xt7nk9315h96 https://exploreuk.uky.edu/dips/xt7nk9315h96/data/mets.xml Arkansas United States Works Progress Administration 1937 Other contributors include: Robert C. Lowe (Robert Chapin) 1907- and David S. Lander under the supervision of A. Ross Eckler; 14 pages, 27 cm; This bulletin is one of a series presenting state constitutional provisions affecting public welfare; Includes bibliographical references; UK holds archival copy for ASERL Collaborative Federal Depository Program libraries; Call number Y 3. W 89/2:36/Ar 4k books English Washington D.C.: Works Progress Administration Contact the Special Collections Research Center for information regarding rights and use of this collection. Analysis of Constitutional Provisions Affecting Public Welfare in the State of Arkansas text Analysis of Constitutional Provisions Affecting Public Welfare in the State of Arkansas 1937 2015 true xt7nk9315h96 section xt7nk9315h96  "°`;·' IT w OIQK S P RCDG REiS S A OIII N IS TFQA T IO N
  I’IARRY   HOPKINS, ADMINISTRATOR
  CORRINGTON GILL, ASSISTANT ADMINISTRATOR
  , HOWARD B. MYERS, DIREOTOR
  DIVISION OF SOCIAL RESEAROH
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IQ; ANALYSIS OF CONSTITUTIONAL PROVISIONS
QL AFFEOTING PUBLIC WELFARE IN THE STATE OF
  • ARKANSAS
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PREPARED BY
ROBERT C. LOWE AND DAVID S. LANDER
LEGAL RESEARCH SECTION U
UNDER THE SUPERVISION OF
A. R0ss Ec¤LER, COORDINATOR OF SPECIAL INQUIRIES
Dnvnsnou OF SOCIAL RESEARCH
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• PREFACE
° This bulletin is one of a series presenting
State constitutional provisions affecting public wel- l
fare, prepared to supplement the State by State digests
of public welfare laws so as to provide in abstract
form the basis for the public welfare services of the
• several States.
The provisions quoted are those concerned
directly with public welfare administration and such
V others as may substantially affect a public welfare
` program, even though only indirectly related. It would
, be impossible to consider within the limits of this
study every remotely connected constitutional provi-
sion. The indirectly related provisions included,
. therefore, have been restricted to those concerning
finance, legislation, and the methods of constitutional
amendment.
•
An attempt has been made, by a careful selec-
tion of the most recent cases decided by the highest
courts of the States, to indicate wherever possible how
these provisions have been construed. These cases are
included in footnotes appended to the constitutional
•
provisions shown.
It is hoped that these abstracts will be
useful to those interested in public welfare questions
in indicating how State and local public welfare admin-
istration may be affected by constitutional powers and
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limitations. —
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• CONTENTS
Page
Incidence of Responsibility for Welfare Program .................. 1
• Financial Powers and Limitations ....... . ......................... 1
Taxation and Assessments .................................... 1
· EX€lIlpt.j.Ol'lS•••••.....•••••.••....••••.•...••.•.....•...••.·•. 4
Borrowing and Use of Credit ......................... . ....... 5
Ot,h€I‘ IflCOII\€.•••••...••••·•••.•··••..•.•...•.•.•.•»•••»·•••• 10
° Appropriations and Expenditures... ........... ... ............ 10
Provisions Affecting Legislation .................. . .............. 10
Constitutional Amendment or Revision ........... . ......... .. ...... 13
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Arkansas l
1.9
ANALYSIS OF CONSTITUTIONAL PROVISIONS AFFECTING
PUBLIC WELFARE IN ARKANSAS1
• I. Incidence of Responsibility for Welfare Program
A. It shall be the duty of the General Assembly to provide by
• lawfTu·the support ofinstitutions for the education of the deaf and dumb
and of the blind, and also for the treatment of the insane.2
II. Financial Powers and Limitations
A. Taxation and Assessments
• (1) State
(a) The General Assembly shall not have power tolevy
State taxes for any one year to exceed inthe aggregate one percent of the
assessed valuation of the property of the State for that year.5
(b) All property subject to taxation shall be taxed
’ according to its value, that value to be ascertained in such manner as the
General Assembly shall direct,making thesame equal anduniform throughout
· the State. No one species of property from which a tax may be collected
shall be taxed higher than another species of property of equal value,
provided the General Assembly shall have power from time to time to tax
, hawkers, peddlers, ferries, exhibitions and privileges in such manner as
may be deemed proper.4 * * * ~
1C0nst1tut1on (1874), w1th all amendments to March 1, 1957.
All citations and quotations are to the Constitution of the State of Arkansas
published by the Secretary of State (1935).
'It 1s a fundamental and universally recognized cannon of constructlon that the
° Constitution ofthls state Isnot a grant,but a limitation. ofpower, * * *. There-
fore a statute will be upheld unless It 1s clearly prohlblted by the Constitution,
and, where 1t1s doubtful whether an act comes w1th1n the Inhibition of the Constitu-
. _ tion, the doubt must be resolved Infavor of the constitutionality of the act.* Cobb
vs. Parnell, 185 Ark. 429, 38 S. W. (2d) $88 (1951).
zConst1tut1on, Art. XIX, Sec. 19.
3Const1tut1on, Art. XVI, Sec. 8.
’ The limitation of this section applies exclusively to a property tax; and there
ls nothing ln this sectlon which prevents the Legislature from selecting other sub-
jects of taxation and prescrlblng the amount or rate of tax that lt may see f1t to
levy thereon. Baker vs. Hill, 180 Ark. 587, 21 S. W. (2d) 867 (1929).
'Slnce the Constitution contains no restriction on the power of the Leglslatura
to levy taxes except as to property as such, the Legislature has full and complete
power In the levy of taxes forstate purposes as to other recognized subjects of tax-
• at1on.' Ibid.
4Const1tut1on, Art. XVI, Sec. 5.
The requirement of uniformity of this section applies only to property taxes,
and the latter part of the sectlon granting the right to tax ”hawkers, peddlers,
I 1
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2 Arkansas
II. Financial Powers and Limitat1ons—Continued
c
A. Taxation and Assessments—Continued
(1) State—Continued
(c) None of the rates for property, excise, privilege
or personal taxes, now levied shall be increased by the Genera] Assembly
except after the approval of the qualified electors voting thereon at an •
election, or in case of emergency, by the vote of three—fourths of the
5
members elected to each House of the General Assembly. ·
(d) No State tax shall be allowed, or appropriation
of money made, except to raise means for the payment of the just debts
of the State, for defraying the necessary expenses of government, to sus- _
tain common schools, to repel invasion and suppress insurrection, except
by a majority of two—thirds of both houses of the General Assembly.6 •
(e) No tax shall be levied except in pursuance of
law, and every law imposing a tax shall state distinctly the object of
the same; and no moneys arising from a tax levied for one purpose shall .
be used for any other purpose.7
(f`) The General Assembly shall provide by the general •
laws for the support of common schools by taxes, which shall never exceed
ferries, exhibitions and privlleges" does not by negative implication prevent. the ·
Legislature from providing for other forms of taxation. Stanley vs. Gates, 179 Ark.
886, 19 S. W. (2d) 1000 (1929).
An income tax was held not to be a property tax and so a net income tax statute
which provided for a progressive rate of taxation and for exemption of incomes below °
certain amounts did not violate this section. Stanley vs. Gates, 179 Ark. 886,19
S. W. (2d) 1000 (1929).
An inheritance tax statute providing for progressive rates was held valid and
not vlolative of this section, such a tax not being on property but on the privilege
of succession. State vs. Handlln, 100 Ark. 1*75, 159 S. W. 1112, (1911). Followed in
Gates vs. Bank of Commerce & Trust Company, 47 S. W. (2d) 806 (1951).
A tax on retail sales being an excise tax was held not to violate this section.
Wiseman vs. Phillips, 191 Ark. 65, 84 S. W. (241) 91 (1955). °
5Const1tut10n, Amendment 19, Sec. 2 (1954).
6Const1tut1on, Art. V, Sec. 51.
The word 'allowed" as used in this section means 'allowed" by law or permitted
by statute. Stanley vs. Gates, 179 Ark. 886, 19 S. W. (2d) 1000 (1929).
The portion of a tax appropriated to the State charities fund was conceded to be
appropriated to one of 'the necessary expenses of government,•' and so did not require
a two-thirds vote for its passage. Ibid. °
Money raised and expended for the promotion of public health was held to be for
a 'necessary expense of government" within the meaning of this section. Central
States Life Insurance Company vs. State, 80 S. W. (2d) 628 (1955).
A statute, taxing the privilege of operating pool tables and appropriating the
revenues therefrom to a fund for the indigent blind, was held not to require a two-
thirds vote of the Legislature. Thompson vs. Wiseman, 75 S. W. (2d) 595 (1954).
7Const1tut1on, Art XVI, Sec. 11. . •
A temporary diversion of money from one State fund to another was held not to
violate this section because this section was Intended to refer to the permanent di-
version of money from one fund to another. Cobb vs. Parnell, 185 Ark. 429, 56 S.W.
(2d) 588 (1951).
This section has no application to municipal ordinances. Shepperd vs. City of
Little Rock, 185 Ark. 244, 55 S. W. (2d) 561 (1951). ·
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Arkansas 3
• II. Financial Powers and Limitations——Continued
A. Taxation and Assessments-Continued
(1) State-—Continued
in any one year three mills on the dollar on the taxable property in the
• State, and by an annual per- capita tax of one dollar, to be assessed on
every male inhabitant of this State over the age of twenty-one years.8
• (g) Excepting monies raised or collected for educa-
tionalpurposes,highway purposes, topay Confederate pensions andthe just
debts of the State,the General Assembly is hereby prohibited from appro-
priatingorexpending morethanthesumof Two and One-Half Million Dollars
for all purposes,for any biennial period; providedthe limit herein fixed
• may be exceeded by the votes of three-fourths of the members elected to
each House of the General Assembly.9
(2) Counties
No county shall levy a tax to exceed one-half of one
per cent for all purposes,but may levy an additional one—half of one per
° cent topay indebtedness existing at the time of the ratification of this
Constitution.1O
· (3) Other Local Units
(a) The General Assembly shall provide, by general
· laws, forthe organization of cities (which may be classified) and incor-
porated towns,and restrict their power·oftaxation, assessment, borrowing
money and contracting debts, so as to prevent the abuse of such power.11
(b) No municipal corporation shall be authorized to
pass any laws contraryto the general laws of the State; nor levy any tax
• on real or personal property to a greater extent, in one year, than five
millson the dollarof the assessed value of the same. Provided, that, to
pay indebtedness existingax theti m of the adoption ofthis Constitution,
an additional tax ofnotvnore than five mills onthe dollar may be levied.12
• 8Const1tut1on, Amendment 11 (1926), amending Art. XIV, Sec. 3.
9Const1tut1on, Amendment 19, Sec. 3 (1934), amending Art. V.
1OConst1tut1on, Art. XVI, Sec. 9.
Amendment 17 to the Const1tut1on,adopted1n 1928, authorizes any county to levy
an additional tax of not to exceed one—halI of one percent on the dollar of the val-
uation of the property therein, for the purpose of constructing or Improving any
county courthouse or county Jail, upon the approval of a majority of the voters of
• the county.
Amendment 3 to the Constitution, adopted in 1898, authorizes counties to levy a
tax not exceeding three mills on the dollar on all taxable property In the county.
to be used tor road purposes.
11Const1tut1on, Art. XII, Sec. 3.
· 12Const1tut1on, Art. XII, Sec. 4.
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4 Arkansas
II. Financial Powers and L1m1tatlons—C0nt1nued I
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A. Taxation and Assessments—Cont1nued
(3) Other Local Un1ts—Continued
(c) * * * Provided, that the General Assembly may,
by general law, authorize school districts to levy by a vote of the qual-
ified electors ofsuch districts a tax not to exceed eighteen mills on the •
dollar in any one year for the maintenance of schools, the erection and
equipment of school buildings and the retirement of existing indebtedness •
for bu1ld1ngs.13 * * *.
(d) Nothing ln this Constitution shall be so construed
as to prohibit the General Assembly from authorizing assessments on real
property for local lmprovements ln the towns andcltles, under such regu-
latlons as may be prescribed by law, to be based upon the consent of a •
majority in value of the property holders owning property adjoining the
locality to be affected; but such assessments shall be ad valorem and
uniform. 14
B. Exemptions
(1) * * * Provided further, that the following property ,
shall be exempt from taxation: Public property used exclusively for public
purposes; churches used as such; cemeteries used exclusively as such; 4
school buildings and apparatus; libraries and grounds used exclusively for ·
school purposes, and buildings and grounds and materials used exclusively
for public charity. 15 `
•
Under this section where a munlclpal ordinance conflicts with a State statute,
the statute will prevail. City of Morrllton vs. Comes, 75 Ark. 458. 8'7 S. W. 1024
(1905). —
It was held that a city was not authorized to levy a property tax ln excess of
the flve percent llmlt for the purpose of bulldlng a clty hospital. watklns vs.
Duke, 28 S. H. (2d) 248 (1935).
Amendment 13 to the Constltutlon, adopted in 1926, authorizes c1t1es of the •
first and second class to levy an additional tax of not to exceed flve mills on the
dollar of taxable property for the purpose of paying certain municipal bonds with
the additional proviso that for the purpose of improving or constructing water works
or light plants a second additional EBI up to flve percent may be levied. See page
9 par. (b).
' Under Amendment 18, adopted in 1928. cities of the first class may, 1f author-
ized by special vote, levy a special tax not exceeding five mills for the purpose of
securing the location of factorles. lndustrles, etc. •
13Const1tut1on, Amendment 11 (1926), amending Art. XIV, Sec. 3.
14Const1tut1on, Art. xxx, sec. zv.
15Const1tut1on, Art. XVI, Sec. 5.
The Legislature cannot exempt property from taxation unless lt comes within the
exceptions mentioned ln the Constitution. Tedford vs. Vaulx, 183 Ark. 240, 35 S. W.
(2d) 34.6 (1931). ,
Hhere a statute authorized cities to issue revenue bonds to pay for a water
works system. to be payable solely out of the revenues of the system, lt was held to
violate this sectlon insofar as lt attempted to exempt such bonds from taxation
while in the hands of any person or agency whose property was not otherwise exempt
from taxation, because such an exemption was not authorized by any of the exceptions
enumerated ln this section. Jernigan vs. Harris, 187 Ark. 705, 82 S. W. (2d) 5 (1955). ·
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Arkansas 5
• II. Financial Powers and Limitations-—Continued
B. Exemptions-—Continued
(2) All laws exempting property from taxation other than
as provided in this Constitution shall be void.16
(3) That all capital invested in a textile mill in this
• State for the manufacture of cotton and fiber goods in any manner shall
be andis hereby declared to be exempt.from taxation for a period of seven
years from the date of the location of said textile mill.17
• .
(4) The homesteadof`each and every resident of the state,
whether ornot such residentbe married or unmarried, male orfemale, shall
be wholly exempt from all state taxes * * * in all cases where such
homestead does not exceed the assessed valuation of One Thousand Dollars
• ($1,000.00). Where the assessed valuation of such homestead exceeds One
Thousand ($1,000.00)this exemption shall apply to the first One Thousand
Dollars ($1,000.00) of such valuation.
Within a maximum limit of Two Thousand Five Hundred
Dollars($2,500.00) and a minimumlimit ofOne ThousandDollars ($1,000.00),
the legislature is hereby authorized and empowered from time to time to
• fix the amount of the exemption hereby provided.18 * * *
C. Borrowing and Use of Credit
· (1) State
(a) * * * Except for the purpose of refunding the
existing outstanding indebtedness oi` the State and for assuming and
• —.............
Automobiles owned by a county and used for public purposes, while they are not
subject to a property tax under this section, were held to be subject to a State
license fee. Blackwood vs. Slbeck, 180 Ark. 815. 23 S. H. (2d) 259 (1930).
Llkewlse, gasollne used by c1t1es ln propelling their motor vehicles was held
subject to the State gasoline tax. C1ty of Fort Smlth vs. Watson, 187 Ark. 830. 62
S. w. (2d) 985 (1933).
• The language of this section •churches used as such· was held to mean that
church bulldlngs and the ground necessary to the proper use and occupancy of the
same were exempt. where a church owned two adjoinlnglots, the church building being
located on only one of them, the adjolnlng lot was held not exempt from taxation.
Pulaski County vs. First Baptist Church, 88 Ark. 205, 110 S. W. 1034 (1908).
The constitutional exemption from taxation ofschool buildings and grounds used
exclusively for school purposes was held to apply to private as well as to public
schools. Phllllps County vs. Sister Estelle, 42 Ark. 538 (1884).
• The language of the Const1tut1on"bu1ld1ngs and grounds and materials used ex-
cluslvelyfor publ1c char1ty* leaves no room for doubt that it was not the intention
to exemptany other property from taxation save such as 1s used exclusively for pub-
llc char1ty,and that the exemption cannot be extended to property leased or rented,
and from which revenue 1s derived, though the same be applied solely to support the
char1ty.' Property, the 1ncome from which was used entirely for the support of a
public charltable hospital, was held not exempt from taxatlon. Brodie vs.F1tzgerald,
57 Ark. 445, 22 S. w. 29 (1893).
• 16Const1tut1on, Art. XVI, Sec. 8.
The Legislature cannot exempt property from taxation unlesslt comes within the
exceptions mentioned 1n the Constltutlon. Tedford vs. Vaulx, 183 Ark. 240, 35 8. H.
(2d) 348 (1931).
17Const1tut1on, Amendment 12. Sec. 1 (1928).
· 18Const1tut1on, Amendment 23, Secs. 1 and 2 (1938).
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5 Arkansas
II. Financial Powers and Ldmltatlons-Continued •
C. Borrowing and Use of Credit-—Cont1nued
(1) State——Cont1nued
refunding valid outstanding road improvement district bonds,the State of
Arkansas shall issue no bonds or other evidence of indebtedness pledging
the faith and credit of the State or any of its revenues for any purpose •
whatsoever, except by and. with the consent of the majority of the qual-
lfied electors of the State voting on the question at a general election •
or at a special election called for that purpose.19 * * *
(b) * * * Neither the State nor any city, coun-
ty, town or other municipality in this State, shall ever lend its credit
for any purpose whatever; nor shall any county,c1ty,town or municipality
ever issue any 1nterest—bear1ng evidences of indebtedness, except such •
bonds as may be authorized by law to provide for and secure the payment
of the indebtedness existing at the time ofthe adoption of the Constitu-
t1on¢H’1874, and the State shall never issue any interest-bearing treas-
ury warrants or scr1p.2° * * *
19Const1tut1on, Amendment 20 (1954). •
Bonds, which were to be obllgatlons of the State Board of Education. and not
general obligations ofthe State, were held not to be State bonds w1th1n the meaning
of this section and so d1d not requlre Bhé approval of the electors. The court
stated that SIHCB the credit of the State was ln no weylpledged for these bonds ·
they d1d not come w1th1n the meanlng ofthls sectlon. Davis vs.Ph1pps, B5 S. w. (2d)
1020 (1955). ‘
A contract was entered into prior to the adoption of this section, between the
State and the Federal Government and provided for the issuance of State bonds, to •
be delivered to the Federal Government. At the time of the adoption of this section
the bonds had not been dellvered. It was held that the lssuance of the bonds was
unaffected by this section. Walton vs. Arkansas Construction Commission, 80 S. W.
(2A) 927 (1935).
2OC0nst1tut1on, Amendment 15 (1926). amending Art. XVI. Sec. 1.
In construing this section of the Constitution ¤th1s court has refused to take
a narrow v1ew' but has kept hxmlnd the evll whlch this section was lntended to rem-
edy wh1ch was the looting of the State treasury by the lendlng of the credit of the °
State to private enterprises, partlcularly rallroads. THEPBIOPG it has become rec-
ognized that the State, although prohiblted from lending 1ts credit 1n the further-
ance of private enterprises, may still use that credit forthe promotion of the com-
mon good. A statute, which authorized the lending of State funds to farmers and
stock raisers who were 1n dire need because of drought and depresslon was held not
to vlolate thls section, because this was lending the credit of the State for the
purpose of promoting the general welfare rather than to foster an individual enter- •
priee. Cobb vs. Parnell. 185 Ark. 429, 56 S. W. (Bd) 588 (1931).
A statute authorlzlng the State to borrow money to cover deficiencies in the
general revenue fund was held not to vlolate this section. (1) The statute d1d DOE
violate the f1rst clause of the sect1on because it d1d not contemplate any loan of
the State's credit. (2) It d1d not violate the second clause of the section that no
'county. city. town or municipality ever lssue any 1nterest—bear1ng evidence of in-
debtedness' because the word 'mun1c1pal1ty' d1d not include the State so the State
was not subject to this restrlctlon. The court sa1d: 'The state, actlng through •
its Legislature, may borrow money forits own uses unless that right 1s denied to it
by the Constitution, and the only inhibition against the state there contained, in
this respect, 1s that 1t shall not lssue any 1nterest—bear1ng treasury warrants or
scr1p.' Hays vs. hcDan1el. 150 Ark. 52, 196 S. W. 954, 956 (1917). Followed ln:
Tapley vs. Futrell. 187 Ark. 844, 62 S. W. (2d) 52 (1955).
By an amendment adopted 1n 1954, borrowing by the State must be approved by a
majority vote of the electors. See page 5, par. (a).
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Arkansas 7
_• II. Financial Powers and ldmitatlons-—Cont1nued
C. Borrowing and Use of Credit-—Cont1nued
(1) State-Continued
• (c) Except as herein otherwise provided, the State
shall never assumeorother evidences of indebtedness inexcess of the revenue for such
city or town for the current fiscal year;norshall any mayor, city clerk
or recorder, or any other officer or officers, however designated, ofany
city of the first or second class or incorporated town sign or issue any
scrip, warrant