THE AYTOR~EY GENERAL OF TEXAS Gerald C. Mann

AT-r,,,~NE:S GKNRC:I*Al. AUUTXN ~LTEXAR

Hon. Shelby EL.Long County Attorney Jefferson County Beaumont, Texas Attention: Mr. Earl Blaok, Assistant
Dear Sirt Opinion No. O-5706 Rer Cancommonschool districts and,rural school districts purchase group life insurance for their employees under the provisions of House B~;i~;:6, Forty-eighth LegisWehave your letter of recent date reading as follows:

“Wehave received the following letter from W.J, Holloway, Superintendent, Port Neches Common School District No. 1.6,

“‘The 1943Texas Legislature passed House Bill 326, which became effective on August 99 1943. douse Bill 326amendsthe group life insurance law of the State of Texas to the extent that hereafter

‘group life insurance policies maybe issued upon the lives of all employees, as employees of any independent school district, incorporated city, town OPvillage, which has assumed control of the public school system within such municipality as employer.”

“‘Since commonschool districts and rural school districts were not specifically mentioned in House Bill 326, even though there was no apparent intention for their exclusion, there is a question of legality as to whether or not commonschool districts and rural school districts can purchase group life insurance for their employees.

“‘1 ‘shall appreciate very mushyour getting an opinion for mefrom the Attorney General of this State on this subject at your earliest convenience.’

“The Act that he refers to in his letter is Article 4764a,, R.C.S. as amendedby the 48th Legislatur ee

“We’will appreciate your opinion upon this subject *I@Hon. Shelby K. Long, page 2 (O-5706)

The Act cited (Chapter 349, Acts of the Forty-eighth Legislature) defines group life insurance within the meaning of the Act as “Life Insurance covering not less than 2.5employees written under a policy issued to the employer, the premium for which is to be paid by the employer or by tix employer and employees or classes thereof determined by conditions pertaining to the employment, for amounts of insurance based upon someplan which will preclude individual selection, and for the benefit of persons other than the employer ***.“I

“Group life insurance policies maybe issued conformably to the terms of Section 1 and Subsection 1 of this Act upon the lives of all employees, as employees of any independent school district, incorporated city town or village, which has assumed control of the public schoo1 system within such municipality, as employer; such group life policies to be in conformity with Acts, 1931, Forty-second Legislature. Chapter 101, Page 172 et seq*, as amendedby Acts, 1941 Forty-seventh Legislature, regular session, House Bill No. 10&l, and as amendedby this Act. In the case of such school systems as employers the premiumsupon such group life policies shall be paid by the employees andno part thereof shall be paid by said school district employers; but there is nothing in this Act to prohibit such school employers from deducting the premiums on such group policies from employees’ salaries and paying the premiums therefor with such deductions.t’ It is our opinion that the statute under consideration does not authorize the issuance of group life insurance to the employees of any school district, except those specifically namedin the statute, andyour question is so answered.

It will be observed that in the case of school systems as employers the premiumsupon such group life policies shall be paid by the employees, andno part shall be paid by the employers.
APPROVED

DEC1, 1943 /s/ Grover Sellers FIRST ASSISTANT ATTORNEY

GENFRAL Very truly yours ATTORNEY

GENERAL

OFTEXAS By/s/ C. F. Gibson APPROVED:

OPINIONCOMMITTEE BY: BWB,CHAIFMAN CFG-s:wb C, F. Gibson, Assistant