Dr. J.W. Edgar Opinion NO M-236 Commissioner of Education Texas EducationAgency Austin, Texas 7871.1 Re: WhetherArticle 2786e, V.C.S., authorizes an independent school district to issue time warrants for purchase of land only,which is desired for school building
or classroom construction needs projected into the Dear Dr. Edgar: future.

You have requested that theAttorney General render an opinion on whetherArticle 2786e, Vernon's Civil Statutes, authorizes an independent school district to issue time warrants for purchase of land only (not to exceed $25,OOO), which is desired for school building or classroom construction to be built at some future time

Section One ofArticle 2786e, reads as follows:

"Section 1. Any schooldistrict in the State of Texas in need of funds to repair or renovate school buildings;purchase school buildings and school equipment; to equip schoolproperties with necessary heating, water, sanitation, lunchroom and electric facilities;
or isneed of funds with which to employ an individual firm or corporation deemed to have special skill and experience to compile taxation data for use by its board of equalization;and said school district is financially unable out of available funds tomake such repairs, renovations of school buildings,purchase school buildings,purchase school equipment, to equip schoolproperties with necessary heating, water, sanitation, lunchroom or electric facilities or is unable to pay such individual or corporation for theperformance of theprofessional duties hereinabovementioned, may, subject to theprovisionshereof, issue interestbearing timewarrants, in amounts sufficient tomake such purchase and improvements, to pay all or part of the compensation of such individual., firm or corporation to compile such data, any law to the contrary notwithstanding. Such warrants shallmature in serial installments of not more than five (5)years from their date of -1150-Dr. J.W. Edgar, page 2 M- 236

issue, and to bear interestat a rate not to exceed six per centum (6%) per annum. Such warrants shall upon maturity be payable out of any available funds of such school district in the order of their maturity dates. Any such interest-bearing time warrants so issuedmay be issuedand sold by such district for not less than their face value, and the proceeds thereofused to provide funds required for the purpose for which they are issued. Such warrants shall be entitled to first and prior payment out of any available funds of such district
as they become due. Included in such purposes is the payment of any amounts owed by said school districts, which indebtednesswas incurred in carrying out any of such purposes."

The above-quoted section is the onlyportion ofArticle 2786e specifying thepurpose for which timewarrantsmay be issued. While it authorizes the issuance of timewarrants to purchase "schoolbuildingsand school equipment", itneither expressly or impliedlyauthorizes the issuing of such warrants for thepurpose of purchasing unimproved land upon which school buildings or school equipment is to be erected at some future date.

We thereforehold thata school district would not be authorized to issue timewarrants, pursuant toArticle 2786e, fbrthepurpose of purchasing land only.

SUMMARY -----mm Article 2786e, Vernon's Civil Statutes does not. authorize a schooldistrict to issue timewarrants for the purpose of purchasing land only.

VeAy trulyyours,

Prepared by Roy W. Mouer AssistantAttorney General

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APPROVED: OPINION COMMITTEE

Hawthorne Phillips, Chairman Kerns Taylor, Co-Chairman Z.T. Fortescue,lll Fielding Early John Banks Jack Goodman A.J. CARUBBI, JR. ExecutiveAssistant



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