### THEAYTORNEY GENERAL

OFTEXAS

Honorable Geo. R. Sheppard Comptroller of PublicAccounts Austln, Texas

Dear Mr. Sheppard: OpinionNo. o-5565 Re: Whether or not Senate Bill No. 266, Regular Session, 48th Legislature,with respect to rentals, applies to storagerentals on automobiles and other commoditiesmade upon a monthly basis.

You request a constructionof SenateBill No. 266 of the 48th Legislature,Regular Session,governing rentals with special respect to storage rentals on automobilesand other commodities made upon a monthly basis.

Sections 1, 2 and 3 of SenateBill No. 266, are as follows:

"Section1. Hereafter all departments and agencies of the State Government,when rental space is needed for carrying on the essential functions of such agencies or departments of the State Government, shall submit to the State Board of Control a request therefor, giving the type, kind, and size 

### ofbuildingneeded, togetherwith any other necessary description, and stating the purpose forwhich itwill be used and the need therefor.

"Sec. 2s The StateBoard of Control, upon receipt of such request, and if the money has been made available to pay the rental thereon, and if, In the discretion of the Board such space is needed, shall forthwithadvertise in a newspaper,which has been regularly published and circulated in the city, or town, where such rental space is sought, for bids on such rental space, for the uses indicated and for a period ofnot to exceed two years. After such bids have been received by the StateHonorable Gee, H, Sheppard - page 2 o-5565

Board of Control at its principal office in Austin, Texas, and publicly opened, the award for suchrental contractwill be made to the lowest and best bidder, and upon such other terms as may be agreedupon. The terms of the contract, togetherwith the notice of the award of the State Board of Controlwill be submitted to the Attorney General of Texas,who will cause to be prepared and executed in accordancewith the terms of the agreement, such contract in quadruplicate; one of which will be kept by each party thereto, one by the State Board of Control, and one by theAttorney General of Texas. The parties to such contract will be the department or agency of the governmentusing the space as lessee and the party renting the space as lessor.

"Sec. 3. Within thirtydays after the effectivedate of this Act, all departments and agencies of the State Government at this time leasing or renting space from any person, firm, or corporationwhomsoever, will cause to be prepared and delivered to the State Board of Control in Austin, Texas
a copy of any written rental or lease agreement now in force and current, or any statement of any oral understandingupon which any lease or rental public funds are being expended, if such action has not already been taken."

It is the opinion of this department that the Bill does not apply to situations such as thosementioned by you.

The subject -- the essence -- of SenateBill 266 Is the "rentalspace"when needed by an agency or department of the State government. It contemplatesnot only the rental contract but It contemplatesthat the subjectmatter of the contract -- the spaceneeded --be the space such as that of a building, room, office, or other quarters, to be occupiedby the agency or department, or Its employees, in the carrying 'onof an essentialgovernmental function. In otherwords, the subjectmatter of the rental, It is contemplated,will be under the controltl for tke time being, of the agency or departmenth as the term rental is generallyunderstood. The word "rental Is one of well-understoodmeaning, and presumptively itwas soused by the Legislature. Furthermore, this construction comportswith the general purpose of theAct.Honorable Geo. H. Sheppard - page 3 o-5565

Now, the so-calledrental for storage of automobiles and other commodities isnot a rental at all,within the meaning of the statute. Itdoes not contemplate the taking over of any specificbuildlng, room, or spacewhatsoever,but on the other hand is in its nature a storage contract -- something entirely dlfferent from the ordinary rental contract, A storage contract is one for serviceby the warehouseman, or other owner of storage space,and moreover it does not contemplate any particular room or space --merely storage.

It is conceivable that such a contract for space could take the form of a rental of space,within the meaning of the statute. Thus, where any department or agencywas In need of space for storingrecords, papers, files, and the like, and the things to be thus storedwere so numerous or voluminous as to make a mere contract of storage inadvisable,and a building, room, or definite space therefor preferable, such an arrangement would be a rental, within suchnecessity would present a fact situationto be determinedby the circumstances. We can not be definite at this point beyond the mere statementof the general principledetermining the nature of the rental.

Very truly yours

ATTORNEY GENERAL OF TEXAS

By s/Ocle Speer Ocie Speer Assistant

OS-MR-WC

APPROVED SEP 1, 1943 s/Gerald C. Mann ATTORNEY GENERAL OF TEXAS
Approved Opinion CommitteeBy s/BWB Chalrman