Untitled Texas Attorney General Opinion ( 1944 )

OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN Iionorsbls c . H. c.aYnesa State Auditor Auetln,!l'ex4m Dear Sir: e OS yow.ppohlem olved in ita aolu- the pragptPesaof eratlonof your re- Foundation for oorporatu?rl, a State, for the eaw.Pias end 1, aa proper* es of the X&d- ty, and other hospIt& builm or buildingsLa the City Oi ml- vestonin oonneotlonnlth the John seelyxospital and the endannenfthareof,fwtheuse ofthepeopls of the said City of Qal*eston,by prov~d.dlng; theinwfth Hon. c. 3. cavness,Page 2 the naaessarymediaalmre atxIattentiontherein, the legateesu&der the will of the estate OS John S~ly,dea~sed,~eclohotthlrm,beandarahe~- by mlleved and ralsesedfrom paymentof taxes pro- vided for ln Chapter5, Title 122, RevlsadStatutes of Texna,generallyknown a5 Inheritanoelkxer,and the state c0mptr0iiOrand the 'paxc0ut0t0r or (ki- VestonCountyantheMbO~~andd~u~not to oolleator lttaaptto oolleotauuh tax or tame, whloh ta%ea if not ao herebyrelsaaedvould be par- able outofthepart; ofhis eatcstedetiaedaxx3ba- queatbedby said Scaly to said Foundatian,and pro- vided, however,that the City of Oalventonahell not thembybs releasediropIanyobllgatloninorundar a oertalnlease of said Yoba Scaly Hospital,exe- outedby the Board of Regentsof the Rnlvarsityof ~~,PithsaZdCity,datedthc9thdayoi~y, . "ssotion2i S8Qtio&1lmwof8b6il3 beeoslevoid unlsaathe"scalyend smithRotrndsts.onror the John ~~Hospital*hau.sithin.sir8onfha~~~rfhs palream.~#.tU:A& enter rat;0M Bap?e#osrrt with the 'Road a? Rego&iiaf:the lJamm#ity of sxm)~ a orgy whereofmrt~ed aa a em otspybyfh8 P.yMeat.0~ the~U~&veraitj of Taxas&all be~fU.ed wltlt~tbot3awMry of St&e wbamby thk-sea1yand SndthFounb*tionfar~o Johealy Eosp~talrball : agreawithaai+3BoaMoilbgent~to8q$reg*toaad a~t,apartpmprmty;ort?wprWWl8thaPaof,ar aaah, orpewt~prqw$y~~lycruh, ts.k lgrW .t@ w~~,duid be$v@ea’~Wd‘Fbmda~iqa &ad .$l.w Mid Re t,a of 8 raltM aQAak.tom - " !l%oudy$~;00.c?3) Dolkr?r,thr eatmtsd i amountof taxm w.bymd~'~:#l&xtlaq1 hewcand bywhlah said PoundatLom.~eWLl;rgrWto~keop auah p r o p wty a q wa to fr o nit* eth e rlwta o r p r q mty a ndto we th r 3x & o o me th edlrmtion th e r a m la la ler and r ith tha a jq mva l ,s*Zd~Regwita fo r U;r a Yeh a a l. sea4 Htmpitnl, twaay a@dltluna thqroto .m .Bullw t0 be wed in OUIIUW**~~WWL~,~O~ r0p* 0f th0 purporer8pecitied.b tkb lKll1of a4d.dYoha saalr. T& sum htWebyrerd.tt8d&Q.l ;pbrpsourl~b Uadm' Hon. C. R. Cmmess, Page 3 the joint oontrolof the Board of Regents of the --Unlversltyof’Texas,and the Sesly and Smith Foundationto investand reInvestthe prooeeas. Approved,Ootober1, 19Z6.n we have aneertainedthat the 0ondlt10w oontalned in Sootion2 ol=the Aot vere met by the Foundatlanand by the BoarrlcURegents oqJanwrp31,1927,endttuttthm fund thus orentedhaa alnoebeen admlnlsteredin aooordanoev%tb the pro- vlslonn of the Bat. Althoughthe Aat speaks in temna or u *release*of lnherltanoe tuxtar, we are or the optnionthat the Aot 88 a whole does not agotmpllnha relaeseOF rmn.laeIon of t&see,and henoe t.b&tthe Aot doe8 not run afoul or those ~OVISIOM or oup con- atltutlonvbloh problbLtthe rsmLaaionof taxes. ,%&ion 1, the SectionwhIoh purportedly "re3mwes" t&m tmcos, cm&.& an a gMatiqf$nat*,baps beocmeaffeatlveoq@vhsa $700,ooo, the.08tba&Od OBBwmt.W tUce# releaSea.bpSeetlcmla, ma ret aaldetwLsrthe.terasandeol@it~ ou30otian2. state&dir- rdiy, agy eh5m.t of l.,~r elea wuehsed.gbt have be& bhorsat in the~operathnof sSoW?nlvas lmedZately~crfmntsr-balaaoed by the aeg2yga$am of a aa #@d@.od ag "the e5tinurtt$d ylox$or ~t*rsd. *,kr;r&j."bj,~:-.,;Ebof&& we huve bee@aJlmmd by reprssentativeu of the "thmthenmountof mmhliab$li~~. ,Comidmed asavboM, the Aot IS en appreps?Utioa a@6athar &lam a mleaae, an apprupr.lation fs the aaanner.and for the purpeses~nt.sted in sootlen2'aereof. It remainsto $0 seen~wlmthesthe Iagi.slaturepoilass8ed the power to mnke an appf@H.attonor ttrlskWd. Hon. c. FL cavaeua,PQge 4 Hon. c. H. CaYne5s,Page 5 A8 statedin the Aot, the Joha~SealyHo~pltalis, amlwaaattketims o?thepssssge o?theAat,oumdbythe 8tate OS 2ema and wed ior olintoslpurpo5estqths.vledioal lJehoo1 of the Universityof Tsxaa. Sindlarly,M have aaoer- talnedtlu%ttkobdldiage inoormeotionpith tkeXorrplt&l are and ware wed HOP 8duoutiowl purpaseaby pai8 sdmol. It is alem, wo fool, thut the lfospital aad its attemlant buudlnge nrewedfora 'govezmmsntslpurpose" o?the State,ati that eixpauttuw ?Poathe lnrm?#eOfthefwd tiQum8tionare au- thmlmA 6aly in oonneotfonvith and in the ?urthmanos of such purcporre. SeetIau51 of Artl~leIII of our C0nstitutks.n pmnr¶Aes inpartanfollwa~ of the lbov6-Quotedaf.wtt~ *iOn vita fbe lneening tutioztalpwMslon. HOL c. H. Cevwss. page 6 Thus, althoughthe lZtem1 wm&g OS the constitution problbltsall grantato a munLalpt31 OT other eorporatlon, our aourtehave, with respsotto munloipaland politicaloarparetlone, intOPpl’8tOdthis ~OV&SiWl 80,pl’Ohibiti.?i& Otis those gP&UtS vhicrh are not for 8 gfxern;wtntul purpose. That a similarlnterpsetetion is applicnbleto privateobarltableoorpoxations of the type under dlsousaioilis lll.~lat??atedby the eme or conlegv. naughtem of the Republio,1% 3. W. 197, I57 S. I?. 937. muler th8 ?8miller sects of ws eajgse t&3 3it6~teptlrobaeedthe Alamo for the use and 0nJoymentof tbe people of lexa~,and, ardw le~elatlve dlreotion, the govwnor deliveeed.&.ob propertyto the eurtodyand owe of the @wghtera of the Republloo# 2exen,a gam,“‘roP edtist1ow1 purposei, xa le&elature,the Court, e?tsr ststlng 0r the ~Stiato over it8 pmpe~y, atstaluded~ Although not Uwol aprivateosrijor~tlon theokiraa Of Icing Y. shep?@i?d, 157 8. 682 (OrPorP4fuaeddf thP@w addltiOaalll.@tap0nthiaprObl~i IntiUa ~&Seth0 fWIitent1~ wea nmdethatthe abws quoted oaoati~utlaaal pzwvbbn prohibited the stutefroa over; the title,oqo and owtouy of stof6 lad to the Hat Servfqaof thb%dnval Oapsrnrpsnt ?or PaPk, we en a Riltfonel In isj~otlng thitr“‘aicIltenttotha court quoted?rom8n&adoptedthe 0 iaieno?the cpeariea~ee4qreme CotlPtin Halme 01 Peay,159!karh3El,17 8. W. ,(2d)901, aa~ s0nm8 *Woreover,a traaefer of the titleto landa S&m HOII. C. H. CsameSS, Page 7 Maa United States. The paeel.ngof thle property From one government;to the otitartivolwieno I.osa to the citizen or taxpayer. The o3ajeotof the uon- trt cl. invoked wa3 to prevent a loss t0 t& its cP0dl.t. Bere not only can no loss result, but the sttits.OOX33%deFed830a pOliCloa1 Sllt;tty,i3 re- rights tmd privileges of tbfs gr be presoxvsd to the people 0,'Teriue3see.I "We tM’;I..‘.k this decision is souzd and shcxld be rOu0vtsaas the law of thi.3 aa3e.” @@233ie added) We feel that the cumulativeei%ct of these deoi&ms is to demonstsstethat the lMb,bitlonsof'ScctLon 51 of Artlole III or the Constitutionare oper&Lve only Vrzanthe grant hy the State ie, or oan be;a diversfanof Statepropertyux Sunde to nonqwJPnmenta1 purposea. Conversely,so long as the it is itma gmrnmerital prpcse;sdl haa onlybe used $3~ auohpur- pow, we r3w that this SsctQJn is Lnopexative. Iitthe iIL3tSat81tUZtfiOfL, the Se?il~.+nd Fwnda- iSslit& tion is but 3 joint'oustedfan of the fund,in*ehtlciti,posaas- ;Lz ast ort3ythe povero of a jolnt trusteewith qwspootto Xarsover, the Fo?andatlan arayexpe& auoh faoa oalo for g& ental purpoeea a& nosymke suoh srpe&l.tw?esonly under the dirootlcn a~nd tith the appmrel OS the Btxzrdof Xsgenta o? tha lJla-5rslty cr Texea. In au& a sftuatly the eppzwpx$a- titan2;~th.sLsglblature connot be said to be a gratuitousdo- n&ion to a corporation. Retitheroan it be se&d that the spp&'o- pxistlozidlvcst% tha ciblsfm and tazpqem 09 !k.as of the r@ht or use 0r th3 furd OF fv4pal.mtb3f.r bsneitoiel rights theveto. Under ths teme oi the 8 propxiatfon, allop3avl.l.ege8 of the State titb respsce to the iuad are pruaerved. Apart trOm Chh,mttera herotoiored%smssed, we 48~ peroelve no smlous qusatfons vMah al&t be mLsed agaC%st the oonstitutionalityof the Act urrderdlsoussion. Cvtly, PU are wspeotfullg advfaedthat the At& Is Ln all wap v?Ciid and oonstltutional. !l!hLooonalu8ionrenduP unasaesaaryan 811lR7yn to your iaquLry as to the titwe of the aotion whiah ehould be tabn lf the Aat were to be i%%Idu!momtltIltio~~. Hon. C. If. Catmess, Pegs 8 thet the foregoing iullyanswersyour lbu8tln.g lnquiky,ue era Your0 very truly