MARK WHITE 

Attorney General 

Supreme Court Building 

P. 0. Box 12546 

Austin, TX. 76711 

5121475-2501 

Telex 9101674-1367 

Telecopier 5121475~266 

1607 Main St., Suite 1400 

Dallas. TX. 75201 

214/7428944 

4624 Alberta Ave., Suite 160 

El Paso, TX. 79905 

91515333464 

1220 Dallas Ave., Suite 202 

Houston, TX. 77002 

713/6500666 

606 Broadway, Suite 312 

Lubbock, TX. 79401 

6061747.5236 

4309 N. Tenth, Suite B 

McAllen, TX. 76501 

512i662-4547 

200 Main Plaza. Suite 400 

San Antonio, TX. 76205 

5121225-4191 

An Equal Opportunity/ 

Affirmative Action Employer 

The Attorney General of Texas 

February 11, 1982 

Mr. Lias B. "Bubba" Steen 

COUlllliSSiOll~~ 

Texas Department of Labor and 

Standards 

E. 0. Thompson State Office Bldg. 

P. 0. Box 12157 

Austin, Texas 78711 

opinion No. MW-443 

Ret License fee for farm 

labor contractors 

Dear Mr. Steen: 

You have asked our opinion regarding the effect of House Bill No. 

2089 on article 5221a-5, V.T.C.S. House Bill No. 2089, which became 

effective August 31, 1981, exempts labor agents who have registered as 

farm labor contractors under the Farm Labor Contractor Registration 

Act of 1963. as amended (7 U.S.C. section 2041 et seq.), from the 

provisions of article 5221a-5. 

At issue is whether individuals who paid a license fee as a labor 

agent under the state law are now entitled to a pro-rata refund of 

some portion of that annual fee if they are registered as farm labor 

contractors under the federal act. The question would only apply to 

those individuals who paid the state labor agent fee after September 

1, 1980, since it is an annual fee and the exemption in House Bill No. 

2089 became effective August 31, 1981. In addition, it would only 

apply to those individuals who meet the above stated criteria and have 

registered as farm labor contractors under the federal act. 

We note here that money paid to the Texas Department of Labor and 

Standards as labor agent license fees is to be deposited into the 

General Revenue Fund as required by section 9 of article 5221a-5. We 

are advised that the Texas Department of Labor and Standards, in 

anticipation of this problem, has placed said license fees in a 

suspense account with the state treasurer, as provided by article 

4388. Notwithstanding the above, all state money, including that in 

special funds, is subject to the restrictions of article 8, section 6 

of the Texas Constitution which reads in relevant part: 

No money shall be drawn from the Treasury but in 

pursuance of specific appropriations made by 

law.... 

p. 1527 
Mr. Lias B. "Bubba" Steen - Page 2 (MW-443) 

However, the legislature has specifically made provision for the 

refund of money in section 26 of the 1981 General Appropriations Act 

which reads: 

Any money deposited into the State Treasury 

which is subject to a refund as provided by law 

shall be refunded from the fund into which such 

money was deposited, and so much as is necessary 

for said funds is hereby appropriated. 

Acts 1981, 67th Leg., ch. 875, at 3811. This section has been 

construed to allow a state agency to refund money if the law of the 

state allows for such refund. See Attorney General Opinions H-224 

(1974); H-716 (1975). 

- 

We find no language in House Bill No. 2089 or article 5221a-5 

which authorizes a refund of money paid as a license fee under any 

circumstances. In the absence of specific statutory authorization, 

the general law of this state expressed in its court decisions 

recognizes three separate grounds which will support a claim for 

refund of fees paid to the state; these are (1) fraud, (2) mistake of 

fact, and (3) duress. Attorney General Opinions O-6282, O-6974 

(1945); See also Attorney General Opinion O-7113 (1946). 

We will now consider whether the payment of the license fees 

inquired about was made in such a manner as to come within the meaning 

of any of the above three categories. 

A license fee is but a price exacted by the state through its 

police powers for the exercise of a privilege, payment of which is 

made prerequisite to the right to exercise the privilege sought. The 

state has unquestioned authority to exact license fees reasonable in 

amount for purposes of regulation. 

Section 3(c) of article 5221a-5 provides: 

The application shall be examined by the 

Commissioner. If he finds that the same complies 

with the law and that the applicant is entitled to 

a license and pays the annual license fee of Fifty 

Dollars ($50). then he shall issue a license to 

the applicant. Each license issued by the 

Commissioner shall be good for a period of one 

year from date of issuance. (Emphasis added). 

Under the circumstances and facts you have presented, we are of 

the opinion that payment of labor agency licensing fees do not fall 

under any of the three aforementioned categories. At the time the 

labor agent license fees were paid, the party making application had 

p. 1528 
Mr. Lias B. "Bubba" Steen - Page 3 (MW-443) 

full knowledge of all facts surrounding his application for 

registration as a labor agent. There was no fraud or mistake of fact. 

As to duress, the Supreme Court of Texas in the case Galveston City 

Company v. Galveston, 56 Tex. 486, 492 (1882), stated: 

In determining whether the money was 

voluntarily paid or not, an inquiry must be made 

into the intention of the parties at the time the 

money was paid; and unless it appears that, at 

that time, there was an unwillingness to pay, the 

payment must be held to have been voluntarily 

made.... 

In the instant case we can find no indication that at the time 

the labor agent license fees were paid, there was any reluctance or 

unwillingness on the part of a license applicant to pay the fees. 

We therefore find no statutory or lawful authorization for you to 

refund any portion of the labor agent license fees. We therefore do 

not reach your additional question. 

SUMMARY 

Due to the absence of statutory or common law 

authorization, annual license fees paid by labor 

agents under article 5221a-5 are non-refundable 

even though subsequent legislative action may have 

exempted a certain class of labor agents from the 

requirement of the statute. 

Very truly yours, /I 

MARK WHITE 

Attorney General of Texas 

JOHN W. FAINTER, JR. 

First Assistant Attorney General 

RICHARD E. GRAY III 

Executive Assistant Attorney General 

Prepared by Ed Salazar 

Assistant Attorney General 

p. 1529 
Mr. Lias B. "Bubba" Steen - Page 4 (Mw-443) 

APPROVED: 

OPINION COMMITTEE 

Susan L. Garrison, Chairman 

Jon Bible 

Rick Gilpin 

Jim Moellinger 

Ed Salazar 

p. 1530