March 2, 1955 

Mr. M. B. Morgan 

Commissioner 

Bureau of Labor Statistics 

Capitol Station 

Austin 11, Texas 

Opinion No. S-153 

Re: Applicability of the 

Private Employment 

Agency Law, Article 

5221a-6, V.C.S., to 

a voluntary associaDear Mr. Morgan: 

tion of undergraduate 

and vocational nurses. 

Your request for an opinion relates to a group of 

undergraduate and licensed vocational nurses who have organized a voluntary association and set up a non-profit nurses 

registry to which they pay monthly dues or assessments to 

pay the registrar's salary and Incidental expenses of the 

registry. 

It has been reported to your office that the 

association registrar makes placements for the member 

nurses by contacting hospitals and offering to supply 

nurses when they are needed. The nurse is usually engaged by the hospital and paid by the patient for her 

services s 

In view of the above facts you ask these questions which we paraphrase as follows: 

1. Would the practice of solicitation or advertisement either for members for the association or for 

employment for the members of such association make the 

association subject to the Private Employment Agency Law? 

2. If the above question is answered in the 

negative, to what extent may such association go in the 

solicitation of membership as well as soliciting emplogment for the members of the association through hospitals 

and physicians without being in violation of the Private 

Rmployment Agency Law. Would such registrar be prohibited 

from recommending to the various hospitals that they use 

the service of the registry? 
Mr. M. B. Morgan, page 2 (S-153) 

The sedtions of the Private Employment Agency 

Law, Article 5221a-6, Vernon’s Civil Statutes, pertaining 

to your questions are: 

“Section 1, (e) ‘Private Etnployment Agent’ 

means any person in this State who for a fee 

or without a fee offers or attempts to procure 

employment for employees. . .” 

“Section 2. . . . The provisions of this 

Act shall not apply . . . to any nurses’ organlzation operated without profit when conducted 

by registered nurses for the enrollment of its 

professional members only for the purpose of 

proviSflng professional service to the public; 

. . . 

The queEition which arises Is whether this association is within the exemption set out in Section 2 above. 

In Attorne General’s opinions numbered O-6879 (1945) and 

O-7369 (19 g 6) this office passed on the question of membership fees charged by a nurses organization. In O-7369 it 

is stated: 

“The facts indicate that a group of undergraduate 

and practical nurses are seeking to form a VoluntaFg 

association and hire 8 person to keep a record of 

their employment and assess themselves a sufficient 

amount per month to pay the salary of the person so 

employed, and all other Incidental expenses. It is 

the opinion of this department that such voluntary 

organization does not come within the definition of 

an employment or labor agent. . .” 

These opinions were rendered under Section 2 of 

Article 5221a-4, :.C.S., which provided for the exemption 

in these words: . . . the provisions of said Act shall 

not apply . . . to any nurses’ organizations operated not 

for nroflt, to be conducted by recognized professional 

registered nurses for the enrollment of its professional 

members only for the purpose of providing professional 

service to the public.’ 
Mr. M. B. Morgan, page 3 (S-153) 

Said section was repealed and r.eenacted by Section 2 of Article 5221a-6 ~above. The only difference was 

the omission of the words "recognized professional" from 

the current act. Thus under the facts given and In accord 

with our prior opinions we must hold that this association 

would be within the exception given in Section 2 of the 

Act. 

Having placed this Association within the exception given in Section 2, we turn to your first question 

which is that when there has been an overt act of solicitation of members or an attempt to procure employment for the 

members of the Association is the Association within the 

exception? 

Once an organization has met the tests of profit 

and control, which were the basis of opinions O-5424, O6879, and O-7369, the fact that the modus operandi of the 

organization as to procurement of employment may be similar 

to organizations operating for profit would not change the 

basic structure of the organization nor the reason for allowing such exception. The Legislature stated In the Article 

in question, *for the purpose of providing professional services to the public,* which would reasonably contemplate 

some kind of advertisement or active campaign to make hospitals and physicians as well as the public aware of the professional services which can be rendered by the nurses. 

It Is our opinion that your first question should 

be answered negatively. As to your second question which 

deals with the extent of such solicitation, it is our 

opinion that this would be a subject to be governed by 

the ethics of the societies of which these nurses are 

members, 

SUMMARY 

Solicitation of members and employment by 

an association of undergraduate and licensed 

vocations1 nurses does not remove such organization. from the exception provided in Section 2 

of Article 5221a-6a, V.C.S. 
Mr. M. B. Morgan, page 4 (S-153) 

The extentto; which such-prganlfatio? may 

go to procure employment for Its memDers 18 CO 

be governed by'the societies in which said nurses 

are registered. 

APPROVEDr 

J.~ Fred dimes 

State Affairs Division 

J. A. Amis, Jr. 

Reviewer 

John Reevea 

Reviewer 

Robert 5. Trottl 

First Assistant 

Yours very truly, 

JOHN BEN SHEPPERD 

Attorney General 

:: 

BY 

Aesiatant