Untitled Texas Attorney General Opinion

April 11, 1939 House of Representatives 46th Legislature Austin, Texas Gentlemen: Opinion No. O-563 . ‘. Re: Constitutionalityof .."" : :' -.>SenateBill 75; Jhls~ is.ln reply to y&r request for an .... opinionas to'the cdhstitutibnalltyof 'SenateBill 75, which,request,yascovicated to this Department'. by-'letter'd@%d.Mardh 28,'.1939, from RonorabieR. Emmett Morse; S@3+cfz~ef.the .. ..- . House. The bodyef'Mr. Morse's letter reads as fol- lows: .~ : '1 am attaching hereto a copy of Senate BllI 75, tihichseeks to regulate pave1 Bureaus. It 3.8.my unaerstiinaiiig.. and thi2 understandIngof the.Xoiisethat .thtsbill has been passed twiae and ."' on both occasions.has.been ... .. declared u&onst'$tutlonal.' ;: "The House just v&ed for uieto ask you for an opinion asto.the ~csnst'itutlonality of the attached bill. I will appreciate. your attentio,ntothis mat- ter as.seen as,ls pesslble..~ . One of the aardinal and elementaryprinciples in' . the fleld.of eonstitutisnailaw is that the propri,ety;:'wis- dem;.and expediencyef leglslatlonare exc,luslvely-'matters Per legls.latlve determlnatlsn~. -Recegnlsingthis ijrl&lpJe, we IUUS~,therefore,assume that, should the .Legislatureen- act 'SenateBill 75~lnto.,law,‘such enactmentwill be a con--~ cluslve determinationby a preper'badyas to the.propriety, ~' w'isdom,and expediency of such legislation. Thus the sole question to be deterinlned by.thls opinion iswhether or-not such legislation,if enacted,, will violate any provision of the Texas or United States,:Constitutlon. .. To illust&ai% the difficult'j.es khich attend the pr6per~'~e'termination'..~f.,thls .question,we'quote froia~the opinion in Rx barte Martin, 74 i'3.W. (2~)1017,by'the'Court ,/ - - House of Representatives,April 11, 1939, Page 2 (O-563) of Criminal Appeals of Texas, where it is said: "It seems well settled that statutes may be unconstitutionalIn their operation as to some per- son and states of facts when not so as to others." Citing Singer Sewing Machine Co. v. Brickwell, 233 U. S. 304, 58 L. ed. 974, and other cases. It Is obvious that at this time we'are unable to predict with certaintythe persons, If any, who may In the future attack this proposed legislationas unconstitutional, nor can we acc'uratelyforetell the state of facts which such persons may present to the court-in which such attack. Is made. In the absenoe of such knowledge on our part, It follows that we'are necessarilyunable now to predict with certaintywhat holding-willbe made by the court, in the event of such an'attack. However, as the courts of last,. resort In Texas have heretofore In three instancesrender- ed dealsions--asto the aonstltutidnalityof previous acts of the Legislaturewhich sought to-reguIate'thesame type" of business as does Senate Bill 75, we.believea fairly accurate opinion can be rendered'bya comparisonof the prioracts with.SenateBill 75 in the light of the decided' cases. In Ej,p&e Martln;~74~S.'W;:'(2) 1017; by the "tliii Texas Court of~.Criii&nal,Appeals, act found in.Ch. 114;. Acts -1st'Called~ Session 43rd L@gisIatui?e(@rtienlsAnnota- ted Penal aode,:Art'iele827d) *aaSattacked'bya party who conducted'stravel'bureauand whose business it was to bring together persons owning or'operatingautomobileswith other persons who.dld not'have automobiles,butwho .desiredtoAmake expense sharing trips.with the owners of automobiles. charge of $1.00 was made by the operator'for the travel bureau for bringlng'suchparties together. Article 827d of the Penal Code forbade any person to engage inthe business of the travel bureau unless the persoh In charge of the motor vehicle to be used in ~thecontemplatedtrip had first obtain- ed a chauffeur'slicense, and further required that.saidve- hicle be equippedivithlicense plates and that the owner of the vehicle had aomplied with.all of the laws of.Texas in connectionwith the transportationof passengersfor hire sn'the public roads of Texas., Said Act further required that an examinationof the public records of Texasbe made~ by any one eentractlngwith the owner eto..of the,motor ve- hicle .fora share-expensetrip to ascertaln‘whether'such owner has properly csmplled with the~law as te chauffeur'slicense and regulatingthe'operationef m&or. vehicles for hire. The Court held the act'te be unconstitutionalbecause lt.violated Rouse of Representatives,April 11, 1939, Page 3 (C-563) the FourteenthAmendment of the United States Constitution, also Section 19, Article 1, Constitutionof Texas, which latter constitutionalprovision provides that: "No citizen of this State shall be deprived of life, liberty, property, privilegesor immuni- ties or In any manner disfranchisedexc.eptby the due course of the law of the land." In holding Artlcle.827dof the Penal Code uncon- stitutional,the court used this language: '* * *..a8far as we can tell from the.record before us, this:appellantwas-.engaged-in the,useful and lawful.occupation:of selling lnformation~to. private.cltizens,the..conduct of which businesswas neither in fact::orthreat.aninfringementortres- : pass upon the:health,.safety,;:oomfort,or welfare of. the publici :He.drove,no.oarson the public roads or bridges.asa business. He made no contractscon- ..trollingthezhare-.expense~trips..of.his~~ustomers. He sold informatlon.bymeans:of which the.purchaser.: thereof was related to.~theseller only 80 far as. ... pertainedto.the route..expeoted to be.taken by each : _. .. _.. or'.both;He gave..no"guaranty as to the-good or bad : characterof:,f;he:partlea:thus' putin.touoh4vlth each. ."-.:other,. or :as'-to...the:kind .or~quality.of:;t.heir,~vehlcles. ..'Sions-of said act.unreaeonable.-~Same~~forbidsthe.:.'. ..sale- of informationby appellant.; unless and.until..~. :. the operator,ofthe car.lntended,.to ,be'used-onthe .., share-expense.,trlp shall-haveobtalned~achauffeur's~. .or driver's license'inaccordance..,with existing laws... of Texas.'. The only law posslbly~applicable, known to this court, Is-article6687, Revised Civil Statutes, .1925,tihichrequires one whose business lsthe~.operatlon .of:acar for-hire to take out a license and .paythere- ';for;in token of which hereaelses a badge which he is required to wear when so engaged;-- It,would noterequire .. .~reasoningto,make plain the fact that the immediate.ef- ;.fect.ofattempted application.ofthis'state.would.be to .:put.appellant.out of businessi for the parties to whom :he sold.the Informationwere not hired drivers of pub- lic carsengaged in the business of~transportingpas- sengers for hire,.but were andare .prlvate..persons, .drlvingtheir own.carz;.arother private-cars,'88 far as this record shows, on their own private business, ~who for company's sake or econemy's sake wished to form House of Representatives,April 11, 1939, Page 4 (O-563) contacts with other persons by means of which the expenses ordinarily Incident to a motor car trip might be shared between them, a propositionwith which appellanthas no other connectionsave merely to bring the parties together. The fair effect of the requirementsof this statute would unquestlon- ably end the business of appeilant,and this is re- garded by us as unreasonable. The Court'concludedIts opinion with this lan- guage : "Being unable to discern any ground of in- terferencewith, danger to, or trespass upon, the public morals,,health,safety; comfort/or welfare of~.appellant8s business as shown to be conducted, and believlng the act subjectto the objeationsabove discussed,the audgment remanding this appellant~111 be reversed and.the appellant ordered dlsoharged. . ..' :.*: ;_ .‘-..:i:. >F~llo&g. the. dea~~~on ~i$f ‘&p&e’ &f&in the 44th'Legislat~e-at'I~sRegular Sess$on of 1935 enacged Chapter 325';Acts:'ef1935; which appears as.Vernon'sAnnotat- ed Statute, Article Qllc. The constltut%onalityof Article gllc was attacked 1n:the case of Rx paWe Talkington,104 S;W. (26) 495 (TexasXourt of Crlminal.Appeals)by 8 person who was in.a-sSmil~,s~t;uatlon.to..the appelXant:inRx .parte..&artin, Article~gllo.among other things required transportation' agents-to.seclil'e:lldemaes from the Railroad Commissionof Texas; made:.ltu&awful-forone to act as a transportation agent without first! having secured-sucha.license;.required the transportationagent to deliver to theLCommlssionand to maintain-inforce a bond in the'sum of.$l,OOO.OO,In such. form as the.Commissionmay prescribej.!'for the protection, use-and benefit of any person or persons who shall suffer loss .or damage by reason of the failure of any person or motor i carrier,~.threugh whom transportationmay~.bearranged or over which tickets may be sold'by the.applioant,~toproperly fulfill any contract er agreement for such transpertatlonwh,lchmax :.havebeen-partiallyer.whelly negotiated by the applicant. Artlcle~91U .-.further required the,owner of the motsr vehi'tile to file adequate bends ,orinsuran~e~pol.icles with the Railroad Commlsslon,: and durther requlred.bhetransportationagent te request of the owners of.the motor ,vehlclethat such~owners exhlbit~tothe'agenta certlfldatefrom the Railroad Coihls- sion certifyingthat auoh owner had~on file In the Railroad Commlsslon's:offioe.adequate~-~bonds.and insurance policies. ,> .' -y: .:.:1. .,. .'. .~ House of Representatives,~AprllII, 1939, Page 5 (O-563) In holding Article gllc unconstitutional,the court used the following language: "BearingIn mind what we'have above set out from the statementof facts showing the business of appellantto be confined to selling Information,and that he-does not sell or nego- tiate transportation,nor own noroperate any motor vehicle over any highway In this State or elsewhere,and does not dictate or suggest the terms or conditionsupon which the purchasers fromhlm.of Informationshall contract with each other, or whether they go by dirtrsad.or paved,, or what route they take, this law seems clearly in vlolatlon~of-the,.Fohrteehth..Amendment:to our Federal-Cehstitution;.and of Sectioti.lg'of our i. ,. .' own Bill of‘Rights,'in:thatit pr+l.bit~sthis man or any otherengaging:in~atlikeocoupat'ien, : because.of;:. upon the sameterms.and~conditlons.,:: . requirements:u.nreasonable,~~impossible of..perform- ante, wlthout;.fair. application,and,-prohibit,ive.,:~ and surroundshisattempt to engage.inthis buslness'with-conditlona.preoedent'and con- comitant such as..reveal-themselvesto a casual readerof:those partesor.of the statute which. '. we have above;quoted..as' be.lng;of.thekit&and..:. .:~ ., character.~wehave.:just?statedi!I! :Y. ~' The..Court.then:proceededjtb:hsl;l“that~'t~e-condl- tions~~f'~he~bond~~requ~ed.~by:Articl~.~llc.from~transps~ta- tlon agents were unreasonable,,arbltrary,.andunoonstltu- tional. The Courtsaid: % - . .~-.'We have seenno-clearer Caseyof abridg- ment of the.rightsand~.priviIeges of the citizens 'of this~stateand of:the'.Uni.tedStates, and~the :i Invasion-ofthe liberties of a citizen to engage In and'pursue a lawful business thanappears In ,thlsrecord. We calI.speciaIattention.tothe authoritiescited-in Ex~parte.Martln,supra, and the reasoning Indulged."9.: .' : .. In concluding its oplnlon'theCourt-discussed the.case of BoweliVA Hannah,.,167 Term:-451, 71 S.W..(2) 672, and with respedt~to.that:case,said: : 1~ ..~ "However,we find ourselve's unable to. " agree with our sistercourt.ln~someof Its. ~~~~aot%?luslons:.~~. We see no ,paritybetween'the House of Representatives,April 11, 1939, Page 6 (O-563) law applicableto the business of pawnbrokers,or dealers In secondhandautomobiles,er junk deal- ers, and the law here under discussion. Nor .&rewe quite able to fellow the argument that because men have picked up and carried hltch- hikers who have turned out to.~berobbers, this Surnishesany reason to regard as dangerous or to hold bad a law against a business.which merely brings parties together,who on their on responslbllity,and with no limitations upen their Investigationand.lnqulry,If de- sired, may eventuallyenter open-eyed into an agreementte.make.a trip together...- ~'Tvro~monthaafter the..deo&sionl.nRx parte'Talk-'- Tngton;~the'Supreme Court ef Texas in Martin et al v. Rail;.. road Commission;et.al, 106 S;:W. (2) 653, expressly follow- ed the opinion:oSthe eourt'of:Appeals.and held Article 911c to be unconst~tutSoaal,:notwit~Canding the ,faotthat the Sln~:if; fact made:by-thetrial~courtwere~extremelyfaver- able to:the':propenents :~ of~the.legislation.:.-- Our inqu&&ow turns to an.anal&s.oS the pro- visions of:Senate.Bill75 and.a 8omp;irlson of the provisions of Senate Bill 75 with.the provisionsiifArti&le 827d of"the Penal CodeYand'oS9110j-Veinon~s~Annotated Givil.gtatutes, In an effort te-determine.whether.:~.the ohangedprovialons of Senate Bill 75 sati& or Sail to satisfy the constitutional ob~ectlonsand defects that were urged against 'previouslegis- ~~atfon.iXmd.sustainedbythe courts of Texas';.:- Suoh analysis of Senate Bill .75,~in the light.oS the eases'quotedfrom at length in this eplnien, ciimpelsus te eenclude that Senate Bill 75, If enacted in Its present form and if attaoked-un- der a.setoS fact8 and.c~oumstaxices.slml.lar Ce those.-pre; sented In I& parte.Martin andthe.other cases cited~abeve, will be:striakendownby the:oourt-asunoonstitutlonal. : :~Thlsconohslen Is .reachednotwithstandingthe f$;ethat we.hearClly'agreewith the principle announced v:RAtes,.260 .S.;.W:190 (Teds-Court.of QrQnlnal Appeals 7 and cases there 'cited,, to..theefieot -that: %he authority of the State Government to"place restmlctionsupon the.exerclseof '.'~ lawful vocatron is too well:.settled Per con- troversy." Citing numerous oases.. Thenbasis for ouroonelus~on is ourbelief that the court will-hold~the~restrlctlonsand requirementsof Senate RI11 75, partloularlythese contained In Section 3 Heuse of Representatives,April 11, 1939, Page i' (C-563) and 6 thereof, to be unreasenableand, therefore,uncon- stltutienal. Se&ion 3 prohibitsthe selling or offering for sale by any perscn etc.; for a compensationof transperta- tion for passengersef any character. It further prohibits the making of any centract, agreement or arrangementto pro- vide, procure, Surnlsh:cararrange for any transportation, directly or indirectly,whether by the selling of.tlckets or ef lnfermatlon,orthe introductionof parties, where a conslderatlenis received or otherwise. It further prohibits any person etci .fromheldlng himself aut by advertisement,,or otherwise;.asone whe.performis .any.oSthe above prohibited aOtZ;.~Seotion34henprevides that the.pr@lbitlens eS.the Aot ShaLLextend Co-aIl persens~etc.~%nI~ss_-suoh.persen,. :~ Sirm; oerporatlen,er;assoolatlenholds.a.broker'slicense issued by.the.RaiIroad.Commisaien of Texas> -authorizing, such~W%nspertatlen!'; .the;$aot.then Surther prevides~ithatr~ "In the..executiin.~S-:any'cea~~aoti,agre.~lslent,:: ~-~~~~emegt:.f~:~~~l~~~p~vlde,~~~oure~~~~h:,~ ~r-.~~e-fer'~~rranspor~tien,.o~: passengers~fr~m. onei:lnoerpc-ratedoily,teanether; whether.directly or lndireotly,.andwhether.by the.sellingqr-givin,. ef information;:-sr;'cPtherwise,~lt shall be~unlawSuI ‘Ser.~such-per~~~n-rt~:employ:apyrperson,.S~~,~c~j?p~r-~ atidn;~azz;ae~~ci~~l~n~.o~~ating.a~.~t~~ vehicIe;or.~ veh~~lee~:nh~~~r;:~~oh:.is:net:Mielawf'u$..holder .&S.. an erreotive.'oertlSloat~jor'~c~nvenleno,e~ and:~ne&sK slty Issued by the Railread Wmulsslen ofTexas? .: , ~..;;.: ;',... .~.A( Section 3:sf:the.:Act.furbherp&i&s, th&., ,. ., ,. %&h&g herein o&t&&d .shali‘ in any.,j:,'~ ~~~r~;afSect,the.rightsQS private individuals-':. as a mere lncldentto travel whe are net.,oarriers,~: r0r hire..to.enter~ints-agreements~or.arrangements rer trans&%aticPn-en a share-expenseplan where : in suoh:negeti%tl+s srarrangements.the services ef a:.br&er,'asherein~~deflned;. :de:'net;lntervene . -tarare..nf&~wed.I!..~ I :'.: Seotion~6 provides-thatnp lioense~sha$lissue by ~the.Commlssion~:norshall a~ny,lioense~remalnIn pgroe, unless the broker shall have furnished a bsnd,er other securityap- -provedby.the .Commlssien,..ln such formand amount as .the..~., Cemmission~mayprescribeoendltlened .Serthe.pr,eteotlonsS the -general~ubll~:and~.whic.h will insure financia~Yresponsi- bllity for.ali:acts oSsaid~~broker~- for.,whloh su?h7.broker:..,: Rouse of Representatives,April 11, 1939, Page 8 (C-563) would be legally liable, "and further conditionedto recWre the supplyingof authorizedtransportationand authenic In- formation in accordancewith contracts,azreementsor arrange- ments therefor with authorizedcarriers, authenticatedcopies of which contractsshall be filed.wlththe Railroad Commls- slon.” The effect of Section 3, in our opinion, is to prohibit the holder of a properly issued broke,r'slicense 'from performingany act which directly or Indirectlyar- ranges for, procuresor provides transportationfor another ‘unlesssuch arrangementetc. for transportationIs made with a-person; firm or aerporatlonregularlyand lawfully engaged In the transportationof padsengersferhlre, as ,etidenaed I b;g.a.'c~tlfleate':ef:aonvenienae::and necessity Issuedfbythe. Railroad Commisslenef !Pexas..~:SeatIon-6exempts.prIvateIn- dIvlduals'-fromthe.prohlbitlons:sf-the Aatonly-when the Ber- vlces'of'a.broker'de.not Interveneor are-netused.~. -Thus Senate Bill 75makes it unlawful for any person;'whether holdIng'a~brekerts.lIcense,or net;4x+asslst In bringing persens‘tdget~~,-fer~$hit-p~pose:ert-making~share-.expense tsurs,:'a&such-.bIll::fWther makes..It~.unlawful~fer any prl- vat+Individual whe~desIres~:to.majse~ashare-expense.,teurto use the~'servIaes'of:abreker;::.If'the.languageused In Sea- tion 3.Is-net Intendedto have-the.meanIngwe have.asarlbed to It,%gG?n-'weareiat a loss 'te:understand.the:meanIngof such'lan&a&~and In suah'.event; we;T.sf-.necesslty;;.wonld .be - requiredtoheld~that Se&Ion 3 is.v~id;becauae;;ef:uncertain- ty, amblgulty and:v&ueness.' ~- The aendltlonef the bend required by Section 6 of theYbIll makes a llaensed broker liable fer the ful- fillment of any transpertatiencentract or arrangementeven though his aontracter arrangement~Es,independently made by a motor owner and a~traveler.and.'eventhough the%brskertakes no part In the~maklngef said 'aentracta&her than te.lntro- duce the-partles'whemake .suchaontract. It is'cur ep&n that the'ceurts.t&h &uck down as~unacPnstlCntIena18276 .sf.the:PenalCsde and Article 911a of Vernsn's Annotated Civil Statute wlll.reach the same conclusionwith respect te Senate Bill 75, If an at- 'tackIs ,made: thereon by perssns.whs are able.te.provethat the'conductof ~theirbusiness .Isfree:.fr9m.Bhe~evils,~irre- gularltles,and'abuses'.that are eutlined%n Sectlen 15 of' Senate Blll75. We express thls~-opinion.because we believe that the~affeet"er‘thd..previ~~;en-or Se&Lens 3.and'.6sfl Sex&e Bill 75 .will.be;he~d,byi~he;cc~w?tsts be subjectte the'. same constlbu%isnal-&jectIsns:-anddefects~thatwere : April 11, 1939, Page 9 (O-563) House ofsRepresentati.ves, condemned in Ex part& Martin and in Rx Parte Talkington, as revealed In the opinions of those cases which we have quoted at length. We are also of the opinion that Section 11 of the Act'ls subject to attack as being unconstitutional. Section 11 makes It a misdemeanorfor any person to violate or fall to comply with Senate Bill 75 or any rule, reRulation.order or decree of the Commission promulgated under the.terms of the Act. Punishmentfor violation is fixed by fine of not less.than.$$OO.OOand not more than $200.00, and+he.*lolatlons occurring'oneach day are de- clared to be.a sepaxiPte offewe....~e&.l~n 3 of the Act.. prevldea that.the Comm%sslo~:"shall~.prescrlb$ .suchFea- ssriable:miles-iand .regalatlsiis.as.~y:beifermd.neces$arg.". : 1Yowhere.In;iSeaate.B~~1,7~.fs previelenmade foly.thegiving of notlce:as*.to:.the~..ruJes and.regulatlsns.to.be:pr~mul-:~ gated by%he Commlsslen;:nor1s any.llmltatlon.:or~restrlc~~. tlon placed upon.~the+~autherity.:to.promulgaterules and Te-.. gulatlons'other~than-that::auch..rules~~shall.~be~reasopabl~~~', In our opinio~Sectlon~~Pr:lp.lt;s .&?esentform is yesid,;'b+, cause:.it~~elates~the~well~~settled:csnstltutlenal~requiye-t- ment:.that,beforei:the;laielatlon:of~ruJespromulgated.%bya: Commlsslon.or.:other:regulatery body.&. the.&vernment can be-made a penal~~oaffenaej.~~reasonable 'noticemust: be given of such rules and the act or emission atand+-:. ~~ ned must be definedwith reasenable certaintyby the~Legls- lature. Thls'prlnclple~~s~well expressed in M. K. & T. Ryi. Co. v. State, 100 Tex. '420,100 S.W. 766, by the Supreme Court.:bfTexas~:.and =Ex';parte Leslie, 223 s. w. 227 by the Texas Court of Criminal Appeals. In the case last cited, the court said: ~~~"A~dompleteii law, If penal in its effect, -must define the act or emisslen denounced as .' criminal with some degree of certainty. And if by the law one is, as In the present case, commanded ts de some affirmativeact, due process of law requires that he be given rea- sonable notice as.a predicate to hls..punish-~: ~,. meritf@r failure to comply wlth;.the~idemand&i_ In cenferrlngupon an instrumentof government, such as the live steak sanitary commlsslen, the power to make rules, the nonobservanceof which censtitutesa criminal offense, it is deemed necessary that the Legislaturedefine the power and place limitationsupon the au- thsrlty te premulgaterules, ts the end that they may not be laaking in the essential.ele- Rouse of Representatives,April 11, 1939, Page 10 (O-563) ments of a law denouncingan offense.! citing numerous cases. We, therefore,answer your inquiry as to the constitutionalityof Senate Bill 75 by stating that, In oup opinion,-such bill in its present form will be held by the court to be unconstitutional. ~.In conclusionwe will state that we have received a great deal of Informationand aSSistanCe from written briefs furnishedto Us by lawyers,notably Mr. T. S. Christopher,who have had previous experience in lltigatlon lnv&lvlngthe CQnstitUtionalityQf the 1933 and 1935 Acts, .whichare referred Co 3.nth5.s Qpinisn:,.~Inorder that there may'be'noconfnsienwith. raspeat tQ,.thesaope Qr this opinion, we will further state we believe it to be settled beyond the possibility .. Qr doubt that.the operationOr a.travel:bureau 1s.a bnalness which can prqperly.be.regnlated.by~the Legls- lature;':;if:the LeglsXaturedeems..regnlatiQn desirable. The.efrectt3rthis opinion is s$mply 80:state..that,. :.. : in:aur epMen;~~the~methQd and means;af*regulatlenpro-~ vlded'fer':lhSectlQns'3,6 and 11;:SenateBill'.75,-will.. be held ts be':Unreasenableand nncQnstltutisnalby.the courts whlah stiruakdtiwnthe previena leglslatl0nre- ferrefl.t0.~, 2. yQursi:*ery ..&y;~~:' ".~ ~~ " .Awam op m:: ..; By /s/Robert i3.Kepke -Rebert E. Kepke REKrBTrzt : Assistant APPROVED! /a/ Gerali .O.Ma&x ,..~, AT!lDRNEYNDJERA& OF~~TMBS