OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

Honorable WIlllam L Xerr, Ymnbar 

Board of Regsntr, Stntn Tcachera Collegra 

That Rhtlonal Bank BuIldIn 

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 

iroumatanooa aubmlttsd. 

al Approprlstloa Bill, Aota 1945, 49th 

salon, Chapter 377, dt0r making ftemiaed 

paymmt of lmohrra’ l alnrlea and for the 

nt and malntananos 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 end all othrr r8orIpta 8h811 bao:ma aad are 

h6rrby approprlatrd ea 6eIntrnenoa 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 OS l ald rroripta end funda, In aooordano8 with the provIsIon of this Aat, auoh l mounta 

ea they ahell deem nroraaary for thr aupport melatonanoa, operation end Improve.arnta of aald fnatltutlona. Any belenora 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 may reellea by vlrtua of Artlola 

2654b-1, Saotlon 4, Vernon*n Annotated Clvll Statutea, -iran tha 

government under the a. I, Bill of RIghtal furtheraora, we are of 

the oplnlcm that these iunda, treated by the Leglaleturr aa pub110 monlaa, ~111 oonstltuta e part of the looal or InstItutIonal 

fund8 oi 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 

“The Oovernlng Board of tha * * * (East, North, 

Sam Eouaton, Strphaa F. Auatln, Southwast,~ Sul Roaa, 

end the Wart Texaa) Teaohera College8 l * +, may rrtain 

omtrol rrapeotlvrly OS the following rum8 of 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 uao of room8 and doraltorlea; 

rrorlpta rrom nrala, oafs8 and oafrt~riea; f8ra on 

deposit rrfumleblr to atudsnta under orrtaln oondltlona; raoelpta rros l ohool l thlotlo aotIvltI8r; Inoomr. from atudsnt publloetlona or other student aotlvltlsa~ rroripta rrom l 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 0r and 

by vIrtu8 of the 8duoetIonel aotIvItI8a, or r8a8aroh 

or daaonatratlon oerrlrd on by 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 Board to borrow money to meet an rmarganoy. Conatruiag 811 aeotlona of Artlolr 26546 tOg8th82, we think 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 to pladgr aaoh 

looel runda aa might eoouaulete ln the ruture. Furtbaraor~, the 

Stat.8 la not bound by aa egraeaaat of it8 agent to pey Interest, 

unleaa there la a law authorizing the agent to enter euoh a fantreat. 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 p a r 8 aa l ra rxprrsaly oonrarrad on them by 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, rrom the Eduoat:onel Appropriation Bill, 

aupra, Subaaotfon (41, Looel D8poaItorIaa, aa rollowar 

et*+ 

*It la hereby drolerad the L8gIalatlv8 Intent 

that the governing boerda and beeda of thr aavaral 

State Inatltutlona o? higher 18ernlng ahall not borrow money from eny peraon,firn or oorpcretlon to br 

repaid out oi local funds, other than la npaoIfIoally 

authorized by lcgIaletlve aneotment.~ 

iua balleva, turther, that there la yet en eddltlonel raeaon that would preoluda en Implloation of inplled ower n8oaaaarlly 

in the Board of Regent8 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 b a a nor of l a rzprraaad 

#wtllW OOtIfarring the power. By virtua 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 

up th8 pooedura by whloh the ameaagera or State Ina~ItutIona or 

oaar peraona la Texaa with ths power or duty of mntreotlng for 

l uppllaa or in any nannar plrd6ing them the oradlt o? the Stat8 

?ca any da?Ialanoy that slay uiaa under their menagaaaant & oontrol* m8y l xtrIoata thamaalvaa iron oaaual darloIanoIaa unroraarebla when epproprIetlona wera made..,: The feat that the legIaletura 

hea praaorlbed the method to b e l nployad la oaao o? drflolant apoprletlona would rurther praoluda, wa think, an lniaranoe o? 

EP lied rower La the Board o? Ragenta to authorize the ~borrowlng 

o? money for 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 l na wr a your lnqulry, 

88 are 

Your8 vary truly 

AlTORNXY GENERAL OF TJUAS 

BY 

~fP% 

Ohratrr B, Olllaon 

. Aaaiitent 

aaaloaura