OFFICE OF THE A’ITORNEY GENERAL OF TEXAS
AUSTIN
Eonorrblr t. 2. EaDonrld, Comnirrionor
D,jmrtnmnt of Agrloulture
Aurtin, Tomu
Dear Sir! Attantlon:
rty-fltth LO#Jl~-
. 8. Ro. 24 Inil
oltru8 aontmat8 a? purohare under hlr prevlou~
oitrw dealbr’r lleenm v&ioh llaarue nn now be
r8roke& or tomlnated ior any 8ause. or iia3 not
fully an8 tinalLy paid for 8ay w3 811 altror fruit
h8rrrrt.d under hfr aontraatr or ha8 not ially
00Ilt3~18d with all of the r.q tJ rul ?r0ririonr OS
the Cltrua Bonalng and Llsm8lntr, L8W, or that tho
I
‘8
Hon. J. 1. YoDonrld; AttMtfOu &ir. &. 2. Kaconalok, page 2
applicant 'L rlnanolal StatemIt, given to the
~dS81OilOl 0r Agrlaultrue at the t1pV of Sak-
w a~liOatfOn for liOUU4. doer not 8ha but
little Or lruoiiiOibnt a88et8 to cillow8uoh ap-
plf8Mt to humeot business as a Oftma d&altar
witbou~plaol~~ in ~oopardythosotithwboahe
trenaaatr eitxu8 puroha88s?
$l+B8tfOZl 2; "DO08 thi8 leV~&ite th8
]IlO.
tid8iOlur or A&rioulturo tho authority to
hold Bea.riPg8 sad to stipend or rovok8 tho
Uauuse of a doalor who tiioht0a hl8 oontraot
to purehase end/or handlo oitru8 fruita dth
othrr Ooani8don merahents, dealers or brokor8
with laid aftru8 purahaa-
reatrith said 8Ooowl doeler
and haadlfag orgmIzatIc+nt
r*hore a 000 oretivo e88OOiatiOn, ahartered
under Chapter 0, 3 tired StatUt0e Of 1QW as
emended, Wloh psrtafns to marlmtlng eraoolatlonr,
has sntersd Into a wrlttsn Contraot dth a uom-
mi88ion merahent, dealor or broker. aIhor8by raid.
essoafatlon ‘daalm with or through a doalor, bro-
ksr or eoml88Qn merohant, or thel.? duly author-
;ti026atiathOpPrsha8~ and/or handl~oi
aftru8 frdtr, end 8ald #oal8r, broker or OOlldS-
llon merahant, OT tholr agant violate8 the terms
end oondftlons of e aontraot between tho ascroala-
tioa ad 8aid dealor, broker or co~!amlS8lon mar-
chant, 8813 aaid dealer, broker or am~l88Ion nmr-
cheat or their agent ban hla lioense or bu irrg
ont'8 ideatlfleatfon card revoked br tho &Xl-
3 8Sfo1ker Of 1oIdture ror rioletfon of ulo
CitX'U8 pU?OhS8 or hanal- eontraat?n
s8atloa 4 of tilafo lUb, Vernon*8 ¬ated
ciril Btatutw,~provide8 la parts
tar lioonse
*All appliaations UtLdsr thir
AOt aball bo aaoonganied
by a tendor of aymant
in full or the i80 for ruoh liaetnre rbq vsredi
on rooei t bf said application duly cnoouted, to-
gather WI th requlrad fee it shall be tho duty
oi the Cozdsrlonrr or hi8 went8 and/or em-
ploy008 thorounto ~duly authorized to bim0biatoly
b8UO 8mOh lio6M0, xl'Orid8a that M ~C8MO
8haU 188~8 ta any por8on 8tientho appllaatfon
Eon. Jl E. UoDonaldj Attention Mr. C. E. YoCoxnlok, page 5
for lloense tiled by such r&non 8hall indi-
oats that suoh "OT801l 18 5 ru8~ende4 lIoeneoe
wlthln tho :!tate O? Texas, Or that 8Uch @or-
Ball'5 mOn80 to do busiees8 In T5x5s hea
-evoked Until the COlrnI881Ontr 1mr-
nl8hed with eatle?eotorp ?coo? that the a.-DlIL
OSIlt 18, Oil the dato O? th8 illlEg OS 8uoh
~~lIoation, 0miri0a to reoeIvo the liOtn8t
8?plIod rort the lrsu~noe of lIoon8s to 3olnon8
who have 8Ufftrte prior 8U8D5Zl5iOIl OS r&VO55.-
tlon of llooneo in thle state shall be dlsom-
tiOMry with the t!Om18SiOner; in th8 lXOrOI8t
Of 8uoh di8OrttiOn, t\O COZC&siOner 18 euthor-
ized to take lnto conbidoration the faots and
olroumetenoo8 ?ortaInIng to th8 prior 8U8penslon
end/or reYUcttIon; the rlnanolsl oonCitlon ot
the a3~llaant. ae of the date of thie a~plloetlon,
W-d the obligation8 due tnb OWtilngby th8 e,?pU-
Oant to grower8 an@ -‘rOdUOOr5 Of OitI%8 btit8
and/or porlehable agrloultunl' OOrnnOditiO8;
*oblIgatIon,~ a8 the toI% 18 Mad in thir 850'
tloa, rhell be oon8trued to moan any judgment
Of tUiy Court wlthln thi8 State Outstanding
against tho o?plIaent or 00rtitita olelme ee
or the date or the eppl1oe~lon under consldere-
tlon by the Commiesloner; prior to rofural of
lIoen8e by tho ComI8sIoner. any ep:lloant for,
11ooneo 8hell bo mititl8d ta 02on he&ring oa
the f8Ot8 pOrt&ning t0 auah aa lIOatiOn, said
hearing to be aonbuated by the E ocmIeeIoner, or
his agont t!ereunto duly eut!~orlzed; if, attar
euoh hearIng,,tho CO8Id85iOMr, in the orerolee
o? his dIeOrttIOn, retu858 the lioeneo a pl!od
ior, tho ap?lioant 8hel1, within ton (10P days
rros end artor the donlal of euoh 11OeIi80 by
the Comlislonor and not theroarter, tile hlr
lppeaalrrom the ardor o: the Com~Ireloner tlony-
lng euoh llognse, in any ,Courtof ooznpotent
jurIs&lotIon wlthln this state; if the ComIe-
atoner 8hall detemine that the lloenee lp~lled
for shall not be granted, the Coanleeioner
ehell deduct iros the licen~o tee tendered with
such ap?llaatlon the cum a? Fire Dollar8 ($5).
raid PIvct Dollar8 ($5) to be retained by the
Com?lis8loner to dofray oosts and ox;onee8 ln-
aldent to the illlng and exemlnatlon o? 8elC
a?plIcetIOIi end 8ha11 roturn tho belenoe of tho
1Ioon8e fee 80 tendered with 8uoh applloatlon
to the ap-~lIoant.a (Undenloorlne ours).
Hon. J. F.. XoDonald~ AttuAIOB Ur. C. ‘L. KoConaIok, pego 4
Station 6 read8 58 rOiiOW81
*Any lloerure irsued under the Qr0vi8iO~8 Of
thlr aot 8hall remain in full for00 and effoot
ror a porlod or twolro (12) month8 from and after
th8 date O? i8aUtlLlO8tk8r8Oi WI1088 8dd ~OTIBit
8h811 be oanoolled la the manner horelnaftrr pro-
tlda l dd puraumt to the prooeodlng8 hrrdmftar
required, to wit1 eDy person 8&?riorrd, Injured
or damago& by rlrtue of eay rioletloa OS the tenns
and 9ror1810~ of this Aot by any lIoensoe or by
tho transportln~ or buying agent or any lloexumo
herauader, may ~SllO with the CO8U5i88IOnOT or hI8
Culy aut?orlzed egont or eclplogoe a vorlfled oom-
plaint, setting out the 8;eOIiiO rlolatlon am-
plalnod or; the ComleeIonor, oa reoolpt or seId
rorIfIe4 00~ laint, shell 8ot 5 dato Bot 3101'8
than ton (105 day8 fnm the reooi?tof rush oom-
plblnt ior the hdarlng thoreot; Cosxlsrlor,or 8hal1,
b:.- roglstered ~aIl,to the le8t known addroes,
notify the person oospleinod oi end shell furnirrh
euoh person with a oopp of 8uoh conplaint; the
Coani88ionor nay, at his diearetion, raoose tho
hasring prorldod ror in thir Ssotlon froa day to
d8y if in~his di8OrotioB the end8 Of juetioe de-
mand 8UOh 0ont:nuanoot for thopurpO85 0r raid
heerIag8 the ComIselon8r shall hare the authority
to 8umon wItnee8ea~ to laqalro into rietterr 0r
iaoti to administer oeth8, and to issue the sub-
poona ffuaes temn, ror thepurpo8e 0r obtelning
any books, reoords, !aetr\uentr of writing,rnd
other paper8 pertAaoat to the iBT88tiqetfOB 8t
hand; upon the oOnClUelOa OS 85Id huTiBg end the
Introduotlon of all evldenoe by the rerpoetlro
perties thereto, the ComIssionor lhell make hlr
deai8loa on the basis of the lrldonoo introduaed
thoroln, end ehall, it tho etidenoe wafrantr, 18~
hi8 or&or o8Boelling the lioenso at tho ?ereoa born-
plalnod of; any lIaeneoe, who80 lIoea8e 18 50 aan-
oolled by an ardor Or the Comalmloner, 8hel.l bo
notIfIod In writing by r’egi8terOd ml1 of the oea-
oollatioa of said lIaeneo end it rh~ll be unlawful
end a tlolatlon 0s this Aot for any ll~~neee or
buying or trenr:ortin~ agent to operato txm end
aftor 8eId notlfioatIoa oi oenoollatIon, provided
that amid lloonsee or buy- or trensportlng agent
who80 lioenae ha8 been 80 ohnoolled, 8h811 here
the right of e ptal from the or&or of tho Cofmfr-
Hon. J. It. MaDonald; Attention Xx.,.C. E. MoCormiok, page 5
rionor, oanoellng raid lIo4nae to any Court OS
competent jurIadIotIon within this state, pro-
vided that such a peal shall be filed in said
oourt within ten s10) days rrom and altar re-
oalpt by 1loenaeC ot notloe of aald oanoella-
tlon, and provided further that the effeot of
said appeal by said lbo4naee or lIoenaee*a
agent shall not aot to supersede the order of
oanoellatlon issued by the Coaunlaalon4r, pur-
suant to tlnal determInatIon ot the question
of oanoellatlon by said Court.R
geotlon 14 relates to the power and authority of
the Commisalciner ot Agrloultaro in edtorclng the Aotr
'For the purpose of enforolng the provl-
alond o,f this Aot, the Commlasloner Is hereby
vested with full power and authority and It
shall ba his duty, either upon his own lnltla-
tire or upon the reoelpt of a prooerly rrrltled
;;mggln;, to In~eatIgate all alleged violations
a ot and tor the purpose ot making such
lnveatlgation, he shall have, at all times, free
and unimpeded aooeaa to all books, reoorda,
buildings, yards, warehouses, atoraga, and trana-
portation and other taollitlea or plaoea ln whloh
any oltrua truit la kept, stored, handled, pro'-.
oeaaed or transported, and in furtheranoe .ot auoh
investigation either the Commiaaloner In person
or through his authorized r4preaentatlr4a, may
examine any portion of the ledger, books, aocounta,
memorandum, dooumenti, aoalea, measures, and other
matters, objeota or peraonr pertlnent to auoh,al-
leged violation under investigation. The Comla-
aloner shall take auoh aotlon and.hold auoh pub110
hearings as in--his ju&ent are shown to be neoea-
aary after auoh lnvestlgatlona, and shall take
the proper action with reierenoa to the oanoella-
tlon or Buapenslon ot the lloenae of any dealer
,hereunder shown to have been guilty oi a rlola-
tlon ot the terma ot this Aot. guoh hearings
shall be held in the nearest olty or town in the
county where rlolatlona are alleged to hare oo-
ourred. Any order made by the Commlasloner with
referspoe to the revooatlon or oaBoellatlon ot
eny.lIoenae granted under the provisions ot this
Aot, ahall.be eubjeot to revlevi by a Court ot
oompetent jurIadlotlon.W (Underaoorlng ours).
Non. J. ?I.XoDonald; Attentlon Ur. C. E. UoCornlok, page 6
Aooording to the iaota sot out in your IlrSt Cuss-
tlon, we are concorned with an applloant who 1s seeking to
r?naw his lioa~ae under Article 118b. Said applicant has
previously been granted a lloenae, but 1s guilty of one or
more ot the following ottenaea:
(1) Not tully end finally complying n%th ell OS
hIa citrus osntraota ot purohaae undar his previous oltrua
dea~ar*a license;
(2) Not rullg and finally paying tor any and all
citrus fruit haneated under hla contract.;
(3) Not tully complying with all OS the re;ulred
provisions ot the Cltrua Sondlng and Lloeoalrg Law; and
(4) &vine lnauttlclent assets to transact bual-
neaa ae a citrus dealer tithout placing la jeo,~ardy those
with whom he tranaaota citrus purcheaea.
It la not stated that the previous llcenss of said
ap3lloant m8 rovokea or auspondad.
Rhere a licensee la guilty ot tloletlng a provl-
aion ot the Act, Seotlon 6 provides the procedure wqeraby
hi8 lloenae Ia oencelled or a~apbnded.
Conatrufiq Seotlona 6 and 14 together, It la ap-
parent th?-t the Com~iaaIonsr may Imbstlgate Plolationa of
the Act and hold heerlnga thereon *either upon his OWD in-
ltlatire or upon the reoelpt ot a prosorly rorltled oom-
plaint .W Eo has the power and authority to Take the pro-
por eotlon with rererenoo to the oanoellatIon or suspension
ot the license ot any doa.lor horeundor shown to hsre been
guilty ot a violation of the tonne of this Act.”
It 1s ap;:arent that whora there haa been a vlola-
tlon ot the prorIalona ot the Act, tha Comzlaaloner of Agrl-
culture rho ld prooead against the offander as provided in
S4otIona 6 and 14. It on the basis et the evld4ncs before
him, the CotPmia6loner decide8 that the poraon compBlne6 oi
la guilty, then he ahall olther reroka or sw?sna said par-
son*8 lloanae.
Furthoraoro, I? the person whose lloenao has beon
revokod or auapended applloa Tar a aubaoquent lloenae, the
Boa. J. I. XoDonald~ Attantlon Mr. C. i3. XoCormlok, p8gr ?
prorlaIone or Sootion 4 would apply, In this lootIon it
la expressly rtated that8
%o lloen8e lh8ll lrsuo to uiy person whan tit.0
8ppllo8tion tor lIoe880 filed by such porron
rh8ll 1ndloSte th a t luSh p r a o n
Is a luapondo&
lloenroo within tha Stat0 oi Texas, or that
ruch porron*r lioenao to do buaIn8aa la Tom8
has b&an rewaked, until the ComnIaaIonor la
furniahod with l8tIatSotory j~ooi that th8
lppliomt i8, on the date ot tba flllng ot auoh
cppllo8tIon, pu8lIfISd to raooire tlm lIo4nao
rppii06 tot.*
lt la also porided that *the Iaauaaoe of lioonao
to persona who hare rutloroa prior auapeaaIon or rorooatlon
of lloenae In this Sta t0 lh8ll bo Qiaorotlolury with the
Caula810ner.w
On&r Sootlon 4 it appears that th9 Coawalaalonor
ot hgiioulture has So 8lternatlto but to iaeuo a lloenae
whare tb 4p~lIoStion ffsrn I8 properly made out m4 the foe
tendored udleaa tha 8ppliOMt hS8 previOuSlf had hi8 li-
oonae auapondod or r8vokoa. 08ly wtire the ap2lIorst I8
a1reSdy 8 SUSpOndOd lloonaoo or ha8 hod hi8 lISo88o roroked
door ‘the Codaaioaer h&te an7 dla~rotlon undortthe Aot to
issue or to return0to lrauo l iiOM8a. Tka languego of
3eotion 4 is olear aad unazblguoua on this point..
Under the terma 8nd provisions ot the Act ~8 one
or more ot the oondltlona described In t&o. flrat quoat I onJ
It supported by ovldenoo, muld Juatlty up08 propor hoar?ing
an.order 0r a a no o lla or
tloluap4nalon
n of 8 do8ler*S lloonao.
See lapoolklly Seotionr 4, br 9, 10, 14.
Ia 8nawar to your iirat queatlon, it la ooc opine
Ion that Artlole 118b. Yemon’r.Annot8tod Fit11 Sktute8,
the Tens Citrw Bonding and Lioenaiig Aot, rOQuiXW a hem-
ing by tha Codasloner OS h&rioulturo on olmrgor ot tlola-
tlon of the A8t in compliaaoe dth the poTiaioM of Sa83iOn
6, with rerooatlon o r luaponaI8a ef Lti~naro as tho penalty;
thst under the kraa’and provision ot Atilclr 118) lIoen8oo*8
f8llure to eoaply with tha oontmota OS purehaae, falluro to
pay tor fruit, inaolwmoy, and Other rIolatlona of t:;.oAOt are
grouda tor rsvooatlon or oanoellation of his 1100~0~ that
unaor sootlon 4 ot Art1010 118b the Com3Iaaionor lua no 8u-
thorlty or power to refwe t~r~l~~cWea8 .- tho
Bon. f, I. UoDoneld; Attontion Ls. C. 11.YoCormlok, Page 8
applioeut is l rumpended lioenaaa & hao had hla li~mao
revoked; end tbt an lpplloant whose lloanae baa been re-
+okad Or SwpM4led has the right to an open hearing on the
iecta pertaining to such application.
IDr o g a r to
d y o urleaontlqwatlon, we dab to
quote .Subdl~ialoa (b) ot Sotlon 4, wN& reada aa follower
‘AT1 ~oomIaal0u moroheut8*.8ud/or *Ggalors! ud
‘contraotdoa14rar,1 es tha tom8 lro Inthis hot a o -
tIned, shell, In addition to the lloenao tee herein
proaerlbod dollvor to tho C~aalonor, together with
their SppliQtiOn ta 1iam88, 8 gOOd and uttioleat
aurety bond peyable to the Oovarnor ot the State or
Texas and hia auooeaaora In o??Ioo, la the $rlnoIpal
ot llro
,a\110 Thousand Dollars ((S,ODO), said bond fo
bo In auab ?om as the OommIaalomr may preaorlba
and ehau be oOn~i%iOned UpOn taithful oomplianoe
*with the terms QI~ provisiona u? thlr Act au6 upon
the taIth?ul portormanoo o? the condIt!oaa and terms
Ot 8u coatrsota mada by 8814 ~comiasion mrahanta~
8nd/Or vdoalera’ and 9oontraOt doalora,’ pertaining
to tbs handling of oitnaa fruit under thl8 hoti
end oaoh Nob bond. shall ooatinut ln ?ull toroe aud ’
lftaet until aotloo ot the tormIuat1on thoroot la
given by rqlatered ml1 to the Coma!laaloner, wbloh
f8ot shall be set torth in ttm ia08 ot said bond,
but aueh notloa ebb11 not 8ttoct the lieblllty whloh
ray hare 8ocruid thoroon prior to tetplinetloa. A0
lloenre 8hall ba issued to any ~ooakIaalon rorohant’
or ‘doalor,’ or *oontraot dealer' prior to the do-
livery to the ComIaalomr 8nd. the approval by him
ot the bona roqulroa under the prorldona o? this
Sootloa. Ho ooop4ratIve l8aooIatl0n 0rganIzed pur-
suant .to Chapter 8, Title OS of tha Rerlao6 Cl~ll
3tatutea ot Toxaa, 1925, as 8mendod, tbet handlO
fruit only tor Lt.8 muobora ahall bo nqulred to
furnish bond as required In thla %&ion. hw auoh
cooperative l8fioolatlon doallag In citrus trult
uthor then tor Its produoor ambora ehall bo ropulr-
ed to fwalah boo6 es any other dealor. It la horo-
by dealare to be the polloy Oi the ~giSlatW* TV
m)te these lromptlona rdth reterenoo t0 oooper+ivo
8aaocb tlona booauae of the faOt tbt the r;rod*Oor-
aiombora pool their trult tar se10 reth9r -than la-
modlately aolling It.” (Undoraoorlng o-8)
,
Eon. J. s. Yorkmdd~ attention m. C. E. ~cCornlok, page 9
Tram the leaeeage above quoted it sppeare that
the terms MA rorl~lo~ of Artlola ll8b a ply to thu
-AMlsP in al! hlo ooatraetual relations hi pa whathu the
exlrt betwoaa him and a gPow@r or puroharer] or betwean hL
and other oomnlarloa muohant8, dealers or brokers) or be-
tween hLa and a ooopuativo uroolatloa. Tbfr cowlumulo~
I8 etlpported by the faot that *any person" rith whom a
‘dealer trumaots business la hrdlling, reUlng, and acoouat-
zaAfor sale6 of fruit raf maiatala an action oa said dealer.6
It is logloal to a&sum that the purpose or tha law
wee io protOCt d.l those Who deal with the dealer in the
3ie.nU and selling ot oltrue fruit. This wuld Include
other dsalors MA al.80 coopemtlre assoolat1on.s engaged 5.n
the bwi.~,seUins ~~5dbrrpblhg0r 0m-w rdt.
FU&hemrO, aftu con8IAerlngnztlcle ll8b a8 a
whole a&d Carefully a'alJzing such Seotlons a~ Q, 10, 15,
18 anA 17, it Is our oplnloa that It vim the intention of
the Luglalaturothat a brraoh of a oontraot to vhloh he ms
a part by a lloonsed dealer eumunted to a Yiolatlon of the
LiOUIEL and Bonding Aot itself. Ccmsmcwntly, rhure a
dralmr violfated a oontrsot late whloh he had entered rlth
another dealer or dth a ooopratiw aeaoolatloa, hi.8 license
would be subje+t to oanoollatloa or uuq~enalon under Section
A upon proper hearlag.
Jn 4&u to.your last quest~oa, 1 b our oplalclp
that undm Artio&i Il8b thu Ctiabionar of Agrloulturo ha8
the lut@wlty ts aubjeot to a hearing and to rovolm or bus-
pen4 the ~loetase or a dotalar who violato hln @oatnot to
puroha6a sad/or h4adls oitrus rruit -9th another dealur or
dmlua ’ or@bat10n.
?urthexMrs, lt I8 our option that the C+nlesloa-
u O? Agri0titU.m has the authori$~ to MYOk Or 6Wp5d UpOn
heering the lleun~ of a dealer who dlrbotlf or by ageat~
vIolate the Citrus purohaaln&anA/or hamUng OontraOt l.ato
wbloh salA.dealer baa titered with a oooperatlvs assdolatloa.
mtlng that wo hare fully aasvera&pru laqtirles,
m ~(ire
~,j@TORKU GENERAL
OF TEXX3