ing, which shall expire on March 1st next after the date of its issuance. Such certificates of authority shall not be issued by such commissioner except upon application there for, signed by the president or secretary of the company, which aplication shall state that the contract between the company and such agent has been made in writing and that a true copy of such contract is attached to and made a part of such application, and that such contract fully shows the entire compensation that such agent is to receive, directly or indirectly, on account of any services to be rendered by him for such company, and no such certificate of authority shall be issued by such commissioner unless it shall be shown that the compensation to be paid such agent, together with all other expenses of any sort likely to be incurred in connection with or attributable to the obtaining of new insurance through such agent, shall not exceed 80 per centum of the expense loading in the premiums to be collected therefor.

SEC. 14. It shall be the duty of the Commissioner of Insurance and Banking to have made at least once in each calendar year a thorough and full examination of the affairs of each co-operative life insurance company, the report of which examination shall be made to such commissioner under oath, which shall be accompanied by a list of all policy holders as shown by the books of the company, together with the post office address of each, and it shall be the duty of the Commissioner of Insurance and Banking, if he shall approve the report of such examination, after having given the officers of the company an opportunity to be heard, to mail a printed copy of such report to each such policy holder. The expense of each such examination and of mailing the copies of such reports to the policy holders shall be borne by the company examined. SEC. 15. If at any time the Commissioner of Insurance and Banking deems it necessary to make an additional examination of any such company, he may do so, and if as a result of any such examination or from other information he shall have the opinion that the operations of the company are unsafe or hazardous to the policy holders' interests or in violation of any law of this State, he shall suspend its certificate of authority, and direct its officers to call a special meeting of its policy holders and direct them to cease the further issuance of policies until such meeting is held. At such meeting of the policy holders, the Commissioner of Insurance and Banking shall present the facts for such action as the policy holders may deem advisable. If in the opinion of the Commissioner of Insurance and Banking such action of the policy holders when taken will not fully protect the interests of all policy holders, he shall apply to the district court of the county in which the home office of the company is situated, or to the judge thereof in vacation, for the appointment of a receiver to take temporary charge of the business and affairs of such company, who shall receive the compensation allowed by law to State bank examiners, and who shall have all power and authority of the board of directors to manage and control the business and affairs of such company, subject to the orders of the district court or judge in vacation, until the reasons for his appointment shall in the opinion of the judge appointing him have been removed. At any time when the liabilities of any such company, computing its reserve liability upon the

American Experience Table of Mortality and 34 per cent interest per annum, shall be in excess of its assets, the company shall cease the issuance of new policies until the impairment in its reserves shall be made good. Whenever the liabilities of any such company, computing its reserve liability upon the American Experience Table of Mortality and 41⁄2 per cent per annum, exceed its assets, the Commissioner of Insurance and Banking may request the Attorney General to file suit in the name of the State in the district court of the county in which such company is located for the appointment of a receiver to wind up its affairs and such action may be maintained. In any such action such district court or judge thereof, in vacation, shall have the power, if in his opinion the interests of the policy holders of such company require it, to enter an order providing for the re-insurance of all outstanding risks of such company in some other life insurance company authorized to do business in this State upon such terms and conditions as may be approved by the Commissioner of Insurance and Banking, and by such court or the judge thereof, in vacation, and such court or judge may for that purpose direct the conveyance of the entire assets of any such company or of any portion thereof to such re-insuring company in consideration of such reinsurance.

SEC. 16. For the purposes of State, county and city taxation the amount of the reserve and contingency reserve of all co-operative life insurance companies shall be treated as debts due by them to their policy holders, and the total value of their property for such purposes shall be ascertained by deducting from the total amount of their gross assets the amount of such reserves and contingency reserves.

SEC. 17. The fact that there is now no law providing for the organization of the companies provided for by this Act and the crowded condition of the calendar constitute an emergency and an imperative public necessity demanding that the Constitutional rule requiring bills to be read on three several days be suspended, and that this Act take effect and be in force from and after its passage, and it is so enacted. Approved April 16, 1909.

Takes effect ninety days after adjournment.

INTOXICATING LIQUORS-REGULATING SALE OF.

H. B. No. 66.]

CHAPTER 17.

An Act to amend Chapter 138 of the Acts of the Thirtieth Legislature, approved April 18, 1907, the same being "An Act to regulate the sale and disposition of spirituous, vinous and malt liquors and medicated bitters capable of producing intoxication, and the places wherein same are sold; imposing an occupation tax upon persons, firms, corporations and association of persons, selling spirituous, vinous or malt liquors or medicated bitters capable of producing intoxication; requiring retail liquor dealers and other persons to secure license to sell such liquors; and defining retail liquor dealers and regulating the business thereof; requiring retail malt dealers and other persons to secure license to sell malt liquors exclusively, capable of producing intoxication; and defining retail malt dealers and regulating the business thereof; exempting wine growers who sell wine of their own production from the provisions of this Act, providing same is not sold to be drunk on the premises where sold, and otherwise regulating of such wine growers; regulating the transfer of license of retail liquor dealers and retail malt dealers; prescribing the conditions of the bonds of such retail dealers and the conditions upon which licenses to such dealers and other persons may be issued; providing for the refund of any unearned portion of any license requiring the county clerk to report all licenses granted to the Comptroller of Public Accounts; providing for the revocation under certain conditions of licenses issued; defining intoxicating liquors, and providing penalties for the violation of the provisions of this Act, and declaring an emergency,” and adding Sections 9a, 9b, 9c, 9d, 9e, 9f, 9g, 9h, 9i, 9j, 10a and 35a, prescribing the method and procedure by which liquor licenses may be obtained, transferred and forfeited, and prescribing the manner for the ascertainment of the facts upon which forfeiture is based and prescribing the duties of the county judge, Comptroller of Public Accounts and the county attorney and other proper officers in regard thereto, and repealing all laws or parts of laws in conflict herewith, requiring licenses to be issued under this Act and prescribing the continuation in force of licenses issued under prior laws for sixty days after this Act takes effect in order to give time for securing licenses under this Act and providing that credit be allowed upon licenses to be obtained under this Act in an amount equal to the unearned portion or part of any existing license, and declaring an emergency.

Be it enacted by the Legislature of the State of Texas:

SECTION 1. That Chapter 138 of the Acts of the Thirtieth Legislature entitled "An Act to regulate the sale and disposition of spirituous, vinous and malt liquors and medicated bitters capable of producing intoxication and the places wherein same are sold; imposing an occupation tax upon persons, firms, corporations and associations of persons, selling spirituous, vinous or malt liquors or medicated bitters capable of producing intoxication; requiring retail liquor dealers and other persons to secure license to sell malt liquors exclusively capable of producing intoxication; and defining retail malt dealers and regulating the business thereof; exempting wine growers who sell wine of their own production from the provisions of this Act, provided same is not sold to be drunk on the premises where sold, and otherwise regulating the business of such wine growers; regulating the transfer of licenses of retail liquor dealers and retail malt dealers; prescribing the conditions of the bonds of such retail liquor dealers and the conditions upon which licenses to such dealers and other persons may be issued; providing for the refund of any unearned portion of any license upon the death of the licensee; requiring the county clerk to report all licenses granted to the Comptroller of Public Accounts; providing for the revocation under cer

tain conditions of licenses issued; defining intoxicating liquors and providing penalties for the violation of the provisions of this Act, and declaring an emergency," be so amended as to hereafter read as follows:

SECTION 1. Hereafter there shall be collected from every person, firm, or association of persons selling spirituous, vinous or malt liquors, or medicated bitters capable of producing intoxication, in this State, not located in any county or subdivision of a county, justice precinct, city or town where local option is in force under the laws of Texas, an annual tax of three hundred and seventy-five ($375) dollars on each separate establishment as follows: For selling such liquors or medicated bitters in quantities of one gallon one gallon or less than one gallon, three hundred and seventy-five ($375) dollars; for selling such liquors or medicated bitters in quantities of one gallon or or more than one gallon, three hundred and seventy-five ($375) dollars; provided that in selling one gallon the same may be made up of different liquors in unbroken packages aggregating not less than one gallon; for selling malt liquors exclusively $62.50; provided, further, that nothing in this Article shall be so construed as to exempt druggists who sell spirituous, vinous or malt liquors, or medicated bitters capable of producing intoxication, on the prescription of a physician or otherwise, from the payment of the tax herein imposed; provided, further, that this Article shall not apply to the sale by druggists of tinetures and drug compounds, in the preparation of which such liquors or medicated bitters are used and sold on the prescription of a physician or otherwise, and which tinctures and compounds are not intoxicating beverages prepared in the evasion of the provisions of this Chapter nor the local option law. The commissioners courts of the several counties in this State shall have the power to levy and collect from every person or association of persons selling spirituous, vinous or malt liquors, or medicated bitters, a tax equal to one-half of the State tax herein levied; and where any such sale is made in any incorporated city or town, such city or town shall have the power to levy and collect a tax upon such sale equal to that levied by the commissioners court of the county in which such city or town is situated, provided, that where any special Charter gives the right to any city to refuse a license for the sale of intoxicating liquors, no license issued on behalf of the State or county shall become operative therein until a license therefor has been issued by such city.

SEC. 2. A retail liquor dealer is a person or firm permitted by law, being licensed under the provisions of this Act, to sell spirituous, vinous and malt liquors, and medicated bitters capable of producing intoxication, in quantities of one gallon or less which may be drunk on the premises. Any person who sells intoxicating liquors in quantities less than one gallon shall be governed by the provisions of this law and be required to take out license hereunder.

SEC. 3. A retail malt dealer is a person or firm permitted by law, being licensed under the provisions of this Act, to sell malt liquors capable of producing intoxication, exclusively in quantities of one gallon or less, which may be drunk on the premises.

SEC. 4. No person shall directly or indirectly sell spirituous or vinous liquors capable of producing intoxication in quantities of one gallon

or less without taking out a license as a retail liquor dealer. Any person who shall violate the provisions of this Section shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not less than $500, nor more than $1,000, and by imprisonment in the county jail for a term not to exceed six months.

SEC. 5. No person shall sell directly or indirectly, malt liquor capable of producing intoxication in quantities of one gallon or less without taking out a license as a retail malt dealer; provided that this Section shall not apply to a retail liquor dealer, and that a retail liquor dealer's license shall be construed to embrace a retail malt dealer's license. Any person who shall violate the provisions of this Section, shall upon conviction thereof, be punished by a fine of not less than two hundred and fifty dollars nor more than five hundred dollars, and by imprisonment in the county jail for a term not exceeding ninety days.

SEC. 6. This Act shall not be so construed as to deny the right of wine growers to sell wine of their own production in any quantity without license; provided that such wine grower shall not permit nor suffer any wine so sold by him to be drunk on his premises; and provided, further, that this Section shall not be so construed as to give any wine grower the right to sell any wine to any minor without the permission of the parent, master or guardian of such minor first had and obtained, or any habitual drunkard, after being notified by any relative of such drunkard not to make such sale, gift or disposition. Every wine grower who shall violate. any of the provisions of this Section shall be deemed guilty of a misdemeanor and, on conviction thereof, shall be punished by a fine of not less than $25 nor more than $100, or by imprisonment in the county jail during a term not to exceed three months, or by both such fine and imprisonment.

SEC. 7. No retail liquor dealer nor retail malt dealer shall carry on said business at more than one place at the same time under the same license, nor shall any such license be voluntarily assigned more than once, but before the assignee of such license can engage in business thereunder he shall comply with the provisions of this Act as required of the original licensee, and provided further, that the sale of such license, whether in the name of the original licensee or assignee, may be made under execution or mortgage, and the purchaser of such license at such sale shall have the right to surrender such license to the State or county which issued the tax receipt which is the basis therefor and shall receive therefor the pro rata unearned portion of such license; provided further, that should said original licensee or his assignee desire to change. the place designated in said license he may do so by applying to the county judge as in case of original application for license as provided in Section 9 of this Act, but it shall not be necessary to furnish another certificate from the Comptroller of Public Accounts.

SEC. 8. Any person or firm having a license as a retail liquor dealer or a retail malt dealer who shall violate any of the provisions of this Act, or the provisions or conditions of the liquor dealer's bond required by this Act to be given by such person or firm, shall forfeit his or their license as a retail liquor dealer or retail malt dealer, as the case may be; and if affidavit is filed by any property tax paying citizen in the office of