasenation ard distribution to all u6sSul purposes of the atorm and Slood waters ot the Brazes River an4 its tributary streams; as such .Dlstrlot,shall have and be reao&aized to exerolae suoh authority and power ot oontrol and regulation over suoh storm and flood wctem OS the Braaoa River and its tribut&r168 as my be sxerolsedby the State ot Texas, 6ubJeot to the provlsloncoi the Conetltutlon end the **Aots** of the Legislature."

Unnbsr Scotion 8, the bounda~lea are to include aI1 **oOuSi86 lfing**  wholly or in part 1x1 the watershed.

of the fk'aZO6

**River end**  its tributaries to be determIneUby the State Board OS **Water** ~,ngineera.

# r

u 

# 11 :,’ :, Bon. Yortlmer Bran, MM-Oh 29, 1939, Page 4

, : ..

1 Under SeotIon 6, as a&ended, the Dlotrlot 1s to be ~oronmd by (I

boerd of 21 dlreotore to bo designatedby the State Board of i.atrr

i.nnC;fncsrs subject to the approval of the Ckmemor. Ihe circctors are to taice the oath of o:'Pice end mke bond payable to the Cletrict.

The amendstoryhota of 1935, 44th Uig., 1st C. S., p. 3527, Ch. 968, Sec. 1, provides ror the remiealon of ad nlomm taxes ror a period or 20 year8 oollected for general revenuepurposer,from oertain oountles, contingentupon a loan, grant or *llot- &ent from the UnIted.Stattsof &mesrioa, provided that the mount of ad valorem taxes granted ehall not exceed in any one year cso9,ooo.oo. .%otion 5 0r the above amendstoryact prorIdes:

. "The District Ehall have the authority and It is hereby authorized to issue Its negotfablebondq~se8ur66 :;,. only by pledge of the sums granted aud/or donated **by the**  % St&s or Texan an&/or out 0r any other ,aurrent rsvenuem f ?I?,. of tho Distriot In any suob amount8 a6 may **be** authorize p. **by** the Direotorsof suoh Diatriet,uhioh suam ,till ba



### paid to the legal holders of tmld bonds, ror the pnrpo60~ J;, .'i,. or purohasing,aoquIrIng'anQ/or**oondemnlng** lands, leases,

eesementsend/or aoqulttanoes,rights-of-wey,atruotares and/or buildings, equiprsnt **and/or** operation 0r proper structures,&urns, m8enoirs, uultable Sor the aontrol ol the remrrent, devastatiug floods in the valley or the Brato River, rhiah have, over a M. : period or years, oaused a deplorable losu ol *e ml6 RTO~X-ty, 8td the erOsion of the soil an4 a **dsplethn** of the tertlllty oi the lauda In said ~ellep and the hater-shed soned by the braao8 Biter in Texas, and the public hIghray an4 structuresand lands belongLng to the State of Texas oltuatedwithin said water-shed; all of which ia hereby declared to ba a pub110 aalns&ty, and doing all thinga necessary In the execution oi.the ptUpO608 for which the DlatriCt Is areatad aIid eSIab, The money8 horein and hereby granted and/or donated to the Srazos Blver Conservationand Fieolamatlon District are deolareb to be for the purposes of disoharglug obll~atldnsherein authorized.*
**titbough we**  **hare** not been **prwkmnted ritb**  oopiee or deeariptlcns or the bouds which It is **understood** will be offered to the Board, **wo fmmnm**  that they **are** the bonds Ismmd **underSeoti?n b**  **RW** able out of revenues and donations by the State of Tams.Eon. Kortlmer Brown, &oh 29, 1939, Pege 8

be **do** not thhk that It will adaIt oi serious **doubt** that the **bonds** In questionare not "bonds **of** the Ualted **Stetea**

**. .**  **. or**  counties or citlos or this ;tate."

Tho weudetory hot of 1935, iat Cailed Lession, p. 1527, states that Vhere IO **bereby** donated and granted by the State of Texas to the Braaoa Liver Conservationaad ZeolemetlonpIstrIct,
a stateagency, erected by the Aot of the Leglsleture **at** the **state OS**  **Texas**

**. .**  **. ”**  **A reading**  **of** Section 2 or the original Aot and Its aubaequeateueudaenta **Eakea** It clearly appear thet the district la
a body oorporateend ~veramental agenoy dlaoherglng a gorernmsntal mnctlon. Sea Bratos Mver Conservationand Lieolaaetlon District v'.t&Craw, 91 z. ?i.(2.) 665. However, It does not fol&m that the authoriaedbonds Issued **by** the District are'"bonds of the State of Texaan, as aonteapleted**by** the Constitutionand statutes relating to the Teacher3etIreaent Syatea.

**Tha Aota**  of the Legialeture ox-eating this Dietriot end the bonds in quoatlonare thoroughlydleousaed **by** the Supreme Court' of Taxes In Braaoe River Conaervatlou end jiaolamation Diatrlot v. Kocmw (lOs6)OlS.'k. (S)es5. 'In peasing upon the objeotI.on thet the laatiiuoe

of these bonds violeted the State Constitution,-the oourt stated:

*The obJectIon that the ;aotla en attempt to authorize the board of the district to oreate a **debt in**  beheld or the state, or laud the oredit or the state In rloletion or the inhlbitorpprerleIona or Seo. 49 end 50 of Art. 3 of the Cohatltution, is rlthout merit. MO debt
oa the pert of the state **IO to**  be oreeted nor la the state*6 credit loaned ror thet purpose. sheae queetiona
are ioreoloeedby the opinion of thI6 oourt in the.oase
or city of kmmaea Paso v. S. k. ala."~ Keeling, ll.2 Tex. 339, S4T

Under the oonatruotionplaced upon these bonds by the Suprem **Coutit or**  Texas, they are not Issued by or upon oredlt of the Stete but are Issuedby the iieolametlon District eeoured **by** end **pay** able only **out** 0r donations 0r ad valorem texea rmm the State or Texas and revenues to be derived from the district.

The Constitutionand statutes expressly **reoognlee** the dietlnctlon bstueenbonds Issued by the oentral government Itself, end those Issuedby e governmentel **sger~oy, by**  **expre6aly** snumereting **bands** Issued **by** the United States and bond6 Issued **by** an **aGency ’** **or** the **United** States Government. 1t would ap~peer that li it was intended

### Eon;Mortlnr Brown, Em-ah 29, 19S9,

### Page 6

to includeall agenolea ot the sad statutorypro+laIona would Ftatc Goverment, the oomtitutlonel have expressly so stated.
If, however, &dcr shy constructionthe provision Yasy be Inrestedonly In bonds or
. . i tho titate of Tcxee*may be so COIL

### atruedas to mean w&oternmentel

### agsncfesor the State of Texee-, there la yet another dIfiIoulty. **It Is**  **a** 

### car&ins1**rule** 0r 

### constrtmtion that "the expression of one thing IO exclusiveof another.* 

### 13s rule 1s explained in 39 Tax. Zur. 9. 189, as rollowe:

" The mxlm 

### algnirIeathat the expressmention
or enuAeGa~Ion~0r'onoperson, thing, aonsequenoeor alas6 Is tantaaouut to an express exclusionof all others. 

### Andahon It is 

### AppiiOabitt, arrimietirewords ipply a negative or *hat Is not arrirmed,negativewords Imply
an a~irmetlva or what IO not negatived;**end** a protlalon llmltlnga thing to &e done In a partlouler form or manner Implies that It shall not **be** done othenlae.a


### Slnaeoountleaand cItloa 

### are also governmentalagenolea 

### RWfOlTRiryl

a gomunmeu tal Cuaotlon. their expraaa auumeretlon in Constitution894~

Statutes perteinitig to Tesoher Ret1at ma, least, Iapliedlyexcludes other go?ernmentalageaoiaa under the above rule of aonatruotlon. the at

pie do not express an opinionupon the oenstltutlomali-tp of suah provIsIon, but call attention to the taot, as auppertiug this lnterpretatlon,that in Article 

### Z9Z2-1,Ssotlon 

### 9, SubaeetIon 1, the Zeglalature l'onndit necessary to expresslymention Laohool dIatrlotaof this State

. . . and Interestbearing notes and bonds of the Uuireralty ot Texas Iseued under **and** by virtue ot 

### Chapter40, hots of the 4Srd Legislature, Znd **Celled Se6aIon.w**  &ah or these
are proporly oleaaIfIed as governmentalagenclea of the State of Texea, and their enumeration emphasitaatb~eintentionot the Legialeture to a9eoI~Ioallyprovide tor the bonda 13 wbloh Teacher Retirement Fundray be Invested and to exolude all othcra.

The fact that the distriot is 8 St&e egeney doea not hacessarllypreclude such distriot from also serving as en egeney or theUnited States Government. Be hero not bean presented with the oontrectbetween the district end the Pedsral Goverrueent, but tor the purpose or dIspoaIng of the issue, assuIt-e that It say be Ouch
en agsnoy. The constitution and statutesprovide that the ~principal sad lntereaton bonds issued by 

### ouch**agenop aNat**  be guaranteedby the United Stetea Govemment~. lnaofer 66 we have been able toEOSL Portlmer Brown;~Yaroh SQ, 1959, Page I

aacertaln the United states Government ha8 aade en outrightgrant to tba dlatrict or OSO,092,S46.00to erect dams, while the bonda in questionare In addition to the Gnited States grant end are to purciase lauds, easements, etc. to operate the proJect. i*e also understand that pert of these bon&, in the amount or about ~400,000.00,are now held in escrow by the Dnlted %atea Government, to as8ure the completion of the Poos~mKingdom Dam being eonetruatedrlth money from the federal grant. It 18 stated in the prospectus lseuedby the agent marketing these bonds, that the bontjs are 86Cure.d by "a ilrat pledge of the tar money donated **by** the state and by a 8eOOndSI-y pled&e of revenuesor the Distrlet xhlch may later aaarue to It.* It oacurs.tous that 

### ir the payment
or these bonds ~38 guaranteedby the lederalGovernment it vio~Ld eerteinlyhave been mentioned in this proSpeCtUS.

Thla.Department is of the oplnlon that the Board or Truateee oi:the Teaoher Retirement syet6m Or'Texaa 18 not authorizedby the prorlelonsof Texae ConetltutlonArtiole S, sec. 4&a end Artlole SOW&l, Eeotlon 7, Submotion (I), to Invest any of the lpnds of 

### theTeacher Retiresrant Sy8tem ln bond8 i88ucd by the Bmzos River Coneervatlonand Reolamatlon Diatriat.

YOUl-8 Very tNly
ATTORRETG3JERALOyTXAS