Untitled Texas Attorney General Opinion ( 1963 )

October lo, 1963 Mr. Philllp G. Hoffman Oplnion No. C- 157 President University of Houston Re: Whether the Board of 3801 Cullen Boulevard Regents of the University Houston 4, Texas of Houston may borrow money for the construction of student parking lots, pledg- ing that portion of student parking fees not actually required for regular repairs and operating personnel for the repayment of the Bear Mr. Hoffman: loan. Your request for an opinion reads as follows: "With its tremendous increase in enroll- ment this Fall, the University of Houston is faced with the necessity of building new park- ing facilities, at a cost which may approxl- mate $500,000. If legally possible, the Uni- versity proposes to borrow the money necessary for such construction, probably for a five-year period, retiring the loan from proceeds of a special parking fee. "Essential facts are these: (1) Under the provisions of Article 2654a, Section 4.a, Vernon's CXV- il Statutes, the University of col- lecting a student parking fee is 5 for each regular semester and $2 for each summer term of six weeks. (2) The University Is operating under Sen- ate Bill 2, Acts of the 57th Legis- lature, regular session; as amended -760- Mr. Philllp G. Hoffman, page 2 (C- 157 ) by House Bill 291, Acts of the 58th Legislature; compiled as Article 261565, Vernon's civil Statutes. (3) Section 11 of Article 2615g gives the Board of Regents very broa3 authority to borrow funds. Particular reference Is made to paragraph one of this Sec- tion which enumerates the projects which may be financed I. . .and such other buildings and facilities as may be needed for the good of the Universlty of Houston . . .I (under- lining supplied). 'Reference Is also made to the second paragraph which appears to permit the pledg- ing of special fees to retire loans made for construction. "QUESTION: May the Board of Regents of the University of Houston borrow money for the construction of student parking lots, pledg- ing that portion of student parking fees not actually required for regular repairs and oper- ating personnel for the repayment of the loan? 'Since our parking problem is critical and in need of immediate solution, we will greatly appreciate your opinion as soon as possible. The University of Houston was created by the pro- visions of Article 2615g, Vernon's Civil Statutes, and the organization and control of such University is vested in a Board of Regents created by Section 2 of Article 2615g. "Sec. 11. The Board of Regents of the University of Houston is hereby authorized and empowered without cost to the State of Texas to construct or acquire through funds or loans obtained from the United States of America, or any agency thereof, or any other source, public or private, and accept title thereto subject to such conditions and limitations as may be pre- scribed by said Board, Including, but not limited to class room buildings, dormitories, kitchens and dining halls, hospitals, libraries, student --?61- Mr. Philllp G. Hoffman, page 3 (C- 157 ) activity buildings, gymnasia, athletic buildings and stadia, and such other buildings and facili- ties as may be needed for the good of the Unlver- sity of Houston and the moral welfare and social conduct of its students, when the total cost, type of construction, capacity of the buildings, plans and specifications have been approved by the Board. "Provided further, that the Board is author- ized to fix fees and charges against the students for the use of the buildings and facilities erected under the authorization of this Section so long as indebtedness remains against such buildings and their equipment, and to pledge the revenues from such fees and charges for the payment of the costs of construction and equipment of such buildings." 'Sec. 12. The Board of Regents is authorized to fix fees, rentals and charges for the use of the dormitories, auditoriums, dining halls, build- ings and all other facilities of the University of Houston, and shall make rules and regulations to assure the maximum occupancy and use thereof. The charges made and fees fixed against students and others using any such facilities shall be In amounts deemed by the Board to be reasonable, taking Into consideration the cost of providing such facilities and services, the use to be made thereof, and the advantages to be derived there- from." It Is noted that under Section 11, the Board of Regents of the University of Houston, Is authorized without cost to the State, to construct or acquire through funds or loans obtained from any source, public or private, such class- -buildings, dormitories, etc., as may be needed for the good of the University of Houston. It is further noted that the ,Leglslature in specifying the purposes for which funds or loans may be obtained, used the phrase, "Including, but not limited to. . .' It is specifically authorized to fix fees and charges against the students for the use of buildings and facilities erected under the authorization of this Section so long as the indebtedness remains against such buildings and their equipment and to pledge the revenues from such fees and charges for the payment of the cost of construction. -762- Mr. Phillip G. Hoffman, page 4 (C- 157 ) Thus, under the provisions of Section 11, the acquisition of funds cannot become an indebtedness against the State and, therefore, neither Section 49 of Article III nor Section 6 of Article VIII of the Constitution of Texas would prohibit the Board of Regents of the University of Houston from entering into contracts authorized by Section 11 of Article 2615g, Vernon's Civil Statutes. See Attorney General's Opinion C-134 and authorities cited therein. Subdivision a of Section 4 of Article 2654a, Ver- non's Civil Statutes, provides: "Each of the governing boards of the various institutions of higher learning covered by Sec- tion 3 of this Article la authorized to charge and collect from students registered in said respective Institutions fees to cover the costs of student services which the said governing board deems necessary or desirable in carrying out the educational functions of the Institution, such fee or fees to be either voluntary or com- pulsory as determined by the said governing boards. Provided, however, that the total of all such com- pulsory student service fees collected from all students shall not exceed Thirty Dollars ($30) for any one (1) semester or summer session. Provided, however, no fee for parking service or facllltles may be levied on any student ex- cept those who choose and desire to use th parking facilities provided." (Emphasis added). Under the facts submitted by you, the University of Houston is collecting a parking fee from those students *ho choose and desire to use the parking facilities provided, 'and desire to pledge such fees to retire any loan obtained pursuant to Section 11 of Article 2615g, Vernon's Civil Statutes. Based on these facts, you are advised that the Board of Regents of the University of Houston may borrow money for the construction of student parking lots, provided that such loan shall be without cost to the State of Texas, and is paid only from fixed fees and charges against the students of the University of Houston who choose and desire to use the parking facilities provided. SUMMARY The Board of Regents of the University of Houston may borrow money for the construction -763- I . Mr. Philllp G. Hoffman, page 5, (C- 157 ) of student parking lots, provided that such loan shall be without cost to the State of Texas, and is paid only from fixed fees and charges against the students of the University of Houston who choose and desire to use the parking facllltles provided. Yours very truly, WAGGONER CARR Attorney General Assistant JR:ms:mkh APPROVED: OPINION COMMI'ITEE W. V. Geppert, Chairman Gordon Zuber Nicholas Irsfeld Fred D. Ward APPROVED FOR THE ATTORNEY GENERAL BY: Stanton Stone -764-