**OFFICE OF**  **THE ATTORNEY**  **GENERAL OF**  **TEXAS AUSTIN**  GROVER SELLERS Al-rol?N~ GmtCU‘

Honorable

Qeorge 8. Butler,Chairman **r"** Board of Insurance Comalssfoners Austin 14, Texas
**Dear** Xr. iutler* OpinloaIfo. O-7235 A
. Rer Whether

oi thisDepsrtment

in anmer to the r0

s OS Article7064, RevisedCivil S 925, an as follouar .~~
uraauo caa~ tmnaacrtlng the

. . title

. . . or aa.y otherklad Of i.BEcCr bU8iIiOB8 Other thsn the lie iasuraaoe,

rlthin thir State
. . . **at** the tire of flllng its annual statement, shall report to the Commlssloner, of Insuranoe

the gro86 amount of premium received in the Stateupon property,and frm pexmm~ **resldlng** in the State during the preceding year, and .eacb

of such compauier shall spay

an anaual tax upon such gross premiumreceipt6

as iollovar

. . . lro such lnsuraace caspaagshall recelre a permit to do businessl$morable GeorgeB,'ktler, Chairwan, page 2 

### 131

i in thla State until ruoh taxesam paid.

llo oocupatlon

tax shallbe leviedcn insu&~e' "

i coppaalosherein rubjooted to a grow premium.I+ celpt tax by uy ootmtr,olty or tova.
. . pk taaer 8ioresald

&all oonrtitute all tams and llcenaefees oolleotlble undo* the lava of,

this State againatsay rawh S.a8uraace coopaales.

* The foregoing

Artlolo

vad lateraaended**by** House Blll Ho. 8, Aatr 1936, fhird CalledSession **2040, obapter**  **495** Artlale**4,** Section51 House Bill lo. #%ts 1937, 45th Lsgl:- latpn, page 525, Chapter250, Section1; &use Bill Ilo. 556, **Aotm** 19 9, .Aotn z 19 1, 46th Leglslatme, page 6381 and House Bill lo. 8, Seotloa1. 57th Legislature, page 269, Chapter184,Artlele 18, form of theseaaeadnnnts ohange6

the material

proviaions of Artlole7064 above a&t forth but related malnlf to the uount c4f $he tax, addithaal alassltluatltm8 of rubibjeats,

and othermatte= not pertbent to this question.
/. House Bill 153,A&s 3929, 41st Legirlatwe, page n, ,Chapter

40, (oodlf%edas &302a, VeraoaaeAnnotetbd Civil Statutes) -.provided

for the areation

of aoqwratkm for ovnl.ng abstract plants,%nsur%ngtltleu,lendtig raney and dealingin saiouritles aa actlngam trwtee8 satl ior llegnlation

of ruab oorporations by the Board of fnsumnce Calmloners. Tbo pertinent sections s of this &at are a@ follows (all emphases hereafter

added)I %eotlon 7. me general law epplicable to paymentof ilUng few and fmnchise taxes of.oorporatlons

baviaga capitalstoolt.an hereby made applicable

to oorporatiens

ooalng under the provl**rloas of**  **thlr Act.**  **Doaneatia aoroortLfion8**  o$mmtlnu under thla lav shall not be mqulred to wx premium taxO8.' : . .~.
. . I. 

### l

s4lotlm 8. The aborter of oorporatloa8inaorporuted

hereunder,

aad .tbe

aaendmnts thebto, ibis11 b fil*d lfith

the Boati of xnmlrance Cmls-

%eotloo 22. Aay oorporatlon orgaaired

and lntorponsted

under the lavr of arq Other rtate, territory or ootnrt*~

for the purpose **of** transacting

a title lnr,uranoe **or** title guaranty

buslners

&all be

### 132

-.

Honorable

George B. ButloP,chplman, page 3

**required to**  **par the**  ~a80 filing tee8 and occupa- '
.- tl6n tax a8 8ny foreigncarualty oompanyir re-.; qufred to pa In order to procure a permit to @ buslnersIn F

axar. Such foreigntitle ccmpanl'es vi11 not be requiredto pay a franchxse ~xu,~ That a fr8nahfre tax 18 aimoctoupstfon or pr~vllege t8x under the lava of t&i8 State 1s aaqueatloned.By virtue of tbe above seations,

doaestlutitle Irmaranoe~~or titlegusranty

oapanier paid a franohlro

tax vhile foreigntitle Insurance or title guamaty cotspanles **paid** a gaw88 Artlole7064, sappn. premiummoelpts tax under the provI8lm8 of

It is a w&titer

ef oaum and gene~lknovledge that

**‘ after**  the **au me**  Co-t of the UnIted States **readend** It8 opinion ,in J-0, l9

4 ln tha aase of Southeartem **Underwriter8** Aa8oalatlaa v. United S&%&r, thereby holding the bu8ine8s **of** lnmmaas to be latemtate oomonevhen oarriedkyand theborden ofamy of the severalrtataa it ~88 the Lz&entlon of the 49t.b

Legirlatwe to earot soab legis~tltm a8 ktght be neoe88aapf to elirl.nate

the dimarlmination,

if any, in tbd taxation of foreigrr

Insurance

oompanlerr

and daneatlo

laamumnae

cm11panle8~ The 49th Legtdlatwe themtqma emoted Bouse Bill 23, ,. **Acts** 1945, 49th kgl8lature, pa@ 442, Chaptelr 279, (erroneously codified

as Artlole 47&a, .V. A. C. S.), vhlch providedfar the taxatian of all lasuraaoo organ%urtfoa8

traasaatlag the bueIne8sof Ufe, pen-1 aaaldeat, life and aocldent,

or healthan&aoaldent, lsrumace for profit,or mutualbensiLt o$ prateation Fn the State **of** Tsxar, vhlah **8ptwlflcal4** repealed Artialer7064a and 4769 of the **Revlred** Olvil Statute8 of **Texas** and also oootaIned a general m Zhe Leglslataws also enaotedliorue

Bill 9, Acts 19~14%hu~~iatme page 574 Chapter341 Section 1 .Vhfch a&ended Artlole 7064 hkeInbefo4 referredto: Each of ibesebills uar~oa~plemeatary

to the other, It being the manliest Intentlon of the &gi~l.atum the-by to tax vlthoutdirorlminatioa every foreign Uad doaertielamranoe organizatloa **dobag** evoly olars of inuunuloe **buatiees peaultted**  **by** the **lavr** of the **State** of Texar.

Artlale7064, as 80 aaezaddby the **Aotr** of 1945,prooeededto tax a& oeganlsatioas 4olng a title inspranae borlnessand

### 133

Bonom?zble

George 8. Butler,Chrlraaa, page 4
provided for 6 tax upon the gross predu~ ?eaelp4s In a,p&axlmately the same manor as ia the orlgirml aot. ft **&an&d** 8@4rially the awductlon

of the rate of the t6x by investment ln ap#oved T4xas 80- auritle8

as defined la the rat. The last paragmpb 'ofthe 8mended **artiole~tr** set forthverbatim I

%O ocoupaticaa

tax Shall.

b4 levied 051 **inBIll ’**  **-** 4~4 kapsuler her8ln rubjeated to the g?O88p?4mlum receipttax by any ootmty, olty **or** tOvu.~

All mutual rmemai b4nevol4nt a88o8l.8tlon8

nov or he?mfter doil~&J bU8lXi488

h this stat4 tie? th4 b&O SyStast and **?O~X ’**  **4802dtLtiVO**

**fOrP** Of gOV4l'lSB4Rt, Uh4thO? O?@lbOd undelr the lavs of this State o?a fon1nn state or ainmtry,

an exQapt fmiihe ~i0vI81on8~of thisArblo1.s.

Th4 t4xe8lfo?48ald shall ocm8tItut6

all taxeE aolleatIbl4

uut?4r the lam GTEhl 3bt 8U8h iII$-k'aZi44

Wl??:4?8

**OXOSpt** 8UfOt4n8ii:

rcelnat

q tax68 $4- olally levlsd

uuder th4 'Isv8

of this 8tate aBd a88e8Bed by thb &wrd Of as-44 CQoPiS81OZl4?8 t0 Su.p&%?t

he : various.

aativltle4

of the dlvlaiofu 4f the Boarci of Iasurance

**~~OLIBSIOMM,** aad exaept If say auah **carrier** " ia vritlng per80nal aocldent o? healthand awldent ln**BlllFLIIO4**

**OthOP than**  **VOl%S+4~ ‘**  **8 kWiVJlW%Mti0li,**  **it shou**  **h0 4**  taxad as oth4nls4 prwld6d by lav ma aammt o? suoh bU8iU48S~

and exceptun4mploym4slt oamp4n8atl4rI

tax4s ltwisd

wader Senat4Bill Bo. 5, **pa484d** by Third Called **Sessi~** of the ?ortr~fmwth Idglrlatum and amendments the?4to. fo other -kax shall b6 levied**or** aolleoted f?om any laauranoe

aarrler

by the stateAoounty, alty or say but this b hall tZevy aad eoll~4tloa t b4 ooautmmd to prohibit o~stete.'4oua~y

and mn%olprl **tsr48** ~Uiwn

**ths** ?8al and p4?84nal-p?Qp4?ty 4f SUOh 4arrler. p\mlj **OOO~lUtiV4** O? 8UtUd fills tIASUlUIh44

04Bml48 oarsled on by the members thenof solelyfor the proteotlon oi.

their ovn pmpstiy', aad not for **profit,** shall be ‘exarpt frktha provlsloarr Of thk lav. %%liS

let ahall be omtllatIv4

of all other **fsV8** md *ha11TF-X-A?t141e $758.RevisedCivil Statutesof 1925,as B1po ----f%& anda~o~gab.le

Goor@ ri.

Butler,

Chsinaea,

pege 5

Rmpmalm8~~9of tvo klndm--express or Irplied. An exptimm repeel 1s one oooompllmhed by positive

enaataeat thm Perpose ot the Legislature. 'It may be *neral 8 ealaripg or?- pecial. Uheem a MY enactmnt abrogated any torrner

act'on thd mame siubjeet with vhlch it oleetrly and sanIfemt.ly aanflictm,

to the extent of'

the lnnoonmimteaa~ or repugrtanae beivetin the tvo, muoh kaeotment constitutor 8 repealb? necemmaq Lpllaatlaa and ham the *ame effectam an erpwsm repeal. TWquestlon of repeal Is-onmof lmglmlatlrelntmat.~ i'armhall

v. State, 138 S. Y. 759; 39 Texas Jurisprudence, Pp. 13O:and137. *: Xt vi11 be noted tbat.the formgolng

provimionm of Artiole. 7064; 88 ulsnded, l tate‘thatr "The taxeaaforesaid mball oonmtitute all;-taxes

collootible

us&d& the lavm of this State against
rnr much lnmwaaoe carriers.

. .* and that "go other.- shell be levied**ar** collected frcpau7 lns~ce aarr%eP by the State,
. . ." b&i of the forsgoing ~vbionm constitutes r.repesl **br** lx~plicetlen of tlm e69hamlmed portioam

of Seotlonm~

7 and 8 of ArticleUO2a, -' mupra. - '- Tbo further9rovIml~ of the esmended rrtlale that 'thim

. all other lam only inmots~~a8 then le **orgemlZiii affeoted**  by thti.hot qr others 80

-9 am provided

above, ’ oonstltutes an axp-mm general

re9eal of all,thome prrrts of Artiole1302e vhhich provldi for tbe aelleat@&tr#.or a **payment by**  &memtLa title lnsvmncm 6~ tit16ysranty em~poniem of fnrnohise taxmm to be oms4~med aal collected tier the pro~lmlonm of Art&ale 7084, RevisedC%vIl Statutes, 1925, am wended, ~ffeotlvwS~ptamher 3, 1945.

.- It la therefore the ipInIonof thlm Dmpartmemt that the k&d of Inmum.nce Conlmmionen barn DO euthorlty to and should

not demendor"rcmipt

franohtie

taxes tror any **doebstle** title ~murance **or title**  **gumrinty ooqaay**  **ohrtered** inade~ e of thC8tate OS $‘aram, but @at its is ~tbo duty ei muoh dcmteatio

caa~pmnlem to psy the grosrpromlumroaeiptmtax rocordhg to the terns and 9?ovlmionm Of'ktlEld 7064, R#ylmed Civil Statutes, 1925,am amwtded**by** Aotm 19%. 49th Legimlature, l upra..

.. Yours verg trulJ ATTORl5tY tB%BRAL OF TTah8