Untitled Texas Attorney General Opinion

747 OFtiCE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN iIonorabka Obel L. LICAllSter, ChalrIMn coamltt88 on Sate Affairs iiOU58 Of ~eprf358IltatlV8~ irorty-ninth Le~lslatura Austin, Texas Dear Sir: 0plnlon HO. O-6168 H8: Conatitutlonallt ~oufletter 0r April 27 iO5 Of this d8~rtn8llt all t0 ~111 ido. 653 1s aa follow ort and maintain e Conmittee that pas-d appreolate an opinion at a8 early date as prao- onceming the abOV8 pointed out natt8r.m ;;o. 653 la as followa: *A all1 "To i3e &titled *An Aot authorizlq any county, olty or town now or hereafter inoorgorated UIId8r the gen- era1 laws or thie Stats to organize, opsrate, aupport and maintain a Board of 748 Zonorabla Obel L, l:oAlister, pa&e 2 County Develogllant, fiovrd of City Develop- ment, Chamber of Commroe, or other similar organization; authorlzlng the levy or 43 tax for suoh purpoeea, provided such tax levy is authorized by a majority vote ot the property tax 2nyiAg qualiPied voter6 of such aounty, olty or town at a;l el8otloA held ior auoh purgose; and declaring an 8OI8rg8ACy. "Liection 1. Any county, oity or town now or hereafter incorporated under the general lawa Of thin L.&ate, may, in addition to all other powers now pOSa88S8d by Such county, city or town under the general lawre of thin state, b8 authorized by proper OrdinaAO8 paesad by its &overning authority, to organize, operate, support and maintain a iioard of Couty Deveiopment, a aoard Of City DevelopneAt, Chamber of Com~rce or slmllar orZanlzatfon davoted to the growth, edvertlsement, deY6lo2meAt and lm- prOV8585t Ot 58id GOtllIty, Oity Or tOW5. “380. 2. For the purpose 5)at forth in Seotion 1, of thla Aat the governing authority of suoh county, city or town is hereby authorized to levy a tax not exaeadiry two oenta (2#) On the One Hundred Dollar valuation or the taxable property of auoh county, city or town provided such tax levy la first au- thorized by a majority vote of the property tax payins qualified votere of the county, olty or toG;n at an election called acd held for euoh plrrpoae a8 provided by law. “380. 3. The fact that many oounties, oitism and townS.have no adaquately maintained SAd Supported organization5 devoted to tha growth, adVertiSemeAt, development and goners1 improvement of said oountiea, cities or towns and the faot that suoh aA organiza- tion WCQAU be very beneflolal to the growth and general improvement of oountles, oltlee and towns crsatea an emergency and aA imperative public ~eoes- Slty that the COABtitUtiOAal kid.8 reqUiri% bill5 b8 read on three several day8 in saot house be, sad the sa3 18 hereby suspended and this i,ot shall take ef- fect aAd be in force lroa aAd after ito passage and it i5 80 enaoted. 749 Ionorable Lbal i.. IJoAllstar, Pat38 3 "-end Uousa Bill No. 653 by strikla& out all b81OW the 5AaOtiog ClaU58 and substituting iA li5U t!i8rGOf the fOllOWi5g: "Zeotior; 1. Any county of this State, and any city or town now or herearter incorporated UAder the general laws of this State, ma$, in addition to a11 other poWera now pOaa8aa8d by auoh oounty, oity or town under the general law8 of this State, be au- thorized by proper order pasasd by the Cozmlsslonerle Court of suoh county, or proper ordinanoe paesed by the govsrning authority or auoh olty or town, to organize, operate, au&port and maintain a .3oerd of COUAty D8V8lOEJ8eAt, a Board Of city DeVelOpcleAt, Chamber of Commaroe, or a&nZlar organization devoted to the growth, advartirrment, d8V810pm8AtS improve- &at and promotion of the trade and oomme~ce general- ly Of auoh OOUAty, city Vr tOWA. “240. 2. For the porpaaa ast forth in Section 1 oi this sot, the governing authority of such oounty, oity or town la hereby aUthOri28d to lavy a tax not srceadin& two (2) aoAt on tha One Hiundred Dollar valuation 0r the taxable property or such county, olty or town, provided auoh tax levy la flret au- thOriZ8d by a majority vote of tL8 property tax pagiA& qualified voters of ths oounty, oltg or town at an ~elaotion oalled and held for euoh pur- pose a8 provided by law. "Sea. 3. The iaot that many counties, oltlea aAd tOWA have no adequately maintained and aup- gorted organizationa devoted to the growth, adrar- tiaement, i&iprOVem~nt aAd promotion of trade aAd ooaunerco~cAc!ralLy of 8nld jounties, oltiee and toWna, and the faot that such an or~aAlzatloA would be wry bensfiofal to the growth and general iaprovement of courities, aitias and towns, oreater an emergenoy and aA imperative publio necessity thot the Co5StitutioA.91 Sule r8qulriAg bllla to be read on three several days in 8a0h iiouse be, and the anme ia hereby suspended, aAd this Act ehall t&e erreot and be in ?oroe from aAd arter it6 paS8ag-Y and it ia a0 8n6Ot8d." 750 lionorebla 3bel L. Xcirlister, paua 4 After carefully conaideriny your request in connea- tion Hi1t.hvarious provisioos of the Constitution aa nartiomd herein, iye cannot categorically answer your question aa to the constitutionality of said liOUs6 Biliho. 653. iIowever, there are serious constitutional questions inVOlV6d to whioh we will diraot your attention. saotion 1 of Article VIII of the Stat6 Constitution provides in &art: nT6xation shall beaqual end unifonnmw Seation 3 of hrtiale VIII is: *Taxen shall be laviad ard oollsoted by general 1~8~s aAd for publio purposes only.* SeotiOn 52 of Artid III Of the Stat6 Constitution ia in part 66 fOllOW61 'TN Legislature shall have JO power to authorize any county, city, town or other politiaal coryoration or eubdivision of the Stat6 to lend its oredit, or to grant publlo money or thing of value in aid of, or to any individual, asaooiation or corporation what- 606V62. .e ln Seotfon 3, Artiale XI prohlbitr any oounty, oity or Lnunioi~llty from making ariy appropriation or donation or in any rise loaning its amait to any private aorpor6tlo5 or aaaooiation. -' It will be ooted that Souse Sill 50. 653 expressly authorizer, any aounty, city or towm now or hereafter incorpora- ted under tha general lawa of th6 Stat.0 to OrganiZ6, Oparete, support and maintain a Board of County Development, Board of City 9evelopaent, Gha.6ber of ComeroB, or other similar or- ganization devoted to the growth, advertisement, development and iaprovament of said oounty, aity or town. Should a ocmt:, city or town atteinpt to aid a CharPber of Comeroe or similar organization eat&g aa ec $nCepandent aesoolation, auoh act or aots would contravene Sootion 52, Artiole III of the State Constitution. It has been held by the suprem Court fn the case of aavis et al vs. City of Taylor, et al, 67 9. V. (26) 1033, that a horn rule city had authority to 6Xp6na mar for th6 purpose of advertising. ilormrable (Ibel L. Lo.Alistsr, peea 5 Je $uote from the case of Davis vs. City of Taylor, supza, as follows: “Art1016 8, Ssotion 3, of the Constitution provider: **Taxes shell be levied and COlleCt8d by general laws and for public pur?oeea only. * “It is well settled that maioipal corporations cannot Inposes taxes for other then pub110 purposes. *The ksendment to the charter of the oity of Taylor set aside oertsin funds to be devoted to *the growth, advertismaent, development, improve- mnt and inomase of the taxable values of said oity.’ *In disouasing rhet is a yubllo purpose, Xo- ~;uillIn on biunioipel Corporations ( 26 Ir;d. ) vol. 6, p. 292, @ 2532, says: What is a gublio purpose cannot bs answered by any precise definition fur- ther than to state that if an object la beneficial t0 the inhabitaate and dimctly COM6Ctea with the looal governsent it will be considered a pub110 purpose. * “The supmum Court of Illinois, in Taylor va. Thompson, 42 Ill. 9, defines a *tar for corporate purpoae8* 80 followrrc *iYe ney define this phrase to mean a tax to be expended in a manner whioh ahall promote the general prosperity and welfare of the munloipality which levies it.* “Iti would not be of value now to attalpt to thoroughly define or diaouss what am pub110 pur- poses. X0 exaot definition oan b6 raade, YUffiO9 it to say that, U&e88 a aourt oan say that th6 purposes for which publJo funds are expended are alearly not publia purposee, it would not be jua- tified in holding invalid a legislativa act or provision in a oity oharter providing funda for suoh purpose 8, WCooley*a Constitutiohal Limitations (5th ad.) p. 155, saya: ‘But what Is for the publio good, and what am public purposea, and what does properly oonatitute a public burden, are questions which the lti~:lslature:nust dLcido u;on its own Judgmnt, aild iii rrs;ect to ~l;loh it is vested with a large di..cretisn iv.^,ichconnot be controlled by the oourts, axcept, parhapa, :here its action is clearly eva- sive, arid w>ere, uder pretenca of e lawful eu- Lhority, it !ias aesuaed to exaroise one that la lbGZl~:.f ul. ;,here the :me.r which is exercised is lrcisl>tlve in ita ctiaraotsr, the oourta can en- force only those 1131tatiohs which the constitu- tion i.qosas; not those inplied reatriotiona whioh, restine in theory ooly, tha people have been satis- fled to leave to the Judgmmt, patriotism, and sense of Justice of their represantatives.’ "'Pii principal oontention in this suit is that it is not a public ,purpose ana not a 3uniaipal pur- pose for th6 city to 6pend its funds for advertir- ing the advantages of the oity, “It has generally bean held ~that appropriation6 for exhibitions of the reaouroea of a partiouler locality at state or national expositions are not subject to the objection that they are not aad6 for e publia purpose. The Suprem Court of California, in the aase of Deggett v. Colaan, 92 Cal. 53, 28 P. 51, 52, 14 L. 2. A. 474, 27 Am. St. aep. 95, held that an appropriation for the purpose of *s.motiag: build- isg and collecting end naintaining an exhibit of the produota of the etate * et the ~~orla*8 Fair, coluin- bian tixposition at Chloago in 1893, was not unoonsti- tutionel on the ground that it was not for a pub110 use. The Kentuoky Court of Appealsi, in the case of I:ormm v. Kentucky Board of Slanagera, 93 Kp. 537, I- :i. 901, 18 L. 8. A. 556, held that an approprfa- 20 J. tion to exhibit the resources of that stat6 at the same Coltmbian i;xposition was fpr a public or govarn- manta1 purpose. The Supreme Court of Tehn6ssee, in the case of Shelby County v. Tennessee Centennial ,xpositlon Coapary, 96 TIM. 653, 36 s. iv. 694, 33 L. .3. A. 717, held that an exhibition of the resouroea of a county at a state centennial exposition la a comity purpose within the seaning of a conetitutional provision suthorizing taxation for county purposes. In this last ease there was an exprese grant of power by the General Assembly to levy nuah e tax. 3s can see ho ~+.aterlal differenoe in the ultimte purpose of an exhibit of t&e resourcas of a partioular looality at en exposition end the zor6 modern method of present- ing the advanta&ea and opportunities of a oity, oounty, Lonoroble Ob81 i. LcXlistur, pnge 7 or state, thrOu& neuspapor or ;?a&aZihe 8dVortiS- 'ing, ond similer ch8nn8ls. "In the recent cese of Sacramnto Cha,nbnberof Con- 30fCB V. Stephens, 212 Cal. 607, 299 r. 728, the Cuprel;la Gourt of California upheld a contract of the dtg 02 SnUrRn8ntO -which provided for the ge118ra1 nd- V8XtitdIlg of the Cttr. The Ch8ft8I' of the city Or Saol'a;nehtO spt9OifiG8lly provided 40r the appropria- tion 0r the funds or the oity for such purposes. In the course or the opinion, Chier Justice i,aste USUP the rollowing,languag8: **In answer to tha contention theit the contraot between the city and the Chainbar of Cosmroe does not relate to a public purpose, little need be said. In oonsidering a soaewhat sis?ilar puastlon whioh arose out of a danand on the state oontroller to pay a olaix oontraated and audited by the Calirornia %orld*r pair C0~UUisSi0n in COMsOtiOh with the cOUCitrUetiOn Of build- ings and the naintenanod of an exhibit of the products or the state or calirornla at the :$orld's Pair colim- bian axpOsitiOn held in the city of Chicago, St&s or IllinOi8, in 1893, this OO& Said, in DO@$itt v. glgn, 92 Cal. 53, 57, 28 P.51, 52, I.4 L.' a. A. 474, . St. Sep. 95, "that what ia iOr the publio good and what are public purposes 'm-8 questiona which the lagislatuw mat dsoide upon ita own judgmnt, in ree- peat to whioh it is V8stCid with a large discretion which cannot b8 oontrolled by the oourte, exoeptt * perhaps, Wh8r6 ita aotion is clearly avesivo. Wham the power which is exercised is legislative in its oharacter, the courts can enforce only. those lixitationa whioh the oohstitution iaposae; not those implied re- SttiOtiOllS, whloh, resting in thdOr$’ Only, the people hare been ratisfiad to leave to the fudgmnt, patriot- ism, sha sense or just1064 of their representatives.* Cooley'a,Conet. Lila. p. 154." *'ifurther:aors , HB are or the view that, bj oomo~ oonsent, it is now @merally held to be vi811 within a public purpose ror any given locality to expend publio funds, within due linitatione, for advertising and otherwise oslline sttantion to ita natural advan- tagas, its resouroesi, its enterprises, and ita adapt- ability for industrial aitsc), with the obdeot of in- cresalng lta trade and oommroe and of enaouraglug people to settle in that pertiouler oomauhity.g saora- .?lantO Chamber Of Comeror v. Stephens, 212 Cal. 607, 299 P. 728, 730. ” .~:c,~uillin,id :,is I.532 :3Um&itiV6 ;Ul;;le,?ElKlt to his rorh on 2:unicipal Cor;orstiors, at pa&es 062, 663 says: ';llthough recent decisions doolare advartis i ng is 6 yublic yurpose for '#hioh the tax- ing >ower isay be exercised, to authoriza tka levy of any tax for this purpose or ap;Topriate public moneys therefor, 8x;jreas grant Just axist, CitLier statutory or in hoillerule oharters.' *';lehaV8 been unable to find any 08% in ti:S reports in whioh there was an cixpress Grant Of power I‘or the purpose of edvartiaing, that the court has not upheld the power of the oity to appropriate. the ~loney therefor and ;hevy a tax to dzfray t&v ex?ensa. *In this case express authority in the hom8 rule charter does 8rist, ard its excrolse ia not a vlola- tion or any provision of the Constitution or the .seneral laws of th8 state, and can reasonably be in- cluded in th6 general po%ers and purposes Of the municlpel government." In the case of Ziller et al VS. ill F8SO County, 150 S. ,i. (26) 1000, the Supreme Court held krtiole 2253b, Vernon*8 Annota- ted civil Statutes unconstitutional on the ground that said statute contravenes provisions or LX3otion 50, Article III or the state Constitution. This statute authorized all counties in this titate heving a population of not less than l4.5,OOO inhabitants a:&d not more than 175,000 inhabit8nt8, and containing a oity having a population of not less than 90,000 inhabitants, as s3.o~ by the last preceding Federal Census, to levy a tax of not over rive (5) oents on the valuation or ~..100.00 or ouoh county, for the purpose of advertising and promoting the i;rowth and development of said county and its county seat; :;rovidad that before the Comtaiasioner'e Court of such counties oould lavy any tax for suoh purpose, the qualified tax paying voters of the oounty rvould have to authorize the Jo&nissioner*s Sourt to levy such tax by a majority vote. It ;ias said la the case of :;iller et al vs. ~1 ~aso ;;ounty, supra: “GUI holdkit; th8t the AlIt iS void On tke :;rour;ds above stated, renders it 'unrooessary for us to pass on tne otner assignments raised in the briefs.' In this connaotioh, Lowever, iye deem it proper to call attention to the faot that the case of Uavis v. city of Tsylor, 123 Tex. 39, 67 3. ii. (2d) 1033, relied 755 Sonorable tibel L. KoAlieter, pzlge 9 on by defendant6 in error as authorizing the ix;eIidiIj.~of 3ubli.c fU~3.6 for advertising _DUr- ;;oses, dealt ;riitha ho:ae-rule city and not a 00ufity, end that a oity kiay ereroise proprietary fuActions, while a oounty, as a acre subdlvieion of the 3tat.6, can exeroise only ;jovermental Puxc tiOrl&.*' In vier of the Soregoing atatament~q rr;c Suprerae Court, it is doubtful that the expenditure of oolrnty funds for the .pur- pose OS ail~vcrt1flI.y tr,e county i6 a ~:over~~~ntol fuuation, and that o co~:y TOIL.LCbe authorized to ake such cxpecdituree. :;a also direct your attention to the case of Anderson et al v6. City of s6A Antonio, 67 S. a. (24) 1036, Wherein the upreine Court held that neither the oharter ,110~janera law6 &powered cte city of San Antonio to levy a tax to 6dV6rtiEe the city nrd that an ordicanos authorixirg aiioh a tax ldvie:b for such purpose wae Invalid. In view of the foregoing authcrltfes and ae heretofore steted, we are unable to oategorically aua:yer the question un- der consideration. ;le hove called your attantioc to airtain portions of the bill which ai'e p~estio~sbl8 ir.sofar sa the oonstltutionality of the Act is ooficsrtied.