OFFICE OF THE ATT’ORNEY GENERAL OF TEXAS
AUSTIN
Bon. John D. Reed, Cwmlrra1on.r
Bureau of Labor Statlstlas
Austin, Texa8
Dear Sir:
This la In reply\Sxyd$qdst ror an opinion,
uhloh reads as iollms~
dlotlcm of - foxier, 6nd It irr
isions et this law.
r0r a 3$ gross re-
rraPP
exhibltlonr0r
xoeptlonn. In order
e provisions or thlr
dvlse me whether or not thl8
tax 8hould be oolleotedWord
ganlzatlons oonduotln5 boxing
lbitlone ror the pnrpooe or
artlolpants ror entranoe in
tional oonteclb,rhereall or
part of the prooeeds rrom suoh oonteats am
used ror purposes other than the development
or amateur athletloa."
The statute you rater to ie oodifled a8 Artlole
611-6 of Vernon's Annotated Penal Code oi Texas. -It wan
R&orable John D.'Reed, Comlasloner - Pago.3
originallypassed as a part of Rowe Bill 832, Chapter 241,
at the Regular Session of the Forty-third Legislature,in
1933, and beoaae eZfeo~lr% August 29, 1933. Said House
Bill 832 made wrestllfngand boxing matohea legal, and au-
thorized the Labor Coamlsslonerto regulate them by re-
quiring eartaln permlte and lloenaee as a prerequlslteto
the holding of suoh matohea; and said Bill preeorlbeda
three per-oent (3%) gross reoelpta tax on the sale of
tickets to auoh rmatohea. Seotion 6 of the Bill presorlbed
the tax, end It la that part that la oodifled as Artlole
614-6; V.A.P.C.
Said Bill was amended by House Bill 28, Chapter
2l, at the Seoond Called Soealon of the Forty-thirdLegla-
lature, uhloh awndmsnt beosme eiieotlve IEar28, 1934, end
whloh Is still In effect. Said Artiolo 614-6, V.A.P.O.,
as amended, reads as follms:
CEaoh Individual; rim, olab, oopsrtnerahlp,
aaaoolatlon,oompany or aorporatlonwhloh mnduota
an7 rlatlo m&at, boring, aparrlag or wmstllng
satoh, aonteat or exhlbitlonwherein the aonteatanta
or partioipantareeelre a atmsy mmuneratfon, purse,
or prlie ec&ralent tar thelrperformanoe'or aerrloas
an adm%saiom.reeis aharged or
'Insame, and/or 'iwhhsfe
reoeived, shall tornlsh to the Pqal~al~ner O? Labor
Statist106 at Austin, Texas, within iarty-eight (48)
hours aft& the termination61 such matoh,,oontest
or axhibltlon,a duly verified report thereof show%ng -l
the number or tioketa sold, the various prioes re6elred I
therefor, and the amount or gross rqo?ipts for the
total nwnber of'tlsrketssold tharairor, and at the
same time shall attaoh to the Coaaissionerof Labor’s
report legal tender og make proper form of money order
or exchange payable to the State Treasurer in the
aount or tdx ror three per oentum (3%) 0r the total
gross reoelpts from the sale or tlokets or admission
to suoh contest, rhloh tax shall Abedepositedto the
sredit of the *Boxing and YIrestlfng %IfOroernentFund.' .'I
No other tee or tax either general or .loaal,than as
herein provided, shall be assessod~against Qr leTled
upon an;rsuch pVltoh,eontest or exhibition,oontestant
ok'msnager,or psomoter thoreot.R
D. Reed,
Honorable Jo'ohn Comafealoner - Page 3
me e*ibition* YOU ask about are elearlp sub-
jeot to the tai'PresQribe6in skid A&i&e, -88s there
1~ * aPPlic&bls eXOa&tion in the lau. The 0dy Possible
sX0sPtiOn that has oona to our attention ;s floss con-
current .-olut+n NO. 40, passed by both the jjousean&
ths Senate at the First Called seesion the Forty-third
0r
La5ialatUa, whioh met room Septanzber 14,;1933, -til
October 13, 1973. fiat resolution is oodiried 8s Art&ale
614-17b 0r V0km*a Annotrttedvenal Cods. It reads in
Its entlretjras follows:
“-gm?sAS ~ At the Regular Session Of the FortF-
third Legislature,House Bill Eum!er 832, Chapter
2w, hots or tga Regular yaa pnaaed ?Y,theeLbBis-
,;
lature or the State or %xaa, rega.lati%and am-
tr0iii33g wrestling and boXink wlthk'the Stata 0f
TaXas; -6
*%mmw, It was net the fnteutioa'orthe
Legielature of the Stata or Tows ia paaaiw said
law, ror the protlaions thsreor to apply to State-
wide iti national sports bodies aonduatlnga-
teur fournaiaantsIn these sports where au& aports
ara not oonauoted ror prorlt end the ps~lslpanfa
therein raoelve no rsmmsration r0r part~f&atWi
therein; and
*;qg&&S, There has bean soBI UnOOr~intY
existfng in the Pnindsor the Lnbor C~mam3r
sna other orflcere -ofthe State oharged with the
enrorosmentor said laws aa to whether Or not
the prwisioas thereof apply to eXhibi*iQnaheld
Honorable John D. Beed, comaiesiimer - Pagu 4
by sseooiatlens or iAUl~iduala not ror prorlt
where the partioipants therso? reoelvs A0 ramim-
eration for partioipating theruin, euoh aa ox-
hlbitlona held for the purpose of qaalltying
individuals to enter National ana Olympia oo~pe-
titiorrs;and
'%HEREbs, It wan AOt the BBASb Of tbio LO(&5-
lature, iA GmaotiAg said law, to have t&3 prod-
siona thereof apply to auoh sports; nowthers~ore,
.beit
wZ330LIj3ED
by the House of bpreSeAtativSa oi
the State 0r Tuxas, the senate or uls,stete Of
Texas oo~ourrba& That the ~~88it?ilut Of hbor
Statiatdoaor thu stata or Texae and all other
orricers ehargud with the en$oraa+at of the pro-
ViaiOACr or~Hoit8*Bill uamber 832, Uhaptclr %l,
Asts of the'R&xlar -88iOA Of the ~o?ty+hird
Legislatuxi, be dlrooted and ther are herebx
dirooted to~refain from mforoily; the Prwi-
8iOAU Of said bt as -inet .W l"=~Fp; fi=,
02 a88OCit%t$OAOf p%rSGA8 OQ--tiW -7~ OX-
hibition or austling or boxiag not Ser profit, ,:
or the partloipe&s thsroini where 8ush paitio- I:.,
ipants are not remirlng aAT re=ummtioa, rheA
such OxhibitioA ie held SOlelY for the PUrPOSO
of qualifying the partloipanta therolh trtuntar
any statewide, AatiOMl Or Cl$+=PiOtOUCAaA.At,
WVOA though addaaion MY be Ohari3ed~ order
to dofray the xmeesaary eXPeAs0 of holdiag
SUOh Whibit~OA."
a the fhst place WU do AOt bellam th8 fart
eituat~on you a& about OCGOII within the SXeuptiOA reaited
iA this resolutibn. no @zoOptiOA rOOited iA the rOAOlUt%OA
1s that the ast g+bouUlAct km eAforOO6 iA those iAStaAaMl
RhOA all of the following is true, to-wit, I. that the
partioipanta40 not reoeire w rcrmuserat~ifmaAd 2. that
the "exhibitionis held EOlOlY ior th* P'W"'~e OF puatl=Yi%
b
828
: HOAOFabl% John I).Reed, Ut%anls8loner
- Pa&a 5
the partioipantsthereti to enter sny statewide,aatloaal
Or O~J'i=QiO tOtlPASlW3At,w 8~43~ thoagb admission may be
oharg%d to defray ths expense 0s holding such %XbibitiOA.
In this ~8% you state that *all or part of the prooeeds
from suoh aontests are usbd for purposes other than the
d%velopm%Atof amateur athletlosm. You do not stats the
exfmt AatUr% of the purpose for whiah th6 prooesds %rO
used; but, if they are used for purposes other than the
der%lopm%ntof amateur athl%tlos It IS oerkln that they
are used for some purpose other than qualifyingthe par-
tioipantstherein to enter a statewide,national or ofymplo
tOill-ASWXlt. If the proaeeda are used for auoh other pur-
pose, we think the exhibition is held at least partly for
suoh other purpose. That being true, the %xhibitioA does
AOt 0-6 Withillthe %XOOptiOA r%Oitsd iA the reSOlUtiOA,
and the oontast is aubjaot to the tax.
IA the S%OOAd Alaoe wo will point out that
House ConaurrantBOsolutioA do. 40 (Art. 6L4-17b B.A.P.C.)
might not be erreoti~e as a law IA that it does net oopply
with the'requisstes of a bill aa prescmlbedby the Con-
StitUtiOA Of TSXSS. IA the 0880 0s E3tional Blsouit 00.
T. Stat%,'129 S. ?p.2xzd494 (reversedOIIother pointn,
134 Tax. 293, 135 8. Wi 2nd 687). the A-tin-Wart Of
Civil Appeals, speaking through Juatloe'Balpgh,'saidt
I~,
"It ha8 long sin09 bsOA ssttled that
bills mAat 0Odid.A the snaoting OlaoSO prs-
esrlbed IA 800. 29, 0s Art. 3 0s the consti-
tution, have adeqaato titles, and oontaSn,but
OA% subj%ot.,+?rAOA'sAM. St. COAOt. SO?. 35,
Art. 3. Nowhere, however, do we find my ax-
pr%sS protislOA.ikthe COA8titUtiOAr0qairtngC
that r+BSOlatiOA0, requiring ths aOtiOA Of both
houeee thereon, and or the Bovornor,foUow
the same ooaraa in their parrsageas bills g%n-
erally, Const. Art. 4, See. 15; and in SQlpB
iAStAAOW3 may hare the roroe and 4dreot 0s a
law, they are not ~eoeuearily to be treated
as laws. &orahe~ v. Rollins, Tex. Civ. App.,
79 s. 8. 26 672, writ dlsmlased. The Conatl-
tUtiOA itseli pplaoesbills and r%solutionaiA
separate end diStiA%t eat%@ri%s. 540. 34, .~
Art. 3; State v. Dalesdsnirr,7 Tex. 76, 94;.
EenembLe John D. Bee&, Ccmmlaaioner - Page 6
QOAh,y V. Texas DiVi6iOA Of United Daugh-
ters 0s the conreaeraoy, Tex. Cir.‘App., 161
S. K. 2& 26; 39 Tex. Jur., Seu. h, p. 12,
tie. 30, Art. 3, providss that: *J?olaw
shall be pa6a%d, exoapt by bill,*~sto. Xan-
ifestly the enaotlng alauso rsqntid tox.*all
lbwf oould not apply to suah resolution.*
IA the oaau or eonley t. Texas Dirision 0s uAited Daughters
at tha ~OAfMitWCMY. 164's. W. 24, the Austin Court of Civil
Appeals aafdr
Vhe ohiaf ~6Latinotioa between a raso-
lutfen aridclaw seams to be that tk6 rctnmr
la used whenerur the leglslatirebo$$ paeaing
it wishes to leazelyerprsss 8A OpbtiOn EU'tO
60116giveitm&t& or thing, aAd i6 aaly,tO~,
have a tsmporexyeffeot cm auoh partiouX6r
thimj;uhllo.~b~~.the latter it is intmded to
pormaAeatlydiWt,and OoAtrol Pebttura AppwAg
to persona al- fhinga la gellerel.”
a ViOW Of t&8 f&it%t Zhot the %XhibftiOnaylM#&Sk,ab@Ut do
not cumm within the l la up tio ruultod n in the rc)aolutJAB,
a6 rirst pointidtit ~above,it is not :neoussaeyfor aa to
b0oide *0rlnit6ly j&6 v6Udity cr the r%aolat~fm'asa
bill. Therefore,Wo are aetoly motioning this seoap8
poiat, and U6 rMdA& OPT deOiSfQA in thla Opinion On
the first POiAt diSOWS@$ above.
our answer to your lnquir~ is that tha groaa
ruoeipta tax preaorikd by Artiolr 614-6, V.A.P.C.,
should ba oolleoted rmrthe orgfudxetion8 ooaduotlng
the exhibition6 de6oribed.
.,
;.. Yours vtw truly
ATTORlK§XQEK?RALOF 'f5XhS
.m pjjf/yp,&*
ceoil c. Ootaoh
And btiiitt