NET GENERAL. 

~TEXAS 

AUSTIN. TEXAS 78711 

cxcAWF”RD c. IrllART,N 

November 26, 1969 

The Texas Industrial Opinion No, M- 522 

Accident Board 

State Insurance Building Re: Whether Section 18, Article 

Austin, Texas 78701 8308, V.C.S., applies to 

Navigational Districts, 

Water Districts, and River 

Gentlemen: Authorities. 

You have requested our opinion as to whether or not 

Article 8308, Section 18, Vernon's Civil Statutes, applies to 

Navigational Districts, Water Districts and River Authorities. 

Section 18 of Article 8308, Vernon's Civil Statutes, 

in part, provides as follows: 

"Any employer may assume with respect to any 

employee or classification of employees not within 

the coverage of this law, other than any such 

employee or classification of employees for whom 

a rule of liability or a method of compensation 

has been or may be established by the Congress 

of the United States, the liability for compensation imposed upon employers by this law with 

respect to employees within the coverage of this 

law..." 

Section 59 of Article XVI, Texas Constitution, authorizes 

the creation of conservation and reclamation districts. The 

Legislature has enacted statutes creating such districts in Title 

128 of Vernon's Civil Statutes, (Volumes 21, 21A and 21B). 

Navigational Districts and like political subdivisions, 

created under the constitutional provision for conservation 

and development of natural resources and statutes enacted thereunder, 

are political subdivisions of the state performing governmental 

functions and standing upon the same footing as counties and 

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The Texas Industrial Accident Board, Page 2 (M-522) 

other political subdivisions established by law. Willacy County 

Water Control and Improvement District No. 1 v. Abendro2, 177 

S.W.2d 936, 142 Tex. 320 (1944). This proposition of law was 

affirmed in Dillard v. Nueces County Navigation District No. 1 

Terminal Grain Elevator Project, 214 F.Supp. 868 (S.D.Tex. 1963). 

In the Dillard case, the Court held as follows: 

"It is apparent that the State Legislature 

has never considered such political subdivisions, 

municipal corporations, or the State itself, to be 

included in the above definition of 'employer', 

since on at least four different occasions it has 

submitted constitutional amendments to the electorate, 

authorizing the Legislature to provide for workmen's compensation for State employees (Art. 3, 

sec. 59, 1936), county employees (Art. 3, sec. 60, 

1948), municipal employees (Art. 3, sec. 61, 1952), 

and for county and other political subdivision 

employees (Art. 3, sec. 60, 1962). See,. also 45 

Tex.Jur., Workmen's Compensation, Sec. 69, and 

40 Tex.Jur.Zd, Municipal Corporations, 6ec. 622. 

"Legislation providing for this coverage 

is contained in Articles 8309c for county employees, 

8309d for University of Texas employees, and 

8309e for city, town and village employees, the 

last of which was passed in 1953. As yet no 

legislation has been enacted covering 'other 

political subdivisions.' 

"Thus, it would appear that a navigation 

district stands in the same position as that 

occupied by a city, town or village before any 

legislative authorization to become a subscriber. 

This analogy is necessary because the State 

courts have not passed on the eligibility of a 

navigation district to subscribe to workmen's 

compensation. The courts have, however, 

considered this question several times in 

connection with cities, towns and villages. 

(214 F.Supp. 870)..." 

The Court stated that the definition of "employer" in 

Section 1 of Article 8309 would not exclude a naviqation district 

or other political subdivision, and that it was first held by 

the Courts that the compensation laws did not apply to cities 

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The Texas Industrial Accident Board, Page 3 (M-522) 

and towns. (Citing authorities). After discussing various cases, 

the Federal Court stated: 

"The line of cases cited appears to this 

Court to have developed the proposition that a 

city or town could, even before the constitutional amendment and legislation referred 

to, become a subscriber under the Texas Workmen's 

Compensation Act with an old line legal reserve 

insurance company. The distinction in the cases 

on whether or not the Industrial Accident Board 

has jurisdiction, as well as whether or not 

the common-law remedies would be available, 

seems to rest on the intention of the city and the 

insurance company as evidenced in the policy. 

Where the agreement recognized that the Workmen's Compensation Act did not apply except 

asto the determination of benefits, then the 

Industrial Accident Board would have no jurisdiction; but where the city attempted to become 

a subscriber under the Act and the company 

retained the premiums on this basis, then a 

claim should be made to the Industrial Accident 

Board and all provisions of the Workmen's Compensation Act would be applicable. 

"This Court holds, therefore, that a 

navigation district may become a subscriber 

for workmen's compensation insurance for its 

employees, provided it does so in an old line 

legal reserve company." (214 F.Supp. 871). 

We therefore answer your question in the affirmative. 

------- SUMMARY 

Article 8308, Section 18, Vernon's Civil 

Statutes, applies to navigational districts, 

water districts, and river a horities. 

C. MARTIN 

y General of Texas 

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The Texas Industrial Accident Board, Page 4 (M-522) 

Prepared by Jack Sparks 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Kerns Taylor, Chairman 

George Kelton, Vice-Chairman 

Wardlow Lane 

Malcolm Quick 

Roger Tyler 

Houghton Brownlee 

MEADE F. GRIFFIN 

Staff Legal Assistant 

NOLA WHITE 

First Assistant 

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