OF TEXAS
AunTIN 11. -rExAn
July 

### 24,1957
Honorable Stanley Kacir Opinion No. 

### WW-189 County Attorney Bell County Re: Does Attorney General's OpinBelton, Texas ion No. V-1121 apply to the issuance of aBeer RetailerIs On-Premises License to anonDear Sir: profft, no capital stock, Texas corporation? You have requested our opinion as to the applicebllity of Attorney General's Opinion No. V-1121 to the provisions of Section 5'(2) (h), Article 

### 667,Vernon's Penal Code. More specifically, your inquiry concerns whether anon-profit corporation having no capital stock can qualify for abeer retailer's on-premise license under the above section, which reads in part as follows: "Section 

### 5.

"Any person mayfile an application for a license as aManufacti.per, Distributor or Retail Dealer of beer invacatlon or in termtime with the County Judge of the county in which the applicant desires to engage in such business. The County Judge shall refuse to approve the application for such license if he has reasonable grounds to believe and finds any of the following to be true:

“2. If a Distributor or Retailer: '1.

. . "(h) If a corporation, that the applicant iS not incorporated under the laws of this State; or that at least fifty-one percent (517) of the stock of such corporation is not owned at all times by citizens whohave resided within this State for a period of three 

### (3)years andwhopossess the qualifications required of other applicants for licenses;

. . *'IHonorable Stanley Kacir, page 2 

### hW189)
Opinion V-1121 involved a determination of a similar problem concerning packa e +&ion 

### 18of Article 

### 66 % store permits under the terms of



### ,Vernon’s Penal Code, which is as fol-

.

“Section 

### 18a Wo person whohas not been a citizen of Texas for aperiod of three 

### (3)years immediately preceding the filing of his application therefor shall be eligible to receive a permit under this Act. No permit shall be issued to acorporation unless the samebe incorporated under the laws of the State and unless at least fifty-one percent (51$) of the stock of the corporation is owned at all times by citizens whohave resided within the State for aperiod of three years andwho possess the qualifications required of other applicants for permits;

. . .‘I In our opinion the provisions of Section 

### 5(2) (h) of Article 

### 667,and Section 

### 18of Article 

### 666are identical in requiring that a corporation be both adomestic corporation and be owned to the extent of 51%of its capital stock by residents of Texas whopossess the qualifications required of other applicants for permits or licenses. Section 

### 18of Article 

### 666states the requirement positively, and states that no permit shall issue unless both requirements are fulfilled. Section 

### 5(2.) (h) of Article 

### 667states the m requirements negatively, and provides that the County Judge shall refuse to issue alicense if either of the requirements are found m to exist.

This office, in Opinion V-1121, held that anon-profit, no capital stock corporation could not qualify for apackage store permit o @die here reaffirm the reasoning and holding of that opinion and appiy it to the present inquiry as abasis for our present opinion. Par your convenience wehave attached a copy of Opinion V-1121.

You are therefore advised that, applying the construction and reasoning of Opinion V-1121, anon-profit, no capital stock corporation cannot qualify for the issuance of abeer retailer’s on-premise license under the provisions of Section 5 (2) (h) of Article 

### 667,Vernon’s Penal Code. If such a corporation were to apply for such a license it would be the mandatory duty of the County Judge to refuse to approve the application under the above Section of the Liquor Control Act./ -

..

.

Honorable Stanley Kacir, page 

### 3 (WW-189)

Kbeer retailer's on-premise license maynot be issued to anon-profit, no capi.tal stock corporation because such corporation cannot qualify under Section 

### 5(2) (h) of Article 

### 667,V.P.C. Yours very truly,

JHM:zt:wb APPROVED: OPINIONCOMMITTEE H. Grady Chandler, Chairman C. K. Richards Marvin Thomas REVIEWED

FORTHEATTORNEY GENERAL BY: Geo. P. Blackburn