Untitled Texas Attorney General Opinion ( 1982 )


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  •                                    The Attorney         General of Texas
    February 3, 1982
    MARK WHITE
    Attorney General
    Supreme Court Building
    P. 0. Box 12543                  Honorable Henry Wade                   Opinion No.MW-439
    Austin, TX. 73711                Criminal District Attorney
    51’2/475.2591                    Condemnation Section                   Re:     Competitive    bidding
    Telex 9101874-1387
    6th Floor, Records Building            requirements
    Telecopier    5121475-0256
    Dallas, Texas   75202
    1807 Main st., suite 14w         Dear Mr. Wade:
    Dallas, TX. 75201
    21417428944
    You ask whether article 1659a. V.T.C.S., or article 2368a.
    V.T.C.S.. require four categories of items to be obtained through the
    4824 Alberta   Ave.. Suite 160   competitive bidding process. The first category consists of:
    El Paso. TX. 79905
    9151533-3434                              Certain materials and supplies, other than voting
    machines, and the printing of those materials and
    1220 Dallas Ave., Suite 202
    supplies which are required in the conduct of an
    Houston, TX. 77002                        election whether or not procured by the 'election
    713/6500888                               board' or 'the authority holding the election.'
    i.e., the county via the commissioners court.
    SW Broadway, Suite 312
    Lubbock, TX. 79401
    Article 1659a provides in pertinent part as follows:
    8081147-5233
    In all counties having a population of...
    (800,000) or more... supplies of every kind. road
    4309 N. Tenth. Suite B
    and bridge material, or any other material, for
    McAllen, TX. 78501
    51218824547                               the use of said county, or any of its officers,
    departments, or institutions, must be purchased on
    competitive bids, the contract to be awarded to
    2M) Main Plaza. Suite 400                 the   party who.    in   the   judgment   of   the
    San Antonio, TX. 78205
    512/22541Bl
    Commissioners Court, has submitted the lowest and
    best bid....
    An Equal OppOrtUnityI                 Although Attorney General Opinion R-1262 (1978) incorrectly
    Affirmative Action Employer      states that this statute applies only where the amount of purchase
    exceeds $2000 (merely the "advertising" provisions so provide). it
    furnishes support for our conclusion that the items you describe
    constitute "supplies" or "materials" within the meaning of article
    1659a.
    p.   1508
    Honorable Henry Wade - Page 2   (Mw-439)
    Y
    .
    Article 7.07 of the Election Code provides that:
    In general and special elections for election
    of officers who are regularly elected at the
    general election provided for in Section 9 of this
    code, the county judge, county clerk. sheriff, and
    county chairman of each political party which is
    required to nominate candidates by primary
    election shall constitute a board, a majority of
    whom shall act to provide the supplies necessary
    to hold and conduct the election. In all other
    elections held by the county, the board shall be
    composed of the county judge, county clerk and
    sheriff. As used herein, the words 'supplies'
    means all supplies and equipment needed for the
    election, including, without limitation, ballot
    boxes, voting    booths,   guard rails, voting
    machines,. and other voting equipment.... The
    board shall file with the commissioners court a
    written report of their action as to supplies
    furnished by the county, giving a detailed
    statement of the expenses incurred in procuring
    such supplies. (Emphasis added).
    Cf. Patten v. Concho County, 
    196 S.W.2d 833
    (Tex. Civ. App. - Austin
    1946, no writ) (road machinery not "supplies"); Attorney General
    Opinion H-977 (auditor's duties). Article 7.12 of the Election Code
    requires counties to pay for these election supplies, except in
    municipal and school elections.
    Article 2359, V.T.C.S., provides:
    The commissioners court shall advertise, at least
    once in every two years, for sealed proposals to
    furnish blank books, legal blanks, stationery and
    such other printing as may be required for the
    county for the term of such contract, and shall
    receive separate bids for the different classes
    hereinafter designated.... (Emphasis added).
    Article 2362, V.T.C.S.. designates these "different classes":
    The stationery shall be divided into four classes:
    ...Class 'D' poll tax receipts and all election
    supplies of whatever nature and description. not
    furnished by the State.... (Emphasis added).
    See also V.T.C.S. art. 2368a (county contracts of $3,000 or   more).
    p. 1509
    Honorable Henry Wade - Page 3 (MW-439)
    Statutes dealing with the same subject matter are to be read
    together and harmonized, if possible, so that effect may be given to
    each one. Calvert v. Fort Worth National Bank. 
    356 S.W.2d 918
    ITax.
    1962): Texas State Board of Pharmacy v. Kittman. 
    550 S.W.2d 104
    (Tex.
    Civ:App. - Tyler 1977, no writ). When articles 1659a and 2368a and
    the other statutes cited above are considered together, it becomes
    apparent that: (1) competitive bids must be taken on the election
    supplies you inquire about as per the terms of these statutes; and (2)
    the commissioners court is responsible for taking these bids and
    determining which one is most satisfactory.
    It is true that article 7.07 directs the county election board to
    "provide the supplies necessary to hold and conduct the election"' but
    we find nothing in this provision or in the remainder of the statute
    which warrants the conclusion that the other statutes cited above,
    which place the responsibility for taking bids on election supplies in
    the hands of the commissioners court, have been impliedly repealed.
    On the contrary, we believe article 7.07 is readily reconciled with
    those statutes. The county election board is to "provide" needed
    election supplies, but in so doing, it is to deal with the suppliers
    selected by the commissioners court through the bidding process. -See
    Attorney General Opinions M-302, M-233 (1968).
    Your second inquiry concerns:
    Items purchased from the 'profits'         of   the
    commissary operation in the county jail.
    It is our understanding that neither the county nor the sheriff
    actually operates the jail commissary in Dallas county. A private
    vendor does so pursuant to a negotiated arrangement whereby the vendor
    pays a fixed sum (based upon prisoner population) and a percentage of
    the receipts for the concession. The purchase of items for sale, the
    prices to be charged for them, and other similar management decisions
    are left to the concessionaire. The amounts realized from the vendor
    are not "profits," strictly speaking, but "income" in the nature of
    rental income. &    Dodson v. Marshall, 
    118 S.W.2d 621
    (Tex. Civ. App.
    - Waco 1938, writ dism'd).
    However it might be characterized. we think money realized by the
    county or sheriff from the establishment of a jail commissary is
    public money subject to public accountability and statutory safeguards
    respecting its expenditure. cf. Code Crim. Proc. art. 1040 (sheriff
    accountable for "net profits" realized from support and maintenance of
    prisoners).
    In the course of concluding that a jail commissary could be
    operated on a 'profit-making' basis by a county sheriff, Attorney
    General Opinion MW-143 (1980) used the term "profits" to signify the
    p. 1510
    Honorable Henry Wade - Page 4   (IN-439)
    net proceeds of sales made to prisoners from a sheriff-operated
    commissary. The opinion indicated that immediate commissary income
    might properly exceed immediate costs, so long as the "profits" were
    reinvested in the commissary operation so as to be devoted to the
    benefit. education and welfare of la11 inmates (bv exoandinn the
    amenities available to them). See Attorney General Opinions k-639
    (1975); C-67 (1963). Cf. Cityof       Bryan v. A. h M. Consolidated
    Independent School District, 
    179 S.W.2d 987
    (Tex. Civ. App. - Waco
    1944), aff'd, 
    184 S.W.2d 914
    (Tex. 1945). The opinion did not suggest
    that uurchases made with such "nrofits" were bevond the reach of
    competitive bidding statutes.
    Without passing on the propriety of the vendor-operated jail
    commissary now extant in Dallas County, we are of the opinion that
    purchases made with money realized from the establishment of a jail
    commissary are subject to the provisions of.article 1659a. V.T.C.S.
    See also V.T.C.S. art. 2368a.
    As noted above. article 1659a requires that "supplies of every
    kind... for the use of said county or any of its officers, departments
    or institutions, must be purchased on competitive bids." The contract
    is to be awarded to "the party who, in the judgment of the
    commissioners court, has submitted the lowest and best bid."
    (Emphasis added).
    You suggest that article 1659a is inapplicable because article
    5116, V.T.C.S., makes the sheriff -- not the commissioners court --
    statutorily responsible for the operation of the jail. A similar
    argument was made to the Texas Supreme Court in Anderson v. Wood, 
    152 S.W.2d 152
    (Tex. 1941). There it was claimed on behalf of the sheriff
    that the commissioners court had no power to control contracts
    respecting the operation of the courthouse because article 6872,
    V.T.C.S., provided that "[sjheriffs shall have charge and control of
    the courthouses..." subject to regulations prescribed by the
    commissioners court. Citinn two cases which concerned the nurcbase of
    disinfectant for jails, Ge&o Manufacturing Company v. Cole&    County,
    
    184 S.W. 1063
    (Tex. Civ. App. - Austin 1916, no writ) and American
    Disinfectant Company v. Freestone County, 
    193 S.W. 440
    (Tex. Civ. App.
    - Dallas 1917, no writ), the court held the statute gave the sheriff
    "0 authority to contract for the county independent of-the contracting
    authority of the commissioners court. Cf. Attorney General Opinion
    H-1190 (1978). We do not believe articlel16,     V.T.C.S., divests the
    commissioners court of authority in the matter.
    Early court cases and opinions of the attorney general dealing
    with the purchase and supply of food for prisoners are inapposite for
    two reasons. g.       article 5115, V.T.C.S.. was later amended, in
    1957, to make the commissioners court responsible for assuring "that
    food is prepared and served in a palatable and sanitary manner and
    p. 1511
    Honorable Henry Wade - Page 5   (MW-439)
    according to good dietary practices and of a quality to maintain good
    health," and article 5115.1, V.T.C.S., creating the commission on jail
    standards and (under section 11) making the commissioners court as
    well as the sheriff responsible for compliance with the rules and
    regulations of the commission, was enacted in 1975. The establishment
    of a jail commissary is the subject of such a rule. See Attorney
    General Opinion MW-143 (1980). Second, although statutoryauthority
    has long existed for sheriffs to provide food for prisoners from an
    allowance made by the commissioners court, there is no statute now
    that allows the sheriff to spend at his discretion any "profits"
    realized from the jail operation. See V.T.C.S. art. 1040; Attorney
    General, Opinion M-1220 (1972). Cf.ichita       County v. Vance, 
    217 S.W.2d 702
    (Tex. Civ. App. - Fort Worth 1949, writ ref'd n.r.e.) (jail
    kitchen); McKinney v. Collingsworth County, 159 8.W.2d 234 (Tex. Civ.
    APP. - Amarillo 1942. no writ) (allowances and "profits"); Attorney
    General Opinions C-567 (1965) (furnishing meals); V-1232 (1951)
    (contracts for meals); O-1228 (1939) (feeding prisoners); O-329 (1939)
    (purchase of food).
    In our opinion, purchases made from proceeds realized by the
    county from the jail commissary operation in Dallas County are subject
    to the competitive bidding statutes. -See V.T.C.S. art..1659a. -Cf.
    V.T.C.S. art. 2368a.
    You also ask about:
    Supplies and/or equipment purchased by        the
    criminal district attorney from the 'hot check
    fund' established by article 53.08 of the Code of
    Criminal Procedure.
    Article 53.08 of the Code of Criminal Procedure authorizes a
    county attorney, district attorney, or criminal district attorney to
    collect a fee if his office processes a hot check under certain
    circumstances. It further provides that:
    (e) Fees collected under this article shall be
    deposited in the county treasury in a special fund
    to be administered by the county attorney,
    district attorney, or criminal district attorney.
    Expenditures from this fund shall be at the sole
    discretion of the attorney, and may be used only
    to defray the salaries and expenses of         the
    prosecutor's office.... (Emphasis added).
    This statute creates a special fund which is in the county
    treasury, but which is segregated from other county funds and
    earmarked for a specific purpose. More importantly, the statute
    states that the fund is to be administered by county attorneys,
    p. 1512
    Honorable Henry Wade - Page 6   (MW-439)
    district attorneys. and criminal district attorneys, and that, within
    the limits set out therein, expenditures from the fund are to be made
    at their sole discretion. The express enumeration of particular
    persons or things in a statute is tantamount to an express exclusion
    of all others. Ex parte McIver, 
    586 S.W.2d 851
    (Tex. Crim. App.
    1979). Thus, by virtue of the express language of the statute, the
    hot check fund is explicitly placed beyond the reach of the
    commissioners court.
    By its terms, article 2368a applies only where a county acts
    "through its Commissioners Court." It follows, in our opinion, that
    the statute is not triggered unless, in making a specific purchase, a
    county acts through its commissioners court. Article 1659a does not
    contain this precise language, but it does state that contracts for
    the purchase of supplies and materials are to be awarded to the party
    who "in the judgment of the Commissioners Court" submits the lowest
    and best bid. This is sufficient to convince us that, like article
    2368a. article 1659a does not come into play where a commissioners
    court is not involved with the purchase in question.
    We have noted that article 53.08 gives the exclusive right to
    administer the hot check fund, and to make purchases from it, to
    county attorneys, district attorneys, and criminal district attorneys.
    , Because commissioners courts are without any right to administer the
    fund or to be involved in making expenditures from it, we conclude,
    for the reasons set forth above, that articles 2368a and 1659a are
    inapplicable in this purchasing context. In this respect, it should
    be noted that to conclude that these statutes are applicable is to
    give commissioners courts an indirect means of controlling the fund, a
    result contrary to the express terms of article 53.08 and, therefore,
    to the legislature's intent.      A commissioners court could, for
    example, refuse to accept any or all bids in a particular instance and
    thus interfere with the exclusive right of the designated individuals
    to administer the fund and to determine when, for what purposes' and
    under what circumstances expenditures will be made from it.
    Your final category of concern is:
    [The] purchase of law books and law book service,
    i.e., pocket parts and/or new volumes, where these
    items are available from only one publishing
    house.
    You suggest that such items are exempt from competitive bidding
    statutes because they are "professional services" rather than
    "supplies" or "materials." We disagree. See V.T.C.S. art. 1702h;
    Attorney General Opinion MW-399 (1981). Compare Attorney General
    Opinion MW-344 (1981) with Attorney General Opinion MW-342 (1981).
    You also suggest that the fact that certain books and book services
    p. 1513
    .
    *       Honorable Henry Wade - Page 7   (Mu-b39)
    .
    are obtainable only from the source that has a copyright on them is
    sufficient to render the competitive bidding statutes inapplicable.
    Support for the latter argument is found in cases from other
    jurisdictions which hold that bidding statutes are to be read in light
    of the reason for their enactment, and that they have no application
    where the nature of the item to be bought is such that competitive
    bidding is impractical or where the contract to be made would not
    naturally be - competitive.   See, e.g., Layne-Western Company
    Buchannan County, 
    85 F.2d 343
    (8th Cir. 1936); Whelan v. New .Jers&
    Power 6 Light Company, 
    212 A.2d 136
    (N.J. 1965); Schwartz v. Nagel
    Tires, Inc. v. Board of Chosen Freeholders, 
    69 A.2d 885
    (NJ. Super.
    Ct. App. Div. 1949).
    The only Texas case we have found that deals with a patented
    product, however, is Limestone County v. Knox, 
    234 S.W. 131
    (Tex. Civ.
    APP. - Dallas 1921, no writ), which involved a contract for patented
    machinery. The argument was there made that the subject matter of the
    contract wss such that:
    competitive proposals would work in incongruity,
    would be unavailing as affecting the final result,
    and would not produce any advantage....
    -Id. at 132. Nevertheless, the court concluded that:
    The language of [article 2368a, V.T.C.S.] is
    clear, unambiguous, and emphatic. The legislative
    intent and purpose is manifest, and the law should
    be observed and given full effect by the
    commissioners' courts of      the state...     The
    consequences of the failure on the part of the
    commissioners' court to comply with... article
    2368a... cannot be escaped 'on the theory... that
    the subject-matter of the contract of purchase was
    a   'patented product    in   the nature    of   a
    monopoly...' The fact that the 'subject-matter of
    the contract is a patented product' does not
    excuse a failure to comply with the terms of the
    statute. It is not so provided in the statute,
    and we may not look elsewhere for such an excuse.
    The only exceptions to the competitive bidding requirements are
    those contained in the statutes themselves. We are not in a position
    to declare the Limestone case obsolete, and we must therefore conclude
    that under current Texas law, the competitive bidding requirements of
    articles 1659a and 2368a cannot be avoided on the theory that only one
    supplier of a desired product exists.
    I). 1514
    Honorable Henry Wade - Page 8     (Mu-439)
    For these reasons, we conclude that a county must invite bids on
    the books and services you describe.
    SUMMARY
    Dallas County is required to take competitive
    bids on materials, supplies, and printing used in
    the conduct of an election. The competitive
    bidding statutes also apply to purchases made with
    profits from the commissary operation in the
    county jail and to purchases of the indicated law
    books and law book services. Competitive bids
    need not be obtained on items purchased with funds
    available under article 53.08 of the Code of
    Criminal Procedure.
    MARK      WHITE
    Attorney General of Texas
    JOHN W. FAINTER, JR.
    First Assistant Attorney General'
    RICHARD E. GRAY III
    Executive Assistant Attorney General
    Prepared by Jon Bible
    Assistant Attorney General
    APPROVED:
    OPINION COMMITTEE
    Susan L. Garrison, Chairman
    Jon Bible
    Robert Gauss
    Rick Gilpin
    D. 1515