71 So. 955 | La. | 1916
Lead Opinion
Plaintiff, a fire insurance company organized under the laws of Missouri, has enjoined the secretary of state from enforcing as against it Act 295, p. 603, of 1914, entitled
“An act to declare and define the conditions upon which foreign fire insurance companies, corporations or associations doing business in this state may engage and carry on business in this state and to provide for the distribution of funds arising from the eomxfiiance with this act.”
Plaintiff alleges that it has complied with all the conditions heretofore imposed by the laws of this state upon foreign fire insurance companies for being allowed to do business in this state, and has heretofore been, and now is, engaged in doing business in this state, and desires to continue, but that the Legislature of this state has passed said act, and that the same is null, as violative of the following articles of the Constitution of this state: Article 31 requiring the object of every act to be expressed in its title; articles 224 and 227, providing that the Legislature can itself directly exercise the taxing power only for state purposes; article 58, providing that the funds, credit, property, and things of value of the state shall not be loaned, pledged, or granted to or for any person or persons, association, or corporation, public or private; article 45, providing that no money shall be drawn from the treasury except in pursuance of specific appropriation made by law, and no appropriation of money shall be made for a longer term than two years; articles 55 and 56, providing that all appropriations other than those made by the general appropriation bill shall be made by separate bills, which must embrace but one subject, each appropriation to be for a specific purpose; article 57, providing that no appropriation of money shall be made in the last five days of the session, or shall be valid unless the act making it is signed by the presiding officers of the two houses full five days before final adjournment; article 53, providing that no money shall be taken from the xjublic treasury nor any appropriation made for private, charitable, or benevolent purposes to any person or community; and, finally, article 166, providing that no ex post facto law, nor any law impairing the obligation of contracts, shall be passed, nor vested rights be divested unless for purposes of public utility, and for adequate compensation previously made.
We give in the margin the allegation of the petition as to what is the substance of the act.
But the amount thus collected belongs to the state, it is said, and the state is prohibited from giving to the municipalities any of her moneys or things of value. ■
“The principle that the right of a foreign corporation to engage in business within a state other than that of its creation depends solely upon the will of such other state has been long settled.”
In Connecticut Mutual Life Ins. Co. v. Spratley, 172 U. S. 621, 19 Sup. Ct. 308, 43 L. Ed. 575, the court said:
“Each subsequent Legislature has equal power to legislate upon the same subject. The Legislature has at any time the power to repeal or modify the act granting such permission, making proper provision when necessary in regard to the rights of property of the company already acquired, and protecting such rights from any illegal interference or injury.”
In Harrison v. St. Louis, 232 U. S. 318, 34 Sup. Ct. 333, 58 L. Ed. 621, L. R. A. 1915F, 1187, where a railroad already established in a state was sought to be excluded, and the cases of Doyle v. Continental Ins. Co., 94 U. S. 535, 24 L. Ed. 148, and Security Life Ins. Co. v. Prewitt, 202 U. S. 248, 26 Sup. Ct. 619, 50 L. Ed. 1014, 6 Ann. Cas. 317, .were invoked as authority, the court distinguished those cases, saying:
“Those cases involved state legislation as to a subject over which there was complete state authority, that is, the exclusion from the state of a corporation which was so organized that it had no authority to do anything; but a purely intrastate business, and the decisions rested upon the want of power to deprive a state of its right to deal with a subject which was in its complete control, even though an unlawful motive might have impelled the state to exert its lawful power.”
This title might have been made more full and explicit by mentioning what were the conditions the act was designed to impose, instead of merely stating in general terms that the object was “to declare and define”
The judgment appealed from is therefore set aside; the injunction herein is dissolved, and this suit is dismissed at the cost of plaintiff in both courts.
Section 1. That no fire insurance company not incorporated by the laws of this state; shall carry on any fire insurance business in this state save and except upon the conditions imposed in and by the said act as well as all other provisions now or hereafter imposed by law.
Sec. 2. That every fire insurance company, organized under the laws of any other state, or of any foreign government, desiring to engage in or carry on fire insurance business in this state, shall return to the secretary of state an account verified by oath of all premiums received from fire insurance business during the preceding year in any incorporated town, city or village in this state having, or that may have a regularly organized fire department under the control of the mayor and council, or other constituted authority and having in serviceable condition for fire duty, fire apparatus and necessary equipment belonging thereto to the value of
And the said section 2 also provides that:
“Such returns must be made by said companies, corporations or associations within sixty days after the promulgation of this act and thereafter within sixty days after the thirty-first day of December of each year.”
Sec. 3. That every such fire insurance company shall, within the above-mentioned respective periods of sixty days after the approval of the act or after December 31st, or each year, pay to the state treasurer, “the sum of $1 upon the $100, and at that rate upon the amount of all premiums written on fire insurance within the limits of such incorporated cities, towns or villages” hereinabove referred to during the preceding year.
Sec. 4. That every such company shall keep accurate books of all business done by it upon fire insurance within the limits of such cities, towns and villages and it is made the duty of the secretary of state to investigate such returns, if he has reason to suspect any irregularity, fraud or dishonesty.
Sec. 5. That upon the failure or neglect of any company affected by the terms of the act to keep such books or to report and pay over any of the money due on premiums at the time and in the manner specified in the preceding sections, or who shall make a false return of business, shall for each offense forfeit the sum of five hundred & 00/100 ($500.00) dollars to be applied to the purposes prescribed in the act.
Sec. 6. That in default of the payment of the tax or a failure to pay or satisfy any forfeiture adjudged to be due by the provisions of the act, the secretary of state is directed to revoke the license of such defaulting company to do business' in this state and after such revocation it shall be unlawful for such company to do business in this state, though the secretary of state is authorized to renew or revive the authority to do business in this state upon tbe subsequent compliance with the terms of the act.
Sec. 7. The provisions of section 7 are in full as follows, to wit:
“That the state treasurer shall pay over to the treasurer of the cities, towns, or villages having or that may hereafter have a regular-organized fire department, as aforesaid in section 2 of this act, the full and respective amounts collected upon the premiums on business done in each of said cities, towns or villages, respectively, from the foreign insurance companies, corporations or associations doing business therein. Provided, that the moneys so paid over to and received by the said cities, towns or villages shall be by them respectively set apart and used solely and entirely for the objects and purposes of this act.”
Sec. 8. The provisions of section 8 are in full as follows, to wit:
* That all money so collected and received under the provisions of this act by the treasurer of any incorporated city or town or village, shall within thirty days from the time said moneys are received as aforesaid be paid over by said treasurer to the secretary treasurer, treasurer, or other fiscal representatives of the organized fire department, of said city, town or village. Provided, that all such moneys derived under the provisions of this act shall be used for the purpose of rendering more efficient and efficacious the fire department of said city, town or village as the board of commissioners, fire board or other governing body of said department shall see fit and direct, and for no other purpose whatsoever.”
Rehearing
On Rehearing.
The opinion and judgment heretofore handed down herein are reinstated and made the judgment of this court.