WILL WILSON

AT-rGRNEYGENERAI. 

### March 22, 1961



### Hon. M. T. Harrlngton, Opinion No. WW-1022 Chancellor TexasAgriculturaland Re: Whether the Board of Mechanical College System Mrectors of the Texas College Station, Texas A & M College System Is authorized to invest the SpecialMineral Investment l%nd In (1) common or other stocks of private corporations and (2) investmentcertificatesor sharesof building and loan assoDearMr. Harrlngton: clations.

You have asked the opinion of this office as to whether, pursuant to theprovisions of Article 2613a-3, 

### Vernon's Civil Statutes, the Board of Mrectors of the TexasA & M College System Is authorized to invest the Special 

### Mineral InvestmentLund createdby said article In (1) common or other stocks of private corporationsand (2) investmentcertificatesor shares of building and loan assoclatlons.

Section l(b) of Article 2613a-3, 

### after creating the "TexasAgriculturaland Mech$nlcal College STatem SpecialMineral Investment Fund, provides that In the judgment of the said Board of Directors, said Special Mineral InvestmentFundmay be invested 80 as to produce an income..." The authority thus granted to the Board of Directors is very broad and would be restrictedonly by statutoryor constitutional limitations.

Section 52 of Article III of the Constitutionof Texasprovides that "The Legislature shallhave no power to ,authorlzeany county, city, town or other political corporation or subdivisionof the State to lend Its credit or to grant publicmoney or thing of value In aid of, 

### or to any Individual,association or corporationwhatsoever, or to become a stockholderIn such corporation,association,or company;...I1 (Bnphaslsadded)

It is well established law thatpublic 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 &MCollege 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 &MCollege is a state agency and applying the rule of “Ejusdem generis,” it must be reasoned that a state agency such as A 6% MCollege does not come under the Constitutional prohibition set out above, for A &MCollege is not of the same class or kind as a
“county, city, town or other political cor.poration or subdivision

.”

Wehave 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 &MCollege 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 &MCollege 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, WILLWILSON Attorney General of Texas

LS:jh APPROVED: OPINIONCOMMITTEE W. V. Geppert, Chairman J; C. Davis W. Ray Scruggs Larry Hargrove Jack Goodman REVIEWED

FORTHEATTORNEY GENERAL By: Morgan Nesbitt