## NET GENERAL. ~TEXAS
AUSTIN. TEXAS 78711 cxcAWF”RD c. IrllART,N
November 26, 1969

The Texas Industrial OpinionNo, 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 Districtsand River Authorities.

Section 18 of Article 8308,Vernon's Civil Statutes, in part, provides as follows:

"Any employermay assumewith respect to any employee or classificationof employees not within the coverage of this law, other than any such employee or classificationof employees forwhom a rule of liability or a method of compensation has been **or** may be establishedby the Congress of the United States, the liability for compensation imposed upon employersby this lawwith respect to employeeswithin the coverage of this law..."

Section 59 of Article XVI, Texas Constitution, authorizes the creation of conservationand reclamationdistricts. The Legislaturehas enactedstatutes creating such districts in Title 128 of Vernon's Civil Statutes, (Volumes21, 21A and 21B).

Navigational Districts and like political subdivisions, created under the constitutionalprovision for conservation and development of natural resources and statutes enacted thereunder, are political subdivisionsof the state performing governmental functions and standing upon the same footing as counties and

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other political subdivisionsestablishedby law. Willacy County Water Control and ImprovementDistrict No. 1 v. Abendro2, 177 S.W.2d 936, 142 Tex. 320 (1944). This proposition of lawwas affirmed in Dillard v. Nueces CountyNavigation DistrictNo. 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 constitutionalamendments to the electorate, authorizing the Legislature to provide forworkmen'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. "Legislationproviding 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 legislationhas 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 necessarybecause 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. (214F.Supp. 870)..." The Court stated that the definition of "employer"in Section 1 of Article 8309would not exclude a naviqation district or other political subdivision, and that it was firstheld by the Courts that the compensation laws did not apply to cities

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and towns. (Citingauthorities). After discussingvarious 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 subscriberunder the Texas Workmen's CompensationAct with an old line legal reserve insurance company. The distinction in the cases on whether or not the IndustrialAccident Board has jurisdiction,as well as whether or not the common-law remedieswould 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 CompensationAct did not apply except asto the determinationof benefits, then the IndustrialAccident Boardwould 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 shouldbe made to the IndustrialAccident Board and all provisions of the Workmen's CompensationAct would be applicable. "This Court holds, therefore, that a navigation districtmay become a subscriber forworkmen's compensation insurance for its employees,provided it does so in an old line legal reserve company." (214F.Supp. 871).
We therefore answeryour question in the affirmative.

SUMMARY ------- Article 8308, Section 18, Vernon's Civil Statutes, applies to navigationaldistricts, water districts, and river a horities.

C. MARTIN y General of Texas

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Prepared by Jack Sparks AssistantAttorney 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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