Untitled Texas Attorney General Opinion ( 1964 )

Honorable Jesse James Opinion No. C-351 Treasurer of the State of’Texas Capitol Station Re: Whether wareRraDh 9 of Auitln,.Texas Chapter 7 of-Ho&e-Bill No. 11, Acts of the 56th Legislature,Third Called Session (Article 7.08 Tax. Cien.),la in conflict With the Texas war Sir: Constitution. By letter of November 9, 1964, you request en opinion of this office House Bill No,. Called Session Said paragraph “The Stat’eTreasurer shall require’that payment In full for stamps or m*ter .settlngsbe made within Plfteen’(l5) days from the date the stamps or.the set meter are received by the distributor. Upon receipt of an order for stamps or the setting of e meter, the State ‘~ Treasurer shall ship such stamps or set such meter In complianceWith the order and transmit with the stamps or the meter a certified statement showing the amount due for said stamps or meter set; tlng, and the distributor shall forward a remittanceas payment’In full of the . amount certified es due by the State Treasurer within fifteen (15) days after receipt of the stamps or the set meter and the certified statement. Any dis- tributor who falls to forward the proper . remittance within fifteen (15) days after receipt of the stamps or the set meter and the certified statement shall be notified by the State Treasurer with- in five (5) days after the end of the -1664- . . Honorable Jesse Jame.8,page 2 Opinion Tlo.(C-351) fifteen day period to appear within five (5) days before the Treasurer to ShoN cause why he should not be, ‘ denied the privilege of~ordering stamps as herein provided, and If such distributor shall fall to show good cause, the Treasurer Is hereby authorized to discontinuethe shlp- ment of stamps or the setting of ':"~. '~meters as provided In this Section.." The provisions of the above paragraph call for.the State Treasurer to ship cigarette stamps 31‘.ship a set meter for u&e In stamping cigarettes,wit ut receiving payment for such stamps or set meter, at,t% e ~tlmeof shipment, ~wlththe distributoror recipient of such stamps having 15 dayswithin which ~topay for the same. Such practice clearly puts th@ State of Texas in the business of extending credit to the reclp~lents 6f cigarette stamps for a period of 15 days. .gxperlence has recently demon- strated that ~falluieofa person or firm to pay within the,tlme prescribed.bylaw causes the State of.Texas loss of revenue amounting to thousands of dollars. Article 3, Section 5O.of the Texas ConstitutionIs as follows: "The Legislatureshall have no power to glve'or to lend, or,to authorize. the giving or lending,.ofthe credit of the State In aid of, or ti, w person;~associatlonor corporation; whether municipal or other, or ~to . pledge.the credit of'the~State in any : 1: manhet NhatsoeVer,':Por thepayment.oS the liabilities,present or prospective, . of,any individual,.associatlon of Individuals,,municipalor other car- poration whatsoever." * ;1665-. Honorable Jesse James, Page 3 Opinion No. (C-351) The above provision of the ConstitutionIs plain and unambiguous. It clearly states, "The Legislatureshall have to give . . . the credit of the state . . . to any no potvex? person, association or corporation. . . .' This office, In Attorney General's opinion No. 2996, held that the sending by the state of stamps on consignmentwas a giving or lending of the credit of the state and was In violation of said Section 50 of Article 3 of the Constitution. It Is therefore our opinion that Paragraph 9 of Chapter 7 of House Bill No. 11 Acts of the 56th Legislature,Third Called Session (Article 7.06 Tax. Gen.), la In direct conflict with the above provisions of the Constitution,and is unconstitutional. SUMMARY ---?--- Paragraph 9 of Chapter 7 of House @Ill No. 11, Acts of the 56th Legislature,Third Called Session (Article7.08 Tax. Gen.) 1s unconstltu- tiona1. Yours very truly, WAGGONER CARR Attorney General of Texas GCC:dl .' e Assistant Attorney General APPROVED BY OPINION COMMITTEE: W. V. Geppe,rt,Chairman Ii.Grady Chandler W. E; Allen Joe Long Marietta McGregor Payne APPROVED FOR THE.~ATTORNEY:GENERAL BYROGW TYLER -1666-