. . 

PRICE DANIEL 

ATTORNEY GENERAL 

July 16, 1948 

Mh 

Hon. Ernest 0. Thompson, Chairman cm-/ /I ‘z-3 

Railroad Commlsslon of Texas 

Austin, Texas 

, 

Opinion No. v-638 

Re: Relssuance of licenses 

under the Liquefied Petroleum Gas Act, Art. 

6053, V.C.S., bond and 

Insurance requirements 

on change of business 

and related questions. 

Dear Sir: 

By letter dated June 24, 1948, the Director 

of the Gas Utllltles Division of the Rallroad Commission requested the opinion of this office upon certain 

questions presented under the Liquefied Petroleum Gas 

Act, Art. 6053, V.C.S., as follows: 

"1 . A licensed corporation changes during the year to a partnership wherein the 

stockholders of ths corporation becoms the 

partners In the partnership no partners being added who were not stockholders in the 

corporation. Also, the exact converse Is 

often true wherein a partnership changes 

over to a corporate entity. 

“2 . A licensed dealer, either lndlvldual, partnership or corporation, merely 

changes the name of the concern durlng'the 

year while ths ownership remains the same. 

“3 . A licensee changes Into a partnership, corporation or back to Individual ownership either adding IXBW partners or stockholders, or dropping aone as the case may be. 

Solnetlmes the firm name under which the llcensee operates Is changed, sometimes not. 
. . 

Hon. Ernest 0. Thompson - Page2 - v-638 

"Under all of the situations enumerated 

above, It has been the praotlce of this Dlvlslon to require an amended appllcatlon for llcerise, and a new license Is issued reflecting 

the changes that have occurred. The question 

Is whether or not's licensee who makes an 

amended application for license during the 

year which reflects any of the changes set 

out above, must pay a new licensd fee or whether the fee paid for the original license will 

suffice for that year. 

"The next question deals with Section 11 

of Article 6053, as amended, Title 102, (VACS). 

Can .a licensee who operates a dealership In 

one town and who Is the sole owner of scattered dealerships throughout the State, all 

operating under different names, satisfy the 

bona and Insurance requirements of Section 11 

by procuring one bond that purportedly covers 

all of his dealerships and one policy of lnsurance that also purportedly covers the operations of employees and trucks throughout 

his dealerships? Also, In line with the lltense requlremnts of Section 7. A. 6053, will 

one license taken out for all of the dealerships mentioned above suffice, or will a separate license have to be obtained for each dealers hip?" 

Sections 7, 10, and 11, Article 6053, V. C. S., 

provide: 

"Sec. 7. (1) Ho person, firm or corporation shall engage In this state In the manufacturing, and/or assembling, and/or repalrlag, and/or selling, and/or Installing of containers to be used with liquefied petroleum 

gases as a fuel, nor shall such person, firm, 

or corporation engage In the sale, transportation, dispensing or storage of liquefied 

petroleum gases within this state, except 

where stored by the ultimate consumer for 

consumption only, without having first obtained from the Railroad Commission of Texas 

under the provisions of this Act a license so 

to do. Applications for such licenses shall 

be In writing and shall contain such lnformatlon as the Commission shall prescribe. No 
. 

Hon. Ernest 0. Thompson - Page 3 - v-638 

swh license shall be Issued until a hearing 

Is had thereon and the C6mmlsslon has determined that the applicant has made good 

and sufficient proof that he can and will 

meet all safety requlrenu4nts provided In this 

Act and by the rules and regulations of the 

Railroad Commission, and the Commission finds 

that such applicant Is qualified and the evlaence adduced justifies Issuance bf such llcerise. The Railroad Commlsslon shall have 

the authority to promulgate rules and regulations for the safety and protection of the 

public." 

Y5ec. 10. For the purpose of defraying 

the expenses of administering this Act, each 

person, firm, corporation or association engaged In one or more of the pursuits named 

In subsection (1) of this section, except as 

otherwise provided In this subsection, shall 

at the time of Issuance of such license, and 

annually thereafter, on or between September 

1st and September 15th of each calendar year 

pay to the RRllroad Commlsslon a special fee 

of Twenty-five ($25.00) Dollars; except that 

each person, firm, or corporation who operates a truck or trucks in the wholesale or 

retail delivery of liquefied petroleum gas, 

shall at the time of Issuance of such license, 

and annually thereafter, on or between September 1st and September 15th of each caleadar year, pay to the Railroad Commlsslon a 

special fee of Fifty ($50.00) Dollars, and 

when such fifty dollar fee Is paid, said firm 

or corporation shall not be liable for the 

payment of the Twenty-five ($25.00) Dollar 

fee as provided herein. 

"If the license here provided for Is 

lssusd after the month of September of any 

year, all fees shall be prorated to the remaining portion of the year to August 31st 

following, but In no case less than ouefourth of the total annual fee." 

"Sec. 11. No license shall be Issued purswat to this section, unless such licensee 

shall first file with the Commlss'ioa a surety 

bond In the sum of TWO Thousand ($2,000.00) 
Hon. Ernest 0. Thompson - Page4 - v-638 

Dollars with a bonding company authorized to 

dd business In Texas. All such bonds shall 

provide that the obllgator therein will lndemnlfy and pay the State of Texas, to the 

extent of the face amount thereof, all judgments which may be recovered In the name of 

the State of Texas against such licensee, durlog the term of such bond and proximately 

caused by any violation, by sald'llcensee, of 

the terms of this Act or any orders or rules 

promulgated by the Railroad Commission as authorized by this Act. 

"In addition to the bond herein required, 

such licensee shall be obligated to procure 

from SOUB reliable Insurance or surety company qualified to do business In the State of 

Texas, and keep same In force so long as they 

shall continue In business, a policy of lnsurance or surety bond which shall guarantee 

the payment of all damages which proximately 

result from any act of negligence, while engaging In any of the actlvltles as herein 

provided, on the part of said licensee, their 

agents and employees, to both the employees 

of said licensee and also to the public generally, said policy or bond to be In the sum 

of not less than Ten Thousand ($lO,OOO.OO) 

Dollars for personal Injury for any one accident, and not less than Five Thousand 

($5,000.00) Dollars for property damage for 

any one accident. Provided that this section shall not be applicable unless and until such bonds or policies of Insurance are 

available for purchase and further provided 

that such bonds or policies of Insurance 

shall be approved by the Railroad Commission 

of Texas. ” 

It Is undoubtedly the Intent of the statute 

to require that those IndIvIduala or business entitles 

legally responsible to the public for the consequences 

of engaging In such business be licensed under the Act. 

For the protection of the public It Is necessary that 

the records of the Gas IJtllltles Division accurately 

reflect the current status of all licensees. 

Therefore, In answer to yoti first series 

Of questions, It Is our opinion that In each case of 
Hon. Ernest 0. Thompson - Page 5 - v-638 

change of nams under which a licensee Is operating, 

an amended application must be made and an amended lltense Issued. No fees should be charged unless the 

business entity also changes. For example, a corporation Into a partnership, a partnership Into a corporate business, or an lnalvlaual Into either. Llkewise, In the case of partnerships, a new license must 

Issue and new fees be charged upon the,addltlon or 

withdrawal of a partner. This Is trw because such 

changes automatically dissolve the old partnership 

and effect an entirely new entity with different legal 

relations to the public. 32 Tex. Jur. p. 495. 

In the case of the individual operating various dealerships In several towns under different assumed names, It Is our opinion only one license Is 

required, which should, however, Indicate that the 

lndlvldual Is doing business at the various places under the various narms. 

It Is also our opinion that under Section 11 

of the statute one bona or policy of Insurance Is all 

that Is necessary for an Individual doing business In 

more than one town under various assumed names. We 

do'advlse, however, that, as In the case of the license 

for suah lndlvldual, the bona or policy of Insurance 

show it Is Intended to cover the lndlvldual doing business under the various assumed names. 

SUMMARY 

A new license Is required and new llDense fees are payable under the Liquefied 

Petroleum Gas Act, Art. 6053, V. C. S., when 

an lnalvlaual licensee ceases doing business 

as an lndlvldual and the business changes lnto a corporation or copartnershlp or when the 

number of partners In a copartnership changes. 

The same Is true when a business organization 

ceases operating as a partnership or corporation and the business la owned and conducted 

by an lndlvldual. 

One license will suffice and‘only one 

bond or policy of Insurance Is required under 
Hon. Ernest 0. Thompson - Page 6 - v-638 

Section 11 of Art. 6053, V. C. S., for an 

lndlvldual doing business In several looallties under various assumed na11y4s. 

Yours very truly 

ATTORNEYFENERAL OF TE$AS 

JDS:jt 

APPROVED: