The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 5473 March 30, 1979 DEPARTMENT OF MANAGEMENT AND BUDGET: Use of State purchasing and contract procedures by veteran organizations VETERANS: Use of State purchasing and contract procedures by veteran organizations Congressionally chartered veterans' organizations referred to in 1965 PA 380, Sec. 107 may use State purchasing and contract procedures. Frank A. Schmidt, Jr. Executive Secretary Michigan Veterans Trust Fund Department of Management & Budget 122 S. Grand Avenue Second Floor Lansing, Michigan 48913 You have requested my opinion as to whether a congressionally chartered veterans organization designated in Sec. 107 of the Executive Organization Act, 1965 PA 380, Sec. 107; MCLA 16.207; MSA 3.29(107), may employ the state purchasing and contract procedures? 1965 PA 380, Sec. 107, supra, provides: 'For budgeting purposes only, the following veterans' organizations are assigned to the department of management and budget: '(a) Department of Michigan, the American Legion '(b) Department of Michigan, American Veterans of World War II and Korea. '(c) Department of Michigan, Disabled American Veterans '(d) Department of Michigan, Marine Corps League, Inc. '(e) Department of Michigan, Military Order of the Purple Heart '(f) Department of Michigan, United Spanish War Veterans '(g) Department of Michigan, Veterans of Foreign Wars '(h) Department of Michigan, Veterans of World War I of the United States of America.' These veterans' organizations have been created and declared to be corporate bodies by the Congress of the United States. These organizations render valuable community services and receive appropriations from the Michigan Legislature through grant and transfer bills. See II OAG, 1957-1958, No 3128, p 119 (April 23, 1958). The Department of Management and Budget has interpreted 1965 PA 380, Sec. 107, supra, as authorizing congressionally chartered veterans' organizations to use the state purchasing procedures and has allowed these organizations to use the state purchasing procedures and to purchase items through the state stores for many years. The Michigan Supreme Court in Magreta v Ambassador Steel Co, 380 Mich 513; 158 NW2d 473 (1968), states that a court should give due consideration to the way in which a state agency interprets a law which said agency is under a duty to administer. It should be noted that the state money only funds the rehabilitative service programs of these organizations. It is only in regard to these rehabilitation service programs that the state purchasing procedures are utilized. These procedures allow the organizations to use their state appropriated funds to purchase organizations to use their state appropriated funds to purchase equipment based upon bids that have been let out by the Department of Management and Budget. Further, it allows these organizations to purchase items directly from the stores kept by the Department of Management and Budget; for example, stationery. It is my opinion, therefore, that congressionally chartered veterans' organizations referred to in 1965 PA 380, Sec. 107, supra, may use state purchasing and contract procedures. Frank J. Kelley Attorney General