December 13, 1957
Honorable Robert S. Calvert Opinion No. WW-311
Comptroller of Public Accounts
Capitol Station Re: The authority of the Comp-
Austin 11, Texas troller of Public Accounts,
under the Constitution of
Texas, Art. VII, Sec. 17,
as adopted in 1947 and 1956,
to authorize remittances to
certain colleges of money re-
ceived by the State after
December 31, 1957, from taxes
theretofore levied by the
1947 amendment, when such re-
mittances are not to be ap-
plied on notes or bonds issued
Dear Mr. Calvert: pursuant to such amendment.
Your letter requesting our opinion presents the following
question:
"With respect to Section 17 of,Article VII,
added as an amendment to the Constitution of
Texas on August 23, 1947, will it be proper
for the Comptroller of Public Accounts to
authorize remittances to the governing boards
of the colleges named therein of money re-
ceived by the State after December 31, 1957,
from taxes levied during the initial ten-year
period ending on said date, when such remit-
tances are not to be applied on notes or bonds
issued pursuant to such amendment to the Con-
stitution?"
Your letter also states:
"The experience of this office indicates that
over 60% of the money from taxes levied by the
Honorable Robert S. Calvert, page #2 (WW-311)
original amendment for the year 1957 will
not reach the State Treasury until after
December 31, 1957. In addition, for several
years after December 31, 1957, the close of
the initial ten-year period, money from
taxes levied during that period, but which
were not timely paid and became delinquent,
will come into the Treasury."
Section 17 of Article VII was added to the Constitution of
Texas on August 23, 1947; for convenience it will be desig-
nated as the "1947 Amendment." A subsequent amendment was
adopted on November 6, 1956; it will be designated as the
"1956 Amendment."
The 1947 Amendment authorized the issuance of bonds or notes
by the governing boards of certain named colleges "for the
purpose of acquiring, constructing and initially equipping
buildings, or other permanent improvements at the . . .
institutions . . .)I,such bonds or notes to be secured by the
pledge of a special State ad valorem tax on property of Five
(5o) Cents on the one hundred dollars valuation as specifi-
cally allocated in the amendment on a percentage basis to the
respective colleges.
Subsequently, an opinion of this Department (A.G. Op. No-V-799,
1949, citing A.G. Op. No-V-798, 1949) construinq only the 1947
Amendment, concluded as follows:
"The proceeds of the Five (5$) Cents tax
levied by Section 17 of Article VII, Con-
stitution of Texas, may not be withdrawn
from the State Treasury for any purpose
other than payment of principal and inter-
est upon bonds or notes authorized to be
issued under such constitutional provision."
But the 1947 Amendment will be superseded or repealed on Janu-
ary 1, 1958, by the express language of the 1956 Amendment and
thereafter authority for the issuance of bonds and notes under
the 1947 Amendment will be non-existent. Nevertheless, the 1956
Amendment expressly preserves the "allocation of the revenue"
. -
Honorable Robert S. Calvert, page #3 (WW-311)
made by the 1947 Amendment and specifies that such allotment
is not to be affected "in any way" by the provisions of the
1956 Amendment.
The allocation of funds in the 1947 Amendment begins in the
following language:
"Funds raised from said Five (Se) Cents tax
levy for the ten (10) year period beginning
January 1, 1948, are hereby allocated to the
following instituzns of higher learning,
and in tbe.following proportions to wit:
. . .U (Emphasis added)
There follows a list of the institutions and the percentage
of the total tax collections "hereby allocated" to each.
The 1956 Amendment provides:
"This amendment shall be self-enacting:
provided, however, it shall not become
operative or effective upon its adoption
so as to supersede or repeal the former
provisions of this Section, but shall
become so operative and effexve on
Januaryx, -,
1958. . .- . , nor shallthe
provisions of this amendment affect in
any way the prior allocation of the Eve-
nue for the ten-year period beginning
January 1, 1948, as heretofore authorized
by (the 1947 Amendment)." (Emphasis and
matter in parentheses supplied)
In order to ascertain the intent of the electorate in approving
the adoption of the two amendments in question it is necessary
to construe them together. The 1947 Amendment clearly pro-
vided that the tax "funds are hereby allocated" to the col-
leges named; the 1956 Amendment just as clearly provides that
such prior allocation of revenue shall not be affected in any
way.
Honorable Robert S. Calvert, page #4 (WW-311)
The intent is clear to the effect that the colleges named
in the 1947 Amendment are to receive, as allocated, their
respective shares of all the tax money received, or to be
received, by the State Treasury as a result of the levy
made by the 1947 Amendment, even though on January 1, 1958,
their power to issue bonds and notes under the 1947 Amend-
ment will no longer exist. Under no other construction
could the provision of the 1956 Amendment be given effect,
wherein it is stated:
II
e .nor shall the provisions of this
. ,
amendment affect in any way the prior allo-
cation of the revenue for the ten-year period
beginning January 1, 1948, as heretofore au-
thorized by the provisions of Section 17 of
Article VII of this Constitution as adopted
August 23, 1947." (Emphasis added)
It is apparent from the language of the 1947 Amendment that
the tax was levied on behalf of the colleges for the purpose
of their acquiring, constructing and initially equipping
buildings, or other permanent improvements at the designated
colleges. It is fundamental that money from taxes levied
and collected for a certain purpose may be expended for such
purpose only. Carroll v. Williams, 109 Tex. 155, 202 S.W.
504 (1918): Spears v. City of South Houston, 137 S.W. 2d 197
(Civ.App. 1940, affd. 136 Tex, 218, 150 S.W. 2d 74).
You are, therefore, respectfully advised that your question
is answered in the affirmative, the remittances to be made
to the colleges named and apportioned among them in accord-
ance with the allocation made in the 1947 Amendment, and
such funds are to be used by the colleges exclusively for
the purpose described in the preceding paragraph.
SUMMARY
The Comptroller of Public Accoun,ts may au-
thorize remi.ttances to the colleges named
in ,the 1947 Amendment to the Constitution
of Texas, Article VII, Section 17, in ac-
cordance with the allocation therein made,
Honorable Robert S. Calvert, page #5 (WW-311)
of money received by the State after Decem-
ber 31, 1957, from taxes theretofore levied
by said 1947 Amendment, although such re-
mittances are not to be applied on notes or
bonds issued pursuant to such amendment.
Very truly yours,
WILL WILSON
Assistant
APPROVED:
OPINION COMMITTEE
Geo . P. Blackburn, Chairman
H. Grady Chandler
J. C. Davis, Jr,
John Reeves
REVIEWED FOR THE ATTORNEY GENERAL
By: James N. Ludlum,
First Assistant.