Untitled Texas Attorney General Opinion ( 1939 )

OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN Honorable W. Clinton Oweley, Direotor /" IMa Utilitiw Divj#lon RallmaQ Oonmbrloa of Tsar Aaatia, Paas~ Dear Sir! Honorable 'E'. Clinton Guslay, page 2 The statute not only makes no distinction between private and public corporations, but section 3 of the Act specifically includes vmunicipal* aorpora- tions. %ere public corporations under the general law am In pursuit of proprietsry, rather than governmental, enterprises, they are subject to the linbilitiee of private enteryises in such instances. It is our oplrion that they should be required to take out licenses, in- asmuch as the operation of a butane gas systea is not goverll5wlta1in nature. City of Ysleta v. Babbitt, 28 S. I?.702; CitY,o< ~WiahitaFalls v. Llpsoom~,,~O8. P. (2a) 867.;error ratPssd; Citp.of ``~illo V. fmah l 267 S.'E. 702 (Tel. Con. App.) Honorable 7:.Clinton Cwsley. page 3 KIlthe absende of the federal government having assumed jurisdiction over such matters, it is our opinion that a state may impose all reasonable and non-discriminatory regulations upon such commerce as may be necessary or rise in pursuanoe of the police powers of this state. The Supreme Court of the United States, in the case of Sligh v. Kirkwood, 237 0. S. 52, has held that there may be legitimate action by tie state in the matter of local police regulation over interstate oonmerce, which the atate may take, until Congress exarcises Its exoluslve end supreme authority upon ,thesubject. The saw court in the ode of.Tsxas,Caopanyv. Brown, 258 U./a. 4&j,, hald tb8t.a 8tqta.is nlthl+ifs gwa~eata+awars in roqa*ing lnapsa~osi~ inoluding tasts asito quality, a8 a rafa&ua+ with.rampsot to ~inilammabla aabstsnoas,~sueh ;whan fow!ul within it8 bord*ti, as petrolean ptodtiozofs; or even *en aoting.:h~eomaroa trm &tat* to'cstati ‘(th6rebeing ~fie:&igfrlationb``Oongrs8~ upon ‘thewb- (4) lad :.lsw jloeanot.pwport, to pre~sarlb6 tha ,mmber of,est+b+hments vhioh wr,,be ~paratad by tipersoni firm or ,oorpomtioh.lurder.a;~,ib~,e'to en- gags'in ~a pbase'~stthe liqaafiad' ral.4+ gas ~‘iadustry. Tba:aatter or ~ths:hbar of @stab, E hammtS~. t&r the aon- 4amt or~sach basimsa is sntire~y~dGwetioiuary rfth the llo~sea. d&patte &Itln, 28 Tti.,Ap~..:30~, 13 8. w. 10. It msK not appear to be ilisirab~e``that t&lb shouldbs 60; bmt thq lam aunt be eHaro+d~&aaor~ing`` to ita tams, and iqterprstatloa ani% ooiWz&otloxi man- not be slllowed'tosclme ths,,funotionof~iegislatlon. Under the law a6 prsseatl``dra~, we ata OOaStIdn~ to answer your fourth qu6stion theit a.llmmse to engag+ In a phase of the liquefied-petrolear~ gae'industry ~I11 8617Qas authority for'the oondmat of saoh phascy of the bnaineaa in as many places or establishments Honorable W. Clinton Owsley, page 4 as he, they or it may desire. However, a license to en- ! gage in only one phase of the business will not serve ’ as authority to conduct a separate and distinct phase, even at the same establishment. The act seem, in sea- tlons 2b (1)) (2) and (J), to contemplate the separate licensing of distinat phases of the industry, such as manuracturlng of equipment on the one hand, and tha trans- portation of the gas on the other. SO a lleense to emgage in the manufacture of equipment will not serve as author- ity i'or engaging in the transportation or the gas to be used in the equipnant. (5). Tour fifth question presente:a diftment situat$on ira that preemntod In m f cnuth. A oorpora- tlon may operatewider au aasumad name. Artlola not 1069, Panal God.. Ia 0111: ~opinion,the oonduot or the bwSaese of thenJ; AS. .SarburatorCaptpaay,' thereion, ia.mot to be regardod~es'anoth;halrtablisbient.aaintcrinod by the ~-68 Isoh~ual~hb6rat~e,~isao,;ana:t``ori authorized 4UidO.T+hk' lisa~e``irrbtu~d-o``ths ;oorporntio& but i8 to -bs:r~,qWsd. Deba,baalsea~o~ndtloted~by tl16:da; dlvldual maarbers :,and-~atoekholdern;~ea an aaroelatlo&.``fr gro therefore of %h*~:opf;nion. that~though the I',,lbS*',,';T fJarbor&or Coiapeaf~Laybe awag@ la .the'.samep&ao'@``'L ~the``llqiwicded peW&omm gar indQs.trrae the Pena Ns4&&@-- iqxl Laboratorisai,‘, Uo. ; the Uaanna: to ,angagain &a’. hase or the ~bnsineasissued to the Taxa. YeChagiodt_: ,:- &boratories , Inc.; dll not 1raPreto the bansfit of the J. h 5. CarburetorWapany. (6)' ID reqtnute to your que,stfon``o.'6, it ia our brliai.Shit all retiae.riel,:Pa~aptaring lfquafiod petrotaam gases rr.raqulrot bl ~thiatatmto to obtain a 1104~8 aad p at bead. In eoaaeatlonwith their operations In refi.+ and selling .thd~prod-t to pi’;6line,o~panles , the $ .haeia neaesse%rily. dertaln equipment neoeesaly'for the 'purposeof loadin&the gas into gaatrncks end delivering it'into gaaplpe lines. undoubtedly, that portion or Seotlon 2b 42)``or~Houae Bill 792, requir~ng.,lfoenaeaon the 'partoi those an- gaRed *in the bks+aass of transporting 'or disrmnsiq -liquefied petroleti gases and/or ‘thesale and/or ln- etallation ol'any apparatus ror the storage and/or dis-. pensfng or liquefied petroleum gas" oovdm their opera- tions. They are engaged in dlapensing lfqueried petioleum gas. They are engaged in the sale of souh Honorable Y. Clinton Owala~, paga 5~ gaa .and a risk ihcident to auoh operation is,&uilm, it not ldentioal, with those that'are~incide,nt',tc-the actual transportation of.gas ovqr hfghwsys. The wol'd wdlapenaing~ aa,uaed in the Aot, indapdndent of or in connection with the word aaela~.undoubtedlf',,inoludes the functions of dallverlng gaa into a pipe line or of dalivering gae Into a truok tank or tank car. 19, 1940 .BY