Untitled Texas Attorney General Opinion

IlonorableVi.R. Chambers,Chairman AgriaulturalCommittee Eausa,of Representatives Austin, T E X ,A3 . Dear'Rirr OpinionNo. O-3106 Rer Canstitutianalityof Qousa Bill Do. 138, Forty-SeventhLegia- l&are. We acknowledgereoeiptof your-vaguestfor aur opinionupan'the oonstitutionality of Rouse DILL ~0. 136, now before your cozzaittee.Tht~aapg al:the Dfll acaoapw- ing your request is at3followar "EGJSZB-iLLNO. 136 *To pramote, enoourag6,increaseend 3tinulate the use and ealo of rioe; to promote the.prasperl.ty end welfare OS the rim grawero and producersIn the State of Texaril throughthe oanduuctfng of a publicity,aaZes promtlon.and developmentca5paiRn; ,ba canduot researohin aad develop new uses for rice and rise praduotsito levy and tipoaea tax or assessmenton rice milled in'the State of Taxam, and to protide Sor the oolleationthereof 80 creats'ar?ae dwelopment fund; to createa rice developnmntcomal.s~l~n to adalrristerand to can- tral the rZoe dovelogmnt oamgaiyl,and to gzo- %ide tho pawers, dutiesand authorityand to do- fins the terms of.offioeof mid oocimistion; to provide when end how said lorp ar tax .ahallbe paid and a0iiaati3a;to praviae penaltiesfor the violationof this Aot) to provfda-forcooperation and Joint aatian in aald developmentoa5paign with offioers,boards,oomal6r~lons, departneots or other autharitloaoreatedor which may ,be. lianorable W. R. Chainbe&, page 2 oreatedIn the States ai LouIslanaand Arkaneaa upon whIah &r.ilarpaworB, duties.ana pwposss have been or may be cotierred;to repealall laws or parts or luwa in aoafllotherewith;rix- In&the oiieatlvedate or the Aotl and dealarlng an omergenepc "RIC3 D%VZlxPXEBTCOWi!IS~IOH - SHORT TITLF "Sootionlc That th3.ssbull be knwn and oitod . CommIsJlon Law;' whIoh ahall ae'tho ViIae Devolopnrsnt be added as Ctipter12, Artlola 1654 to Title 4 or the DovIsed Cltil Statutesof Torus. *Seotion26 That there la horoby araat58a a P3ae DevolapmentComaIssIonfor the State ai Torus, whiah shall be aompasedof five persan6,not lea8 than three of wham shall be'rtae grawersand twa of whom famybe rIae millers to be appalntodiar two year terms by the Gavernar or thIs,State with the adviaa and aonaent OS the Senate. fn appointingthe CammIssIon,oonsideratlanshall be ,. given to reaommondationa af persona engagedIn the rice Industry,and na person shall be appointed to meaberehip on the Cammis%Ionwho Ianat afrwtly ftw3rittttsa In oitbar the grawing ox mIllIng ot rIa0. "DEFINITIONOF TEDS& “Section 3. Sliatthe terms u8od In this Aot shall be definedaa iollawst . *The term ~mIl.l.ed rIoet DWUUI rIae whIah haa been hulled and framwhLah the germ and all or a part of the bran hae been remare&.andmay be either whole or broken, aaatod or I.uWatsd. The termwIll also inalude 'brawn rIaev'whIohmean8 rIae that has baen hulled adi tram whiah the gimtland branha'snat been t-tvea, "' *The toma tgrawertor 'rloe grower' ahall noan and Include only those who are aotually engage& In growingaud produaingriae and wha ' &al.1 not be engaged either dIreatlgor inbireotly 2 ‘-.l--'Z .._.i . - ’ Eonorablo 34.R. Chambers,Page 3 or have any conmction wfth the milling of rice exoept as members of a grower aooperativeasso&- tion. 9.h~ term 'rice miller* shall mean and in- OlUde all pm3ons fir,m,und oorporationswho ehall mill rice wklu the State of Texas. "CRWi!ION.'COLUCTIONAKD D.% Cy M?m .*Seetlon4,. That there is hereby assessed a tax or tvrooenta per huhdred pounda on all milleb rice which 15 milled in the State of Texas on ahd after the rirst day or .ug~str a'fterthe Leglelatureof Louialanaand Arkansas 5!1all have adopteda statute~&Alar to this statute,asses51ng.atax or not leas than two oents per hundredpounda on milled rloe in said States and oreatingsimilarOOtiBSiOnSi boards, dapartmsntaor other authorltieain said States having slnilar power8 and pur- poses, or vesting suah peers and purposes in orricers,aoxmlsslon5,boarda,departments or other at#&.oritiss already.created In suob States, "Seption3i That aaZd tax shall be paid by all rkm millers in the State or Texas on all rice m.illed.ln the Stat@ of Texas and ahallbe payablewithin the flrat ten deya of eaoh~xonthfor all rioe milled during the preaedihgcalendarmonth whioh tax shall be remitteddireot to.the Rice DevelopmentCom- mi3sion hereby oreatedl.Any rioe miller faili~ to pay s&l tax wlthlnthe time. speoiiledandas hereinrequired eballpap a peaalty or ten par cent or the amount dU5i plus one per sent-permonth for eaoh apd every rmnth in whlah said tax is not paid, ._ ...' %Seotion6, That the Rice Development Commfesfonhereby dreatedshall have authority to oheok and examinethe books ~a~re0ords or all rise nlllersat all reasonable times dur- ing bushees hours, ana take copies or the sam8, in order that it may colleat the full amunt or the tax herewGler,.andshall Oave .*:,- .;... - tj.~_ po33r to Slla any wit Or uutts or taks :cy Other. nation8 h4oessnryto form aolleationor Fayr,ent or the 3~2.3.The said Cortiasionis author%zsd to make OUOC regulatlodsaa my be nsoessaryto carry Out th4 pzvers vested in it by this ?,ot. -Any pwson refulrod to ketapany recordsor sup::lyz2r.y 5.nfomAat10nfor the ~ur;osasof the computationof the amunt.3 iiue u&3r this i:ct, who wilfullyf'ttlcto keep xoh rrcord3or 3upply suoh fuformtion nhal.1 be guilty of a zlsdo~ manor and upon convictionthereofbe riced not xore than $500, or fnprisohedfor more than six months, or both, tOgetb4rntth "h,eco&s of p~oaeoution. : "Sectfon7. That the Rice Demloyni4ntCo%- tistfon hereby are3tsdshall have full authority to spepd oaid funds 80 collectedin tbe aWnis= tl%tlOE Oi'this Act end ir:the pMJOtfOG Of calas of rice wl rice products,and for rejosrcbin and, devolog~4ntof r4w uaez for rios ICC rice p.r3auota,. and ob&ll oooperateand act jofntlgwith comls- tJ1008,~carda* dspatit;centa or other wrthoritios having siA.lar7ow3rs and purpomm, crosltetlox bp statutesof the States oi uhloh 3%~ be .erz+ated Lou.isi~~~s and Arkaneaa,ana said ~ocey my be expandedin a joint &fort by th4'thxe4state' oo~~&saio~, boaras, dqartffients or authorities. fioaum4 books sna r4cjra3 2bil '04wntu4a 3t all tlmea, refleotingtheoperations of the Con- mission; ad szoh books Ond rscordsshall be avail.- able for public audit and fns~eotion. Woction 0. T-tit:&aidCormnis&i.on shall &?m without pay exoept the mvab4rsthereof sh011 -1. reoelve ten dollars per da for evsry day aotuciUy expsndedin conaeotionniti their duties,as pro- . viaed for aid ,authorizod J\Ct. by thi;ie plus act-1 exgsnseaLnourred,bythen in csnneatioh" . *,‘ with auoh dutiee. ~' .. "ORS'XI~lXQH A.NI"AmmtiITY "Seotiqal 9. That the &id Comnisaioi&all eleot froa among l.taneabera 3 chalmmn, a vioe- 'ob.niman,a aeoretarg,3nd a treasurer;3ny two , .. . . . HonorablePi.B. Chenbers, page 5 of whiah oi'tioss,except that of cheirman,may be held by one parson. The Conmlasioashall _ heve authorityto select a manager and all othar personsnecessaryto carry out and adrnlnister c this Act, in oonnootionwith the Louisianaand ., ArkansesConrsiisziions, boards,deportmentsor other authorities,which msnager and other par- BOILSshall receivesuch solery or compensetion es the Conm~issionmey fix, plus suoh.sxpenseses they may actuallyinour, out of runds oollectsdin the 6dminiStratiOn of this Act. ~Seotion10. net the seid Couixisslon shall have authorityto prescribe foams upon wbloh rice millersshell be requiredto meke monthlyreturns OS the rice milled end sold by them, eAd the menner in whUh such returnashall be medeW "Seotlon11. That this~Act shall beoome 8Sr8otlveon the first day of Augutst after the Legislature of Lonieieneand Arkansasshall have adopteda slmllerstatute,assessinge tax of not less than two cents per hundredpounds of milled rice in said States,end oreating ,s$milercoim~Isalon, Boards,.Depertmants, or other Authorities with siml&~rpowers end purpO8ss. The provisionsot this Seationand oi Section4 end Section7, or eny other Sectionor part of this Act in which the validityof auoh Act dependsupon, or is con- neoted with similareotlon by the ~l,e&vlatere OS Louisianaend Arkenaas,shell be satisfied by the oreationend vestingof such authority in any State Otflcer,Board, Comlssion, De- partment,or other Authorityin the States of l.ouisiene and 3%anses, provldlngthe seae powersare delegatedto suoh Officer,Xoard, Coramisslon, Dapertmantor other Authority, and providingthat a tax is levied of not less than the amoust latiedherein tor suoh purposes. *Sectionle. That the areetionor a Rico DevelOpnentcommissionror the state or Loui+ lena, levyingthe sama tax as here$n levied In thls.stote,.forthe sema pavers and purposes, r aAd vestingthe authorityor the Moe Develop- , ~ . . , . I Xonorable3. R. Chambers,Page 6 ment Coumisaionfor Loulsisaa,under &it,Ho. 112 of the 1940 Legislature,iA the Depertcmntand Directorof ths Departmentof Xgrioulture,the - DePaartmntand Directorof the Departint oi ylnahoe and +,heDePart-antand Dlreotorof the Departzantof Revenueror the State of Louisiana created by Act No. 47 and Act No. 48 of the 1940 Legislature,is within the terms of thlisAot, so that this Aot shall become effectiveon the first day or August after the Laglslatureor Arkansas shall have adopteda statutesimilar in purpose to this Aot, or to Aot Do. lL2 of the 1940 Legislatureof the,Stateof Louisianaand levied a tex of not less than two cents per hundred pounds of milled rioe ror sltilarpurposes. "Seotion13, That all lawo or parts of laws inconsistentor in oonfliotwlth,tha provloloasof this Act are hereby repealed. n§eotlon14, The Saot that presents world ootiitionshave caused a loss of certain roreign markets for rioe, and that the rloe tarmrs;of Texas are in need of establlshihgmre and bet-. ter rsarketaPor rloe and of advertisingto the people of the 1TnltedStates the value of.rioe as n rood,ana its use fn rood producta,and thk urgent nsed that.- advertisingand developmetit program be immediatelysponsoredfor the rios growera ot Texas; and the faot thatthia Aot end the Acts oi Iouisirthsaad Arhahsasshall not become effeativeuntil elmlIar aats am passed by all three states,*hhiohAothas already been paseed by the State or Louisiana, ana the Legislatureof the State ot Arkansas now being in sessionor about to oonvene, createsan emrgenay and an Imperativepublia neaessity. h&~ that the COA8tfbltiOlrP]. XW- '.quiriagBlllsto bsread on three separatb days be, ana tho same is hereby suspended,‘and th5.aAot shall take ef?eot end shalL be in foroe on the dates protidedfor herein after the date .oiits enaotment,and it is so.ea- acted.* At the outset of our oonsitderation of your r&quest 'we are aoatrontedwith the questionoi.srhether the tax and the _*. ._.- '.+._'.L ' . ,>a - _’ . ?onorable W. R. Chm&B, Page 7 approprIatIon of the revenue8 derived therefrom 8z?e for a "pub110 purpo80” a8 requI&%d by the ConBtItutIon of this state. Article VIXI, SeotIoA 3 of the Texa8 Cona*Ituti.on reads aa followsr 'Terxesshall be levied and collected by general law8 end for publia purpoae~ only." Artme XVI, a~otio~ 6 or the codmai~ ~~~~~~~~ : . . *so appropriation for private or In- dividuol purpowa 8hall be made. . . ." , Sub8tmtlally the same factor8 must be considered * In applying each of the foregoing coDstItutIoAa1 limltatlorm and.we will therefore dl~cu~8 them together. We also note here that the portion of the bill levying the tax, and that deBIgAatIAg the purporre8 for wh.lch'therevenue8 therefran may be expended are 80 clorraly related and iaseparably tied togmther that theyoanoot be se@irated 80 th8t.0~0 might stand and the other S&Cl. San Antonio SndepbAdeAt Soh 01 Dlstrlut v. St&e, 173 8. W. 525; 39 Tex. Jur., p. 22 ii9 and jcase8 there cited. This ~ame.pri~oIpls Is applicable to Section 7 of the Bill providing ths several purp08e8 for . which the moneys my be sx?ended. It would h8rdly be p088iblr to say that if'OA6 of the UB~B eA\mserStdtdshould be other than a public purpose, the Leglalature would Aever- the1088 enact the Bill with the 881&erevenue8 to be ured for more reatrlatsdpurposea. We shall therefore COAfIne our ooAsIde~tIon to the ,levy of the tax for the purpose of "praaotlon of s&lea of rice and rice produc$~." The title a&d emergaAay~alau8e of the Bill le6vea no doubt,but~that by thl.8,it 18 IAteAbd to ff.AliAMsnd ChdUCt A publicity and advertl8ing csplpeig~t0 pr0180t08Ad IAOCeaBO the Bale of rioa and It8 products, It must therefore be determined .I whethoT thl8 1B.a publio.purpo8e am that term Is employed IA the COABtItutiOA Of Texa8. What coABtItute8.a publio purpose or use, as dIB- tinguiahed f'roaa private purpone, tor which taxes'may be levied and pub110 fu~ds~expended, h8B been repeatedly before the court8 of pracltioallyevery state in tha Union snd the Supreme Court of the WAIted States. But no court has ' undert8ken to lay dorm with minute detail a~ insxorable rule that would distinguish the 0110troa"tbw other. Obviously, A0 Bush rule oould be4 lirlddown, ior iti8 a'flexlble oon- cept whkh must be oonsldered with*.refemence to the facts, * II) - . . . . ZiOAorableW. R. Chsmbe~~~, Page 8 a1ScumatBnce8, and purposes in each particular case aAd which Elap expand and COAtLYkOtWitbthe~AeCeBBitieB tUld COl@UitieB of life IA the democratic state. The d8CistOAa Of the courts bEIvenot been unlfom OA this subject and It must be recognized that the modem trend Of decision ie to give a more liberal coA8tructIon to the term "publIo purpose* . or uusa', hovever, this tendency b AOt Vith8Ut it8 lImIta- tioA8. The rule axmouaaed IA Neal V. Boog-SCott (T.C.A.j 1923), 247 S. W. 689, has loog bINA recognized.by pP8ctkally eVWyCQU& iA themltOd 8tdOBe ?A that OaBS it 18 Btited: . *The qUeBtiOtl aB to vhather aa sot or the bgtB&ture of this state vi11 serve 8. public Use OP purpOBOiB, in the f&St inf!~tIhIltX~, a qUeBtiOll for the detention of the ~~iBb&UPO, and thst detel3BLtrattOA or decision cannot be reviewed &ad the: contrary detenalned by the judlcIary except IA ~AB~SUZCCIB where the legialatlve deter- PllilutfOAOf the qUeStiOA is palgsbly and wt3Btly arbitrary and Incorrect. . -il . . . "Again the 1earAed author (Judge Cooiey , .. In COnBtItUtIOA L&L), at PEgeB 128, 129, says: “‘ThO ~giBbitUP0 iB t0 Blakb bWB for the public good aA@ AOt for the b3~8fit8 Or hditidusiS~ ft ha8 COPtPOi of the public moseys, and should provide ,.: for dl8bur8lng then for public pWp08b8 only. T&%XOB should only be levied for those p~J?p08e8 wNoh properly OOnstItute a public burden. Butwbatlsfora~ . public good, and what are publIc.pur- poBe8, aAd Vhst d-8 prOperly COABtitUt.8 a publia bUrdsn, are qUeBtIOA8 whloh the LegiBbbture BNBt dealdo UpOIl .%tB OVA judg#keAt,and irrreBpe&t to which It iB Vested with a lal'g0diBQl'OtiOAwhIeh caAnot ba controlled by the COUl'tB, emept perhaps where Its aotioA la clearly ewaalve, and vhere, (mddeqpre- tena~ of a Iswfbi authc+.& $$ has Honorable W. R. Chambers, Page 9 assumed to exerelse OAQ thBt iB UAb3WfUl. ” Judge coo1ql.A hi8 work on Taxation, 4th Edition, Volume 1, SrtCtiOA 189, iA COUtlBQAtiAg UPOA thI8 doctrlAe of non-laterference by the judiciary, 8aId: "These are very strong and sweep3ng a88ertIoA8. but they are supported by EUAY others equally emphatle and ccm- pl.ehbABiVe,whlah al% to be met vlth in \ the adjudlcatloIu 0r'OaurtB.-The very emphasis, however, with which the prIn- ciple Is declared render8 It peculiarly lisble to miale8d, u&38x it iB examined IA the light of the adjudicated C&BBS IA which It baa bee~..applIed,generally with explenntlons, and OftQA wittbnecebaary qU81ifiCEttiOAB." 'There worn Aumerou?cearly ~&!mer ia whichdties or pO~itiC8l:SUbdiViB~OA8 0s the state were authorized by statute to levy texea or u8e pub110 funds to i~duca or eA- courage industrX&l oi?manufaoturlng coAcerA8 to locate in such BU~~~VIBIOA or by grant- finsncial aid or bOUAtie8 to BUiXheAte~iBeB. The court8 almost without eraeptloa held such purposes to be private rsther th8A public. IA 3avlng8 dcLoan v. Topeka City, 87 U. 9. 686, 22 Fed. 455 the SupPeW COUPt Of the ??Aited state8 iA holding invalid boAd8 188~ed by a city to aid and eACOW&gb a company IA estab- lishl~g end operating bridge shops in the city, held the purpose to be-private and %A ao hol~g stetedt-- I TN8 p0wer (taxation):caa as raadlly -. . be emrpi0;dagain8t One db88 0s lndIvidUal8 aAd ln.favor of Btlother, 80 as to ruin the on8 CHUBB and glve~unllmlted wealth and prosperity to the other,.ii there $8 Ad ImplZed 1ilEitatiOAOf tha’UBO8 for which the poweJrmay b&i exeroised. "To lay, with one hand, the power of the govomment on the property of the aItIzen8, and with the other to bOBtOW It upon favored * individxnls to aId private enterprlsea and build Up pl’iVat.0 ?OrtUM~ iB AOAQ the lt3BB ’ . 8 robhsq because it iB doAe with the fOI¶EB 0s law and 18 called tX%xatIOA- ThLs; Is not leglBl8tlon. It 18 a doom under legis- ~t;V~ fOmB : , .,.a - R. C:~a:tbers, Uoaorable'1;. Qago 10 n . . . "It ia uzdoubtedlyths duty of the La;;islaturewhfch &poses or aut0orIzeon~~101- palitiesto imQoss a tax, to 0.60that it is not. to b,euaad for QurQosesoi Qrivate intamat InetesdOS a publio usa, and tha oourts can' mly be jmitiba in interpoeing who a violatlsnof this gminoipleis clear and the raasm for ihterfar0inca cogant, bnd In dcoldiq wt.ethar, in a glven case, th0 objeot for shiob the taxes axa asseaaedfsll8 upon . the one side or the other ot t&Is line, they must be gove;medmsk3.y by tie course &id usage of the govermaat, the objeota for which texee have been cuetonarily ard by lone;oouma of legislationlevied,what objcota or purpoaee nave baen coualdered :-U2002lOG-Z~co tso supportana for t.Lwpxpr usa of tha govazmimr;t, wimthrr Gtato OI? ~ucicipal. iilxm3ver lanfully'pcrtalilsto this and in uonc~:loiwi b7 t2.23anci the i3O~UlGiiQ*LLW Of tiid ~bG~ji*366 i&j Gall bu held t; belokijto t&w yubllo usa, and QZOps fdr.tmi I~a:zcci.aLoo or ii;osil govilim- zr,nt,thou,& this :zojnot be the ouly cr1t0r10nof rI&StfultaiLat1on. ., “aut in the cam before ua, li3 wi~lct; the tomn are authsrizadto oootributeaid bykay of taxatiorr to any class of namfacturar8, there it3ii0dirfI0ult.g In hdabg that tsis ia not such a public purpose88 w0 have been oon- alilerhg. If It bo saI4 that a baa&It so- 8ult.sto the looal public of a town by aatabllshisgj 3mnufacturer8, the aam Say be ssia 0s asy other bueiaitss 02 Qursuitwhich aqloye oapltalor labor. The mrchaAt, . the iU3OilRUiO~ the,inn-keeper,thu banksr, the .buiidar,t& steamboat owner are equ?mlLy prou&ms of the Qublio good, and equally deeervinytiiueI& of the oitizensby i‘oroe4 oontrIb*utIoAB. So line oen be drawn IA favor of the nenufacturerwhfch would not opn the cofferaof the QublIo treasuryto the importudCiee of two thirds of ths busInee8naa of the Oity or tOWoe” . . Xo,borable X. d. Cho ,bsrs,Page 11 For a furthercitatiooand digust of authorltiee to tte sati ei'lt3ct, see Anuotetion112 d&.X. 571, where tbo lollo~iogconaluaionis drawo by the amotator: "The deaislonoapparentlyam a,:raed~ On tfiepxwral rli2.ethat i3~COU3Xi;cx3ant ;)r promotionof a syccifioIndustrialezter- prfao currFed03 by 0 privateo~~sr is oat a publia purposefor which taxas zt?rbe tiposad or jubllo noney ag;roprlated. n. . . \ ' t'+v3 couparatioe3.y faw casaa taking tho visw that the onooura.~armrit or ~romtion of 6n hirstry a3 a rtbolale a public purpose for which the taxLz.Cdower my be validlyexaroisedall relate to etotutes passed in aid 0r agrloulture.m w In ZiohiganSugar Co. v..Auditm i)enural,(Sup. Ct. Lich. 19ctd)124 iii&, 674, a3 H.Y. 625, the ati?tute under review provideda bouty to be patd far the iw:iul’octi;re in ZLchigan, of fiurps fra sugar bacts grown ia thirSate of Kiahigan,and among other things requiredthciiaatutacturar to'pay the aellijr 31 tne ba;.tsa ctrrtaiu .~io~;ruo price in order~tobe e1iCibl.a for the b>*uetr.T;.at%)uzthel& the bouaty to be far a gzlvatemu not ~8 public +posa. A etiilar statutenas b&ora t:l*:A&6sota Lup*dza Court in 6Xnnesotstusar Co.~v. Iv%Pson, (1903) 91 ~io.Il* 30, 97 %.a. 454, and the aotwas held to be mid, the purpose of the.act being psivate. The court stated itiita opinion: ” . That a rranufacturiogaompanyis not a pubhi enterprise, rit!d the maiiiog of any well-asttladrule, and that a gatuity or ;bounty tharato is not a grant of mnney other than far a private purpose,is univsreallj' bald in the cousts of the Unit& States. It. j.supon this .principal that the case 818have -pitea'fron ous own asporteers btisad;' Ths raising of sugar baats for manufacture in tbia statcr ia just es nucb a privah business enterpriaodo is the nanufaotureof sugar therefrom,or the carryingon 0r any other kind of a manufacturingbusfmma. ... . It is also universallyheld that, to sen&~on ti:bpublio purpose a eraat OS public fu;lds, iuvdytd must be direct." -...-I Honorable W. R. Chambers, Page 12 In Deal V. MIssIsslppI county (sup. ct..no. 1891) a statute "to enc g0 grOVth Or rOD3St tPt#eS,” provided a per acre bounty Tfo planting and cultivating "forest trees" on prairie land. The court held the act In violation or a constitutIonal proVisiOn requiring that taxes be levied and collected ror public purposes only. The court pointed out that the land vas ths private property UP the omier and stated: "That an enterprise msy IndIrectly In- ure to the public benefit Is not tbe sole \ ,crlterIonby vhioh to determine a public purpose. Rvery Improvement and every business enterprise benefit.8khe ~publlo to some extent. . . . The legislature of Wlssourl had no power to author&e county courts to raise money by taxation, to be appropriated to'the plantiag 0r trees upon private property for private gaIn;no right to the trees or the use or control of the trees be- reserved to the public." The various jurlsdlctlons are In confl.Ictupon the qUestion Of using publIo money to aid farmers by makIng seed In Stats (IX rel Grirflth v. Osavkee Tvp @?ig .&m. Rep. 99, it was held that such use &?:o?? public purpose but in State ex rel CoodvIn v. Relson County, 11. D, 88, 45 R. W. 33, such grants vere held to be for a publlu purpose OB the basis that the recipients were in Imminent danger of becasing paupers. The real public purpose vas therelore, care of paupers and Indigents. WlllIam Diering & Co. v. Peterson, (Sup. Xkm. 1898), 77 H. W. 568,- held an aot appropriating money for seed loans to rarmers whose crops were destrpyed by hail or storms, to be for a private purpose, but -ted that IS the appropristlon bad been lImItedtothes0 In ImmInentdangerofbeuomIngpaupers It~might have been upheld. Acta In the Various states provIdIng for county agents, research, and the'prcxmotionof the science and art of agriculture in oooperation with the Federal Government have generally been upheld, .ThIs Is also true of farm bureau laws. Cansen v. HF@uaan County (IQ.'1919 215 3. W. 4083 Hendrickson v. Taylor County Farm Bureau tKg. 1922), 244~ s. w. 82; state ex rel Rail County Farm Rureau v. Miller (Reb . lg2o), 178 3. W. 846; Westlako v. Anderson (R.D.) 156.1~.W. 9258 Roroross v. tale (Nev.) 189 Pac. 877; Comer v. state, (Ind.) 110 R. E. 984. These uasqs have gone on the basis . that the f+undswere devoted to a branch oi the educational polIoy or the.state affecting Its chief industry, and that . "I - Honorable W. R. Chambers, Page 13 the develoment and promotion of the Interests of the state are matters o aff6ct the public generally. In Vette v. Chllders (1924), 228 P. 145, the Supreme Court of Qklahm held Ilnconstltutlonalan act providing fInancIa1 aid ror the establlshPlentor ware- houses by.~rarmer8s cooperative associstions" and b so doing stated: It . Uhen ve consider Seotlons 18 and ' 16,.hri&e 10, together, it ib appare@t thst taxes can be levied In this state only for public purposes,and fundsinthe stste treasury which h4ve been ralsed by tsxes for public purposes cannot be devoted to any other purpose. . "i.' . 'The appropriation provided In Secti& 18 of the act under oonsideratlon Is not for purposes~.oiregulation and control of the enterprise, but is to assist In establishing a system or warehouses to bs owned, operated and controlled by associations oi individuals. Whlla the est;ablIsbmentand operation of the system or warehouses mLght ultimately result In a benefit to the entIre ramiing class or the state, and by reason of the encouragement @en to this Industry might result In a general benefit to the entlzw publlo, the direct objeot or this appra- ,prIatIon is for the ass~stanoe Of a group of IndIvIduala vho shall own, operate, and controlthevarehouses. . I. . WhIld the learned trial judp was oi*& opinion that &he sot was ior the benefit of the iamser, and thus benefIted the public, and the approprIatlon qas ior that reason for a public pur#&e, we are or the opinion thrt the associations OS Individuals to whom the fund is to be.~losnedare'the ones directly benerlted by the act, and with only a prospectlve~and inawe,+ bene- rit to the public." # -- -A. -, L .. &morable ‘8.ii.Chambers, i’aga14 Zo do r.otaohsldarcams SUC!~as do;*gettv. Colcs;l, (Colii.Sup. 1091; U+ L.&A. 474; KentuckyLive Stock &resd~r:a Ass!n V. LiSt;t3r I&y. 1;05) 85 ci.ii. 738, Oni]. Otliars holdi- that the conduot Of a ‘stat%lair, or plso~g sxhlbltss(lver- tisiiigthe State gaherallyit axpositionsoutside the stat%, asO for the basrjfit of the str?te as a :vhole,are sppllcsb1s to-tileUill here uder cJil8ideratlon. Th% ‘i’axas cases upon this aubjaot%re $t n-r- ous. ;t was held lu ileaverv. i2.curryCounty (T.G.A.1894) : zj 5.s. 830 thot an act provk!ing ilorthe paymht of a bsuty for dsstmying wolves sod othcc wi1d anlzsls wss tor 8 @b1lo PU~POSS,b80d uppn ki8Oti~ 23, kstms 16 0r ths c0n8tituti0n pravldlugthat ‘Wm legislaturessy pass laws for the protectionof stock ra!.sars in the stoek rsislngportions 0r ths etate.” This case was olted wit.?approvallo liealv. A uoog-Loott, (T.C.A. 1923) 247 33. 689,,ho1dingthat the tlok eradicatim 1an did not violateArticle 8, 33otlOn3. The court thare held the aot 1vasfor a publio purpose on the gmunds 04 pub110 i-,c:alth a:?dprotootionor stook and stooicraisers. These casas are 0: little bt:!i&fit in deteminlut, the lssuaa h%rF,, since thay ar% alealy Juatlfledasd are based upon tho groundsxeiltioned above. Uavis v. Cite-of &ylor, (Sup. Ct. 19341, 67 .J.n Ail. (Zdl lo33$ en ordinance,lqrlng a tex ‘for‘the ,establistient and maintanancoof a ‘Boardof City Develop- msst, Chanbtir of Comsrce, or other alAlar organization under whatsoeverna;lle, devotedto tha growth, advertlseosnt, developsenti *+zovmsent, az& imrcaso OP the taxable values Of the city of ‘i’sylor,was ujheld agalsst tha attack thst it was not for a publid;~urgoss. The aourt alted an& discussed the cases in other jurisl;iot.iona holdiilgthat apgroprlatioUa for exhlbltl.hgthe resourcssor a looslltyat stste or natioool exhibitionsor fairs, ware for,,8public purpose,and drsw . the r0n0dn8 conaluslon: ,I ii0 can ‘se8no fasterlal ai’frorenca in tha*uit$ate purposeof an exhibit ol th% waouroe3 or a partlouiarlooalltyat an oxpositionand tiiemom no&em method JE presenting,the advanta&ssand ogportuoltler, or,8 oity, oaaty, oh stste, through nsws- pspsrs or zmgazinus edwertiaiq, and silnllQr ohanoels. ‘T’ “‘: .r. .‘..” ‘*-__ . 1-* - . . . ilonorableii.B. Chaabers, Pafit15 ” . The caztral asd laadiilxpurpo30, and th; &.‘tsollLng ona, is -tVhethsr or not -a nuuioipality siayuse city funds to advurtlm th3 city’s advantages.W It nust be noted thot this cssa is busod- upon ac?Vdrttd.Lig the 8dVtiiitf3Eu3Qr?d 0p;ortuaitiaa of t3e u ard ita rc430urc~s. In our opinioc there is a narkad dls- tlnnatlonbetmen nuoh advertising a:.dthijsituat.Lonwhiah -m&I have buen before tilct court had t::ecity atternptsdto levy a .tax to advertlair tim products of soizotidustry i0eatcra within its ld.izlta, a3 for exaopltt, tile nattress industry. Advertising withis ilxalf is but the ma33 end not the end. The Thirty-third Legislature edacted what was known as the X’kcaidactialPrimry Act and, amng other things, it W8S prOVid3d tiLtIttk3 eXi&LlSeOf pSLZiCi~yeltictior?sSOr whose cacdidate ftirGovareor at t~~a’ltist .partl.ee preceding gensral eleotioa received as may ha 50,000 votes should be paid out of the county treasury 3f each aouhty. The ;uprem . Court or Taxas, speaking throu.& &is?. Zu;lticeYikiUipS, held suoh expmditiira not to be far a ;;uXio purpose in kaplea v. 4;arra.%t,(lQ6), lC$ 2.5. X0. Zn the opinion, the.court ai92t2ssf3dthe ;ncar:inr; of “pubflc :~iir~ose*‘, as usaa in our conatl.tutLon,quitt.Zully azd YiCGiersfore quote at aocxelen@h the exprcs3ions of tt;ccourt: Vaxes are burdens inp0sQa for the support of the govermant. They are faia as a Deans of providing publio revemas for publio purposes. The s3vsreign power of the .Ytate nay bs exercisea in tL;Pir. levy a2.d c31- / leotion on17 upon toe cxdition that. they . shall be aev.Otrtd to auoh purposes; ahd no lawful ter can be laid for a differ%& pur- pose. Gheuever they are iragosedfor pri-- vate purposea, us~waa said in i%roa~eeav. ‘Zi1xauk.e,19 ?/ls..670,2iiAn.,Uac. 711, It ceases to ba ta,xstion, al;il becomes plzi&er. “It is not easy to atqte in uxect tame what Is ‘8 public purpose*‘I.3the sense,% whioh that terzuis eaglogad as a Li3itatlon upon the titsta’sparer ok ‘*amtim. 36 frmara of the Constitution were aoubtleaa sensible of this dirfloulty, tar they did sot attempt to adine it. ~~:hany...,ObJQCtS my be .: - _. . ” . ‘. I I Honorable W. R. Chambera, Page 17 all of them, and not as a paternal In&,Itu- tion, may justly coneem itself, and to which, for that rmson, tho publla r4v4nues may be rightfully devoted. "As to what Is a public purpoie withIn the meaning or Section 3, Artiole 8 OS the Constitutian, no bettor teat can be prerented thantho InquIryr Is thethfagtohe edbytheappropriatlon OS the public revenue ~scmothlq which It la the duty oS the State, ab a govement, to provide?* Loan AaaoaIa- tion v. Topoks, 20 Wall. 655, 22'L. Ed. People v. Tom of Selea, 20 HIah. 452, 4 Am. Rep. 400. Those thlags vhioh It is the duty of tha State to provide for the people, It Is equally the right of the stat& by man8 OS the public revonuo, to maintain, Within this category .&ill the gelieral Instru- mentalities or the government, the public t3ch0018,and other institutions 0r 1Ike nature. Buttho stats iswhollpwIthoutanypow4r * to levy and appropriate taxes for the aup- port of~those things which, either by aommon usage orbecauaethey~bF0 Innoproper s4me the lnatrnment$ OS goverment, lt ie~the duty of the people tb provId4 for tbemselvea. ft. is not all thInga which answer a public need or SIl1.a publla want that It Is wtth- In the authority or the Stata to PurnIsh for the p4opl4*a use or support at the public expewse . Mnufacturlng Induetriaa, raS& roadn, public entorprlaer OS manyWnd6, private sohoolr and private charitable lmtl- tutlonm all aria-d a servlae to the publlc, but ~~lm3tati la vIthout any pwer to maintan BelIgIon la generallg~esteemed a help- ful hfglen~ r0r pub110 morality. Rut Mm .’ Conztltutlon expressly docrlaroe that no publla money ahutll be granted in aid or any msl+ ~. glow orgsnlwttlon~" L". Referring hrcfr to the p&vIaLok~oS,tha Bill In question, it must be.recognIsed thatgerely because the tax Is laid on t+o rI4e lnduatry and then expended for ita @eueSIt I4 not eI&nIsicant. If the purpore Is public In charareter, the approprlstlon alght,be ~snadofrom ths,,.ge~nalrevenue fund 0r the State, or th4 taxla¶d upon-o~bnr,occupatlona such as Honorable W. R. Chambers, Page 18 the milling OS Slour, production of oil, etc., and ths revenuea dedicated to advertising rice and rice products. Or, on the other hand the tax levied in this Bill on rice millers, might be used to advertise corn and vhsat and their products, if that purpose be public. It Is quite ~clear that:;theTexas courts have never gone so far a8 to hold a purpose oS t&Is nature to be publI,c; The language in yaplea v. Marrast has never,been expr4ssly disproved by our Supreme Court and Its construotion of our.constltutIonal provi~lons would bs a 8tiricibnt basis far holdin& the Bill under consideration unoonstitutl~nal. : Ho t&Ink that under the better reasoneda&horItIea and the saunder~$rIxicIplesupon vhiah the above quoted eonstl- tutIonaL llmitatlons are baaed, Advertising aud conducting a a&es arw$publicity campaign for rice and rice products, "to promote the prosperity and vslfare 0% rim growers~and producers ln ne State of'Texas,” as stated ia the Act, Is not a public purpose for which times may be levIed.and publLcmoneys appropriat4d. The Act therefore In our opin- Ion violates Article VIII, Sections 3 and 6 OS the Texas Constitution. -There are two reoont cases, however, to which we wish to direct attsntlon. In Floyd Fruit Co. v. Florida Citrus Commission, (1937); 175 So. 248, 112 A.L.R. 562, ths Florida Supreme Court upheld an act very similar to Houae Bill IUo. 136. The statute levied an excise tax on ths basis oi 14 per box on oranges, 31 per box on grapetilt, and~5# per bar on tangerlues to be placed In a Special fknd Sor.the pur-' pose. of advertIsing~'thesewkrIousproducts. In th4 k3ourae or the opIn%on the crourt~held.thatadvertising the citrus industry of Florida was for a public purpose for which .a- taxes might be levied. The court apparently takea the position that the citrus Industry Is one,oS the state88 greatest Industries and arrecta so great f+ portion. 0r th* ' population OS the state as to be a matter OS public; con- cern;.and thmrefcireZts advertising Is a mbllo purpose. At another point In ths. opinion:tbb court states: "It Is not exaluslvely for their (those engaged In turnips citrus Sruit into the chsnnels OS comsmrcs) benerlt because any .aotIvIts vhlah redounds to the benefit OS thO80 engaged ti marketing citrus jtults Iu Florida redqmds IudIrectls.*tv aome ex- benerit the publlo.generally." ours.) Honorable W. R. Chsmbers, Page 19 Thi8 Cue WAS rO~OWd by the 8UpMID4 cOWt Or Idaho In stats ox relikmhsm v. BpLIng (1938), 82Pac. (kd) 64g, by a divided court, three to two. The statute MB a&o8t Identical vith the PlorIda Act except that It applied to 'fAlit8 and vegstables md by-pmduats.” and deiiecrdfPdt8 and V4mtsbl48 W &&es, PI’UMB, pOt8tO48 @Id OliiOZlB. The court QuotedatlengthS'rmthePloPIda 0a~eand~tatedthat "the prokatlon and promotlon ot the apple, prune, potato, and onion industry ia a8 much a matter 0r uoncexa to Idah as the cttrua fruit Industxy iB.to Fl~rlda,~ and concluded that th4w0r0 the tax " SW a publie PltEpOBO.. ~Jt~kybe8ZgWd&tgXWtlfm&haB tOVhethePtb88e CAB@B IBAJ be dIstSaguIshed from the .!dtuatlon nw before us, and whether tholr doctrines and holdings vmld be acaeptttd andapplIedby ths co&t8 of tuB 3tak BhouldthequeBtioP bs prosentad to thoa. As heretofore pointed out, time and usago Is anelementtobe aonsideredIndeWque8- tiats of this tiature, and udder t&a present 8tatus of the ,."Te%aB decisions, thI8 Is a matter vhlchmnnmtneoeBsarlly be p~~4Y.y spocul8tiVe and upon vhioh ve are nOt~~olPpek~t to adrise. lie next rerer to‘that portion of the 8111 which levies -Uutar~d2reatsthrtalrt~~oCb~ tbelvfrasBhi3nbe used by the CCW~~BBIO~~ to OfiOOtU@ the pU~0848 therein o-ted. . . ~Artlale VII& Seotlon 1 ai the TOXAB Constltutiom Pl’OVidOB iXtportt "Taxation sball be equal and unifo%m. 'All pr?pertyinthis State, whether owned b natwal~ peawms o~oorparatIon~, otherthsnmun i cipal, Bhll. be tBX4d iItprOpOrtiO?Dt0 it8 WLlu4, Which _, . ,. : 'shll~~wrtaItt~~maybo providedby law. Tha tb&BlditW fJBpOBtD 8 pOu Btft;l~ tBX, It My 8bO Impose oocugatlon taxesiboth upon natural per- SW8 and upon aorportttlwa,other thaa luunia~~2, .' doingUaybus$aesB tithis~3tste. IttDayalBO' tax In~ow8 ofboth~turalperscaas and corpora-. tians other than atunlaipsl,exoept that par- .- sons engqed'iqme~b&nUalandagrloultu+l PUPSUitS SW it0Vbr~$0 WUiPOd to PAY BP oocaqntlon.tax. .. .," ,' .' Artk%1q VIfI,'3eotIcm a of the Tara ConBtlti+ion COtttrittB th. fO~@V~ PWiBiOtt: ...‘_,,; -t- .- c:. - ‘. . ..+ - . .’ ., .. . . Honorable W. R. Chambers, Page 20 "All ooaupatlon taxes shall be equal and uniform Upon the same COBB OS BUbj4CtB vlthti the l$mlts OS the authority levying the tax; . . . Article VII, Saction 3 &' tha:Consti.tutIonreads in part As fOliOW8: "One-fourth OS the rsvenus derived from the State occupation taxes and poll tax OS one dollar on every inhabitant of the State, . Shall b4 Bet &part annUally SOP the . GeieSIt of the pub110 Sree sChoola." Certain language in %‘UBB Bill HO. 136 iB such tbst it may be ausceptlble to the construction that a property tax la Intended to bs Imposed, however, upon closer exam& nation Lt becomes apparent that this la not a propsr chw- acterIeatlon of the tax. I TAxeB~fall Into three general classes, namely, capl- tation or poll taxes, taxes on property, and excises. Tax48 on property aFo sometimes described as thdse which ar4 @met- ly upon‘the property Itself. The term excise has come to have A broad meaning and includes every form of taxation which is not A burden laid directly upon p4r~on~ or property3 in Other VOrdB, 4XCiW Imludes 4Very fOIttt Of ChetYgO Imposed by public authority Sor the pwpose of ralsIng revenues upon thp perSomanee of an aat, the enjoyment OS a prlvilega, or the engaging In axe occupation. ,The obligation tow&y an excise IS baaed upon the voluntsry a&ton 0r the parson t54d In perfomlng the act, enjoying thi'privilege, Or..engagirrg In the occupation vhioh 1s~ tee subject of the eXCl84 and the element OS abaolUt4 And unavoldable'detnand iB lack%ng. 26 R.C.L. p. 34 B 18. Exc1ae* Isay fall ult3mately upon prop4rty I ' indirectly and be paid out Or it @ut if the tax iB really iJ+ posed upon the periormsnce of an act, the enjoyment of a privl-. lege, or the sngaglng in aa occUpatIon,'It ~131 be~consldered an sxalae. . I. '. To con~truo the tax impdBed by HcnxseB& Ho. 136 as a property tsx would render It in violation of Article VIII, Seotion 1, for It would not;be on all property alIk4, and not ia proportion to its value; even as to milled rioe. It might also be noted her4 that Artlale VIII, Section 9, lImIta the State Ad valorem tax rate to 354 per $100.00 valuation on property. These factors beJ.ng,true It will not be COttBtrWd a8.a property,tax ,y, t*re;Is a reaaonabl4 bti818 ror apotheb C&SBBiriCt3tiOtt~~~~ The fact that some OS the language in the aotmight sigg4at a purpose to lay the tax iapon the rice is not con- trolling, ror an expr4as claaalSIcatIon of a tax in the tftXittg Bti&~t4 is not CCWhBiVS OT Or BI?4at BigZdfiCanCSi Honorable W. R. Ch8mberu, Page 21 City OS Abilene ?. Fryar !C;C.A$g')O) 143 S. W. (26) 654; State v. City of Bl Paso t 1940) 14 3. W. (26) 3661 State ve Bogg (Coo. App. 193&- ), 7;'s. W. (26f 293. Floyd Fruit Co. v. Florida Citrus C0imnl88lon, 175 So. 248, 112 A.L.R. 562, recognized a sinllar tax aa ~11 eXC18e tar in the fOlloWin&$lan@aa&8: "So it 18 that under the provisions of the act, it 18 defined as an excise tax. It 1s levied On the basis of 1 cent per box on oranges, 3 cents per box on grapefruit, aad 5 cent8 per box on ,tangerlnes per~standfed packed box. The tax la payable when the irhlt 1s first delivered into : the prlm8ry channel of trade. It 1s to be paid by the handler of such fruit 8t that time and not before; The prjaary channel of trade may be by sale, delivery for ehlpment, or delivery for cam&g or for processtng into by-products. It 18 8 tax UpOn the priVil9fJe Of hatldling &it for shipping, or delivering fruit for canning * Or'processing into by-products. The tax 18 not 'levied upon the right of own8rship or of production, or of porreelrllon." Some oourts have used the terms %xcl8e' and "occupy+ tlon tax" aa practically intarchangaable term8 -but our aourt8 . have clearly recogaized the distinction. It 18 very force- ably pointed out'in City of Rl Paso v. State, (T.C.A. 1940) 135,s. W. (26) 763, and State v. City of Bl Paso (Sup. Ct. 1940) 143 S. W. (26) 366, reversing the former c&e, that an occupetton tax is a subclars1f1cat1m of the broader tern "excise tax' and that the ton8titutlonal pEOV181OII axemptilpg.uitiea from ocoupatlon tares does not extend to other typea,of exalseb. The Suprem& Court held in that case tbat the gasollrm tax was an 8Ualae based upon the "use" and could not be olae8Lfied as 'an occupation tax and wiHi3k the corutltutlotal exemption,. .$n this case it do&8 not appear that--themiller is made in fact a mere collecting agenoy for the State. The rice miller 1s required to make monthly reports shov- ing the amount of rlOe milled by him durw the preceding month and 1s required to pay the tax on all rice milled during the,month wlthln the first ten days of the suc- ceeding calendar month, and upon his failure 80 to do,: . i:onorable:i'. H. Chazbere, Page 22 penalties and .intoreetaccru8. Iho tax dooa hot a0crue unlasa and until the rice is nillud and it attechaa at that t,i.ze without reference to aalaa, uaa or the happYcirigof aubaqumit svezts. The tax is basad ug0n a per unit of buainass or CiiLin; dsE9, (2, pal'100 pOUds of rice milled) which is azlaoceibtablameasure for the 3tato to uw in levying 83 occuvatim tax. Grayburg Oil Oo. v. Stata, (Corn&p. 1928), 3 5.i. (2dj 427. It 18 not a license fee or tax for it 15 clearly tu raise revewe and -not for tha gurpoae of reg- ulntion. iiurtV. Cooper, 1lO S.%. (2dJ 896. It is our opinion that th6 tax iz~poeedby Bouae Bill X0, 136 ia an oaoupetion tax and ArtJ.aleVU;, Motion 3 of th:6Texas Constitutionthdrd0re' rsquiree thnt one- fsurth of the revenue derived therefrom shall be sat apart for tho bmsiit of the publio rrm achoola. .Articlo iT.II, Section 6 or the Texas Cotstftuticm reada in part 83 rOliOW8:, . "No non~y eiiellbe drawn rroa th3.Traaaury but ir pursuaoce of speoifi;:appropriatiotmmde . by law; n0r shall a3y ap>ro;rietion of nozag be node for a larg.arterm than two yeers, . . .* kW.clu III, &&ion lJ+of the Conatitutlon c0n- talns the following pr0Viaion: T%J Lugislatura ohall provido by law for ' tba co~~en86tionof all atticera, servants, agents and publio ountractore,notiprovided tar in this c0nstitution, . * r" Seotion 5 of the Aat provides that the tax ahell be remitted directly to the ili.06 Developamnt Coarnfsai.on, _ . oreated by the Aot, end ho proviaLon ie made for the deposit 0r such p~Mi0 ix0nuywith the State lhim+mr. WZJthis& it ia propar to point out that this doe3 not plaoe such funds beyond the provision of Article vIIII, r;eation-6. 1fcc0fibba 0. hui5 county, (T,C.~~iy40) 136 s.?l,(2dj 975; orfimed'~allaa County v. ZcCoroba,[dup. Ot. 1940), &O AH. (26) J.lO9. Otbar oonatltutionalpro&eioha may affeot the ia- position 0r oollectioh of the tax when attenptad to be applied Zonorable :I. 2. Chambers, Pe,;c23 to various individuals but iyedo not asnsidor it necessary to disouas euch ~rw~laions hare. A3 haretofore stated it is our opinion tt& Lou33 3111 No. 136 contravenesAi-ticluVZiT, bcotlon 3 rmd ;.rtLcle E.u'x , Aaction ijof the ‘i~?xas Constitution in that t&i.tax aad evponditures tbotroiopz%vided are not for a “public purgme.” iicsr~dfw%iiar of the o@~ion that tnlrtax pro; vided in tha 3111 ia an ooc$petion tax sad therefora oka- fourth of the r~vcliutt3 derrrvdd Lkarefrm &lustbe set apart annually ror th benefit of the >ubiic frsa sabools n3 re- cpirud by Artlola XI, ;~ytion 3, of t:& %xas Constitution. Y3tti'B ve1'srxuly .' . By X&bed: C0cll C. Casxcaak Cecil C. Cammok Wziaik3tant . . . ,’