Untitled Texas Attorney General Opinion ( 1946 )

OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
GROVERSULLERS
AT~ORNEV
GENERAL
Honorable E. H. fonwf, President
~0-8 c0ilege or a ta ld muatrier
Kin *@Vi1lo, Teur
opinion HO. 0-6993
Dear Sltz If*: Authority or
rnm0t0r8 0r
a propo8*4.Vetemn*
meet the lxl8tin6 8
Attornel @enerr
mm 0r money rr The benk 18 oon-
to emume thla oharaoter
etion of whethecthe Boar4 om
loeel or inrtitutlonal rw8
l houring‘proojeot rn inadequate.
tutea are pertinent to the question
the Boar4 or Mreotora of the Colleuo
or Arte ani &wIustrier are hereby aererally author-
ised and uapowere4 jg oan truat or oauira thra\g4
t-Us or Lowe to be obtaLed from the 0oternmont
or the Unlteb Steter, or eny agenoy or agenoieo
ther eoi , ctreated under the National Rmoovery Aot,
Hon. E. I?. Jones, page 2
or otherwise oreeted by the Federal Qovsrnment
or iron any other aouroe mlvate OP ~ubllo,
without ooat to the Stete of Texas. and 8OOeDt
title, aubjeot to auoh conditions 6nd limits-
tiona as may be preaorlbed by eeoh of as14
``````lQ~mi~@r``a, kltohena and dining hells,
rem es, student eotlvlty bulldln4a.
-
gymiealr ,-•thLetlo bulldinsa an4 atadia, end auoh
other bui3dlnga ,ea say be needed for the good of
ZZ%l$W~*~,“,e``;“,t Z%oiXZt``o~E%~n
the total ooat, tme or oonatruotlon. oemoitlr
of auoh bulldlz&a;- as well es ‘the other plans- en4
apeoltloationa have been approved by the reapea-
tlve Cbovernlng Roerda~ prwlded, however, t&t
the Legislature ahall. never meke an appropriation
out or the general rund or this State, either in
the r e g u lalpproprletlon
r bill or In a aupple-
mental or emergeno appropriation bill, for the
purpoae 0r equipping or r0r the purpooe 0r pur-
ohaeing and lnatalllng any utility oonneotlona
in en9 oi the bulldlnga ereoted under and bg~
virtue or the provlalona or this A0t.w
Sea. 2.
II. . . .
That said Boards ere rurther euthorlzed to
make eny oontreot with retersnae to the oollea-
tlon and dlapoalti.on of the revenuea derived from
any building 80 oonstruoted ln the loqulmltion or
oonatruotion ,menagement, and malntensnoe 0r any
building or buildinga acquired hereunder. In refer-
enoe to the aequlaltion of atudent aotlvlty bulld-
inga, steale, gymnasie,~nd all ohareoter or athletie
buildings, said Boarde 81‘8 authorized elao to m&e
oontraota with reference to the aolleotlon and aa-
position of revenues to soorue to euoh rsapeotlve
lnatltutiona from aotloltlea, ethletlo eventa, en4
gamee. in which naid reepeotlve institutions per-
tiolpate swag rroin e8Id Institutiona, a8 well ma
93.9
et said lnstltutlona; and in antlolpetlon or the
oolleotion of suoh revanuea, and ror the purpoaa
of paying the ooat of the oonatruotlon or ao-
qulaltlon or said bulldlng or bull4ln~a and
grounds, said Boards are reverally empowered by
resolution to authorize, sell, en4 deliver its
iiegotleble bonds or notes ttom time to time end
A auoh amount or lmfmna 8
be oolleoted after pnJaent In rull ahell have
been oompleted for the bulldi~ or bullalnga ror
whloh said fees shall be pledged. Thereefter the
right or sold rrapeotlve Boab48 ‘to fix oharms
end reea shell depend on laws other than thli Aat
as hereby amended. Any bonds or iiotra insue
hereunder ahall beer
six ( 5%)per ~o ent9ef
meture not more t&n rmty se** rrom dete.
(Bmphaala supplied. )
Sea. 3. Subject to the above restriotlona,
eeoh of said Boer&a 1s given crcmplete dlaoretlon
in rixiugthe r0m, oond.ltlona and details or auoh
bonds or notes. Any bOnda or notes lesuea here-
under rhall not be en lndebte4neaa of the State or
Tams, but shall be peyable solely rmn the revenuea
to ba derived fro&u the operation ,ot sold buildings;
provlaod that euoh bonds may be reilnsnoed by the
raid Boards whenever auoh eotlon IS round by the
Board to be naoeaa8ry.
“* . . .
Seo. 4.
Vsoh or said BosrdS la authorized end earpowered
to pledge all or a part of such revenuae to the pay-
ment of suoh bonds or notes, end to enter euoh rgree-
ments regarding the lapoaltlon oi eutilolent ahergea
end the oolleGtiOn, pledge and diSpOaitiOn Or suoh
revenues a~ it may deem proper. In all oaaeB where
Zion. E. 8. Jones, gage 4
existing bulldiwa or atruoturea ere repaired or
snlerged or to whioh additions are aonatruoted,
the board shall also have the power end are hero-
by authorized to pledge, inoumbeti end/or dlapoae
0r the net revenue,* 0r tauoh exlatihg buildings or
struoturee as well aa to pledge, lhoumber ax&d/or
dispose 0r the revanuo derived rrax the eaaitiona
or hprwomenta to au&h 8truotwea.
(1. . . .
vEeoh oi acid boar&r la hereby luthorlzed en4
empowered to pled- the unused pert oi,any revenuea
rrom salt-llquldetln4 bullainga ror the ecmatruotlon
of lnp other bulldln&w auoh board mar deem neoeaaery.
Eeoh OS mid boerds is authmlted cad empisuered to
pledge the rantala oi dormitO~le8, oottegea, or other
lnoome beering praparty ror the repelr, enlargament,
or oonatruotlon or any other bulldlngr auoh boar4
mar deem neOeaaer~.w
Artlole 2909~.
Reotlon 1.
I). . . . . . the Boar4 of DZreatore of the Colle(te
or Arts end Induatrlea ore hereby authorlred an4 em-
powered to ereot and equip, end to omtraot with an)r
peraon,flrm or oorpomtlon,for the ereotlon,oampletlon
and equipping or dwmltoriea, oottema,or etaaiuma,to
ba erected either on the omapua or reel estate then
owned by aeld aollegea, av on other reel eatete pur-
oheaed or leased for the purpose, and the Sal4 Board8
oi Mreotors are hereby l xpreasly euthorlaed to pur-
ahaae, or leeae, additional real entats, Sor auoh
purposes, provided said Institutions hove auffiolent
surplus rrom local funds, but not eroeedlng twenty-
rlvr (25s) per cent or the total for a81 tlsoal year,
to pay oeah for any purohese Ot land; or the purohaae
of land is made rrum runda derived imai the aale of
ravenue bonds or notes. The bomla or notes authorized
herein are to be paid solely front the revenuea of the
dormitorlss, oottagea and stadium, and shall never be
oherged against the State nor any 6pprupriatIon made
Hon. E. N. Jonea, page 5
by the “tate nor shall any portion of &aid approprla-
tfon ever be used for the psyment of mid notes or
bonda; nor ehall any looal or institutional funde in
ax0888 or twenty-rive (25%) per cent 0r the tats1 r0r
any oalendor yeer ever be used for the payment of said
notes or bonds. It being the intention of the Legla-
Zature to authorize the payment or said notee and bonda
solely rra revenuea derived from the lmprovemonts
authorized herein end an emergency to be au plemented
rrom looel funds not lxoseding twenty-five 7 25%) per
oent ror any rlaoal year.
sea. 3.
*In payment for the ereotlon, oompletlon and
equipping or suoh dormltorlea, oottagea and 8tadiuma,
and the purchase of the neoesssry sites thereto, the
Boarda aroreeald are further authorized and l mpoWared
to issue their obllgatlona in such 8u.m or suma and upon
auoh term8 and oondltlona as to raid dlreotora may 8eem
advisable, snd aa aeaurlty for the payment thereof to.
Dledae the net rents. roes. revenue8 end lnoomea iron
ihe hprovementa to 60 erehted hereunder. &vi bonda or
note8 Issued hereunder shall beer intereat at the rate
not to exoeed six (6%) wr oent uer annum and ahal.
finally mture not more then twenty ytara rrau da=
Tmpha ala auppli ed. )
NO. 4.
*The atoreaald Bosrds are heroby euthorised and
empowered to pledge the unuaed part of sny revenue8
from 8elr-liquidating bulldlnga ror the oonatruotlon or
additiona to said buildinga or the oonstruetlon of any
other building8 and the purohaae oi the neoemary 8ites
thereto suoh Boards may deem neoeasary, provided that
any subsequent issue of revenue bonds or notes shall be
a aeoond lien on said net revenuea, rents, reea and
inoomcss and shell be inferior to any outstsndlng revenue8,
bonds or notes whioh are seoured by e pledge of said net
revenuea, rents, ree8 and incomes.
. LL
9 22
c
HOU. E. N. Jones, page 6
I
$00. 5.
Vhe Boarda afor~esald are hereby authorized
and dlreoted to eatabliah and malntein such aohedule
or rates, fees end ohargea ror the uee of the iaoll-
ltlea arrorded by Its dormitories, oottagea and
stadiuma, and the revenue ircm the athletio iielda
and stadIuma, v&ioh rates, ream and ahargaa shall
be in an amount at least auffloient ta pay the opa-
atlng and malntenanoa ahargea thorwt end ta pay tb,
prlaelpel and intereat representing the ladebtedaw8
against said revenum, rents, feea and inoamer.
Sea. 7.
*All re.venue bonds shall be examined and lppravod
by the Attorney Ganaral oi the State of Texaal adl the
f3tate Auditor shall apprave auoh revenue boada ar rate-
‘me notes otter an examination ai revenue8 whloh ahowa
a naaon~ble proapeot of adequate roata, lao``e, fees
ar ohargoa to pay prlnolpal amd lntoroat, and a11 ap-
proved bands shall be regiaterrd In the oi?loa af. %ha
C~ptroller or Pub110 Aooounta or the State 0r Tima*.*
It will be noted that under the prorlalona oi Artlola
26030, the Board la outhorlaed to laaua its revanue nabe for
tha purposes met Zarth in your latter, the statutory aandlt~lona
being that the note shall bear lnteroat at not to uoeed llx
p eroent (64) p er lrmm, and ahall tlnally matwe not wra than
40 years from date. Interpreting this statute, Opl5lon Ito.@-1694,,
or this department, held that under the provIalona af Artlole
26030, the Board oi Regents or the State Teaahara College of
Texas wan authoriaed to exeoute a #lQ+OOOnote, payable in 18
,yeara, ror the oonstruotlon or a at ottlae building on the
main campus oi Worth Texas State Tlaohera’ College. The opinion
rurther held that the Boerd or Regents was not empowered to pledga
looal runt%8 whleh mey be available severe1 years In t&e future for
the payment or this note. The opinion pointed out that Art. 2909s
“,:a:;: apply because of the type of building desired to ba
.
Artlolo 29090, however, does e!jply to ‘fdormItorleaW
or woottageaW whioh are the olaes of buildin:;ta your Board de-
sir88 to contract ror and areot. It 18 noted that this Artiolo
author$xsa your Boerd to issue its revenue note, the oonditlona
being (Sec. 3) that such note ehall beer interest at a rate not
to exoeed 6s aer annum and shall iinally mature not mare than
20 years From d&e. In Opinion No. O-1273, this department held
that Coation 1 0r Artlola 29090 I. . . . expreaaly provides that
la the event the revenues derived from auoh improvements are la-
auiriolent to meet the annual debt requirements, then and la t&t
event the fund8 may be 8upplamenteU from 10081 iunda not exoeedirg
25% ror any ilao year. ..?* Qplalon No. 04836 advlaed the Board
of Regents of the State Teaohera’ Colleges thet North Taxer Stat.
Teacher8 College we8 authorized to retire rovbnue bondlr inaued
ror the oonatzuotlon oi oartaln oollage buildings by using a aur-
plum in its loos1 fund.
Ln pa8stng, we call your attention al83 to Artlele
2654d which provides that your Boar4 oi’Dlrector8 may retain eon-
trol of all loeel fun48 and plaoe the Iame In a lpoal depository.
By Se&Ion 88 of this Statute , auoh oontral la made aubaenlent
to the will ,of the Leglrlaturr, .a l
8xpreaaed in its biennial ap-
proprlation bill. In thla oonnaotlon, we point out that the pro-
vlalon8 or the epproprlatlon bill ror the eduoetloncll lnatltutlonr
oi the Stata,as enacted by the 49th Legislature, appreprletea auoh
looal ruada ror wimprovem*nta” alit other pur>oaea. Sac Chrpter 377,
Aota of the Regular Beamion of the 49th ~glalature, p. 804.
You are therefore reapeettullp advised that, in the
oplnlen or thlr d8partmant, your Board may prooaed under either
ArtIola:: 2909e or 26030 to erreot the loan In question. Provlalona
ror its payment may be nada as provlQod in either of 88ti Artlolea.
JDS:rt Aaaletati.