Case Information
*1 I OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
4- 0. MIWW ATraalu” QmlULL
Honorable F. E. Law, h4da0nt OS Dlrsotora
A k M College of Teur :'~
Flrat National Bank
Howton, Texar
Dear Sir:
law that all ore&ire8 of the Stat4 poaraa8 -4d principle only euoh powera 48 are oonferred by tha law oreating them, or mioh incidental powers aa are neoeaaary to oarry out the pur- pa80 of their orcation, Therefore, we nwt look for the author- ity to purohaae such boule, if any exids.
hrticla 2669 of Vernon's fdmotatea Civil Statute8 reads as followar *The Stats o? Eaucetlon is outhorlaad
ana 0itpower4a to lnr4at the Psrla4nent Fubllo Free sohool yunda or the State in bona8 or the United States, the State o? Texas, cr a4 county therao?, or 00m-m Sohool aiatriota, eDd the independent r0na prsolnota, brtlnage, lrrlgation, narlgatlon aad levee dlstriota in this State, s&xl the borda of inoorporated cities and towna, and obllgationa and pladgea of the Cninreity or T4~48.~ This article is the Enabling Aot passed pursuant to Seation 4# Article 7, o? the Constitution, which reada, in part, as followa
"The Comptroller shell lnveet the prooeada such sales ard o? those heretofore naae as may be dlreoted by the Board o? Muoation herein pro- vided tar, in the bonds of the onltsd Statea, tha State of Texas, or oounties in said State, or $& e other 8eourltieS and under guo+ re6tri~loaa e ~~presorlbedb~aw * c . -
This artiole o? ths Constitution wa8 adopted on
August 14, 1889, and became law by proolamation September 25, 1883.
The first statute adopted by th4 Legislature ap- psara in the Aota of 1905, page 263, and was later amended by the Lots o? 1909, page 216. I%oh amendment, inoludlng that o? the Aot8 O? 1929, Forty-iirat Legislature, p4gge 573, Chapter 278, Seation 1, enum4rated additional bonds in whloh the State Board of -Kduaation was authori%& to Invest the Stat4 F:erraanent Sohool Fund. It 844ma olsar that the bonda deeorlbad in your letter oould only aom4 under a olaariii- oation such s8 thut eaaea by th4 am%ndment of 1929, wherein the Fund ~46 permitted to be invested in Wobli~tlone and Yanlr4atly, this pro- pledges of the Unitersity o? Texas.” vlelon cannot be exterded to include obligations or pledg48
HonorableF. 16. Law, page #3
of the Agricultural end kechenloel College o? Texee, whloh, while referred to in the Constitution 88 e branch of the University of Texes, possesses oheraoteristloa end powera peculiar to a separate and independent entity, end in our opinion this portion cr the rtatute would for this resson be fnapplloablo to the bonds of A t Al College mentioned in your rsqueet. Further, the law authorizing the iaeuanoe of l uoh a bond expressly provides thet it shall not be en obligatlon o? the A lk 16 College, nor shall it be oonatrued to be an obll- gation 0s the 3tate 0s Texas, and the holders thereof ahell not be entitled to look to the oolleotlon of taxes ?or the payment thereof, but only to the reven~ea ecorulng ?rom the operation o? the projsot ?or whloh such bonds were lasued.
You 4r4, thererore, advised that the railure or the law to euthorlas the inreatrmnt o? the State Pernmneat Sohool Fund in bonas or the olaas aesoribea in your oommsml- oation, in our opinion, amounts to an fnhlbltfon to the State Board or i$aucation puroheaing auoh type bonds.
Vary truly yours Aaaiatant