OFFICE OF THE AlTORNEY GENERAL OF TEXAS
AUSTIN
.
iIG23Xi)iQ JO!2 C. Xzzbur~er, Pn~o 2
*%nce t3c.Co!~titutio2 a& the S~u~lore=lo
CoILIt.
msoifiaaily bold thut 3ahool districtdhavo ~0
z&i-d OL‘ authoritjr to.enter i;lto ouch contraots,
ruch contracts. cm alearly ultra viras.
R. . l .
n
Your l&tar continues by citing 10 Tax. Jur. pp.
135 to 1.87 an& by slotiug your c~xCtz3fon that a Sire in-
~.~y~:;CC pcllcy iasus8 by a inutwl ooqmny on property be-
-lo= -.*-i to c 3ohcol district
U,+-g could not be cr.fozced by tho
~:~.~,~~c$ actor 1% &6 suflered 3 fire 1033 on tiuoh property.
a ~cwX.~f, of tko sciiool distziotts crocit. ?ho Opinion
r~-dc~&zcu thc.t the llabillty of t&e nolic?rLiolear la ttot _
Cara w.ti ihit8d t0 thG ?re ti*ua sp3aii%xl La the policy.
03 the ccatrury auoh doci3133. ic bzsed equsrely
or& t:o ~rort?C that tho.polioyholk - ian a mutual inr?umnce
ccri1;_3az;T
besoms in efToct a stookholC!er ar~d the oonstitu-
:io;?;l provision quoted by you prohibits a retool blstrict
Snx beomin~ such a stoo'kholifsr. It follo:~3 that the oere
Scot that p,-etikim nero paid by third parties would not aS-
rect ths cc~ool.~istrict~s r&-&t or lack of right to beoom
a px-
-*+cyhol&or in a~nutual insurance ompany. 38 therefore
agree that the coatYaot of iwmxnoe is illegal evea though .
et.-
wa~ pYZiW9 is not paid by thG OChOoi GiStYfOt.
As ve un&xstunU your,lettor no. policy h& as yi3t
$xz2 ItcUOdby the mtual Cori~ to tha SOhOOl aif3w0t and
thmofore tiio quo&loo.-& to whether or not there is any
3r5rciplo 'or mthozI by wh&h the distrfot Could .OOilGCt~ fO*
rt;, loss a3xr.a.Sire oooua*reU in purely hypothotLoal and
~$8 Co zot bvlieve this,depE+.Uent should czp,ress an opinion
thorooix.
%'G hopa.thGt thiG'&siOn viii1 be htip,fUi t0 pOU
IX ",~a dc~omimtion of your problen.
DonaldGay
.Assistant
.