January 28, 1955

Hon. Robert S. Calvert Comptroller ofPublic Accounts Capitol Station Austin, Texas Opinion No. S-150 Re: Whether S. J. R. Noi 14as it pertains

tothe Texas Turnpike Authority prohibits the State Highway Commission from spending further funds as authorized under Sec. 20 ofHouse Bill No. 4 ofthe 53rd Legislature. Dear Mr. Calvert: YOUrequest our opinion with reference tothe above captioned matter. Your question reads as follows: “The question has now arisen as towhether S.J.R. No. 14as voted onby the people in the General Election onNovember 2prohibits the State Highway Commission’s spending further moneys as authorized under Section 20 ofHouse Bill No. 4. I shall thank you to advise this department in the premises.” Senate Joint Resolution No. 14which proposed an amendment toArticle IIIof the Constitution ofTexas was submitted tothe voters ofthis State on November 2, 1954, and carried by amajority vote. This constitutional amendment became effective onNovember 19, 1954. A constitutional amendment speaks from its effective date. Therefore, until the effective date of the amendment inquestion, the Legislature had the power and authority to lend the credit ofthe State to apublic agency, to grant public money toapublic agency and to assume the indebtedness ofapublic agency infurtherance ofaState governmental function. Of course, the construction ofpublic highways is apublic duty and aState governmental function... .,-.

Hon. Robert S. Calvert, page 2(S-150)

The constitutional amendment, as submitted by Legislature, reads as follows:

“Section 52-b. The Lerzislature shall have no power or authority toin any m&ner lend the credit of the State or grant any public money to, or assume any indebtedness, present or future, bonded or otherwise, ofany individual, person, firm, partnership, association, corporation, public corporation, public agency, or political subdivision ofthe State, or anyone else, which is now or hereafter authorized to construct, maintain or operate toll roads and turnpikes within this State.” the

House Bill No. 4, Chapter 410, Acts ofthe 53rd Legislature, Regular Session, 1953, created the Texas Turnpike Authority and constituted it apublic agency and prescribed its powers and duties. This act became effective onMay 27, 1953. Section 20 provides as follows: “The State Highway Commission is hereby

authorized inits discretion, ifand to the extent requested by theAuthority, to expend out ofany funds available for the purpose, such moneys as may be necessary for the study of aProject and to use its engineering and other forces, including consulting engineers and traffic engineers, for the purpose of effecting such study and topay for such additional engineering and traffic and other expert studies as itmay deem expedient and all such expenses incurred by the State Highway Commission prior tothe issuance ofturnpike revenue bonds under the provisions ofthis Act, shall be paid by the State Highway Commission and charged to such Project, and the State Highway Commission shall keep proper records and accounts showing each amount so charged. Upon the sale of turnpike revenue bonds for any such project, the funds so expended by the State Highway Commission in connection with such Pro+ct shall be reimbursed tothe State Highway Commission from the proceeds of such bonds.”

Funds were appropriated by the 53rd Legislature in the departmental appropriation bill to the Texas Highway Commission which are available to pay for the preliminary expenses enumerated in said Section 20._.

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Hon. Robert S. Calvert, page 3 (S-150)

Itis clear tous that the public money inquestion, which was made available by the 53rd Legislature to pay for the preliminary expenses enumerated in said Section 20, was granted by the Legislature before the effective date of the constitutional amendment. Itis likewise clear that House Bill No. 4in effect lent the credit of the State and assumed certain indebtedness prior tothe constitutional inhibition. You are, therefore, advised that the constitutional amendment inquestion does not prohibit the State Highway Commission from expending out ofthe available funds appropriated by the 53rd Legislature such moneys as may be necessary to pay for the preliminary expenses as authorized inSection 20 ofHouse Bill No. 4. SUMMARY The constitutional amendment submitted tothe voters by Senate Joint Resolution No. 14will not prohibit the State Highway Commission from expending out ofavailable funds appropriated by the 53rd Legislature such moneys as may be necessary to pay for the preliminary expenses as provided for in Section 20 ofHouse Bill No. 4, Chapter 410, Acts ofthe 53rd Legislature, Regular Session, 1953.
Yours very truly,

WVG:rn

APPROVED: J.A. Amis, Jr. Reviewer Robert S. Trotti First Assistant John Ben Shepperd Attorney General JOHN BEN SHEPPERD Attorney General

Assistant