March 12, 1953 

Hon. R. C. Lannlng Cipinlon No. S-18 

Chairman 

State Board of Control Re: !Pwo queetions relating to 

Austin, Texas the admlniatratlon of the 

school~bue purchasing law 

Dear Sir: 

;zoihe State Board of Con- 

. 

We refer to your request for an opinion of 

this office which, in eubstance, states the following: 

Certain questions have arisen concerning the administration of the school bus 

purchasing program created by Section 3 of 

Article V, Senate Bill 116, Act@ 51st Deg., 

R.S. 1949, ch. 334, p. 638 (Art. 634(b):V. 

C.S.) and Section 1 of Senate Bill 90, Act8 

52nd Leg., R.S., 19% ch. 198, p. 325, 

creating the School Bus Revolving Fund, (Art. 

2922-15, Sec. 2, V.C.S.) 

Under present practices within the 

Board of Control, requisitions from local 

school districts for school buses are sent 

to the Board of Control, and then the Board 

of Control purchases from the lowest of competitive bidders the buses desired. 'The 

local school must certify that it has encumbered sufficient otherwise unencumbered funds 

to pay for the buses as It requisitions 

them. The Board of Control always has outstanding purchase requests for school buties 

in excess of the $25O,OOO.OO deposit known 

as the School Bus Revolving Fund. As the 

statements from the bus manufacturers come 

due with the Board of Control they are always paid by the collections received by the 

Board of Control from the local school dlstrick? when It delivers the buses to them. 

At no time has the School Bus Revolving Rund 

shown a balance lower than $200,000.00. 
Hon. R. C. tinting, page 2 (s-18) 

You ask the following questions: 

1. May the State Board of Control 

legally write purchase orders for school 

buses totalllng more than $25O,OOO.O0 at 

any one time? 

2. May the Board of Control legally 

award an annual ore semiannual contract for 

bua bodies and bus ohasais showing an 

estimated number of units only and guaranteeing no mlnlmum number? 

Public officers may make only such contracts 

as they'are authorized by law to make.' Fort Worth 

Calvary Club v. Sheppard, 125 Tex. 339, b3 S.W.2d 660 

. 1935) ~--. . Seotion 44 of Article III of the Constitution 

of Texas prohibits the Legislature appropriating state 

money to any Individual unless at the very time the appropriation Is made there Is already in force some preexisting valid law constituting the claim appropriation 

Is made to pay a legal and valid obligation against the 

State. By legal obligation la meant such an obligation 

as would form a basis for a judgment against the State 

in a court of competent jurisdiction In the event the 

Legislature should permit It to be sued. Fort Worth 

Calvary Club v. Sheppard, supra. Public officers are 

limited In theirrlaht to contract to the amount of 

available appropriation. Nichols v. State, 32 S.W. 452 

(Tex.Clv.App., 1895:, error ref.); State v. Haldeman, 

163 S.W. 1020 (Tex.Clv.App. 1913, error ref.); ForE 

Worth Calvary Club v. Sheppard, supra. 

Section 2 of Article 2922*15, Vernon's Civil 

Statutes, as amended by Chapter 198, Acts of the 52nd 

Legislature, Regular Session, 1951, page 325, provides 

that school buses purchased through the State Board of 

Control shall be paid for by the State Board of Control 

out of the School Bus Revolving Fund. Therefore, contracts for the purchase of school buses through the 

Board of Control create an obligation against the State 

to be paid for out of the School Bus Revolving Fund. 

Fort Worth Calvary Club v. Sheppard; Nichols v. State; 

State v. Haldeman, supra. It Is our opinion that a 

contract creating an obligation in excess of the amount 

of money available In the School Bus Revolving Fund at 

the time the contract is made would constitute a debt 

In violation of Section 49 of Article III of the Constltution of Texas. You are therefore advised that the 
Hon. R. C. Lanning, page ,3 (s-18) 

State Board of Control,does not have authority to write 

purchase orders for school buses totaling more than Is 

available In the School BusRevolvIng 'Fund at the time 

the purchase order Is made. 

Concerning your sec'ond ~queatlon, you further 

ask if the Board of Control may legally award an annual 

or semiannual contract for bus bodies and bus chassis 

showing an estimated number of units only and guaranteeing no minimum number. Unless there Is a legal 

reason for doing so a contract will not be held invalid. 

Charles Scrlbner's Sons v. Marrs, 114 Tex. 11, 262 S.W. 

722 (1924) 

the 

In the case just cited our Supreme Court 

passed on validity of a contract similar to the contract involved in your question. The contract In that 

case was made between the Texas State Textbook Commission and a publisher. The contract obligated the State 

to purchase all the text books on a particular subject 

from the publisher as the local school boards should 

requisition them. 

Th,e Constitution is silent as to the length 

of term for wh.ich a contract may be made by the State. 

The only provisions of the Constitution that might affect the term are those which provide that no debt may 

be created by or on behalf of the State, and that no 

appropriation of money may be made for a longer term 

than two yea~rs. However, obligationsthat run current 

with revenues z,re not debts within the contemplation 

of th@ Constitution. Charles Scribner's Sons v. Marrs, 

* McNeal 'v, City of Waco, 

'I';& D 

8 9 Tex. 83, 33 S.W. 322 

Payment for the bus bodies and for the bus 

chassis is to be made out of the School Bus Revolving 

Fund as they are purchased. The obligation of the contract is not to buy a fixed number or amount of bus 

bodies or bus chassis, but only so many as are requlsltioned by the schools of the State. Liability is fixed 

only for such amounts as are requisitioned by the 

schools, The number of buses, chassis and bodies purchased for any period is wholly within the control of 

the local authorities and of the Board off Control. 

It is therefore the opinion of this office 

that the Board of Control may legally award an annual 

or semiannual contract for bus bodies and bus chassis 

showing an estimated number of units only and guaranteeing no mirLimum number. 
Hon. R. C. Lannlng, page 4 (s-18) 

SUMMARY 

The State Board of Control does not 

have authority to write purchase orders 

for school buses totaling more than Is 

avallable'ln the School Bus Revolving Fund 

at the time the purchase order Is made. 

The State Board of,Control may legally 

award an annual or semiannual contract for 

bus bodies and bus chassis showing an estlmated number of unite only and guaranteeing 

no minimum number. 

Yours very truly, 

APPROVED: 

J. C. Davis, Jr. 

County Affairs Division 

JOHN BE3 SHEPPERD 

Attorney General 

WI1118 E. Greaham 

Reviewer 

Robert S.~ Trottl 

First Assistant 

BY 

P--- John Reeves 

Assistant 

John Ben Shepperd 

Attorney General 

JR:am