HonorableWard W. Markley

Jasper CountyAttorney County Courthouse Jasper, Texas Opinion No. M- 350
Re: Whether a state agency may sell surplusproperty directly to a county under provisionsof Article 666, Vernon’s Civil Statutes, or Article 1722a, Vernon's Dear Mr. Markley: Penal Code.

By recent letter, you have requestedan opinion from this office regarding the above statedmatter. We quote, In part, from your letter as follows:

"The Parks and Wildlife Agency has a surplusboat in our County which they would like to sell to the County if at all possible, and I have been asked to obtain an opinion In this connection.
"I find that under Article 666, Vernon's AnnotatedCivil Statutes Section 4(a) One State Agency may transfer or negotiatewith another State 'Agency for the transferof any surplusproperty.
. . . "I am unable to find where a State Agency may negotiatedirectly with a County for the sale of surplusproperty without first seeking competitive

bids. If there is some way, or some other Statute by which this can be done, I will appreciatevery much your opinion in this connection." Subsequent to your letter requestingan opinion quoted, in part, above, we have received another letter from YOU, which we quote, in part, as follows:

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Hon. Ward W. MarkleY, Page 2 (M-350)

'In my request for an opinion on the disposal of surpluspropertyby the Qame and Fish Commissionto the County, by letter dated February 5th, I am wondering If there **is** a possibilitythat this transfer of this boat could be made under the Water Safety Act?" Article 666, Vernon's Civil Statutes,controlsthe disposition of surplusor salvage state property. Section 4 of Article 666 Is quoted, In part, as follows:

"Sec. 4. (a) All state agencies which determine that they have surplus property shall Inform the Board /the Board of Control7 of the kind, number, loFatlon, condition,a-d original cost or value and date of acquisition of the property. The Board may inform other state agencies of Ehe existence,kind, number, location and conditionof any surplus property. Any state agencywhen so informedmay negotiate 

### a ret **1 W**  agency transfer of the property but shall inform the Board of its Interest In order that the property will not be sold or disposed of before a transfermay be made. If a transfer of surplus property **is** made the agencies taking part in the transfer shallmutually agree on the value of the transferredpropertyand shall report the value to the Comptroller. The Comptroller shall credit and debit their respectiveappropriations and adjust the state Inventoryrecords to show the transfer if inventoried property is transferred. Transfers of surplusproperty shall be reported to the Board but the consent of the Board shall not be required for any transfer. After surplus property **is** reportedto the Board it shall not be sold by the reportingagency unless written authority to sell is given by the Board. "(b) If no state agency desires to receive any propertyreportedas surplus the Board shall dispose of the propertyand recover for the state the maximum money value possible. The Board may by rules and regulationsestablish proceduresfor the sale and dispositionof surplus property,buk shall always seek competitivebids in all sales. (Emphasisadded.)
-1739-Hon. Ward W. Markley, page 3 (M-350)

We agree with your analysis of the above quoted section to the effect that a county Is not empoweredtherein to negotiatedirectlywZth or purchase state surplusproperty from a state agency.

Your second question necessitate5an analysis of Article 1722a,Vernon's Penal code, referred to as the "Water Safety Act."

Section 4 of Article 1722s Is the only provision of the Act which may relate to the question at hand. This section concerns the necessity of owners of motorboatsto acquire a registrationnumber from the Texas Highway Departmentbefore operatingupon waters of this State.

However, the boat in question **Is** exempt from the provisions of registration under Section 4 by Subsection (3) of Section 8 of Article 1722a, Vernon's Penal Code. section (3) of Section 8 Is quoted as follows: Sub-

"Section8. A motorboat shall not be required to be numbered under the Act if it is: "(1)

. . , "(2)

. . . "(3) A motorboatwhose owner is the United States,a state or subdivisionthereof." (Emphasisadded,) The SupremeCourt of Texas In City of Stamford v. Ba;lard, 162 Tex. 22, 344 S.W.2d 861 (1961), stated at page : "Section4 of the Water Safety Act, Article 1722a, Sec. 4, Vernon's Ann.Pen.Code**is** a reglstration statuteand provides for numbering of motorboats,registrationthereof and the issuance to the owner of the boat of a Certificateof Number stating the number awarded to the motorboat and the name and address of the owner. In the event of the sale of the boat, provision is made for the transfer of the Certificateof Number to the new owner." Based upon a review of Article 1722a,Vernon's Penal Code, and the above cited case, it **I.5** our opinion that Article -1740-.

Hon. Ward W. Markley, page 4 (M-350)

1722a does not authorize transfer of the boat in questionby the Parks and Wildlife Departmentto your county.

We find no other statute or authorityby which a state agency may negotiate or sell state surplusproperty directly to a county other than through competitivebids pursuant to Section 4(b), Article 666. SUMMARY Article 666, **Vernon ’** **s** Civil Statutes,doe8 not authorize a state agency to negotiateor sell state surpluspropertydirectly to a county, but such propertymay only be sold by competitive bids under Article 666, Sec. 4(b). The "Water Safety Act," Article 1722a,Vernon's Penal Code, does not authorizea state agency to transfer surplus state propertyto a county.

Preparedby James C. McCoy AssistantAttorney General
APPROVED: OPINION COMMITTEE
Kerns Taylor, Chairman George Kelton, Vice-Chairman Joseph H. Sharpley FieldingEarly Charles Parrett Arthur Sandlin
W. V. GEPPERT Staff Legal Assistant

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