Honorable Jesse James

Treasurerof 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 paragraphof 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 receivedby 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 complianceWith the order and transmitwith the stamps or the meter a certifiedstatement showing the amount due for said stamps or meter set; tlng, and the distributorshall forward a remittanceas payment’ In full of the amount certifiedes due by the State . Treasurerwithin fifteen (15) days after receipt of the stamps or the set meter and the certified statement. Any distributorwho 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 Treasurerwithin five (5) days after the end of the

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HonorableJesse 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 shouldnot be, ‘ denied the privilegeof~ordering stamps as herein provided,and If such distributorshall fall to show good cause, the Treasurer Is hereby authorizedto discontinuethe shlpment of stamps or the setting of ':" ~. '~ meters as provided In this Section.." The provisionsof the above paragraph call for.the State Treasurer to ship cigarette stamps 31‘. ship a set meter for u&e In stampingcigarettes, wit % ut receiving payment for such stamps or set meter, at,t e ~tlme of shipment, ~wlth

the distributoror recipientof such stamps having 15 dayswithin which ~to pay for the same. Such practice clearlyputs **th@** State of Texas in **the** business of extendingcredit to the reclp~lents 6f cigarette stamps for a period of 15 days. .gxperlence has recentlydemonstrated that~falluieof a person or firm to pay within the,tlmeprescribed.by law causes the State of.Texas loss of revenueamounting to thousandsof dollars. Article 3, Section 5O.of the Texas ConstitutionIs as follows:

. : 1:

. "The Legislatureshallhave no power to glve'or to lend, or, to authorize. the giving or lending, .ofthe credit of the State In **aid of,**  or **ti, w**  person;~associatlon or corporation; whethermunicipal or other, or ~to pledge.thecredit of'the~ State in any manhet NhatsoeVer,':Por thepayment.oS the liabilities,

present or prospective, of,any individual,.associatlon of Individuals,

,municipal

or other carporationwhatsoever." *

**;1665-.**HonorableJesse James, Page 3 OpinionNo. (C-351)

The above provision of the ConstitutionIs plain and unambiguous. It clearly states, "The Legislatureshall have no potvex?

to give

. . . the credit of the state
. . . to any person, associationor corporation.

. . .' This office, In Attorney General'sopinion 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 (Article7.06 Tax. Gen.), la In direct conflictwith the above provisionsof the Constitution, and is unconstitutional.

SUMMARY ---?--- Paragraph9 of Chapter 7 of House @Ill No. 11, Acts of the 56th Legislature, Third Called Session (Article7.08 Tax. Gen.) 1s unconstltutiona1.
Yours very truly,
WAGGONER CARR AttorneyGeneral of Texas 

# e

AssistantAttorney General GCC:dl .' APPROVEDBY OPINION COMMITTEE:
**W.** V. Geppe,rt,

Chairman Ii. Grady Chandler **W.** E; Allen Joe Long MariettaMcGregor Payne APPROVED FOR THE.~ATTORNEY:GENERAL BYROGW TYLER

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