Untitled Texas Attorney General Opinion

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OFFldE OF THE AITORNEY GENERAL OF TEXAS
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AUSTIN

nxorablo Eugene Rrady
coiity Attorney .b
s:ult county .
msnville, Toxnn
Coar Sir:
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sohool funda, ia it progsr end legel for a
atookholder and dire&w In such bank to serve
GS a number of the sohool board?
“3. 5s a’tru&ce of the kmnvillo In-
dependent 3ahool Distriot subject to removal
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by the Ci+y Council if he is edlreator end
stookholdar in a bon% vfhiah is a depsitory
for tho sahool funds?
Vhe ebove questions raally, ia my nind, .
tire but warts ol’ cm Quwtlon, but I heve
0xprecsea it 88 above for olarity. It 89erii8
to QWthat thop’boil dam to the quostian(
Wan tho City Council of the City of
Greenvilla contract with Itself7 Clearly
the Bmrd of Wluaetion la tho oreature of
the Counoil. “Xhare is tho ‘bifferanoe in
the Couni contracting with itself or with
Ita ormture?
~-Our city we8 greated a speaial aharter
in lW7. For your infonation set-forth
belowyou vii11 find all. Drovisior~ of that
chnrtar, as amendoa, relating to lsahoolsl
.“‘l?rticlo 11, gee. 16, Schools--!?he
~t;rp;tGraenville an Xndopcndent Sahool
.--The city of W3eaville eh3.U oou-
stituta en iEaapmdcut school distriat
tubjact to tho general ach~ol law of iho
State, erca?,t wham in ccnflict.v;ith thie
net, ead .thc3city shall hme authority to
lovy and collect taxis and appropriate fuuds
for the su,port end mintor?ance of tho public
ao!;oole within its limite.

“’ (al !?rustr?os ,--?bc~ ApDolntcd, Term
of omco, 3tc .--Tha trustocs to CNmtitute
a echo01 board tn the city ehTl1 hwxftor
bo np>ointod by the Couccil, but tne trustees
Ww in offlca shall cmtinuo to s9~ve until
the es~imtlo~ of their ra&pcctivo terim,
cad nu v~~cmclea oaumd by doa’th, rosizna-
ticn, or:otkor cawo, shall. bo fillad by
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a~polntmnt in tha saw mnner for the IX-
0xFir0a t0n;l. '&e re,&%xlarterm OS mozbers
of the sohool board shall bo two yearn, and
the +gular agpointmnt of smcbora shall bo
made at the Slrst meting OS tho Council ih
Sky of ecoh~yoor, or as soon thereaStor as
pmotlcnble, and the nsoessary mmberrof'
trustees shall be appointed to take tlii8 :
plaoo OS thosa whose tarns have emimxIr Ths
City Council of caid city of Groewillo ahx111
ennucllp levy antI assess the special tar Sor
the oumort of the ?ublla schools in that
city that has heretofore beon or my bo here-
after voted for that pwgose by the qualisiad
voters in the oity of Green~illo, by on
ordinance duly wssed by said City Council.
upon tho reciuisition of the boar& OS trustees
of the public schools of the city of Groen-
ville, said tax'to bo levied and assessoa in
the seme mancar as is reguircd by this act
in the levy and assoossmt of taxess for
gene-1 purposes.
n6b3todiao &hool.Fund.--me oustodiah ~. ,.
ot other oity fun&3, as providad'in this act,
shall.bo the custodian OS all ?ubaic school
fuudn, u?oatho saae torcxt and ocnditlons es
other Sunas, ati his bon& shall Cover saia
school SW&I,
“‘(0) EOY;Funcls Paid Cut.-+Zo school
Sundo ohdlba paid out oxoept U?OLIpy rolls
or wcrruntu oicneti by the proni8or.t of tbz
school board and countarsignod by the soore-
tary OS said bonril of trustees.
qIt(rl) yinancial Gtato-no9tsr--ft ohall
be tha duty of the school board to ix&a BuCh
financial statexontn or reports as zay bo
ro%mntod by the city coumil, md the cou-
Gil my na!ze or caueo to bo nado uli such
invosti~2iion as to tho oxpondit~uro OS Sxds
or the cohcluct OS tho'schcols as oithar my
docn prog9r.
U'(O) Trustee:: not to rocoivo Co~~ertsa-
tion,--l!o:c?mber of ths school bourd al?all
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n03orable Eugene Brady, Paze 4
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rebeive.any compensation for his service3 in
any cagaoitg whatever, nor be lntereoted
directly or indirectly In any omtreot with*
or olais of da3aud of any chcr%ct%r ogaisost,
the school bosril of tho city of Groenvlllo.
Any such ao&raot, clain or deWmi\sf;sll be
void', any amber of said board who shall *
boome interested in any such contraot, claim,
or demnd, or. shall buy or sell any school
wtarrsots or obligations of said beard, and . .
shall huva any interest in ohy cluiu or
obligations of saiO school board, shall be
subject to removal by tha City Couuail.’
“‘Article Ix. Sec. 1, Office of
Treasurar to bo lot by Contract--!?he OfSice
of tha city treasurer shall, lnstoad of
bein appointed by the City Council, as
h%retoSore be let by.contract to the hi&%st
and best bkdor in tho disorotion of the
city Counail. .Tho City Council shall, not
lers thm thirty day3 prior to -the emira-
tion of the t%m of office of the present
oity traaourer, and ev%rjr two years thsre-
after, advartioo for bl&s Sor the said
office;statingwhat said bMs'slssllape-...~, .I~
oily and the 4em.s on-uhioh ouch bids shall
be rccsivod, end shall appoint a oity‘ .
treasurar at fts meting on Ag5.1 10, 1907,
or as soon thereafter as practlcablo. 1L?y
treas~urer apGoint%d by tha ocntmct ohal.&
n%ver”Uhs18ssbe an officer of tho city cod
subjoot to the saza Uutios..o3 a trensurar
otherwise %leCtod.
W~seiB troeaukor sball execute a bond
pqyablo to tkn city, to bo nn?mvc8 by the -
City Coru~~il, ax3 filed with the City Clorl;,
with not 1333 than thrse solvant siiretius,
urh0s-h%11ovm ucir.ciLrb%rod roal ‘errtut% in
l!unt Cgmty OS es craat a value QB the axmlt
of said b0m.I or s&5 tronsuror zay r,slr%mid
bend in. so::% ay0r0v%& Sidolity as surety
cm:x~ny, ~miclty of mid. bond to bo ct
loeot doubla thlo tot21 rcvanuo of tha City
for the ~reccflin~ fir~czl year cl!d ConditiOId
for th% fuitSfu1 _30rSorm~c% 0S ell d&.00
n&l cbli@iona dovrJvi?lg by lnvr or ordi-
rianco u>en said trcosurar, and for th0 Py-
 mnt updn prosontation~of aLl oheok3 d.kaom
upon Eaid daposltory by the'said olork and ..
'seoretary of tho,bcard of oduc?r:tion.~wh~n-
ever anyefund shall bo.in said troakry ap-
plicablo tc.thc gayrsant of oaid choo'a; ,&na
.' tbatths fund5 of the city ahall.bo faith-
fully kept by the naid trokzurer, and vith'
;~l;;tycst thereon .acoOuntod for. according :
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payn&ts forth6 cane u?on kncrdorbjr the‘
city, and oak% alLpayiwnts for tho sazo
. WJO!Iax ardor by the ~zayor and attaotsd by
tk clerk and,tho aoal 09 8ho corcox%Ition
exoespt'the 'gaymmt into the sohcci fund a&z11
be uson the oidor.oS the board of education
and attesteil by the aecroiaxy of staid boara;
provldcd, that no order ahall bo *id ualoss
it shoves upon it5 face that the Ci@ CouaclL
and BosrU of Zduoation, a5 the base my be,
has ordored ito ixmaace, ana for what jnw-
30309 he 0hal.l render a full and ocrreot
5tatezoatcf MS rocoipt5 and'~py56nt5 to
-_ the City Council at i&air first roglcr
neotin~ in cvory Eonth,'and at such other '
I t&es as the Council. nay reqairo. E3
s&'kl perfcru 5~ch other act3 and dctias
as the Couxcll ziay requira, and racoivo for
MO servlcas $5.00 go: aanuxi; prcvidod that
the City Clark shall be ex-officio City
troawror until the City Council 3hall saleot
a city Troawror in aoccrdance with the
>roYlrions of tho article.
*As you Yzlll nctc fron tho ckrtor pro-
Ylsicna nctea above tho pcxscnnal of the
Bmra of Uucatlon I.3 a~:~ol.ntod by t!i3 City
c0unc11. filsc, that all fun& Yiltharawn ror
the nohool fuad3 in tha dopcsi.tcry 8x1 takzon
out on the oracr of tho school board,"
yn cclnlcn 1;~. O-2856, this depx+zxint, under the
"cto stat& iii cho inquiry roauosting
- 5aid CpinlCx, bald
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i@norablo Eqjene Brady, Page 6.

wfn’octicluslon, wa bag to advise you
tbat In cur opinion (1) the oontraot oade by
the So3rd of Trusteeo of the Trinity fndo-
penaont School Dlstrlot deslcsatlng as ae-
poeitory the ban!:, three of whose dlroctcrs
are trustees, is void; (2) the trustocs are
* act subject ‘to crltinal. proseoutlon under
Artiolo 373 of the Pam1 Code; (3) upcn
neoessaln~ flnalc;s of fact by a court or
5uv, the trustooo tlay be rewrea frcn office
by the ,nrocodur9 provldod by Art1010 6,
3ection 24 of the Ccnatituticn of Texas, and ’
Title 100, Revlsaa Civil Statutes, 1925.”
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The above montlcned opinion Quotas In full Con-
feronea Oplnlon~:!o. 2785 of this aaportzent, dated Ssp-
to&z 16, 129, a?pearlng on psqe 127 of.the Attorney
Cmeral’s published reports for 19284930, which holds::
*that a stockbolder or offioer of a corporation act&z
as a depository for an lndoponaont school dlstrlot wculd~
not be eligible for appointlent or eleotlcn.as trustee
of said sohccl district.” To as0 9nolonl~ a copy of
opinion No. O-2654 for your lnfor&atlon.
We bc not think that tho two cpiulcns nentlcned-
abovo aro applicable to tho questions undar conslderotlcii,
ks the raoto rClotive.tC thcao opinions are not analo,gous
to the Paots prose~ted ln your inquiry. It will be mted
Cat In the two opinions, nentlcnad above, it was tho duty
of the sohocl board to solcot the dopcsltcry for the school
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s P o weva r , in tk9 oituat ion preoeated In your imp&y,
there Is no duty’ lzpo3e& upon tho school board to sol.act*
th dopcsitory for the ochccl funds, but on th3 contrary,
tko city coumi3. sci~cts the aepcsitcry for al.1 city funas,
l:zlludlhg a31 public school funds, and tho school trustcos
6~0 appofAea. by the City Council, al.1 of which la ahcvm
$1 Corkin provlslcns cf the city’s chsrtor c,uotcd above.
1.312’0understaha the facts and the i>rcvlclcns of the city’s
%rter, thuro is ao contraot betmen the school bo?ml
@zd the 01%~ do:,ooitc_rjr vkioh Is also the dcl:onitory for
20 ochcol fun:!&. 170do not think tkt the ~uecltlcn of
‘.‘.a Cl.t;~ council of tha city of Gr3cmlH.c ocntrcctinG
t-4 a* itsGlf IO r:r3sent3d ih thG
-c; iaqUfrj-. ?;elt!ler dC Xc
:Llck. thst the ~ltuo$ion of the Cl@ C!oUniil c>ntSactl.n~*
%lt!l lts3lf or with its crontura Is prosantcd. .With refer-
‘:;% to t;;o ten1 *‘its crc~t;rcl~ cc assum that you rcfsr
!3 th school, bocrd which is appolhtod by’tho Cli;jr Counoll.
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ft apars to ~6, &!!or the Pacts stated, that the City
council oontracts with-the city de~orritory whioh Is no
Frt OS the City Council or no paportOS the aohool beard
ezeopttk7t a mmber of the school, burd is alpo a stock-
boldor and di+curin the city depository.
ti3&w oe.th:, &o.roir~ facts and'the provisions
or tho chartsr gtioto# abdvo; the three quuastlons a3 stztcd
8w10 are resrpeotfull~ au3worob in thtl na3f;Qtive.
.¶Wati~2g that the'foregpixig fully a+\1rors your
IEqulry, r~c'are
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