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: WhetherArticle 432, Vernon's Penal Code, is applicable to the Board of Economic Opportunity of Laredo and Webb County, organizedas a nonDear Governor Connally: profit corporation.

Your request for an opinionposes the following question;
*Are themembers of theBoard 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 conformitywith the Economic OpportunityAct of 1964, subject to the 'nepotism'laws of the State of Texas, where the salary of the personnel appointedby themembers 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 othermunicipal subdivision of this State, nor any officer ormember of any State district, county, city, school district or othermunicipal 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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affinity or within the third degree by consanguinity to theperson so appointing or so voting, or to any othermember of any suchboard, the Legfslature or court of which suchperson so appointing or votingmay 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 othernepotism law contained in any charter or ordinance of anymunicipal corporation of this State, shallprevent the appointment,voting for, or confirmation of any person who shallhave been continuously employed in any such office,posftion, clerkship, employmentor 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 ormember 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 ofRepresentatives,Railroad Commissioners,head of departments of the State government, judges and members of any and all Boards and courts establishedby or under the authority of any general or special law of this State,members of the Legislature,mayors, commissioners,recorders, aldermen and members of schoolboards of incorporated cities and towns,public school trustees, officers and mqbers ofboards of managers of the StateUniversity and of its severalbranches,and of the various State educational institutionsand of the various State eleemosynary institutions,and of thepenitentiaries. This enumeration shallnot be held to exclude from the operationand effect of this law any person included within its general provisions."
The above-quotedpenal provisions are directedat officers making appointments. (Tex.Civ.App.,1965). Jackson v. Maypearl I.S.D., 392 S.W.2d 892

Since theBoard of Economic Opportunity of Laredo and Webb County was chartered under the laws of the State of Texas as a

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### pa,ge 3 (c-653)

private corporation, for the purpose of receivin and distributing Federal funds in conformity with Public Law 88-452, known as the Economic OpportunityAct of 

### 1964, thepurpose of which was to "eliminatepoverty by giving needy persons an opportunity for education, training,and work, it 'isour opinion that neither the corporationnor themembersof tl:c board of directors .ofsuch co'rporation

are officers within themeaning of Articles 432 and 

### 433, Vernon's Penal Code. You are thereforeadvised that such provisions are not applicable to the corporation or tomembers 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 themembers of the board of directors of a private corporation chartered under the laws of the State of Texas for thepurpose of receiving and distributing Federal funds in conformity with Public Law 

### 88-452 known as the Economic OpportunityAct 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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