^ . 

OlRNEY ENEKAL 

OIFTE~AS 

October 29, 1949 

Hon. Ball Ii. Logan, Chairman 

State Board of Control 

opinion No. v-941 

Aus tin, Texas Re: Authority of the Board 

of Control to handli~ 

utility contracts for 

eleemosynary inatitu; 

tiona, In* titiltions of 

higher learnlhg atid 

State departments. 

~Dear Mr. Logan: 

you have requested an opinion concerning the authority of the Board of Control to handle utility contracts. 

for the elebmosynary institutions not under its supervision, ’ 

the Institutions of higher learning and the State departments. 

In answering, we assume your question is whether 

the services available from public utilities must be purchased by the Board of Control. We further assume that you 

referonly to power, light, telephone, gas, water, sewer,~ 

and similar services provided by connection with a community 

8ystem and which may be obtained from only one source. 

Considering first the eleemosynary instltutlons 

and the higher educational institutions It is our opinion 

that the statutes do not require that such utility services 

be purchased by the Board of Control. 

The purchasing power of th6 Board of Control is 

governed by Chapter 3, Title 20, V.C.S., which creates the ‘~ 

Board’s purchasing division. When taken together, the statutes of this chapter point to the one idea: the urchaae 

lies b comcetitive biddin 

%~o+%le purchase +* 0 

Provis iTihor~ 

supplies In this manner. Included are provisions for a mailing list, letting of the 

contracts after advertising, sealed bids and their requl-, 

sltea, rejection of certain bids by the Board, equal bids, 

separate bids, opening of bids and the requirement of a ~~ 

bond to accompany bids. Construing those statutes of Chapter 3 together, the purchasing power of the Board of Control Is limited to only those items which are the proper 

subject of competitive bidding. 
A public utility 

under a frrinchise with the 

controlled. These factors 

(v-941) ,. 

;.,. -~',,: 

> ,, I:,,

is usually a monopoly 0psratUg 

type of rervlce defined and rater 

make purchasr of public Utility 

aervlces on the basis of competitive bids inpracticable. 

The courts have recognized these conditions and have’held 

. 

AUP. 1921) e 

Public utility services are not “6upplles” with1~ the scope of th&statutes and therefore the Board~of 

Control would not be required to make such purchases. 

, 

We have not, in the absence of a specific queutlon, considered the inclusion within a public utlllty con- 

;y” of items other than the primary rervlce to be iurnlsh-’ 

Generally speaking, such a contract should cover nothing 

ax&noms: to the furnishing of service. 

You have further inquired as to the Board of CmArol’s authority to handle utllity,contracts for the State 

departments. The Board is designated as. custodian of public buildlngs~bg Article 665, V.C.S. Therefore, utility 

service used in connection vith the maintenance of buildings In the custody of the Board should be procured by tlm 

Board. 

SUMMARY 

The Board of Control is not required to let 

,mblic utility contracts for the eleemosynary 

institutions not under Its suparvlsio;t;;iEo8e 

of’ instltutlons of higher learning. 

sCrvice used in connection with the tilntenance 

~; of buildings in the custody of the Board of 

.’ 

. 
: 

. 

Hen, Hall B. Logan, page 3 (v-941) 

Control should be procured by the Board. 

Yours very truly, 

ATTORHEY CRUiERAL OF THXAS 

By -i&m~+t.=&&& 

'L. ~hoaas E. Taulbee 

Assistant 

TET:rt:gw 

APPROVEI) 

FIRST ASSISTABT 

ATTORREY GFiXiBRAL