OFFICE OF THE A’ITORNEY GENERAL OF TEXAS
AUSTIN
0r Thea daportssnt en the abe
aa rdlowiat
at to hold retnl
*Those attwnuyo ore ot the oplnloa that ?&are
is itorlt to the argutoant that Texas laws ara unoen-
rtltutlonal In sxoluding tireiua oorporatloae Uofnd
businoao in Texas under propor petita fren~ hofd@t
555
Rosomblo B0rb Ford, Adulalntra6or, Page 2
lleenrea to as11 beer. A bthr 00 that 4ubj40t
ha. bmn rwddb3a t&la 0rfi00 tagether v&a 8
lo66or requ93tla 6ha6 6hr f&w he 0ubrJittod
60 pm sor a awl Eng, Per t&i& ptwpoor the lot-
tar aad brief acaawiw thla latter with rogwst
that the matter be oonridwob find ruled upon la
t&e l&ght OC t&a ~gumt0 (L~VMOO~.
*. l .l*
‘l’he lottw OS Us. 3. 3. ‘;ihltr nt the 1~ flra 0?
Clark,~4te a itogerr ot Dallas, Pozar, aocroapaaylng your
lzqolryis la part a8 foUm5t
“On the first of the prat 3aSway :?torea,
Inoor oroto~ cat Texas war disR0lr~d arid tm
op*ra ? loan OS their ohala rlroeery frm that 61s~
have bsen aoabtpokd ln 3mas by abe wreat QOU-
oom uOaf0nng %ms, tnoorpemte~, of MAwylana.
t;hortlp after tho t&r86 of 6hr year, i’aSb*lay
dmres, fnoorporatod, of !!oryland sgplisd for a
retail beer dealer* a lie ato,
We were adriwd 6&C pour dopnr6men6would
aoomwarl~y hate 60 r&use ttwe perinftrbcoauee
the applioantwe8 a oarpowtlea ormtlist2 oukide
US the ;Jtrf*Toxear *o ~lseswaa
of 6he oatter
with Nr, Pax6oa ad ho a rood 60 withhold a re-
MS61 of .tbe pomlt0 tint f 1 ct.rthor sdvl00 rron
tia*
*Ati 6hla tlu we would lib to r&z thet you
reqtiot aa Q inion frixu the Attorney Crwrrral on
the oonstitu t lmnall&y of that pmtilon of the Li-
quworContra1 A06 r~uklng ths applloan6, ii a
earparatlea, to be orgaclerd aad absrtared unda
the 16~s oi Toxwe Ye do aof belirro ClurtHz%
zmaztf apl~alonawar8 the oona6l6u6lonaLi6y
t
=* . . .a
hrtiale 667-5,Vornon’LAuuotatod hnai %4e pro-
*idea in part a8 tollomtt
WAnp parson dealring a llooarsr ar manufa0-
turer,Uistflbutor, or Mta.Xl dolor I’MWin
Xomrebla Bert FOrd, Admlaiatratior, Psgr )
moatloa or la tsmtlxu irilr a pe6itfcia with t&
Qounty JUQe of the county la ashlohthe appkloakt
doslror to ongam in StLahbualaem r#hioh pe61610a
ahall atak aa rollmmr
* . ..*
“(3) If 0 eerporatim, tha6 appllaea6 l8
organlxed tmd ahartar8d umior,an6 hns exajills8
with all amporation law8 oi tbls State a
bla ka MO& o wetion, 6&t the priaol
of bllelnOem 18=%I 6he seuntp wharo otloh
is so ht, and t&, pruldenb ormn or shall mkko
80 at 3 davlt that ha posrbrrmr all e"4 the qmllil~
oatlona provided tn paragraph (1) ebmo.
u..*.
*If a retail doalerr
a. l l l
“(6) Xt applloaat tos Re6aSlurte tloeaar iu
a oorpre6len, rppllaation ahsll rha that the
presi&mt or wager thoreot has bwn a roaStlent
of the ooua6y whetela 6hs liosnre is sOWht fer
prooedlng6hb date of the
oPf9.0~ of tho oorporatloa
otllor tanner that WOulQ
awoh 110eaao la hi8 Ella
I?af#,~
It is ooatended b attorneysSD? the forolgn oar-
poratior, that subseetloa (3 1 OS Rrtielr 667-5,Ownoat h.m
notatedPenal Cods, la urroanetitutlonal beoaw~ 16 dealsa
to the furs&n aorporatloa the ofuu11 protootioaof 6hr law
tier ths Pourtaeath ~Amondaont to the (1~~616utioaOf u\o
Uslt ed Set 000
Tbo attmaeys f~,rthe foreign00~. ration !We
eub.slttod an oxoollant brl@f 3uppOT6h% the r r gsa6eatlOa*
“ThO Texna Ll!@Or Oon6rOl hot ir intandod
a8 8~ exwr0iss aS tha polieo p0mrr OS the state
Z!!nor&lo 30~0 ibxd, naaLnlntr8tor, Pago 4
It la otatad in Tore@ Jurlajmdenoe,701. 5, p. 5038
“The golloe
puwer 1s broad and aotaprehenalvr~
md whloh agpar to be naaoonblo
rogulatloas anl
to promote tbn genen~ oomenloaoo 64 the publio
wslfkreare not wbjsot to otkok aa oondttiaarl
munbr Ko doubt SB oxerolsrof ths polioopewer
fa 0rUlnerUy uI &&piint of private rightrl ret
the rights of the indfvldual muat leld to the pub-
lia oafsty, he&th and da&oft, T0l p~~~eedon sad
e.njoymwt PP nll.rl,&ts am oub eot to mtloti FOBM)D-
able amditloas a8 say be tI~8.m~
d by the mverw
authorityof the oountxyoematlsl to the aafotg,
oat, wood antor and moral0 or tbr ummunl-
proporty righsr are subjeot to the axis--
poi-mrIn f#aM.onf aad regulatlona whioh
are within the polieo pamr mast be sublsltted ta
although thipy say be produetim OS’promrty 10tsn.~
Xi is well rosognlscsd thrt the pzoprlet)r of en
9xexoi5e o? th6 polloc, mm in mbjsot to udlolal review;
enit the hw ,will ha dao f wed to be lavali8 1I it is shmn
to oontxaveno the rlghtr of the lndlvidual~ (‘3Mwrl
K. 18T. !?y.Co. v, JnprorsePent
Matrlat, ;r97Be We 2061.
16 15 stat06 itk @miss Jkr1epruuenae, Yol* 9* p* 515t
“The pollee poaez oonpreasada laws Pegulat-
lag plaoor of public raoort, oocmonoarxlarn,
miss of t ood produets ths tzanataoturo UAXIsale
of lntorlaanta, opomttcn of alas, the profioiwoy
or pem0n0 3410otngag9,in eorteln eOOujwlmar*
Vol* 16‘
Q* 10271
aA 8tato &as t&a rf&t to alabsiry porsow
angagad in ths oals of iawxfoatlryl llq%oon, Them
is no oOaixion1.1bt to l we in the salr af suoh
liquoxs, but a& l $!le&. which, without de-
ni*l of equal pcotoa ien of the 1~8~ my br gtod
to 8one end wlthheld fmia othorrs, or, hav
pwtrd m bo rorelced. Aleo dnor t&o 9a option
or oh. hultpYlMt AmndJ!Ma*40 ulo rod*ral eon.
rbttotioa tho 01~1 poteotlon olauro doaa not
appl to fntodoatlw llquw lnpeatwl into a Itate.
In vt ew of them eo~lderatlons and tha rsaeonubl..
man oi nmny ola2tmltloatlone, r4gulntloai ~srtdain&
to intortoating liquors and the stie theriW have,
in thm a orlty of 08~~8 besa hold not invalid a8
donYin tie equal mtoo~loa of the lams but a few
rreuletioru have baen ha14 invalid on thin pound,*
Ye ham born uaabl8 to iind say oamb wham a atste
has rttsm od by leijislatlon
to forbid a foreign oarporatlon
iroar eel1 p"
ng artiolro of oaru5eme @Ioh the state pordtb
doumt~o oorporatlom to aall* Ordlnaril , the qurstlon
wu@lly 00-a ap whrro l & a h bar by lo J slatlvs rnaotnwrt
atbeaqkd to dlnorimlnatr la favor af a doeuatio oorporatloo
la tex rattera. fkmrer, there are other fnstmar8 where the
etak by lrglslatloa har attmpbl to requira 6 fort&n OOF
poxatlon to do oer%al!~ EhlngB not required of aosimtla oor-
poretlone howover, far the purpo?ls of thlr oplnfon we do
not dean ft nsoaasary to dlmusr ouuh owam~
3eetlon 504, Vof* 16, Corpus durl8 ,?soundwa deal8
that tb rtate doe8 Sot bsro ouoh right md it ie $samUy
held tlmt it lo a dmlal bf equal robaOtioa Of law0 k, dlS-
or-to in loglrlatloa between 0Prrermt oorporatlona sinply
bsoause oll~ is a domaiNe Oorpamt$on and the othar a SOrel6tI
It ~111 be noted, however, that tha above de-
ao bed rule oi law has been somewhat restrioted
Trtioe* ln &to appll-
oation t0 the atis 0r IntoxlontLng liquors.
Honorable Bert Ford, &nlnfstrator, Prrgo 6
oonetruing a prwislon 0P the %113aourl Llguor Control Aot
w&&h provided fn &feet that it web. tt.~lawful tar say pwmcm,
artnershl or oorporatloo rseldi0g viithdtlt thr, state
to sol'P alt, too9 f v8 or take ordora rer ‘*ho r,lla, of imtoxlctlt-
inr, 1iqWZr within th8 state rzoept by or thro&yh s &al lib
aeased nholasal~ liquor denlw Fho awe oomidsrid for tL
pwposr ot tho Aot as im ~-&~entof aaid nonresldeat perron
flm, iartnekrshlp or Oorpmcrtloa 0,s to haul or trenepet L
Ooxioatily liquor, or ouuoe to ba handled or tramported ino
torloatiw liquor, In amnor whataoover in or Into the
rtmte, for amlo, eta, “E’ T ie rrtatutr further prooldda that it
was unlawru1 for wlr ~&son in t&0 atate holding a lioemle
or prait to sell beer or alt liquor6 or holding. sag r&xl1
liquor dealer’8 llomae or p8nnib, to ptrahar;e any nwb boor,
malt llquar,or lntarloethg liquor trwa any pdrson other
than tho browar, mmfaoturer, or dfeOl.ll.er thsrutd, or regu-
laxly lioerwd wholsssloror dfstdbutor of bow, aanLt lSquor,
or other intoticst liqum in the @Rae of mlt liquor and
other loPorloatln& 91 quor brewed mnnufaoturod 61 dis&lsd
in tam rtatrl or, to pudasaa rra.4 any Sr0w4r, ~ttuumttimr,
or dlstiilur, say lntotioatlng liquor, canufaotuxed ootaidr
of the stcto lr o eptbrwh
t a wholesaler or distributor In
the et&e hobln& atnd oparatw under I lioenee or pesmlt
issued by tha SU&V~SO~ 0f liquor 00n&% ‘no statute at-
taobaa in this @am plaoad remtriotioas upon t&a dlrpoaitian
of iatori&aat~g~llquora atipped by nonresidents into Llismurl.
!Chey~aoulJ oalp bo sold in a oertain mtm~r and to oertaia
dcmlof'b. They uould. not be aold and dblivwed dirsotly to
retail llpwr dealtw4~
*he rqual proteotion alawe d-9 &at i~OVOI&
the stat@ tron craking olaeaiZloatlon5 Of p3r50ne
la the cmat?thnt of lwe Udder the polfoe ~OWP,
but arm!ite wide rllaorstloa ia that ruglard and
avo$ 81I what la don6 only v&m it ia without @5$
reanorrsW.o basis, an8, uraly arbltrarp. F;YMIin
the aboenus of prrooP, f f any QbLt4 of I’aots 33811
reseonablf br oonaslvsd that would suntaln the
olnsaiiiaation, bho sxiatanoo 0r tbut startA of
fnota will b@ amwed. The burden tr on the PartJ
who assails the olaissifiont:on to 8hww thnt it is
arbitrary.*
‘This owb furtbm holda t&it the attttutm under
attack v;ere not uno~sn.~tltution:~.l end Void by r6)(103nof
fnfringfngaither tho oosmaro* olaure, or this equal protso-
t1on olauna, or the aonskltutL3a.
In Rippet ** Tama, 19) U. 3. 504, 2l# s. ct. 516
the oourt aald that a atate ;uy prohAbIt 1-
the mlls of intox
asting liquor abwlutelp, or It nay prohibit it aotilttiomlly.
It is furtherstated In the abare zmtloned @a88 of
Comeral Sale8 and Liquor Co. va Becker eb 81,:
*The mla oelttantloa hero nado b7 pl.¶lntit?
lr, that b&g a rhol~ulr:d~ler, but a-mnrrAdent
of ULsaou~l,it 1s rorbiddcut by ~bhai,lqum Control
Aot of Mismwri to ml1 llqcar to retail liquor
doaleta~ nhlle rssidant wtnloaale dealam my do
ath There oannot, I thfnb;, be ~.rged as erletltg
any dlsorl&n*tloa la the rttatutss dttaoke a8
bstneen liquors ai rorolgn reaauhotuti~ and dt ;om
of dometlo manufaotur~) ror the agreed faots dls-
ulose that bothbeor and dlatill.6 sQlrits of for-
efgn mmuf8oburs e&n be sold and are being wld,
la XlxibnourI by lfamaad tef&i6 wholasalers,
wftheutlet or hlndrarm. 20, I think the wle
quusetlon in tha owe is, la tho flaal analysis,
~whsthor the at&ate OP !+?l~aourl tmr the right under
tbj polioa powor to requlr,cr by statute that l
wholesala dealer in intoxiwitl~ liquor mat be
B rcMdent of IIiBeourL Thly is qocoaded~ by plain-
tiff in ite brief to bo the rmls queatba UQ iOr
ja&pxmt, for it a&nits that ‘the sale bnela of
t&a CfsorkPinatioa ia rsstdent or ~.Onreald~nO(b~~
..*
*Plalritiff bottorua 1ts aooatiultfon af aieorlc*.
lnation on t&o al~e&eiu vlolatlon by the aoowoood
strwte of the aoniuQxoo olawo of tha Podera Con-
stJ,tu%ion snd OP that provi8ionof the htrtsenth
Awwulnmt nhioh forbid8 arg rtsts to pwa E statute
w$io&d~eg;ives =y peroon of the equal wotwatlon
. l l l”
Iti3 mrtatsd in tho once of Wgn 0. !Widges, I.6
Ped. xp. 690:
*If a statute purportfzqto hare bean waatsa
to proteot the pub120 health, the pub110 mm&a, or
Iionornbla Eort ?5rd, Qa.hlatntor, :%~a 19
the publie wmty, ba6 no zeal or eubatanthl rw
latfon to those obJeota or lo a gmlpbla inresion
of the rIdIts sedured by the fundacmtal law, It
umn0t otati the test ot 5wleututlonality.
T;:b do not hold that d atnttb &ht not gasa
laws whloh would ooim wlthta tha aondemmatlcm of
the oauTts, soah r5r lwtmftoa as those WhlOh have
no relatiou to the pub110 wwslrara, hsslth, or
morals. A purr ta%fng aat OQ interstate ahlpmmtr
to promote Ianbrratate industrlm would &in*8 no
l~~l~~h!~e eowwtfOn with the poll@* po;rer of
9ut so 10% aa reaeonable, baring mw
httfon to’tho properexaralsb of the poll043 ~\owers
af a &state, oven tllou$h thb state mar obtnln Inal-
dsntal.ly 8orzo rwbnw thsmfmm, they fall tautrldm
thr ~urvios of the iro~o~or C1awer Thio we oon-
oelve to bo the true 1150 of dwarkation botwsen
tha powera rsaoneJ to the state to regulate t&
trafrlo in intorioants, reoognic*d by Cong$xeolr In
rhe pasw%a of tha ,?abb-Kenyon hot and e.ubse~uentlf
writtad Vito the Twenty-Plrat bdmmt,*
Zhat wa8 said in the above msntlonsd 6a#e with
referenoa to tha Coatnor Qlaoer, la our ogia%oa 0911ba
aal& with roiorrlrao b tbh rourts#bth Aaend.~nIC&o the U&n-
atltutloa or alo uaftea Stbt(lls*
fWt to fllatify thr oourto in holdlag that
a given sot is en unwartentad invasion oi the ltund-
mental riphta of the oi81iranb and tharefoxv bo-
y0nd t&3 pOliOi ~OWB~ Or th6 Skrtf#, that ObjeOuOO
nut appear inrn the raoe or tha eat itaoli ar
rroa paota or WtlahfOh
the aourte mwdt tgire Ju~olril.
00~~niianber*
730 32~4.*3~ cow 0r the imt6 Or m~a5 in tha 0~~6
of EO Crazias v, 3tag&ens, 105 s. ::. 992, hold in erfjf;Xethnt
the rexwlatian or the l%fuor tl!afffo i* wit&h the
Qorier or the stutfh That drtlols b, ::eation 2, of E d united
Statar Constitution provi8irg that 0ltIaorM of WkohState
abnll bs mtitlad to all of the privileges und hiwmltfaa of
ITononible Bert .“ora, AdnlnlstYator, mge 9
oltisenr of the sev@ral rtaterr, and Arbiala lb, Zootioa 1,
of the Federal Constitution provid that no state shall
deap any parson w,ithin lttr jorlsdlot 9 on the squfsl proteatlon
of tho ltns, ware nti cieaimeir to i.ntarfero rrith the ratstots
oxerofse at lte goLlae power. Thoee gro~i~io:rs of the Con-
atlktion are violstea by snr aot, ecrve irr thhs exerolas of
the state’s polioe pmer, that inposeo u burdea upon a non-
relrident of tho lrtato, whleh is not iL'@Ojctdupon tha real-
aonts of the ettte, and the otete oannot under the gu.ls;zr
its police power, sake M unreasonable dfeorfdnatiou.
requlrer~~~t of the Liquar Contxvl Aot in oriatsnoe at that
t&e (April 10, 1907) regulating the 11414 of intoxiaati Ii-
quors providing that an appl.losnt for a r&ail liquor 7 1 oonm
maat La 6 oitiaon o? ths stats and o maidant of t&s oowt
when the lioonss ia sa t 1s not a mre ~uiaa ta evade t l 0
prorisfons of the Const?? t&on Ihrtirlo 4, zootion 2, and Art-
1010 lb, creation 1) prohlbltin~ dlaarjainvtlon by a state
ar,alnot nonraei&mts but Pt la oaloalatml to aid Ln rogulrt-
ing the ltquor traiila, by rmdortnf! the Llaenaee subjaat to
px~oe$b whare mit is brou$ht on hln bond dad by faoflltating
tho detar&istion of his othar qualiSloat~ons to oraralsa tha
llaanm#.
ni 10 atataa ia Texas turiagrudenee, Vol. 9, pb 4661
*Otm of the most delioate dutior to be par-
forned by the judialal brmoh of the .gavsrmant
Is that 0s ae.olt3rin.sCLOaat of tke lagielativa
departrant to be uiwonetitUtion4l 4nd fmulld.
The pir#or 02 the oouda in this Yesprtot is ONe
that All be oxsroiabd with graat owtlon, eb-
paoially where the matters in OontYO?OTSY Barbin
to goveraarsntal polioleo, t&o publio heath md
publlo utlitlea. . . .*
Thir a0part3mt held In M opinion wrlttsn by
Eoaareb’ia Leon L?QROOAaaistaM Attoaaey G~nerti adfireseod
to Honorable C. R. 4lil: 1.2 Admlniotmtor, Terns f&uor Gon-
trol i3oard, Aujymt 26 1936, Volume 373, paaa 338, Lottar
Qplnlonn, that a fore & .p aorparatlon would not be authorized
t, obtnln a permit ta dirtrlbute boor rithin the State OS
Texaa. .:a have awefully considered t&o above mntioned
brler wbnitted by the ettormya for the foral&n oorporatian
4nd do not bal.isre the authorltles oitsd thareln aw appll-
oabla to the querrtlon under oomldsration,
f.!omrabla ihrt Pord, .Ualal~trator, PO&S $0
fn view of the iorafpiatj authorltfer It 113our opln-
ion th!lt the Stat0 in tho progoor exerolse of itr pollee pmfsr
onn 1o:nlly refws a foraigx oorpor~tlan llama0 to sell beer
end/or wine in this itate, Therefore, it is ortr further opin-
ion that the ahova mntiollad pwleion of Artiole 667-5, ‘Jer-
non.8 haotated Term1 Code la oanstitutfonal.