Case Information

*1 n The Attorney General of Texas September 18, 1986 JIM MATTOX

Attorney General

Supreme P. 0. BOX 12548 _ ._, Telex Telecopier A,,-‘i^ _ -501 9101874.1367 V. Court Building 512/475-0266 78711. ^[2548] Mr. Vernon M. Arrell Texas Rehsbilitaticn Commission C0IllUlissi0ner Austin, Texas 787C4 118 East Riverside Drive Opinion No. m-547 Re: Whether a state agency may insure mail or freight in transit Dear Mr. Arrell: 714 Jackson, Suite 700 Dallas, TX. 752024506

You ask whethe.c the Texas Rehabilitation Commission may insure 2141742-8944 freight or mail in transit. You explain that the commission has not done so in the past because of a number of attorney general opinions 4624 Alberta Ave., Suite 160 that have said tI.at state agencies must have specific statutory El Paso, TX. 79905.2793 authority to purchase insurance. 9151533.3464

This office has: issued opinions stating that state agencies may not purchase propel'ty insurance without specific authority. An early +X81 Texas, Suite 700 ato”, TX. 77002-3111 opinion supported that holding on the basis that premiums on insurance I I 312235686 policies could not be paid out of an appropriation for "contingent

expenses" because such expenses were "fixed and expected" expenses that had to be speciEically provided for by the legislature. Attorney 806 Broadway. Suite 312 General Opinion O-201 (1939); see also Attorney General Opinion O-184 Lubbock. TX, 794013479 8081747-5238 (1939). The opini'on also cited a Senate Concurrent Resolution

expressing legislative intent that no insurance be taken out on public buildings or theiT, contents. A number of ouinions have followed 4309 N. Tenth, Suite 6 opinion-0-201. Sel!,e.g., Attorney General Opinions M-1257 (1972); McAllen, TX. 78501-1685 512/682-4547 M-753 (1970); O-8=-(1939). This office has also issued opinions stating that state agencies 2M) Main Plaza, Suite 400 not purchase liability insurance without specific statutory San Antonio, TX. 78205.2797 may authority. See, e.g:, Attorney General Opinions H-1318 (1978); H-742 5121225-4191 (1975); M-1257 (1972). The reasoning underlying those opinions is that, because the legislature has specifically authorized various An Equal Opportunity/ agencies t:0 purchase liability insurance in certain state Affirmative Action Employer circumstances, the legislature has indicated that state agencies may

not purchase liabiltty insurance without such specific authorization. We do not think that it follows from these opinions that a state agency may not inswe mail or freight in transit. Agency heads are responsible for the care and safekeeping of state property possessed by their agencies. V.T.C.S. art. 610b, 88.03(a). Purchasing postal insurance or freigh.: insurance from the carrier to cover such property p. 2424 *2 Mr. Vernon M. Arrell - Page 2: (JM-547)

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when it is in transit may be a reasonable means of caring for state property. In such circumstmces, insurance purchased to cover mail or freight in transit is, in effect, an additional cost of postage or transportation. Also, like postal expenses generally, expenditures for insuring mail and freiE,ht are not "fixed and expected" expenses. See Attorney General 0pin:ton V-1423 (1952) ("contingent expenses" include postage). Therefwe, a state agency may spend money appropriated for contingent 'expenses or operating expenses for postal or freight insurance.

SUMMARY A state agency C.oes not need specific authoriza- tion to insure ma:.1 or freight in transit.

Very truly yours JdJkbt

.

JIM MATTOX Attorney General of Texas JACK HIGHTOWER

First Assistant Attorney General

MARY KELLER

Executive Assistant Attorney General

RICK GILPIN

Chairman, Opinion Committee

Prepared by Sarah Woelk

Assistant Attorney General

p. 2425