R-54



## THE 

# A NEY

OF%-EXAS
AUSTIN.TEXAS '



## Jan. 28, 1947

Hon. S. B. Whittenburg, President Board of Regents Texas State College for Wanea c/o Amarillo Times Amarillo, Texas Opinion No. V-54 Re: Local funds or institutional receipts, expenditure offor research purposes by Board ofRegents of Texas State College for Women. D~earSir:We acknowledge your letter of recent date wherein you request anopinion ofthis Department concerning the following submitted question:

“Does the Board of Regents ofthe Texas State College for Women have authority to authorize expenditure ofits local or general funds for research purposes?” Article 2654d, V.A.C.S., providing for the control ofthe type of funds in question by the governing baard of State institutions ofhigher learning provides in part as follows:

“Sec. 1. The governing boards of.

. . including

. . . College ofIndustrial Arts

. . ., may retain control respectively ofthe following sums ofmoney collected ateach of said several institutions in carrying outthe functions of aneducational institution, such as funds collected from student fees of all kinds: charges for use of rooms anddormitories, receipts from meals, cafes and cafeterias, fees ondeposit refundable to students under certain conditions; receipts from school athletic activities; income from student publications or other student activities; receipts from sale of publication products and miscellaneous supplies and equipment; students’ voluntary deposit of money with said school for safekeeping; all other fees andlocal institutional income of a strictly local nature arising out of andby virtue of the educational activities or .Hon. S. B. Whittenburg, Page 2 Opinion No. V-54

research or demonstration carried outby each and all of said several schools.

..

. . . “Sec. 8a. No part ofany of these funds shall ever be used to increase any salary beyond the sum fixed by the Legislature inthe appropriations bill, andthis law shall be subordinate and subservient to the biennial appropriation bill for the support ofthe several iaot@@ions herein mentioned;” (UnderscorWI -4 Under Article 2624, as amended byActs 1945, 49tb Legislature, Ch. 156 and 171,pages 203 and208, the name “College of Industrial **Arts ”**  **was** changed to “‘Texas State College for Women.*

Acts 1945, 49th Legislaturl), Gh. 377, Appropriations -- Educational Institutions, General Provisions, Subsection (3) atpage 804, theAct appropriating institutional receipts, reads inpart as followa: ”

. . . **and** all proceeds

. , . irom f&es and any landall other receipts 8h&ll&ecome andare hereby appropriated as maiiit@aance or Contingentfundto be expended under the direction andwith the approval ofthe governing board havingjurisdiction. Said governing boards are authorized to use out of the proceeds of said receipts and funds, in accordance with the provisions of **this** Act, such amounts as they shall deem necessary for the support, maintenance, operation andimprovement of said fnstitution. Any balances remaining to the credit of any of said institutional local funds at said institution or in the State **treasury** atthe end of any fiscal year are hereby reappropriated for the above mentioned purposes for the succeeding year,” The expenditure of local funds collected by institutions ofhigher learnin is controllad by the provisions ofArticle 2654d andSubsection (3

‘3of the General Provisions of theAppropriation Bill, Ch. 377, Acts 1945, 49th Legislature. Article 2654d, Section 1,providing that said governing boards may retain control of said monies, andmay use such amounts in carrying out the “function8 of aneducational institution,’ also prohibits in Section 8a thereof, their expenditure in any attempt to increase any salary beyond the sum fixed by the Legislature, Furthermore, under the provisions ofthe General Appropriation Bill, Ch. 377, the said governing boards are authorized to use said funds as they zhall deemHon. S. B. Whittenburg, Page 3 Opinion No. V-54

necessary only for the “support, maintenance, operation andimprovement of said institutions,” Thus, such control is made subservient to the will of the Legislature as expressed in its biennial appropriation bill, andthe expenditure of local funds may only be made for the benefit of the respective institutions.

“Research” being the method commonly employed by modern universities, institutions ofhigher learning, and scientific foundations to increase the sum of human knowledge, we believe that research activity in State educational institutions ofhigher learning may be considered as one ofthe proper “functions of an educational institution. andwithin the contemplation ofthe phrase as used inArticle 2654d, Section 1. Further, that an expenditure from the local funds of said institution ofhigher learning for research purposes is authorized under Chapter 377, Acts 1945, provided the expenditure is made for the benefit ofthe institution, and is deemed necessary by the respective governing board for the

“operation andimprovement” of said institution. However, the said local funds may not be used to supplement or increase any salary beyond the sum fixed by the Legislature inthe Appropriotion Bill. Inanswer toyour question, it is our opinion that under present existing law, the Board of Regents of Texas State College for Women has the authority to authorize expenditure of its local institutional funds for research purposes beneficial to the institution, the governing board deeming same necessary for the oporation andimprovement ofthe college, andprovided the expenditure will notbe used to increase any salary beyond a sum fixed by the Legislature. SUMMARY

The Board of Regents of Texas State College for Women has authority to expend it:slocal instirutrorzal funds, as defined inArticle 2654d, Section 1, V.A~.C:S.;, for research purposes beneficial to the Ckllege, subject to the prohibition set out in Section Ra,Article 2654d, Acts 1933, 43rd Legislature, Ch. 221.
APPROVED Yours very truly, ATTORNEYGENERALOF TEXAS

**OF** TEXAS Chester E. Ollison

CEO:djm: sl APPROVED - OPINION COMMITTEE BY -BWB - CHAIRMAN *