ORNVEY GENERAL 

OFTEXAS 

Honorable J. M. Fal.kner 

Commissioner 

Department of Banking 

Austin, Texas 

Dear Mr. Falkner: 

opinion IO. ww-6c6 

Re: Authority of the Finance Cammission to expend a portion 

of the funds af the BankIng 

Department for the purpose of 

participating in the building 

Program. 

You have requested an opinion of the following question: 

Pnreuant to the provisions of Chapter 1, Title 16, 

Revised Civil Statutes of Texas, can the Finance Commission pleage and oauee to be expended a portion of the 

funds of the Rankihg Department for the purpose of part&lpating in the building program of the State of Texas? 

Artic,le 342-112, Vernon's CivilStatutes, provides as follows: 

*The Cammissiotier ahal& from tima to time aB directed by the Finance Ccnmnission, submit to such Ccnmuiesion 

a full and ccrmplete report of the receipts and expenditures 

of the RanklngDepartmentsnd the Finance C~mnissionmay 

from time to time examine the financial records of the Banking Department or cause them to be examined. In addition, 

the Banking Dep&&nent shall be auditea from time to time 

by the State Ad.itm in the came manner ae other State Departments, and the actual costs of such audits shall be paid 

to the State Aud)tor fmm'the funds of the Banking Department. Fee@, penhlties and revenues collected by the Banking 

Departmtit-from every source whatsoever shall be retained 

and held by said Department, and no part of such fees, 

penalties and revenues shall ever be paid into the General 

Revenue Fund ~of ihis state. All expenaee Incurred by the 

Banking Department shall be paid only from such fees, penalties and revenues, and no such expense shall ever be a 

charge against the funda of this State. The Finance Canmission shall adopt., and from time to time amend, budgets 

which shall direct the purposes. and prescribe the amounts, 

for which the fees, penalties and revenues of the Banking 

Department shall be expended; and the Finance Commission 
Honorable J. M. Falkner; page 2 (~~-608) 

shall, as of December 31, 1951, and annually thereafter, 

report to the~Covernor of the State of Texas the receipts 

and diabursements~of the Banking Department for each 

calendar year; and shall within the first sixty (60) days 

of each succeeding Regular Session of the Legislature make 

a report to the appropriate committees of the House and 

Senate charged with considering legislation pertaining 

to banking.* (Emphasis ours). 

Section 51-b of Article III of the Constitution of Texas creating 

the State Building Commiseion and the State Building Fund provides, in part, 

a8 followe: 

” 

. . . The State Building Fund ehall be expended by 

the Commission upon appropriation by the Legislature for 

the uee8 and purposes set forth in subdivison (c) hereof. 

"(c) Under such terms and oonditions 88 are now or 

may be.hereafter'provided by law, the Commission may acquire 

necessary real and personal property, salvage and dispose 

of property unsuitable for State purposes, modernize, remodel, build and equip buildings for State purposes, and 

negotiate and make contracts necessary to carry out and 

effectuate the purpoees herein mentioned." 

Under the provisions of Article 342-112, the State Banking Department is required to retain and hold all fees, penalties, or revenues it derives, 

and it provides that all expenses incurred by the Ranking Department shall be 

paid from the Banking Department funds as directed by the budget adopted by 

the Finance Commission. One of the necessary expenses of any State agency is 

to provide adequate office space for the effectual operation of such agency. 

This may be accomplished by renting office space, purchasing buildings for 

office apace, or contra+ng for the actualconstruotion of office space, provided monies are available for such purpose. It is therefore our opinion that 

the participation of the Finance Commission in the state building program would 

be within the enumerated purposes for which the Banking Department funds may be 

spent. 

Since all monies of the Banking Department must be retained by it, 

the expenditure of the Ranking Department funds could not be made by the State 

Building Ccmmission. Therefore, any contract entered into for the construotlon 

of office space of the Banking Department would have to be executed by that 

agency. You state in your letter that the Finance Commission desires to budget 

a certain amount of the Ranking Department funds for the purpose of erecting an 

office building to be occupied by several departments making similar contributiona 

to the construction of such offlce building by the State Building Commission. 
Honorable J. M. Falkner, page 3 (ww-608) 

We have examined the provisions of Section 51-b of Article III of tie Constitution of Texas and the provisions of Title 16 of the Revised Civil 

Statutes of Texas, 192.5, and can find no provision prohibiting the Finance 

Commission from furnishing office space for the Banking Department by this 

method. On the contrary, it is our opinion that if the Finance Commission 

determines that this method of providing office space is the most efficient 

means to accomplish the purpose, it is specifically authorized to do so 

under the provisions of Article 342-112. 

SUMMARY 

The Finance Commission is authorized to participate in the State Building Program and budget 

Banking Department funds for the purpose of erecting an office building to be occupied by the Banking Department as well as other agencies of the 

State. Such contract should be executed by the 

Banking Commissioner upon authorization of the 

Finance Commission. 

Yours very truly, 

WILL WILSOIi 

Attorney General of Texas 

JR:wb:zt 

APPROVED: 

OPIIiIOFI COMMI!rrEE 

Gee. P. Blackburn, Chairman 

Riley Eugene Fletcher 

C. Dean Davis 

Elmer McVey 

Paul W. Floyd, Jr. 

REVIEWEDFOR THEATTQ- GERJZRU.. 

BY: W. V. Geppert 

John Reeves 

Assistant