xt737p8tct0k https://exploreuk.uky.edu/dips/xt737p8tct0k/data/mets.xml Alabama United States. Works Progress Administration 1936 Other contributors include Lowe, Robert C. (Robert Chapin), 1907- and Lander, David S. 18 p. ; 27 cm. This bulletin is one of a series presenting state constitutional provisions affecting public welfare.
Prepared by Robert C. Lowe and David S. Lander under the supervision of A. Ross Eckler. Includes bibliographical references. UK holds archival copy for ASERL Collaborative Federal Depository Program libraries. Call number Y 3.W 89/2:36/Al 1b. books  English Works Progress Administration This digital resource may be freely searched and displayed in accordance with U. S. copyright laws. Alabama Works Progress Administration Publications Analysis of Constitutional Provisions Affecting Public Welfare in the State of Alabama text Analysis of Constitutional Provisions Affecting Public Welfare in the State of Alabama 1936 1936 2015 true xt737p8tct0k section xt737p8tct0k   IIIIIIUI Vgpi   KENTUQKY      
?J4'ziI x
*:3 I?       FEI? EIFJA  
I \

   O a
O •
PnapAna¤ av
Rosen? C. Lows Ann DAvI0 S. LANDER
Duvnsnon or SOCIAL RzszAncH
9 •

·¤ **53
»  st   '=l
< .`.’·  
  Pre f a c e
Mute *1* .··
  sl = . . .
  This bulletin is one of a series presenting
  State constitutional provisions arreotlog public wel-
  fare, prepared to supplement the State by State di-
  gests of public welfare laws so as to provide in eb-
  stract form the basis for the public welfare services
  of the several States.
   L .
  ThB PI‘0VlS10I1S quoted are those concerned
  directly with public welfare administration and such
  others as may substantially affect a public welfare
  program, even though only indirectly related. It
  would be impossible to consider within the limits of
 r wg? #{,,3
  this study every remotely connected constitutional
  provision. The indirectly related provisions in-
  · cluded, therefore, have been restricted to those con-
  cerning finance, legislation, and the methods or ooo-
  etitutional amendment.
  An attempt has been made, by a careful se-
  lection of the most recent cases decided by the high-
.s:¤s.F- *2 _ _
  est courts of the States, to indicate wherever possi-
  ble how these provisions have been construed. These
  Cases &1‘e included in footnotes appended to the con-
l b stitutional provisions shown.
  It is hoped that these abstracts will be
v.,=..· Hifi ·· ' ZX ·
  useful to those interested in public welfare ques-
  tions in indicating how State and local public wel-
  fare administration may be affected by constitutional
  powers and limitations.
  ¤.5   v

 S; TNYT;   I
Incidence of Responsibility for Welfare Program l
Financial Powers and Limitations
Taxation and Assessments I
  · Exemptions 7
‘·?‘i**" Borrowing and Use of Credit 9
Other Income 15
Appropriations and Expenditures I5
Provisions Affecting Legislation 16
Constitutional Amendment or Revision l8

 j",}[]}f§"' _\’*"j'¥‘?'TT 7" ""I"Y€"%'  T 'T": V  vb ' _~ i (   °K *'· _ '  ’   _,',_. `  , -__ g _••  ‘ .  _,: _  GP '  `,·;;· 1, 'T"Zf`7'€_ 1 'T'f¥*"!*[*Qfy{]`·'T?.`7fTT?` :‘¥"" T"T"'!H!$·; y _ _ _
 $·~;;¤·*  T EE » · p;».$¥i `i  —».r      ‘   »{ iv  >‘*`T= ’‘·‘ F °+—’i¥¤i*?·%*,Te'$*L¥gé  `vvi    ‘¥&¢ ,7
[, f¤`k:Mf‘ Y;_“`:¥_NL. »`-rl, $3}.1,  .; *4;}.   ‘:=*  ‘» .‘i ‘      wnagzfh ,7 wl _ _J~ v,; ·. a y    tri":.-Z  A k? djlzaju;g}`,3.4f'f.€_z3..!é,·,3;‘;2%,§${I.e:_$.v_`z`iQ;$¤1i._7;r‘;_}!·g _-jg; gl: £_v _¢; . J »,. 4,, . . , · , ·, ,_..»___ _, . , ..... » . . , ,
¢;¤.  : ·¢*, ·, .;»{;;·: .·` .".‘¤·... ,,.,>, .» » · r *· " ·  
I `

  - — $$2 ll
‘ Alabama 1.
I. Incidence of Responsibility for Welfare Program
A. It shall be the duty of the legislature to require the
several counties of this state to make adequate provision for the
maintenance of the poor. §/
II. Financial Powers and Limitations
A. Taxation and Assessments
(1) State
(a) A11 taxes levied on property in this state
shall be assessed in exact proportion to the value of such property,
... gf
1, Constitution (1901) with all amendments to October 15, 1956
and proposed amendments to be voted upon November 1956.
_ All citations to the Constitution are to M1chie's Alabama
_ l, Code of 1928 and Michie's 1956 cumulative supplement.
2. Constitution, Art. IV, Sec. 88.
No cases construing this section have been located. Appar-
ently there is nothing in the Constitution to prevent the grant-
ing of direct relief by the State. The Legislature may make ap-
) propriations for charitable or educational institutions. See
( A firemen's pension statute does not violate the Constitu-
( tion. See page 12, footnote 19.
I Provisions of the Alabama Code provide for the care of pau-
( pers by the counties and for municipal poorhouses. Michie's
, Code 1928, Sec. 2787-2806, 2055.
A 5. Constitution, Art. XI, Sec. 211.
l This section and section 217 relate only to direct taxes
) on property, and have no relation to privilege, license, or oc-
? cupation taxes, or to franchise taxes of corporations. Phoenix
  Carpet Company vs. State, 118 Ala. 145, 22 So. 627 (1897) con-
1 struing same section in former Constitution.
1 Under this section and section 217 the State may tax and
  exempt such property as it sees fit so long as no arbitrary
, classifications result in the subjects taxed and those made the
L subject of exemptions, so the State may levy an ad valorem tax
) on securities of domestic corporations and exempt securities of
{ foreign corporations owned by residents in this State, or it can
* exempt such foreign securities from all ad valorem taxation and
` ·   levy an excise or privilege tax in lieu thereof. Lee vs. State
  (Footnotes forwarded)

 r v ¤~<:-.¢xi".tsrf;;;; tran.»nrs¤·r:;xszvt2#ar;sn»r*n<¤r2*s.;;». ___~F`“~
1F‘ C
a . Aiabama 1
II. Financial Powers and Limitations (Cont'd) .P I
B, Exemptions (Cont'd)  
(l) State (Cont'd)  
(b) . . . The legislature shall, by general laws, l
provide for the payment to the state of Alabama of a franchise tax by (
corporations organized under the laws of this state which shall be in {
proportion to the amount of capital stock; but strictly benevolent, (
educational or religious corporations or federal building and loan (
associations organized pursuant to an act of congress known as the V
home owners' loan act of 1955, as amended, and as the same may here- Q
after be amended, or building and loan associations organized under or Q
authorized to do business by the laws of Alabama shall not be required ‘
to pay such a tax on their withdrawable or repurchaseable shares . . . 14/ ,
(Footnote #15 - Continued)
five years, the property of any shipbuilding yard, or factories ;
for the manufacture of textiles, wood pulp products, farm implements,
or any other manufactured products. Acts of 1927, pages 55, 56,
641 and 642. The Court in holding this statute constitutional
said that the exercise of the power of taxation within consti- 1
tutional limits is purely legislative, and the power t2_exempt
any class of property from taxation is likewise a matter for the Y
exercise of legislative judgment. Pullman Car and Mfg. Corp. of
Ala. vs. Hamilton, 229 Ala. 184, 155 So. 616 (1954). ; )
Under this section a tract of land owned by a private company, Q
and leased to an individual who conducted a boarding school for (
young ladies thereon held exempt because used exclusively for W
educational purposes. Anniston City Land Company vs. State, 4
160 Ala. 255, 48 So. 659 (1909). J
But on second appeal to the supreme court this same property
was held not exempt because not used exclusively for educational
purposes since part of the property was used for a lodging and
boarding house. Ibid.
Property owned by a religious corporation, but rented by it
for the business of conducting a rooming house, is not exempt
under this section, though the rent is applied to a religious
purpose. State vs. Church of the Advent, 208 Ala. 652, 95 So. 5
Property of a privately owned hospital, devoting over 15 per-
cent of its average annual gross revenues to the treatment of
charity patients held exempt from taxation in the light of a
State statute exempting from taxation all hospitals where treat- r
ment of charity patients constitutes at least 15 percent of
the business of such hospital. Gay vs. State, 228 Ala. 255,
155 So. 767 (1954).
14. Amendment XXVII, Adopted 1955, amending Art. XII, Sec. 229 of
the Constitution.
Under this section statutes exempting banks from franchise
taxes were held unconstitutional, and were void as to this pro- \k ,
vision. State ex rel. Smith vs. Elba Bank and Trust Company,
18 Ala. App. 255, 91 So. 917 (1921). {

 **"""’\·~,   _;_ ___   i r 7  Y ,,_rr _ _ , __,,   _,   ,i_l,l.   .-...o-..._.-7.---- . I
‘ I
I Alabama 9.
+ 2 Q i. . .
I a II. rinancial Powers and Limitations (Cont'd)
I B. Exemptions (Cont'd)
I (l) State (Cont'd) "
I (c) . . . The legislature shall, by general law,
I provide for the payment to the State of Alabama of a franchise tax
I by such (foreign) corporation, but such franchise tax shall be based
I on the actual amount of capital employed in this state. Strictly
I benevolent, educational, or religious corporations shall not be
I required to pay such a tax. l5/
* (2) Counties
I No provisions.
I (3) Other Local Units
I No provisions
I C. Borrowing and Use of Credit
I (l) State
*· I QV (a) After the ratification of this Constitution,
I no new debt shall be created against, or incurred by the state, or its
I authority except to repel invasion or to suppress insurrection, and
A then only by a concurrence of two—thirds of the members of each house
Q of the legislature, . . . provided, the governor may be authorized
I to negotiate temporary loans,never to exceed three hundred thousand
I dollars, to meet the deficiencies in the treasury, and until the
  same is paid no new loan shall be negotiated; . . . léf
  I5. Constitution, Art. XII, Sec. 252.
I l6. Amendment XXVI, Adopted l953.
This amendment replaces section 2lS which contained the same
prohibition against the State's borrowing money. The amendment
makes certain new provisions. It provides that bonds may be
issued for the refunding of existing bonded indebtedness of the
State. The net revenue of income taxes is pledged to pay off
this old indebtedness. It further provides that it shall be
unlawful for the State Treasurer to draw a warrant, unless there
I is money appropriated and available for its full payment.
Furthermore if, at the end of any fiscal year, the amount of
the just claims against the State is more than the amount of
money in the treasury, the amount of money available shall be
prorated, and a pro rata share of each claim paid, and the
remainder declared null and void. Ibid.
(Footnote forwarded)
¤ Q

 { 4a~s~¢:» savanna: is zzrsasaariwetaswazrat:raz4aws‘"ryaiiaxsxw“iY‘*i”'”””"*'**T§*F*"***"T “’2‘ -i*“*'"”" """"" I ""`""""""» ,
( l
10. Alabama (
_   •  {
II. Financial Powers and Limitations (Cont'd)
C. Borrowing and Use of Credit (Cont'd)
(i) state (c¤¤t·d)
(Footnote 316 - Continued) )
This amendment was for the purpose of validating a floating )
debt heretofore incurred under appropriations in excess of )
revenues, and intended to prevent future deficits in the State )
treasury by providing that in case of a deficit, available funds (
were to be prorated, and all excess unpaid appropriations declared i
null and void. In re Opinion of the Justices, 227 Ala. 289, l49
So. 775 (1953).
Under this section the Legislature cannot create debt by .
appropriations in excess of revenues, by the creation of new (
offices or by expanding the functions of government, however
important, or however insistent the public demand. Nor can
executive officers create debt by issuance of warrants pursuant
to appropriations, notwithstanding the holder has rendered a
public service, advanced money, or materials for government  
uses. Hall vs. Blan, 227 Ala. 64, 148 So. 60l (1933). (
An act providing for the issuance of bonds to permit
construction of bridges where the bonds were payable solely out
of tolls to be collected from the bridges and from the residue ·\ {
of the gasoline tax held not to violate section 213 of the
Constitution since such bonds did not create a debt within the
meaning of this section. A debt is created only when there is
a pledge of the general credit of the State. Alabama State
Bridge Corporation vs. Smith, 217 Ala. 311, 116 So. 695 (1928).
Yet a proposed act providing for the issuance of bonds to
maintain and construct school buildings, the bonds to be payable
solely out of funds in the State treasury appropriated for
school purposes, and any special school taxes,held to violate
section 213. The Justices stated that such an act was to be
distinguished from the act mentioned in the case above and did
create a debt within the meaning of section 213 without in any
way explaining their reasons for this opinion. In re Opinions
of Justices, 225 Ala. 356, 143 So. 289 (1932).
Also a proposed law providing for the issuance of special
revenue certificates payable only out of a special fund to be
created by setting aside a certain sum each year out of general
funds to be used for the purpose of paying teachers' salaries
held invalid under this section as creating a debt against the
State. In re Opinion of the Justices, — Ala. —, 143 So. 808
\ {

_ Alabama ll,
0 i O . . i ,. . . .
  · II. Financial rowers and nimitations (Cont'd)
I C. Borrowing and Use of Credit (Cont'd)
p (l) State (Cont'd)
  (b) The State shall not engage in works of internal
j improvement, nor lend money or its credit in aid of such, except as
I may be authorized by the Constitution of Alabama or amendments thereto;
Q nor shall the state be interested in any private or corporate enter-
I prise, or lend money or its credit to any individual, association, or
{ corporation, except as may be expressly authorized by the Constitution
, · of Alabama, or amendments thereto; but when authorized by laws passed
; by the Legislature the state may appropriate funds to be applied to
the construction, repair, and maintenance of public roads, highways
Q and bridges in the state; and when authorized by appropriate laws
Q passed by the Legislature the state may at a cost not exceeding ten
5 million dollars engage in the work of internal improvements, or pro-
i moting, developing, constructing, maintaining, and operating all
f harbors and seaports within the state or its jurisdiction, . . . lzf
§ (c) The State is authorized to engage in the
  construction, improvement, repair and maintenance of public roads,
highways, and bridges in the State of Alabama. To this end, and for
this purpose, the State is authorized to appropriate funds; and also
I   to issue and sell interest-bearing negotiable State bonds, in an amount
not to exceed the sum of twenty-five million dollars ($25,000,000.00)
to be issued in such denominations, numbers, and series, and maturing
at such time, as may be provided by law; but such bonds shall bear a
rate of interest not greater than six percentum per annum, payable
semi—annually, and shall be sold at a price not less than the par
value thereof. Provided, that no bonds shall be issued or sold under
this provision to such an amount that the interest thereon will ex-
ceed the net amount of vehicle license tax collected for the year
preceding the issuance of the same, and which is set apart for the
payment of interest on said bonds. . . l§/
l7. Amendment XII, Adopted 1922.
This section replaces the original section 95 which contained
no exceptions to the general prohibiticnary clause. It also
replaces an amendment to the original section ratified in 1908
and allowing the use of the net proceeds from the State convict
fund on the construction and repair of public roads. Amendment I,
Adopted l908.
Under this amendment the State may incur an indebtedness of
not exceeding $l0,000,0C0 for port development, notwithstanding
section 2l5 of the Consti