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
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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." *
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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
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