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Untitled Texas Attorney General Opinion
O-6582
Tex. Att'y Gen.
Jul 2, 1945
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*1 i OFtiCE OF THE ATTORNEV GENERAL OF TEXAS I AUSTIN

GROVER SELLERS AHORNCY GENERAL

BQnQrrblQ Claude Iabell Qf St&Q

SQcrota , Texan

Au8u.n

DQar 8lr1 Opinion IO. 0-6582

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SQr an oplnlon we have no01 QUO of thir dQpartuent, bQvQ vould thlr Q~OQ be ruther- parred dtar- itUtiOn81 a8WMboiIta hgirhtllro tQ thQQQ IiQVqxQQr. fQr ovned and OpQmtQd b7 a person vh~ 8 SQ8dQZk Of &~i~htUlWt &hQ, mu14 a n~vapaper by preMbltQd from publirhlng Quoh QaQndwnt8 bf roamn Qf the fact that a WmbQr Qf thQ hgiebtul'o at vhioh thQaQ QBlQlId.EQlLt8 VQl’Q 8Ub8ittQd a&at ovn stock In ruoh navrpaper? . . .*

:IonorsblQ Olaudm Xmbmll, -8 p!

8QOtiOn 1 Of hl'tiOlQ I? Q? -Q %iSS hXiStitutiOn @'O- mumh "p~~pOm0d SUnSndmontS Shall b. dd7 gublimhmd OAOQ ,idQQ : veok for ?OUr VQQkS, at 1QSSt thl'OQ ~Od-bS bQ?Ol'Q Sa CCQIB?SnO~ lootion, thQ ttiQ Of vhloh Shll bQ SpQOi?i~d by th0 bgtmbtuzxa, a one vmmkl7 nsvmpapar of e&oh county, in vhloh umh a novspaper ay bQ publlahQa."

&rPStO?OFQ the OOSt Of thlQ t of publioetlea baS b~cw rid ?ra~approprlaticm8ad~b rortlmt8peol?lo th LQglmlmturo vi11 make mini- :mOSQ . UQ assuua thQ Forty-n -IS- appmprlatlan to pa7 the oortm of publishiag thQ amndmntm rop088d by thar at this SQ88i0& pprovtdandnlQa8Qe

b1922Op~lon~o.24llv~~ ?rm iis OffbQ br thQ &to &umX'ablQ v. 1. UQlirrg, vho thin vas ;tOl%iQJ O~nerel of %%am. Us wok from 8alA am ?ollwmt

(I . A person vhc vam a mmber of thy leglmla- tUl'Q I&IQ t%M Of thQ QMObOlbt Of IIhQt is kaovn &s thQ 8tQtQ iitf&Wh7 CclPIPiBSiOII IAN Otid ILOt 3AVf'Ul17 OskQ Ii ocmtraot vlth a oountg .?or ro(cd 06nmtruatioa vo* involv- o~~~onIbVa~Qd to 8UCb OOUllt~ b7 the 8tatQ Hi&lm7' UQ thbk ala0 that l porsson rrho vw PrUSbSl Of iho 8tatQ &X&StQ at thQ tbQ Of thQ QMOtStQllt 0r thy l.av ppropri4ting ~glstr8timr. SQWJ to tbo 8tdQ Rlglnm7 Caml88loa oould not lavrult oentraot vlth a count7 vh~r~ fumla apprQprlatQd br rudh l Ot an to be erglldeb. An ap p r o p rlatlea l ut'ir, Q? oour~~, lmr.

8QQ 8Wticn 6, hrtloie 8, 8tXtQ COuiatituti6n. Ceunty’ aontract8 of kln&hWe unbr OotulilQratlan oould IlOt bQ tiQ i? thQ StStUtQ ONtiag 8tStO Highvst Ccmalm8lm and providing for utamobUo reglmtratlua ?QQS haa not been Q.OtQd. Ilm1tb.r oould muoh ooatxaqtm by ma0 tit488 tb xagi8trtun had qtp0prtat0d thy .” thhk it OlQaP, thmnfom, 8tstQ &.&iVN7 -8. of thlr kind 9.0 to bQ OeSridQrQd aa bar- that oontraot lng bmma *authorlaedd' by thm 8tatQ HIghway 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&entm la pr&lbltoU hMtitUti@ll Of %‘QX,ltnS, ?Or

) LQgiSkAtOF+UbiiShQ~ ?Or SQr*i(HS Ad bm b7 authorlt of an approprla

,vhioh much LQ&%s & toepublisher

Tiilat um.

HonorrblQ ohudo Imboll, pm@ f F'urthQrmorQ It Is cur that mmld 8Qotlan 18 Q? hxam l lmQ prQhlbltm a ooni 3 of Cmnmtituthn

Of &tiolQ tract bQtvQQa the State of Turns mad a oorpQrrtlon in vhlch a holdm mteok, iOr thm pul’pOmQ8 hQrQla rmSplkP Q? thQ ~s&im~tUz’Q prepomQd, bQa6usm Q? thQ prinolplQm of thQ Sol- lmv uprQmmQd In 1oVlng aUthQrltlQ8,

In VolwnQ 10, Tax. Jur.,w. 781-782 l pp~rm the frllw- iru:

'Certain17 thQn is amply authorit ?Qr t& vlcnr that tho l tQokhQldQr8 have a bmnmflolal 1ntmFest la 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 the omdltmrm~ and SQQUSnt OOnthgQnOJ Q? ~1lSatiSn b thm ?Om of prmfitm or return Q? (Qr xMmbumQarsnt r0r) him CQntributlmn.~" (tbdQrSOOrbg ddQd ?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? uppllQm for a olt7 troa a oorpontlQn, thQ manager -of vhloh van almQ Clt7 C~~~ollman, vat ill~gal.b~oa~~~ tbQ “lndlrmotlr lntQnmto4 in virv of 8tatutQ Counoilmanvam prohibiting an Q?f;C.cer Qf thQ Oit7 frQE4 being intQ!'QEtQd, dlrQctl7 or lndlreotl~, b ~n7 Omntraot vlth uoh,olty. VQ am ?*12mvmr qwto ire5 aaid mane an offiow Is mubmtan-

"Uhoa It appearm thll7 bonQ?ltod, ?lnmnolall7 or QthmrvlmQ, by him pmrtlolpatlon la oontmot vlth the runiol- vhloh ho rQprQmQntm, thy t~8aOtlOYJ is faatt bl7 doalar~d tQ by IllQgal. Under much lxa Oi~UWtFUtOQS, ia It8 QffQrt tQ uphrld thQ trUU-

l otlen, a awrt vi11 nQt rmmQrt tQ ?iaQ dirtsno-. .~~ tiQn8 in QrdQr t0 dQtQIminQ'jUSt VhSt ?SOtS vi11 thQ part of aQnmtltutQ an filndlnot lnt.QrQmt* in Qffloor.g (&dQrmooring addQd ?Qr Q-q&maim) In VIQV of tbQ ?~r~&Qin& dr not ~Q~IQVQ thQ SQWQ: kry Q? 8tmtQ tQ bQ authorlmQd tQ SUbpllt ?Or publlocrtlon COMtl- tutiQna1 ~ondmmntm proposed at this mmmlmn di thQ YaglmlaturQ to thomQ aovmpmpen~tbst arQ ovnad md QpQmtQd br Qr, if oorgwatima, in vhlch steak ir hQld by, pomm V~Q Is a mK&or

of thtm Qmml~ Q? thm kglmirturm.

Um hmrevlth onoloaQ omp7 maid Opinion Ho. 2411.

Case Details

Case Name: Untitled Texas Attorney General Opinion
Court Name: Texas Attorney General Reports
Date Published: Jul 2, 1945
Docket Number: O-6582
Court Abbreviation: Tex. Att'y Gen.
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