Case Information
*1 THEAYTORNEY GENERAL
OFTEXAS
Honorable Geo. R. Sheppard
Comptroller of Public Accounts
Austln, Texas
Dear Mr. Sheppard: Opinion No.
Re: Whether or not Senate Bill No. 266, Regular Session, 48th Legisla- ture, with respect to rentals, applies to storage rentals on automobiles and other commodities made upon a monthly basis.
You request a construction of Senate Bill No. 266 of the 48th Legislature, Regular Session, governing rentals with special respect to storage rentals on automobiles and other commodities made upon a monthly basis.
Sections 1, 2 and of Senate Bill No. 266, are as follows:
"Section 1. Hereafter all departments and agencies of the State Government, when
rental space is needed for carrying on the
essential functions of such agencies or de- partments of the State Government, shall
submit to the State Board of Control a re-
quest therefor, giving the type, kind, and
size of building needed, together with any
other necessary description, and stating
the purpose for which it will be used and
the need therefor. 2 s The State Board 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
forthwith advertise in a newspaper, which
has been regularly published and circulat-
ed 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 of not to exceed two years. After
such bids have been received by the State
Honorable Gee, H, Sheppard - page 2
Board of Control at its principal office in Austin, Texas, and publicly opened, the
award for such rental contract will be made to the lowest and best bidder, and upon
such other terms as may be agreed upon. The terms of the contract, together with the
notice of the award of the State Board of
Control will be submitted to the Attorney General of Texas, who will cause to be pre- pared and executed in accordance with 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 the Attorney
General of Texas. The parties to such con- tract will be the department or agency of
the government using the space as lessee
and the party renting the space as lessor. 3. Within thirty days after the
effective date of this Act, all departments and agencies of the State Government at
this time leasing or renting space from any person, firm, or corporation whomsoever,
will cause to be prepared and delivered to
the State Board of Control in Austin, Texas a copy of any written rental or lease agree- ment now in force and current, or any state- ment of any oral understanding upon 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 those mentioned by you.
The subject -- the essence -- of Senate Bill Is the "rental space" when needed by an agency or department of the State government. It contemplates not only the rental contract but It contemplates that the subject matter of the contract -- the space needed -- be the space such as that of a building, room, office, or other quarters, to be occupied by the agency or depart- ment, or Its employees, in the carrying 'on of an essential govern- mental function. In other words, the subject matter 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 generally understood. The word "rental Is one of well-under- stood meaning, and presumptively it was so used by the Legislature. Furthermore, this construction comports with the general purpose of the Act.
Honorable Geo. H. Sheppard - page 3
Now, the so-called rental for storage of automobiles and other commodities is not a rental at all, within the meaning of the statute. It does not contemplate the taking over of any specific buildlng, room, or space whatsoever, but on the other hand is in its nature a storage contract -- something entirely dlfferent from the ordinary rental contract, A storage con- tract is one for service by the warehouseman, or other owner of storage space, and moreover it does not contemplate any particu- lar 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 agency was In need of space for storing records, papers, files, and the like, and the things to be thus stored were 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 such necessity would present a fact situation to be determined by the circumstances. We can not be definite at this point beyond the mere statement of the general principle determining 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 Committee By s/BWB Chalrman