Attorney General Files Suit Against Bag-Charging Stores On Same Day Prosecutor Declines Dropping His Felony Charges

AUSTIN, TX -- Texas Attorney General Ken Paxton moved on Wednesday to end the scourge of "environmental fees" charged at some stores for plastic bags provided during checkout.

Maintaining that the "environmental bag" fee charged at the stores in Brownsville is tantamount to an illegal sales tax, Paxton filed a lawsuit to end the practice.

“No local government has the authority to violate Texas law just because it feels like it,” Paxton said in a prepared statement. “Clearly, Brownsville is raising taxes on its citizens through this unlawful bag fee."

Citing reports in the Brownsville Herald newspaper, Paxton said that since its inception through January of this year, the $1 "environmental fee" assessed to customers comes to nearly $4 million.

"The rule of law must be upheld, and state law is clear – bags may not be taxed," Paxton declared.

The lawsuit maintains that under the Texas Health & Safety Code, plastic checkout bags are considered “containers or packages,” the AG explained. By virtue of a state law requiring local governments to manage waste from taxes already collected, the law prohibits the assessment of taxes or fees at the cash register," he added.

Paxton's timing in filing his lawsuit to end the "environmental fee" for plastic bags is ironic. On Wednesday, the Texas Court of Criminal Appeals refused to take up Paxton's last-ditch efforts to have his felony indictments thrown out stemming from securities fraud charges lodged against him.

As a result, the Republican attorney general is now poised to face trial as early as next spring.

"Today's ruling marks an end to Mr. Paxton's almost year-long attempt to avoid being judged by a jury of his peers," special prosecutor Brian Wice said on Wednesday, as reported by the Dallas Morning News. "We look forward to going to trial and seeking justice on behalf of the people of Texas."

The special prosecutor's decision to hear the case comes after a lower appeals court in Dallas and a Tarrant County judge hearing the case had also refused to throw out the indictments, despite efforts by Paxton's lawyers to have the charges dismissed.

But Paxton's lawyers aren't giving up the fight, even in light of the special prosecutor's Wednesday pronoucement. In response to the special prosecutor's decision to proceed with a trial, the AG's attorneys said they plan to ask the high court to reconsider, especially because a federal judge recently threw out separate, yet similar, civil charges against Paxton based on the same set of allegations.

"We anticipate filing a motion for rehearing because we have tremendous confidence in our case," Paxton attorney Philip Hilder said in a prepared statement, as quoted by the Morning News. "The charges against Ken Paxton are without merit. A federal court, following a lower legal standard, ruled that the fraud charges were baseless."

Paxton's legal woes stem from previous charges filed against him by the Securities and Exchange Commission, the regulatory agency overseeing regulation related to the trading and selling of securities. Paxton faces two first-degree felonies for securities fraud: One for failing to register with the state as an investment adviser representative and another related to his efforts before becoming AG to convince others to invest in tech firm Servergy Inc. without acknowledging he was paid on commission for securing investors.

If indicted, Paxton would face a sentence between five to 99 years in prison, plus a fine not to exceed $10,000 for each charge and two to 10 years with the same fine for the third-degree felony charge.

Last year, Paxton turned himself in after an arrest warrant was issued related to the securities fraud charges. A mug shot was taken at booking at the Collin County Jail on Aug. 3, 2015.

Paxton provided a link for those interested in reading his lawsuit on the "environmental fee" assessed for bags in Brownsville. To see the lawsuit, click here.

>>> Photo via Collin County Jail records