The Texas Supreme Court ruled that the Boll Weevil Eradication Foundation's assessments were regulatory fees, not taxes. However, the court struck down the entire system because the Legislature unconstitutionally delegated too much power to a private entity. For subcontractors, this case shows that when government creates private organizations to collect fees or assessments, courts will scrutinize whether proper legal authority was actually granted.
Private entities cannot be given broad regulatory power by the Legislature without clear limits and oversight—this applies to any private board or foundation collecting fees from your industry