. .

NE OF TEXAS

AUSTIN. %-,CXAS 78111

November 25, 1969

Honorable Harvey Davis Executive Director Texas State Soil and Water ConservationBoard 1018First National Building Temple, Texas 76501 Opinion No.M-521

Re: Texas Torts Clalms Act - Insurancepurchases by Soil ConservationDistricts from State appropriatedmoney; power to tax to pay claims; and personal liability of Dear Mr. Davis: District Directors

You have requested our opinion on behalf of the State Soil and Water ConservationBoard, and its subordinatedistricts thereunder, seeking the answer to certain questions under the Texas Torts Claims Act (Chap. 292, Acts of the 61st Leg., R.S., 1969,page 874, effective January 1, 1970, codified as Article 6252-19,Vernon's Civil Statutes). Your central state agency and any local soil conservationdistrict created thereunder can act only in a governmental capacity so as to carry out soil conservationpractices and functions in cooperationwith the Federal Government.

Your firs,t

question asks whether your state agency or districts created under the Soil ConservationAct, may purchase insurance covering liabllitlesof the state agencies or districts under the Texas Torts ClaimsAct frommoney received from the State or earnings from money received from the State? The answer to this question is "No" if payment is to be made out of money appropriatedby the 61st Legislature.
There is a prohibition against expenditure of any such appropriated sums of money in the currentbiennium for the purchase of insurance to cover claims under the Torts Claims Act (GeneralAppropriationsAct, H.B. 2, 6lst Leg., 2nd C.S., Art. V., General Provisions, Sec. 57).

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The second question involves thematter of whether a State Soil and Water ConservationDistrict can levy ad valorem taxes for the payment of a judgmentunder the Texas Torts Claims Act. ment, The District cannot levy a tax to pay such judgwithout a favorable election therefor. By the provisions of the Texas ConservationAmendment (Art.XVI, Section 59, (c)Constitution of Texas), a soil and water conservation district Is a reclamation district and, therefore, is subject to the proviso that:

...theLegislature shallnot authorize the issuance of any bonds or provide for any indebtednessagainst any reclamationdistrict unless such proposition shallb f submitted to the qualifiedproperty tzxp$?ig voters of such district and the proposition adopted." (Emphasisadded.)

We duly note that uf;lder Section 2 (l),your agency and each local district are units of government',and that Section 11 of the Torts ClaimsAct, provides for taxingpower to districtswhich have a final judgment rendered against them under saidAct. This provision insofaras it authorizes a tax levy without a prior vote of the voters of such district and insofaras it applies to districts createdpursuant to the provision of Article XVI, Section 59 of the Constitution of Texas is inapplicable,as suchwould otherwise be in violation of the last proviso of Subsection (c) of said ConservationAmendment.

Your third and final question relates to whether local soil conservationdistrict directors can become personally liable for not being able to satisfy a judgment should one arise under the Texas Torts ClaimsAct, Any functionsperformed by soil conservationdistricts, or by your state agency, are functions governmental in nature; such district or agency ha:.no Proprietary functions. Consequently, the directors of the SOU ConservationDistricts, or the personnel in your agency, would not be personally liable as individualsfor any such claim brought against the State of Texas. Section 14, Subsection (7) and Section (15), of the Texas Torts ClaimsAct. Your attention is further invited to the provisions thereinwhich leave the voluntarymethods of payment or non-payment of such a judgment by means of taxation, or by appropriation, to the "discretion" of thosewho govern your agency or the particular local soil conservationdistrict involved.

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Hon. Harvey Davis, page 3 M-521)

SUMMARY -------

The GeneralAppropriationAct for the 1969-70 biennium prohibits purchase by soil and water conservationdistricts of any insurance covering liabilitiesunder the Texas Torts Claims Act with appropriatedmoney. District directors are not personally liable under the Texas Torts ClaimsAct for failure to provide a method for payment of a final torts claims judgment.
Soil and water conservationdistricts cannot levy ad valorem taxes for the payment of a judgment indebtednessunder the Texas Torts ClaimsAct without prior approval in an election by the voters of the districtpursuant to Article XVI, Section 59(c), Constitution of Texas.

Atto#ey General of Texas Preparedby Roger Tyler Assistant Attorney General

APPROVED: OPINION COMMITTEE

Kerns Taylor, Chairman George Kelton, Vice-Chairman
Jim Swearingen Houghton Brownlee Jack Sparks Malcolm Quick

MEADE F. GRIFFIN Staff Legal Assistant

NOLA WHITE First Assistant
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