Honorable Robert S. Calvert 

Comptroller of Public Accounts 

Capitol Station 

Austin 11, Texas Opinion No. WW-544 

Re: The effect to be given 

to Article 5221b-22a, 

Vernon's Civil Statutes, 

relating to administraDear Mr. Calvert: 

tion and disbursement of 

the moneys in the Unemployment Compensation 

Special Administration 

Fund. 

You have requested our opinion on the following question: 

"For my further guidance in payment of 

claims of like nature, I shall thank you to 

advise me what effect, if any, I am to give 

the following language in Article 5221b-22a, 

as amended by the Regular Session of the 

Fifty-first Legislature: 'All moneys in the 

Unemployment Compensation Special Administration Fund shall be deposited, administered, 

and disbursed in the same manner and under the 

same conditions and requirements as is provided by law for other special funds.'" 

Article 5221b-22a provides in part as follows: 

"There is hereby established as a special 

fund, separate and apart from all public moneys 

or funds of this State, an Unemployment Compensation Special Administration Fund which may be 

used by the Commission for the purposes of paying costs of the administration of this Act 

including the costs of construction and purchase 

of buildings and land necessary in such administration. . . . Nothing in this Section, however, 

shall prevent said moneys from being used as a 
Honorable Robert S Calvert, page 2. (w-544) 

revolving fund, to cover expenditures necessary 

and proper under the Texas Unemployment Compensation Act for which Federal funds have been duly 

requested but not yet received, subject to the 

charging of such expenditures against such funds 

when received. . . . All moneys which are deposited or paid into the Unemployment Compensation 

Special Administration Fund are hereby appropriated and made available to the Commission and shall 

be continuously available to the Commission for 

expenditure in accordance with the provisions of 

this Act, and shall not lapse at any time or be 

transferred to any other fund. All moneys in the 

Unemployment Compensation Special Administration 

Fund shall be deposited, administered, and disbursed in the same manner and under the same conditions and requirements as is provided by law for 

other special funds. . . .' 

Section 7 of Article VIII of the Constitution of Texas, 

provides: 

"The Legislature shall not have power 

to borrow, or in any manner, divert from 

its purpose, any special fund that may, or 

ought to, come into the Treasury; and shall 

make it penal for any person or persons to 

borrow, withhold or in any manner to divert 

from its purpose any special fund, or any 

part thereof." 

This Section expressly prohibits the diversion by the 

Legislature of any special fund that may or ought to come into 

the State Treasury. Carrel v. Williams, 109 Tex. 255, 202 S.W. 

2d 504. However, this Section applies only to constitutional 

special funds, and is not applicable to statutory special funds. 

Gulf Insurance Co. v. James, 143 Tex. 424, 185 S.W.2d 966, 1945, 

Attorney General's Opinion V-107 (1947). 

In Gulf Insurance Co. v. James, supra, the Court 

stated: 

"We agree with the holding of the Court of 

Civil. Appeals that the Legislature has the right 

to transfer the balance on hand in these special 

funds to the General Revenue Fund. In so doing 

the Legislature does not violate the provisions 

of Article VIII, Section 7, of the Constitution. 

. . . 
Honorable Robert S. Calvert, page 3. (WW-544) 

. The State could have required the 

funds coliected for the purposes indicated to 

be paid directly to the General Revenue Fund 

in the first instance. Ex Parte Gregory, 20 

Tex. App. 210, 219, 54 Am.Rep. 51.6; Brown v. 

City of Galveston, 97 Tex. 1, 17, 75 S. W. 

488. If it had done so, then certainly the 

excess, if any, would have been available 

for use for general purposes. The propriety 

and fairness of an enactment authorizing the 

use of the unexpended balances in these special 

funds for general purposes present legislative 

rather than judicial considerations. Consequently, the State now has the right, if the 

Legislature deems it wise to pass suitable 

laws authorizing it, to use the balances of 

these special funds for general purposes. 

Section 1 of the Act which authorized the 

transfer of Operator's and Chauffer's License 

Fund to the General Revenue Fund, is therefore valid." 

The Unemployment Compensation Special Administration 

Fund is a statutory special fund as distinguished from a constitutional special fund, and therefore, the Legislature may 

provide the purposes for which this special fund may be expended. However, in the administration of the special fund, 

it must be administered and disbursed for the limited purposes 

for which the fund was created, as directed by the Legislature. 

You are, therefore, advised that the above quoted 

provisions of Article 5221b-22a direct you and the Treasurer 

to keep the moneys in the Unemployment Compensation Special 

Administration Fund in a separate account from all other funds, 

and it is to be expended for only those purposes authorized by 

the Legislature. 

SUMMARY 

The Unemployment Compensation Special 

Administration Fund, created by the provisions of Article 5221b-22a, Vernon's 

Civil Statutes, is a statutory special 

fund and moneys deposited in such fund 
Honorable Robert S. Calvert, page 4. ow544 1 

must be kept separate and apart from 

all other moneys and can only be expended for the purposes authorized 

by the Legislature. 

Yours very truly, 

WILL WILSON 

Attorney General of Texas 

JR:mfh:zt Assistant. 

APPROVED: 

OPINION COMMITTEE 

Geo. P. Blackburn, Chairman 

Mrs. Marietta Payne 

Jack Goodman 

Renry G. Braswell 

RBVIEWED 'OR THE ATTORNEY GENERAL 

BY: W. V. Geppert