Case Information
*1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN
manorable W. 0. heed Ohairman
Appropriations Oomdl*u
Ifou8o of Rspree6nbatlre8
Amtin, Tawaei
X94&, in -Mob you OS Emwe Bill Run- 8umuulaed u follow@:
Bonombl. w. 0. Red, ps$Q
:i.otion 3 pr0~ld60 th.t the building ue6 ie6 *hall
be ~$~poeltcd In the Dopoeitory Brrnk of inetltutlon in a l p.olal aooount d.soribfng th. purpose for whl*h th. Se. wao ao1l.ot.d and the obJaot8 Sor whlah it io to be .ppll.d.
SootIon I+ pr.rId.8 that ouoh Se. rrhal.1 bo ooll6ot.d
at the tlm th. regular rev&W-ation feea c.ro oolleotod and by the eam6 oftlol6lo ooll~otln$ the rQgl.trotlon fear.
i3eoOlo,n 5 prool660 8hat atu44nto taking lam than
hlv. oredit hour6 oi work .hall pay only 6 imotl.nel &m't of th if.6 t1X.d IOIP thos. mtudents taking tWelV. OT BOIQ OMdit hOUT0 end dLQC+ prO~f660 fOT th6 gf4pQXlt Of 6 1QOOQr i.. b7 atudento In th e 8uem.r l ~orlon.
s.otlon 6 proribws tht gor.mlng body of l aoh or named institut%ono lr authorio.4 to ¶.OQUQ, 0611 USI do- ,Sl~ter n.(totiabte rev6nw boodo to mture serially or 6therwIo6 in not sxoe~dlng thirty ye.ro from tholr &to, bear lnter.ot at not .xoe.dding four per 06nt per anDum and to 4oataln proti- l lona for mymmt to b. betatnln.4 by 6.h boardo, It 16 fur- thcr provided thet ouoh batrd lo *authorldm¶ to plodgo 611 or aof portlsn or th. ptoo66d0 of ths buflaing UIO f60 8utharlaod la i?Qotlcm L of this A.$, ml l eld bond0 slag b. additionally imath buililiawoand 06urQabyu pl.dg.orth. netrsr6m6. t.ollltlso to b. oonatmot.4, .oqttlr.d or ingrovod with bh. pr006odo at suoh bond8 and frm 0th.~ bollding or fQOIliti.0 hetitofore or h.r.after oonotruabd or aoqu1r.d." 6u.h bmrdo are rsq'uimd to fir th. upomt of owh fees, wlthla the 8axImua rate of $5.00 per cremuter, o that proo66d8 will be ruffl- 616nt to pay the lntoroot and prim1 al ou acid an4 to provlbe a r.aoon&bl* re66ne. when e ho bondo are 86cur6tl in whole or In part by a pl.d.@QW~bho net r~v~nueo from bulMlngo tw faollltl.8, owh board met fix, x~ntal. and ohm&es for the bulld- lag8 antI ffaoilitlu wboar net rovenuaa are thus glod&oa a? rat68 oufriolent to pay Pralntenasm md opsration expense 05 8u.h bPildirys# and ieoilitt66 rrb to produoe net r4v4nu60 wh10$, to- @ether with th. building ~66 i60 autbariced in B6otj.S 1, dll aufrloleat pry latarcot and prlnolpal oi 8Boh tmnd. as they say aooru6 metur6.
ganombla W. 0. Reed, Peg.
Seotion 7 provides that the boards o? th. naxed ln-
gtitutlon~ &all not be permitted to contraot bondab indQbte&- ne~g la exoeea of eighty per e.nt of th6 amount whioh can be ~rart1s.d with the rerenuao from said building ~66 tee e+otlaoted & the time O? the authorization Of auoh l'QVWIU6 bOnd0. Any QXLQQOO revenuee aooruing irom said ise, above the amount ne3rmaLLy ~qulr.d for the orderly retirement o? said bondc, #hall b6 held rurplua in the speolal bon4 aooouPt as a ~oontlngent fund ior \ilQ wh.n nsoessary in the 4rsat o? a reduction or income from a deorQas6 o? enrollm6nt.
Saotlon 8 protl4.s that bondr 1e.u.d under th. pm-
rlsien. O? this i.ot shall b. eligible inVtwtment,s ?Or the PQX'&WinQnt Sohool Pun4 o? Toxao.
Seetlon 9 provibba thet the bon60 must be appzwvrd br the i0torn.y Ocneral and rsgleterwl in o??lo. o? the Oomptawllar of Pub110 Auoounto. Aster the me 60 apprared an6 re Sst;e&, it Lo prorid. that they shall be held to be valid an3 bln(L L - @ion8 the8 the o~rti?ioat8 o? oppnr*al o? the Attorney Q6n6tlil ar a 4& ortiiried oopy thereat shall be admitted an6 reoelved in QVldQnOS, and that th. OtiJ dQi8n8. whloh Oan be O?fQrQd OgalnSt Talidity Of Buoh bonds shall rOXg6~ OX fcaud.
Beotlon 10 lo exergenoy olausa. The prorlolono o? Hmaro Bill tie. 349 oummarix~d above, 6x6 tar; l lmllar the pra~l.lono oi Artlele 16030, Y.rnon*o Annotated Cl~ll Statute., whloh was held to bs aonetitutlonal by this d.patii!mt in Opinion Xo. 0-169b. A oopr o? thlO o~lnlon lo ttaohad hereto ?or your fnfommtlon. EOUBO Bill $0. go.0 hither than Artlola 2603.. Ln that fIou66 Bill Ho. 349 uthrir.8
tE6 l66uanoQ or bonds Zer paale of l3tXQQt6, the pG#ubBos oi land, other oapital' lmprorsmento, while krtlola 26030, pro- rid.8 for ths laeuanoe of bon&6 only ?Or the oonstruetfon O? buildingm o? tarioum kinda, but WQ do not believe that this dir- ?6rmoe le important ln doterminiog the oonstitutlonality of buro Bill 80. Both oot8 pmria6 ror the oolleotlon O?
i-r an& charges for U8. of builfingo, uhSah rQOD an& Ch&rger mey be pl.d~Qd th. payment O? the bonds. &a. 349, liti AXtd.010 We bQliQvQ that ~OU6. Bill
ir Valid, and that lto r&Ildlty is o6tab11oh.d by th. deolaion or
Eonorablo 3. 0. Reed, pago b Court or Texaa in the aaae of Texas National Guard
*ho supreme mry Board v. Mocraw, 132 Tax. 613, 8. W. (24) 627. see dmo Lawer Colorado Silver Authority v. I&Craw, 125 Tex.
8) s. W. (2df 6~29; Braem River eonsorvatlon and Haolamation pistriet v. &4&rnw, 126 Tex.~506, 91 W. (2d) 665; Ohorokee f$ounty v. Odom, 118 Tex. 288, 15 8. 1. (24) 538.
Very truly youra OVEll MAY 5, 1941 ATTOHBFP OENERAL or TlmA8 f?ti ATTORNEY GENERAL
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