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 ,pqulation 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 oolfcltins 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 mfntatiing an oMla6 to him, entice, 

or adicit laborers to 38 enigloyed beyond tha li;aite of tda 

state; rznd is olao maent to indude fp5~ person aho, ati ~lzl 

indbpendent oontmotor or otborwise t3an as an ayfsit oi a duly 

Uccurrad ezi~;nnt went proouma, 

or unC4rtGsso to proourm, or 

assist in proourin~ laborsrr 

r0r an m&rant 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 pm8311 or thou&i un qent, hiras, 

snt 1 GO&, 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 lleurs4 fron the C&B4lo54r of bbor, the tee ol rhiah ib 

~10.00 anaufil4. migrant Agient la 

this hat io defLao4 aa followa~ 

**WI t4n l a&ra5t a.gmt* 48 

ared fil thir Aat nwens every arrsoa, firm, aorprstion or aemalstlan of persons ragaged 13 

th4 buslnear of hiring, ontloIn&, a- soll.lerltl~laboran in 

thlr State to bo axployed beyond 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& beyond ths 11sitr of tml states 

end I* .tiao meant to inaludo 

everfpereon who, a8 an indr 

pendant aontraaetor or athem 

win than es an-asnt of a duly 

U445.44d ad-at ageat pro4ur4bl oru8dertekuc.bproau-o, oraoaist ia ~roourina 

laborbra for a5 l lg r a ang45t; t 

unU orora a y lg rl a&snt nt 4hall 

be teratad and held to be doibwiiit4s4 44 mah In dash jnd 

l tg r y o euntap lmr o l5 h o , I5 

person, or through a5 aaant, 

hlrrs, sntlooe or aolialts ally 

laboror to ba wngloyed bsyona 

th.4 lhdt8 of tl;e State.* 

nArtlele 6310, V. A. C. S., prorid4s that 

etery kploy~4nt Agent shall proour* a 

State llaeaase tram tha Coamlsolon4r of 

Labor for ssoh aounty wham a5 aa,phgmeat 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 

l Vha term *Baplopat Agea?? 

m4ane 494ry p4rae5. firm, partner4hip or ae8ooiatlon of parson8 
582 

Bonorabl4 Osortw EL Sheppard, Pag4 4 

45(pg4d la the btu3in484 of 

l f5aiutlzig omploy4ru to 040~~0 

a mp lo y w a 54 p er f+o o a to l a ur a 

~ploymrmt, or of aellaating 

id0twd0a r4gardlng 4mplo~- 

em l s*klng 4i4ploy40, and parmna l Mclag 8llQloyaent.' 

*I5 osrtiln aroau of She 8tsts. prixolpelly Sea 

Antonlo and other areas with a IargS sdoxloen pop 

ulat105, l nlpl 

"i" 

at a$o501~ hare beea eatebllshedwho8u prlao pel bualnaealrthatoS eniaxlgrant 

Agent a8 dofi54d Lo Artlale 7047, subdfvldaa 40 

but who,also eagrge in ths bu4la4e4 OS ao4Lstfng 

genons to maure employsant la 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 aollbatata 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;axaiecl as EEli- 

$-t 3 

4Rt6 Md QOl P 4Qt4d all 55CUfll BtatO li64584 

ee ai 10.00 far saatt aowty of ag*mtion under 

brtlclo JPOla-1. 

‘XOW the CotMy Taz hsaeo!%or COll4Otir of aQt3h 

oounty of opsratlon .has d4zsamlad ,*ys#nt of the 

tax in tha aimoant of WOO.00 (or the other 

p%lwted asuiuat8 lspcvisd oa nub-offioarJ from 

the 4saq person4 or r?,.:ez~oler~ fcr operating as 

&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 4ollaltleg laborer8 In thl4 Stnte tor smployQ45t 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 esouring 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 liaealee to defray the sx3snse Cl iroulng tho lioen6* 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 perc&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 hrti01s aero 

dlrousae 4. 

Vemon*a Annotnted Civil Statutoe, herrrlnafter 
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 uigsglag 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 busiaus# but the nrbjoot aatter of the tu 1s 

th8 priril~go axsroird, not tho persoa U&J 

exorois8s It wr yet the roperty use& ln the 

l XUO:SO or 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 amupsMoon 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;iAg iA 8Uah bUsiAsr8. 

Banae the eaaotmsat of ArtI~'18 522la-1 by tbo Le#slature 

118 1929, 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 P ostion 

busfnors 1 

and gmymmt of liaenee )bd to gmiuo suoh 

Y+*a. 2. Eaah s&pant agant 8hsl1, before opamtiag in Texna, dbcum d Etete llasnse 

a# suah, on a~plioation thetafort the Gasalsslonsr 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 ~CQIW or 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 authorize6 oftiaer. The l ~pl.loation shall stats the post offlo* addre88, 

a n4 the re8ldeaoe anU o itizemh ip o f l aoh 

applloaat natoad thsreln. The a2piloctlon 

shall state ukrs the twin offioo of the 

eppllaent lo a&l/or 18 to be loahtrd. It 

ohall alao state the ceuntie8 in whioh tbr 

applloaat proposes to do businoar aad tha 

P 

laoe in *aolkeount~uharo 8uob bu8i5088 

8 to be ooaduotedd proride&, t&o 

cation say be subsequo~tly una0d 

a pllf 5 this 

reapeot by map leaasntal a;rglioation ii106 

xith said Cotdzrioaar duly verified addlng 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 eagent nt in ml county ngt asned 

in suoh original or aaondsd 

When an esigr*at 

a plloatlon; 

eat b8 fi P ed awh a;lplid the oooustioa taxba 

, and pays to the Labor 

tee 0r $10.00, 

8 Sn CIMUti liCMS0 

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 twr 

.idsntloal in both th8 E: 

a eii5iti0n or l 

ax meamue and tho 9 

r a nt Agent" being 

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 

&il &StUte8. 

sub-dir$sioa 40 af Artiale 7047, Yorgon*s Annotated 

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*8 Annotated OlrIl~Yt8tute8. But avan l b8ant aueh 

sta tuto r l x9xaa8Ic58, y our amaluaion uoula HA11 be that 

both the oosupatlon tax and the lla8ase fee would be oollaotlble, duo to tha ftmdar~ental dIatlnotIon between bha 

two la?la+ p0ht8a out earlier IA t&i8 09inIO5, 

above dlaeussed. By ooap.irlaon of the datutory d.finltioar of the twu *a.igrent Agent* Ma ‘4 loyi0ant hgent,* 

it is appcrraat that two dirtlnat a&d disr IQ! Ur oeoupations 

or busiawrcrs wara mntsrapleted - the flrat term e&raain 

on & 

the badness qt hiring 9araoaa to ba rorked or aaployea 

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, oorgoratloa 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,* 

~Ss datlaad by statute, and not aa *Baployzient Agent," a8 

dartaad by l tatuta, 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