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OFFICE OFTHEA-I-TORNEYGENERALOFTEXAS

AUSTIN

June 15. 1939

HonorableHolver 'Williams CriminelDistrictAttorney -moo, i’cx5s

uherda you **re** lag qy38tloar

eing amember of the Sohoal. d Sue1 i8 bsught oa oomprtlthe oorporatioa*s**bid** 16 a sub8tantie.l

mmunt enduhere ofSlo0r8 of the oorgboratioa and

part or the ~0h001 seerd or the Corporation and Is not presentwhen thematter 118

dlsomaed en6 the aoatrno8roted on end let by theGohool Board?*

YOU lMlltiOl& hl’tiQb 378 Qi th@ PtlIld'%?dO Which make8 It an oSSua8u Sor cay orsloerof anyoounii~~ 41: ol any oity or krm, 80 bo0omn peeurrlarfl~ **tnteroetcd in**  **uay** oantraats **made bjr**  **suoh eouuty,**  ofty, **Or town,**  **and** dfrnet. .I?onornble !!oivny.~IllIc~, June 15, 1939, Paps 2

our attention to the fact that somedoes not make any relemnce to ofilaera of sob001 dlstrlctsbscoliiq>ints+raoted 111 corrtracta;nadeby such dietriots. In the OI~LC of Sohurz VE. Teller, 74 c:.;:. (2d) 327, the Court of Civil Qpenls says thht a school truatse is a county orricer. lIowever,it isunneoeaoaxy for us to antemine whettieru ochool trustae is 8 oounty ol'fiocr,mdrwhether a mohool oontraot is the equivalent of a oounty contraotnithln thu :Eenoing or **h-tio1~ 57::**  **of** the **iwd. Co&,**  **sinan se**  bellova it **clear** thut even In t!:c: ebsenoe of,statuta ?.cr aontrnct :r:.ich

you nentiol;

donnot lneellyhe made.
From Llllonon Wnioipsl Cor~orc~~l:mo, 5th ?Xtltion, **Volume 2,**  paces 1140, 1143 to 1145, end 1148 to 1147,we qlots em follows:

*lt is a well-satcblis.':ed nnd salutary doctrine th6t :IC) W%O lc intrusted alth the business i)fothero cexot na ellowed tomake suoh buslnsss an obJaot of E*niary proSit to himself. t-hi8Nl;idoes not dejmnd on reasonlnR technioal in its onamoter, Pad Is not locul In its appliontion. It is **bmabd** upon prlnoiplcs or rceson, of mornllty, nnd or publle poliayi It has ita fourldkhtion in the v6i-y aonntltutlon or our n&urn, ,forit has au-. thori:ntlrelybeen aeolared that a man oannot serve two aastern, md l.6recognized and er!:oroed

wherever a well-regulated syeternof Jurlspnxdenoe tirerails-

. . u/it OOmmorAlBw Ma generallyunllex statut<sry

e:iaotment,

it ia no.8established beyond qtieatlon

thei a oontraotmaA* **by** an oiflcor of a munlclvall~y with hImself,or ‘in**iah he is lotarmated. is eontrarv to public polio? and tainted-with Illegeilty; end this rule applies witether.suoh otiiaer eots nlono on behalf OS the muniolpallty, or RR a member of (r board of counoll. xieithr the Snot that amaJorIty oS the votes of e oounoil or board in Savor OS t:.aooutraot nrn osst **by** dlalntsrestedorfloeru,nor t>a feat that **the ofricer**  **in** terested did not partiolpato la the prooeedlngs, neoe8aarlly relieves tr:eoontraot from its vloe. The rsot tnnt the latamat OS the OSrenaIne offioer in the. ‘

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**Bonorabls** Uol.ieyit'illi~, June 15, 1930, Page 3



### (edI 9% Invalid coatraot is lndlraot end is yezy

small **is immtarlal** 
. . . Vontracteawith flnw In nhloh a **msa** her of the counoil or other ~uuioipfd offloer 1s 4 partner fallwithin the prlnolple, snd th+ interest of$he offlaer th4r4ln u-111taint aaV such aontraot with lllegrl**1ty. A**  **m-bar or**  **me oountr**  counoll or at&r aunla1Rs.l Klosr Is lntsrest4d in a 4ontraot 00 **'to ta t Itwith lllogsl ItVwhen the 

### aontraot Ismad4 with e corporation ofwhloh hs Is an offloer and under 861~4olrourstanooswith a oorporatlon of whiah he is a stoakbald4r."

us sale In City OS Rdlnburg ~8. XUlls, 89 **6.W.** OphiOn by the ColPniSeiOn Or &p3t&t4! *It Is~thegw~eral rule that munlclpal oontraots Inwhloh offlo4rs or smploV444 of the olty have a personal, peou-. niary inters& are void.* Ouoh Is ths ral4 0'1411**in the**  **ebmenoe of**  statute. Plumbing k 2upply Co. vs. Oihe$ar, 229 Paalflo lO2O; **stwkton** Dillon on blunlolpal Co~poratl0ns, 8th Gdltlon,, Vol. 2, auprq 0 R.C.L. 740; 44 C.J. 89 t& 90; So~u11Sl.n on Xunlolpal Oar**poratlons, 2nd**  Zdltloa, Vol. **2,** p. 211, and Vol. S, pi 9111,

The raot that then~0101p41 ofri04i 1s a &oakboldor, or an otfloer in the oorporetion rfth whoa **the** eon**traot** Is mad4 o0nst:tutes **moh** an interest ln the oo&raet a8 ta taint it 1~1thill@ity in awordanoe wlithtbs above prlnolplw. Dillon on Nunlaipal Corporntlone, supn;\Yawlln on Runlolpnl Corporations, 2nd Rdltlon,Vol. 2, 9G2l7, and Vol. 3, p. 943; 44 C.J. 93; annotations on page 1099 in L.R.A. (Annotated) **1910-c.**

Th4 faot that the Punlolpal offloer or trusta 80- tually tak4s no part In the mtt4r of letting ttm 40ntraat. lo immatericd. The law//boatampLatdr that ha ahall

## sottia hluolr to bs plaoed In 8uoh a l ltuatlon that ho fool8,'sod upon to rdraln fnm taking part In 8uoh busln4a8. 110 vhlah h4 84xves is entitled to his notlya 84rrl00; sag hi8 sllanos or **abaenoa** .ls VQJsub8tltut4 tharef'0r. Tha fMt that suoh ooatraot is l&-%n ooakp4tltlre bidding 40~ 810%il**tar** the l

ltuatlon. Tha l-eat bid Is not always the **beat b14**  and a aertaln diaorstlon 18 left with publia board! ia tk. .

. Ronor4bl4 Xol~4j \~l~lls~.Jun4 15, **1939, i** **’ age**  **4**

letting of contracts on aoanp4tltl~4 blddlny. Tha authorltl48 rather uniforrcly forbid themaking of euch contracta u.rderauoh alroumta~o4e. Our4n4w4r toyour ..peotion10 a negative one,

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