Honorable Tom C. King 

State Auditor and Efficlency~Expert 

Austin, Texas 

Dear Sir: Opinion NO. O-1693 

Re: Does Senate Bill #455 purport to 

validate’ the procedure so as to 

give the sanction of the Legislature to an originally unlawful 

pledge of funds? 

Your request for an opinion has been received by 

this department. We quote from your letter as follows: 

"Chapter 5, Acts 43-d Legislature, 2nd, 

Called Session, provides for bona issues by the 

Board of Regents of the State Teachers College 

to secure loans to the various fnstitutions 

under their charge, for the purpose of constructlng needed buildings. The Act, in specifying 

the money available for payment of the bonds, 

limits the same 'solely' to revenues derived 

from the operation of the buildings constructed 

under its authority. This Act, with its amendments, has been codified as Art. 2603~ In 

Vernon's Annotated Statutes. 

:"Senate Bill 455, 46th Legislature purports 

to validate all Acts of the Board, theretofore 

had in issuing bonds 'to accomplish purposes 

authorized under the provisions of Chapter 5’., 

This Act is codified by Vernon as Art. 2603~1: 

"Your opinion is respectfully requested as 

follows: 

"1. If a bond Issue was made, under color 

of the authority of the said Chapter 5, 

but which in fact provlded for the use 

of repayment funds not available for 

thatpurpose under the Act, does Senate 

Bill 455 purport to valll8ate the procedure so as to give the sanction of the 

Legislature to the ariginallg unlawful 

pledge of funds? 
--.-/ 

Honorable Tom C. King, page 2 o-1693 

"2 . Is the Act (Senate Bill 455) effective in 

thus providing aaaitlonal funds for such 

purposes than those allowed under the 

original Act, at least as to the issues 

executed between their respective dates?' 

Inanswering this request we enclose a copy of our 

Opinion No. o-1662, addressed to Honorable'Tom C. King, State 

Auditor and Efficiency Expert, Austin, Texas, which holds 

that the Board of Regents of the State Teachers College is 

not authorized to use either appropriations from the general 

fund or local or institutional funds in payment of bonds 

Issued under Chapter 5, Acts of the Forty-third Legislature, 

Second Called Session. 

Senate Bill 455 provides as follows: 

"Art. 2603~1. Validation of proceedings and bonds 

purchased by Federal Agencies. 

"That severally all the acts of the.Board of Regents 

of the University of Texas, the Board of Directors of 

the Agricultural and Mechanical College of Texas, the 

Board of Directors of Texas Technological College, the 

Board of Regents of the State Teachers Colleges, the 

Board of Regents of the Texas State College for Women, 

and the Board of Directors of the Texas College of Arts 

and Industries, heretofore had in the authorization, 

issuance, and'deliverg of bonds, notes or warrant&, 

evidencing loans made to accomplish purposes authorized 

under the provisions of Chapter 5, Acts of the Second 

Called Session of the Forty-third Legislature, and amendments thereto, and all other laws of the State of 

Texas, relating to such bonds, notes or warrants, lneluding the construction, acqulsltion and equipping of 

dormitories, kitchens and dining halls, hospitals, 

libraries, student activity buildings, gymnasia, athletic 

buildings and stadia, and other buildings, are hereby in all things validated. dng such bonds, notes or 

warrants heretofore Issued, or that may be issued hereafter, pursuant to any order or resolution of any such 

Board of Directors or Board of Regents heretofore adopted, are In all things fully validated, and such 

bonds, notes or warrants, the pledge of the revenues by 

any such Board of Directors or such Board of Regents 

to secure and assure the payment of such obligations, 

and the provisions and covenants as to rates and charges 

supporting such pledges, are in all things ratified, 

and such bonds, notes or warrants are hereby declared 

to be the valid and binding special obligations of such 
Honorable Tom C. King, page 3 o-1693 

Board of Directors or such Boar& of Regents, to be 

paid out of revenues pled.ged and not otherwise 

obligations of such respe,ctlve~~.institutlons. It 

is hereby made the duty of said Boards of 

Directors and of ,saia Boards of Regents to fix, 

maintain and collect charg,es or,rates, sufficient 

for, a reasonable reserve and to.pay the'interest as it accrues and the principal as it 

~matures of any such bonds,:notes or warrants 

heretofore or hereafter authorized by such Boards. 

"Provided, however, that the provisions of 

this Act shall apply only to such bonds, notes 

or warrants ashave heretofore or may hereafter 

be purchased by the Government of the United 

States or some agency thereof, or which bonds, 

notes, or warrants are under contract of purchase by the Federal Government or any agency 

there,of. Acts ,1939, 46th Leg., S.B. #455, Sec.1." 

It seems to be the settled law of this State that 

the Legislature may legalize unauthorized acts of surbordlnate agencies where same would have been valid under*'legislatlve sanction prevlouslg given. Louisiana Ry, & Nav. Co. 

v. State, 298 S.W. 462, dff. 7 S.W. 

Dist. No. 8 vs. Pollard, 296 S.W. A 

2) 71; Anderson Co. Rd. 

10 2. 

Under the statement of facts given In your letter 

the Legislature could not at this time validate the unlawful 

pledging .of funds or make,additional appropriation out of 

public funds to pay principal and interest on bonds issued 

i under Chapter 5, Acts of the Forty-third Legislature, Second 

Called Session. An aaditlonal appropriation from the funds 

in the State Treasury or from local or institutional funds 

would be In violation of Article 3, Section 44 of the Constitution of Texas, which provides, in part, that the Leglslature shall not "grant, by appropriation or otherwise, any 

money out of the Treasury of the State, to any Individual, 

on a claim, real or pretended, when the same shall not have 

been provided for by preexisting law.!' 

There being no 1labFlity against the State because 

under the expressed provlsion of the statute authorizing the 

construction of buildings and the Issuing of the bonds in 

question, there would be no "preexisting law" to serve as 

the basis of the appropriations of any public funds to repay 

the loan, and such appropriations would be in violation of 

Article 3, Section 44 of the Constitution. Ft. Worth 

Cavalry Club vs. Sheppard, 83 S.W. 660. 
Honorable Tom C. King, page 4 o-1693 

For reasons above - _ _. _*_ stated, and also as set out in 

the enclosea oplnlon, It 1s the opinion of this department 

that Senate Bill 455, Forty-sixth Legislature, does not purport to validate the procedure so as to give the sanction 

of the Legislature to the originally unlawful pledge of funds, 

and also does not attempt to provicle additional funds for :.~: 

such purposes than those allowed under the original Act. 

Trusting that this answers both of your questions, 

we are 

Very truly yours 

ATTORWYGRRWdL OF TRKAS 

By s/Claud 0. Boothman 

Claud 0. Booth&n 

Assistant 

COB:s:wc 

APPROVED FEB 27, 1940 

S/W. F. Moore 

FIRST ASSISTANT 

ATTORNEY GERRRdL 

This Opinion Considered and Approved in Limited Conference