The opinion
R-54
THE A NEY
OF%-EXAS
AUSTIN.TEXAS '
Jan.28,1947
Hon. S. B. Whittenburg, President
Board of Regents
Texas State College for Wanea
c/o Amarillo Times
Amarillo, Texas Opinion No. V-54
Re: Local funds or institutional
receipts, expenditure of for
research purposes by Board
of Regents of Texas State .
College for Women.
D~ear Sir:
We acknowledge your letter of recent date wherein you
request an opinion of this Department concerning the following
submitted question:
“Does the Board of Regents of the Texas State
College for Women have authority to authorize ex-
penditure of its local or general funds for research
purposes?”
Article 2654d, V.A.C.S., providing for the control of the
type of funds in question by the governing baard of State institutions
of higher learning provides in part as follows:
“Sec. 1. The governing boards of. . . including
. . . College of Industrial Arts . . ., may retain con-
trol respectively of the following sums of money col-
lected at each of said several institutions in carrying
out the functions of an educational institution, such as
funds collected from student fees of all kinds: charges
for use of rooms and dormitories, receipts from meals,
cafes and cafeterias, fees on deposit refundable to stu-
dents under certain conditions; receipts from school
athletic activities; income from student publications
or other student activities; receipts from sale of pub-
lication products and miscellaneous supplies and
equipment; students’ voluntary deposit of money with
said school for safekeeping; all other fees and local
institutional income of a strictly local nature arising
out of and by virtue of the educational activities or
Hon. S. B. Whittenburg, Page 2 Opinion No. V-54
research or demonstration carried out by each and
all of said several schools.
..
. . .
“Sec. 8a. No part of any of these funds shall
ever be used to increase any salary beyond the sum
fixed by the Legislature in the appropriations bill,
and this law shall be subordinate and subservient to
the biennial appropriation bill for the support of the
several iaot@@ions herein mentioned;” (Underscor-
WI -4
Under Article 2624, as amended by Acts 1945, 49tb Leg-
islature, Ch. 156 and 171, pages 203 and 208, the name “College of
Industrial Arts” was changed to “‘Texas State College for Women.*
Acts 1945, 49th Legislaturl), Gh. 377, Appropriations --
Educational Institutions, General Provisions, Subsection (3) at page
804, the Act appropriating institutional receipts, reads in part as
followa:
”
. . . and all proceeds . , . irom f&es and any
land all other receipts 8h&ll &ecome and are hereby
appropriated as maiiit@aance or Contingent fund to
be expended under the direction and with the approv-
al of the governing board having jurisdiction. Said
governing boards are authorized to use out of the
proceeds of said receipts and funds, in accordance
with the provisions of this Act, such amounts as
they shall deem necessary for the support, main-
tenance, operation and improvement of said fnsti-
tution. Any balances remaining to the credit of any
of said institutional local funds at said institution or
in the State treasury at the end of any fiscal year
are hereby reappropriated for the above mentioned
purposes for the succeeding year,”
The expenditure of local funds collected by institutions
of higher learnin is controllad by the provisions of Article 2654d
and Subsection (3‘3 of the General Provisions of the Appropriation
Bill, Ch. 377, Acts 1945, 49th Legislature. Article 2654d, Section
1, providing that said governing boards may retain control of said
monies, and may use such amounts in carrying out the “function8
of an educational institution,’ also prohibits in Section 8a thereof,
their expenditure in any attempt to increase any salary beyond
the sum fixed by the Legislature, Furthermore, under the provi-
sions of the General Appropriation Bill, Ch. 377, the said govern-
ing boards are authorized to use said funds as they zhall deem
Hon. S. B. Whittenburg, Page 3 Opinion No. V-54
necessary only for the “support, maintenance, operation and im-
provement of said institutions,” Thus, such control is made sub-
servient to the will of the Legislature as expressed in its biennial
appropriation bill, and the expenditure of local funds may only be
made for the benefit of the respective institutions.
“Research” being the method commonly employed by
modern universities, institutions of higher learning, and scientific
foundations to increase the sum of human knowledge, we believe
that research activity in State educational institutions of higher
learning may be considered as one of the proper “functions of an
educational institution. and within the contemplation of the phrase
as used in Article 2654d, Section 1. Further, that an expenditure
from the local funds of said institution of higher learning for re-
search purposes is authorized under Chapter 377, Acts 1945, pro-
vided the expenditure is made for the benefit of the institution, and
is deemed necessary by the respective governing board for the
“operation and improvement” of said institution. However, the
said local funds may not be used to supplement or increase any
salary beyond the sum fixed by the Legislature in the Approprio-
tion Bill.
In answer to your question, it is our opinion that under
present existing law, the Board of Regents of Texas State College
for Women has the authority to authorize expenditure of its local
institutional funds for research purposes beneficial to the institu-
tion, the governing board deeming same necessary for the opora-
tion and improvement of the college, and provided the expenditure
will not be used to increase any salary beyond a sum fixed by the
Legislature.
SUMMARY
The Board of Regents of Texas State College for
Women has authority to expend it:s local instirutrorzal
funds, as defined in Article 2654d, Section 1, V.A~.C:S.;,
for research purposes beneficial to the Ckllege, sub-
ject to the prohibition set out in Section Ra, Article
2654d, Acts 1933, 43rd Legislature, Ch. 221.
Yours very truly,
APPROVED ATTORNEYGENERALOF TEXAS
Chester E. Ollison
OF TEXAS
APPROVED - OPINION COMMITTEE
CEO:djm: sl BY * -BWB - CHAIRMAN