Weekly AG Round-Up: Texas sues Biden Administration over dictating state tax policy in federal COVID-19 relief law

Staff Report

The responsibilities, of the Office of the Attorney General, are to serve as legal counsel to all boards and agencies of state government, issue legal opinions when requested by the Governor, heads of state agencies, and other officials and agencies as provided by Texas statutes.

The Texas AG sits as an ex-officio member of state committees and commissions and defends challenges to state laws and suits against both state agencies and individual employees of the State.

Many Texans look to the Office of the Attorney General for guidance with disputes and legal issues. The agency receives hundreds of letters, phone calls, and visits each week about crime victims’ compensation, child support, abuse in nursing homes, possible consumer fraud, and other topics.

To find out more about the Texas Attorney General, visit the official website at https://texasattorneygeneral.gov/.

Paxton Sues Biden Administration Over Dictating Texas Tax Policy in Federal COVID-19 Relief Law

AUSTIN – Attorney General Ken Paxton filed a lawsuit against the Biden Administration over a provision in the federal government’s American Rescue Plan Act.

Though the Act generally assists Texans recovering from the COVID-19 pandemic, one provision—the Tax Mandate—specifically demands that Texas not use funds received through the Act to “directly or indirectly” offset tax revenue reduction caused by changes in tax policy.

This condition prohibits Texas and other states with similar low-tax models of governance from cutting taxes for years to come on the pain of losing billions in COVID-19 relief.

“This is yet another attempt by the federal government to unlawfully exert control over how sovereign states operate. While hiding behind a deceptively friendly name, the Act effectively removes Texas’s ability to lower taxes while granting Secretary of the Treasury Janet Yellen power to take back federal aid funds if they disagree with state tax policies. For Texas, which successfully operates on a low-tax model and continually finds ways to reduce tax burdens on citizens, the Tax Mandate is particularly intrusive,” said Attorney General Paxton. “By design, Congress lacks the power to assert control over states and cannot coerce a state into adopting a policy. The Tax Mandate, which does precisely that, blatantly violates the Constitution and cannot stand.”

The threat created by the Tax Mandate not only prohibits Texas from eliminating taxes, reducing tax rates, or increasing tax credits, it also prohibits the adoption of enforcement policies regarding taxes that would lead to reduced revenues.

For example, if Texas decided not to enforce a given unemployment or payroll tax against a struggling small business or to reduce property taxes in a district, the state would be stripped of funding meant to assist those recovering from the pandemic.

Read a copy of the filing here. 

AG Paxton’s Law Enforcement Round-Up

The Fugitive Apprehension Unit

Harris County
Christopher Michael Roth was arrested in Houston on April 28.  Roth, who was on parole for two separate convictions of Aggravated Sexual Assault of a Child in 2008 and 2011, violated the terms of parole and a corresponding Parole Violation warrant was issued by the Texas Department of Criminal Justice.

Dallas County
Tamarion Stewart was arrested in Dallas on April 28. Stewart had an outstanding warrant for murder by the Mesquite Police Department.

Dallas County
Juan Carlos Lopez was arrested on April 27. This arrest was made after a request from the Little Elm Police Department. Lopez had an outstanding warrant for four counts of Sexual Assault of a Child issued by the Denton County Sheriff’s Office.

The Medicaid Fraud Control Unit

El Paso County
Kathy Maria Caraveo was arrested and indicted on two counts of medical fraud and one count of theft of property. She was arrested by the Lawton Police Department on April 23. Caraveo allegedly billed for counseling services that she did not provide. The overpayment amount is $666,730.55. 

Paxton Defends Border and Fights Human Trafficking as Biden Administration’s Policies Fail Americans

McALLEN – As the Biden Administration’s failing policies worsen the border crisis, violent crimes like human trafficking surge. In stark contrast to President Biden’s lawlessness, Attorney General Ken Paxton is taking broad strides toward remedying the hostile criminal and humanitarian disaster at the southern border.

.

After visiting migrant centers in San Antonio, Midland, and Donna and filing several lawsuits against the Biden Administration’s destructive immigration policies, Attorney General Paxton visited the Texas-Mexico border to assess the situation firsthand and meet with law enforcement from across the state and nation, including Border Patrol, Texas State Police, and local County Sheriffs, and visited the Internet Crimes Against Children Fusion Center.

.

.

“Law enforcement agents and officers stationed along the border continually risk their lives to protect Texas and our nation. I want to thank every branch of law enforcement here for doing all they can to keep Texans safe and for helping us shine a light on the true, severe nature of this border crisis,” said Attorney General Paxton. “President Biden’s senseless combination of failed border policy and refusal to enforce federal immigration law is directly endangering Texans and Americans. Right now, I am using every legal tool at my disposal to keep dangerous criminals out of our communities, free those ensnared in human trafficking schemes, and maintain law and order.”

Additionally, Attorney General Paxton has already filed several lawsuits against the Biden Administration’s failed policies, including demanding federal immigration law be upheld regarding the deportation of illegal aliens, defending the necessity of the “public-charge” rule to combat skyrocketing illegal immigration costs to taxpayers, defending Texans against illegal aliens with dangerous criminal history after U.S. Immigrations and Customs Enforcement refused to detain them, and insisting proper COVID-19 protocols be upheld for illegal aliens crossing the border and entering migrant centers.

CONSUMER ALERT: Beware Unemployment Benefit Identity Theft

AUSTIN – Attorney General Ken Paxton today warned that unemployment benefits identity theft is on the rise in Texas. Unemployment benefits identity theft occurs when an imposter uses another person’s personal information, such as their name and Social Security number, to file a claim for unemployment benefits.

“Unscrupulous criminals are victimizing Texans by stealing their identities and filing false unemployment claims. If you receive documents from the Texas Workforce Commission regarding benefits claims you did not make, remain vigilant, report it, and take appropriate steps to protect your identity,” said Attorney General Paxton.

Texans who are not claiming unemployment benefits and have information that a claim was filed using their identity should report the identity theft claim on the Texas Workforce Commission’s (TWC) online portal.

The TWC’s website has further information on how to use the portal and other methods to file a report. Anyone receiving a letter from the TWC asking to verify identity using ID.me that did not file a claim should not complete the verification and instead should report it to the TWC.

Victims should also notify their employers. Employers may receive a “Notice of Application for Unemployment Benefits” from the TWC informing them that a claim was filed. Texans should tell their employer to follow the instructions for responding to the notice and indicate the claim was filed by an imposter.

Texans should also take steps to educate and protect themselves regarding identity theft. The Texas Attorney General website has resources explaining what identity theft is and explaining what to do if your identity is stolen. In addition, the TWC has additional resources related to identity theft.

Suspected fraud may also be reported to the Texas Attorney General’s Consumer Protection Division by calling toll-free 1-800-621-0508 or by filing an online complaint at https://www.texasattorneygeneral.gov/consumer-protection/file-consumer-complaint. 

Paxton Joins Amicus Defending Parental-Notice for Minors Seeking Abortions

AUSTIN – Attorney General Ken Paxton joined a 19-state coalition defending parental consent statutes for minors seeking an abortion.

This friend-of-the-court brief was filed in the United States Supreme Court after the Chicago-based Court of Appeals for the Seventh Circuit blocked a law requiring parents to receive notifications when their child decides to have an abortion without parental consent.

“As the Supreme Court has previously recognized, nurturing his or her child is ‘high duty’ of any parent. Never is this parental duty of custody, care, and guidance more necessary than when minors make the irrevocable, life-altering decision to have an abortion,” said Attorney General Paxton. “Texans traditionally respect and uphold parents’ right to raise their children as they see fit, and the Seventh Circuit has repeatedly upheld these ideals in previous opinions but failed to do so here. The Supreme Court now has a chance to restore parental liberty and the wellbeing of minors while giving parents room to teach and guide their children.”

This is the second time that the case has reached the Supreme Court. Last time, the Court asked the Seventh Circuit to reconsider its holding in light of its decision last year in June Medical LLC v. Russo.

Nonetheless, the lower court applied the exact same faulty reasoning to strike down a parental consent statute. This repeated error has created great uncertainty for States in crafting public policy in this vital area.

Read a copy of the amicus brief here.

Request for Opinion

Official Request Summary RQ-0405-KP
Procedure for numbering election ballots and which officials are authorized to select the method for numbering ballots

Date Received
Monday, May 3, 2021

Official Requestor
The Honorable Matthew A. Mills
Hood County Attorney
1200 West Pearl Street
Granbury, Texas 76048

Request for Opinion

Official Request Summary RQ-0404-KP
Transfer of county school land to an independent school district

Date Received
Monday, May 3, 2021

Official Requestor
The Honorable Michele Dodd
Reagan County Attorney
Post Office Box 887
Big Lake, Texas 76932

Notification of Opinion

Official Request Summary RQ-0387-KP
Whether section 3000.002 of the Government Code prohibits political subdivisions from adopting paint color and pattern requirements

Official Opinion Summary KP-0370
Application of Government Code section 3000.002 to paint color and pattern requirements adopted by political subdivisions

Notification of Opinion

Official Request Summary RQ-0386-KP
Whether simultaneous service as county sheriff and municipal fire marshal violates article XVI, section 40 of the Texas Constitution or the common-law doctrine of incompatibility.

Official Opinion Summary KP-0369
Application of Texas Constitution article XVI, section 40 and the common-law doctrine of incompatibility to simultaneous service as county sheriff and municipal fire marshal