The opinion
THEA~ORNEY GENERAL
OFTEXAS
September 2, 1959
Honorable Coke R. Stevenson
-- . Opinion No. ww- 6%
Texas Liquor Control Ljoara
P. 0. Box 56 Re: Whether subsection 2 of
Austin 61, Texas H. B. 11, 56th Leg., 3rd
C.S., directs the Liquor
Control Board to collect
a floor tax from all se-
tailers of distilled
Dear Mr. Stevenson: spirits in Texas.
You have requested an opinion concerning whether
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 Constitu-
tionality of the Act 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:
"No bill, (except general appropriation bills,
which may embrace the various subjects and 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 pertinent portions of the title to House Bill
11 are:
"An Act. . .amending Section 21 of Article 1.
Chapter 467, Acts of the 44th Legislature, Second
Called Session 1935> as amended (compiled as Article 666.~21
of <Vernon'sAnnotated Penal Code of Texas) increasing the
g on distilled spirits and wine. . ." ‘(Emphasisadded.)
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 (Opinion No. W- 695 )
Acts of the 2nd Called Session of the Forty-fourth
Legislature as last amended by Section VIII of Chapter
402, Acts of the Fifty-second Legislature, Regular
Session 1951, compiled as Article 666-21,Vernon's
Annotated Penal,Code of Texas, shall be 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. .
'The term "first sale” as used in Article 1 of this
Act shall mean 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
other manner produced or acquired, possessed, or brought
into this State.
'The tax herein levied shall be paid by affixing a
stamp or stamps on each bottle or container of liquor.
Said stamps shall be affixed in strict accordance with
any rule or regulation promulgated in pursuance of this
Act; provided, however, any holder of a permit as a
retail dealer as that term is defined herein 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 two preceding para-
graphs*are'Fecodifications of provisions in Article 666-21,
Tex. Pen. CodeJ'
"(2) It is further provided that such portion of
the tax provided by the amendment to Sectiu,l21 of tne
Texas Liquor Control Act by Subsection (1) of Section 2
of this Act which represents an increase in the tax rate
on liquors shall apply and attach to all liquor which
shall be in the possession of any person for the purpose
of sale. Every person having possession of any liquor
for the purpose of sale shall on the effective date of
this Act 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 inventory a cashiers'
check or certified check payable to the State of Texas
in an amount equal to the portion of said tax
representing an increase in .chepax rate on such liquor.
Honorable Coke R. Stevenson, Page 3 (CPinion NO. WW-695 )
The sworn inventory shall be rendered upon a form to be
prescribed and furnished by the Texas Liquor Control
Board. The sworn inventory with cashiers' check or
certified check attached shall be placed in the United
States mail, addressed to the Texas Liquor Control
Board at Austin, Travis County, Texas within twenty-four
(24) hours after the effective date of this Act, and a
true, correct and exact copy thereof must be retained by
the person making such report. Failure or refusal to
render and submit such inventory and cashiers' check or
certified check on or before the time specified above
or the willful falsification of such inventory shall be
deemed sufficient grounds for the cancellation of any
permit or license by the Board. The capy of the sworn
inventory and the purchaser's copy of the cashiers'
check or ce-tified check retained by the person making
such report shall be evidence of the payment of the
portion of the tax which represents an increase. The
Texas Liquor Control Board is hereby authorized to adopt.
rules and regulations which may include provisions for
the present stampsfiig or stamps of the present denomi-
nations, to evidence payment of both the increase in 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 lllsintendedto apply .to all "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 that must be decided is
whether or not such intendment and direction are comprehended
by the caption of the Bill.
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 particular bill,
thus avoiding deception and giving those who are interested
in a subject under consideration an 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 construction which would embarrass, defeat or retard
leaislation. Ibid. P. 80. Particularly is this true in
regard to revenue measures. City of Beaumont v. Gulf States
Utilities Co., 163 S.W.2d 426 (Tex.Civ.App. 1942, erro-
refused).
Giving the caption to H. B. 11 literal interpretation,
its purpose (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 specify
Honorable Coke R. Stevenson, Page 4 (Opinion No. WW- 695)
the .~--
amount, or the nature of, or who is to pay the tax increase.
The tax levied by A.P=~-21, Tex. Pen.Code is imposed on
distilled spirits and wine on -.-.-
which the -tax has not previously
-,.-
been paid. (See quotation o??Sec. 2.T H, By-il,upsa).
ConseEtiy, it is clear that any interested person(harticu-
a retailer) would reasonably be put on notice that the amend-
ment to said Article might make provision for the collection
of the tax increase on all liquor held for sale as of the
effective date of the increase.
It is well settled that the caption of a bill need
not state every detail designed to effectuate, accomplish, or
enforce the main object of the act, but is sufficient if such
main purpose is stated. Continental Bus 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 in Wilkinson v. Lyen,,2U'(S.W. 638,640
(Tex. Civ.App. 1918):
"It is also well settled that an act of the Legis-
lature is unobjectionable on the ground that it contains more
than one subject, if those subjects are germane or subsidiary
to the main sub,iect;that the requirement of the consti-
tutional provision is addressed to the subject, and not to
the details of the act, -+-
to accom lish the main object of -
the
act,and such details may 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."
(Emphasis added.)
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 the pus-
pose of the rate boost, "first possession"
shall include possession of stock held for sale
on September 1, 1959.
3. Directs that the tax increase be collected on
all such stock.
It is clesr that Nos. 2 and 3 above are designed
solely for the purpose of effectuating the tax increase, and
are germane to the main object of the Bill as stated in the
caption.
For the reasons above stated, you are advised that
the provisions of subs. 2 of Sec. 2 of H. B. 11 are consti-
Honorable Coke R. Ste.venson,Page 5 (Opinion No. WW695)
tuitional. Accordingly, you are directed .tocollect the tax
increase from all retailers on all stock held 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 stock held for sale as of
September 1, 1959, from all retailers of
distilled spirits and wine in Texas. Such
provision does not contravene Art. III,
Sec. 35, of the Texas Constitution.
Very truly yours,
WILL WILSON
Attorney General
By: t+
k N. 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