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* 

Opinloa Ifo. O-7235 

A . 

Rer Whether 

oi this Depsrtment in 

anmer to the r0 

s OS Article 7064, Revised Civil 

S 925, an as follouar .~~ 

uraauo caa~ tmnaacrtlng the 

. . title . . . or aa.y other klad 

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 State upon 

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 

premium receipt6 as iollovar . . . lro such lnsuraace caspaag shall recelre a permit to do business 
l$morable George B,'ktler, Chairwan, page 2 

131 

i 

in thla State until ruoh taxes am paid. 

llo oocupatlon tax shall be levied cn insu&~e' " 

i 

coppaalos herein rubjooted to a grow premium .I+ 

celpt tax by uy ootmtr, olty or tova. . . pk 

taaer 8ioresald &all oonrtitute all tams and 

llcenae fees oolleotlble undo* the lava of, this 

State againat say rawh S.a8uraace coopaales. * 

The foregoing Artlolo vad later aaended by House Blll 

Ho. 8, Aatr 1936, fhird Called Session 2040, obapter 495 

Artlale 4, Section 51 House Bill lo. #%ts 1937, 45th Lsgl:- 

latpn, page 525, Chapter 250, Section 1; &use Bill Ilo. 556, 

Aotm 19 9, 

.Aotn 19 z 1, 

46th Leglslatme, page 6381 and House Bill lo. 8, 

Seotloa 1. 

57th Legislature, page 269, Chapter 184, Artlele 18, 

form of these aaeadnnnts ohange6 the material proviaions of Artlole 7064 above a&t forth but related malnlf to the 

uount c4f $he tax, addithaal alassltluatltm8 of rubibjeats, and 

other matte= not pertbent to this question. 

/. House Bill 153, A&s 3929, 41st Legirlatwe, page n, 

,Chapter 40, (oodlf%ed as &302a, Veraoaae Annotetbd Civil Statutes) 

-.provided for the areation of aoqwratkm for ovnl.ng abstract 

plants, %nsur%ng tltleu, lendtig raney and dealing in saiouritles 

aa actlng am 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 

payment of ilUng few and fmnchise taxes of.oorporatlons baviag a capital stoolt.an hereby made 

applicable to oorporatiens ooalng under the provlrloas 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 oorporatloa8 inaorporuted 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 foreign carualty oompany ir re-.; 

qufred to pa In order to procure a permit to @ 

buslners In F axar. Such foreign title ccmpanl'es 

vi11 not be required to pay a franchxse ~xu,~ 

That a fr8nahfre tax 18 aim octoupstfon or pr~vllege t8x 

under the lava of t&i8 State 1s aaqueatloned. By virtue of tbe above 

seations, doaestlu title Irmaranoe~~or title gusranty oapanier paid 

a franohlro tax vhile foreign title Insurance or title guamaty cotspanles paid a gaw88 

Artlole 7064, sappn. 

premium moelpts 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 

several rtataa 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 provided far the taxatian of all lasuraaoo organ%urtfoa8 traasaatlag the bueIne8s of 

Ufe, pen-1 aaaldeat, life and aocldent, or health an&aoaldent, 

lsrumace for profit, or mutual bensiLt o$ prateation Fn the State 

of Tsxar, vhlah 8ptwlflcal4 repealed Artialer 7064a and 4769 of 

the Revlred Olvil Statute8 of Texas and also oootaIned a general 

m Zhe Leglslataws also enaoted liorue Bill 9, Acts 

19~14%hu~~iatme page 574 Chapter 341 Section 1 .Vhfch 

a&ended Artlole 7064 hkeInbefo4 referred to: Each of ibese bills 

uar~oa~plemeatary to the other, It being the manliest Intentlon of 

the &gi~l.atum the-by to tax vlthout dirorlminatioa every foreign 

Uad doaertie lamranoe organizatloa dobag evoly olars of inuunuloe 

buatiees peaultted by the lavr of the State of Texar. 

Artlale 7064, as 80 aaezadd by the Aotr of 1945, prooeeded to tax a& oeganlsatioas 4olng a title inspranae borlness and 
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 'of the 8mended 

artiole~tr set forth verbatim I 

%O ocoupaticaa tax Shall. b4 levied 051 inBIll’- 

4~4 kapsuler her8ln rubjeated to the g?O88 p?4mlum 

receipt tax 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 this Arblo1.s. Th4 t4xe8 l fo?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&%?the 

: various. aativltle4 of the dlvlaiofu 4f the Boarci of Iasurance ~~OLIBSIOMM, aad exaept If say auah carrier 

" ia vritlng per80nal aocldent o? health and awldent lnBlllFLIIO4 OthOP than VOl%S+4~‘8 kWiVJlW%Mti0li, it shou h0 

4 taxad as oth4nls4 prwld6d by lav ma aammt o? suoh 

bU8iU48S~ and except un4mploym4slt oamp4n8atl4rI tax4s 

ltwisd wader Senat4 Bill 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 stateA oounty, 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 solely for 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. Revised Civil Statutes of 1925, ----f%& as B1po anda 
~o~gab.le Goor@ ri. Butler, Chsinaea, pege 5 

Rmpmalm 8~~9 of 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 repeal b? necemmaq Lpllaatlaa and ham the *ame effect am 

an erpwsm repeal. TWquestlon of repeal Is-onm of lmglmlatlre lntmat.~ i'armhall v. State, 138 S. Y. 759; 39 Texas Jurisprudence, 

Pp. 13O:and 137. 

*: Xt vi11 be noted tbat.the formgolng provimionm of Artiole. 7064; 88 ulsnded, l tate‘thatr "The taxea aforesaid 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 frcp au7 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 Article UO2a, -' 

mupra. - 

'- 

Tbo further 9rovIml~ of the esmended rrtlale that 'thim 

. all other lam only inmots~~a8 then le 

orgemlZiii affeoted by thti.hot qr others -9 80 

am provided above,’ oonstltutes an axp-mm general re9eal of all,thome prrrts of Artiole 1302e vhhich provldi for tbe aelleat@&tr#.or a payment by &memtLa title lnsvmncm 

6~ tit16 ysranty em~poniem of fnrnohise taxmm to be oms4~med aal 

collected tier the pro~lmlonm of Art&ale 7084, Revised C%vIl Statutes, 1925, am wended, ~ffeotlvwS~ptamher 3, 1945. 

.- It la therefore the ipInIon of thlm Dmpartmemt that the 

k&d of Inmum.nce Conlmmionen barn DO euthorlty to and should not 

demend or"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 grosr promlum roaeiptm tax 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