Texas Attorney General Opinion: LO88-30 Page: 1 of 2
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.mJr' MIArox March 16, 1988
Mr. Robert J. Provan
Office of General Counsel
Stephen F. Austin State University
P. O. Box 6214, SFA Station
Nacogdoches, Texas 75962-6214 LO-88-30
Dear Mr. Provan:
Your letter of February 29, 1988 to Rick Gilpin has
been referred to me. You state that subcontractors on
construction projects at Stephen F. Austin State University
plan to purchase supplies from a firm in which a Regent
owns a substantial interest. You ask whether the proposed
purchase of supplies would constitute an unlawful conflict
of interest.
Attorney General Opinion JM-171 (1984) dealt with a
related question. It involved a city councilman who had a
pecuniary interest in an air conditioning business which
served as a subcontractor on a city construction project.
The opinion determined that a conflict of interest would
arise if the general contractor had already agreed to
contract with the subcontractor at the time the city chose
the general contractor for the construction contract. If
the agreement between the general contractor and the sub-
contractor arose only after the city let the contract, then
there was no conflict of interest.
You inquire about a situation where the regent is not
the subcontractor, but the subcontractor's supplier. Thus,
the regent's interest is more removed from the contract
with the university thatwas the councilman's interest from
the contract with the city. Nonetheless Attorney General
Opinion JM-171 should provide at least a partial answer to
your question. A conflict of interest does not arise if,
at the time the university entered into the contract with
the general contractor, either (1) the general contractor
had not yet contracted with the subcontractor or (2) the
general contractor had contracted with the subcontractor,
but the subcontractor had not contracted or otherwise
committed to purchase supplies from the regent's firm.- , i,
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Texas. Attorney-General's Office. Texas Attorney General Opinion: LO88-30, text, March 16, 1988; (https://texashistory.unt.edu/ark:/67531/metapth276181/m1/1/: accessed June 26, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.