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