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 the proceeds 

to the development of the 

station in Uvalde. 

You have asked about the disposition to be made of proceeds from the 

sale of the Texas A&M University - Rio Grande Plains Research Demonstration Station near Crystal City if the Board of R:e~gefits. of the ~Texas ,. 

A&M University System decides upon its abandonment and sale. Specifically, you ask: 

1.’ May proceeds from the sale of the Crystal City 

Station be applied toward the purchase of breeding 

animals in the establishment of a cow herd’ for the 

Uvalde Center? 

2. May proceeds from the sale of the Crystal City 

Station be used toward the cost of a long term lease 

of land that is suitable for range research? 

The establishment and management of agricultural experiment stations 

by the Texas A&M University System is governed by Title 3, subchapter C, 

of the Texas Education Code. Section 88.203. Education Code, provides: 

(a) The board may: 

(1) establish experiment substations at places 

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 in thei~r stead at 

places it deems advisable: and 

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

(3) sell any land or other state property used in the 

operation of an experiment station when abandoned and 

apply the proceeds of the sale to the purchase of other 

land and property for the establishment of experiment 

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: 

If property used in the operation of a station is sold, 

the title to the property shall not pass from this state 

until a deed of conveyance is made to the 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 

in the state treasury and shall be paid out in accordance 

with the provisions of this 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 of the Attorney General of Texas. 

Both the General Appropriation Act for the 1974-75 biennium and the 

one for the 1976-77 biennium provide: 

All balances in the institutional funds of the several 

state institutions of higher education named in this 

Article, at the close of the [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 and improvement of the respective 

state institutions. Acts 1975, 64th Leg., ch. 743, art. IV, 

$17; Acts 1973, 63rd Leg., ch. 659, p. 2149. art. IV, $17. 

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

In our opinion, sections 88.203 and 88.204 of the Texas Education Code 

dedicate to the Texas Agricultural Experiment Station - - for the establishment of other experimental stations - - all proceeds from the sale of 

property used for an abandoned station, and the fund thus created is an 

‘institutional fund of a state institution of higher learning” within the meaning 

of the above mentioned General Appropriations Act provision. Attorney 

General Opinion V-454 (1947). It follows therefore, that the proceeds of such 

sales have been specifically appropriated to the Texas Agricultural Experimental Station for use in accordance with the statutory purpose. Although 

the Appropriation Act language is broader than the Education Code description of the dedicated purpose, it will be construed to authorize only those 

expenditures from the fund that 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 in the 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 of property used for an 

agricultural experimental substation may be used for 

the purchase of breeding animals for another experimental station and to lease land suitable for range 

research. 

Attorney General of Texas 

KENDALL, First Assistant 

C. ROBERT HEATH, Chairman 

Opinion Committee 

p. 3047