Honorable Ben Atwell, Chairman 

Revenue and Taxation Committee 

Opinion No. C-424 

House of Representatives 

Austin, Texas 

Re: 

Dear Representative Atwell: 

Constitutionality of 

House Bill 8, 59th 

Legislature, Regular 

Session. 

You have requested our opinion on the validity of House Bill 

8 of the 59th Legislature. House Bill 8 amends Articles 9.14 

and 10.03, Section (2) of Title 122A, Taxation-General, Revised 

Civil Statutes of Texas, 1925, as amended. The provisions of 

Article 9.14, as amended by House Bill 8, which are pertinent to 

your inquiry, read as follows: 

'!When motor fuel is used or consumed, 

or is to be used or consumed, for the propulsion of transit vehicles either owned 

or operated, or both, by a transit company, 

which meets the following requirements, 

the transit company shall be entitled to a 

refund of the taxes levied herein; except 

that the one fourth of the taxes levied, 

which is allocated to the Available School 

Fund by the Constitution of the State of 

Texas, shall not be refunded. . . 011 

Similar provisions are contained in the amendment to Section 

(2) of Article 10.03. Under the above quoted amendments, none of 

the net revenues remaining after payment of all refunds allowed 

by law and expenses of collection, derived from the tax levied on 

a transit company meeting the requirements contained in the 

amendment, are to be used for the purpose of acquiring rights-ofway, constructing, maintaining, and policing such public roadways, 

and the administration of such laws, and for the payment of 

certain bonds or warrants. On the contrary, all the net revenues 

remaining after payment of the refunds allowed by law and expenses 

of collection, derived from the tax levied on transit companies 

meeting the requirements of the amendment, are to be allocated to 

the Available School Fund. 

It is well settled that tax monies raised ostensibly for one 

purpose cannot be expended for another pur ose. Carroll v. 

Williams, 109 Tex. 155, 202 S.W. 504 (19187. Thus, where tax 
Honorable Ben Atwell, Page 2 Opinion No. C-424 

revenues are constitutionally directed to be spent for certain 

purposes, the Legislature cannot authorize expenditures for other 

purposes. Carroll v. Williams, supra; First State Sank & Trust 

Company v. Starr County, 306 S.W.2d 246 (Tex.Civ.App., 19571. 

Section 7-a of Article VIII of the Constitution of Texas 

provides as follows: 

"Subject to legislative appropriation, 

allocation and direction, all net revenues 

remaining after payment of all refunds 

allowed by law and expenses of collection 

derived from motor vehicle registration 

fees, and all taxes, except gross production and ad valorem taxes, on motor 

fuels and lubricants used to propel motor 

vehicles over public roadways, shall be 

used for the sole purpose of acquiring 

rights-of-way, constructing, maintaining, 

and policing such public roadways, and 

for the administration of such laws as 

may be prescribed by the Legislature 

pertaining to the supervision of traffic 

and safety on such roads; and for the 

payment of the principal and interest 

on county and road district bonds or 

warrants voted or issued prior to January 

2, 1939, and declared eligible prior to 

January 2, 1945, for payment out of the 

County and Road District Highway Fund 

under existing law; 

that one-fourth (l/4 P 

rovided, however, 

of such net revenue 

from the motor fuel tax shall be allocated 

to the Available School Fund; and, provlded, 

however, that the net revenue derived by 

counties from motor vehicle registration 

fees shall never be less than the maximum 

amounts allowed to be retained by each 

County and the percentage allowed to be 

retained by each County under the laws in 

effect on January 1, 1945. Nothing contained herein shall be construed as authorizing 

the pledging of the State's credit for any 

purpose. 

It is noted that the above quoted constitutional provision 

requires that all net revenues remaining after the payment of all 

refunds allowed by law and expenses of collection, derived from 

taxes on motor fuels and lubricants used to propel motor vehicles 

-1997- 

', s 
Honorable Hen Atwell, Page 3 Opinion No. C-424 

over public roadways, shall be used for the sole purpose of 

acquiring rights-of-way, constructing, maintaining, and policing 

such public roadways, and the administration of such laws, and 

for the payment of certain bonds or warrants. Following this 

constitutional direction, an exception to such provision Is made 

in the following language: 

fourth (l/4 of such net revenue from 

. . . provided, however, that onethe motor fuel tax shall be allocated 

to the Available School Fund; . . .' 

In State v. City of Austin, 160 Tex. 348, 331 S.W.2d 737 

(1960), the Court stated: 

t1 

. . . Under the provisions of Article VIII, Section 7-a, of the Constitution, 

revenues received from these sources w 

be used only for constructing Dublic 

roadways and for other designated Furposes 

which are not material here. . . . 

(Emphasis added). 

It is our opinion that House Bill 8 authorizes net revenues 

from motor fuel tax to be spent for purposes contrary to the 

provisions of Section 7-a of Article VIII of the Constitution of 

Texas and is thus lnvalld. 

The other controlling provisions of the Bill are so dependent 

upon and so Inseparable from the allocation provision of the Bill 

that the entire Bill in our opinion must be declared unconstitutional. 

School Trustees of Orange County v, District Trustees of Prairie 

View Common School Dist. No. 8 137 Tex. 125, 153 S.W.2d 434 ( 

Empire Gas & Fuel Co. v. State: 121 Tex. 138, 47 S.W.2d 265 (li$;!' 

------- SUMMARY 

House Bill 8 of the 59th Legislature authorizes an allocation 

of net revenues derived from 

motor fuel tax, contrary to the 

provisions of Section 7-a of 

Article VIII of the Constitution 

of Texas and is, therefore, 

ipvalid. Carroll v. Williams, 

-1998- 
.I. 

Honorable Ban Atwell, Page 4 Opinion No. C-424 

109 Tex. 155, 202 S.W. 504 

(1918); First State Bank & Trust 

Company v. Starr Counte, 306 S.W. 

2d 246 (Tex.Clv.App., 1957). 

Yours very truly, 

WAGGONER CARR 

Attorney General 

Assistant 

WEA:dl 

APPROVED: 

OPINION COMMITTEE 

W. V. Geppert, Chairman 

John Reeves 

Roy Johnson 

Pat Bailey 

Paul Phy 

APPROVED FOR THE ATTORNEY GENERAL 

BY: Stanton Stone 

-1999,