December 2, 1969

Honorable Tommy V. Smith Opinion No. M-526 Commissioner Bureau of Labor Statistics Re:Whether, pursuant toArticle 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 ... (theprovisions ofArticle 5221a-6, Vernon's Civil Statutes, as amended), can (theTexas Private Employment Agency Regulatory Board) ...issue an employment agency license to's Corporation?' “2. If a license can be issued to aCorporation, who would qualify for the Operator's License (provided for inArticle 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 theArticle 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 inbankruptcy,or receiverlU (Emphasis added.) Section l(e) of theArticLe defines "private employment agency" as follows:

"...anyperson, place or establishment within this state who for a fee orwithout a fee offers cr attempts, either directly or indirectly, to procure employment for employees or procures or 'attemptsto procure employees for employers . . . .O (Emphasis added.) Section i(h) of theArticle states that the term "operator" shall mean:

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. . athe 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 theArticle sets forth the procedure for applying for a private employment agency license as follows:

"Applications for license tomaintain and operate~aprivate 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'slicense are found in Section 5(a) of theArticle, which provides:

"Application for a license as an operator may be made by and shall be i,ssuedto any person who (1) is a citizen of theUnited States, (2)has been a resident of the State of Texas for qneyear next preceding

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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 theArticle 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 ofa corporation tobe licensed to engage in a profession or occupation is summarized in textual statement as follows:

"Whether, apar,tfrom charter limitations, if any, a corporation may be.licensed to act in a trade orbusiness, such as auctioneering, thebrokerage 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 inmind the licensing of individuals, notwithstanding which theyhave oftenbeen construed as extending to corporations, even in some instances where important provisions were completely inapplicable to corporations." 19Am.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 tovarious businesses, see 165A.L.R. 1098 (1946). Clearly, a corporation as such cannot qualify for an operator's license under thewording 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, andwho is a duly authorized officer or agent ofa corporation may apply, onbehalf of that corporation, for a private employment agency license, and that such license maybe granted to the corporation under those circumstances. As foryour second question, an individual meeting all of the requirements of Section S(a) of theArticle would qualify for an operator's license. SUMMARY

(1) The Texas Private Employment Agency Regulatory Board, pursuant to Section 4 ofArticle 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 onbehalf of a corporation has obtained an operator's license pursuant to the provisions of Section S(a) ofArticle 5221a-6, Vernon's Civil Statutes. (2) An individual meeting all the requirements of Section S(a) ofArticle 5221a-6, Vernon's Civil Statutes, is qualified for an operator's license. Very~itrulyyours,

General ofTexas Prepared byAustin 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 BillAllen Monroe Clayton 2. T. Fortescue A. J. Gallerano MEADE F. GRIFFIN Staff LegalAssistant NOLAWHITE FirstAssistant

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