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# The Attorney General of Texas
JIM MATTOX Attorney General September 18, 1986

Supreme Court Building P. 0. BOX 12548 A,,-‘i^ V. 78711. 2548

_ ._, _-501 Telex 9101874.1367 Telecopier 512/475-0266 Mr. Vernon M. Arrell C0IllUlissi0ner Texas RehsbilitaticnCommission 118 East RiversideDrive Austin, Texas 787C4 OpinionNo. m-547 Re: Whether a state agency may insuremail or freight in transit
714 Jackson, Suite 700 Dallas, TX. 752024506 2141742-8944 Dear Mr. Arrell: You ask whethe.cthe Texas Rehabilitation Commission may insure freight or mail in transit. You explain that the commissionhas not 4624 Alberta Ave., Suite 160 done so in the past because of a number of attorney general opinions El Paso, TX. 79905.2793 that have said tI.atstate agencies must have specific statutory 9151533.3464 authority to purchase insurance.

+X81 Texas, Suite 700 ato”, TX. 77002-3111 I I312235686
806 Broadway. Suite 312 Lubbock. TX, 794013479 8081747-5238
4309 N. Tenth, Suite 6 McAllen, TX. 78501-1685 512/682-4547 This office has:issued opinions stating that state agencies may not purchase propel'tyinsurancewithout specific authority. An early opinion supported thatholding on thebasis thatpremiums on insurance policies could not be paid out of an appropriation for "contingent expenses" because such expenses were "fixed and expected" expenses thathad to be speciEicallyprovided for by the legislature. Attorney General Opinion O-201 (1939); see also Attorney General Opinion O-184 (1939). The opini'onalso cited a Senate Concurrent Resolution expressing legislative intent that no insurancebe taken out on public buildings or theiT,contents. A number of ouinions have followed opinion-0-201. Sel!,e.g., Attorney General Opinions M-1257 (1972); M-753 (1970);O-8=-(1939). 2M) Main Plaza, Suite 400 This office has also issued opinions stating that state agencies San Antonio, TX. 78205.2797 may not purchase liability insurance without specific statutory 5121225-4191 authority. See, e.g:,Attorney General Opinions H-1318 (1978);H-742 (1975); M-1257 (1972). The reasoning underlying those opinions is AnEqualOpportunity/ that, because the legislature has specifically authorized various AffirmativeActionEmployer state agencies t:0 purchase liability insurance in certain circumstances, the legislaturehas indicated that state agencies may not purchase liabiltty insurancewithout such specificauthorization. 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 suchproperty

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when it is in transitmay be a reasonable means of caring for state property. In such circumstmces, insurancepurchased to covermail or freight in transit is, in effect, an additional cost of postage or transportation. Also, like postal expenses generally, expenditures for insuringmail and freiE,ht are not "fixed and expected" expenses. See Attorney General 0pin:tonV-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 authorization to insurema:.1or freight in transit. Very trulyyours 

# JdJkbt

. JIM MATTOX Attorney General of Texas JACK HIGHTOWER First AssistantAttorney General MARY KELLER ExecutiveAssistantAttorney General RICK GILPIN Chairman,Opinion Committee Prepared by SarahWoelk AssistantAttorney General

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