Case Information

*1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS

AUSTIN

Honorable H:. D. Bradflold

Chairman, Texas Liquor Control Boar&

Southern Methodist University Dallas, Taxes

puor Control Act 9 impoeod l&pon , ror instanoer inspoet* Mb regulate 8s of manufaoturlng, tranrportation, stor- ror the pur- 0n,'pome~~ion d posses8lon of all alooholio ding thr adrsttlsing and labrl- all raspsots aooerrsry to aooap- osos of this Aot. TAO Board ir with power and authority to pro- eoribe all neoemsry rules and regulationa to that endt to m&m the filing of suoh reports and other data by all poreone enga& in any phase of the elcoholio beverage business, which *2 Etmambla W. 1). Bradfisld - psgs I:

it BE{ do o r asoo88sry 80 l ooayllsh tha puyy:m- to supervlss and rsgulets a 1 or th 4 Aott BBS as4 pelritk8s an4 thsir ple088 bu81n848 in ell mttors atisOtin( the goneral pub110 mOntlono4 or noi, aad whothr bnin ~p0irh.n~ to l uthOrlss its l gra&b, servants, sn4 em lorcts uudsr its dlrrotion to oarry out the pr OJ hueor.

'(b). To went, rsfusa, suspan4, or oanosl pormit4 or liconsss for the par0h~84, transporta- tion, kaportstion, sals or msnufsotura or alao- holio bsrsrsgos or othttr permits in mgerd thon- to.

"(0). To inrostigats and aid in ths prom- or riOlatiOn4 of this Aot and othsr Aots oution rslatlng to elooholio bsvsragss, to maM sef,s~r~s l looholio bsvaraps manuraotuna, sold, kept, Imported, .or trensportsd in oontrarsntlon hsrsot, end apply ror the oontisoatlon th4m0r uhsmrmr =cpliria by this A&, ~4 oo-opsrate in the prs- ssoution 0r orrsnasrs bororo any Court or oampo- tsnt jurisdiction.

"(4). To ueroiss sll other powors, duties, and funotions oonforrod b this Aot, and all )o1- or4 lnol44at4l, conrenisn , or n60444ery to sn- i

abls It to 04minf.t.r or oarv out any or ths of this kot and to publish all nsoes- provisions sary rule. and rsguletlons. w(o). In th. wont the Unit.4 Stat08 CoTsa- msnt shall provide any plsn or moth.4 whereby ths on liquor shall bo oollsotsd at ths souroo tuss ths Boar4 shall have ths right to sntsr into any and sll oontreote end oomply with the rsgulatlons, even to the extent or partially or who117 abrogat- ing any provisions hereof whioh mey be In ooailiot dth Fsdsral iew or ngulations to ths snd that th. Bosr4 shkll raoslrs th. portion th8r.ot allo- 6atod to the Stat. of Tsxss, and to distribute th6 sams as In this i4ot is proviasd+

w(r). To requfrs by rule and rsgulation thst any liquor sold in this Stat8 shall oonior~ in all mspaot.8 to the edrortisod quality of such Pro4uotsi *3 Honorable W. D. Bredll.14, - Pegs 3

to promulgate rules and r4guletlon4 governing lebellillg end sdrsrtlslng of all liquor4 in strlot aocordanos with the lsbslllng and aa- vortlslng regulations or the Fsdsral Alcohol Administrations to adopt and snroroo e standard 0r quality, purity, and identity aU eloo- hollc bsverege., end to prornulget. all suoh rule. end regulation. a6 shall be 4e.m.4 nsoos- sery to fully sarsguerd th. public health and to ineuro eenitery condition. In the manure&U- lng, rerlnlng, blending, mixing, purlrylng,~. bottling, end rsbottllng or any eloohollo bsrsr- 'age end the sale the-or.

(g). To lloense, regulate, and oontrol th. ure or eloohol end liquor ior solentlflo, phermeosutloal, ena lnaustrlel purposss, and to provia for tbm withdrawal thsreor iron warshouess end denaturing plants by regulation, snd to prescribe the mannsr fn whioh the .m mey be used for solsntlrlo. rsssaroh or in hos- pitals and in sanatorla, in industrial plants, and ror othsr menuraoturlng purposes, tax-INS."

Art. 666 600. 6, Tsxes Liquor Control

~r,"iGt. 1, sso: 6).

You point Gut -- oiting ssterel ln4tanoos -- "that perhaps the most important 4utl.s lm osed u on ths iaLl4 Boer4 am oonourrently imposed upon both t E a Boer the A4minlsttator .”

You further stat&r

*The Liquor Control Boor4 * * + et its msstlng on Ssptembsr 1, 19S7, adopted what 18 known es Rule and Eeguletion No. 3-A. whioh read. as rollowsr

?*In addition to th. spsolrlo powors and dutier a.l.geted to ths AdminiBtrator’by the Texas Liquor Control Aot by any rule8 apd rogulatlons or the Board, the Administrator of the 'Boar4 1. herabr and 1. herswith g1r.n sxolusivo jurisdiotion betha following met- tars:

"'1. Appointing and omplo~ing olerks, stenographers, in@motors, ohsmlst., end am- *4 Honorable W; D. Braafield - page 4

p10ye.4, an4 fixing their autioe ana selarl.4.

” ‘2. Comde4lon faepeotors, repressnta- tires, ana enpi0y006. 7(b), Art. I.)

” ‘3. Granting tia'rsntsiag psrmlt. aa llo4n.es, end all other msttsr. in 0onnsotlon with bearing thsrson. ($00. ll, Art. I, Md Sea. 8 and 7 (a), Art. II.)

= ‘4. Csn0ollation -4 suspsnslon 0r psr- mits -4 U04~es, and all qtters in connsot- ion with hsaring. thsrson. ($00. 12, Art. I, and 5.0. 19, Art. II.)

W'5. To designate mmbors or th. Board or representatlrss thsrsof to hold h.srlng. as pro- r14.4 by law. (sea. 12 (a) (a), Art. I.)

ale. Certifying to the suthsntlolty of sll gub;loatlons, rulrs snd noor4ss notless, orders, al.1 other aooumnts rsoor I) and reports in peso- slon or the Board. 1S.a. 12 [a) (61, Art. I.) or, and all mattore in N’7. Inre4tigation oonneotlonwlth alleg. rlolation. of liiw by out of state wholssalers, browom, distillers, winrr- -4 agents, sonants -4 em- ies, menufaoturors ploy.o. of the ssme. (5.0. 27 (b), Art. I.) "'8. Edaking rooomeen4atlons as to pleas of gul1ty, ($40. 26, Art. II.) or septambor,

wr00ti~. this thr lst A. D. 1937. (See Seo. zt(a) Art. I.)

TEU8 LIQIJCR CONTROL~BOABD." Whotbmor not the provl0ioM ai thO8tate squr Conk01 Aof?.aboie reform4 to are oa%itUtbMlly

.

Whsther or not tbo 1~108 -4 regulatlon8 of the Board %x4 msntionsa srs rrrlld and bind.W.

3. R'lnblng that the prtd810M of th. Act md #LO

Honorable W. D. Bredf!.eld - page 5

rulee or regulations are valid, what are the respective powers end duties or the Boar4 end the A4minlstrator un- der the proper construction of Suoh statutes and resolu- tions?

4. Whether or not it is within the lawful power of the Board to amend, alter or repeal its rules and regu- lations theretofore adopted so es to lessen the powers of the Administrator end increase the powers of the Board,

5. Finding that the Board has the power so es to amend, alter or repeal its rules, then what etfsst would such amendment, alteration or repeal of its rules end regulations have upon the prior eots or the AdminiS- trator under suoh resolutions or r&lee extending exolu- slve power?

We beg to advise: our rirst question llee

1. At the $hrsshold of the oonslderatlon of the oonstltut onal power ot tho Legls- f

leture to delegate its legislntlvs funotion to an adminf~- tratlve body. By constitutional mandate no one of the de- partments of the government msy enoroaoh upon the powers rightfully belonging to another drpartmaat. That is to sey, the,Leglslatur8,may not perform the purely judlolal f'uns- tion, nor may It perrorm purely 8ssautlvs tunotlons. Liks- wise, the courts haven no power to perform purely leglsla- tlve functions, nor may they perrorm purely exeoutlve f'uno- tlons. For preolsely the same reasons the exeoutlvs ofil- 0836 may not perrorm any ru0ti0n that is efther purely legisletlvs or purely judlolal. I have us84 in this oon- neotion the word mpurrlyW ln defining ths exoluslve powsrs of the department, and have done so advisedly. It Is a mat- ter of praotioal lmpossiblllty for either of the depart- ments to funotlon without in scmo mee6ure performing some acts that partake, in a measure, of the functions and pow- ers of another department of the government. In this busy day of onmplex aftalrs it is preotloally impossible for an edminlstretlve.or executive orfioer to perform his neOeS- sary duties without at the same time, in some measure, per- forming some incidental runcrtlons that under other oiroum- stances would belong to the judlolel or leglsletlv8 depart- ment of the gover.zcent. Such lnol38ntal pow&r6 are trsquent- ly referred to as bei& "quasi judicial,* or "quasi 18gisla- tlve." The exerolse of suoh quasi powers do not render the a8t of the executive or edmlnlstretlvs officer void, 854 are not forbidden by the constitutional prohibition above refer-

&mrabls W. 3. Rradfleld - Pa&s g _. _

red to. It 18 only whore the exeoutivs or admlnSstrntSv8 oftloor psrfoxma 8 funotlon or power th t le purely that belonglng to another dspnrtmut thq govermbnt, that of it 1s iorbibdsn. th8 bgs8lature hM Appr this fol.lSws that it the pousr to delbgste to an l dqlnl8tratlrs orflosr any power or ths authority to prrr0zti an r~0tii0a thrt ia or 9ursly jud ala1 in its mturs. f not pursly leglslatl?s

Ths 6bnsral ruls upon this subjsot of delugated 8ufflOilKlt)gdSfliwS ~X’18’thStWhS~ #SLSgiShtUXS d outllnrs its lntsntloas m as to evldenos k ~f%&~liO~ or d8ohntlon O! th8 law* svon though in genbr tams, lt say thsrsupm dslsgata to sn l dmlnlstrstlvs o rflosr board ths nsas8sary au8 proper powerto& those thln2&8thsta~l oalmlatsdtoosrry out the loglslatlr* poLioy or plsn. In other werds, it weuthorles anotliorto #a ply thsdstalls to &srwrlc- abk ths lsgislativu aOih iph 18 lslportant t$mrnaMtel unusual n&lo8 end oonsldsratloa pwstlsn has roodtea wlthla th0 last fsw ysars. tT8 alto thb 0sL40 or Penaw Iiaflnlns Co. et al, ve rtJrpn et 81 (U. 8.) 79,Law Pd. 446 and the ~sry full enwtatloee to ths subjsat, round in f& A. & R* l.464, and 95 A. L, R. lS94. A p1A.ng the lnOlpls8 ws have rererred to, lt that the authority oop-

18 ths 091 x2 on or this spmrtmsnt r rerrsd by ths Lsglalaturs upon ths Baird In the ssotlon and subssotlon herOlnaboro sot out, lo a valid exsral88 of tha 18glslstlYs powor nad ~ssts in the Board tb8 authar- lty to do ths this@ thOrsin mentloaed.

Question No. 1, thrraioro, should be ammeroQ "yes". .

Beotlon U(a) sub6lvlslon (6) ot AZ%. 1 of ths Aat (I&, Art. 606) dsolarbsr -

*It shall be the duty of ths bard by its rubs and mguletlone entsr86 ~upon lt# printed mlnutos to lmmadhtsl~ speolfy the dutibs and powore or the AdminLoWator. In all in8tein0~8 whamby ptovlrlon8 this Adt, ommurrsnt ,ww- ers and dutlas are litposod upoa th0 lkmrd and Mnrinistrator, tb Ward shall deafgnatu suoh = powST8 St&d dUt:bS WhlOh it dSl8 tS8 t0 thb Ad- All orders, de01 Sk? one* and'Jud6- ednlstrator.

Honorable W. D. Bradiield - page 7

m4nt4 entered and rendered by the Administra- tar in matters upon whloh he hab been empower- ed to aot shall not be subject to a h"&h"' x-e- Vl4W, or r4.~vision by the Board. All0 or aoXiOurr4nt pOW4rS and duties which are Mt speoiiloally delegated to the Administrator by the Board's order shall be considered as retained by the Board ltselt and all orders, deci4ions, and judgments rendered and enter- ed by the Board shall not be subjeot to OhaU8, review, or revision by the Administra- tor."

There is thus given express authority to the Board to authorize its Atilstrator to perrorm m all those functions that have been given and

conauxren ly t to the Board and the Administrator by the terms of the mt. The delegated authority to the Board itself 1s no more binding than is the sub-delegation or the same author- ity by the Board to the Admlnlstrator. Your question NO. 2, thererore, should be answered "YBB.~

3. The statutes above quoted and the rules or resolutions above set forth are, WC, think, suffiolently lnrormatire within themselves to answer your inquiry Bo. 3.

4. The authority oonierred upon the Board to delegate oertain the Administrator Is no more than t

orations o perform their will. The

? the Ohlef ofiloer of the Boar0 to whom may be 64lbgstOd the speoliled powers and authority to represeat th4 Board.

There is nothing ln the statute to indloatb the intention that thla power or the Board 1s one ior a mom4nt to be exhausted in its initial 4x4rols4. On the contrary, there 14 every reason to b4llere th4 leglrlatiP4 intent&on was that suoh power is an abiding power to b4 4x4rals4~a"- 00rdlag to the sound orrlolal dlsoretlon Oi the Board. To er or authority oi the Board eq!ire* with hold that this ita first exerpo 88 would be to give a strlat aommotlon r to the etatutes; whereas, the 8tatutorY rule u that 411 statutes are to be given a liberal OnnstruOtionwlth t&e 0f accomplishing the deeigned purposes thereof. f&es- V~SW tion NO. 4, therefore, should be answered in the affwe- tive.

Honorable W. D. Bradfield - pge 8

5. It id erprbssly protided in @Ub?mOtlon (e),

abwe quoted, thatr

"All orders, d4olelone end judgments en- tered and rendered by the Administrator in matters upon which he has been empowered to sot, shell not be eubjeot to ohaage, review, or revielon by the Board."

Compl4m4ntary, it 1s provided rurthert "Al.1 other conourrent powers csd duties whloh are not 8peOlfioally delegated to the Admimietrator by the Board's ardor shall be coAsldbr4d as retalnsd by the Board itselZ, and all orders, doclslons and judgments ren- dOred end entered~by thb Board shall not be sub sot to hxnge, rwlsw or rsvlslon by ths AdmLstrator.w bo soon that the rrvisw by l p p bel from ay It will

order or d801810n must bs t?onthb deolsio~~ or the Admlnl8- trator, or iromthe Board aoeordlng as the Admlnlstrator or the Boardhas the power jurlsdlotlon to make the ardor or deolslon in quastlon. Nblthsr the Administrator nor thb Board can amend, mdiry or in any wise art asidb sn order or deolslon or the other in any event. Xorswer, it is Qubtiul if U&4 Adminirrtrator aan hLpyl8l.i emend, SiltOr, or in any wise ubt aside or raeate, an order or deoision mad8 by hia where rights or other persona have beaome flrsd there- under, ror no pro~lsion is made ror a rehearing rith~respet to eueh motters~ the rem being by's diFbOt appbdl, ss I, Sea. 14, P.C. Art. 666 proridbd by the statutes. 840. 14). The seme thing may be said with respeotto the Board's power, or rather, laok of power, with res amendlng, modlfylng vacating or In any,-4 lmpa ring it8 sat to

1 own orders or decls~one where rights o? others h4Yb b40~4 vested rlxed thereunder. '&Is ls the doctrine of the Suprow Comt announoed in the case of Laidlow BrOS. vs. lddrs, State Superintendent of PublloSInstruotlon, 87s 8. W. This answers your q$estion No. .

.

The foregoing represents the considered Opiaion *9 Eonombl4 it. Di'aadfleld - ~4 9

119. NmJa 0018 Bpssr Adstult AImmnD DRC 8, 19a9

(Elgned) obreld c. Mann

ATTORRRYOlhTgRALOFTXAS