Untitled Texas Attorney General Opinion ( 1942 )

Flciii@~i Qalorgo H.’Sheppard .: Caller of PiAil Aaaouatr Aulfina, yn3.%as Dear Sirs 0plni0n NO. o-4371 Be3 Whether ho. 14, Art. 7047, B.C. 8. appliee$0 Imnk regularlyorgenic- ad and operatiagund6r the Buktag Iawe of Teaa if suoh Iaakleada money onhousehold~ture and takw a ohattelmortgageas mmrity for t&k 4oan; and rela*d questions. .' .Bfyour l&t&of lkoh 20, 1642, you tiquestthe opbionr.ofthis dep&aiGat~ia'ri+msa to E& questicms,the first five of lrhiohrelafe'to: tb ipplieability of Seet$.Oa 14,Artiole 7047,.ILC.S+ andtti lixbh r&q&t- i ing bur ooastruotion'of SSofioa2, House Bill 676, Aots ofthq 47th Le~gisla- ,. ture. Yourquestioxzsreedr "1. lkie6’ tlm Aot apply to a lmnkhg iastitutloaj ~r6gularly ~orguimd as tit& aad Opentiag under ths St&o w l.+n6of Text, ifiini bankb~&&qy:onli~+old orkltohemfuntitun udtakur a ohdtei mortgagees mmarifyforthelosrr? *2* I.8P %&Hng insti~t+on, pereon,'irm or ookporatim who purohaeas unpaid ohattklkor0g~ges,onhousi&old o~kitohen fwnitura andtakas u urigmdent of the mo~gages, @jbot to t&e +%x7. “3. Io'r prmn, firmor oorpoxationwho andtakei a chattelmortgagq (sot a Mtohenfwaitura sulrjeot tothetut Am lo~r.~om@mi~s,operatingmder the Uorrls Plan,'rho 1-d mosey and take for oe&i~ a ohatteltirtgage.onhouaehold.orHtolienfuny itwe, mbjsot to the tu? 9% Is a person,fiiiuor oor@ora%toa,whp mkee a businessof +nid3.%g momy to individualstithout wouri~ (so-aalledp~ox%al loanoa@&e~), subjsetto the Aet? “6. A#ole 61652,'R.C.k,raqyirea' every 'loamln-oker' doingbusinessin this 6tate to keep',a mall-Bomd book~reoordof.all.hiatrrarsoations witbotherpemms. Seotior2 of Hoime Bill I%.,678, 9n Act of 'the47th Legislature, gimi fhe'Cckptrollbr of PublioAaoounts pmr oz@ atithoritg Q.maki and plblishrul& Pndragulatfonk,mot imcan~iste& with an+ Hon. Gsorge Sheppard,page 2 (o-4371) &sting laws, for the mforoaseut of the ~tisicms of the Aut. "Does the tbove mentionedprovisionof H. B. 678 glvu ths Casptrdller the authorityto pass P rule aud rsgulationrequiringany person,firm or corporationin the businessof lendingmoney,to produoeupon ds- mand of ths Comptrolleror the Attotiev General,sny rscordsrequirsd by Artiole 6165a,R.C.S.,to be kept?' The pertinentpxrbs of tiiole,7047; B.C.S.,read as follcnric 'Thereshall be leoied and collectedfron every person,firm, o~mprupror PS- sociatianof persons,pursuingsny of the ocoupationsnsued in the following mdered'subditisions of this Prticle,an annual oooupntiontax, whioh shall be paid annuallyin adwnoe, exospbwhere hersin ptiided, on evsry 6uoh oooupationor separrrteestablislnmnt,as follarsr . . .s "Section14. From loan brokers,astiat tons is definedby the IAWS ofthis State,'u aunualtax of one hundredand fifty dollarsfor each place of IUSiBSSS. Se&cm 2 of abuse Bill 122, Aeta 1927, 1st C.S., p. 30, Ch. 17, lacLoh has been oodifiedas Sestics'2,Artiole BZBSP,ViA.C.S., definesa losn broksr in the followingmxdsr “A loanbroker is P person,firm, or oorporation who pursuesthe businessof lendiug'money, ~ohas%ug salariesand takingfor seouritgforthe payment of~suohloan aud iuteresttherson au assigmnentof wages or.assigxmmutof wages rith Ftmir of Attonmy to collectthe,,ssmeor other order for &aid ohattelmortgage or bill of sale upon householdor kitahenfurniture." Seation 6 of said Rouse Bill 122, Auto 1927, 1st C.S.,&ah has been oodified~asArbiole 1129a,Vernon*8Peaal Code,providesthe penal.~ for ViOlationsof the luw by loan lookers,PP "loan Icoksrsis definedin said*& In &x parbe Rutssll,182 S.77.458, our Court of CriminalAppeals had under consideration the oonstruotionof Chapter28 of the Aots oftfre Thirty-fourth Legisl&ure, definingpad regulating"loanbrokers." Seation 1 of that A& definesa sloan 'brokers inthe idsntioallanguageused by the Legislatureto define *loan brokerss-inths Act hers considered. In ohat sass the applio& for,+writ of halmas corpus,who had been chargedby complatitwith the PiolPtiouof Paid A&, of the 54th Legis- lature,&ughb release,contsndingthat tlm Act uas unoorstitutiazp1, and that he '~8, tberefsrs,entitledto be disohsrged. In supportof hi8 aon- tenticuhe oitid~thecase of Owns VS. Stats, 122 S&7. 1075. In holdingths Act oonstitutioual, the Court used this lsnguagar "In the Oneus oa.88,supra,it is said: .--. Bon.George SLSheppprd, page 3 (O-4571) "'The bgIs1eta.e may olessifythe subjectsof texation, andthese olaosifioationr may, *s they dll, be more or less arbitrary but, wheti the olessifIoatIca! Is made, all nnaet%e eubjeotedtothe papelrtof the tax Imposedwho, wthe existmoe of the foots upon which the ol.assIfioatIon is -tied, fall within It, unleos exemptedunder some other constitutional provision.' "Testedby this rule of law, end sincenone doubt itsoorc 'reotness,the aot under consideration would not be 5.nvulid.All persons, firms, or oorp&atIons who pursuethe businessdefine3are lxrought within Its provisions3 no personpurautlng that businessIs exemptadfrcm the operationof the law, end none who do nut follow that oooupetioaare a~- wuiredto paythetsu. It is levied on all who pursuethat line of lad- nest. RhIle e bnnker,or other money lender,who &es not followtbie ooaupationis not lIPbleto the tax, the vesrymoaaent the bankeror eny other money lendeidoes engagein this occupationhe beoonussubjeotto the tex e.ndallpr.c&.sIcas of the 1~1. We do not think it o oaprioiousolassIfIon- tion;for it seleotsP well-defined&lass,men engagedin I speoifioohar- acter af Lusiness,end plaoes all tithInthis classunderthe operc&ionof tbs l*w." \ We thiakthatemry psrsoa,firm or corporation purmxingthe businessof 'loan Waker" as definedw Seotion2, &-Mole 6l66a,V.A.C.S., is subje& to ths Aot; Ex pprte Extsell,eupra. H&therefore, aaswer youk questionsNos. 1, S md 4 in the affirmative.A perear,PIna or co&- poration;homvur, who purchasesunpaid ohattelmorbgagesonhoueehold furniture,taking ti assIgmbmttof suohmortgage,Is not engagedInthe %andlngofm&aey!! nor~doesheffallnithinaggofthe otherprovIsionsof Article 6166~ V.A.C.S.,~ definingP eloau broker." Consequently, your questionNo. 2 m&t be engirered in the negative.-On the other hand, "lendingmoney" wit&at securitydoes not subjeotone tothetnx provided by said Article 6l66a,beoause that &Mole providesthat he must be em- gaged in lendidgmoxey, end teking oerbeinspoified securityfor the pay- ment oftheloun. Therefore,yazr question5 must also be aneweredin the negative. _ Ue now oonsideryour questionNo. 2. Seoticp181 end 2, Rouse Bill &x678, Acts, 1941, 47th Legislature,codifiedPS Article7947a-20, V.AL.C.S., provider eSeotion1. The Camptzollerof Public Accounts of the State af Te~ae is, from Jpnuprp~l,1942,the effectivedate of this Act, authorIz&.Prdrsquir- ed to collect,and ell persons,fIrme, corporations,or Pssioiationsshall pay to the Cunptrdllerof,FublioAooouxts,all State oooupaticntaxes l&ad upon-&y o&up&ion or basineesby Article7047, RevisedCivil Stat- utes of ~aXas of 1926, end House Bill 514, Acts of 1931, Forty-seoondLeg- islefur&,page.447,Chapter267, end Houoe Bill No. 20, Aots.of1927, FortiethLegislature,page 324, Chapter220, any law or parks of laws to the oontraxynotithstanding. c..: _ &n. George He Sheppard,page 4 (O-4971) *seotIcm 2. The Cmp+.roll~M'PulalioAooouuts shall have the power and mathorifgto make ud publishrules ad regulations,not Inoonsistexb with amy adsting lam or withthe Constitutionof this State or of tla KbiitedStates, for the enforacmentof the proxl.oionsof this Aot mad the oolleoticaof rbmmuen hereunder.* It thereforeappears&at P loan lroksr is subjeotto sm oocu- ppticm tnx (Art. 7047, Sea. 14, 8upra), and that the Comptmller is charged with 5rtscollection,andvdstd with rule-mak5ngpowor la connectionthere- with. It Is our opiniont&t tireCampttolleris authorizedto prumlgate P rule rSquIrIwgloa&lmkers to submit to an Inspectionof their reoords wbeo neoersaryfor the enforosmeatof the subjecttax statutes. Your8-43ly truly ATTORm GENERALOFTEXAS By/s/FowlerRobarta Fmlsr Roberts Assistant AETROVEDAFilIU,lS42 /p/&=-=s All!OBBBY GSEERAL OpinI~ Caamittee ByBIB chailmu