-E li’l-l-ORNEY GENE-L 

OF TEXAS 

AUSTIN 1s. TEXAS 

~Konorable Geo. Ii. Sheppard 

Comntroller"of Public Accounts 

Austin, Texas 

Dear Sir: Oplnion~ No. O-3534 . 

Re: The proper allocation of the taxes 

collected under Article XVIII of. 

House Bill 8, Acts of the Regular 

Session of the 47th Legislature. 

we are in receipt of your letter of gag 16, 1941, in 

which you reaueat the ooinion of this department on the following questions: 

"Section 4 of Article XVIII of House 

Bill No. 8, Acts of the Regular Session of the 

Forty-seventh Legislature, recites: 'To be 

allocated as hereinafter provided in this Act.' 

That, of course, is referring to the taxes 

levied and collected under Article XVIII. 

"Article XX of the same Act that makes 

the allocation of other funds collected under 

House Bill No. 8 makes no mention of the taxes 

collected under Article XVIII. I find no other 

place in House Bill No. 8 where the moneys collected under Article XVIII are allocated and no 

other language in the Act except Section 4 of 

Article XVIII that mentions any allocations of 

the moneys collected under Article XVIII, I 

will therefore thank yau to advise this department as to the proper allocation of the moneys 

collected under Article XVIII above mentioned, 

"There Is now approximately $~GO,OOO.OO in 

the Suspense Fund collected by the Insurance Department under the'laws existing at the time 

House Bill No. 8 was enacted. The Insurance Commisslon IS waiting advice from this department 

as to the proper allocation of this, $804,000.00 

before clearing Lt. from the Suspense Fund. This 

$800;000.00 was collected and placed in the SusKY. 

Fund priorto the enactment of House"Bll1 

I will thank you to advise this depart- 
Honorable Geo. Ii. Sheppard, page 2 Q -3534 

as 

al 

ment what Is the proper allocation of the 

$~oo,ooo.OO now In the Suspense Fund." 

follows: 

As you point out Section 4 of Article XVIII, provides 

"To be allocated as hereinafter provided In 

this Act." . 

Article XX of said~'Act-is the section that makes the 

.ocations and provides in part as follows: 

"SeMiSon 1. All revenue, other than that 

parl'allocated for enfortiement purposes, derived 

and~collected from the"taxes levied by Chapter 

241, Acts of the Regular Session, Forty-fourth 

Legisltiture, and Bny amendments therebf or'therbto, shall be hereafter and is hereby ellocated as 

follows: one fourth (t) tcl the Available School 

Fund of the State of Texas and three fourths (3/4) 

Into the Clearance Fund provided by this Act. 

All laws and parts 'of laws in conflict with 

this section are repealed to the extent of such 

conflict only. 

"Sec. 2. All revenue derived from and collected under Article VIII of this Act shall be 

paid ltito the General Revenue Fund of the State 

of Texas. All revenue derived from and collected 

,tinder Article XIII of this Act shall be and is 

allocated as now provided by law. All revenue 

derived from and collected under Article XVII 

of this Act shall be allocated as provided In Section 25 of said Article. 

"From all revenue derived and collected 

under the provisions of Articles I, II, III, IV, 

V, VI, VII (subdivision a), IX, X, XI, XII, XIV, 

XV, and XVI of this Act after deductlon of that 

portion provided for enforcement purposes, there 

shall be allocated to the Available School Fund 

one fourth (t) of the total sum collected thereunder and same shall be deposited and credited 

to the Available School Fund In the State Treasury. 

"After deduction of the allocation provided 

in the next preceding paragraph to be~apportioned 

to the Available School Fund, the balance of the 

finds collected under Article I, II, III, IV, V, 

VI, VII (subdivision a), IX, X, XI, XII, XIV, XV, 
Honorable Geo. H. Sheppard, page 3 

and XVI of this Act shall be deposited In a Clearo-3534 

ance Fund In the Treasury, and from such Fund the 

revenues so derived and collected shall be triinsferred and allocated by the State Treasurer as 

follows: 

II II 

. . . .~ 

The above quoted portion of Artkle XX contains several different allocations; for example, the revenue derived from 

Article 8 Is allocated Into the General Fund df the State, the 

revenue derived from Article 13 is allocated as now‘provided7'by 

law, and the reVenue'~callected fpom numerous other ai+tlcles'~axW 

to be put into's Clearance Filnd and the money from said Cleatitince 

Funa is to be allocated and appropriated to various other funds. 

However, while Section 4 of Article XVIII,~@rovides that tki&'tax 

monies collected thereunder are to be allocated as thereinafter 

provided In the Act, we are unab,le to find any provision In the 

Act allocating the money collected under said Article XVIII. It 

iS 6ur opinion that lr'v~ew of such failure Iii the Act to allocate such moneys the same niust be allocated as Is ndw.prbvided 

under the General Law, that Is, one-fourth to the avallable 

school fund and three-fourths to the General Fund of the State. 

It follows from our answer to your first question 

that the $800,G00.00 In the Suspense Fund which yoU describea 

lrmst also be allocated as Is now provided by General Law, that 

is, one-forth to the Available School Fund and three-fourths 

to the General Fund of this State. 

Yours very truly 

ATTORNEYGENERALOF TEXAS 

By s/Billy Goldberg 

Billy Goldberg 

Assistant 

BG:lh:wc 

APPROVED MAY 22, 1941 

s/Grover Sellers 

FIRST ASSISTANT 

ATTORNEY GENERAL 

Approved Opinion Committee By s/EWB Chairman