### “33~~ fiTTOWNEY ,GENERA.L I OFTEXAS ‘

.
PRICE DANIEL ATTORNEY

GENERAL October 4, 1951
Hon. Cecil E. Burney, President State Bar ofTexas Corpus Christi, Texas Opinion No, V-1299 Re: Exemption from advalorem taxes ofproposed Dear Sir: permanent headquarters of the State Bar of Texas. We quote the following excerpt from your request of September 24, 1951:

“The State Bar ofTexas is in the process of acquiring a site for the ercctien of permanent headquarters for the,organization inAustin. It is necessary thatwe obtain from you an opinion concerning the liability of the State Bar for ad valorem taxes on this property.” Section 2 ofArticle 320a-1, V.C.S., the State Bar Act, reads as follows:

“Sec. 2;. There is hereby created the State Bar, which is hereby constituted an administrative agency

.., of the Judicial Department of the State, with power to contract with relation to its ownaffairs andwhich may sue andbe sued and have such other powers as are reasonably **necessary** to carry out the purposes of this Act. * InAttorney General’s Opinion O-2784 (1~940),this ‘office ,held thatthe State 

### Bar was exempt from Federal Employment **Taxes** with respect to services performed by persons employed and paid by it under the State Bar **Act** and the rules ofthe Supreme Court issued under such Act. We quote the following excerpt from Opinion O-2784:

“In **our** opinion, the State Bar of Texas is an instrumentality 6f the State ofTexas and is wholly owned by the State, within the provisions of the Internal Revenue Code 4uoted above. **[ 26**  U.S.C.A., Sets. 1426(b)(7) and 1607(c) 7), excepting from taxes “service performed in the employ ofa State, or any political subdivisionHon. Cecil E. Burney, Page 2 (V-1299)

thereof, or any instrumentality of any one or more of the foregoing which is wholly ownedby one or more States or political subdivisions;

. . ,“I The regulation and discipline of lawyers and theformation andadministration of an integrated bar are properly within the functions of the~iudicialbranch of the,novernment of the State. Compare In re Inte ration GfState Bar ,of Oklahoma, 185 Okla. tion of Nebraska Stat:~&9~~%%i~~, m N W 265; In re Edwards, 45 Idaho 676, 266 Pac. 665; State Bar of California v. Superior Court, 207 Gal.:>23 278 Pac. 432-iIn re Gibson;.35 ,N.M; 550, 4 P.2d 643: “The Stat&Bar ofTexas is de,signed s~olely~ for the purpose of carrying outthesesfunctions., The fees which~are paid by the lawyers under the requirements of the statutes, and the rules,:of the Supreme ~Couitare used under the direction of,theSupreme Court for.the purpose of carrying out the provisions of the State Bar Act and for no .othe,r purpose. ~vtiprivate persqn has any’interest whatever in the State Bar or its funds.” Attorney General.‘s, Opinion V-480 (1948). inholding that employees of the State Bar ofTexas were eligible tobe members of the Texas Employees Retirement System, again recognized the State **Bar** as an agency of theJudicialDepartment of the State.

Article XI, Section 9, of the Constitution of the State of

‘Texas reads, in’part, as follows:

“The property of counties, cities andtowns, owned andheld only for pub1i.cpurposes, such as public buildings and the sites therefor. [~ sic] Fire engines and the furniture thereof, and all property used. or intended for extinguishing fires, public **grounds** andall ,other property devoted exclusively to the use andbenefit of the public shall be exempt from for,ced sale and from taxation ” , . I

. The above quoted constitutional provision is self-operative, A. &M. Consol. Independent School Dist. v. City of Bryan, 143~Tex. 348, 184 S.W.Zd 914 (1945).

The State Bar of Texas, as an agency of the Judicial Department of **our** ‘Stategovernment, is a governmental agency. Its functions being governmental innature, its purposes are, perforce, public purposes; and its property is therefore “public property devoted exclusively to public **use** and is exempt **from** taxation underHon. Cecil E. Burney, Page 3 (V-1299)

Art. XI, Sed. 9, of the Constitution;

. . .*. Lower Colorado River, Authority v. Chemical Bank &Trust Go., 144 Tex. 326, 190 S.W. 2d 48 (1945). You are accordingly advised that the proposed permanent headquarters would be exempt from taxation.
SUMMARY The State Bar ofTexas is a governmental agency of the State, and property acquired by it as a site for a permanent headquarters becomes public property devote’dexclusively to public use and is exempt from taxation under Article XI, Section 9, of the Constitution of Texas. Lower Colorado River Authority v. Chemical Bank &Trust CO., 144 Tex. 326, 190 SW 2d 48

. . n9451 . **Yours** very truly,

APPROVED: W. V. Geppert Taxation Division Charles D. Mathews First Assistant Price Daniel Attorney General

MMC/mwb PRICE DANIEL Attorney General

-‘l&s.Mari&taMcG egor Creel ’ Assistant