December 12, 1952 

Hon. John C. White 

Commissioner of Agriculture 

Texas Department of Agriculture 

Austin, Texas Opinion Ro. v-1554. 

Re: Applicability of Article 

5764, V.C.S., to Dry Land 

Farmers' Co-operative SoDear Sir: cietg. 

You have requested the opinion of this office 

as to whether the Drr Land Farmers' Co-ooeratlve Society must pay the annual license fee imposed by 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 to be formed is to engage in the harvesting, handling and utillza- 

-tt~~uf?%gr'buTtnral~-products pro~duced or delivered to it by its members, and to hire, 

employ and contract for the hiring and employment of such laborers and harvesters as 

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-A of 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-operative Societies 

now organized, or may 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 corporation for the 

accomplishment of the purpose for which they 

are Incorporated." 
Hon. John C. White, page 2 (V-1554) 

Article 5764 provides: 

"Each association organized hereunder shall 

pay to the Commissioner an annual license fee 

of ten dollars but 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 

"Marketing Associations' and contains Articles 5737- 

5764, inclusive. The original Co-operative Marketing 

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 obvious purpose of the above cited 1930 

amendment to the Co-operative Marketing Act was to allow Farmers' Co-operative Societies, organized under 

Articles 2514-2524, the same powers conferred by Article 5742 upon associations organized under Chapter 8, 

Title 93, V.C.S. Thereafter such societies derived 

power and authority from both the Farmers' Co-operative 

Societies Act and the Co-operative Marketing Act. 

Article 5742-A provides that all the power authorized in Article 5742 is conferred upon Farmers' Cooperative Societies "organized" under Articles 2514- 

2524, V.C.S. The purpose of Article 5742-A was only to 

enlarge the corporate powers of Farmers' Co-operative 

Societies and not to change their method of organization. These societies are still organized under Articles 2514-2524, V.C.S., but have the powers conferred 

in Article 5742. Since Article 5764 provides a license 

fee only for associations "organized* under Articles 

5737-5764, this license fee is not applicable to co-operative societies organized under a different set of 

statutes. 
Hon. John C. White, page 3 (V-1554) 

SUMMARY 

The Dry Land Farmers' Co-operative Society 

was organized under Articles 2514-2524, V.C.S. 

It is therefore not 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 organized under Articles 

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 

EJmmm