Texas Attorney General Opinion: DM-326 Page: 1 of 7
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Office of the Attornep generall
btate of Wexas
ATTORNEY GENERAL March 2, 1995
Honorable Kim Brimer Opinion No. DM-326
Committee on Business & Industry Re: Whether the legislature constitutionally
Texas House of Representatives may establish a guaranty association for the
P.O. Box 2910 workers' compensation liabilities of political
Austin, Texas 78768-2910 subdivisions in which the membership would
be mandatory and as to which the funding
would come through assessments imposed on
the membership (RQ-742)
Dear Representative Brimer:
You have informed us that a subcommittee of the Committee on Business & In-
dustry (the "committee") has proposed a recommendation for the protection of the self-
insurance funds of political subdivisions and the insurance pools of political subdivisions.
Specifically, the subcommittee proposes that the legislature
createe a guaranty association specifically for public insurance pools
and public self-insurers separate from the Texas Property and
Casualty Insurance Guaranty Association. Membership in this as-
sociation would be mandatory. The association will pay claims in the
event that assets of an insolvent pool or self-insurer are insufficient to
You indicate that the membership would fund the guaranty association through
You evidently are concerned about the constitutionality of legislation such as that
proposed, should the legislature enact it. You therefore ask whether the Texas
Constitution prohibits the legislature from establishing a guaranty association for the
workers' compensation liabilities of certain political subdivisions in which the membership
would be mandatory and which would derive its funding through assessments imposed on
the membership. In our opinion, if the legislature were to enact the proposal you have
described, the resulting codification would violate article I, section 52(a) of the
From your description of the proposed guaranty association, we understand that it
would be similar to, although separate from, the Texas Property and Casualty Insurance
Guaranty Association (the "association"), created pursuant to section 6 of the Property
and Casualty Insurance Guaranty Act, Ins. Code art. 21.28-C. Section 6 requires every
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Texas. Attorney-General's Office. Texas Attorney General Opinion: DM-326, text, 1995; (https://texashistory.unt.edu/ark:/67531/metapth274135/m1/1/?rotate=90: accessed May 20, 2019), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.