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 a Beer RetailerIs 

On-Premises License to a nonDear 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 a non-profit corporation having no capital stock can qualify for a beer retailer's 

on-premise license under the above section, which reads in part 

as follows: 

"Section 5. 

"Any person may file an application for a 

license as a Manufacti.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 who have resided within this 

State for a period of three (3) years and who possess the qualifications required of other applicants for licenses; . . *'I 
Honorable Stanley Kacir, page 2 hW189) 

Opinion V-1121 involved a determination of a similar 

problem concerning packa e 

+&ion 18 of Article 66 % 

store permits under the terms of 

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

. 

“Se ct ion 18 a 

Wo person who has not been a citizen of Texas 

for a period 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 a corporation unless the 

same be 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 

who have resided within the State for a period of 

three years and who 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 18 of Article 666 are identical in requiring that a corporation be both a domestic corporation and 

be owned to the extent of 51% of its capital stock by residents 

of Texas who possess the qualifications required of other applicants for permits or licenses. Section 18 of Article 666 states 

the requirement positively, and states that no permit shall issue unless both requirements are fulfilled. Section 5 (2.) (h) 

of Article 667 states the m requirements negatively, and provides that the County Judge shall refuse to issue a license if 

either of the requirements are found m to exist. 

This office, in Opinion V-1121, held that a non-profit, 

no capital stock corporation could not qualify for a package 

store permit o @die here reaffirm the reasoning and holding of 

that opinion and appiy it to the present inquiry as a basis for 

our present opinion. Par your convenience we have attached a 

copy of Opinion V-1121. 

You are therefore advised that, applying the construction and reasoning of Opinion V-1121, a non-profit, no capital 

stock corporation cannot qualify for the issuance of a beer 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) 

K beer retailer's on-premise license may not 

be issued to a non-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: 

OPINION COMMITTEE 

H. Grady Chandler, Chairman 

C. K. Richards 

Marvin Thomas 

REVIEWED FOR THE ATTORNEY GENERAL 

BY: Geo. P. Blackburn