Untitled Texas Attorney General Opinion ( 1971 )


Menu:
  •                   .        .
    April    7,   1971
    Hon. James L. Slider,      Chairman                                   Opinion   No.    M- 831
    State   Affairs  Committee
    House of Representatives                                          Re:       Validity      of House Bill
    State   Capitol                                                             442 of the 62nd Legisla-
    Austin,    Texas  78711                                                     ture,    R.S.    1971,   prohibiting
    members,      employees     and
    agents     of the State       Board
    of Insurance       from receiving
    any compensation         from an
    insurer     doing    business     in
    Texas within       six years
    after    leaving     his position
    Dear     Mr.   Slider:                                                      with the State.
    Your request   for an opinion    asks                          whether the provisions
    of House Bill   442 of the 62nd Legislature,                              Regular Session,    1971,
    are valid,    The Bill  amends Article   1.09-3                           of the Texas   Insurance
    Code to read as follows:
    "Article        1.09-3.
    "(a)    All members of the State         Board of In-
    surance,      Commissioner     of Insurance,     and all    em-
    ployees      and agents    of the State     Board of Insurance
    shall    be subject     to the code of ethics        and the
    standard      of conduct     imposed    by Chapter   100, Acts
    of the Fifty-fifth         Legislature,     Regular   Session,
    1957.
    "(b)     I n addition     to the code of ethics         and
    standard      of conduct      imposed     by Subsection     (a) of
    this    Article,      no person     subject    to Subsection       (a)
    may receive,        within    six years     after   leaving    his
    position      or job with the Board,           compensat;on     from
    any insurer        doing   business     in this   state.
    Section        19 of      Article        I of   the     Constitution      of    Texas
    reads:
    "Sec.   lg.    No citizen of this   State     shall   be
    deprived     of life,   liberty, property,    privileges       or
    immunities,      or in any manner disfranchised,         except
    -4025-
    Hon.   James      L.   Slider,     page    2      (M-831)
    by   the    due    course     of   the    law    of     the   land .‘I
    The liberty       of contract        which includes      the ccrrespcndir,:
    right    to accept      a contract      proposed,      is a constitut~ionai      right
    protected     by the orcvisions          of Section        lo of Article    1 of the
    Constitution      of Texas,       above    quoted.       In St. Louis     Southwestern
    RY. co.     v. Griffin,      1.06 Tex.     477,    
    171 S.W. 703
        (lgiq the Supreme
    Court stated:
    “The        citizen   has the liberty                of contract     as
    a natural         right   which is beyond               the power of the
    government          to take from him .                  .     (at p. 704).
    We are aware that the freedom              of contract      may’be    limited
    where there    are visible      reasons     of public     policy    for    the limitation
    and the right      to contract     while    protected     by Section       19 of Article
    I is not an absolute        right    and is subject        to reasonable       regulation
    in the interest       of public    welfare.       International       Brotherhood       v.
    Huval,    
    140 Tex. 21
    , 166 S.W .2d 10’1 (ir?rimri,i?ge                v. Home Life      &
    A-c.
    -      Ins.  Co.,    
    246 S.W.2d 666
      (Tex.Civ.App.       1931,    no   writ!-
    It is therefore   our             opinion   that   the prohibitions       contained
    in this     Bill  are violative    of            an individual’s     constitutional       right
    of contract      which is protected               by Section     19 of Article      I: of the
    Constitution      of Texas.
    You are accordingly     advised   that   the provisicns       -f
    House Bill    442 of the 62nd Legislature,       Regular    Session,    lr71,
    are unconstitutional,     being  in viclation      of Section     19 zi’ Artile
    i of the Constitution     of Texas,
    SUMMARY
    --~-
    House Biil,       442 of the 62nd Legislature,            R .S.
    1971 I   wherein      it  would   prohibit     all   members,    agents
    and employees        of the State       Board of Insurance        from
    receiving      compensation       from any insurer       witnir     six
    years    after    terminating       their   official    positio-      cw:th
    the State      violates     Section      19 of Article     I of the
    Constitution        of Texas.
    Very    truly     yours,
    CRAWFORD C. MARTIN
    Attorney General of              Texas
    First         Assistant
    -4026-
    Hon.   James   L.    Slider,      page   3    (M-831)
    Prepared    by John Reeves
    Assistant    Attorney General
    APPROVED:
    OPINION COMMITTEE
    Kerns Taylor,        Chairman
    W. E. Allen,        Co-Chairman
    Jay Floyd
    James Quick
    Wardlow Lane
    Ivan Williams
    MEADE F. GRIFFIN
    Staff Legal Assistant
    ALFRED WALKER
    Executive Assistant
    -4027-
    

Document Info

Docket Number: M-831

Judges: Crawford Martin

Filed Date: 7/2/1971

Precedential Status: Precedential

Modified Date: 2/18/2017