Texas Attorney General Opinion: GA-31 Page: 2 of 3
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The Honorable Jeri Yenne - Page 2
General Opinion No. JM-852 (1988) that a state institution of higher education was not a business
entity as defined by section 171.001(2). See Tex. Att'y Gen. Op. No. JM-852 (1988) at 3. The
opinion pointed out that the statutory definition ofbusiness entity specifically describes several types
of endeavors that constitute profit-making activities, such as providing goods, services, or financing.
See id. It construed the phrase "or any other entity recognized by law" in the definition of business
entity according to the rule ofejusdem generis. See County ofHarris v. Eaton, 573 S.W.2d 177, 179
(Tex. 1978). This phrase, a general term following specific words in a statutory enumeration, was
construed to include only items similar in nature to those enumerated by the specific words. See
Tex. Att'y Gen. Op. No. JM-852 (1988) at 3. The opinion concluded that a state university was not
a business entity within section 171.001(2) of the Local Government Code because it was a public
rather than a private entity.
Attorney General Opinion DM-267 (1993) relied on Attorney General Opinion JM-852 to
conclude that a city was not a business entity within Local Government Code section 171.001(2).
See Tex. Att'y Gen. Op. No. DM-267 (1993) at 2. A city is a political entity or subdivision that
carries out local governmental purposes, rather than a private entity.
We conclude on the basis of Attorney General Opinions JM-852 and DM-267 that a school
district is not a business entity within Local Government Code chapter 171. Under Texas law,
school districts are public corporations of the same general character as cities, towns, and municipal
corporations. See San Antonio Indep. Sch. Dist. v. McKinney, 936 S.W.2d 279, 283 (Tex. 1996).
Accordingly, employment with the Alvin Independent School District is not an interest in a business
entity for purposes of Local Government Code chapter 171, and a member of the Alvin City Council
who is a school district employee is not barred by chapter 171 from discussing and voting on issues
involving the school district that come before the city council.
In view of our conclusion that a school district is not a business entity as defined by Local
Government Code section 171.001(2), we need not answer your questions about the further
application of chapter 171 to the city council member.(GA-0031)
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Texas. Attorney-General's Office. Texas Attorney General Opinion: GA-31, text, March 6, 2003; (https://texashistory.unt.edu/ark:/67531/metapth274926/m1/2/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.