In Attorney General Opinion KP-0532, the Texas Attorney General concluded that while a school district’s board of trustees generally has the authority to lease district-owned property, that authority does not extend to permitting activities prohibited by state law. The opinion arose from a request by Christina Sanchez, El Paso County Attorney, regarding whether the Socorro Independent School District could lease stadium and event facilities to third parties for concerts and other special events where alcohol would be sold.
The opinion focused on Texas Education Code Section 37.122, which generally prohibits the possession and sale of alcoholic beverages on the grounds or in a building of a public school. The Attorney General determined that a short-term lease granting a private entity exclusive use of a school facility does not change the facility’s legal status as school property. As a result, a school district cannot rely on a lease agreement to authorize alcohol sales or possession on property that otherwise qualifies as the grounds or buildings of a public school.
The opinion also warns of potential contractual consequences. According to the Attorney General, a lease provision that authorizes conduct prohibited by law risks rendering the agreement void and unenforceable. In such circumstances, a school district could lose the ability to enforce key provisions of the lease, including payment obligations. The opinion therefore concludes that, although school districts possess broad authority to lease property, they may not use leasing arrangements to circumvent statutory restrictions on alcohol sales at public school facilities.
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