OFFICE OF THE ACCORNEY OENERAL OF TEXAS
AUSTIN
580
Honorable Ceor;e 8, Sheppard, Page 2
Stnte tas OS $1030.00 on &igmtnt
hgents and ln addition thereto, said
hrtlcle io~oaas 0 &ate tar in er.ah
oounty ohere such Eaai~teat hgmt
mintnina 8x oirfcs based 511 ,pqu-
lation in the f6llOW13~ cuXoutltst
*Counties under 100,OOG ?opsletiun :QiIO.tiO
100,0ci0 to !z00,009 ~0~~l~tlon $?GO.SS
c~I:*mti,es over %O,ooO popililatlGn ~3JO.00
"'ms tara *?ibQraut k~ont" QD
uesd hszeia mmna the buriness
of %:rins, sntloin~, or oolfclt-
ins latorsrs in tcie state $0
be agioyed heycmtl the lirlts
Of t!ilS GtZtO -%ld iS elf30 aeailt
to iualUdS every p.er'6on* rir3,
-prtti*rnhfp, oor,wrntha or
easoaiation of perrcns mfntati-
ing an oMla6 to him, entice,
or adicit laborers to 38 eni-
gloyed beyond tha li;aite of tda
state; rznd is olao maent to in-
dude fp5~ person aho, ati ~lzl
indbpendent oontmotor or otbor-
wise t3an as an ayfsit oi a duly
Uccurrad ezi~;nnt went proouma,
or unC4rtGsso to proourm, or
assist in proourin~ laborsrr
an m&rant
r0r s.gm.; a2.b
avory aiil&rMt e<.ent am11 be
terms6 afid held to be doing
buslmsa ES auoh ia eaot md
every county wherein he, in pm-
8311 or thou&i un qent, hiras,
snt 1GO&, or solloite auy laborer
to he miployed &eyond the li&ts.
or the State.*
‘The abova tttx is oolleoted by the County
TCX heeessor-Collootot.5 of trcyi OOU&.Y.
581
Honoeabl4 04mg4 B. 3heppsld, Pa&o 31
nom4 a State lleurs4fron the C&B-
4lo54r of bbor, the tee ol rhiah ib
~10.00 anaufil4. migrant Agient la
this hat io defLao4 aa followa~
**WI t4n la&ra5t a.gmt* 48
ared fil thir Aat nwens every arr-
soa, firm, aorprstion or aem-
alstlan of persons ragaged 13
th4 buslnear of hiring, ontlo-
In&, a- soll.lerltl~laboran in
thlr State to bo axployed be-
yond th4 ltit.8 or tbla stat4
and 18 alae menat to loshd*
wary peraen, fin, partn4rrhlp,
64rporation or assoolatlon of
pw8ons rPkintalal5a an orflcr
to htre, entier, 61r l ollalt
laborax% to b4 4m;rlsye&be-
yond ths 11sitr of tml states
end I* .tiaomeant to inaludo
everfpereon who, a8 an indr
pendant aontraaetoror athem
win than es an-asnt of a duly
U445.44d ad-at ageat pro-
4ur4bl oru8dertekuc.bpro-
au-o, oraoaist ia ~roourina
laborbra for a5 llg r a ang45t;
t
u nUo r o raya lg r l
a&snt
nt 4hall
be teratadand held to be doi-
bwiiit4s444 mah In dash jnd
ltg r y
o euntp a lmr o l5
ho ,I5
person, or through a5 aaant,
hlrrs, sntlooe or aolialts ally
labororto ba wngloyed bsyona
th.4 lhdt8 of tl;e State.*
nArtlele 6310, V. A. C. S., prorid4sthat
etery kploy~4nt Agent shall proour* a
State llaeaasetram tha Coamlsolon4r of
Labor for ssoh aounty wham a5 aa,phg-
meat orme 18 to be umlnt.mlnd by an
Bllapi0y~05t agsPit,th4 annucil f44 0r aoh
la $lSO;OO per 4ou5ty. ihploymatJ@mt
18 u4tln44 sa followrr
lVha term *Baplopat
Agea??
m4ane 494ry partner-
p4rae5. firm,
4hip or ae8ooiatlon of parson8
582
Bonorabl4 Osortw EL Sheppard, Pag4 4
45(pg4d la the btu3in484 of
lf5aiutlzig omploy4ru to 040~~0
a mp lo y w a 54 p er f+o o ato la u r a
~ploymrmt, or of aellaating
id0twd0a r4gardlng4mplo~-
emls*klng 4i4ploy40,and par-
mna lMclag 8llQloyaent.'
*I5 osrtiln aroau of She 8tsts. prixolpelly Sea
Antonloand other areas with a IargS sdoxloen
pop
ulat105, lnlpl at a$o501~ hare beea eatebllsh-
edwho8u prlao "i" pel bualnaealrthatoS eniaxlgrant
Agent a8 dofi54d Lo Artlale 7047, subdfvldaa 40
but who,also eagrge in ths bu4la4e4 OS ao4Lstfng
genons to maure employsantla Texas rhloh brlnga
thrp within thr pzrorldool OS Artlale 5208, Y. A.
0. 8.. aa Bnploymmt Agent.
*The State Labor OonuPiselon4r ha8 ls1ue6 1104na44
to auuh pumon~'a~ Zmployawat Agasw and aollbat-
ata a5 amual &.ato lit4546 t4e.or WQ.00 for 4aoh
ouunty 0r opsr4tloa und4r Article S2lO.
.*In 8dcUtlon tha Labor Cofmissloner hee l~ru4d a
lloenps to tha aam0 4~~054 or a;axaieclas EEli-
4Rt6 Md QOl P 4Qt4d all 55CUfll BtatO li64584
ee ai3 10.00 far saattaowty of ag*mtion under
$-t
brtlclo JPOla-1.
‘XOW the CotMy Taz hsaeo!%orCOll4Otir of aQt3h
oounty of opsratlon.has d4zsamlad ,*ys#nt of the
tax in thaaimoantof WOO.00 (or the other
p%lwted asuiuat8 lspcvisd oa nub-offioarJ from
the 4saq person4 or r?,.:ez~oler~
fcr operatingas
&lgrmt &sata under Artisle ?347, SubClrielon
40, B. A. C. 6.
“Ths ~usstlcma er4 thsrsiore a4 follower
*1.. Whoa an a,way ogarrter in T-4
aa an ZPaf($mat Apnt hlrlns and 4ollalt-
leg laborer8 In thl4 Stnte tor smploy-
Q45t b4yo56 the liillits of the &tat9
and at th4 4aw t&m opsrrtt44 a4 aa
Btiploymmt Agbzit engy~ad 13. absfstlng
psreone to 8ecuz-e employzb4ot 14 the
State or aployar8 to 88cur~ en~loprsrr.
la the Stste, will auah a;i4aoy-be
rep-dr4d to pay all thra4 llaene4 end
tax fee0 prasorlbad by Artlole 7047,
LWZla-1 mid 3210, V. A. e. S?
583
IIonorable Oaor;;e 3. sbsmiird, ?%8% S
“8. fl an agenoy operate6 in Texat
a8 815 klgraati Agant hlriag and 601
llo~ting laborera in Texas for %I$- .
ploymon8 bqmd the lluits af the
6tata and doer not assist %mployws
lxl sotiuring satploprent in Texns %r
nsrid employers in TOXM in esour-
ing aapLot.w8, ~111 au%h agen6y ba
required to psy all thr40 llom60
or tax tu83
*Ir you aaswof negatlr%ly, rhloh
~lloenso snd tar levier will h% bo
required to pny?'
A dlatlnatfoa almU bo p%fnt%d between a liouwe
fu oolledd under the gea%ral p%liao powor of! .thr &at%,
and M ocaupatlon tru l%vi%d under the ~%n%rsl powers oi
tautiioa and rwenue m3sldlng in the Lsglslature, exoopt
as prohlbitsd by the Constitution of Texae or ot the United
statas. At 27 Tex. Jur., p* 033, u8 find the followL~!g
stat%m%trt rsapsdlng the nature ma attribut%8 of llo%nse
t4u f
~iamnslng'maa8ures qttlte generslly po-
+lde for the papeat ai a mm by the liaea-
lee to defray the sx3snse Cl iroulng tho li-
oen6* and araaiaiqg the applloant 01: empni8-
in6 ?A% buslassa to be.-oonduatt& 3uoh charg!~
are usually @i&ula@%~,.~i~ei.~ A lioense Sea
is nat a tax; but d ~&h sxaoted for the per-
c&a6 of a prtvilega. It ie levied under the
polior aad not the taxing ~ow%r, and therefore
ditfarr baa%ntfally from both % proprty and
RI) ocaupatlon tu.
lioeaB* tee is al@0 ,"&?zeZ~*KZ",~ the
right to oxoreise the privilege rougbt, ad
in many aeaes 3urault of t&e sotirity without
prerioua papmat of the reauhed fee is mada
a arininal ~?fenao.~
Ia this olaarifioatioa falls the few 4x%at%4 fro0
"Raigrant Agenta*
by Artiole SU!ta-1, Veroonts Amotated
Civil Statutes, and fron~*&agloyrYo~t AgaatiP, under hrti-
01s aero Vemon*a Annotnted Civil Statutoe, herrrlnafter
dlrousae 4.
584
Honorable George H. 8hoppard, PWO 6
On the other band, althougk ocouptfon taxes are
eomtImes lmlsd under both the >olfos WI& r~saub powbly
of the Statb, the prbary p~~pooo ot the lwp Is ravenuo
ln oontradirtiaotlon to rsgulatioo,~as in the aa8o of a
lIo*nse roe. he 10~~1 attributes of an oaoupatiorr tax
am statsd at ZV Tex. Jutis., p. 8944395, as lollowsi
“A tu Imposed on the privile~a of uigsg-
lag In sm oaouptlon or calllog liaeassd by
law Is denominatecl sn *ocoupatIon tax* or
soretim 8imply a8 a *lIaonss tax.* tr ooo*
pntiau tez I. a Ciraat, 8QeOif10 tu upon the
parson pursuit the ooouptlon, trn40 or busi-
aus# but the nrbjoot aatter of the tu 1s
th8 priril~goaxsroird, not tho persoa U&J
exorois8s It wr yet the roperty use& ln the
lXUO:SOo r it. Th4 tax f s thuefore asither
a proparty tax ~01: a poll tbrr Doubtless an
oooupstioa tax rtumt be *lwIedt bdors sa
obli&stIon to jmr srlsaa. Suoh tuos are
lwied primarily tor the ourpose of talelag
revanti*, but regulation may be a asaondary
objeot,and generally it booms t&t amups-
Moon tams an ispoasd ?ztdsr both tha pAiae
and the rwdoue hers.-
Ia the lattor oatsgory of an ooauptloa tu
lorisd pdaeml4 for rb9enue rather than regulation, 10
tba tax levied by sub-division 40, Article 7047, Yernoa*s
Annotated Ciril Statutes, berslnabove desorlbed.
Tha Leg.I;Lslaturs wa8 sot ooatent z3rslp to rasliee
rwenue rrck-2 tha oaoupa tlon or buaiincrsr of "Rdgrant Qsnt,*
but CeaaeC suah oaoupatlon or busfassr to be 8usTioiontly
afieotad with a ?ublIo lnterrst to warrant It8 rsguIatIon
a& repuIrs, IA the intereet8 31 tbo pub&a welfare, omtaln
OOAditiOA8 DXSrOqUiUit.~ t0 enE;%C;iAgiA 8Uah bUsiAsr8.
Banae the eaaotmsat of ArtI~'18 522la-1 by tbo Le#slature
1181929, bringfag the aonduot of this patiioular typo of
bUSiAe88 uuder the WaAtrOl, 8U3al”ViSiOlX S5d tsgrilation OS
the Oommis8Ioaer of Laior Statiatior of the State of TUM,
and roriding, in Section 2 thexwof for the following
am Postion and gmymmt of liaenee )bd to gmiuo suoh
busfnors 1
Y+*a. 2. Eaah s&pant agant 8hsl1, be-
fore opamtiag in Texna, dbcum d Etete llasnse
a# suah, on a~plioation thetafort the Gas-
alsslonsr ot Labor Statlstios of tha State of
TUU. Suoh application ahallbe iA Witing
585
Bonorablcl Qsor&$i. l3heppax-4,’
Page 7
on f’ora proeorlbed by bald Corparlscloner,
6nd 8hau be rdm4d by the applloant.
Blare the appliootioa 18 ~lbCe by a fixma,,
p6eimadp, 0r 4t8~3iek~1 or pr8058, it
.shall data the ~CQIWor all tbs wmbera or
mmh firm, partnership, or aeroniatloa OS
par8ons. and shall k reriflbd by eaoh of.
thaa and where by (L aorwratica, it shall
state the MS of all oSf$.oera and dray
rerffid by authorize6oftiaer. The l~pl.l-
oation shall stats the post offlo* addre88,
a n4 th ere8ldeaoeanU o itizemh ip o f laoh
applloaatnatoad thsreln. The a2piloctlon
shall stateukrs the twin offioo of the
eppllaent lo a&l/or 18 to be loahtrd. It
ohall alao state the ceuntie8in whioh tbr
applloaat proposes to do businoar aad tha
laoe in *aolkeount~uharo 8uob bu8i5088
P8 to be ooaduotedd proride&,t&o a pll-
cation say be subsequo~tly una0d f 5 this
reapeot by map leaasntal a;rglioation ii106
xith said Cotdzrioaar duly verified add-
lng oountle8 not neraod’ln tho origlnai
appltoation and stating uhero o~ah busineso
18 to be oondusted in aaah auoh aaded aoU5ty.
XO psr8on 8hall ~rn@J&e ia the bUsiao88 of
any l a lg r ent
agent in ml countyngt asned
in suoh original or aaondsd a plloatlon;
When an esigr*at eat b8 fi Ped awh a;lpli-
d the oooustioa taxba
, and pays to the Labor
8 Sn CIMUti liCMS0
tee 0r $10.00, the said Comnlssioaer shall
is8ue f:, him a stata lioonss as aa m&grant.
agoat, rhioh ahall entitle hia to do Ima+
5688 68 auah In an.7 oouatr na~rea in satd
naense la rhloh said Gowity tax has bee
9 h all t hall fil 1
ax &l&%a~f %?to&ty in uzh
he proposae to do bUsi%as a oortiflad
aopy al his llomoe." (rJndaraoorl5i3 ours)
2-b 8ta twra eii5iti0n or l r a nt Agent" being
in both th8
.idsntloal ax meamue and tho
E: 9 la8nelng meamro,
it lo readily apparent from the unasrlinsd ?ortioaa of the
latter Act above quoted,,that the Legirlatum aontea&sted
the oclleotlon of anannual liosn!te foe OS 010.00 for eaoh
place of bualness la aaditioti to ocaupatlon tax08 lsrlod
b sub-dir$sioa 40 af Artiale 7047, Yorgon*s Annotated
&il &StUte8. I5 faot, gaytmnt of the latter tax is a
586
Beaa~bleOaor&aB. She:9ard, Ebga 8
smdltIon prtmqulstte to.the looaaue. of tha llaaaaa by
the Co&alsslauer at L8bor StatI8tiO8 uad8r hrSlale 5%a)l8-1,
Van&on*8AnnotatedOlrIl~Yt8tute8. But avan lb8ant aueh
sta tutolx9xaa8Ic58,
ry our amaluaion uoula HA11 be that
both the oosupatlon tax and the lla8ase fee would be ool-
laotlble, duo to tha ftmdar~entaldIatlnotIon between bha
two la?la+ p0ht8a out earlier IA t&i8 09inIO5,
above dlaeussed. By ooap.irlaonof the datutory d.finl-
tioar of the twu*a.igrent Agent* Ma ‘4 loyi0ant hgent,*
it is appcrraatthat two dirtlnat a&d disr IQ! Ur oeoupations
or busiawrcrs wara mntsrapleted - the flrat term e&raa-
in the badness qt hiring 9araoaa to ba rorked or aaployea
on & outride the at&e of Texas, while the lattar tara
Inoludar 9~81~ Intern81 or lntm8tate tr8n8aotIoa8 in
the bridging together OS esployar8 and aiaployaar into
ralaOlon8 of a39lopent.
'tteretore,me say that aup pt)r8oa,rhti, oorgora-
tloa or acsoalatlon of perrona etqaSe6 la Texas in t&a
In answer to your 0soonG quation, it folloms
fro0 the foregoing dl8ousaloa that a parwn, lirar, ore
eor:oratloa oparatlng 18 Texae as aa wBalgm.at b&tent,*
~Ssdatlaadby statute, and not aa *Baployzient Agent," a8
dartaad by ltatuta, wotid only be llabla to the oaouplt~Io?i
tax lavlad by sub-dIrlrloa 40, Artlala 7347, Vernon*8 Into-
587
AqPROVEDApR 23, 1940
COMMITTEL