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Honorable James U. Cross Opinion No. M- 1122
Executive Director
Texas Parks & Wildlife Dept. Re: Construction of Article 402533,
John I-l.Reagan Building V.C.S., relating to "cost of
Austin, Texas 78701 publication and mailing" of
materials published by the
authority of the Parks and
Dear Mr. Cross: Wildlife Department.
Your request for an opinion on the above subject matter
asks the following question:
"Which of the following costs can the
Parks and Wildlife Department consider as 'cost
of publication and mailing' in computing the
selling prices of departmental .publications?
1. Compiling data, preparing the original
manuscript, and editing; 2. Printing; 3.
Accounting; Processing Remittance: and In-
ventory; 4. Storage space; 5. Postage; 6.
Wrapping materials and envelopes: 7. Employee
time incidental to all of the above."
Article 4025b, Vernon's Civil Statutes, authorizes the
Parks and Wildlife Department to sell any bulletin, book or maga-
zine authorized to be published by the act. Section 2 provides:
"Sec. 2. Any bulletin, book, or magazine,
published by authority of this Act, may be sold
for a price not to exceed the cost of publication
and mailing. All moneys received from the sale of
publications provided for herein shall be remitted
to the Game and Fish Commission at its office in
Austin not later than ten (10) days following the
date of collection. Said moneys shall be deposited
in the State Treasury to the credit of the Game and
Fish Fund, and used for all purposes provided for
by law."
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Hon. James U. Cross, page 2 (M-1122)
The phrase "cost of publication and mailing" is not de-
fined by the act, nor is there any other provision which dictates
the items comprising such costs. Therefore the ordinary meaning
of "cost" should be applied.
It is our opinion that all reasonable and necessary ex-
pense involved in the publication and mailing of such bulletins,
books, or magazines is included in the phrase "cost of publication
and mailing." You are therefore advised that all of the items
listed in your question may be considered as "cost of publication
and mailing" in computing the selling price of departmental publi-
cations. Such items listed in your request and all other direct
costs, as well as reasonable allowances for indirect costs, are
contemplated by the provisions of Section 2 of Article 402513,
Vernon's Civil Statutes. These costs should be determined and
prorated on the basis of generally accepted principles of cost
accounting.
SUMMARY
All reasonable items of expense involved in
the publication and mailing of publications au-
thorized by the provisions of Article 4025b, Ver-
non's Civil Statutes, are included in the "cost
of publication and mailing" in determining the
selling price of departmental publications.
These costs should be determined and prorated
on the basis of generally accepted principles
of cost accountinq.
Ve$? truly yours,
w
Prepared by John Reeves
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Kerns Taylor, Chairman
W. E. Allen, Co-Chairman
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Hon. James U. Cross, page 3 (M-1122)
James Giddings
Jerry Roberts
Lewis Jones
Jim Swearingen
SAMUEL D. MCDANIEL
Staff Legal Assistant
ALFRED WALKER
Executive Assistant
NOLA WHITE
First Assistant
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