December 2, 1969 

Honorable Tommy V. Smith Opinion No. M-526 

Commissioner 

Bureau of Labor Statistics Re: Whether, pursuant to Article 

Capitol Station 5221a-6, Vernon's~ Civil Statutes, 

Austin, Texas 78711 as amended, the Texas Private Employment Agency Regulatory Board 

may issue a private emplcyment agency 

license to a corporation, and related question. 

Dear Mr. Smith: 

Your recent letter requesting the opinion of this office 

concerning the referenced matter states, in .part, as follows: 

"1 , Under . . . (the provisions of Article 

5221a-6, Vernon's Civil Statutes, as amended), 

can (the Texas Private Employment Agency Regulatory Board) . . . issue an employment agency 

license to's Corporation?' 

“2. If a license can be issued to a Corporation, who would qualify for the Operator's License (provided for in Article 

5221a-6, supra)?" 

Article 5221a-6, supra (hereinafter referred to as "the 

Article"), formerly known as the Private Employment Agency Law, 

was amended by House Bill Number 169 (Acts 61st Leg. R.S. 1969, 

ch. 871, p. 2625). 

Section l(a) of the Article defines "person" as follows: 

"The term "person' means an individual, 

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Honorable Tommy V. Smith, page 2 (M-526) 

partnership, association, corooration, 

legal representative, trustee in bankruptcy , or receiverl U (Emphasis added.) 

Section l(e) of the ArticLe defines "private employment 

agency" as follows: 

"...any person, place or establishment 

within this state who for a fee or without a fee offers cr attempts, either 

directly or indirectly, to procure employment for employees or procures or 

'attempts to procure employees for employers . . . .O (Emphasis added.) 

Section i(h) of the Article states that the term "operator" 

shall mean: 

9, . . a the individual or individuals 

who have the responsibility for the dayto-day management, supervision and conduct of a private employment agency; 

. . . N (Emphasis added.) 

Section 4 of the Article sets forth the procedure for 

applying for a private employment agency license as follows: 

"Applications for license to maintain 

and operate ~a private employment agency 

shall be made bv a licensed, operator and 

shall be accompanied by a fee of $150 

.II (Emphasis added.) 

The requirements for obtaining an opera~tor's license are 

found in Section 5(a) of the Article, which provides: 

"Application for a license as an operator 

may be made by and shall be i,ssued to any 

person who (1) is a citizen of the United 

States, (2) has been a resident of the 

State of Texas for qne year next preceding 

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Honorable Tommy V. Smith, page.3 (M-526) 

the filing of said application, (3) 

is of good moral character, (4) has 

never been convicted of an offense 

involving moral turpitude, and (5) 

successfully passes the examination 

prescribed herein." (Emphasis added.) 

A summary of the foregoing quoted provisions of the Article 

reveal that: (a) the definition of "person" includes corporations; 

(b) a "person" may not obtain a private employment agency license 

unless an operator's license has first been obtained; and (c) 

while an operator's license may be issued to a "person", that 

"person" must meet all of the requirements of Section 5(a), supra. 

The general rule as to the right of a corporation to be 

licensed to engage in a profession or occupation is summarized 

in textual statement as follows: 

"Whether, apar,t from charter limitations, 

if any, a corporation may be.licensed to 

act in a trade or business, such as 

auctioneering, the brokerage business, 

embalming, selling liquors, etc., is 

largely, or wholly, a matter of the terms 

and construction of the licensing statutes. 

Statutes are frequently so drawn as to indicate that the draftsman had principally 

in mind the licensing of individuals, notwithstanding which they have often been 

construed as extending to corporations, 

even in some instances where important 

provisions were completely inapplicable 

to corporations." 19 Am.Jur.2d 508-09, 

Corporations, Sec. 1052. 

For examples of cases where the statement in the last sentence of 

the preceding quoted paragraph has been applied by courts to various 

businesses, see 165 A.L.R. 1098 (1946). 

Clearly, a corporation as such cannot qualify for an operator's 

license under the wording of Section l(h), which limits the responsibility to the "individual". 

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Honorable Tommy V. Smith, page 4 (M-526) 

We are of the opinion, however, that an individual who 

possesses an operator's license obtained pursuant to the provisions of Section 5(a), supra, and who is a duly authorized 

officer or agent of a corporation may apply, on behalf of that 

corporation, for a private employment agency license, and that 

such license may be granted to the corporation under those 

circumstances. 

As for your second question, an individual meeting all of 

the requirements of Section S(a) of the Article would qualify for 

an operator's license. 

SUMMARY 

(1) The Texas Private Employment Agency 

Regulatory Board, pursuant to Section 4 

of Article 5221a-6, Vernon's Civil Statutes; 

as amended, may issue a private employment 

agency license to a corporation, providing 

the individual applying for said license 

on behalf of a corporation has obtained 

an operator's license pursuant to the 

provisions of Section S(a) of Article 

5221a-6, Vernon's Civil Statutes. 

(2) An individual meeting all the requirements of Section S(a) of Article 

5221a-6, Vernon's Civil Statutes, is 

qualified for an operator's license. 

Very~itruly yours, 

General of Texas 

Prepared by Austin C. Bray, Jr. 

Assistant Attorney General 

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Honorable Tommy V. Smith, page 5 (M-526) 

APPROVED: 

OPINION COMMITTEE 

Kerns Taylor, Chairman 

George Kelton, Vice-Chairman 

Bill Allen 

Monroe Clayton 

2. T. Fortescue 

A. J. Gallerano 

MEADE F. GRIFFIN 

Staff Legal Assistant 

NOLA WHITE 

First Assistant 

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