Untitled Texas Attorney General Opinion

OFtiCE OF THE ATTORNEV GENERAL OF TEXAS i AUSTIN I GROVER SELLERS AHORNCY GENERAL BQnQrrblQ Claude Iabell SQcrota Qf St&Q Au8u.n 3 , Texan DQar 8lr1 Opinion IO. 0-6582 h we have no01 SQr an oplnlon of thir dQpartuent, QUO lbQvQ vould thlr Q~OQ be ruther- itUtiOn81 a8WMboiIta parred dtar- hgirhtllro tQ thQQQ IiQVqxQQr. fQr ovned and OpQmtQd b7 a person vh~ 8 SQ8dQZk Of the &~i~htUlWt &hQ, mu14 a n~vapaper by preMbltQd from publirhlng Quoh QaQndwnt8 bf roamn Qf the fact that a WmbQr Qf thQ VQl’Q hgiebtul'o at vhioh thQaQ QBlQlId.EQlLt8 8Ub8ittQd a&at ovn stock In ruoh navrpaper? . . .* 811 :IonorsblQOlaudm Xmbmll, -8 p! 8QOtiOn 1 Of hl'tiOlQ I? Q? -Q %iSS hXiStitutiOn @'O- ,idQQthat mumh "p~~pOm0d SUnSndmontSShall b. dd7 gublimhmd OAOQ : veok for ?OUr VQQkS, CCQIB?SnO~ at 1QSSt thl'OQ~Od-bS bQ?Ol'QSa lootion, thQ ttiQ Of vhloh Shll bQ SpQOi?i~d by th0 bgtmbtuzxa, a one vmmkl7 nsvmpapar of e&oh county, in vhloh lumh a novspaper ay bQ publlahQa." &rPStO?OFQ the OOSt Of thlQ t of publioetlea baS b~cw rid ?ra~approprlaticm8ad~b rortlmt8peol?lo :mOSQ . UQ assuua thQ Forty-n th LQglmlmturo vi11 make a mini- appmprlatlan to pa7 the oortm of publishiag thQ amndmntm -IS- rop088d by thar at this SQ88i0& b1922Op~lon~o.24llv~~ lpprovtdandnlQa8Qe ?rm iis OffbQ br thQ &to &umX'ablQ v. 1. UQlirrg, vho thin vas ;tOl%iQJO~nerel of %%am. Us wok from 8alA opinionam ?ollwmt (I . A person vhc vam a mmber of thy leglmla- tUl'QI&IQ t%M Of thQ QMObOlbt Of IIhQtis kaovn &s thQ 8tQtQ iitf&Wh7 CclPIPiBSiOII IAN Otid ILOt 3AVf'Ul17 OskQ Ii ocmtraot vltha oountg .?or ro(cd 06nmtruatioa vo* involv- o~~~onIbVa~Qd to 8UCb OOUllt~ b7 the 8tatQ Hi&lm7' UQ thbk ala0 th a tl porsson rrho vw a PrUSbSlOf iho 8tatQ &X&StQ at thQ tbQ Of thQ QMOtStQllt 0r thy l.avlppropri4ting ~glstr8timr. SQWJ to tbo 8tdQ Rlglnm7 Caml88loa oould not lavrult oentraot vlth a count7 vh~r~ fumla apprQprlatQd br rudh lOta n to be er g lldeb An. a p p r o p r la ltlea ut'ir, Q? oour~~, a lmr. 8QQ 8Wticn 6, hrtloie 8, 8tXtQ COuiatituti6n.Ceunty’ aontract8 of the kln&hWe unbr OotulilQratlan oould IlOt bQ tiQ i? thQ StStUtQ ONtiag thQ 8tStO Highvst Ccmalm8lm and providing for lutamobUo reglmtratlua ?QQShaa not been Q.OtQd. Ilm1tb.roould muoh ooatxaqtm by ma0 tit488 tb xagi8trtun had qtp0prtat0d thy .” 8tstQ &.&iVN7 -8. VQ thhk it OlQaP, thmnfom, that a oontraot of thlr kind 9.0to bQ OeSridQrQd aa bar- lngbmma *authorlaedd' by thm8tatQHIghway Oomdmmlar statutes mM the approprlatien sot abomnf~rm4 to.' Th~r~foro, lt ii 0awOplnloatbata oontnotbetmra 3 Stata of%xam antlamembmr,ofth4Lmglmlmturr fortbopub- :hlng~mwhwmbmro?tb~&g :ionml amen&entmla pr&lbltoU thQ hMtitUti@ll Of %‘QX,ltnS, ?Or ) LQgiSkAtOF+UbiiShQ~ ?Or SQr*i(HS Ad bm b7 authorlt of an approprla ,vhiohmuch LQ&%s& toepublisher Tiilat um. 812 HonorrblQ ohudo Imboll, pm@ f F'urthQrmorQ It Is cur opinion mmld 8Qotlan 18 that Of &tiolQ 3 of thQ Cmnmtituthn Q? hxam llmQ prQhlbltm a ooni tract bQtvQQathe State of Turns mad a oorpQrrtlon in vhlch a rmSplkP Q? thQ ~s&im~tUz’Q holdm mteok, iOr thm pul’pOmQ8 hQrQla prepomQd, bQa6usm Q? thQ prinolplQm of lmv uprQmmQd In thQ Sol- 1oVlng aUthQrltlQ8, In VolwnQ 10, Tax. Jur.,w. 781-782 lpp~rm the frllw- iru: 'Certain17 thQn is amply authorit ?Qr t& vlcnr th a th t oltQokhQldQr8 have a bmnmflolal 1ntmFest la thQ OorporatQ prQpQrtf6 Am bm bQQn vQl1 mmld, thoQIZItQXWSt Q? a StoolchQldQr in thm oopltal ?und thQ o&lrotmrimtlom Q?: (a) lnd.lmotiQn; subordirutlon to tbmt Q? the omdltmrm~ and SQQUSnt OOnthgQnOJ Q? ~1lSatiSn b thm ?Om of prmfitm or return Q? (Qr xMmbumQarsnt r0r) him CQntributlmn.~" (tbdQrSOOrbg lddQd ?Qr Q@ISSh) In tha ease of iiobbm,Wall k CQ. V. WOZWI, Dlmtrlot dourt of Appeals, Third Dirtriot, Callfornlm, 293 F'mo.145, the pU.rohmmQ Q? l uppllQm for a olt7 troa a oorpontlQn, thQ manager -of vhloh van almQ Clt7 C~~~ollman, vat ill~gal.b~oa~~~ tbQ Counoilmanvam “lndlrmotlr lntQnmto4 in virv of a 8tatutQ prohibiting an Q?f;C.cer Qf thQ Oit7 frQE4being intQ!'QEtQd, dlrQctl7 or lndlreotl~, b ~n7 Omntraot vlth l uoh,olty. VQ qwto ire5 aaid mane am ?*12mvmr "Uhoa It appearm that an offiow Is mubmtan- thll7 bonQ?ltod, ?lnmnolall7 or QthmrvlmQ, by him pmrtlolpatlon la a oontmot vlth the runiol- faatt vhloh ho rQprQmQntm, thy t~8aOtlOYJ is lxa bl7 doalar~d tQ by IllQgal. Under much Oi~UWtFUtOQS, ia It8 QffQrt tQ uphrld thQ trUU- lo tlen, a awrt vi11 nQt rmmQrt tQ ?iaQ dirtsno-. .~~ tiQn8 in QrdQr t0 dQtQIminQ'jUSt VhSt ?SOtS vi11 aQnmtltutQ an filndlnot lnt.QrQmt* thQ part of in the Qffloor.g (&dQrmooring addQd ?Qr Q-q&maim) In VIQV of tbQ ?~r~&Qin& VQ dr not ~Q~IQVQ thQ SQWQ: kry Q? 8tmtQ tQ bQ authorlmQd tQ SUbpllt?Or publlocrtlonCOMtl- tutiQna1 ~ondmmntm proposed at this lmmmlmn di thQ YaglmlaturQ to thomQ aovmpmpen~tbst arQ ovnad md QpQmtQd br Qr, if a oorgwatima, in vhlch steak ir hQld by, a pomm V~Q Is a mK&or of thtm lQmml~ Q? thm kglmirturm. Um hmrevlth onoloaQ a omp7 Q? maid Opinion Ho. 2411.