Dear Mr. Davis: Your request for an opinion porer the following question: Are bid@ coating over $2,000.00 if it will be paid for of county fundr on hand and the purchare ir not being made out of funds creating an obligation or liability on the county7

The controlling rtatute ir Article 236&, ( 2, Vernon’r Texar Civil Stetutee, which provider in part:

“No county, acting through itr Commiraionerr , , . rball hereafter make any contract calling Court, for or requiring the expenditure or payment of Two Thouaand Dollars ($2,000.00) or of any fund or funds of any . , . county or subdivirion of any county creating or imposing an obligation liabilitv any nature upon ouch countvor any subdivirion without firrt ebmitting much pro- of ruch county, pored contract to competitive bids. . . . Provided, however, that the provieions of thin Act shall not apply to counties having a population of more than three hun- dred fifty thourand (350,000) inhabitant8 according to the lart preceding or any future Federal Cenaur.” Section 2b provider:

The Honorable John Park Davh, pago 2 (H-169

“Contracta for the purchare of machinery for the conrtruction and/or maintenance of roadr and/or rtreetr, may be made by the governing bodier of all countier and citier within the State in accordance with the proviaionr of thir Section. The order for purchase and notice for bid* rhall provide full rpecification of the machinery desired and contract8 for the thereof ahall be let to the lowert and bert bidder.” of the above quoted Your quertion indicate8 an interpretation language wherein the phrare “creating or imporing an obligation or liability. , . ‘I would refer to “fund or fundr. . . .I’ We disagree.

The worda of Article 2368a, $2, “creating or imposing an obligation or liability . . . upon ouch county . . . . ‘I, referr to the contract and not to the fund. The word8 “out of any fund or fundr of any county or any rubdivi#ion of any county” were not included in $2 until it was amended in 1947 (Actr 1947, 50th Leg., p. 283, ch. 173). A reading of $2 leaving out those words maker it clear that the phrare “creating imporing an obli- gation or liability of any nature upon ruch county. . . .‘I muat have originally referred to the word “contract. ”

Moreover, a contract by ita very nature create8 an obligation liability wherear a fund doer not.

Our conrtruction ir bolrtered by the language of 5 5 of Article 236ga which provides:

“The notice required in Section 2 . . . shall not be applicable to expenditures payable of current fundr. . . .‘I

If bidding were not required for expenditures current funds, it would be fruitlera to specifically eliminate the notice requirement for ruch expen- diturer. See Attorney General Opinicnr M-172 (19671, V-1082 (1950).

It ir our opinion that competitive bidding ir required costing over $2000 which ir paid out of fundr on hand.

f’ -

The Honorable John Park Davlr, pago 3 (H-163)

SUMMARY Bidr for road machinery carting $2,000 are even if it will be paid for out of county fundr oa hand. V ry truly youra,

A APPROVED:

Opinion Committee