The Attorney General of Texas 

September 13, 1982 

MARK WHITE 

Attorney General 

Supreme Court Building 

P. 0. BOX 12546 

Austin, TX. 76711. 2546 

5121475-2501 

Telex 9101674-1367 

Telecopier 51214750266 

1607 Main St., Suite 1400 

Dallas. TX. 75201-4709 

2141742.6944 

4824 Alberta Ave., Suite 160 

El Paso, TX. 799052793 

91515333464 

1220 Dallas Ave., Suite 202 

Houston, TX. 770026966 

7 13/650-0666 

606 Broadway, Suite 312 

Lubbock, TX. 79401-3479 

6061747-5236 

4309 N. Tenth, Suite B 

McAHen, TX. 76501-1665 

5121662.4547 

200 Main Plaza, Suite 400 

San Antonio. TX. 76205-2797 

5121225.4191 

An Equal OppOrtunityI 

Affirmative Action Emplover 

Mr. Laura Cavazos 

President 

Texas Tech University 

Health Sciences Center 

Texas Tech University 

Lubbock. Texas 79430 

Opinion No. MU-514 

Re: Authority of Texas Tech 

University Health Sciences 

Center to build a structure on 

property deeded to it by the 

city of Odessa and Ector 

County subject to an easement, 

exceptions, reservations and 

right of reversion 

Dear Mr. Cavazos: 

The following 

from this office. 

is a response to your request for a legal opinion 

In your request you indicated that the city of 

_. . Odessa and Ector County conveyed approximately 6.2 acres ot land 

located in the city of Odessa to Texas Tech University Health Sciences 

Center (hereinafter TTUHSC) for the purpose of constructing and 

maintaining medical school facilities. The facilities would provide 

teaching, research, administrative and other medical and health care 

related activities for the community. 

The land was conveyed to TTUHSC by a general warranty deed 

subject to the following easement, exceptions, reservations, 

covenants, and rights of reversion: 

1. Grantor shall retain an easement to use the 

property described herein for parking and like 

uses until the time of construction of the medical 

school facilities which time-of construction shall 

be evidenced by written notice furnished to 

Grantor by Grantee stating that it has approval of 

all of the necessary construction funds and is 

ready to commence construction. 

2. Grantee shall furnish Grantor with written 

notice of the approval of the funds necessary for 

construction of the medical school facilities. In 

the event that such funding is not approved and 

notice furnished as provided herein within fifteen 

(15) years of the date this deed is signed, then 

p. 1859 
Mr. Lam-o Cavazos - Page 2 (Mw-514) 

title to the lands described herein shall revert 

to the Grantor when Grantor furnishes to Grantee 

notice of such condition and files a copy of such 

notice of reversion in the deed records of the 

County Clerk of Ector County. 

3. Grantee shall furnish Grantor with written 

notice of the time to cotmnence construction of the 

medical school facilities. In the event that such 

construction does not commence within thirty-six 

(36) months of the date the total funds are 

approved, then title to the lands described herein 

shall revert to the Grantor when Grantor furnishes 

to Grantee notice of such condition and files a 

copy of such notice and reversion in the deed 

records of the County Clerk of Ector County. 

4. Subject to the above expressed conditions 

and rights of reversion, it is expressly agreed 

that this conveyance shall be absolute and 

continue in full force and effect so long as such 

lands are used for the purposes of construction 

and use for medical school purposes and 

facilities, or for teaching, research, 

administrative or other related medical and health 

care activities of Texas Tech University Health 

Sciences Center. However, should Grantee cease 

construction or use of such land for such 

aforesaid purposes or activities for a period of 

time of more than eighteen (18) successive months 

and after written notice by the Grantor to Grantee 

of Grantee's violation of the foregoing 

conditions, then title to the herein conveyed 

lands shall revert back to the Grantor herein when 

Grantor files a copy of such notice and reversion 

in the deed records of the County Clerk of Ector 

County. 

5. All notices to Grantee shall be deemed 

delivered by depositing such notices with the U.S. 

Mail addressed to the Chairman of the Board of 

Regents, Texas Tech University Health Sciences 

Center, Texas Tech University Campus, Lubbock, 

Texas. All notices to Grantor shall be deemed 

delivered by depositing such notice with the U.S. 

Mail addressed to the County Judge, Ector County 

Courthouse, Odessa, Texas. 

p. 1860 
Mr. Laura Cavasos - Page 3 (MW-514) 

You have asked this office whether TTUHSC may lawfully construct 

medical school facilities on the land subject to the foregoing 

easement, exceptions, reservations, covenants, and rights of 

reversion. It is our opinion that TTUHSC may lawfully construct such 

facilities on said land. 

TTUHSC has general authority to construct medical school 

facilities sunder the following two provisions: 

1. The board [Texas Tech University Board of 

Regents] shall make provision for adequate 

physical facilities for the Health Sciences 

Center, including library, auditorium, and animal 

facilities, for use by the Health Sciences Center 

in its teaching and research programs. 

Educ. Code P110.07. 

2. The board has the sole and excl"sive 

management and control of lands set aside and 

appropriated to or acquired by the institutions 

under its governance. The board may lease and 

otherwise manage, control, and use the lands in 

any manner and at prices and under terms and 

conditions the board deems best for the interest 

of the institutions.... 

Educ. Code §llO.ll. 

The foregoing authority is limited, of course, by the state 

constitutional prohibitions against gratuitously granting public money 

or things of value to others. Three prior opinions of this office 

discuss the constitutional limitations in cases somewhat similar to 

the one before US. The question in Attorney General Opinion H-257 

(1974) was whether the Parks and Wildlife Department could spend state 

funds, matched by federal funds, to construct facilities on land owned 

in whole or in part by the federal government without violating 

article III, section 51 of the Texas Constitution, which states: 

The Legislature shall have no power to make any 

grant or authorize the making of any grant of 

public moneys to any individual, association of 

individuals, municipal or other corporation5 

whatsoever.... 

Our opinion concluded that the proposed expenditure would not 

violate the foregoing constitutional prohibition against gratuitously 

granting public money because the expenditure had a valid public 

purpose and an adequate public benefit. 

p. 1861 
Mr. Laura Cavazos - Page 4 (MW-514) 

In Attorney General Opinion H-403 (1974) the question was whether 

a state agency could construct a building on land that it did not own 

but merely leased. When the lease terminated, the building would 

become the property of the landowner. We concluded that: 

[i]n our opinion if an expenditure for the 

erection, repair or maintenance of an improvement 

on leased property is for a proper public purpose 

and if the consideration or benefit to the public 

is adequate, the transaction is not rendered 

invalid by the possibility that the private party 

will realize an unexpected incidental benefit. 

(Emphasis in original). 

The third, Attorney General Opinion H-655 (1975), was written in 

response to a question regarding the authority of Texas A & M 

University System to construct a building on land that was subject to 

a possibility of reverter. We concluded that it was, based on the 

public purpose and public benefit test announced in the foregoing 

opinions. The opinion concluded by saying: 

Since the public purpose and benefit are evident 

in the instant case, and since there is less 

possibility of divestiture in this case than in 

those involved in our prior opinions, we believe 

the proposed expenditures would be clearly 

constitutional. 

With this background, we turn now to your question. We note 

first that only one of the five restrictions in the deed to TTUHSC 

raise the constitutional question discussed in the foregoing three 

prior opinions of this office. The first paragraph merely reserves an 

easement for parking until construction of the medical facilities 

begins. Paragraph 5 deals with notice. Paragraphs 2, 3, and 4 all 

contain reversionary clauses but only number 4 raises a constitutional 

question regarding the possible reversion of the medical facilities to 

be constructed by TTUHSC. Reversion under paragraphs 2 and 3 would 

occur, if at all, prior to the construction of-the medical facilities 

before any public funds were expended. 

Under paragraph 4 it is possible that the medical facilities to 

be built, by TTUBSC could revert to the Grantors. There are two 

conditions under which a reversion could take place. The first is if 

the construction of the medical facilities ceased for a period of time 

in excess of eighteen successive months. The second condition is if 

the lands ceased to be used for the location of medical school 

facilities, or the facilities ceased to be used for teaching, 

research, administration, or other related medical and health care 

activities by TTUHSC, and such condition continued for a period of 

time in excess of eighteen successive months. 

p. 1862 
. . 

Mr. Laura Cavazos - Page 5 (MW-514) 

Both of the foregoing conditions that would create the basis for 

a reversion are within the ability of TTUHSC to avoid. By seeing that 

the conditions do not occur, TTUHSC can retain title to the land and 

the medical facilities indefinitely, thereby forestalling any 

constitutional question regarding the gratuitous grant of public 

moneys. 

In any event, it is our opinion that TTUHSC has statutory 

authority to build a medical facility on the land deeded to it by the 

city of Odessa and Ector County and that expenditures for this purpose 

will be for a proper public purpose and will result in an adequate 

public benefit to TTUHSC. E Educ. Code §110.09. 

SUMMARY 

On the facts provided, Texas Tech University 

Health Sciences Center may construct medical 

facilities on land deeded to it by the city of 

Odessa and Ector County but subject to certain 

easements, exceptions, reservations, covenants, 

and rights of reversion without violating article 

III, section 51 of the Texas Constitution. 

MARK WHITE 

Attorney General of Texas 

JOHN W. FAINTER, JR. 

First Assistant Attorney General 

RICHARD E. GRAY III 

Executive Assistant Attorney General 

Prepared by Ralph Aldave 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Susan L. Garrison, Chairman 

Ralph Aldave 

Jon Bible 

Rick Gilpin 

Patricia Hinojosa 

Jim Moellinger 

p. 1863