OFFICE OF THE ATTORNEY GENERAL OF TEXAS

AUSTIN

a-auhfaaAwbu”~oHonorable Claude A. **Wl.lliame** Ohairman aa&-.Ikeoutivs Dire&or Texas Wnempl.opment Gompensatlon,Go~Lsf~n Austin, Texas

Dear Sirs

was $rensfe+red to and made a dlrrs%oxiof,%he.Taxas UnemploymentCoapensation Commisafon (Art. 5221b-10, Vernonts Annotated Clv3.1. Gtatatas). :
"on December 19, 19&L,sthe President Or the unite& States a'ent a.tslagram to the ~overnore Ofthe sevem31

lQ3ncies of states **roqueoting** that atlo to the exthe **pr4S4ilt** emer(;sncy, each state transfer to the Unitad States Zmploymsnt Sarvfae ~11 of the p~t¶reolulel,

reaoras, and faoifities ot the employ**ment service**  **ODer%tid** by such s$ato, copy of said telt~~arl~bsing-Rttsohed ek'exhiblt *e@!.

"On Deoembir 

### 23,1941, the Frssident issned Pxecatire Order Kd: 8990 authorizing the trb&fer

or pereonnel from a stat3 emplopment sowrity aSenuy to the S00ia1 Seourlty 3onrd of'the **YedaraL Ssaurity**  agenay atfeotiYeat the close of business Doaetttber 31, ,I%$, oopy of,said exeautive order being attached as **exhEbft** cBw

. . ~' *In aooor9anoe sith the above telegramand exeoutiva order, the several ststa end territorial e,nploymant~aervfoea u-are establfehsaa8 the Dnited States &tployment Service, effective ,Ten~necp 1, lg.@. Inasmuch ab funds foti the Federal operation ot the United States %@oym8nt Servlaes are frunished by the Fodsral Wvernment, the expenditure ot.ititids

granted yurjruknt

to the kaeqex-Psyesr. Rot ior~theTparposeof mawhIne;-Statelandlocal funds,, MS disaontinueaas of Jamaary 1, 

### 191,~.

***Semte** sill Xo. 1,23, .Aotn- 19&l; 47th Ze&, p. ‘1284,'?~h.



### 571,laralrlng

@:approprlat$en for the.- **Texas ,-Unemplo~ra~nt**  **Go.w~snsation Com~iseloh,**  **cbntalns** 3he tolj.awi&,

pr6ylaIs.a

,,with kcspeht to Clnappropria1;lon’ bf. #lyJ,GOG:

nrlV”be keA to metoh FMeral ‘FandskI36oafed to

# the

**state ot**  Texas undstithe FZa@M?-F4gsar~~&t, idr~$he~~

&ayzent of rsalairies anil **other. na&58salysi**  **pensse~** in **~oonnsatlor.** 571ththe operation‘rr?d.maintendnoa~ of a Sbste .syetotn of dttplbpnntOfflbse; .j. salatilsa

86 ISO ~puidscoording to-kim eJ.qsdliioabfons of the $ooial SeoncltyBorwd to emplogee?! aelebted and rated 'nnderthe **p4rSormel plan**  In **effkct ~between**  the $oaisl Secwlty.Fonrd srclthe StRte **d.f?st?Cy;***Honorable Clauda A. William, I?ag;E 3.

Vernon'sAnnotated Civil Statutes, and to w,?.for the operetion~thereofthe aforesaid appr~opr:itH&n providedby the 47th Legielatuve.N

.' It appearsthat the oreatlos of.emplograent Offioea
was originatedby the-Congress of the United Statea in 1933 with the passage of the Wagner-PeyserAot, 29 0. S. C. A. 25. We quote cartain p]Po9isiona of said Aot as follows:

Seotton 49. *In 'ordw?to psolaotetbs .estabi.iahsent and maintenauoe of a national aystea of public eolploymntoHioas there is hereby meeted a bureau to be known as the United States Ehploy0entServloe.*

Section @b-(a). *It shall be the provinoe aad.duty of the bureau to promote and develop a national syste0 Of e0ployment officea for 0en, wooLen,

and juniors ,whoar.e.legally qualified to ~. engage In gainful oOoapatioaa,~to~0aintalna reterane( aerlio(B t,o..be devoted to aecaring ~employment fos:~vetemms, to~0aiutai.a ,a-Sarm placement. sexvioe,,to,maintaina public employment eervioe for the District **of** aolwnbia, and, in the m.fmnerprovided in aeotiona 490, **496,** 49e-49k of this title, to **as** sist i.nestablishingand maintaining systems of publie smp~loy04mt~offio~s~id the sereral States ~=a :the polltioal subdivision6 thexeof in wliioh,there shall be 1ocMted.a 'Psh6rans' smploy0snt service. Ths bum&au shall-al80asslat in OOU0dimitl0g the publooalitias,-paaotrlng uniformity in their ~ad0inis-' tpaQiva;ana ~~t~&Walpooe&uze, furn%ahing and publi~~ng'in~o~iaatian-~l~~tO 0ppOrtuuiriea r0r employment and other inforaation~ofvalue in the~Qpevstiou of the syetem,~ and maiataiaing e system for olgaring lsbox between the~esVera1StatQai"

Seotion 490. *In order to obtain the benefits of appropriationsapportioned under motion 4% of thie title, a State shall, through ite legislature,Bonorable Claude A. t"iilliams, Pzge 

### 4.

accept tiie

provisionsof sections 

### 49-49c,498, 499eI+9kof this title and designate or authorize the



### aeet1on&%I. "(a) For the purpose of oartrrying Out the provisions ,ofseotions 

### 49-490,494,49e-49k of this title there 1s hereby authorized to be appropriated after the tiaoal year ending June 30, 

### 1938 suoh sums annually es the Congressmay deem neoessary. The annual appropriationunder seotions 

### 49-49~~J&l, l,%-49k of this tit3.s shall deeignste the 

### amountto be appOrtiOnedby the Soofal Seourity Board among the several States in the pr,oportion which their populationbears to the total popnlatfon of the States of the United States aooording to the next precedingUnited States oenans, to be available for the purpose of establishingend maintaining systems of public employment offloes in the aeveral.Statesand the political subdivisions thereof in aooordance ,withthe prorisfone of se&ions 

### 49-490, 49d, &9e-A9k of this title

. . . .*

a 

### 1935 the Legielatureof this State enacted into law I& B.~

Ho. AO7,oreetinga State system of.publlo employment otrioeq. &th.Leg., Reg.~Sess$on,,p. 552. Before setting out the per,tinent.provisions of said H..B. No. 

### 407,we~reter to the eppargenoy

clanse.thereof,same being Seotion 8, which explains the purpose of its passage* Said emergenoy~oleuse reads as follows: ,.

*The faot that under the present laws the State of Texaa is not permitted to avail itself of the benefits-of the Wagner-PeyserAet approved June 6, 

### 1933 (48 Stat..l'l), U. S. Gode, Title 29, Seation 

### 49) aad the further faot~ that~the State of Texas wlL1 

### 'lose alithe benefits of said Aot on June 

### 30,1935, unless in the meantime the Legislature of this State shall have enaoted a law aocepting the provieions of said Aot, and the further faot that unemploymentof Texas oitieens is the most distressingproblem OMfronting this State at this time,

. . . .vI

.

Honorable Claude A. xilliams, Page **5.**

We quote the first three Sections of 11. B. **407,** supra, (ooaifit3a **.a8 Article**  **5221a-2 Y.**  **A. C.**  **5.)** as follows:

*SeatIon 1. The State of Texas aooepts the pro&ionr, of the Wagner-Peyaer~Aatapproved June **6 1933~** **(I+6 Nat.**  

### 113,u; ~5. &de Fitle 29, 8eotion **491** 'an~aotto provide for%he establishmentof a **na** tionaZ,

empXoymentayetem 

### and r0r oooperationwith the statesln the promotion Of auoh system, and 20% otherpurposes,* in conrorBnitJr with Seotion 4 thereor, andwill observe 'andaoaplpwith the requirementsof said Aot,

~Wea. 2. The Bureau oi Labor Statfstioa IS hereby designate% and aonstftuted the agenoy of the State of Texas for the purposes of suohAct. Said Bureau, its offioersand employees, are hereby g%ven full power to cooperatewith all authorities of the United State's having powers or ~xluties under such **Aat ena**  to do and perform all things neoe8sar.y to seaure to the 3tate of Texas the provisions ai.. suohAot'la the promotIon and malntenanae of a eyetem.o'f publloWaplo.vmentotfioas.

.-!

**naeo. 3.**  There,~ia hereby createdwithin~the Bureau of LaborStat5stics .a~.ditision to be kuown as thea Texas~ State Employm&t:Servioe, reaponsible~ fora~~nistering a byetern ai public employment offloes2ar the purpom of assisting employers to 80oure employeea,and workers to secure employment. The Coui&vsioner**~of**Labor **Statietloa** is aathorired an& aXFesti3b

to establish such Otiioss in-auahparts oft fhe~atate as.he deemsmaeasaxy a'na to presoribe rules and ~regulatloue not Znoansistentwith,anp of theprovisions of this AaGm~

Subsequently, the Legislature enacted further legiSlation oonoerningthii **Texas State** **’ IFmp,lOpment** **Service** (emplOYment ofriees). Suoh legielatioa, codified in Y. ALC., 8: as Article 3221b-10,now

### reaaaa8 follovet

"(a) Texes State %nployment Servioe, es proviUed for underAct of .theForty-fourth Legislature,Regular Session, Chapter 236, page 552, is hereby trensierred to the Commission as a division thereof. TheHonorable Claude J+ Williams, Page 6.

Conmission, throu@ such division, shell establish and maintain free publio empLogment offices in such number and in such plaoee as may be necessary for the proper administrationof this Aat,.and for Purpose8 Of Performing suoh duties, as are within the Purview of thelsot or Oongrees entitled 'Iln Aot to provide for the establfshaent of a national employment system and.for cooperationwith the States jn the Proniotloa~~of

such-a stem and for motherpurposes,' epproved June 6 19 3 29, Seation 49 10) ? , r48 Stat..IX&f V.S.C., Title
es amended, St shall be the dusty Of the goz~~&~si.on to oooperate with any oftiOial 

### or agenay of the On&ted States having powers or duties under the provialone Of the said Act of Congress, as amended, and to do and perform all things neoessary to mcuTe to this State the benefits of the saidAct of Congress, as amended, in the promotion and maintenanoe of a system of public employmentoffioos. The provisions of the said Act of Congress, as ascended, ere hereby acaeptedby this State in oonformitywith Se&ion 4 of saidAat, and this State will observe and comply with the requirements thereof. The Texas Unemployment Compensation.Commlasionis hereby designated ana oonstii tuted the agency of this State for the purposes of said Bat. The Director, other offiaars and ezployees of the Texas State VmploymentServiae shall~ be appointed by the CominlsslOn in acoordenaewith regulationspresaribedby the Direotor of the Vnlted States &ployment Servloe.
*(b) Ffnanctng: All monies received by this Sltate under the sal&Aot of Congreea, as amended, ehallbe paid .into.~the speolal Wzployment BerVioe Aeeeunt' in then

Vnemploy~~nt.~ompensatibnAdministrationBund,,ana said moniee~are~herebymads avallable to the Texas Vnemploymsnb CQmpensatiOnCOmmissionto be expended as provided.by this BeOtlOnand by said l&t of Congress, and any unexpendedbalanoe (jffunds.approprlatedor allocated either.by the state of.Texae or the Rederal @oternment to the Texas State DeploymentSerriOe as a division of the' Bureau of Labor Matistioe, is hereby, upon the passage of this Aot, transferred to the speoial
*~nployment Service Aooount' in the VnemPloYment CompensationAdministrationBund. For the purpose of establishingand maintaining free publia aPloYotant offices, the C~m~i~~ion is authorized to enter. .

Eonorabla ClaudeA. Killiaras, Page 7.

into agreementswith any politioal subdivisionof this State or with any grivate, and/ornon-profit organization,and aa a part ofany suoh agreement the Gommisaionmay aooept monies, clervluea, or quarters-ae’a ,oontr,lbution to the special ~?&nployment Service Aooo~unt~

I*

In the departmentalappropriation bill, the 47tihLegislatureappropriated15150,OOO for tho year ending August 31, 1942 and a like amount for the year endingAugust 31, 1943 to the Texas UnemploymentOompansation Commission for the purpose of maintaining the Texas State Rmployment'Servloe~(employment offiaea),Aats 47th Leg., Reg. Session, S. B. 423, p. 1284. This money waa appropriatedby the 47th Legislature "To be used to matah Federal Funds allocated to the State of Texas under the Wagner-PeyserAct,

. . . .v letter, supra). (ruuy set out in YOUR

Shortly betore January 1, 1942, the President of the United States issued a proclamation whiah had the effeot of federalizingthe Texas State tiployment Serviae. It appears that on January 1, 19&Z, the effective date or the proolamatlon, all of the employment orf'iaes of the Texas State Employment Service were converted into Federal Agenaies, wholly maintained and operated by the Federal Government. At the same time, it appears that the Federal GovexllPnent ceased granting f'unde to the State of Texas aa providedby the Wagner-PeyserAct and
as contemplatedby the State laws creating the Texas State BnploymentService and the departmental appropriationbill.

As we understandyour question, you wish to know if the Texas UnemploymentCompensation Commiesfon aan use the monies appropriatedby the 47th Legislature to wholly iinaNe and maintain a system of employment offiaes (said funds not being matahed by the Federal Government 

### underthe WagnerPeyser Aat) eeparate and apart tram the employment offioes
now maintainedand operated by the Federal Government.

As la readily seen, the Federal Government originated the movement to areate employment ofiioes and to maintain this type 0r employment serviae. Wagner-PeyaerAat, eupra. In all the laws enaatedby our Legislature, it is apparent that the Legislature relied on the Federal Government to match the funds appropriatedby the, State ror the operation of the Texas State Rmployment Service. We find nothing whatsoever in any of
our State laws on this subject whiah evidences a legislative intention to operate the Texas State tiployrzant Service on State funds alone.Honorable ClaudeA. Willlans, Page 8.

Since the Legislature appropriated the funds in question RTo be used to match Federal Funds allooated to the State of Texas under the Wagner-PeyaerAot,

. . . .,w It follows that the funds oan be used in no other manner. You are therefore advised that the appropriationmade by the 47th Legislature to the, Texas UnemploymentCompensation Commission ior,the purpose oi operating a system of employment atfloes beoame inoperative
on January 1, 1942,andwill so remain until euoh time, within the life of the appropriation,as the Bederal Government ohoosee tro

match the State funds as provided by law. Your question ie answered in thenegative.

Youra very truly

ATTORREY QEWERAJ.. OF TEXAS 

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