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 Investment l%nd In (1) 

common or other stocks 

of private corporations 

and (2) investment certificates or shares of 

building and loan assoDear 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 

,authorlze any county, city, town or other political corporation 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. Mumme v. 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 subdivision .” 

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 corporations 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 

REVIEWED FOR THE ATTORNEY GENERAL 

By: Morgan Nesbitt