The opinion
October lo, 1963
Mr. Philllp G. Hoffman Oplnion No. C- 157
President
University of Houston Re: Whether the Board of
3801 Cullen Boulevard Regents of the University
Houston 4, Texas of Houston may borrow money
for the construction of
student parking lots, pledg-
ing that portion of student
parking fees not actually
required for regular repairs
and operating personnel
for the repayment of the
Bear Mr. Hoffman: loan.
Your request for an opinion reads as follows:
"With its tremendous increase in enroll-
ment this Fall, the University of Houston is
faced with the necessity of building new park-
ing facilities, at a cost which may approxl-
mate $500,000. If legally possible, the Uni-
versity proposes to borrow the money necessary
for such construction, probably for a five-year
period, retiring the loan from proceeds of a
special parking fee.
"Essential facts are these:
(1) Under the provisions of Article
2654a, Section 4.a, Vernon's CXV-
il Statutes, the University of col-
lecting a student parking fee is
5 for each regular semester and
$2 for each summer term of six weeks.
(2) The University Is operating under Sen-
ate Bill 2, Acts of the 57th Legis-
lature, regular session; as amended
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Mr. Philllp G. Hoffman, page 2 (C- 157 )
by House Bill 291, Acts of the 58th
Legislature; compiled as Article
261565, Vernon's civil Statutes.
(3) Section 11 of Article 2615g gives the
Board of Regents very broa3 authority
to borrow funds. Particular reference
Is made to paragraph one of this Sec-
tion which enumerates the projects
which may be financed I. . .and such
other buildings and facilities as
may be needed for the good of the
Universlty of Houston . . .I (under-
lining supplied).
'Reference Is also made to the second
paragraph which appears to permit the pledg-
ing of special fees to retire loans made for
construction.
"QUESTION: May the Board of Regents of the
University of Houston borrow money for the
construction of student parking lots, pledg-
ing that portion of student parking fees not
actually required for regular repairs and oper-
ating personnel for the repayment of the loan?
'Since our parking problem is critical
and in need of immediate solution, we will
greatly appreciate your opinion as soon as
possible.
The University of Houston was created by the pro-
visions of Article 2615g, Vernon's Civil Statutes, and the
organization and control of such University is vested in a
Board of Regents created by Section 2 of Article 2615g.
"Sec. 11. The Board of Regents of the
University of Houston is hereby authorized and
empowered without cost to the State of Texas
to construct or acquire through funds or loans
obtained from the United States of America, or
any agency thereof, or any other source, public
or private, and accept title thereto subject
to such conditions and limitations as may be pre-
scribed by said Board, Including, but not limited
to class room buildings, dormitories, kitchens
and dining halls, hospitals, libraries, student
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Mr. Philllp G. Hoffman, page 3 (C- 157 )
activity buildings, gymnasia, athletic buildings
and stadia, and such other buildings and facili-
ties as may be needed for the good of the Unlver-
sity of Houston and the moral welfare and social
conduct of its students, when the total cost,
type of construction, capacity of the buildings,
plans and specifications have been approved by
the Board.
"Provided further, that the Board is author-
ized to fix fees and charges against the students
for the use of the buildings and facilities erected
under the authorization of this Section so long as
indebtedness remains against such buildings and
their equipment, and to pledge the revenues from
such fees and charges for the payment of the costs
of construction and equipment of such buildings."
'Sec. 12. The Board of Regents is authorized
to fix fees, rentals and charges for the use of
the dormitories, auditoriums, dining halls, build-
ings and all other facilities of the University
of Houston, and shall make rules and regulations
to assure the maximum occupancy and use thereof.
The charges made and fees fixed against students
and others using any such facilities shall be In
amounts deemed by the Board to be reasonable,
taking Into consideration the cost of providing
such facilities and services, the use to be made
thereof, and the advantages to be derived there-
from."
It Is noted that under Section 11, the Board of
Regents of the University of Houston, Is authorized without
cost to the State, to construct or acquire through funds or
loans obtained from any source, public or private, such class-
-buildings, dormitories, etc., as may be needed for the
good of the University of Houston. It is further noted that
the ,Leglslature in specifying the purposes for which funds or
loans may be obtained, used the phrase, "Including, but not
limited to. . .' It is specifically authorized to fix fees
and charges against the students for the use of buildings and
facilities erected under the authorization of this Section so
long as the indebtedness remains against such buildings and
their equipment and to pledge the revenues from such fees and
charges for the payment of the cost of construction.
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Mr. Phillip G. Hoffman, page 4 (C- 157 )
Thus, under the provisions of Section 11, the
acquisition of funds cannot become an indebtedness against
the State and, therefore, neither Section 49 of Article III
nor Section 6 of Article VIII of the Constitution of Texas
would prohibit the Board of Regents of the University of
Houston from entering into contracts authorized by Section
11 of Article 2615g, Vernon's Civil Statutes. See Attorney
General's Opinion C-134 and authorities cited therein.
Subdivision a of Section 4 of Article 2654a, Ver-
non's Civil Statutes, provides:
"Each of the governing boards of the various
institutions of higher learning covered by Sec-
tion 3 of this Article la authorized to charge
and collect from students registered in said
respective Institutions fees to cover the costs
of student services which the said governing
board deems necessary or desirable in carrying
out the educational functions of the Institution,
such fee or fees to be either voluntary or com-
pulsory as determined by the said governing boards.
Provided, however, that the total of all such com-
pulsory student service fees collected from all
students shall not exceed Thirty Dollars ($30)
for any one (1) semester or summer session.
Provided, however, no fee for parking service
or facllltles may be levied on any student ex-
cept those who choose and desire to use th
parking facilities provided." (Emphasis added).
Under the facts submitted by you, the University of
Houston is collecting a parking fee from those students *ho
choose and desire to use the parking facilities provided, 'and
desire to pledge such fees to retire any loan obtained pursuant
to Section 11 of Article 2615g, Vernon's Civil Statutes.
Based on these facts, you are advised that the Board
of Regents of the University of Houston may borrow money for
the construction of student parking lots, provided that such
loan shall be without cost to the State of Texas, and is paid
only from fixed fees and charges against the students of the
University of Houston who choose and desire to use the parking
facilities provided.
SUMMARY
The Board of Regents of the University of
Houston may borrow money for the construction
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I .
Mr. Philllp G. Hoffman, page 5, (C- 157 )
of student parking lots, provided that such
loan shall be without cost to the State of
Texas, and is paid only from fixed fees and
charges against the students of the University
of Houston who choose and desire to use the
parking facllltles provided.
Yours very truly,
WAGGONER CARR
Attorney General
Assistant
JR:ms:mkh
APPROVED:
OPINION COMMI'ITEE
W. V. Geppert, Chairman
Gordon Zuber
Nicholas Irsfeld
Fred D. Ward
APPROVED FOR THE ATTORNEY GENERAL
BY: Stanton Stone
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