OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

a-auhfaa 

Awbu”~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%oxi of, %he.Taxas 

Unemployment Coapensation 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 Of 
the 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 employment 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 atfeotiYe at the close of business Doaetttber 31, 

,I%$, oopy of,said exeautive order being attached as 

exhEbft . cBw . 

~' 

*In aooor9anoe sith the above telegram and exeoutiva order, the several ststa end territorial 

e,nploymant~aervfoea u-are establfehsa a8 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~theTparpose of mawhIne;-State land local funds,, 

MS disaontinuea as 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 Cln appropria1;lon’ bf. #lyJ,GOG: 

nrlV”be keA to metoh FMeral ‘Fands kI36oafed 

to the state ot Texas undsti the FZa@M?-F4gsar~~&t, 

idr~$he~~ &ayzent of rsalairies anil other. na&58salysipensse~ in ~oonnsatlor. 571th the operation‘rr?d.maintendnoa~ of a Sbste .syetotn of dttplbpnnt Offlbse; .j. 

salatilsa 86 ISO ~puid scoording to -kim eJ.qsdliioabfons 

of the $ooial Seonclty Borwd to emplogee?! aelebted 

and rated 'nnder the p4rSormel plan In effkct ~between 

the $oaisl Secwlty.Fonrd srcl the StRte d.f?st?Cy;* 
Honorable Clauda A. William, I?ag;E 3. 

Vernon's Annotated Civil Statutes, and to w,?.for 

the operetion~thereof the aforesaid appr~opr:itH&n 

provided by the 47th Legielatuve.N 

.' It appearsthat the oreatlos of.emplograent Offioea 

was originated by the-Congress of the United Statea in 1933 

with the passage of the Wagner-Peyser Aot, 29 0. S. C. A. 25. 

We quote cartain p]Po9isiona of said Aot as follows: 

Seotton 49. *In 'ordw? to psolaote tbs .estabi.iahsent and maintenauoe of a national aystea of public 

eolploymnt oHioas there is hereby meeted a bureau 

to be known as the United States Ehploy0ent Servloe.* 

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 ,who ar.e.legally qualified to ~. 

engage In gainful oOoapatioaa,~to~0aintaln a reterane( aerlio(B t,o..be devoted to aecaring ~employment fos:~vetemms, to~0aiutai.a ,a-Sarm placement. 

sexvioe,,to ,maintain a public employment eervioe for 

the District of aolwnbia, and, in the m.fmner provided 

in aeotiona 490, 496, 49e-49k of this title, to assist i.n establishing and 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-al80 asslat 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~of value in the ~Qpevstiou of the syetem,~ and maiataiaing e system for 

olgaring lsbox between the~esVera1 StatQai" 

Seotion 490. *In order to obtain the benefits 

of appropriations apportioned under motion 4% of 

thie title, a State shall, through ite legislature, 
Bonorable Claude A. t"iilliams, Pzge 4. 

accept tiie provisions of sections 49-49c, 498, 499eI+9k of this title and designate or authorize the 

aeet1on &%I. "(a) For the purpose of oartrrying 

Out the provisions ,of seotions 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 Congress may deem 

neoessary. The annual appropriation under seotions 

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

the amount to be appOrtiOned by the Soofal Seourity 

Board among the several States in the pr,oportion 

which their population bears to the total popnlatfon of the States of the United States aooording 

to the next preceding United States oenans, to be 

available for the purpose of establishing end maintaining systems of public employment offloes in the 

aeveral.States and the political subdivisions thereof 

in aooordance ,with the prorisfone of se&ions 49-490, 

49d, &9e-A9k of this title . . . .* 

a 1935 the Legielature of this State enacted into 

law I& B.~ Ho. AO7,oreeting a 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-Peyser Aet 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 unemployment of 

Texas oitieens is the most distressing problem OMfronting this State at this time, . . . .v 
I . 

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 ~Aat approved June 6 

1933~ (I+6 Nat. 113, u; ~5. &de Fitle 29, 8eotion 491 

'an ~aot to provide for %he establishment of a nationaZ, empXoyment ayetem and r0r oooperation with 

the statesln the promotion Of auoh system, and 20% 

other purposes,* in conrorBnitJr with Seotion 4 thereor, 

and will observe 'and aoaplp with the requirements of 

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 suoh Act. Said 

Bureau, its offioers and employees, are hereby 

g%ven full power to cooperate with 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.. 

suoh Aot'la the promotIon and malntenanae of a eyetem.o'f publloWaplo.vment otfioas. .-! 

naeo. 3. There,~ia hereby created within~the 

Bureau of LaborStat5stics .a~.ditision to be kuown as 

thea Texas~ State Employm&t:Servioe, reaponsible~ 

fora~~nistering a byetern ai public employment 

offloes 2ar 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-auah parts 

oft fhe~atate as.he deems maeasaxy a'na to presoribe 

rules and ~regulatloue not Znoansistent with,anp of 

theprovisions of this AaGm~ 

Subsequently, the Legislature enacted further legiSlation oonoerning thii Texas State’IFmp,lOpment Service (emplOYment ofriees). Suoh legielatioa, codified in Y. ALC., 8: as 

Article 3221b-10, now reaaa a8 follovet 

"(a) Texes State %nployment Servioe, es proviUed 

for under Act of .the Forty-fourth Legislature, Regular Session, Chapter 236, page 552, is hereby trensierred to the Commission as a division thereof. The 
Honorable 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 administration of 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 cooperation with the States jn 

the Proniotloa~~of such-a stem and for mother purposes,' 

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 said Act of Congress, as amended, in 

the promotion and maintenanoe of a system of public 

employment offioos. The provisions of the said Act 

of Congress, as ascended, ere hereby acaepted by 

this State in oonformity with Se&ion 4 of said Aat, 

and this State will observe and comply with the requirements thereof. The Texas Unemployment Compensation.Commlasion is 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 acoordenae with regulations presaribed by the Direotor of the Vnlted 

States &ployment Servloe. 

*(b) Ffnanctng: All monies received by this 

Sltate under the sal&Aot of Congreea, as amended, 

ehall be paid .into.~the speolal Wzployment BerVioe 

Aeeeunt' in then Vnemploy~~nt.~ompensatibn Administration Bund,,ana said moniee~are~hereby mads avallable to the Texas Vnemploymsnb CQmpensatiOn COmmissionto be expended as provided.by this BeOtlOn and 

by said l&t of Congress, and any unexpended balanoe 

(jf funds.approprlated or allocated either.by the 

state of.Texae or the Rederal @oternment to the 

Texas State Deployment SerriOe 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 

Compensation Administration Bund. For the purpose 

of establishing and maintaining free publia aPloYotant offices, the C~m~i~~ion is authorized to enter 
. . 

Eonorabla Claude A. Killiaras, Page 7. 

into agreements with any politioal subdivision of 

this State or with any grivate, and/or non-profit 

organization, and aa a part ofany suoh agreement 

the Gommisaion may aooept monies, clervluea, or quarters-ae’a ,oontr,lbution to the special ~?&nployment 

Service Aooo~unt~ I* 

In the departmentalappropriation bill, the 47tih Legislature appropriated 15150,OOO for tho year ending August 31, 

1942 and a like amount for the year ending August 31, 1943 to 

the Texas Unemployment Oompansation 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 appropriated by the 47th Legislature "To be 

used to matah Federal Funds allocated to the State of Texas 

under the Wagner-Peyser Act, . . . .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 federalizing the 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 provided by the Wagner-Peyser Act and 

as contemplated by the State laws creating the Texas State 

Bnployment Service and the departmental appropriation bill. 

As we understand your question, you wish to know if 

the Texas Unemployment Compensation Commiesfon aan use the 

monies appropriated by the 47th Legislature to wholly iinaNe 

and maintain a system of employment offiaes (said funds not 

being matahed by the Federal Government under the WagnerPeyser Aat) eeparate and apart tram the employment offioes 

now maintained and 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-Peyaer Aat, eupra. In all 

the laws enaated by our Legislature, it is apparent that the 

Legislature relied on the Federal Government to match the 

funds appropriated by 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 Claude A. 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-Peyaer Aot, . . . . ,w It follows that 

the funds oan be used in no other manner. You are therefore 

advised that the appropriation made by the 47th Legislature to 

the, Texas Unemployment Compensation Commission ior, the purpose 

oi operating a system of employment atfloes beoame inoperative 

on January 1, 1942,and will 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 the negative. 

Youra very truly 

ATTORREY QEWERAJ.. OF TEXAS 

BY 

Aas1atent 

Ls1J-P