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 ii a3 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 Sakw a~liOatfOn for liOUU4. doer not 8ha but 

little Or lruoiiiOibnt a88et8 to cillow 8uoh applf8Mt to humeot business as a Oftma d&altar 

witbou~plaol~~ in ~oopardythosotithwboahe 

trenaaatr eitxu8 puroha88s? 

$l+B8tfOZl ]IlO. 2; "DO08 thi8 leV~&ite th8 

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 purahaareatrith 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 uommi88ion merahent, dealor or broker. aIhor8by raid. 

essoafatlon ‘daalm with or through a doalor, broksr or eoml88Qn merohant, or thel.? duly author- 

;ti026atiathOpPrsha8~ and/or handl~oi aftru8 frdtr, end 8ald #oal8r, broker or OOlldSl lon merahant, OT tholr agant violate8 the terms 

end oondftlons of e aontraot between tho ascroalatioa ad 8aid dealor, broker or co~!amlS8lon marchant, 8813 aaid dealer, broker or am~l88Ion nmrcheat or their agent ban hla lioense or bu 

ont'8 ideatlfleatfon card revoked br tho &Xlirrg 

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 

*All appliaations tar lioonse UtLdsr thir 

AOt aball bo aaoonganied by a tendor of aymant 

in full or the i80 for ruoh liaetnre rbq vs 

on rooei 

redi 

WI 

t bf said application duly cnoouted, togather th requlrad fee it shall be tho duty 

oi the Cozdsrlonrr or hi8 went8 and/or employ008 thorounto ~duly authorized to bim0biatoly 

b8UO 8mOh lio6M0, xl'Orid8a that M ~C8MO 

8haU 188~8 ta any por8on 8tien tho appllaatfon 
Eon. Jl E. UoDonaldj Attention Mr. C. E. YoCoxnlok, page 5 

for lloense tiled by such r&non 8hall indioats that suoh "OT801l 18 5 ru8~ende4 lIoeneoe 

wlthln tho :!tate O? Texas, Or that 8Uch @orBall'5 mOn80 to do busiees8 In T 5x5s hea 

-evoked Until the COlrnI881Ontr 1mrnl8hed 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 dlsomtiOMry with the t!Om18SiOner; in th8 l XOrOI8t 

Of 8uoh di8OrttiOn, t\O COZC&siOner 18 euthorized 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 OWtilng by th8 e,?pUOant 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 conslderetlon 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 

ior, tho ap?lioant 8hel1, within ton (10 P 

pl!od 

days 

rros end artor the donlal of euoh 11OeIi80 by 

the Comlislonor and not theroarter, tile hlr 

l ppeaal rrom the ardor o: the Com~Ireloner tlonylng euoh llognse, in any ,Court of ooznpotent 

jurIs&lotIon wlthln this state; if the ComIeatoner 8hall detemine that the lloenee l p~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 lnaldent 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? i8aUtlLlO8 tk8r8Oi WI1088 8dd ~OTIBit 

8h811 be oanoolled la the manner horelnaftrr protlda l d d 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 oomplaint, setting out the 8;eOIiiO rlolatlon amplalnod or; the ComleeIonor, oa reoolpt or seId 

rorIfIe4 00~ 

(10 5 

laint, shell 8ot 5 dato Bot 3101'8 

than ton day8 fnm the reooi?tof rush oomplblnt 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 demand 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 subpoona 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 l rldonoo introduaed 

thoroln, end ehall, it tho etidenoe wafrantr, 18~ 

hi8 or&or o8Boelling the lioenso at tho ?ereoa bornplalnod of; any lIaeneoe, who80 lIoea8e 18 50 aanoolled by an ardor Or the Comalmloner, 8hel.l bo 

notIfIod In writing by r’egi8terOd ml1 of the oeaoollatioa 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, provided that such a peal shall be filed in said 

oourt within ten s 10) days rrom and altar reoalpt by 1loenaeC ot notloe of aald oanoellatlon, 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, pursuant 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 provlalond o,f this Aot, the Commlasloner Is hereby 

vested with full power and authority and It 

shall ba his duty, either upon his own lnltlatire 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 tranaportation 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,alleged violation under investigation. The Comlaaloner shall take auoh aotlon and.hold auoh pub110 

hearings as in--his ju&ent are shown to be neoeaaary after auoh lnvestlgatlona, and shall take 

the proper action with reierenoa to the oanoellatlon or Buapenslon ot the lloenae of any dealer 

,hereunder shown to have been guilty oi a rlolatlon 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 ooourred. 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 Cusstlon, 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 bualneaa 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 provlaion ot the Act, Seotlon 6 provides the procedure wqeraby 

hi8 lloenae Ia oencelled or a~apbnded. 

Conatrufiq Seotlona 6 and 14 together, It la apparent th?-t the Com~iaaIonsr may Imbstlgate Plolationa of 

the Act and hold heerlnga thereon *either upon his OWD inltlatire or upon the reoelpt ot a prosorly rorltled oomplaint .W Eo has the power and authority to Take the propor 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 vlolatlon ot the prorIalona ot the Act, tha Comzlaaloner of Agrlculture 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 parson*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 l ootIon it 

la expressly rtated that8 

%o lloen8e l h8ll 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 l uapondo& 

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 l 8tIatSotory j~ooi that th8 

l ppliomt 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 lioonae 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 return0 to 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 tll ouap4nalon n of 8 do8ler*S lloonao. 

See l apoolklly 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 heming by tha Codasloner OS h&rioulturo on olmrgor ot tlolatlon of the A8t in compliaaoe dth the poTiaioM of Sa83iOn 

6, with rerooatlon or l uaponaI8a 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:;.o AOt are 

grouda tor rsvooatlon or oanoellation of his 1100~0~ that 

unaor sootlon 4 ot Art1010 118b the Com3Iaaionor lua no 8uthorlty 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 l pplloant whose lloanae baa been re- 

+okad Or SwpM4led has the right to an open hearing on the 

iecta pertaining to such application. 

ID r o g a rto d y o ur l eaontl qwatlon, we dab to 

quote .Subdl~ialoa (b) ot Sotlon 4, wN& reada aa follower 

‘AT1 ~oomIaal0u moroheut8*.8ud/or *Ggalors! ud 

‘contraot doa14rar,1 es tha tom8 l ro In this 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 

,a\110 ot llro 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 ’ 

l ftaet 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 dolivery to the ComIaalomr 8nd. the approval by him 

ot the bona roqulroa under the prorldona o? this 

Sootloa. Ho ooop4ratIve l 8aooIatl0n 0rganIzed pursuant .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 l 8fioolatlon doallag In citrus trult 

uthor then tor Its produoor ambora ehall bo ropulred to fwalah boo6 es any other dealor. It la horoby dealare to be the polloy Oi the ~giSlatW* TV 

m)te these l romptlona rdth reterenoo t0 oooper+ivo 

8aaocb tlona booauae of the faOt tbt the r;rod*Ooraiombora pool their trult tar se10 reth9r -than lamodlately 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 

-AMlsP in al! 

rorl~lo~ of Artlola ll8b a ply to thu 

hlo ooatraetual relations hi pa whathu the 

exlrt betwoaa him and a gPow@r or puroharer] or betwean h L 

and other oomnlarloa muohant8, dealers or brokers) or between 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 acoouatzaAfor 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 ~~5dbrrpblhg 0r 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 Luglalaturo that a brraoh of a oontraot to vhloh he ms 

a part by a lloonsed dealer eumunted to a Yiolatlon of the 

LiOUIE L 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 l ut@wlty ts aubjeot to a hearing and to rovolm or buspen4 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+nlesloau 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