Montana Attorney General Opinion 15-527

Opinion No. 527. LegisIators-Saies to State-State Purchasing Agent-Contracts -Agency. HELD: Section 12, Chapter 66, Laws of H)23, prohibits a legislator from being a party to a contract for sale of goods or supplies .to the state in his own name or from entering into such contract by or through a trustee or ;;dummy". But the statute is not broad enough to coyer a contract of sale executed by a legislator who is merel~' emplo~'ed by the corporation as an agent or who is only an ordinary shareholder; though it would coyer a case where he is, in effect, the corporation. May 5, 1934. You ha'-e submitted the following: ;'\Vill you kindly let me haye a writtffiJ opinion as to whether a member of the Senate or a member of the Legislature either personally, or as a large holder in a corpora.tJon, is allowed to sell good;; to the State of Montana where there is .a personal profit for himself?" As practically all goods required by the state of Montana, its departments aIHl institutions are bought by the State Purchasing Agent, we assume you refer to sales of goods made to the state of ::Uontana through him. Chapter 66, Laws of 1923, among other things, sets forth the duties of the State Purchasing Agent Ilnd pre- scrillCs the manner in wbich supplies for the state shall be by him purchased. Section 12 thereof proyides: "No mem- ber of the legislat.ure, nor any elective or appointive state officer, nor any deputy or employee thereof, nor super- intendent of any state institution or any employee thereof, nor any person in the employ of the State of Montana in any capacity whatsoever, shall di- rectly, himself, or iJy any other person in trust for him or for his use or bene- fit or on his account, undertake, exc- cute, hold or enjoy, in whole or in part, any contract or agreement made or en- tered into by or on behalf of the State of Montana under the provision of this Act, • .. "." The statute, therefore, prohibits the legisla tor from being a party to the contract of sale in his own name or from entering into it by or through a trustee or "dummy". He is not disqualified, howe,-er, from representing a corporation in execut- ing the contract of sa Ie, or in the steps leading to its execution, unless he is in effect the corporation itself by reason of ownership of so great a part of the stock that a court would con- sider him as the corporation itself. From the administrative standpoint I think the Act should be liberally con- strued so as to ayoid dealings with legislators under the guise of a fic: titious corporate entit~'. The language of the statute is, we think, not broad enough to cover the case of a legis- . lator who is merely employed by the corporation or who is only an ordinary shareholder. Section 444, Reyised Codes 1921, can haye no application for the contract is made by the legislator not in his official hut his private Cal)llcity. The State Purchasing Agent represents the State of Montana and is expected to look out for its interests.