. . 

THEA=• RNEY GENERAL 

OF TE,XAS 

May 9, 1961 

Honorable Ben Ramsey 

Lieutenant Governor 

Capitol Station 

Austin 11, Texas 

Dear Sir: 

Opinion No. W-1048 

Re: Whether the Legislature 

may retire outstanding 

bonds issued by Texas 

Southern University, and 

related questions. 

You have requested an opinion on the following questions: 

"1. Would an appropriation by the Legislature 

from the General Revenue Fund for the retirement of outstanding bonds issued by Texas 

Southern University pursuant to Article 2643g, 

be a valid and effective means of liquidating 

such indebtedness? One aspect of this question 

is whether such outstanding bonds are callable 

without the consent of the bond-holders. 

"2 . If the method indicated in the question 

above is a valid and effective means, would it 

result in freeing up Texas Southern University's 

share of the College Building Fund for the construction of additional buildings now needed at 

that institution? 

"On both questions, the last clause in Section 17. 

Article 7 of the Constitution appears to be pertinent. 

" 3 . If, in your consideration of questions 1 and 

2, you find the method to be of doubtful validity 
Honorable Ben Ramsey, Page 2 W-1048) 

or effectiveness, would the enactment of 

a new bill containing for Texas Southern 

University provisions similar to Article 

2643g, be a valid and effective way of 

assuring that University with available 

moneys for building construction purposes?" 

Section 17 of Article VII of the Constitution, as 

amended in 1956, establishe:s a state ad valorem tax for the 

purpose of creating a special fund for buildings and improvements at certain State institutions of higher learning, to 

be allocated and periodically reallocated by the Comptroller 

of Public Accounts to the participating institutions. It 

further provides, in part, as follows: 

. . . all such designated institutions of 

higher learning which participate in the 

allocation or re-allocation of such funds 

shall not thereafter receive any General ~:'r::,~' 

Revenue funds for the acquiring or constructing of buildings or other permanent improvements for which said Five Cent (50) ad valorem 

tax is herein provided, except in case of fire, 

flood, storm, or earthquake . . . . Chapter 

330, Acts, Regular Session, Fifty-third Legislature ,&ticle 2643g. Vernon's Civil Statutes_7 

is repealed upon the effective date of this 

Amendment: but the principal and interest due on 

any obligations incurred by the governing boards 

of Lamar State College of Technology at Beaumont 

and of Texas Southern University at Houston under 

the provisions of said Chapter 330 prior to its 

repeal shall be paid from the allocations to 

Lamar State College of Technology and Texas 

Southern University from the funds raised by 

the Five Cent (5c) ad valorem tax levy as provided in this Section, . . .II 

In reply to your first question, it is our opinion 

that these provisions prohibit an appropriation from the General Revenue Fund for the retirement of outstanding bonds issued by Texas Southern University pursuant to Article 2643g. 
Honorable Ben Ramsey, page 3 (WW-1048) 

Since your first question is answered in the 

negative we do not reach the second question. 

We have reviewed the provisions of Article 2643g, 

V.C.S., which was repealed upon the effective date of the 

1956 amendment of Section 17 of Article VII of the Constitution of Texas, and your third question is answered in the 

affirmative. Bonds were heretofore authorized and issued 

by Texas Southern University for building construction purposes under Article 2643g, V.C.S., and we see no legal impediment to such issuance in the future under a new statute 

containing similar provisions. 

SUMMARY 

The outstanding bonds of Texas Southern 

University cannot be retired by an appropriation from the General Revenue Fund as 

Section 17 of Article VII of the Constitution provides that such obligations 

shall be paid from the Five Cent (Se) 

ad valorem tax provided therein. There 

would be no legal bar to issuance of bonds 

by the University under a new statute similar to Article 2643g, V,C.S., now repealed. 

Yours very truly, 

WILL WILSON 

Attorney General of Texas 

HWM-s Assistant I 
Honorable Ben Ramsey, page 4 (W-1048) 

APPROVH): 

OPINION COMMITTEE 

W. V. Geppert, Chairman 

C. K. Richards 

J. Arthur Sandlin 

Larry Hargrove 

Bill Allen 

REVIEWED FOR THE ATTORNEY GENERAL 

By: Morgan Nesbitt