Case Information
*1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN
. June 14, lQS9 /' Eionorable Tom C. King
State AuQltor a xtrrisieaey mpwt
Austin, Tent3
Dear Sirt lettar of Euns 8,
Pa hare r0r a0 mat-mot attaohad
19x1, whaieia ~'00 refer to your letter,
State Boerd ot mreur Aamoia- oh the Board of
Conourrsnt )ieaolu- tare, plaoer the acfnto Eeuorial Tower in said s the use or said buildlng
inoludi!q the lnatalla- Noel museum, and authorizes rs and to operate a comes- ng, the loaatioa of the aonaea- iah they am to be operated to seoaiatlon and spprovod by the Board e oplnlon ot this Degartment~upon the "1. Ooee the above mentioned oontract vlolatr krtiole Three (3) Section Fifty-one (51) of the State Constitution, or does thb drlrgatloa of woh ~ovsmmental authority to a self psrpstuatiag aor- poration rlolats any part or provision of the Con- stitution 0r thin Stats?
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Hon. Tcs C. King, Jam 14, 1939, Page 2.
*2. It question ISumber 0ua 18 anmrarsd in the nogatire, would uhargos far elevator senloo be pub110 monies end es suoh subjeot to State control? "2. U quartion litamber Oxi* is enowered In tha nega- ooa the pollolng mar of the b:saorfel ba tito, delegated to the aorparatiou? -4. If quoatlnn Eumber One $8 answered in the nege- tiva, would tha,titla to saored hiatorloal doeumanta or objoots purahaaad dth iuads or tare aarned by oorporatian BSOOIW the property of the Eltak, or would they ra8in property of t&o oorpora- tloa mbjsot to rhatoror dl~p01~1tl0~ 44li p4r- body shouldapalto Mtha? &mtuatieg
=5* KLf queStiOn Xuabsr On4 should be answered in the negetlro, da4 the oontreot requirement of ap- prove1 46 the Board of Control of the rules pro- mulgated by the oorporetion, ror tb4 operetlon or the Xlripculal, oonatituta thr oorporatlon an 4aplo744 of the Board of Control, or would it be ooastrued that tha Board of Control ir gfron roguletorr authority over the oorporatlon by oontraot; anb ii tha answer 14 t&i lattsr, what would be the sffeet of approval or disapprotel of tho Boerd, and would 4a4h ml44 ar th4 oorjwntlon b4 4rr40tit4 prior to the abprovil ofths Board7 It la intondsd this qusstfoa lnalude the provl~lon under whloh the corporation ia authorized, 'To make a maso& able oherge, tobe approved by the Board, for the use of the elevator to the obmtnetion toner in the top of the sheit.'
"6. If qusetion Number On6 le answered in the nrga- tire, would the prorlalon la ssotion 8i.x (6) or tbe oontraot reierrlag ths lBalanoe, if any, to bo used on the grounds of the San Jaolnto State park under the dlrootlon of the Board of Control* be funda bs dopositsd into ths State m495ulf, wuuld those tundo be dralnlster&d by the OorFora- tl on1
“7. If question flambsr One is in the negatlra, does the provlrlon of motion 81x (61 the aon- traot; *The A~mulatlon shell nzbmft to th4 Board ror approval, a dotallod monthly report of all Ool- these fund8’ man that lootleas and expsadltursa of 10 4 Stat4 agomy aoatnetins to tb4 rorporation *3 Bon. I'ma C. King, June 14, 1939, Fuge 3.
prrorm this rumtloa of ejovrrment?
“8. It qusstion Ono.14 in the rtegatlvo, dooo the provision in Section (8) OS contract In addi- tion to other provisions, *... shell tarmloeto and San feolnto Memorial Tower shall revert to the Stat4 of Tore8 . ..* oonatltut4 thr 008traot, as a loaao agreement of this publio property, to the oorparati on?*
Your Slrrt question la enavorsd la the nogatlre. Th4 bontraot does not violato hrtiole S, Sootion 81 oi our ConatltutioB, nor 60 far as 10 lm+o obaormd, ray other A portion or orovldo~ oi the Ooaatitutioa oi Tozaa. Th4. uthority or state T4raa to rntrr into aormaota this ohareoter van a&&old la the oaae or Conlay is.
Deughtera ait the Republio, 166 S. W. 197; whlahrea oeao d44llag vlth en Aat af L4gial4ture 0r the stat4 0r Tox44 uthoriaing the Qoromor to deliver the Ale160 pro- perty boldnglng to the Stat4 into the ouetody end oar4 oi ths Deughtere of the Republic of Texas, to be melntelnad them In good ardor and ropelr, without ohergs to the State, as a aeor4d mamorlel to the hero68 who lmolated theimaelv48 upon the hellowns& grounde. The Suprome Court the State of.Texas, in that oeee, upheld tha'powrr of the Leglsleture Texas thus provido for th4 oar4 and custody Its prop4rty, atatlng that State ha8 the 44ne right.8 and pm4rt in roepect to lta property as en individual. Speclflaally, the Court etated:
*a4 are of o9lnlon that the Stats, acting by its Legislature, had the euthority tc acqulra title to the Alamo property nC to place that pro- psrty In the custody of the aorpomtlon, the
Daughter6 of the Republlo.w
us to the question of ~olloy involved, the Court had this say:
This quclatlon is aekod: 'Should a Stat4 odt Its lntercsta to oorp0retlons7* This
Qourt has naught to do with the policy OS th. on that qu46tion.*
Stat0 Tour asoond qumatlon is amwersd In the affirrMtiv4. By Seation 6 of ths oontraot, it le oontsnpletad oorQOr4~Oa, aa tXU6t44 ior th4 Stet4, shell us4 th0 mOnO]r
Hon. rm c. King, inma 14, lOSO, Peg0 4.
OollaOtad from operatiag the 816vetOr defray the upenea8 of operating tha alaretor, peylne: janitors end mtohmen, end ror mainteaeaoe end polIoIng of the buildfag, and ror oomply- lng with the general term8 or tha racrolution of the Leglela- tare In reapoat to lneurenoe, with thm balaws of said aonaye, e well as the balenoe or ths net prorite remaining 6rtst be ueed on ground6 tha p6p6nt 0r 9~0h'6fp6n6e8, of the SUI JeoInto State Eark under the dlraotion cb ths Boer& of Control. The raotlon provides that the corporatloa shall suteeit to Boezd, r0r approval, dot&lad nonthly report 611 oolleotlonr end upcndIturae of eaoh runds. xt IO tharetors oontcllPplatsd br ths oontreot that expendlturae of SUO~ randa
tile state,
tha Stata
The money8 era thus subjeot to State oontrol In the uenee that the,stete lne the right to i66 that su6h moneys arc orpadded by t hc ctirporation in eooordenoe with tha term8 end pror~8Ione cf the contract and of the resolution of tho Leglelature.
Your third qiwetloa 16 anewwed in the afiirnta- tire. Ttm authority of the Legislature to plaoe’ the duty or polloing the memorial In ths hands of the oorporation hea been suatulned the oaee of ConUp VS. Caughters of tha Rspubllo, above raferred to.
Your fourth question Is answered In the nsgatlre.
The dlspoaltlon of the net profits oollsoted from sailing and operating a oonceaslon and the money collect- eowbairs ad fro= operating the elevator Ie provided by Seotloa 6 of The ooatraot ooatezpletes only that tha the oontroot. asmoiatlon ehall use euoh laonays for the purposee speoi- fled thereln, to-wit: (1) Expense8 operatlag the ele- vetor. (2) Paying janitors and watobmen. (3) Expensae of maintenance and polloine or the building. ( 4) For oom- plying with penerel tsm of the iesolution In respect to Iasurenoo. (5) The balenoe oi ths net prorltr alter suoh we8 ham beea aede, is required to be used on the grounds of the San Jaolnto State Perk, uader dir8OtiOn Board control.
It Is not oontanpbtsd by the oontract or by the resolution that any soared h.letolicel documntr or object8 purohered rlth suab rustle or Tee6 shell beaoms the propert It Is l rpreesl~ provided in d th e eo r p o ratlon, ror 6nd In the oontreet thet l asoeIatIon OT nrolution *5 Hen. la a. lUn&, Juno 14, 1939, *se 8.
eorporetion rhall sot l o trustee the Stat0 In nepbot ror th8 aare, eustodj, and Oontrol 6f the Ben feeinto X4notiel TOWSl' without eharge to th8 Stete of Texas), sol to @mit tBe we Or 8uOh rW88 to pUrOh448 wo&Wrty whloh I6 to beloolq to the ooa!poretlan, rettier thao to the Stats, would be ompeiwatlng meh oorporetIon ror ruoh serrfoee. Furthermore, 'the oontraot iteel# does 8ot oonta thet cay ef euoh rond8 shall bo used ror pure&e Seared hhtO?ieSl 6OOUaantB OF objects. my SUOh pro- perty &8 purolmsed by the l *e00Ietloa, th4r9r0a-0, would ,b9 hO1.d b UIh l SOOO~ti~, it pUSOh484d rdth 8UOh ruod8, 88 trustee r0rthe Stete, and not in it8 propriotwy 08PSitr.
Eowrer,.ell?urnftfUo tiktuk48 4nd 4qoiprUtt inetelled ta aefd bnllhI& bpf aid et the eXpease.& l eeoeIetIoa, peid r0r dth its own md8, en& all of St8
hIetorIeel &.~k, mt8riel 484 eollootion8, mid for with seotioa it4 om run44 andqr the prwir~on8 8 or the oontraot, oon&me tti brlw to sad reaeln the pomrty of aeeoeietion.
Aarrirlng yeur rmh questton, you ue edrleed
thet stetus of the e4rporetio4 h48 been detexuiMU by ease et ConLif r8.‘7haghtera ai the Ropabllo, sapre, tN8tM. stetesr The oaee reromd t0 b8 that *We are et oplalon that by tha l o oeptenoe or the t0m8 oi the statute, 'the corporation beom a trustee ror Steto.~
Seation 8 of the oontreot ooata8plet*8 that the
looatlon or the oono4ssfons end tha ruler under uhloh tboy are to.b4 operated are to be sateblIaha4 by said essoola- tlon end 4pproved by the Board ot Control. It Is lik4rIre Oontarpleted by said reotloa thet tbs oherge to bo nade by the l asooietion for the uee of tbs elevator to ths obserre- tlon tomr is to b4 epprordd by th4 Board ot Control.
Seotlon 6 of the aontreot likawiae oont4apletee e datefled monthly report of 411 aolleetion8 end l X- rundr dorived mm sellins soweairs, opsret- pwlditures in6 the 001m48don, end iron op4mstIng tho eleretor, shall
be mda to aa4 l pprwml by the State Board of aontrol.
fn our opinion, NleS of the oor~etlon roold not be rreotlve prior to the apprcnel of Board, nor rolrld the oorpOr4tlon b4.eathorIzed to melu any oherge ror the use at lw*tor fir’she boenm of its prim
c lar U. King, Juae 14, 1939, Fage @.
Eon.
l p p rwel by th e Boerd.
IB our o plnhn, th e beleaoe rerured to ln y e u sixth question oonetitutes a tNet fua& to bs ho14 by the trustee, the oorpuatloa r0r the asarad Eukeflt ef br the tN4tOa oorpaeatiea tha Stab, and to be expend the &a JIoInto Skte Furl 66 ray k on tbe gramIs directed by the Board of Control.
Tour reventh queatlon baa olraedy been l wwend. The 8orparetion is 4 tmstee, 8nd tithe 8ddnletnbioaL of in, by the tens 0r the eontnot abjsot to the th* trust ~upemleery-ooatrol c4 tha Bar4 af Cemtrof la the partlrular inalorted bwe. nrPeote
The elmnoter of ooatrol melnteImU by tho Bard 18 further saJh8iZad by the. prorieloae or Saetloa T, wbloh nqulre the preperetloa by thm eor$or&tiox of neoeeury nxlem uSregulatf6ns oovering the aplete oparetioa or the build:% end the 8UbdSdO~ of 8uOh tie8 and r’O&Ul~- dons Boerd for approval, end the proviri~na of Seotion 0, whloh prwido that ir the'srent d a brueb by oorporetlon of enf 0r the temw or l omB~tione or the oontreot, the ooatr8ot et option 0r Eoard slmll termlnete and 0en Jaointe Xuer%el Tower rwert to the por6e8ri4~1 the Stete or Te&s, ~adl the Ti(Ihte Or eseoeletion therein uhtil 0068e.
Aaswarlng four eLghth question, the eontnot is trust, ret&r then 4 loose, agreement, She d istinotion upon the ocpaelt~ in uhloh tbe eorpontion takes resting posee8elQn 0r the proPertyc We trust tbt abare etisfeotOT~y en8ww8 ell or youT illqulries.
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A3WRltEYUBIPIL0?TEXh8