**OFFICE OF**  **l-NE ATTORNEY**  **OENERAL OF**  **TEXAS**



# AUSTIN

Honorable onill. 8. Carpenter Chairman andXxaautlre Direotor Taxaa U~OmplopmsntOompensation Cod~aion Austin, Tour

**qurrtlng** our opill (1) aad (4), Seat 

# tlard Clrll sta+ Wb**quote** from y mmber 88, 1939, re-



# 011 Of sub-motion8 2lb-17, Vernoa' lmw frot rltuatlon whloh

oyment during oquirer ownerthe twentp-eeoond has twu persona irot twenty-iire **week8** Nerapaper Z ia valued g the twenty-fifth mek of 1938, **artnerahip** interest in Neneing the twenty-sixth week and erks 5~ 1938, Newspaper 2 ha6 sir employmentr Thepartnerahlp agrorwriting and there ir no~agreemenb a8 to gontrol or management or ita operationar oD~~a

### Seotlon 19 (r) (4) apply to this Saab eituatloa to 

### rrnder both Nand 2 WplOyW8 m&or the Tbxa8Onemployment 0omprnrrtion Aott*Honorable Orville, 9. Carptnter, Page e

follows: Sub-ssotlons (1) and (4) of Sootion (r) roads as

w ‘Employer’ means 

### ”1) 1 tlon o My emplo

a day but no

zIng unit whIoh for some

### porneoessarlly simultaneously, In eaoh of twenty (20) different weeks, whether or not suoh weeks are or were oonseoutlvs, wlthIn either the ourrsnt or the Dreoedlnn ialendar pear, has or hadIn employmeni eight (8) IndIvIduala (Irrsspeotlre or whether ths Indlrlduals are or were employ06 In saoh da)r)I or more ssms suoh

w* * *

“(4) AnyemPloYing **Unit** which together with ens or moe.other amp10ing units, Is owns& or oontrolled 1by legally en oyoeable msans or $ otherwIs8) dlreotly or Indlrsotlp bp the sams Interest, or whloh owns or controls one or more 

### othersmploying unIt8 (by legally snforosabls means or otherwlss), andwhich, Ii treated as a single unit with such othsr smploping unit, would be an employer under paragraph (1) of this subsaotlon~ a* * **n
Ths factual situation oontainsd id 

### yourletter raises ths question whether or not the owner of a six-sevenths (a/7) partnership Interest In a newspaper owns or oontrols said partnership buelness within meaning of sub-ssotion (4) of Seotlon (f) oi Artiole 522lb-17, supra, In the absenos ot an agreement as to the oontrol and managsmento? said partnerehip. It Is generally held that eaoh partner, In the absenoe of tmagrsemsnt to the oontrary, has an equal right to oontrol andmanagethe buslnese. 49 Corpus Surls. oh, 296. It Is also the general rule that a partner does not ownany particular Intereat In a partnership enterprise but his Interest extends only to a proportlonats share of what mapremain after payment OSthe debts of the partner&hip and the ssttlsmsnt of Its aooounts. Shark v. Bank, 806 9. W.‘507.

Wsare of the oplnlon that ths Legislaturs, being familiar,~th the abets rules, nstsrthsless, intended that an Individual owning a sir-sevenths (6/T) Interest in a partner-Honoreble Orville 9. Csryenter, Fage 3

ship buelnesri doos ownor control the business In the absence of an aqeenent to the oontrery. This Intent Is derived from sub-seotlon (4) ot Seotlon (I) of Artlole 5221b-17, whloh provides that if 

### one employln~ unit *owned or oontrollad (b leqlly enforoeable means or otherwIse) dlreotlp or Ind reot- 35 &, another enploylng unit, then 

### they would b treetsd as one unit 

### underthe Aot. Thewords *owned” sndewoontrolled* are general terms end their neaeing would vary according to the3.x

### use. This being bme, Newspaper “M”, vihloh “A* owns outrI&t, andNewspaper nZn, of whloh “Anowns a six-aerenths (6/T) partnership Interest, are to be treated as one employIng unit and are oonsldered en en loper within the Act. %aaJnnIng on the trranty-sixth (26th

### v weak, both.newspapers, together 

### hating eight (8) indlriduale in their employment would

# be

liable for meld taxes at the 

### beglnnln(l of the forty

### sixth(46th) 

### weokofthe 

### year,WM.
Yoursvery truly



# ATT~PJEY

Ol3G3U.LOFTEXt.3



### blenn Ii. Lewis Aeslstent 

# Lu BY Lee

# shoptar

.ws

kT'HXWCY GEN:::

..L OF TTXAS