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

Honorable WIlllam L Xerr, Ymnbar Board of Regsntr, Stntn Tcachera Collegra That Rhtlonal BankBuIldIn Midland, Texaa Dear Sir: Oplnlca No. O-6661

Tour latter of Apll on the above ootbienaed questio aIdsration, mdsratand tha 

### r0u0w-8; **The tade**  Taachcra Oollsgea pqmant or tuitio tending the oolle in aubatanoa, aa i to om or tha &ate

rent pqroll aad **efpenaea~** dviaad whether It has tha f aonry **to** meet there ourrent iroumatanooaaubmlttsd. al Approprlstloa Bill, Aota 1945, 49th salon, Chapter 377, dt0r making ftemiaed paymmt of lmohrra’ l alnrlea and for the nt andmalntananos oi the Tcauhera Collegea of thr Oenrral Protlalona of raid Aota aa iollowar Wubaeotlon (3). xnatitutIonal Rooelpta. * l

### l
,. bonorablr’ WIlllam L. Xrrr - Pege 2

and any endall othrr r8orIpta 

### 8h811bao:ma aad **are** h6rrby approprlatrd ea6eIntrnenoa or oontlngant fund to be arpendrd **uadar** the dlraotioa end with tha approve1 of thr governing board having jurladlotlon. Bald governing board8 are euthorlaed to uao out of tha proorda OSl

ald rroripta end funda, In aooordano8 with the provIsIon of this Aat, auoh l mounta ea they ahell deemnroraaary **for** thr aupport melatonanoa, operation end Improve.arnta of aald fnatltutlona. Anybelenora remalnlng to the oredlt or any or raid lnatItutIonal looal fund8 at arid Inatltutlona or In thr Stete Treasury et the on6 of eny rlaoel year era hrreby rrepproprlated ior the ebovr-mmtlonrd purpoaea tar the ruooeeding 

### yoer.* Thla provlalon, l

ubaeotlon (3). oonatltutaa an appropriation by the Laglalature to the T8eohera Oollagea of the tultlon and other irea. the oollegea mayreellea byvlrtua of Artlola **2654b-1,**Saotlon 4, Vernon*n Annotated Clvll Statutea, -iran tha government under the a. I, Bill of RIghtal furtheraora, weare of the oplnlcm that these iunda, treated by the Leglaleturr aa pub110monlaa, ~111 oonstltuta epart of the looal or InstItutIonal 

### fund8oi the rrapeotlvc oollegsr and are aubjsot to dlaburaement under the dlreotlon and authority of ths Board of Rag~;:o;~r aupport end meintananoa of Btata Taaohara Collegea. **2647,**Beotlon 11, VernOn’a Annotated CIvIl Statutsa.

Artlola 265456, Seotlon 1, Vernon’8 Annotated Civil Statutea, provider In part aa followar

“TheOovernlng Board of tha * * * (East, North, SamEouaton, Strphaa F.Auatln, Southwast,~ Sul Roaa, end the Wart Texaa) Teaohera College8 l ***** **+, may**  **rrtain** omtrol rrapeotlvrly OSthe following rum8of monry oollroted et raoh of raid **several** inatItutIona ‘In gerrylng out the funotlona of en l duoatlonal Inatltutlon, l

uoh aa ruada otillrotsd from student iera oi all kinda; ohergsa ior uaoof room8 and doraltorlea; rrorlpta rromnrala, oafs8 and oafrt~riea; f8ra on deposit rrfumleblr to atudsnta under orrtaln oondltlona; raoelpta rros l ohool l thlotlo aotIvltI8r; Inoomr.fromatudsnt publloetlona orother student aotlvltlsa~ rroripta rroml alo ot publloatlon produota and mIaoallanroua auppllea and rqulpmcmt~ atudrnta’~onorabla NIlllam L. 

### Kerr- Paga ]

voluntary dapoalta ot money with raid 

### l ohoola for aafrkarplng: all other feea end loo81 InstltutIoaal lnooma 0r~a atrlotly locel nature 

### l rlalng out 

### 0rand by vIrtu8 of the 8duoetIonel aotIvItI8a, or r8a8aroh or daaonatratlon oerrlrd onby asoh end all of aeld severe1 sohoola.w It la olrer, that raid Artlola doer not glvr rxprsaa authority to th8 Board of Regent8 **to** plsdg8 loo81 runda whloh ml be eveIlabl8 la the futur.8,nor doer it give axproaa euthority to the Boardto borrow moneyto meet anrmarganoy. Conatruiag 811 aeotlona of Artlolr 26546 tOg8th82, wethink the Lagialeture Intenda&only **to** give loo81 boarda the right **to** Leap auoh local **or** Inatltutlonal runda In a loo81 dapoaltory, Instead qf 

### requlrlng that they be trenamlttad to the Stat8 Traeauryg that th8re waa no intention to oonfar on auoh board8 thr power topladgr aaoh looel runda aamight eoouaulete ln the ruture. Furtbaraor~, the Stat.8 la not boundby aa egraeaaat of it8 agent to pey Interest, unleaa there la alaw authorizing the agent to enter euoh afantreat. 3b Taxer Jurlaprudanor page 8551 15 Toxaa 72. The ‘:ower to pledge auoh runda ia, we thbk, one whloh the **Board** of %genta would not have In thr abesnoa of 

### l xpr8aaad L8glaletlvr authority. Pub110 

### offloara

end governmental and edmlnlatratlva boarda poaaoaa only l

uoh par8 aa lra rxprrsaly oonrarrad on themby law or’era n8oaaaerIly ImplIad from the powrra oonfrrrad. 34 Teraa .JurIaprudano8 4401 Fort north Cevelery Club v. Sheppard, 125 hxea 339, 63 S. W, 26 660.

A&a, with **raapaot** to the **matter** of LeglaletIve Intent w would quota in pert, rromthe Eduoat:onel Appropriation Bill, aupra, Subaaotfon (41, Looel D8poaItorIaa, aarollowar

et*+
*It la hereby drolerad the L8gIalatlv8 Intent that the governing boerda andbeeda of thr aavaral State Inatltutlona o? higher 18ernlng ahall not bor**row** moneyfrom eny peraon,firn **or** oorpcretlon to br repaid out oi local funds, other than la npaoIfIoally authorized by lcgIaletlve aneotment.~ iuaballeva, turther, that there la yet en eddltlonel raeaon that would preoluda en Implloation of inplled ower n8oaaaarlly in the Board ofRegent8 to borrow money or pledge P 0081 **fund8** whloh$onorablr Wllllam L. Xrrr - PIga 4

rr~ **be** l

vallabla Qi the future, la tha l ba anor

of la rzprraaad
**#wtllW** OOtIfarringthe power. Byvirtua o? the provlalona o? ~tlola III, Srotlon LO,Conatltution or.Toxea; Arta. 4351 and b35la Varnoa’a **Annotated** 01~11 Statutra, tha Lrglalatura h8a **art** upth8 pooedura bywhloh the ameaagera 

### orState Ina~ItutIona or oaar peraona la Texaa with ths power or duty of mntreotlng for 

### l uppllaa or in any nannarplrd6ing themthe oradlt o? the Stat8 ?ca any da?Ialanoy that slay uiaa under their menagaaaant& oontrol* m8yl

xtrIoata thamaalvaa iron oaaual darloIanoIaa unroraarebla when epproprIetlona wera made..,:Thefeat that the legIaletura hea praaorlbed the method to 

### be l nployad la oaao o? drflolant apoprletlona would rurther praoluda, wa think, an lniaranoe o? EPlied rower La the Board o?Ragenta to authorize the ~borrowlng o?moneyfor the purpoaaa axpraarad herein. **Wa do**  not **go** Into the queatlon o? the evelleblllty to Taaohara Collagaa o? dailolanoy approprlatlona under the faota ateted, but In lieu thcrao? etteoh and formrd harewith Attorney Ganarel Opinion O-2118, approved funs UC 1940, whloh dlaouasar that mettrr, oomplstrly.

In the light o? the atet:~taa end raeaona haraln above dl.eouaecd, It la the oplnlon o? thla department that your quaetlon l uat be end la anawerad in the nagetlva.

Truatlng the ebova 

### l etIa?aotorily lnawra your lnqulry, 88are Your8 vary truly
**AlTORNXY**GENERAL

OFTJUAS

BY~fP%

Ohratrr B, Olllaon

. Aaaiitent

aaaloaura