Untitled Texas Attorney General Opinion

The Attorney General of Texas JIM MATTOX Dwember 21, 1984 .qttorney General Supreme Court Building Rooorable Margaret Moore Opinion No. JN-259 P. 0. BOX 1234S Travis County Attomey Austin. TX. 78711. 234S P. 0. Box 1748 Re: Meaning of “registrant” for 5121475.2301 Austin, Texas 781167 purposes of section 36.10 of the Telex 9101874.1387 Telecopier 5121473.0233 Business and Commerce Code Dear Ms. Moore: 714 Jackson, Suite 700 Dallas, TX. 752024506 You inform us that different counties presently apply differing 2 141742.8944 requirements for t’w assumed name certificates which must be filed for unincorporated businesses and professions. The inconsistent require- 4824 Alberta Ave.. State 160 ments apparently stem from the ambiguity of the term “registrant” in El Paso. TX. 799052793 section 36.10(a)(Z) of the Texas Business and Commercial Code. SlY332-3484 According1.y. you zwk whether “registrant” refers to the business or professional entity which will operate under the assumed name or to x01 Texas, Suite 700 the partner(s) or beher beneficial owner(s) of the entity. “ouston. TX. 77002.3111 713l22MSS3 Section 36.10(a) first indicates which unincorporated businesses or professions must file assumed name certificates and then sets forth the information tb,at must appear on the certificates. Subsection 803 Broadway. Suite 312 Lubbock. TX. 7S401-3479 36.10(a) requires that: 003/747-5233 [a]ny pwson who regularly conducts business or renders -sessional services other than as a 4309 N. Tentn. Suite B corporation in this state under an assumed name shall fiih. . . a certificate McAllen. TX. 78501.1883 3121582.4347 setting forth: (1) the assumed name under which such business 200 Main Plaza. Suite 400 or profwsional service is or is to be conducted San Antonio. TX. 782052797 or rendered; 51212254191 (2) if the registrant is: An Equal OppOrtUnilYl Affirmative Action EmPlOW (A) an individual, his full name and restdeoce address; (B) a partnership, (i) the venture or Flartnership name, (ii) the venture or rlartnership office address, and (iii) the full name of each joint venturer or $;eneral partner and his residence address if he is an individual or its office address if not an Individual; p. 1152 Honorable Margaret Moore - PII~C 2 (m-259) (C) an estate, (I) the name of the eetate, ‘~~)thCstate’s office address, If any, and (iii) the full name of each representa t~lve of the estate and his residence address if he is an individual or its office address if not an Individual; (IO a real estate investment trust, (i) the name .of the trust, (ii) the address of the trust, (iii) the full name of each tmstee manager and his residence address i:! he is an individual and its office address if not an individual; or (E) a company other than a real estate investment trust, or a corporation. (i) the name of the company or corporation, (Ii) the s’tate, couniry; or other juris- diction uader the laws of which it was organized, incorporated. or associated, and (iii) its office address. . . . (Emphasis added). Before construing the! portion of subsection 36.10(a) which employs the term “registrant” and which governs the content of the certificate, a preliminary ,Jnderstanding of the scope of “any person” is necessary. This term colerols which unincorporated businesses and professions must file assumck name certificates. Section 36.02 contains the definitions generally applicable in chapter 36 of the code and defines “person” as follows: In this chapter, unless the context otherwise requires: . . . . (4) ‘Person’ includes an individual, partnersbip, company, or corporation. . . . (Emphasis added). Neither corporations nor estates fall within the definition of “any person” as employed i,n section 36.10(s). Because subsection 36.10(a) quoted above applies to the operation of businesses or professions “other than as a corporation” the context requires that “any person” in subsection 36.10(a) be read to exclude corporations. Corporations operating as s:rs:h under an assumed name are dealt with in section 36.11 of the code rather than in section 36.10. Similarly. estates are excluded fron the definition of “person” upon the rationale that representatl.ves administering an estate can be easily p. 1153 tlonorablc Margaret goore - I’rgc 3 (JM-259) , identified. See Cement of Eiar Committee, Bus. 6 Cm. Code 136.02. The express enumeration of a particular subject in a statute implies the exclusion of all others. Carp v. Texas State Board of Examiners of Optometq, 401 S.W.Zd 639, 642 (Tex. Civ. App. - Dallas 1966). fl, 612 S.W.Zd 307 (TsK. 1967). ThUl, neither corporations or estates ated file an assunled name certificate when they operate as such under assumed names. .Thc present confusion arose because the remainder of subsection 36.10(a) contains a refererlce to these two entities, which have been excluded from the category of unincorporated “persons” who must file an assumed name certificate. The provision includes a corporate “registrant ,‘I see 536.10(s) (2)(E), and an estate “registranc.‘i -See 536.10(a) (2) (C)y You suggest that the express inclusion of these references to corporations and estates Lndicstcs the legislative intent that the term “registrant” refers to each beneficial owner of a business or profession which operates undzn assumed name. Because you state that a “registrant” is on,! who must file a certificate, under your interpretation each benefi:lsl owner would have to file separately. We disagree with your conclusion that a “registrant” is one who must file. but we agree that “registrant” refers to the beneficial owners of the entity or “person” as used in section 36.10(a) which is required to file an assumed name certificate. You base your interpretation of “registrant” upon two related maxims of statutory construction: first, that a statute be construed so that its various parts ,s’re consistent and reasonable, Singleton v. Pennington, 568 S.W.2d 367 l:Tex. Civ. App. - Dallas 1977). aff’d. 606 S.W.2d 682 (Tex. 1980). and second, that any construction bcoided which would make a provision a useless appendage. Carson v. Hudson, 398 S.U.Zd 321, 323 (Tex. Civ. App. - Austin 1966. no writ). Following these principles, your brief indicates that “[IIf ‘regis- trant’ refers to the entity actually using the assumed name rather than to the beneficial owner[s]. two portions of section 36.10 become ‘useless appendages.” You refer to subsections 36.10(a) (2)(C) and 36.10(a)(2)(E). which dea,l with estate “registrants” and corporate “registrants,” respectivel:‘., However, an 1nterpret:‘r:ion of “registrant” which requires each of the beneficial owner(s) of an unincorporated entity operating under an assumed name to file a cer,::Lficate rather than requiring one filing by the entity or “person” would make section 36.10(a) internnlly incon- sistent. The subsection would begin by excluding corporations and estates from filing an as!;umed name certificate and end by requiring such entities to file a ct,rtificate. Corporations would have to file under both sections 36.10 ,snd 36.11. Consequently, we disagree with your construction of the :erm “registrant” in the context of section 36.10(a). Honorable Narpret Moore*- hp;o 4 (J+259) The Jmbi~ity of the tc:m "registrant" rcsultr from lquJting “any peroou" in $ubJeCtiOn 36.10(~) vith “regiStrant” in the JJUIJ Sub- Section. AJ indicJted, JecKloa 36.10(~) raquirsr any UninCOKpOrJted "person" or entity (including an IodividuJl, partnerrhip. or UoioCOr- porated CO~PJUY) who regulJrly cooductr buJinJJJ Or’renders profes- SiOnJl JarviCeS under JU JsJu1ssd ClJme CO file JO JSSuWd CIJIDC Certifi- c(lte. It do&J not require em unincorporated “registrant” to file a certificate. Although Attorney General Opinion W-263 (1980) referred to section 36.10(~)(2)(B) 4:s requiring the “registrant” to file an assumed name CertifiCJte, rhe 1Jtent ambiguity of the term WJS not then in ~JSUC. Thus, the opinion’s reference to “registrant” is not controlling. The definition of “registrant” prescribed by section 36.02 does provide a source of confuskn: ‘Registrant’ mf?ans any person thJt has filed, or on whose behalf there has been filed, Jn Ed name certificate under the Drovisions of this Chapter or of:her lav. (Empbasi s added). Nevertheless. nowhere does the statute require each “registrant” to file an assumed name cel:tlficate. Therefore, we conclude that “registrant” does refer to the various beneficial owners of the unincorporated business or profession operating under an assumed name but does not require each beneficial owner to file aF assumed name certificate. The statute merely requires that each of the “registrants” be included on the assumed name certificate. The context of “registrant” in section 36.10 contains a’n Implicit requirement that each category listed under subsection 36.10(a)(2) must be listed on the certificate if they are part of the entity operating under an assumed name. One entity or “person” for purposes of subsection 36.10(s) opernting under JU asked name may be comprised of several “rJgiStrJnt6;” See; e.g., Luloc Oil Co. v. CJldwell County, 601 S.bl.Zd 789. 794 (Tex. (Xv. App. - BeJuISOnt 1980, writ ref’d n.r.e.); Attorney General Opinion MW-263 (1980); see also Bus. 4 Comm. Code 136.15 (indexIn &stem distln- guishes betveen certificate or statement and the individuals filing it). Because the various “registrants” are part of the entity which must file an assumed name c~crtlficate. the provision need not expli- citly repeat that each coqonent of the entity, or each “registrant,” must be listed in the certl.f’icate. Although only the “person” or entity operating under an assumed name need file sn assumed nJme certificate, all of the beneficial owners falling within the list of various possible “registrants” must provide the information :,pecified in subsection 36.10(a)(2). For example, assume the entic), conducting business under an assumed name Aonorable hargaret Moore - Page 5 (JM-259) is a partnership (named C) with two partners, A and 8. Subsection 36.10(a) requires the filing of one certificate for C which contains ~11 of the beneficial ouners l=ed in subsection 36.10(a)(2) as “registrants.” Thus, A mwt provide the information required of A in subsection 36.10(a) (2). and B must also provide the information required of B by subsection 36.10(a)(2). You also cl& about the execution and acknowledgement requirements of section 36.10. Subsection 36.10(b) provides: A certificate filed under Subsection (a) of this section shall be executed and acknowledged by each individual whose name is required to be stated therein or by his representative or attorney in fact, and in the case of any person not an individual, the name of vhich is required to be stated theresin, the certificate shall be executed and ackwvledged under oath on behalf of such person by iTs representative or attorney in fact or by a j%nt venturer. general partner, trustee manager: officer, or anyone having comparable autho,c:Lty, as the case may be, of such person. Any c&!lficatc executed and acknowledged by an attorney l.n fact shall include J statement that such attorney in fact has been duly authorized In writing by his principals to execute and acknowledge the same, (Emphasis added). The language in sec!:!.on 36.10(b) is clear. The section dis- tinguishes “persons” who ;Ire individuals from “persons” who are not. In the partnership examplr above (of A and B as partners in C), any general partner or person with comparable authority of the registrant partnership may execute the certificate. It is not necessary for each partner of a registrant partnership to individually execute the certi- ficate. SUNMARY The term “auy person” rather than the term “registrant” in section 36.10(a) of the Texas Business and Coaxerce Code controls which unincor- porated businesc,es and professions operating under an assumed name must file an assumed name certi- ficate. SeCtim 36.10(a) requires JJCh unincor- porated entity l,perating under an assumed name to file one certi?icate which lists the beneficial owner(s) appear:.ng as “registrants” in subsections 36.10(a) (2) (A)-1:X). The certificate must contain the information about each “registrant” required by subsections Xi. IO(a) (2) (A)-(E). p. 1156 Honorable Margaret Moore - Page 6 (JM-259) Subsection 36.10(b) does not require esch partner of a reSistrant partnership to indivi- dually execute the assumed name certificate. 3,iLa Ver truly you . JIM MATTOX Attorney General of Texas TOMGREEN First AssistJnt Attorney General DAVID R. RICEARDS Executive AJSiStJnt Attorney, General RICK CILPIN Chairman, Opinion Cossaittee Prepared by Jennifer Riggs Assistant Attorney General APPROVED: OPINION CONMITTEE Rick Gilpin. Chairman Jon Bible Colin Carl Susan Garrison Tony Guillory Jim Moellinger Jennifer Riggs Nancy Sutton p. 1157