JIM MAlTOX 

Attorney General 

Supreme Court Building 

P. 0. Box 12545 

Austin, TX. 78711. 2549 

51214752501 

Telex @lO/B74-1387 

Telacoplar 51214750266 

714 Jackson. Suite 7W 

Dallas, TX. 75202J5C8 

2141742-8944 

4S24 Alberta Ave.. Suite 180 

El Paso. TX. 799052793 

9151533-3464 

1901 Texas, Suite 700 

Houston. TX. 77W2-3111 

713l2235886 

696 Broadway, Suite 312 

Lubbock, TX. 794013479 

ew747.5239 

4309 N. Tenth. Suite B 

McAllen. TX. 7850%1885 

512tSS2.4547 

200 Maln Plaza. Suite 400 

San Antonio. TX. 79205.2797 

51212254191 

An Equal Opportunity/ 

Attlrmatlve Action Employer 

The Attorney General of Texas 

July 11, 1985 

Honorable Oscar 8. Hauzv Oninion I?o. 311-330 

Chairman 

Cosnuittee on JurisI’rudence 

Texas State Senate 

P. 0. Box 12428, Crpitol Station 

Austin, Texas 78711 

Re: Whether the state may provide telecommunication services 

to a private foundation 

Dear Senator Gauzy: 

You have asked whether article 601b. section 10.07, V.T.C.S., 

authorizes the Sl.a.te Purchasing and General Services Commission 

[hereinafter the “C~~~moission”] to contract with a private foundation 

for the utilization of the state telecommunication system. This 

statute provides: 

The cmmission may contract with each house of 

the legislature, legislative agencies, counties, 

cities, districts. and other political subdivisionr; and agencies not witbln the definition 

of ‘state agency,’ for utilization of the state 

telecommunications system. 

Section 1.02(2) of srticle 601b, V.T.C.S., defines “state agency” as: 

(A) my department, comsnission, board, office, 

or other agency in the executive branch of state 

gove-nt: created by the constitution or a 

statute of this state; 

(B) I:he Supreme Court of Texas, the Court of 

Criminal Appeals of Texas, a court of civil 

appeals, or the Texas Civil Judicial Council; or 

(0 ia university system or an institution of 

higher c:ducation as defined in Section 61.003, 

Texas Education Code, as amended, other than a 

public junior college. 

Section 1.02(2) outlines three classes of governmental entities. The 

entities included in section 10.07 are those governmental entities not 

included in the deE:tnltion of state agency under section 1.02(2). 

p. 1511 
Eonorablc Oscar 8. Mauzy - E'age 2 (JIG330) 

You inform us that the foundation is s nonprofit organization 

which provides education and care for multi-handicapped children. The 

foundation is 99 percent s’tate funded, and deals primarily with state 

agencies such as the Texas Department of Human Resources, the Texas 

Department of Mental Realtih and Mental Retardation, and the Texas 

Rehabilitation Commission. You also inform us that apparently 95 percent of the foundation's long distance costs are incurred in communicating with these state agencies. Finally, your letter advises that 

if the foundation could cut. the cost of long distance bills, it would 

save the state money. We assume that the foundation was organized 

under the Texas Ron-Profit Corporation Act. See generally V.T.C.S. 

art. 1396-1.01 et seq. The answer to your first question depends on 

whether the foundation is an entity within the meaning of section 

10.07 with which the commission may contract. 

Section 10.07 enumerates particular types of entities which are 

followed by the general term "agencies." V.T.C.S. art. 601b. 610.07. 

It is this term which is ambiguous and we must resort to rules of 

statutory construction. W'ten general words follow the enumeration of 

a particular class of perr;c,ns or things, the general words will be 

construed as applicable only to persons or things of the same general 

nature or class as those enumerated. This rule is based on the 

supposition that if the leE,islature had intended the general words to 

be used in an unrestricted sense, they would have made no mention of 

the particular classes. Seer Farmers' & Mechanics' Rational Bank v. --- 

m, 137 S.W. 1120 (Tex. 1911); see also 53 Tex. Jur. 2d 5155 

Statutes specific teTm8 (1964). precz;;i i;hlr term "agencies" is restricted by the 

It is clear that all cf the enumerated entities in section 10.07 

have some form of governslental status under the constitution and 

statutes of this state. Hauses of the legislature, counties, muoicipalities and districts are created and authorized by the Texas Constitution. See Tax. Const. art. 

art. XI, 01(counties) ; art. 

III, I 1 (houses of the legislature); 

XI, 564 6 5 (municipalities); srt. XVI, 

$59 (special purpose districts); art. IX. 514-11 (special purpose 

districts). Legislative agencies are created by the statutes. See 

V.T.C.S. art. 542913, 91 (leSJ.slative council); art. 5429c (legislative 

budget board); see generall:! art. 5429g. I1 (definition of legislative 

agency). Therefore, we munt ascertain whether the foundation has a 

governmental status for the purposes of section 10.07. 

One of the main purpcses for the creation of the state telecossnunications system was to reduce the cost of telephone services to 

the state government. Cf. 'J.T.C.S. art. 601b. 610.03. Since 99 percent of the foundationFfunds are received as a result of governmental contracts with state agencies and other governmental sources, 

you suggest that it would be reasonable to conclude that the organisatlon's utilization of the state communication system would have the 

p. 1512 
. 

Eonorable Oscar Il. Gauzy - Pqle 3 (~~-330) 

effect of reducing gwemmer.tal spending. Rowever, such a conclusion 

would have the effect of allcwing every orgsnization receiving public 

funds to utilize the state telecommunications system. This practice 

would, however, be contrary t,o the expressed limiting words in section 

10.07. The statutory language is the best evidence of the legislative 

intent. Sabine Pilots Assn. v. Lykes Brothers Steamship, Inc., 346 

S.W.2d 166 (Tax. Civ. App. -Austin 1961, no writ). 

The receipt of public funds is sufficient to subject the foundation to the Open Records act. See V.T.C.S. art. 6252-176, 5(2)(1)(F). 

We believe, however, that ':bisfact is insufficient to confer upon 

this private organization a governmental status of the class within 

the meaning of section 10.07. 

The foundation provid'as a vital service to the state. The 

foundation operates six of 43 licensed residential treatment centers 

in Texas. Because the Texas Department of Buman Resources [TDBRI is 

named managing conservator J:E several thousand children each year by 

the state courts, the foundation's facilities are among those used by 

TDHR as a placement source. Although the foundation assists in 

fulfilling this public purpose, it is a private nonprofit corporation 

created for a orivate. as dj.stinauished from a surely public. purpose. 

See Miller v: David; 150 S.Wr2d 973 (Tex. -1941j.- It ~1s nit a 

Ge-ntal agency. Cf. Un:Lversity Interscholastic League v. Payne, - -- 

635 S.W.2d 754, 756-57, n.4 (Tex. App. - Amarillo 1982, writ dism'd). 

Accordingly, we conclude that the foundation is not an entity 

with which the Commission may contract for the utilisation of the 

state telecommunications syllt:em. 

You also ask whether, regardless of section 10.07, the Commission 

=Y "nonetheless contract with the foundation for utilization of the 

state telecowaunications syl;t:em." We think not. The State Purchasing 

and General Services Commisc;ion is an administrative agency created by 

statute. V.T.C.S. art. 601'b et seq. The Supreme Court has held that 

where power is granted to zir. administrative agency and the method by 

which it is exercised is I'rescribed. the prescribed method excludes 

all others and must be fall&led. Cobra Oil & Gas Corp. v. Sadler, 447 

S.W.2d 887 (Tex. 1968). Section 10.07 is the onlv authority by which 

the Commission may contract: with the foundation and for the ieasons 

stated above, we conclude that the Commission may not contract with 

the foundation for the ut:t:Lization of the state telecommunications 

system. 

SUMMARY 

Article 601b, section 10.07, V.T.C.S.. does not 

authorize the State Purchasing and General 

Services Commissl.on to coutract with a private 

p. 1513 
Eonorable Oscar 8. Gauzy - Page 4 (JM-330) 

nonprofit corporation for the utilization of the 

state telecomunic~ations system. 

Very 

_I 

truly your 

1 

# 

/ A-4 

Attorney General of Texas 

TOM GREEN 

First Assistant Attorney Gewral 

DAVID R. RICHARDS 

Executive Assistant Attorne], General 

ROBERT GRA-i 

Special Assistant Attorney General 

BICR GILPIN 

Chairman, Opinion Committee 

Prepared by Tony Guillory 

Assistant Attorney General 

APPROVED: 

OPINION COHMITTEE 

Rick Gilpin, Chairman 

Colin Carl 

Susan Garrison 

Tony Guillorg 

Jim noellinger 

Jennifer Riggs 

Nancy Sutton 

p, 1514