C 

THE ATTCBIRNEY GENERAL 

OI’ TEXAS 

November 11, 1986 

Honorable Bob Bullock Opinion No. ~~-575 

Comptroller of Public Accounts 

L.B.J. State Office Building Re: Whether "local funds" mainAustin, Texas 78774 tained by colleges and universities 

are subject to appropriation and 

related questions 

Dear Mr. Bullock: 

You ask several que:itions concerning local funds maintained 

outside the treasury by co:.l.eges and universities and state agencies. 

You give the. following exanples of funds deposited in local accounts 

under section 51.008 of the Education Code or the Appropriations Act: 

1. Funds from auxiliary enterprises, such as 

athletic activities, book stores and cafeterias; 

2. constitutional college building amendment 

funds; 

3. amOuntS derived from non-instructional 

services, s. soil testing by Texas A & M 

University; 

4. endowment funds; 

5. federal :iunds for student loans and 

research; 

6. gifts and donations: 

7. fees for such items as dormitories, student 

newspapers, and student health centers; 

8. funds maintained in local bank accounts 

which are not required to be placed in the 

treasury by eit'wr the Funds Reform Act, the 

Education Code, or other specific statutes. 

You ask whether the following information retained by state 

agencies and institutions elf higher education on these local funds is 

subject to the Open Records Act: 

p. 2565 
Honorable Bob Bullock - Page 2 (JM-575) 

1. Information concerning gifts and donations 

to colleges and rtniversities, such as the name of 

the donor, the amunt, any restrictions placed on 

the donation, ar.d the disposition of the donation; 

2. accounting records and supporting documentation concerning the source and disposition of 

receipts from amiliary enterprises operated by 

colleges and unimrsities and of all other local 

funds maintained by colleges and universities; 

3. accounting records and supporting documentation concernin public and private grants to 

colleges and universities; 

4. accounting records and supporting documentation concerning public and private grants to 

state agencies. 

You ask a broad que:ition about several 

information, and our answex must necessarily be 

Records Act applies to 

general categories of 

generalized. The Open 

[a]11 information collected, assembled, or maintained by governmntal bodies pursuant to law or 

ordinance or in connection with the transaction of 

official business. . . . 

V.T.C.S. art. 6252-17a, 6: (a). State colleges and universities and 

state agencies are governmntal bodies subject to the Open Records 

Act. See, e.g., Texas Industrial Accident Board v. Industrial 

Foundation of the South,-540 S.W.Zd 668 (Tex. 1976); Hubert v. 

Harte-Hanks Texas Newspaper_s, Inc., 652 S.W.2d 546 (Tex. App. - Austin 

1983, writ ref'd n.r.e.); Attorney General Opinions H-436, H-242 

(1974). The Open Recordr; Act as a general rule would authorize 

members of the public to request access to the records of state 

colleges and universities i.nd state agencies concerning gifts, grants, 

and local funds. See, e.g:, Open Records Decision Nos. 220 (1978) 

(records of bank account, opened in name of city); 121 (1976) 

(financial records of University of Texas Division of Extension). 

When a member of the public requests particular records, the 

governmental body would be entitled to raise exceptions to public 

disclosure set out in sect:ion 3(a) of the Open Records Act; whether 

particular records would he: excepted from public disclosure must be 

determined on a case-by-car:e basis under the procedures set out in the 

Open Records Act. See, e.&, Open Records Decision No. 121 (1976) 

(financial records of un:%ersity extension division excepted from 

public disclosure by section 3(a)(3) of article 6252-17a, V.T.C.S.). 

You next ask the following questions about the appropriation of 

local funds and gift and grant funds: 

p. 2566 
Honorable Bob Bullock - Pag'z 3 (JM-575) 

1. Are local funds maintained by universities 

and colleges sti,ject to appropriation by the 

legislature? 

2. Are grant); and gifts received by state 

agencies and maintained in local accounts subject 

to appropriation? 

Your questions do not focus on particular funds, gifts, or 

grants. Nor do they inquire about the construction of particular 

statutes. We can provide generalized answers to your questions, with 

the qualification that the statutes, Appropriation Act provisions, and 

constitutional provisions applicable to particular funds might require 

a different result in some cases. See, e.g., Tex. Comet. art. XVI, 

56; Attorney General Opinims M-944 (1971); M-91 (1967). 

Prior opinions of this office have determined that local funds 

maintained by universities and colleges are subject to appropriation 

by the legislature. See:, e.g., -- 

Attorney General Opinions B-456 

(1974); V-1427 (1952); V-7:.5 (1948). See generally Attorney General 

Opinion MW-576 (1982). The following Education Code provisions apply 

to college and university l#,cal funds: 

Section 51.001. Institutions to which Applicable 

Subject to Section 51.008 of this code, the provisions of this sulchapter apply to: 

(1) each inst:itution and branch of The University of Texas S,ystem; 

(2) each institution, agency, and service of The 

Texas A & M University System; 

(3) Texas A & :C University; 

(4) Texas Tecl University; 

(5) East Texas State University; 

(6) North Texas State University; 

(7) Sam Houston State University; 

(8) Stephen F. Austin State University; 

(9) Southwest Texas State University; 

(10) Sul Ross Wate University; 

(11) West Texas State University; 

p. 2567 
Honorable Bob Bullock - Pages 4 (~~-575) 

(12) Texas Eas,:ern University; and 

(13) each pub:t:ic junior college to the extent 

possible. 

451.002. Funds Subject to Control 

(a) The goveming board of each institution 

listed in Section 51.001 of this code my retain 

control of the following sums of money collected at 

the institution, tiubject to Section 51.008 of this 

code. 

(1) student f,zes of all kinds; 

(2) charges f')r use of rooms and dormitories; 

(3) receipts Erom meals, cafes, and cafeterias; 

(4) fees on deposit refundable to students 

under certain conditions; 

(5) receipts E~com school athletic activities; 

(6) income from student publications and other 

student activities; 

(7) receipts from the sale of publication 

products and misceLlaneous supplies and equipment; 

(8) students' voluntary deposits of money for 

safekeeping; 

(9) all other fees and local institutional 

income of a strictly local nature arising out of and 

by virtue of the educational activities, research, 

or demonstrations carried on by the institution; and 

(10) donations and gifts to the institution. 

. . . . 

851.006. Funds not to be Used to Increase 

Salaries 

No part of ans' of the funds listed in Section 

51.002 of this code shall ever be used to increase 

any salary beyond the sum fixed by the legislature 

in the general appropriations act, and the provisions of this subchapter are subordinate to the 

p. 2568 
Honorable Bob Bullock - Page: 5 (JM-575) 

general appropriat,$ns act for the support of each 

institution. 

151.008. Certain Receipts to be Deposited in 

State Treasury 

(a) The govern:tng board of every state institution of higher education is directed to designate 

special depository ksanks, subject to the approval of 

the state treasurer, for the purpose of receiving 

and keeping certain receipts of the institution 

separate and apart from funds now deposited in tie 

state treasury. The receipts here referred to are 

described in Subsection (b) of this section. . . . 

(b) The govern:ing board of every state institution of higher edu:ation shall deposit in the state 

treasury all cash receipts accruing to any college 

or university unde:r its control that may be derived 

from all sources sxcept auxiliary enterprises, noninstructional ser+es, agency, designated, and 

restricted funds, endowment and other gift funds, 

student loan funzs, and Constitutional College 

Building Amendment funds. . . . 

554.004. Retent:ion and Use of Funds 

All tuition, local funds, and fees collected by 

an institution of?zgher education. shall be retained 

and expended by t'1s institution and accounted for 

annually as providzd in the general appropriations 

act. - 

(Emphasis ad&d). 

Educ. Code §§51.001, 51.002!, 51.006, 51.008, 54.004. 

Pursuant to section 51,006 of the Education Code, the local fur.ds 

described in section 51.002 are subject to appropriation by the legislature. See Attorney Gene:ral Opinions H-456 (1974); V-715 (1948). 

See also Attorney General Cpinion V-1427 (1952). The current Appropriations Act appropriates the local funds of colleges and universities. General Appropristion~; Act, Acts 1985, 69th Leg., ch. 980, art. 

III, §1. 

You finally ask whet:lar grants and gifts received by state 

agencies and maintained in :Local accounts are subject to appropriation. You do not inquire about a particular agency, and any question 

about the appropriation of 8ifts or grants received by a particular 

state agency must be answered in reference to the statutes, constitutional provisions, and case:.aw relevant to that agency. 

p. 2569 
Honorable Bob Bullock - Paga 6 (JM-575) 

The State Funds Refom Act provides, with certain exceptions, 

that 

gifts, grants, donations, and other funds 

collected or received by a state agency under law 

shall be deposited in the treasury, credited to a 

special fund or Funds, and subject to appropriation only for t!m purposes for which they are 

otherwise authorized to be expended or disbursed. 

A deposit shall lx made at the earliest possible 

time that the treasury can accept those funds, but 

not later than the seventh day after the date of 

receipt. 

V.T.C.S. art. 4393-1, 44.0(,4(a); see, e.g., Attorney General Opinions 

.JM-391 (1985); MN-590, MN-454 (1982). Funds deposited in the State 

Treasury may only be withdrawn by appropriation. Tex. Const. art. 

VIII, 56. Gifts and grants to state agencies named in the general 

appropriations act are appropriated by the following provisions: 

Sec. 19. ACCLPTANCE OF GIFTS OF MONEY. All 

bequests and gif'ts of money to state agencies 

named in this AC,: are hereby appropriated to the 

agency designated by the grantor and for such 

purposes as the grantor may specify, subject to 

the following: 

(1) All such bequests and gifts of moneys, 

unless exempted 'JJ specific statutory authority, 

shall be deposited into the State treasury and 

shall be expend&, in accordance with the provisions of this Act. 

. . . . 

Sec. 20. FEDXIW FUNDS. All funds received 

from the Unite11 States government by state 

agencies and institutions named in this Act are 

hereby appropriated to such agencies for the 

purposes for which the federal grant, allocation, 

aid, payment or reinbursement was made subject to 

the following: 

(1) Federal funds including unexpended 

balances shall b'z deposited to and expended from 

the specific pogram identified under each 

agency's appropriation bill pattern. 

No federal funds may be expended for programs 

or activities other than those which have been 

reviewed by the Sixty-ninth .Legislature and 

p. 2570 
Honorable Bob Bullock - Page 7 (JM-575) 

. 

authorized by specific language in this Act or 

encompassed by an agency's program structure as 

established by this Act. 

General Appropriations Act, Acts 1985, 69th Leg., ch. 980. art. V, 

5519. 20. 

Article XVI, section 6, of the Texas Constitution makes some 

special provisions for the handling of grant funds received by state 

agencies responsible for providing services to persons who are 

physically or mentally disz.bled. This provision authorizes the state 

agencies to accept money from private or federal sources to provide 

facilities and services to assist the disabled. State agencies may 

deposit money accepted under article XVI, section 6 in the state 

treasury or in another secure depository and may spend it for the 

purpose for which it was given "without the necessity of an appropriation, unless the Legislature, by law, requires that the money be 

expended only by appropr1z.tion.u Tex. Const. art. XVI, 56. If is 

therefore necessary to consult the statutes applicable to funds 

received under article XVI, section 6, of the Texas Constitution to 

determine whether federal grants and gifts to a particular agency are 

subject to appropriation. See, e.g., Human Res. Code §§91.056, 

111.055. 

SUMMARY 

The Open Records Act applies to information 

about local fund:3 held by state colleges and 

universities. Whether particular information is 

available to the public or excepted from public 

disclosure must be determined on a case-by-case 

basis in accordance with the procedures established in article 6252-17a. V.T.C.S. Local funds 

maintained by universities and colleges and gifts 

and grants received by state agencies and maintained in local accounts are as a general rule 

subject to appropriation. However, federal grants 

and gifts received under article XVI, section 6, 

of the Texas Gonstitution by state agencies 

responsible for providing services to disabled 

persons may be s'!ent without appropriation unless 

the legislature provides by law that the money be 

expended only on appropriation. 

, Very/zr 

JIM MATTOX 

Attorney General of Texas 

p. 2571 
Honorable Bob Bullock - Page! 8 (JM-575) 

JACK HIGHTOWER 

First Assistant Attorney Gewral 

MARY KELLER 

Executive Assistant Attorney General 

RICK GILPIN 

Chairman, Opinion Committee 

Prepared by Susan L. Garrison 

Assistant Attorney General 

-_ 

p. 2572