Untitled Texas Attorney General Opinion ( 1972 )

November 1. 1972 Hon. Robert S. Calvert Opinion No.M-1257 Comptroller of Public Accounts State Finance Building ke: Whether Tyler State Col- Austin, Texas 70711 lege may pay for insurance providing coverage for: Hon. James R. Sawyer (1)workxen's compensation Vice President for Fiscal Affairs on college enployeee, (2) Tyler State College public liability on college P. 0. Box 1142 premi8e.s. (3) automobile Tyler, Texas 75701 liability and medical pay- ments on college owned or leased vehicles, and (4)fire and extended cover- age on college buildings and contents, by vouchers submitted for payment out of General Revenue appro- Gentlemen: priations? You have requested an opinion on the following specific question: "Will Tyler State College be able to pay premiums on the following ineurance coverages on voucherk payable from the General Revenue Appropriation? "(1)Worlcnen'ecompensation on the college employees. -6162- Hon. Robert s. Calvert and Hon. James R. Sawyer, Page 2 (M-1257) "(2)Bodily injury and property damage liability insurance and premises medical pay- ments upon the premises of Tyler State College. W (3)Automobile liability, medical payments and physical damage on college owned or leased vehicles. "(4)Fire and extended coverage on buildings and contents." In answer to your question regarding payment for workmen’e compensation (l), such authorization must be found under authority of Section 59 to Article III of the State Constitution (Nov. 3, 1936). The Legislature has authority under thin constitutional amendment to enact laws allowing state institutions of higher learning to purchase workmen@e compensation policies for their officers and employees. But to date no such general legislation has been enacted to allow such state institutions ofhigher learning as Tyler State College to purchase thiscwerage. Neither has any:specific legislation been passed covering such authority for Tyler State College. In the absence of such 'legie- lation, your college is without legislative authority to purchase this insurance. In answer to the question regarding bodily injury, property damage and medical payments on premises (2). we recognize that under the provisions of the Texas Tort Claims Act, Article 6252-19, Vernon's Civil Statutes, the college, ae a governmental inetitu- tion is exposed to liability and muit for certain negligent acts or omieeions: and general authorization is found in said Act for agencies or institutions to purchaee liability insurance. However, the current General Appropriations Act; S.B. 1 (Acts 62nd Leg., 3rd C.S., 1972), Sec. 44, page IV-81, forbids the expenditure of any funds by state agencies ofhigher education for purchase of liability insurance to cover claims arising under the Texas Tort Claims Act. -6163- ,Hon. Robert S. Calvert and Ron. James R. Sawyer, page 3 (M-1257) In anewer to your question regarding autmobile liability insurance (3), Article 6252-19a, Vernon's Civil Statutes, in ite relevant provisions, reads as follows: "Section 1. The State Departments or agencies who own and operate motor vehicles, air- craft and motorboats or watercraft of all types and sizes shall have the authority to insure their officers and employees from liabilitv arieins out of the use, otaerationand maintenance of such auto- mobilee,.trucka, tractors, power equipment, air-, craft and motorboats or watercraft ueed or which may be used in the operation of such department or agency. Such insurance shall be provided 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 T-0. 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.. II . . . "Sec. 4. Such payments are to be charged against the maintenance fund of the department for which such employee is~employed." (Wlphaeis added.) Our opinion is that you my purchase and pay for automobile liability insurance on college owned or leased motor vehicles out of the General Revenue Appropriations, since the limitation contained in the General Appropriation Act (6.8. 1) applies only to insurance purchased under the provisions of Article 6252-19 and not 6252-19a. See Attorney General's Opinion M-1215 (1972). The above authority only extends to public liability coverage. i.e., bodily injury and property damage.liability insurance, -6164- Hon. Robert S. Calvert and Hon. James R. Sawyer, page 4(M-1257) and not to collision or medical payments coverage On the vehicle insured. In answer to your question regarding fire and extended coverage on college buildings and contents: In view of the Senate Concurrent Resolution No. 3 (Acts 37th Leg., 2nd C.S., 1921), which expresses legislative intent that no insurance shall be taken out upon any public buildings or the contents thereof of this State, and prior Attorney General's opiniona holding that state warrants may not be issued in payment of insurance premiums in the absence of specific appropriations for that purpose (Atty. Genl. Opin. No. C-193 (1963) and others cited therein), we conclude that you cannot purchase fire and extended coverage insurance on college buildings or their con- tents. It is our opinion that you cannot buy insurance as described in categories (l), (2) and (4) but that you can buy automobile public liability insurance (3) and pay by voucher.on the General Revenue Appropriations. SUMMARY Article 6252-19a. Vernon's Civil Statutes, authorizes Tyler State College to pay premiums on automobile public li- ability insurance on college owned or leased vehicles by vouchers payable from General Revenue Appropriation. There is no legislation authorizing purchase of workmen's compensation in- surance by Tyler State College. -6165- _. . Bon. Robert S. Calvert and Hon. James R. Sawyer, page S(M-1257) Restrictions in S.B. 1 (Acts 62nd Leg., 3rd C.S., 1972) Sec. 44, page IV-81, pro- hibit purchase of public liability insurance on Tyler State College premises. In view of legislative intent expressed in Senate Concurrent Resolution No. 3 (Acts 37th Leg., 2nd C-S., 1921) and prior Attorney General Opinions, Tyler State College may not pur- chase fire and extended coverage insurance on college buildings. Yo* very truly, Prepared by Barry C. Green Assistant Attorney General APPROVED: OPINION COMMITTEE Kerns Taylor, Chairman W. E. Allen, Co-Chairman Austin Bray Arthur Sandlin Jerry Roberts Sam Jones SAMVBL D. MCDANIEL Staff Legal Assistant ALFRED WALKER Executive Assistant NOLA WRITE First Assistant -6166-