Honorable Jesse James 

Treasurer of the State of’ Texas 

Opinion No. C-351 

Capitol Station Re: Whether wareRraDh 9 of 

Auitln,.Texas 

war Sir: 

Chapter 7 of-Ho&e-Bill 

No. 11, Acts of the 56th 

Legislature, Third 

Called Session (Article 

7.08 Tax. Cien.), la in 

conflict With the Texas 

Constitution. 

By letter 

of this office 

House Bill No,. 

Called Session 

Said paragraph 

of November 9, 1964, you request en opinion 

“The Stat’e Treasurer shall require’that 

payment In full for stamps or m*ter 

.settlngs be made within Plfteen’(l5) 

days from the date the stamps or.the set 

meter are received by the distributor. 

Upon receipt of an order for stamps or 

the setting of e meter, the State ‘~ 

Treasurer shall ship such stamps or set 

such meter In compliance With the order 

and transmit with the stamps or the 

meter a certified statement showing the 

amount due for said stamps or meter set; 

tlng, and the distributor shall forward 

a remittance as payment’ In full of the 

amount certified es due by the State 

. 

Treasurer within fifteen (15) days after 

receipt of the stamps or the set meter 

and the certified statement. Any distributor who falls to forward the proper 

remittance within fifteen (15) days 

. 

after receipt of the stamps or the set 

meter and the certified statement shall 

be notified by the State Treasurer within five (5) days after the end of the 

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. . 

Honorable Jesse Jame.8, page 2 Opinion Tlo. (C-351) 

fifteen day period to appear within 

five (5) days before the Treasurer 

to ShoN cause why he should not be, ‘ 

denied the privilege of~ordering 

stamps as herein provided, and If 

such distributor shall fall to show 

good cause, the Treasurer Is hereby 

authorized to discontinue the shlpment of stamps or the setting of ':" ~. 

'~ meters as provided In this Section.." 

The provisions of the above paragraph call for.the 

State Treasurer to ship cigarette stamps 31‘. ship a set 

meter for u&e In stamping cigarettes, wit 

% 

ut receiving 

payment for such stamps or set meter, at,t e ~tlme of 

shipment, ~wlth the distributor or recipient of such stamps 

having 15 dayswithin which ~to pay for the same. Such 

practice clearly puts th@ State of Texas in the business 

of extending credit to the reclp~lents 6f cigarette stamps 

for a period of 15 days. .gxperlence has recently demonstrated that ~falluieof a person or firm to pay within 

the,tlme prescribed.by law causes the State of.Texas loss 

of revenue amounting to thousands of dollars. 

Article 3, Section 5O.of the Texas Constitution Is 

as follows: 

. 

: 1: 

. 

"The Legislature shall have no power 

to glve'or to lend, or, to authorize. 

the giving or lending, .of the credit 

of the State In aid of, or ti, w 

person;~associatlon or corporation; 

whether municipal or other, or ~to 

pledge.the credit of'the~ State in any 

manhet NhatsoeVer,':Por thepayment.oS 

the liabilities, present or prospective, 

of,any individual,.associatlon of 

Individuals, ,municipal or other carporation whatsoever." * 

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Honorable Jesse James, Page 3 Opinion No. (C-351) 

The above provision of the Constitution Is plain and 

unambiguous. It clearly states, "The Legislature shall have 

no potvex? to give . . . the credit of the state . . . to any 

person, association or corporation. . . .' 

This office, In Attorney General's opinion No. 2996, held 

that the sending by the state of stamps on consignment was a 

giving or lending of the credit of the state and was In violation 

of said Section 50 of Article 3 of the Constitution. 

It Is therefore our opinion that Paragraph 9 of Chapter 7 

of House Bill No. 11 Acts of the 56th Legislature, Third Called 

Session (Article 7.06 Tax. Gen.), la In direct conflict with the 

above provisions of the Constitution, and is unconstitutional. 

SUMMARY ---?--- 

Paragraph 9 of Chapter 7 of House @Ill No. 11, 

Acts of the 56th Legislature, Third Called 

Session (Article 7.08 Tax. Gen.) 1s unconstltutiona1. 

Yours very truly, 

WAGGONER CARR 

Attorney General of Texas 

e 

Assistant Attorney General 

GCC:dl .' 

APPROVED BY OPINION COMMITTEE: 

W. V. Geppe,rt, Chairman 

Ii. Grady Chandler 

W. E; Allen 

Joe Long 

Marietta McGregor Payne 

APPROVED FOR THE.~ATTORNEY:GENERAL 

BYROGW TYLER 

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