# EATTORNEY GENERAL. Q,F TEXAS

**PRICE DANIEL**  **j ATTORNEY** **GENERAL AcwrrIN**  **11. -n3mL4s** 
June 24, 1949

Hon. William L. Kerr, President Board of Regents State Teachers Colleges Midland, Texas Opinion No. V-848.

Re: The legality of using funds available under the College Building Amendment to con**struct** and equip buildings which will be revenue producing.

Dear 6ir:
We quote fre.m:Yeur request for opinier as follows:

“You have heretofore advised **our** Board of procedural matters under the Constitutional Amendment Building Program. (Tex. Const. Art. VII, Sec. 17;A, G, Opinion Nos, V-798, V799.) We now m&e further request **and** impase upon you for addition&l opinion as to the use we mry melce Ofthe 8vdlable money,

“‘Seven colleges are **wnder** thejurisdiction of our Board. The **needs** of the respective schools are varying. Far instmce, the meat pressing need in the **greater** number of our saheob is for class roem buildings, but as to one or perhaps two, the urgent 

### need ia for’ diring halls er dormitor,ies or combination of the twe. **As** M one or perhapa 6rvm.the pressing need is for nmhpsiums. In other werde, as m **some** of the schools, the need is for buildings which would **be** self-sustaiming in part and the t~pc of building for which revenue bonds have been issued in the past, **under** the Skiles Act. (Ax& 26Mcc-A, V.C.S.)

.HDL William L. Kerr, Page 2 (V-84g)

“‘FOPthe use of our Board in **detommia** ing the type of buildings to be **permitted** tier the Buildin(t Amendment, will you please &- vime:

“‘May w.arBoard of Regents expend funds available under the BuildSag AnePslment fom:&km. Willhm L. Kerr, Pale 3 (V-84s)

or note4 iseued for the purpose of’acquiring, ooaotructiag **and** initially equipping soabuildings or othar permanent improvements at said respective institutions.” It neither describe4 n0r fines any other limitations as to the types ‘of building4 or **0-r** 

### permbnent improvements which may be wquir,ed **or** canrrtr.ucted. Therefore, the bonds or notes may be i44ued to secure fund4 f,er ,the ~acquisition, construction and the initial equiyping of any tfnt of building at the remp4ctive iw3Mulrioms whiob the pverning board properly ikema recea4rry in eur#9hg wt tke PunctiEioaaof ita 

### eQuoatiana1 in&it&&m, iacldizkg tAxtwo

### typea of buildings whick way be eorstructsd under tha Asnerisian4 of Articles 260%~ 4r 2654-1, V.C.S.

.

_ ..::,. However, Article 2603~ provides Get the conartruction or ecquisition of the improvemea~ therein authoriaed shall be “without cost to the State of Texas,” and that any bonds issued thereunder “4hall not be an indebtedness of th4 6tak QfTenas, but shall be payable solely from the ,revenue4 Q be derived frem the operation of 4rid buildie;li4 O ‘* AAm, ir Article 2&4-f, it i4,povided that the acqui4iti0is and 00M%kpue$i@nof ttVeim@rovansmto provided for therein ‘“4hall bc llrlc without cost to the State of Texas, ad no bonds ia4ued fez 41&hiegfovemeats r&&l oonstitutc a debt of the State ef Texas in mnymann*r whatpoevor, but &all be a charge only **rpinst** those ~evanuo4 gre,%ieaAAy pledged for their p8yment.oa A, 0, Opimimu M~4kd-tZT3, O-1694, O-1707, **O-()36, O-6993,**  by 

### prior. ddda*r&~ns. Thrse statute4 rould apt preclude the i44uucs **mf**baa&mor note4 under Section 17of Article VII. H0aever, if revenue bonds **were** BP are 00be issued u&er Article 

### 26a3c or Article 2C54c-1, then these statute4 would q@y to such reverie bWdr aid %lua USI ol t#ibb

procreds. &iOther WM-SLS~

tbti bu~t##ag~ w+mqw-e~$s tm&# WeSimwyal either by t&d,&ssuance of &a*& ,a*,,M&5* u&&k @#sXWSi 1,7af &ptic.As VII or ,&t&4 issw8 oPs3iwMMkcbmula Mk&*r AH&tile **26&k or**  **AWide &&J6c-1,**  **bitt @k-h** **l?p****kw*.**

**‘ ,..,** 

.., It iocA.ew, tbesafwe, that tiw prwcedr from tzte **noJc*,gr** **bon& ieswd**  uader **Scetiea 17** **& Ahiclc**  VII, **Gorstitu** ion df: Texas, o&a Lo wm~dncitke~ to supplement fund4 0bttined 

### bp,Ne ia.sqmce 08pewsme baa&v *dim Article 

### 2603~ o,rArticle UHO-1, nor te 

### p*y t&e d*netiuction o,racqui4ition costs 0f the **,~$@p@mvmments**

**cevcr~ad by**  

### such **revezIue bonde,**  **nor te**  **ply my**  #& of the intere4t *a and ppineipaA 0f ouch b0ikd4.

We aresunabblete an4wer your second question cntrpzicplly because it involves fact considerations. Section 17I Ho& William L, **Kerr,** Page 4 (V-848)

. ‘, **provides,** ae st&?d, that the mwey realiesd from the sale af the bonds, shall be spent:

%ar the purpose of q2.quirhg, con,?, structingl, and initiPdly equipping buildings “; oh other permanent improvements aO

.‘* .1,

As staked by the Court af Civil &@erls:
“The 

### primary purpose of the amen& QleQt***r86~.* fw the pPrpeee of fiwrcing (8tr ~~ns~paction Pnd~Jequipment of buildings 

### sad akbiir pwinament improvements ,aOR Whit%aide v* Brvwn, 214S.W,2d g44 (19483, ,er;ror refused).

The amendmrnt wits sefferred to by #at Court as it was ad i6 ccsnrnody denominated, the ment, 84 wCoLlepe 8J-j AmendThe cap@i:tmon S,J& 4 (tit amendment as 

### prapored **by** the Lagislatawe) &&es that &heamendment provided:



### “A meehod~of pqtmen$ for 

### the WP**strai&h~** and eepment of buildings ax ~rnuraot imprtwemebts ae
.’

Coaretschq the histwy af the amendmInt it ir our intarpreta%on tbaa it was **intended** by tie Legislature and the peop&eto provide p&marfPy for the construction or acquisitian af building& a& the construction or acquisititin of other permraent improvements. There is no provision in the amendment for the repair @fe&sting buildings out of such funds. On the contrary, the amendment says dthaa&heparticipating colleges (except in
case of aalamity) ‘“shall not eeOreceive any other state funds fer the acqd&ng or constructing of btihW.gs or ether. permaaent improvemex& L/

sqyD

Itwill be noted also that the ame&rne& uaas the word ‘%~@%Cally” in maying ‘for the purpose of acquiria#.i, ceast*ti

buildings or other permaaent impsovalyw so rPsledfurther indic8tec trhrt the people and the Legislature coniemplwkd the canntrwtien **or AC**  quisition of such bui%diBfls or cuber permaaent **imppevemeatti** a@ might requite “inB&& equipme&@ That pwt ot the am-Hon. William L. 

### Kerr, Page 5 (V-B48)

calling for “initial 

### equipment" certainly docs 

### not contemplate repairs. 

### ““**InitiJ 0qdpa0at"'ixdcata6**  **equipmetrt**fer thefiirt 

### t+e,

**p mr4!pdP6W**  **U%d 6iSih**  **Op4~4tiO~6** 

### m8y **ba** paid 

### for out ef Gelleg* **AmePdmoet** money, then the L*eIaturr is **pro** hibited index the p6evS6ioa quoted above freti B aay ap#ropriation for such ~raS0ns during the effective life of’-i3i; amendment. So a colle#e which 

### cakuhted that it would rsceive 6 million dollars under the amendment a not expend **6** million dollars for the construction of **buildings** and initially equippiv them. It would have to save back enough money to rep6ir and remodel its laboratories, clrrclare08~6)et cet8ta. 

### for *a whoAa effective life 

### oftheamerdmont -- ha-0 itc& SWreceive snf m0ney from **the generd**  **revewe for**  **6ucL.** 

### items &axingth8t 

### period.

The paople ud W k@slatuxe irtanded ne such result, They %s- *$ @he-:6M 

### be invert& in buildiRg6 8nd similm ~-stimplP- ate at the collsges which
were 

### se bully YIlJd by W **&tar** 

### i&e hkr war, madwhich will be 

### needed during the Jfec4kve lMe odthe **uaerdment.** It called for capitsi investment of the meaey --not 

### thewm 0fit fer maintenance, Jteratioru, and repairs.

Ths Bmrd of Rep&r of mate TeackaT6 CeIle~ea may *enid it6 Ce836t%tv&onrl U :.

Ika. **William** L. 

### Ke~a+~Page 

### 6 (V-648)



### u?aetlbiadiq hods (Tmx. Canst. Art, 

### Ilr, aoc. 

## 17) &or @a0 l cqG6itbaa @lgc~ishwctic+a aad iait&J.oquip#og oba9q tygbds of building rtthe inat6QIQsopL

wbirb +&toBoard properly deems net91-y h carrying cut the functions of its iastf4oticm. tad&g those types ofbuildings autb&z@d to **ba** constwcted under the provisions **of &ttcPms**  **2603~ or**  **2654c-1, v,c,s.** 

SW& &ads may net, however, be ekscd b swpphanmt f&a &%&xed by the issuance **ef rwmaua**  **beads u&m**  **Article 2654c-1**  **or 2603~~**  01:b par pay papi oi t&e cos+rhctism op1

## l cq&sPWa coBbs ef the improviments cevaxed by stxchrove-, bowls, or to pay opy past 

### 86 tbmpPbaGip& ubdfnltotest Paquiramen*s of such PQVmaambox&. **A 6,**  **OpworAs V-796,**  **v-799.**