December 13, 1957

Honorable Robert S.Calvert Opinion No.WW-311 Comptroller of Public Accounts Capitol Station Re: The authority of the CompAustin 11, Texas troller of Public Accounts, under the Constitution of Texas, Art. VII, Sec. 17, as adopted in 1947 and 1956, to authorize remittances to certain colleges ofmoney received by the State after December 31, 1957, from taxes theretofore levied by the 1947 amendment, when such remittances are not tobe applied on notes or bonds issued Dear Mr. Calvert: pursuant to such amendment.
Your letter requesting our opinion presents the following question:"Withrespect to Section 17 of,Article VII,

added as an amendment to the Constitution of Texas onAugust 23, 1947,will itbe proper for the Comptroller of Public Accounts to authorize remittances to the governing boards of the colleges named therein ofmoney received by the State after December 31, 1957, from taxes levied during the initial ten-year period ending on said date, when such remittances are not tobe applied on notes or bonds issued pursuant to such amendment to the Constitution?"
Your letter also states:

"The experience of this office indicates that over 60% of themoney from taxes levied by theHonorable Robert S.Calvert, page #2 (WW-311)

original amendment for theyear 1957 will not reach the State Treasury until after December 31, 1957. In addition, for several years after December 31, 1957, the close of the initial ten-year period, money from taxes levied during thatperiod, but which were not timely paid andbecame delinquent, will come into the Treasury." Section 17ofArticle VIIwas added to the Constitution of Texas onAugust 23, 1947; for convenience itwill be designated as the "1947Amendment." A subsequent amendment was adopted onNovember 6, 1956; itwill be designated as the "1956Amendment." The 1947 Amendment authorized the issuance ofbonds or notes by the governing boards of certain named colleges "for the purpose of acquiring, constructing and initially equipping buildings, or other permanent improvements at the
. . . institutions
. . .)I,suchbonds or notes tobe secured by the pledge of a special State advalorem tax on property of Five (5o)Cents on the onehundred dollars valuation as specifically allocated in the amendment on apercentage basis to the respective colleges. Subsequently, an opinion of this Department (A.G.Op. No-V-799, 1949, citing A.G. Op. No-V-798, 1949) construinq only the 1947 Amendment, concluded as follows:

"Theproceeds of the Five (5$)Cents tax leviedby Section 17 ofArticle VII, Constitution of Texas, may not be withdrawn from the State Treasury for any purpose other than payment of principal and interest upon bonds or notes authorized tobe issued under such constitutional provision."
But the 1947Amendment will be superseded or repealed on January 1, 1958, by the express language of the 1956Amendment and thereafter authority for the issuance ofbonds and notes under the 1947Amendment will be non-existent. Nevertheless, the 1956 Amendment expressly preserves the "allocation of the revenue". -

Honorable Robert S. Calvert, page #3 (WW-311)

made by the 1947Amendment and specifies that such allotment isnot tobe affected "inanyway" by theprovisions of the 1956Amendment. The allocation of funds in the 1947Amendment begins in the following language:

"Funds raised from said Five (Se)Cents tax levy for the ten (10)year period beginning January 1, 1948, arehereby allocated to the following instituzns of higher learning, and in tbe.following proportions towit:

. . . U (Emphasis added) There follows a list of the institutions and the percentage of the total tax collections "hereby allocated" to each. The 1956Amendment provides:

"This amendment shall be self-enacting: provided, however, it shall not become operative or effective upon its adoption so as to supersede or repeal the former provisions of this Section, but shall become so operative and effexve on Januaryx, 1958. - nor shallthe

-, . . . , provisions of this amendment affect in anyway the prior allocation of theEvenue for the ten-year period beginning January 1, 1948, asheretofore authorized by (the1947Amendment)." (Emphasis and matter inparentheses supplied)
Inorder to ascertain the intent of the electorate in approving the adoption of the two amendments inquestion it isnecessary to construe them together. The 1947Amendment clearly provided that the tax "funds arehereby allocated" to the colleges named; the 1956Amendment just as clearly provides that such prior allocation of revenue shall notbe affected in any way.Honorable Robert S. Calvert, page #4 (WW-311)

The intent is clear to the effect that the colleges named in the 1947Amendment are to receive, as allocated, their respective shares of all the taxmoney received, or tobe received, by the State Treasury as a result of the levy made by the 1947 Amendment, even though on January 1, 1958, their power to issue bonds and notes under the 1947Amendment will no longer exist. Under no other construction could theprovision of the 1956Amendment be given effect, wherein it is stated:

II e
. . , nor shall theprovisions of this amendment affect in anyway theprior allocation of the revenue for the ten-year period beginning January 1, 1948, asheretofore authorized by theprovisions of Section 17 of Article VII of this Constitution as adopted August 23, 1947." (Emphasis added)
It is apparent from the language of the 1947Amendment that the taxwas levied onbehalf of the colleges for the purpose of their acquiring, constructing and initially equipping buildings, or other permanent improvements at the designated colleges. It is fundamental thatmoney from taxes levied and collected for a certain purpose may be expended for such purpose only. Carroll v.Williams, 109 Tex. 155, 202 S.W. 504 (1918): Spears v. City of South Houston, 137 S.W. 2d 197 (Civ.App. 1940, affd. 136Tex, 218, 150 S.W. 2d 74).
You are, therefore, respectfully advised thatyour question is answered in the affirmative, the remittances tobe made to the colleges named and apportioned among them in accordance with the allocation made in the 1947Amendment, and such funds are tobe used by the colleges exclusively for thepurpose described in thepreceding paragraph.
SUMMARY The Comptroller of Public Accoun,tsmay authorize remi.ttancesto the colleges named in ,the1947Amendment to the Constitution of Texas, Article VII, Section 17, in accordance with the allocation therein made,Honorable Robert S. Calvert, page #5 (WW-311)

ofmoney received by the State after December 31, 1957, from taxes theretofore levied by said 1947Amendment, although such remittances arenot tobe applied on notes or bonds issued pursuant to such amendment.

Very truly yours,

WILL WILSON

Assistant APPROVED:
OPINION COMMITTEE
Geo.P. Blackburn, Chairman H. Grady Chandler J. C. Davis, Jr, John Reeves
REVIEWED FOR THE ATTORNEY GENERAL By: James N. Ludlum, First Assistant.