### 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 theBankIng 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 theFinance Commission pleage and oauee to be expended a portion of the funds of theRankihgDepartment for the purpose of part&lpating in the buildingprogram of the State of Texas? Artic,le342-112,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 BankingDepartment or cause them to be examined. In addition, the BankingDep&&nent shall be auditea from time to time by the State Ad.itm in the camemanner ae other State Departments, and the actual costs of such audits shall be paid to theState Aud)tor fmm'the funds of theBanking Department. Fee@, penhlties and revenues collected by theBanking Departmtit-from every sourcewhatsoever 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 ~ofihis state. All expenaee Incurredby 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 theBanking Department shall be expended; and the Finance CommissionHonorable J. M. Falkner; page 2 (~~-608)

shall, as of December 31, 1951, and annually thereafter, report to the~Covernorof the State of Texas the receipts and diabursements~oftheBanking Department for each calendaryear; and shallwithin the first sixty (60)days of each succeedingRegular Session of the Legislaturemake a report to the appropriatecommittees of the House and Senate chargedwith considering legislationpertaining to banking.* (Emphasisours). Section 51-b of Article III of the Constitution of Texas creating the State BuildingCommiseion and the State Building Fund provides, in part, a8 followe: ”

. . . The State Building Fund ehall be expended by

theCommission upon appropriationby 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'providedby law, the Commissionmay acquire necessary real and personalproperty, salvage and dispose of propertyunsuitable for State purposes,modernize, remodel, build and equip buildings for State purposes, and negotiate andmake contractsnecessary to carry out and effectuate the purpoeeshereinmentioned." Under the provisions of Article 342-112, the State BankingDepartment is required to retain and hold all fees, penalties, or revenues it derives, and it provides that all expenses incurredby the RankingDepartment shall be paid from theBanking 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 operationof such agency. Thismay be accomplishedby renting office space, purchasingbuildings for office apace, or contra+ng for the actualconstruotion of office space, provided monies are available for such purpose. It is thereforeour opinion that the participation of theFinance Commission in the state building programwould be within the enumeratedpurposes for which the Banking Department fundsmay be spent. Since allmonies of the BankingDepartmentmust be retained by it, the expenditure of theRankingDepartment funds could not be made by the State Building Ccmmission. Therefore, any contract entered into for the construotlon of office space of theBanking Departmentwould have to be executed by that agency. You state inyour letter that the Finance Commission desires to budget a certain amount of the RankingDepartment funds for the purpose of erecting an office building to be occupiedby several departmentsmaking similar contributiona to the constructionof such offlce building by the State Building Commission.Honorable J. M. Falkner, page 3 (ww-608)

We have examined theprovisions of Section 51-b of Article III of tie Constitution of Texas and theprovisions of Title 16 of theRevised Civil Statutes of Texas, 192.5, and can find no provisionprohibiting theFinance 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 thismethod of providing office space is themost efficient means to accomplish the purpose, it is specificallyauthorized 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 theBankingDepartment as well as other agencies of the State. Such contract should be executed by the Banking Commissionerupon authorizationof the Finance Commission.
Yours very truly,
WILL WILSOIi Attorney General of Texas

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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