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 of for 

research purposes by Board 

of Regents of Texas State 

College for Women. 

D~ear Sir: 

We acknowledge your letter of recent date wherein you 

request an opinion of this Department concerning the following 

submitted question: 

“Does the Board of Regents of the Texas State 

College for Women have authority to authorize expenditure of its local or general funds for research 

purposes?” 

Article 2654d, V.A.C.S., providing for the control of the 

type of funds in question by the governing baard of State institutions 

of higher learning provides in part as follows: 

“Sec. 1. The governing boards of. . . including 

. . . College of Industrial Arts . . ., may retain control respectively of the following sums of money collected at each of said several institutions in carrying 

out the functions of an educational institution, such as 

funds collected from student fees of all kinds: charges 

for use of rooms and dormitories, receipts from meals, 

cafes and cafeterias, fees on deposit 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 and local 

institutional income of a strictly local nature arising 

out of and by virtue of the educational activities or 

. 
Hon. S. B. Whittenburg, Page 2 Opinion No. V-54 

research or demonstration carried out by each and 

all of said several schools. 

. . 

. . . 

“Sec. 8a. No part of any of these funds shall 

ever be used to increase any salary beyond the sum 

fixed by the Legislature in the appropriations bill, 

and this law shall be subordinate and subservient to 

the biennial appropriation bill for the support of the 

several iaot@@ions herein mentioned;” (UnderscorWI -4 

Under Article 2624, as amended by Acts 1945, 49tb Legislature, Ch. 156 and 171, pages 203 and 208, 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) at page 

804, the Act appropriating institutional receipts, reads in part as 

followa: 

” 

. . . and all proceeds . , . irom f&es and any 

land all other receipts 8h&ll &ecome and are hereby 

appropriated as maiiit@aance or Contingent fund to 

be expended under the direction and with the approval of the governing board having jurisdiction. 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 and improvement of said fnstitution. Any balances remaining to the credit of any 

of said institutional local funds at said institution or 

in the State treasury at the 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 

of higher learnin is controllad by the provisions of Article 2654d 

and Subsection (3 ‘3 of the General Provisions of the Appropriation 

Bill, Ch. 377, Acts 1945, 49th Legislature. Article 2654d, Section 

1, providing that said governing boards may retain control of said 

monies, and may use such amounts in carrying out the “function8 

of an educational 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 of the General Appropriation Bill, Ch. 377, the said governing boards are authorized to use said funds as they zhall deem 
Hon. S. B. Whittenburg, Page 3 Opinion No. V-54 

necessary only for the “support, maintenance, operation and improvement of said institutions,” Thus, such control is made subservient to the will of the Legislature as expressed in its biennial 

appropriation bill, and the 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 of higher learning, and scientific 

foundations to increase the sum of human knowledge, we believe 

that research activity in State educational institutions of higher 

learning may be considered as one of the proper “functions of an 

educational institution. and within the contemplation of the phrase 

as used in Article 2654d, Section 1. Further, that an expenditure 

from the local funds of said institution of higher learning for research purposes is authorized under Chapter 377, Acts 1945, provided the expenditure is made for the benefit of the institution, and 

is deemed necessary by the respective governing board for the 

“operation and improvement” 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 in the Appropriotion Bill. 

In answer to your 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 and improvement of the college, and provided the expenditure 

will not be 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:s local instirutrorzal 

funds, as defined in Article 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 *