Untitled Texas Attorney General Opinion

Hovember 30, 1965 Hr. Fred P. Bolub Opinion lfo. C-554 County Attorney Hatagorda County Re: Yhefher, under the sub- Bay City, Texas mitted facts, the Mational Hall, through its Board of Director5 can qualify under Article 667, Vernon’s Penal Code, 80 as to be entitled to secure a license to sell pear Hr. Holub: beer. In your request for an opinion of this office, you state the following facts: “In Hatagorda County, Texas, we have three mutual Insurance lodges in the Bless- ing, Texas, area, known as S.P.J.S.T., K.J.Z.T. and K.J.T. S.P.J.S.T. is a mutual Insurance company for men, women and cbll- dren; K.J.Z.T. is a mutual insurance company of women members of the Catholic religion and K.J.T. Is a mutual insurance company of men members of the Catholic religion. Each of these three companies has a lodge here in this County and all three lodge6 comprise of quite a large membership. "Because nane of these three lodges owned a meeting hall, they decided to buy one to- gether and call it The Mational Hall. They bought an old school house and about two or three acres of land near Blessing, Texas, and each of these three lodges holds their month- ly meetings in this hall. This has been going on f3ome 20 years. The operation of the hall ' itself ia done by a board of directors known aa The Hational Hall Board of Directors and it appears that each of the three above lodges sends or appoints annually two or three mem- bers to the Board of Directors so that each lodge haa equal representation on the opera- tion of the hall.” -2675- Honorable Fred P. Holub, Page 2 (O-554) You go on to state that The Datlonal Hall is in no way incorporated but desires to make applioation through its Board of Director8 for a beer license a8 an "organization." You ask whether OF not this "organisafion" can qualify a8 an applicant. Article 667, Section 5, Vernon's Penal Code, begins: "Any person may file an application for a license a8 a Manufacturer, Distributor or Retail Dealer of beer In vacation or in term- time with the County Judge of.the county in which the applicant desires to engage in such business. The County Judge shall refuse to approve the application for such license if he has reasonable grounds to believe and finds any of the following to be true: ,I . . .lr (Emphasis supplied) Article 667, Section l(h), Vernon's Penal Code pro- vides: "(h). The term 'person' shall mean and refer to any natural person or association of natural $ersona, trustee, re5 9 ver, partnership, corporation, or anization or the manager, agent, servan +--T-- or emp oyee of any of them." (Emphasis supplied) The word "organization" connote8 a rather broad, generic term and is not specifically defined in the Texas Liquor Con- trol Act. Webster's Third tiew International Dictionary define8 an "orkzanieatlon" as "a RTOUD of veople that has a more or les,s consta% membership, a b&y bf officers, a purpose, and usually a set of regulations* among others. Under the facts as set out, it would appear that The National Hall is an "organization" by almost any definition. Under Section 5 and Section l(h) of Article 667, supra, The Hational Hall would be technically qual- ified as an applicant for a beer license. It should further be noted that in the definition of persons contained In Section l(h) of Article 667 set out above that an "association of natural persons" Is a "person' who may file an application, and presumably the Board of Dlreototis of The Hational Hall would c$xalify under such definition. In addi- tion, It follows that a manager, agent, servant, or employee" of the Board of Director8 would be a "person" who could file an application a8 a retail dealer of beer, and that the Chairman of the Board would be such an "agent!' If so authorized by the Board. -2676- Honorable Fred P. Holub, Page 3 (C-554) In considering Article 667, Section 5, SubSectiOn 2, it should be observed that provision is made that .the county judge Shall refuse to approve an application if he finds any of the following to be true: n a). That the applicant 18 under twenty- one t21) years of age; or v(b). ?!bat the applicant 18 indebted to the State for any taxea, fees or penalties imposed by this Act or by any rule or regulation of the Board; or "(c). That the place or manner In which the applicant for a Retail Dealer's License may con- duct his businelsa is of such nature which baaed on the general welfare, health, peace, morals, and safety of the people, and on the public Benee of decency, warrants a refusal of the ll- cenae; or "(d). That the applicant $8 in the habit of using alcoholic beverage8 to excess, or la physically or mentally Incompetent; or I". T!hat the applicant Is not a citizen of the United States or has not been a citizen of Texas for a period of three (3) years &a- mediately preceding the flllng of hi8 applica- tion, provided, however, that this Paragraph (e) shall not apply to any person who has been issrted a license or a renewal thereof on OF be- fore September 1, 1948; or "(f). That the applicant ha8 been finally convicted of a felony during the two (2) years next preceding the filing of his application; or "(g). That the applicant is not of good moral obaracter, t&t his reputation for being a peaceable, law-abiding citizen in the com- munity where he resides'~is bad; or "(h). Itf a corporation, that the applicant la not incorporated under the laws of this State; or that at least fifty-one percent (51%) of the stock of such corporation Is not owned at all times by citizens who have resided with- in this State for a peT;z;.of three (3) years I . Honorable Fred P. Holubj Page 4 (C-554) and who posse88 the qualifications required of other applicants for liaenseca; provided, however, that this paragraph (h) shall not ever apply to any holder of a Dletrlbutor~s License in force and effect on January 1, 1953, OF amy renewal thereof; provided fur- ther that this paragraph shall not apply to applications for Beer Retailer'8 On-Premise Licenses for railway dining, buffet or "club COWS, WhiCh 1iOenScS may be iSSUed for a fee Of Five Dollar8 ($5) fQr each car, psJnaemt of which fee and application for which li- centse shall be made direct to the Board." Obviously, The Datlonal Hall as an "organization" would not be able to meet these personal qualifications a6 you Indicate that a part of the member&Lp Is comprised of Individuals who are under twenty-one (21) years of age. The Board of Directors of The llational Hall acting in their official capacity as Board of Director8 would not be able to qualify under the personal requirements as a "manager, agent, servant or employee" of the Blational Hall; Oui Per Alium Facit Per Selpaum Facere Videtur. (He who does a thi by an agent is considered a8 dolng it himself.) Co.Litt. 2% ; Broom, r&x. 817. However, the individual members of the Board of Di- rectors of the National Hall acting individually and not as the Board of DireCtOrB, but rather a8 an naasoCiation of nat- ural persons" could presumably qualify,under the requirements of Subsection 2, Section 5 of Article 667 which are enumerated above. In addition to the above requirements, the individual DirectOrB would have to prove to the eatiefactlon,of the County Judge that the lleense would not be used or displayed in the operation of the buslneas conducted for the benefit of any per- son not authorized by law to have an interest in said license. Or stated more simply, that the license would be used only for the benefit of the Individual members of the Board of Director8 and not for the benefit of The Hational Hall a8 a whole. We therefore hold that the Board of Directors of The Datlonal Hall acting individually could properly make appli- cation for a license au a retail dealer of beer as an "asso- elation of natural per8ons" and would be qualified to receive such license if the individual Directors met the requirements of Subsection 2, Section 5 of Article 667 which are enumerated above. We further hold that a "mamager, agent, servant or em- ployeen of the individual Directors could make an application and be qualified to receive a beer license should he meet the tests specified in Article 667, Section 5, 8ubsection 2. -2678- . . Honorable Fred P. Holub, Page 5 (C-554) SUMMARY The Board of Directors acting indi- vidually and not In their official capa- city a8 Board of Directors of an unin~ oorporated organization would be an “association of natural persons” witNn the term person as defined by Article 667, Vernon’s Penal Code, and as such, the individual DFrectors or a “manager, agent, semant, or employee” of the in- dividual Directors may qualify for a beer lic’ense, Yours very truly, WAOQOHEFi CARR Attorney General of Texas Assistant Attorney General DHC/dt APPROVED : OPmIOl8 comm W. V. Cfeppert, Chairman ‘Milton Richardson Qllbetit J. Pena Sam Kelley Thomas W. Hack APPROVED FOR TRR ATTORNEY QERERAL BY T. B. Wri&t -2679-