E ,kTTORNEY GENERAL 

OF %%CXAS 

Honorable Ned Price, Chairman 

Industrial Accident Board 

Walton Building 

Austin, Texas 

Opinion No. WW-623 

Re: 

Dear Judge Price: 

Does the Industrial 

Accident Board have 

the authority to pay 

necessary court costs 

in defense of the 

Second Injury Fund 

created by Sec. 120-2, 

Article 8306, Vernon's 

Revised Civil Statutes, 

and may the Comptroller 

Issue warrants for the 

payment of such costs? 

We have received your letter of April 22, 1959, 

in which you request our opinion on the following question: 

"Does the Industrial Accident Board 

have the authority to pay necessary court 

costs in defense of the Seoond Injury 

Fund created by Section 120-2, Article 

8306, Vernon's R.C.S., and may the Comptro!.l.er issue warrants for payment of such 

costs?” 

Section 120-2(a), Article 8306, Vernon's 

Statutes, providing for the Second Injury F'und, 

as follows: 

Civil 

reads 

"In every case of the death of an 

employee under this Act where there Is 

no person entitled to compensation surviving said employee, the association 

shall pay to the Industrial Accident 

Board the sum of Three Thousand Dollars, 

($zkOC$),k; be deposited with the TreasState for the benefit of said 
Honorable Ned Price, ChaIRnan, page 2 (~~-623) 

Fund and the Board shall direct the 

dlstrlbutlon thereof." (Dnphasls 

added) 

Attorney General's Opinion ~-1261 to Honorable 

Sea. Ii. Sheppard, Comptroller of Public Accounts, 

dated June 10, 1948, reads In part as follows: 

"The 'Second-Injury Fund' is 

clearly a trust fund and should be 

deposited in the Trust Section of 

the State Treasury. It may be dlsbursed without specific approprlation as it does not come within the 

constltutlonaI provision (Sea. 6, 

Art. 8, Const. of Texas) which provides that Ino money shall be drawn 

from the Treasury but In pursuance 

of specific appropriations made by 

law; nor shall any appropriation of 

money be made for a longer term than 

two years."' 

Since the Second Injury Fund Is a trust fund for 

the use and benefit of those employees entitled to compensation therefrom, we are of the opinion that the 

members of the Board must fulfill the function of the 

Trustees of such fund In directing "the distribution 

thereof" as well as defending the fund Itself from unwarranted raids by Improper claimants. 

The Supreme Court of Texas, on June 28, 1950, In 

Cause No. A-2642, entered judgment ln the case of Mlears 

v. Industrial Acaident Board, 149 Tex. 270, 232 S.-d) 

b71, and ordered th t 

paid from this fund? 

the costs there Involved should be 

"It Is further ordered that the 

Petitioner, F. M. Miears, do have and 

recover of and from the Second Injury 

Fund administered by the Industrial 

Accident Board of the State of Texas 

all coats in this behalf expended in 

this Court and the Court of Civil 

Appeals and this decision be certified 

to the Mstriat Court for observance.* 
Honorable Ned Price, Chairman, Page 3 (wW-623) 

In so doing, the court has established that payment 

of court costs was a necessary incident to the trustees' 

protection of the fund, and, therefore, was a proper use 

of the funds there deposited. The Supreme Court has said 

that court costs should be paid from this fund. To our 

mind, the question has been resolved, and the question 

is now settled law, 

You are advised that it Is the duty of the Indus- ' 

trial Accident Board to pay court costs incurred In defense of the Second Injury Fund from such fund, and is 

the duty of the Comptroller to issue warrants in payment 

thereof. 

SUMMARY 

It is the duty of the Industrial Accident Board to pay 

court costs incurred In defense of the Second Injury 

Fund from such fund, and it 

is the duty of the Comptroller to Issue warrants in 

payment thereof. 

Yours very truly, 

WILL WILSON 

TIM:zt:rrr 

APPROVED: 

OPINION COMMITTEE 

Geo. P. Blackburn, Chairman 

L. P. Lollar 

Leonard Passmore 

Joe Allen Osborn 

James Daniel McKeithan 

REVIEWED FOR THE ATTORNEY GENERAL 

BY: W. V. Geppert