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OlRNEY ENEKAL OIFTE~AS

October 29, 1949
Hon. Ball Ii. Logan, Chairman State Board of Control opinion No. v-941 Austin, Texas Re: Authority of the Board of Control to handli~ utility contracts for eleemosynary inatitu; tiona, In*titiltions of higher learnlhg atid State departments. ~DearMr. 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, weassumeyour question is whether the services available from public utilities mustbe purchased by the Board of Control. Wefurther assume that you referonly to power, light, telephone, gas, water, sewer,~ and similar services provided by connection with a community 8ystem andwhich maybe obtained from only one source.

Considering first the eleemosynary instltutlons and the higher educational institutions It is our opinion that the statutes donot require that such utility services be purchased by the Board of Control.

Thepurchasing power of th6Board of Control is governed byChapter 3, Title 20, V.C.S., which creates the ‘~ Board’s purchasing division. Whentaken 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 amailing 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 3together, the purchasing power of the Board of Control Is limited to only those items which are the proper subject of competitive bidding.Apublic utility

under a frrinchise with the controlled. These factors 

### (v-941) ,. ;.,. -~': ,,,. : >,, I:,,, is usually amonopoly 0psratUg type of rervlce defined andrater makepurchasr of public Utility aervlces onthe basis of competitive bids inpracticable. Thecourts have recognized these conditions andhave’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 makesuch purchases.

, Wehave 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.

Youhave further inquired as to the Board of CmArol’s authority to handle utllity,contracts for the State departments. TheBoard 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

TheBoard 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, 

### ATTORHEYCRUiERAL OFTHXAS
By -i&m~+t.=&&& 'L. ~hoaas E. Taulbee

Assistant TET:rt:gw APPROVEI)

FIRSTASSISTABT ATTORREY

GFiXiBRAL