Untitled Texas Attorney General Opinion ( 1975 )


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  • THE ATTORNEY GENERAL OF TEXAS Aus~nv. TExAsm37u December 23, 1975 TheSnorableJosephD. Hawkins c&G.nilnlNo. n-755 &missioner of Inswmce stateBoardof&Suratlce Re: WhetherStateagencies 1110San Jacinto may oIxltract with mutual e, Texas 78786 illmmxecarpaniesfornon-~ assessableimumncepolicies. l%e Ekmorsble Bqmxxl W. Vcwell CUUlliSSioner stateDepartment of Fublicwelfaze JohnH.RBaganEiuilding Austin,T&as 78701 Dear sirs: YOUhaverequestedoUrCpilliOIl~ whetheramutualinsurance caqxmymykeewudedamtrsctsforveriarsnm-smess&leinsmmce policies.calet3uchcontractwarldbeentereabythe Department of Public welfareforwi.icaiaswriceswhiletheotherwoulabe forgroup life, healthandaccicIenti.mmmceundertheTkxa!3R@Jyeesmifonnci?mp Insurance BenefitsAct. Ins.Code art. 3.50-2,Acts 1975,64thLeg., ch. 79, p. 208. lllelsttwmuldbeentereabythe~loyeesRetiranen Systea. Your questicnsare whethersuchcontractsmay he enteredwithoti violatingarticle3, sectionsSO-52of the TexasCmstitution. In AttorneyGmersl opinionH-365 (1974), we ruledthatTexasTech University couldcontractwithnutual insuranceccmpaniesfor grouplife insurance solongas thepolicyinvolvedwesm-assessable. Wedeter- minedthatarticle3,~52anditsprovis~thatapoLiticdl subdivis~aoulanot~astockholderina~~ration,as~ti~ or canpanywere inapplicable, for the Universityms an "azmof the state"ratherthana@iticalsukdivisicm. ?hus the Universitywas~ cokrolledby article3, sectim 50 and 51,whichprohibitthe "grant of publicmmeym and tile"lendingof credit."we deteminedthat the contractinvdvedwculanotviolatethesepmvisions,sinceitwas for a publicpurpose. p. 3194 clueEknwreble Jose&D. Hawkins- page 2 (H-755) ?heHonorableRqmmxlW.Vcwell wecanperoeiveno meaningful distinctionbe~yourquestions am3 that involvedin H-365. The Department of PublicWelfareand the Dnployees R&iremmtSystanare mt"plitical subdivisions." Solenv. waraofFi.rmen, -- PolicxwnandFireAlm --.-&p+- ators'Trustees, 308 -- s.w.2a904 &I. iipp.- San Antomo 1 57, writ ref'd).Article3, seztian52 is thus ina@icable. In addition, underour rulinginH-365 thereda he no violationof article3, sections50 and 51, for the amtractswoulabe forapublicpurpse. Accordingly, inouropinion tberespebive stateagenciesmyenter intomn-assessablecontracts withmutualinsuranoe anpanieswithoutviolating article3, sections 50, 51 or 52 of the TexasCmstitution. SUMMARY Stateagenciesmy enterintocmtracts fornon- assessableinsuxance policieswith mtual insurance anpnies withoutviolatingarticle3, sections50, 51 or 52. very WY yours, AttorneyGenexalofTexas p. 3195

Document Info

Docket Number: H-755

Judges: John Hill

Filed Date: 7/2/1975

Precedential Status: Precedential

Modified Date: 2/18/2017