The Attorney General of Texas January 14, 1982 MARK WHITE Attorney General Supreme Court Building Mr. John Lloyd Bluntser, Chairman Opinion No. MW-425 P. 0. BOX 12546 Board of Regents Austin. TX. 76711 Pan American university RS: Disposition of restricted 512/475aOl Edinburg, Texas 78539 purpose funds donated to a Telex 9101874.1367 university Telecopier 51214750266 Dear Mr. Bluntzer: 1607 Main St.. suite 1400 Dallas, TX. 75201 You request an opinion of the legal status of $58,324 in funds 21417428944 transferred from your Unrestricted Donations Account No. 2901 to the Business School Excellence Fund. 4624 Alberta Ave., Suite 160 El Paso. TX. 79905 It appears from your letter and supporting data that Pan American 9151533.3464 university received $76,725 in donations from various companies. These funds were restricted to “se in the business school and were set 1220 Dallas Ave., Suite 202 aside as a Business School Excellence Fund. It further appears that a Houston, TX. 77002 transfer of $58,324 was made from the Business School Excellence Fund, 7131650.0666 where the restricted funds were placed, to Unrestricted Donations Account and then returned to the Business School Excellence Fund. SO5 Broadway, Suite 312 Lubbock, TX. 79401 Section 112.34 of the Texas Education Code provides: SWi’47.5236 The board may accept donations, gifts, and endowments for the university to be held in trust 4309 N. Tenth. Suite B and administered by the board for the purposes and McAllen, TX. 76501 51216624547 under any directions, limitations, and provisions that may be declared in writing in the donation, gift, or endowment, consistent with the laws of 200 Main Plaza, Suite 400 the state and the objectives and proper management San Antonio, TX. 76205 of the university. 5121225-4191 That statute is controlling. The $58,324 in question was, An Equal OpportunityI according to the information you have furnished to this office, placed Affirmative Action Employer in the Business School Excellence Fund, removed, and returned. That sum is now in the proper account and any use of it is governed by section 112.34 of the Texas Education Code. Your letter also indicates that a report of the Governor’s Budget and Planning Office suggested that this sum be placed in the General Revenue Fund of the state. Such transfer would be contrary to section 112.34 of the Texas Education Code. The funds may be used only for p. 1448 Mr. John Lloyd Bluntzer - Page 2 (MW-425) those purposes authorized by the donor pursuant to section 112.34 of the Education Code. SUMMARY Funds received by Pan American University by gift or donation are subject to the provisions of section 112.34 of the Texas Education Code. Very truly yours, MARK WHITE Attorney General of Texas JOHN W. FAINTER, JR. First Assistant Attorney General RICHARD E. GRAY III Executive Assistant Attorney General Prepared by Jerry Cain Assistant Attorney General APPROVED: OPINION COMMITTEE Susan L. Garrison, Chairman Jon Bible Jerry Cain Rick Gilpin Jim Moellinger Bruce Youngblood p. 1449