WILL WILSON
AT-rGRNEYGENERAI.
March 22, 1961
Hon. M. T. Harrlngton, Opinion No. WW-1022
Chancellor
Texas Agricultural and Re: Whether the Board of
Mechanical College System Mrectors of the Texas
College Station, Texas A & M College System
Is authorized to invest
the Special Mineral In-
vestment l%nd In (1)
common or other stocks
of private corporations
and (2) investment cer-
tificates or shares of
building and loan asso-
Dear Mr. Harrlngton: clations.
You have asked the opinion of this office as to
whether, pursuant to the provisions of Article 2613a-3,
Vernon's Civil Statutes, the Board of Mrectors of the
Texas A & M College System Is authorized to invest the
Special Mineral Investment Lund created by said article
In (1) common or other stocks of private corporations and
(2) investment certificates or shares of building and loan
assoclatlons.
Section l(b) of Article 2613a-3, after creating
the "Texas Agricultural and Mech$nlcal College STatem
Special Mineral Investment Fund, provides that In the
judgment of the said Board of Directors, said Special
Mineral Investment Fund may be invested 80 as to produce
an income..." The authority thus granted to the Board of
Directors is very broad and would be restricted only by
statutory or constitutional limitations.
Section 52 of Article III of the Constitution of
Texas provides that "The Legislature shall have no power to
,authorlzeany county, city, town or other political corpora-
tion or subdivision of the State to lend Its credit or to
grant public money or thing of value In aid of, or to any
Individual, association or corporation whatsoever, or to
become a stockholder In such corporation, association, or
company;. ..I1 (Bnphasls added)
It is well established law that public state schools,
Hon. M. T. Harrington, page 2 ( WW-1022)
colleges and universities are divisions or departments of the
state government. Mummev. Marrs, 120 Tex.,383, 40 S.W.2d 31,
(1931).
In Heaton v. Bristol, 317 S.W.26 86 (Civ.App. 1958,
error ref. ), the court in effect held that the Board of
Directors of A & M College was a state administrative
agency and that the legislature had entrusted to the Board
the government of the college, with power to make by-laws,
rules, and regulations for the governing of the college.
It follows that A & M College is a state agency
and applying the rule of “Ejusdem generis,” it must be
reasoned that a state agency such as A 6%M College does
not come under the Constitutional prohibition set out above,
for A & M College is not of the same class or kind as a
“county, city, town or other political cor.poration or sub-
division .”
We have presumed from your request that the lands
on which these oil and gas leases were given are not part
of the Permanent University Fund lands. In the event any
of t’ne lands are a part of the University lands, then the
Board of Regents of the University of Texas has exclusive
authority to invest ,proceeds from the oil and gas lease
sales, However, if the lands in question are not a part
of the University lands, then it is the opinion of this
office that by virtue of Article 2613a-3, Section 1, Vernon’s
Civil Statutes, the Board of Directors of A & M College has
the authority to invest the monies in the Special Mineral
Investment Fund in common or other stocks of private corpora-
tions and in investment certificates or shares of building
and loan associations.
There is attached to this oDinion a COD!? of ooinion
No. m-263 which sets out the procedure you sho?td follow
in investing the monies of the Special Mineral Fund.
SUMMARY
Provided that the lands in question are not
a part of the University lands, then the
Board of Directors of A & M College has the
authority to invest the monies in the Special
Mineral Investment Fund in corporate stocks
or in building and loan associations.
. .
Hon. M. T, Harrlngton, page 3 (WW-1022)
Very truly yours,
WILL WILSON
Attorney General of Texas
LS:jh
APPROVED:
OPINION COMMITTEE
W. V. Geppert, Chairman
J; C. Davis
W. Ray Scruggs
Larry Hargrove
Jack Goodman
REVIEWEDFOR THE ATTORNEYGENERAL
By: Morgan Nesbitt