April 11, 1966 

Honorable John Connally 

Governor of Texas 

Austin, Texas 

ATTN: Hon. Walter Richter, Director 

Texas Office of Economic Opportunity 

Opinion No. C-653 

Re: Whether Article 432, Vernon's Penal 

Code, is applicable to the Board of 

Economic Opportunity of Laredo and 

Webb County, organized as a nonDear Governor Connally: profit corporation. 

Your request for an opinion poses the following question; 

*Are the members of the Board of Directors of 

a private corporation, chartered under the laws of 

the State of Texas for the purpose of receiving and 

distributing Federal funds in conformity with the 

Economic Opportunity Act of 1964, subject to the 

'nepotism' laws of the State of Texas, where the 

salary of the personnel appointed by the members of 

the Board of Directors is paid with Federal public 

funds?" 

Articles 432 and 433, Vernon's Penal Code, provide as 

follows: 

"Art. 432. , . . 

"NO officer of this State nor any officer of 

any district, county, city, precinct, school district, or other municipal subdivision of this State, 

nor any officer or member of any State district, 

county, city, school district or other municipal 

board, or judge of any court, created by or under 

authority of any General or Special Law of this 

State, nor any member of the Legislature, shall appoint, or vote for, or confirm the appointment to 

any office, position, clerkship, employment or duty, 

of any person related within the second degree by 

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Hon. John Connally, Page 2 (C&53) 

affinity or within the third degree by consanguinity to the person so appointing or so voting, 

or to any other member of any such board, the 

Legfslature or court of which such person so appointing or voting may be a member', when the salary, fees, or compensation of such appointee is to 

be paid for, directly or indirectly, out of or from 

public funds or fees of office of any kind or character whatsoever; provided, that nothing herein contained, nor in any other nepotism law contained in 

any charter or ordinance of any municipal corporation 

of this State, shall prevent the appointment, voting 

for, or confirmation of any person who shall have 

been continuously employed in any such office, posftion, clerkship, employment or duty for a period of 

two (2) years prior to the electionor appointment 

of the officer or member appointing, voting for, or 

confirming the appointment, or to the election or 

appointment of the officer or member related to such 

employee in the prohibited degree." 

"Art. 433. . . . 

"The inhibitions set forth in this law shall 

apply to and include the Governor, Lieutenant Governor, Speaker of the House of Representatives, Railroad Commissioners, head of departments of the State 

government, judges and members of any and all Boards 

and courts established by or under the authority of 

any general or special law of this State, members of 

the Legislature, mayors, commissioners, recorders, 

aldermen and members of school boards of incorporated cities and towns, public school trustees, officers 

and mqbers of boards of managers of the State University and of its several branches, and of the various 

State educational institutions and of the various State 

eleemosynary institutions, and of the penitentiaries. 

This enumeration shall not be held to exclude from the 

operation and effect of this law any person included 

within its general provisions." 

The above-quoted penal provisions are directed at officers 

making appointments. 

(Tex.Civ.App., 1965). 

Jackson v. Maypearl I.S.D., 392 S.W.2d 892 

Since the Board of Economic Opportunity of Laredo and Webb 

County was chartered under the laws of the State of Texas as a 

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Bon. John Connally, pa,ge 3 (c-653) 

private corporation, for the purpose of receivin and distributing Federal funds in conformity with Public Law 8 8-452, known as 

the Economic Opportunity Act of 1964, the purpose of which was 

to "eliminate poverty by giving needy persons an opportunity for 

education, training, and work, it 'is our opinion that neither 

the corporation nor the members of tl:c board of directors .of such 

co'rporation are officers within the meaning of Articles 432 and 

433, Vernon's Penal Code. You are therefore advised that such 

provisions are not applicable to the corporation or to members of 

the board of directors of such private corporation. 

SUMMARY 

The provisions of Articles 432 and 433, Vernon's 

Penal Code fiepotism laws of the State of Texas7 

are not applicable to a private corporation orto the members of the board of directors of a 

private corporation chartered under the laws of 

the State of Texas for the purpose of receiving 

and distributing Federal funds in conformity with 

Public Law 88-452 known as the Economic Opportunity Act of 1964. 

Yours very truly, 

WAGGONER CAP3 

Attorney General 

JR:ms 

APPROVED: 

OPINION COMMIITEE 

W. V Geppert, Chairman 

Pat Bailey 

'-Wade Anderson 

Robert Flowers 

Phillip Crawford 

APPROVED FOR THE ATTORNEY GENERAL 

By: T. B. Wright 

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