October 2, 1975
The Honorable Jack K. Williams President, Texas A&M University College Station, Texas 77843

Dear President Williams: Opinion No. H- 704 Re: Whether Texas A&M may sell its agricultural station in Crystal City and apply theproceeds to the development ofthe station in Uvalde. You have asked about the disposition to bemade ofproceeds from the sale of the Texas A&M University - Rio Grande Plains Research Demonstration Station near Crystal City ifthe Board of R:e~gefits.ofthe ~Texas,. A&M University System decides upon its abandonment and sale. Specifically, you ask:

1.’ May proceeds from the sale ofthe Crystal City Station beapplied toward thepurchase ofbreeding animals inthe establishment ofa cow herd’ for the Uvalde Center?


### 2. May proceeds from the sale ofthe Crystal City Station be used toward the cost ofalong term lease ofland that is suitable for range research? The establishment andmanagement ofagricultural experiment stations by the Texas A&M University System is governed by Title 3, subchapter C, ofthe Texas Education Code. Section 88.203. Education Code, provides:

(a) The board may: (1) establish experiment substations atplaces in this state it deems proper: (2) abandon or discontinue any substation which may become undesirable for experiment purposes, and if deemed necessary establish others inthei~rstead at places it deems advisable: and

p. 3045The Honorable Jack K. Williams, page 2 (H-704)

(3) sell any land or other state property used inthe operation ofan experiment station when abandoned and apply theproceeds ofthe sale to the purchase ofother land and property for the establishment ofexperiment stations. (b) The board shall exercise a general supervision over substations established under this subchapter. Such sales and their proceeds are further regulated by section 88.204, Education Code, which reads:

Ifproperty used in the operation ofa station is sold, thetitle to the property shall notpass from this state until a deed ofconveyance is made tothe purchaser, duly signed by the governor and attested by the secretary of state under his official seal. All funds received from the sale of station lands or property shall be deposited inthe state treasury and shall be paid outin accordance with the provisions ofthis subchapter. Specific authority to purchase livestock is given by section 88.209 and authority to lease land for experiment work is contained in section 88.206. Education Code. We have no difficulty in concluding that both questions should be answered in the affirmative , provided the proceeds from the sale have been appropriated by the Legislature. See Attorney General Opinion V-01 (1947) and Opinion dated May 23, 1925 atol. 273, p, 300, Letter Opinions oftheAttorney General of Texas. Both the General Appropriation Act for the 1974-75 biennium andthe one for the 1976-77 biennium provide:

All balances in the institutional funds of the several state institutions ofhigher education named inthis Article, atthe close ofthe [last] fiscal year . . . , including balances in their revolving funds at that time, and the income to such funds during the [next upcoming] fiscal years . . . are hereby reappropriated for the operation, maintenance andimprovement ofthe respective state institutions. Acts 1975, 64th Leg., ch. 743, art. IV, $17; Acts 1973, 63rd Leg., ch. 659, p. 2149. art. IV, $17.

p. 3046The Honorable Jack K. Williams, page 3 (H-704’

Inour opinion, sections 88.203 and 88.204 ofthe Texas Education Code dedicate to the Texas Agricultural Experiment Station - - for the establishment ofother experimental stations - - all proceeds from the sale of property used for anabandoned station, andthe fund thus created is an

‘institutional fund ofa state institution ofhigher learning” within the meaning ofthe above mentioned General Appropriations Act provision. Attorney General Opinion V-454 (1947). Itfollows therefore, thatthe proceeds of such sales have been specifically appropriated tothe Texas Agricultural Experimental Station for use inaccordance with the statutory purpose. Although the Appropriation Act language is broader than the Education Code description ofthe dedicated purpose, itwill be construed to authorize only those expenditures from the fundthat are allowed by the general statutes. Attorney General Opinion V-01 (1947). See also Acts 1975, 64th Leg., ch. 743, art. V, $22. We therefore answer your questions inthe affirmative. See also Attorney General Opinion O-6903 (1945). CA, Attorney General Opinions H-23 (1973). S-210 (1956), V-320 (1947). O-6017 (1944), O-5918 (1944). SUMMARY Proceeds from the sale ofproperty used for an agricultural experimental substation may beused for the purchase ofbreeding animals for another experimental station and tolease land suitable for range research.

Attorney General of Texas

KENDALL, First Assistant

C. ROBERT HEATH, Chairman Opinion Committee p. 3047