Untitled Texas Attorney General Opinion

I . oarrpc.wIlln OFFICE OF THE AmORNEY AUSTIN GENERAL OF TEXAS A- 81”RU Y HonorabLe Albert J. Eutron County Attomoy Trinity County Orotaton, Tata8 rpemdsnt sohool havl.ng artfos more than to (3ez-m aa Of the board of u of aaid distrfot. opinion on th0 ram Board or Trusteea wiool Dfatriot h0 B on 3eptuab.r bank the dr- the board with re pase intrrest by the &~apository, Are suoh ees eligible to aarve on the It not, o&n they be raBioveh w u have also edvi6ea UBthatr *The lest saholastio oemaua of the Trtiity IndepamIsnt Sohool Dlatriot totalsd one thousaM three hundred four (X,904)." 253 Eonorablo Albert J. Eutron, Fa$, 8 having more than one hundrod nnd fifty (DO) rohola8tio8 is selected by the board Of trU8toes og,suoh distrfot. such depository, or treasurer iau8t give bon& EQplWO$ by ths board of trustees. Tho 0091ponlaw has alwayrooognitod the Pangor to the pubLl0 welfare arlring ~&an a publio 0ff10ial tit- lrq in hi8 offlolal oapaoitp, m8kor a oontraot in w&h ha ~;$tsrertsd on aol¶traotr, mo. lndivitlually. 6 Wi.ll.iStoa . The Texas oourte applied thi8 rule at an early aato Md dOOiaT@d 8UOh OOIItIXOt8t0 bs Wld. A8 8tated b tico Llproomb, in Flanlklnw. Yokos (l&36), 16 TO%. p.18zt “A oontraot 'whidh wouldIgin him (the publio 0rri00r) an ill$oSwt in an 0rrfOig sot to be dona by him would bo ,o,ugny to law and aouna Aorelltyc Thi8 ooam0n law rub a8 It arrootr oorbin oirfoarm and certain typos 0r oontraot8 ha8 boon oneotod into a pond 8tatuta; miolo $73, Penal Godo of Texas, wi~Uh readmt *If any orrioor or any oouuty, or oi My of8y or town shall bmoAa In any man- aer pomniarily lntonsted in any cumtraotr made by suoh oounty, dlty or torn, through its!egonte, or othsrwi8e ror the oonotru+ tion or ropakor any b&r, rosa,, rtmet, alley or house, or an$ otbr work Tudor- takon by euoh county, oitp or town, or W bsooma lntoreetodin any bid or~proporPl for such work or in the puroh80 ox rale of any- thing A&O for or on aooount or ouch oountiy, oity or town, or who shall oontraat ror Or reooltvsany money or propor8y, or tho npn- Mntative or either, or any ozoololasnt or advantags whatsoever in-Oonsldoratlon of suoh bid, proposal, ootitraot,purchase or ~10, ho shall be fined not loos than arty nor more than flvo hundred dollar8.w This statute has been oonnoientiou8ly oniorood by the Oourtar IYeyeraP. walker S76 8. W. 006t alty or EdIn- burg f. Ellle, 69 S. \v* (a) 40. In the la8tor 6080, JuUm 254 Be+srablo Albert J..Hutuon, Pago I sharp, opeaklng for'the Gommlealon of Appeals, doolarod: The rule prohlbltlng ublta oSSlOore from being intereBt#d in QUt ti0 0Ont~OtB should be sorupulouely 8nfoFOed.m we believe, however, that the situation outllnad In your letter does not eon18within tho purvlow OS Art&b 373, BUpFCi. It 18 tXU0 that tlXl8tOi38 Of #Oh001 di8triOtr have been held to be oounty ofl’leetrs wlthln tho mu&g of civil statutes, Sohorz v. Tolfor, 74 S. iR. (2d) 329; Hendricks v. &t&e, 49 S. W. 705; FOwlOX 1. '2hOBW8 275, S. W. 253; Walbr v. K’alkar, f34li 8. WI 624. But tha T0xar Gouti of Criainal Appeals has nSuaeQ to adopt 110llfrral a coaatruotlon in oonetr a penal ltatuto. Sa W t4 Stato, 80 Tex. trim. , 188 9. Vi,1.002that oouxt held that a treasurer or M indopsrrdont88hsoi &iBtXiOt was not lncludod within tho $o%!m"auy oounty troamror* a8 rOWid i!ttiiOi4t m% Or B&~ROti8Ob,C~iEi~ s~tUtO8 0r mu. See our Oplnlon IOU.&Ui6@, oo@y,ar uhioh 18 on- 01080& horowlth. ft la lilcewlseto b& notlood that Artioai SW dOff8 no% rsior to all types of oontraots in whit& the pub 110 oSSloor may bo inter08t8d,,bUt is limited to “any 0001 traodr * l + Sor the oontiruo*lcin or repair Or,? pge, rod street, alloy or house, ot say other work * any bid or propoqal Sor suoh work-or In tho aal0 of anything * * *." A oontraat dth n dO&US81tW3' is flOtmob a OOIltraOta8 doBOr1bob iCthi8 Btat- ute. Apply& the rule that penal mttotutss mmt bs 8triot- 1~ 00nstm8u, WC) are of the apiaon that mioi0 87s ,0r th0 Ptm& ~odo is not appllo+blo to the situation horo under oon8ldoratlon. Tho convorao oS the queetion asked by you was oon- siderod by this department in eOnSorenQ oplnlon 80. 2785, d&o& Beptembor 16 1929, appoarlng at pago 127 OS "PhoAttor- ney Ceneral'o gublhahed report for l928-1980. iY13 quot. thlr oplnloxlin., fill! Vionorablo S.L.N. Xfirra hate f&ipWiI.itenbat of Publlo ~BtTUOt~On, Auutin, TaxaS. qear Str8 This will aokdaw~odgo reoslpt of your letter of Septambw 10th. addroasad to the Attol'ney Geneml. By thi.8 mvor, YOU auk the opinion OS the dopartmnt a8 to whether a EionorableAlbert J. Hutron, Page 4 stookholdsr or direotor of a oorporetlon sellring, us degository or treasurer of an Independent eahool alstrloC would be eli- glble Tar appolntmauh and qualification a6 trustee or said sohool district. Tie a:.e of the opinion that the two positions present euoh a aoniliot of lnteroste PIG Lo prevent the holding,or the two relation- ships at one end t&e sama tims. The trustees of M independent eahool dlatriot have aa part of tholr autp the t43ak: of seeing thdi the treasurer or depository properly managea the funa ona moneys or the school district. It ie aloo inoumbont upon the truateee to sse that thd mohool tunas are properly protooted by bonda and that the solvienoyof the bonds ana also the 6olvsnoy or the lnstftution - should be wat,ohobattnr to the end that the nonage eiay always be properly protooted. Innumrrablr lnetanoee oould be recounted when the peouniary intersala of a stook- holder in a oorporatlou would away the trua- tea to an act or ravorltlam, at least that w unbiased and non-lntersstea trustee would reeolve against mob bspository or treasureri without attempting to enunsrats these various obJaotione we oonaludr that upon the grounda of public policy the tra positions are Imom- pabible and that, thareiors, we met answer your qieetlon by saying that a atookholder or offitmr of a oorporrrtionacting as a depository fox sn Independent sohool.dlstrlat would not be eligible for apzoiatnent or electicn Gs trustee of said sohcol district. 311 PIOr opinions of this department to the cOntrP,rY are expressly overrulei?. Yours very truly %. Dandy LawmWWs, A$aictant I?ttOrn6y f%mral." In oonoluslon, -*(I bag t0 fiaViS6 YOU that in OUT opinion (1') ths oontraot made by the Board of Trustee8 Or the Trinity Indspendent,School Dfstriot deaisnatlng as d*- pository the bank, three or whose directors are trdstess$ ie Told) (8) the trustees are not sub&at to OriPPLns;l. Honorable J. Hutiwn, Page 5 prtmeoutlon under Artiole 573 or the Penal Code8 (3) upon neoesaary findings of raot by a oourt or jury, the trustees may be removed from office by the prooodurs provided by Ar- tlola 5, seotlon 24 of ths Constitution or Texas, and Title 100, Revised Civil Statutes, 1925. Youra very truly ATTORNEY G’EN!UWLOF TWS \I’<er R. Koch Aersistant WRKIRS