NET GENE EXAS Hon. Coke R. Stevenson, Jr. Opinion No. M-61 Administrator State Liquor Control Board Re: Whether the State Build- Sam Houston State Office Bldg. lng Commlsslon can enter Austin, Texas 78711 into a legally binding contract with a contractor for constructionof a collection station, 'when constructionthereof Is to commence prior to the constructionsite being transferredby Mexico to the United States under Dear Mr. Stevenson: existing agreements. In your recent letter, you Informed the Attorney General's Office that the State Building C~lsslon desires to enter Into a~contract prior to the end of the 1966-67,fiscal year for constructionof a collection station for collecting taxes on liquors Imported Into this State at the Cordova Crossing, El Paso, Texas; that the,land upon which the collec- tion station la to be located, although scheduled to be trans- ferred to the United States on or about September 1, 1967, under the Chamlzal Agreement, la presently within the boundaries and jurisdictionof Mexico. Correspondenceattached to the aforementionedletter reflects that the revenue collection station Is to be located on United States Government land under an agreement between the Texas Liquor Control Board and the General Services AdmInIstration. You have requested an opinion as to whether the State of Texas may enter Into a legally binding constrmctloncontract fdr such collection statlon``.beSore title to said land has actual- ly vested In the United States. The State ,BulldlngCommission la authorized by the Constitution, "under such terms and conditions as are now or may be hereafter provided by law,' to "acquirenecessary real and personal property . . . build and equip buildings for State purposes, and negotiate and make contracts necessyy to carry out and effectuate the purposes herein mentioned. Article III, Section 51-b(c), Texas Constitution. - 285 - . Hon. Coke R. Stevenson, Jr., page 2 (M-61) The Legislature,by virtue of similar provisions In Section 3, Article 678m, Vernon's Civil Statutes, conferred ex- press authority on the State Building Commlsslon as Sollows: "The Commission shall have the authority to promulgate such rules and regulationsas It deems proper for the effective administrationof this Act. Under such terms and conditionsas may be provided by law, the Commissionmay acquire neces- sary real and personal property, . . . build and equip buildings for State purposes, and make con- tracts necessary to carry out and effectuate the purposes herein mentioned In keeping wltQ appro- priations authorized by the Legislature. In that regard, you also Informed us In your afore- mentioned letter that "the legislatureappropriatedmoney for the constructionof a collectionbooth for the collectlon,of taxes on llquorj Imported Into Texas at the Cordova Crossing In El Paso, Texas. In pertinent part the InternationalBoundary and Water Commission'sMinute No. 219, dated July 1.6, 1965, approved by the United States and Mexican Governments,provides In Resolution NO. 6, in part, as follows: “6 . In order that each Governmentmay oppor- tunely construct the new inspectionfacilities contiguous to the new bridges, the two Governments, as soon as practical conditionsmay permit, shall mutually make available to each other the lands now In their respective jurisdictionsthat may be required. For the constructionof the new inspec- tion facilities each Governmentmay make use of any competent public or private agencies in ac- cordance with the laws of Its country. In exe- cuting the constructionof new Inspection Saclll- ties, In the territory under the jurisdictionof the other country, each Government shall observe the laws of that country, with the exemptions and Sacllltles hereinafter stated: "(a) All materials, Implements,equipment and repair parts Intended for the construction shall be exempt from taxes relating to Imports and exports. For this purpose, each Section of the Commission shall furnish verificationcertl- flcatea covering all materials, Implements,equlp- ment and repalr parts Intended for the construction - 286 - Hon. Coke R. Stevenson,Jr., page 3 (M-61) of such works. "(b) The personnel employed either directly or Indirectly on the constructionshall be per- mitted to pass freely from one country to the other for the purpose of going to and from the constructionsite, without any Immigrationre- strictions,passports, or labor requirements. For this purpose, each Section of the Commlasio~ shall furnish adequate means of identification to the personnel empioyed by Its Government on the aforesaid works. Pursuant to this agreement, the Mexican Governmenthas set aside a certain portion of land at the Cordova Crossing for use by the United States Government In constructingInspectionfacllltles. In turn, the General Services Admlnlstratlonhas contractedwith the Texas Liquor Control Board to provide a portion of the said land for the constructionof a booth for the collection of taxes on liquors Imported Into Texas at the said Cordova Crossing. It can thus be seen that the State of Te%as is not taking title to the land In question, but Is utilizing It under a lease agree- ment with the United States Government. Based upon the aforesaid lease agreement with the General Services Administration,It Is the opinion of this of- fice that Article 678~11,Section 5, provides ample authority for the State Building Commlsslon to enter Into a valid contract, prior to September 1, 1967, for the constructionof a collection station In the furtheranceof valid State objectives,and the time of the passage of title to the U.S. Governmenthas no bear- ing on the question. S U M M A R.3 The State Bulldlng Commission can enter Into a valid contract, prior to September 1, 1967, for the constructionof a collection station for col- lecting taxes on liquors Imported Into this State at the Cordova Crossing, El Paso, Texas, although the constructionthereof Is to commence prior to the constructionsite being transferredby Mexico to the United States under the amlzal Agreement. /IF Y I. . Hon. Coke R. Stevenson,Jr.;'page &(Mdl) Prepared by Malcolm L. Quick Assistant Attorney General APPROVED: OPINION COMMITTEE Hawthorne Phillips, Chairman W. V. Geppert, Co-Chairman Arthur Sandlln John Reeves Llnward Shivers STAFF LEGAL ASSISTANT A. J. Carubbl, Jr. - 288 -