n 

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 Rehsbilitaticn Commission 

118 East Riverside Drive 

Austin, Texas 787C4 

Opinion No. m-547 

Re: Whether a state agency 

may insure mail or freight in 

transit 

714 Jackson, Suite 700 

Dallas, TX. 752024506 

2141742-8944 

Dear Mr. Arrell: 

You ask whethe.c the Texas Rehabilitation Commission may insure 

freight or mail in transit. You explain that the commission has 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.at state agencies must have specific statutory 

9151533.3464 authority to purchase insurance. 

+X81 Texas, Suite 700 

ato”, TX. 77002-3111 

I I 312235686 

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'ty insurance without specific authority. An early 

opinion supported that holding on the basis that premiums on insurance 

policies could not be paid out of an appropriation for "contingent 

expenses" because such expenses were "fixed and expected" expenses 

that had to be speciEically provided for by the legislature. Attorney 

General Opinion O-201 (1939); see also Attorney General Opinion O-184 

(1939). The opini'on also cited a Senate Concurrent Resolution 

expressing legislative intent that no insurance be 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 

An Equal Opportunity/ that, because the legislature has specifically authorized various 

Affirmative Action Employer state agencies t:0 purchase liability insurance in certain 

circumstances, the legislature has indicated that state agencies may 

not purchase liabiltty insurance without such specific authorization. 

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 such property 

p. 2424 
. 

Mr. Vernon M. Arrell - Page 2: (JM-547) 

when it is in transit may be a reasonable means of caring for state 

property. In such circumstmces, insurance purchased to cover mail or 

freight in transit is, in effect, an additional cost of postage or 

transportation. Also, like postal expenses generally, expenditures 

for insuring mail and freiE,ht are not "fixed and expected" expenses. 

See Attorney General 0pin:ton V-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 insure ma:.1 or freight in transit. 

Very truly yours JdJkbt . 

JIM MATTOX 

Attorney General of Texas 

JACK HIGHTOWER 

First Assistant Attorney General 

MARY KELLER 

Executive Assistant Attorney General 

RICK GILPIN 

Chairman, Opinion Committee 

Prepared by Sarah Woelk 

Assistant Attorney General 

p. 2425