Texas Attorney General Opinion: JM-712 Page: 5 of 7
This text is part of the collection entitled: Texas Attorney General Opinions and was provided to The Portal to Texas History by the UNT Libraries Government Documents Department.
- Highlighting
- Highlighting On/Off
- Color:
- Adjust Image
- Rotate Left
- Rotate Right
- Brightness, Contrast, etc. (Experimental)
- Cropping Tool
- Download Sizes
- Preview all sizes/dimensions or...
- Download Thumbnail
- Download Small
- Download Medium
- Download Large
- High Resolution Files
- IIIF Image JSON
- IIIF Image URL
- Accessibility
- View Extracted Text
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
Mr. R. E. Stotzer, Jr. - Page 5 (JM-712)
I think what it basically comes down to, ii a
government entity, if the state of Arkansas
requires that on all municipal and state work
that . . . the Texas contractor be five percent
lower than the lowest [Arkansas resident con-
tractor's] bid, that basically we'd do the same
thing here. ...
Id. It was further emphasized that the act would not establish a
preference for Texas resident bidders over a nonresident contractor
unless a preference for resident bidders was already in effect in the
other state. Id. It becomes necessary, then, to examine Arkansas law
-- specifically, Arkansas Statutes section 14-614.2 -- to determine
whether the state of Arkansas imposes particular burdens on out-of-
state contractors bidding on Arkansas state highway contracts that it
does not impose on Arkansas firms solely on the basis of residence.
The preference for certain bidders provided in Arkansas Statutes
section 14-614.2 does not hinge on the residence of the bidding
contractor. Rather, Arkansas law gives preference to the bids of
contractors who satisfy three requirements. First, the contractor
must have "satisfactorily performed prior contracts," which is defined
in section 14.614.6 to mean the contractor must have substantially
completed performance of one or more contracts in the state of
Arkansas within two years of the date the bids are to be submitted.
Second, the contractor must have paid taxes for at least two succes-
sive years immediately prior to submitting the bid under (a) the
Arkansas Employment Security Act, as amended (Ark. Stat. Ann.
581-1101 -- 81-1108, 81-1111 -- 81-1121) and (b) either the Arkansas
Gross Receipts Act, as amended (id. 584-1901 -- 84-1904, 84-1906 --
84-1919) or the Arkansas Compensating Tax Act, as amended (id.
84-3101 -- 84-3128), on any property used or intended to be used for
or in connection with the contractor's construction business. Third,
the contractor must have paid taxes of any kind within the same
two-year period directly to one or more Arkansas counties, munici-
palities, or school districts. See APAC-Mississippi, Inc. v. Deep
South Construction Co., Inc., supra. The bid of a contractor who has
paid such taxes "shall be deemed a better bid" than the bid of a
contractor who has not paid such taxes and whose bid is less than
three percent lower than the bid of the contractor claiming the
statutory preference. In such cases, the contractor making the bid
deemed "the better bid" shall be awarded the contract.
Section 14-614.2 was motivated by an interest to provide
safeguards and procedures where public funds are expended and by an
interest in granting a preference in the bidding process to those who
contribute to the Arkansas economy through construction activities
within the state. APAC-Mississippi, Inc. v. Deep South Construction
Co., Inc., supra. It evidently was not motivated by an interest to
favor Arkansas contractors in the awarding of construction contracts,
although the three elements of section 14-614.2 do require thep. 3301
Upcoming Pages
Here’s what’s next.
Search Inside
This text can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Text.
Texas. Attorney-General's Office. Texas Attorney General Opinion: JM-712, text, May 28, 1987; (https://texashistory.unt.edu/ark:/67531/metapth273150/m1/5/?q=%22%22~1: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.