December 12, 1952

Hon. John C. White Commissioner ofAgriculture Texas Department of Agriculture Austin, Texas Opinion Ro. 

### v-1554.
Re: Applicability ofArticle 

### 5764,V.C.S., to Dry Land Farmers' Co-operativeSoDear Sir: cietg.

You have requested the opinion of this office as to whether the Drr Land Farmers' Co-ooeratlve Societymust pay the annual license fee imposedby Article 

### 5764,V.C.S.

Paragraph IV of the Charter of the Dry Land Farmers' Co-operative Society reads as follows:

"The purpose for which this farmers' cooperative society Is tobe formed is to engage in the harvesting,handling and utillza- -tt~~uf?%gr'buTtnral~-products pro~ducedor delivered to it by its members, and to hire, **employ** and contract for the hiring and employment of such laborersand harvestersas may be deemed necessary to carry out such purposes, and to execute such bonds and security as Is necessary for the hiring of such laborers,as authorized by Articles 

### 2514 to 2524, and Article 

### 2742-Aof the Revised Civil Statutes of Texas. Article 5742-A,V.C.S., reads as follows: "All the power and authority authorized or given in Article 5742 Is hereby conferred and given to Farmer's Co-operativeSocieties now organized, ormay be hereafter organized, under Chapter 

### 5 of Title 

### 46, of the Revised Civil Statutes of 1925, Including the power to organize, own stock in, manage and control a joint agency or corporationfor the accomplishment of the purpose for which they are Incorporated."Hon. John C. White, page 2 

### (V-1554)

Article 

### 5764provides: "Each association organizedhereunder shall pay to the Commissioneran annual license fee of ten dollarsbut shall be exempt from all franchise or license taxes. For filing articles of incorporation,an assoclatlon organized hereunder shall pay ten dollars, and for filing an amendment thereto, two dollars and fifty cents." The above quoted articles are carried in Chapter 

### 8, Title 93,V.C.S. which chapter is entitled "MarketingAssociations' and containsArticles 

### 5737- 5764,inclusive. The original Co-operativeMarketing Act was passed in 1921. Acts 37th Leg., R.S. 1921, ch. 22, p. 

### 45. Article 5742-A did not appear In the original act but was added in 1930. Acts 41st Leg., 4th C.S. 1930, ch. 12, p. 12.

Articles 2514-2524,V.C.S., comprise subdivision 

### 5 of Title 

### 46. Subdivision 5 Is entitled "Farmers' Co-operative Society" and was enacted in its present form in 1917. Acts 35th Leg., R.S. 1917, ch. 193, p. 432. The obviouspurpose of the above cited 1930 amendment to the Co-operativeMarketing Act was to allow Farmers' Co-operative Societies, organizedunder Articles 2514-2524, the same powers conferredby Article 5742 upon associations organized under Chapter 8, Title 93, V.C.S. Thereafter such societiesderived power and authority from both the Farmers' Co-operative SocietiesAct and the Co-operativeMarketing Act.

Article 5742-A provides that all the power authorized in Article 5742 is conferredupon Farmers' Cooperative Societies "organized"underArticles 2514- 2524,V.C.S. The purpose of Article 5742-Awas only to enlarge the corporatepowers of Farmers' Co-operative Societies and not to change theirmethod of organization. These societiesare still organized underArticles 2514-2524,V.C.S., but have the powers conferred in Article 5742. SinceArticle 5764 provides a license fee only for associations "organized*under Articles 5737-5764, this license fee is not applicable to co-operative societies organizedunder a different set of statutes.Hon. John C. White, page 

### 3 (V-1554)

SUMMARY The Dry Land Farmers' Co-operative Society was organized underArticles 2514-2524,V.C.S. It is thereforenot required to pay the annual license fee as provided for In Article 

### 5764, V.C.S., which imposes a fee only upon co-operative associations organizedunderArticles 

### 5737-5764,

V.C.S.
APPROVRD: Yours very truly, Mary K. Wall PRICE DARIRL Reviewing Assistant Attorney General Charles D. Mathews First Assistant 

# By:e

. Executive Assistant

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