### THEA~ORNEY GENERAL OFTEXAS

September 2, 

### 1959

Honorable Coke R. Stevenson OpinionNo. -- . 

### ww-6% Texas Liquor Control Ljoara P. 0. Box 56 Re: Whether subsection2 of Austin 61, Texas H. B. 11, 56th Leg., 3rd C.S., directs the Liquor Control Board to collect a floor tax from all setailers of distilled Dear Mr. Stevenson: spirits in Texas.

You have requested an opinion concerningwhether or not Subsection 2 of Section 2 of House Bill 11,passed at the 3rd Called Session of the 56th Legislature, directs your Department to collect a "floor tax" from all retailers of distilled spirits in Texas. You have also directed attention to the fact that an objection to the Constitutionality of theAct has been made on the ground that if it does direct that the tax be collected/it is in conflict with Article III, Section 35 of the Texas Constitution.

The constitutional section referred to is as follows:
"Nobill, (exceptgeneral appropriationbills, which may embrace the various subjectsand accounts for and on account of which monies are appropriated) shall contain more than one subject,which shall be expressed in its title But if any subject shall be embraced in an act,which shall not be expressed in its title, such act shall be void only as to so much thereof,as shall not be so expressed."

The pertinentportions of the title to House Bill 11 are:
"AnAct.
. .amendingSection 21 of Article 1. Chapter 467, Acts of the 44th Legislature, Second Called Session 1935> as amended (compiledas Article 666.~21 of <Vernon's

Annotated Penal Code of Texas) increasing the g on distilled spirits and wine.

. ." ‘(Emphasis added.)
In so far as relevant, Section 2 of House Bill 11 provides:"Section 2. Section 21 of Article 1, Chapter 467,Honorable Coke R. Stevenson, Page 2 (OpinionNo. W- 

### 695 )

Acts of the 2nd Called Session of the Forty-fourth Legislature as last amended by SectionVIII of Chapter 402, Acts of the Fifty-secondLegislature,Regular Session 1951, compiled as Article 

### 666-21, Vernon's Annotated Penal,Code of Texas, shallbe and is hereby amended so as to read hereafter as follows:
'Sec.21 There is hereby levied and imposed on the first eal? in addition to the other fees and taxes levied by this act the following:
'
. . ,.fiewrates on distilled spirits specifiedlf.

. 'Theterm "first sale” as used inArticle 1 of this Act shallmean and include the first sale,possession, distribution,or use in this State of any and all liquor refined,blended,manufactured, imported into, or in any othermanner produced or acquired,possessed, or brought into this State. 'Thetax herein levied shallbe paid by affixing a stamp or stamps on each bottle or container of liquor. Said stamps shall be affixed in strict accordancewith any rule or regulationpromulgated in pursuance of this Act; provided, however, any holder of a permit as a retail dealer as that term is definedherein shall be held liable for any tax due on any liquor sold on which the tax has not been paid.

/The provisio&s of the twoprecedingparagraphs*are'Fecodificationsof provisions inArticle 

### 666-21, Tex. Pen. CodeJ' "(2) It is furtherprovided that suchportion of the taxprovided by the amendment to Sectiu,l 21 of tne Texas Liquor Control Act by Subsection (1) of Section 2 of thisAct which represents an increase in the tax rate on liquors shall apply and attach to all liquorwhich shall be in thepossession of any person for the purpose of sale. Every person having possession of any liquor for thepurpose of sale shall on the effective date of thisAct render and submit to the Texas Liquor Control Board at Austin, Travis County, Texas a true and correct sworn inventory of,all such liquors, setting forth in detail the size of containers and the quantity thereof and shall attach to such sworn inventorya cashiers' check or certified check payable to the State of Texas in an amount equal to the portion of said tax representingan increase in .che pax rate on such liquor.Honorable Coke R. Stevenson, Page 3 (CPi nion NO. WW-695 )

The sworn inventory shall be renderedupon a form to be prescribed and furnishedby the Texas Liquor Control Board. The sworn inventorywith cashiers' check or certified check attached shallbe placed in the United Statesmail, addressed to the Texas Liquor Control Board at Austin, Travis County, Texaswithin twenty-four 

### (24)hours after the effective date of thisAct, and a true, correct and exact copy thereofmust be retainedby thepersonmaking such report. Failure or refusal to render and submit such inventoryand cashiers' check or certified check on or before the time specifiedabove or the willful falsification of such inventory shallbe deemed sufficientgrounds for the cancellation of any permit or license by the Board. The capy of the sworn inventoryand the purchaser's copy of the cashiers' check or ce-tified check retainedby theperson making such report shall be evidence of the payment of the portion of the taxwhich representsan increase. The Texas Liquor Control Board is hereby authorized to adopt. rules and regulationswhich may includeprovisions for thepresent stampsfiig or stamps of thepresent denominations, to evidencepayment of both the increasein the tax herein levied and the tax heretofore levied in the Texas Liquor Control Act as amended." There can be no doubt that the tax increase imposed by Section 2 of House Bill lllsintended to apply .toall "floor stock"held by retailers for the purpose of sale as of September 1, 1959; the direction to collect the tax from the retailers is explicit. The question thatmust be decided is whether or not such intendmentand direction are comprehended by the caption of theBill.

The purpose of Art. III, Sec. 

### 35,Tex. Const. is to insure that legislator, lawyer and layman are reasonably apprised of the nature or contents of each particularbill, thus avoiding deception and giving thosewho are interested in a subjectunder considerationan opportunity to be heard thereon. Sec. 39 Tex. Jur. 

### 77,and cases there cited. Said section is to be liberally construed, i.e., it cannot be given a constructionwhich would embarrass,defeat or retard leaislation. Ibid. P. 80. Particularly is this true in regard to revenuemeasures. City of Beaumont v. Gulf States Utilities Co., 

### 163S.W.2d 

### 426 (Tex.Civ.App.1942, errorefused).

Giving the caption to H. B. 11 literal interpretation, itspurpose (in so far as relevant) is to amend Art. 

### 666-21, ,Tex.Pen.Code,

by increasing the tax on distilled spirits and wine. It should be noted that the .captiondoes not specifyHonorable Coke

the amount, or .~-- The tax levied R. Stevenson, Page 4 (OpinionNo. WW- 695)

the nature of, or who is to pay the tax increase. by A.P=~-21, Tex. Pen.Code is imposed on distilled spirits and wine on which the taxhas not previously -.-.- - been paid. (Seequotation o??Sec. 2.T H, -,.- ConseEtiy, By-il,upsa).

it is clear that any interestedperson(harticua retailer)would reasonablybe put on notice that the amendment to saidArticle might make provision for the collection of the tax increase on all liquorheld for sale as of the effective date of the increase.

It iswell settled that the caption of a bill need not state every detail designed to effectuate,accomplish, or enforce themain objectof the act, but is sufficient if such main purpose is stated. ContinentalBus System v. Carney, 310 S.W.2d 676 (Tex.Civ.App.1958,error refused),City 07 Beaumont v. Gulf State Utilities Co., supra.And see 39 Tex. jur. 90.7s stated inWilkinson v. L yen,,2U'(S.W. 638,640 (Tex.Civ.App. 1918):

"It is also well settled that an act of the Legislature is unobjectionable on the ground that it containsmore than one subject, if those subjects are germane or subsidiary to themain sub,iect; that the requirement of the constitutionalprovision is addressed to the subject,and not to the details of the act, to accom lish themain object of the act,and such detailsmay be mu tifarious.miffS=te, -+- - TTex. Cr. R. 63, 109 S.W. 176; Singleton v. State, 53 Tex. cr. R. 626, 111 S.W. 736, and authorities there cited." (Emphasisadded.) Section 2 of H. B. 11, in effect, does three things:

1. Specifies the new rate applicable to distilled spirits and wine. 2. Clearly expresses the intent that for thepuspose of the rate boost, "firstpossession" shall includepossession of stock held for sale on September 1, 1959.
3. Directs that the tax increasebe collected on all such stock.
It is clesr thatNos. 2 and 3 above are designed solely for the purpose of effectuating the tax increase,and are germane to themain object of theBill as stated in the caption.
For the reasons above stated,you are advised that theprovisions of subs. 2 of Sec. 2 of H. B. 11 are consti-Honorable Coke R. Ste.venson, Page 5 (OpinionNo. WW695)

tuitional.Accordingly,you are directed .to collect the tax increase from all retailers on all stockheld fo;,sale as of Septemoer 1, 1959.
SUMMARY Subsection 2 of Section 2 of House Bill 11, 3rd C.S., 56th Leg., directs the Liquor Control Board to collect a "floor tax" on all stockheld for sale as of September 1, 1959, from all retailers of distilled spiritsand wine in Texas. Such provision does not contraveneArt. III, Sec. 35, of the Texas Constitution. Very truly yours, WILL WILSON Attorney General

By: k N. t+

Price ' JNP:lp
APPROVED:
OPINION COMMITTEE: Geo P. Blackburn, Chairman
J. C. Davis
James R. Irion Marvin H. Brown, Jr.
REVIEWED FOR THE ATTORNEY GENERAL By: W. V. Geppert