Untitled Texas Attorney General Opinion ( 1970 )

, * . . . ~ THE ATTORNES GENERAL OF TEiXAS AUSWIN. TExAn78711 January 20, 1970 Honorable Charles Murphy Opinion No. M-559 Director Texas Aeronautics Commission Re: Whether an airplane owned 204 W. 16th Street and operated by a State Austin, Texas agency may be covered by liability insurance pur- chased under the provisions of Article 6252-19, V.C.S., (Texas Tort Claims Act), or Article 6252-19a, V.C.S., and related questions. Dear Mr. Murphy: You have requested the opinion of this office on the follow- ing questions: "1. May liability insurance be procured,by the Texas Aeronautics Commission on an airplane under either the provisions of the Texas Tort Claims Act or H.B. 203 of the 61st Legislature? The airplane is owned and operated by the Texas Aeronautics Com- mission. “2 . May liability insurance covering premises' defects be procured by the Texas Aeronautics Com- mission under either the provisions of the Texas Tort Claims Act or Ii.B. 203 of the 61st Legislature?" In answering your first question, we :would note that the Texas Tort Claims Act, Article 6252-19, Vernon's Civil Statutes, gener- ally authorizes a governmental unit to purchase liability insurance to cover its operations. However, in Article V, Section 57, the General Appropriation Bill forbids the expenditure of appropriated funds for the purchase of liability insurance to cover tort claims -2668- ’ . . Honorable Charles Murphy, page 2 (M-559) which arise under the Tort Claims Act. If funds are available for the purchase of such insurance, it can only be through the authority of H.B. 203, codified as Article 6252-19a. Vernon's Civil Statutes, which is quoted as follows: "Section 1. The state departments who now own and operate motor vehicles shall have the power and authority to insure the officers and employees from liability arising out of the use, operation, and maintenance of automobiles, trucks, tractors and other power equipment used or which may be used in the opera- tion of such department. Such insurance shall be pro- vided by the purchase of a policy or policies for that purpose from some liability insurance company or companies authorized to transact business in the State of Texas. All liability insurance so purchased shall be provided on a policy form or forms approved by the State Board of Insurance as to form and by the Attorney General as to liability. "Section 2. In case said department elects not to so insure its employees against liability as above mentioned: "An employee of the State of Texas, in addition . to any compensation provided in the General Appropria- tions Act, shall receive as compensation any sum of money expended by such employee for automobile liability insurance required of such employee by the department, agency, commission, or other branch of the state government for which such employee is employed." Although the term “motor vehicles" is not precisely defined in the above quoted statute, it is linked with specific equipment of the road-use type. Further, in Section 2 we note that the alternative T.&hod of insuring makes specific reference to "automobile lia- bility insurance". Moreover, since aircraft insurance policies are contracts that differ completely from standard automobile insurance contracts, it is our view that the above quoted statute cannot be interpreted so as to include State-owned and operated aircraft within its authorization. -2669- . . , . Honorable Charles Murphy, page 3 (M-559) In specific answer to your question number one, you are advised that it is the opinion of this office that appropriated funds may not be used to purchase liability insurance 6n an aircraft under the Texas Tort Claims Act, Article,6252-19; An aircraft is not a "motor vehicle" within the terms of Article 6252-19a, and personal liability insurance may not be purchased for employees operating such aircraft. We have.been advised that the Texas Aeronautics Commission owns.and oper+t+C’only,one .air- craft, and no other means of transportation of.any kind:~ Under ouch circumstances the Commission would have no authority tp purchase personal liability .insurancefor any smpioyao,undem P. B. 203 (Article 6252-19a). With regard to your mecond question, liability ins-e covering premises defects may be purchaeed under the authority of the Texas Tort Claims Act, providng that no presently appm- priatsd fundm are used. Article 62X2-19a, qw+od lupra, permita only the purchase of insurance to cover the personal liability of an employee incurred by his operation of a State-owned . vehicle in the course and scope of his employment. Such muthori- mation does not extend to the purchame of.liability,inswwce covering premises defects. S UMM~AR'Y Presently appropriated funde may not be used to purchase liability insurance to cover tort claims which arise under Article 6252-19, V.C.E., the Texas Tort Claims Act. An aircraft is not a "motor vehicle* within the terms of Article 625249a, V.C.S., and per- sonal liability insurance may not be purchased for employees operating such aircraft. A governmental agency may purchase liability insurance covering premises defects under the , -2676- . ..~, . .* .,. Honorable Charles Murphy, page 4 (M-559) Texas Tort Claims Act, providing that no appro- priated funds are used. Article 6252-19a does not permit the purchase of premises defect insurance. truly yours, Prepared by Malcolm L. Quick Assistant Attorney General APPROVED: OPINION COMMITTEE Kerns Taylor, Chairman Alfred Walker, Co-Chairman Houghton Brownlee Roger Tyler Louis Neumann Wardlow Lane KRADE F. GRIFFIN Staff Legal Assistant NOLA WRITE First Assistant -2671-