9 

OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

Texas Unemployment Compensation 

Brown Building 

Austin 19, Taxas 

CoMnie8lon 

Attention: IEr. Tom Bullook Hyder 

Dear Sir: Opinion MO. O-7404 

nd related ;uestions. 

this departme 

Unemployment 

merit sertloe 

quested ths opinion of 

ire to the Texas 

latering an enployanoe with sereral 

s stated In your letter, 

naotment returning to 

by the atates to the 

, 1942, and that as a prersqulsof this department on the fob 

the Texas Uncunplo~ent Compensation 

asa8 Unamplogment Corrlpensatlon Camauthority to submit a plan and admlnismplopent Senloa in l ooordanoe with 

une 6, 1933 (48 STAT 113) aa amended? 
i0 

Texas Unemployment Compensation Cortission, Pace 2 

“2. Does the Texas Unemployment COL ensation 

Aot give the Texas Unenployment Compensat s on Comalsrlon the authority to s&nit s plan and adinlnlster a State Employment Se~ioe whloh would ocxnply 

with the requirements of the Servloemen~s Readjustrnent Act of 1944, as amended? 

“3. Does the Texas Unemployment Compensation 

Aot give the Texae Unemployment Compensation Canmission the authority to operate a State Rmployment 

Service as oontemplated in the Labor-Federal Seourity 

Appropriation Bill, 19477 

The Congress of the United States oreeted a UnSted 

States Employment Eervioe in order et.0 proluote and develop a 

national systan of employment offioes for men, women, and 

ju#dors who are legally qualified to enge8e in gainrul oocupations,. to maintain a veterans’ servioe to’ be devoted to 

scouring employment ror veterans, to maintain a rarsi plaoement 

service, to maintain a public employment senior ior the Distriot of Columbia, and, in the manner provided in seotions 

490, 49d, 49e--49k of this title, to essist in establiahlng 

and maintaining systems of pub110 e;lploymcnt ofrioeo in the 

several Staten 6r.d the political subdivisions thereof in wiaioh 

there shall be loo&ted a veterans’ amploynent service. The 

bureau shall also assist in ooordinating the Rub110 employment offioes throughout the oountry.and in iaoreasing their 

usefulness by developing and prescribing minimum standards Or 

effiolenoy, assistin& them in meeting problems peoullar to 

their looallties, promoting uniformity in their administrative 

and statlstloal prooedure, furnishing and publishing Intomtlon as to opportunities for emploJrment and other Information 

of value in the operation of the system, and maintaining a 

system ror olearing labor between the eeveral States.” 29 USCA 

49b (48 STAT 114). 

The primary purpose of establishing suah a bureau 

was to organize and put into erreot a mr0M system 0r employment men-iae throughout the United States. This service 

was to be operated by the various states with assistanoe, 

finanoial and otherwise, frcsn the federal government. In order 

to obtain this asnistanoe or benefit as it is oalled in :he 

Act, each state was required through its 1OSlslatUre to aooept 
11 

Texas Unemployment Compensation Commission, Page 3 

thr provisions and oonditlons or this Ao t and l aoh state was 

to deslgmte the stats agenoy to oooperatr with ths Unltod 

3tates B@oyxent Sonloo. Purthermore saoh #tat@ wa8 mquirod to submit a plan In oonnootion with r@Osltllrg this 

as8lstsnoe. 

‘Pbo 8tato of Tssas rooepted them prwl8lons and 

oondltions sontalnsd In Cs STAT ll3 In 1936 by an aot oodifled by Vernon’s as Art1018 5221bw10. 88 quote iruii a part 

thereof as folluwsr 

*Texas State Xmployme.;t Servloe, as provided 

ror under A& 0r thr ?ortprourth Lsglslaturs, 

Regular Session, Chepter 236, page 552 is hereby 

transferred to the Commission as a division thereor. The Conmission, through suoh dltislon, ahall 

establish and maintain rree pub110 employment 

oifloss in suoh number and in rush plaoes as may 

be neoessary tor tha DroDer administration of this 

Aot, and r0i DUmOSOSv OrekrOminp: suoh duties as 

are w’ithl th purvl 888 entitled ’ r the Aot or COnRr 

Ai A$ to srZod8 ror the establlahment 0r 

a national smDloyment system and for OooDeration 

with the Stat68 in the prmotlon of suoh systam and 

ror other purposes,’ approved June 6 1933, (48 Stat. 

113; u. 8. c., Title 29, Seotion 49 fo)), as mended. 

It ihall bs the’duty of-the Cos&ulsslon to oooperate 

with any oiiloial or sgenay or the United States 

having powers or duties under the prorlslons of the 

raid Aot of Congress, 88 amended, and to do and perfona all things neoessarp to seoure to this State 

the benerlts of the said aot or Congress, as amended, 

In the prcmotlon and Pralntenanoe of a systsm ot pub110 mployment orrio88, The palslons or the said 

Aot of Congrsss, as amended, sri hereby l oospted by 

this State In oonformlty with Seotlon 4 of said Aot, 

and this State will observe and oomply with the rsqulrements thereoi. The Texas Unamploym nt Compensation Commission Is hereby designated and oonstltuted 

the l genoy of this State ror the purposes of said Aot. 

The ixreotor, other orrloers and employees ot the 

Texas Stats kployment Ssnloe shall bs a pointed by 

the a&-tisslon ln aooordanoe with regulat P on8 prosoribed by the Dlreotor of the United States Saplop 

ment Senloe. s (Baphasls added). 
Texas Unemployment Co~tipenaution Commlsslon, i:a.;e 4 

It will be noted from the fOregOin(J that the Texas 

Legislature to the iulleet extent aooepted the provisions and 

oonditlons set forth in the federal sot and deolgnated the 

Texas Unsmploymsnt Compensation Oc~aisslon as the l gensy to 

operate the employment senioe in Texas md as the agensy to 

oooperate with the United Ststes irPploymont Serrioe in every 

respeot. The answer, therefore, to rour ilrst question 1s 

that the Texas Unemployment Co;.gensation Candssion oan administer an employment senior in aooordanoe with the provisions of the Aot of June 6, 1933 (48 STAT 113) and oan submit 

a plan to the proper federal agenoy in oonneotlon therewith, 

. 

Sinoe the oreation of the United States mploymont 

3ervioe, the funotlons of this bureau here been oonsolidated 

at dlfferont timeo with the duties of various departuentc of 

the federal goverment. such funotions were under the supervision of the Cheimian of the Kar kanpower Commission from 

septomber, 1942, to Its diccolutlon in 1946. 

It wcs durin; the tine that the funotiona of tho 

United States .%ployment Yervioe was under the supervlslon of 

t5.u :Yer !‘anpowor Zormlssion t!lat the SonCress of tho United 

statea in l;jI+L+ enaoted w>mt is PCOWTI as the Sorvice-en*s 

2809 justnent Act. (29 u;;:.l ~;cc. 693). The ozploy~ect service 

feature of this .:,ct yia3 ed~::iristcred by e board ecoistic& the 

United :‘tates &plogwsnt : crvice. The dutiao ossigacd umcr 

this Act oorrespondad with thoce of the *\ot of Juno 6, 1933, 

with tho exoqtiorls that it pertained particularly to vetorans, 

(29 USCA Sec. 695a). In other words, the fumti0n.e of the 

United States %ploynent Service wae broadened so as to deal 

specirloally with veterans. 

Upon the dissolution of the gar I..anpOwer CO&ission, 

th4 functions of the United States %~plOyment SePvics wee transferred to the UeEartment of Labor, and it Is through this depertzent that th.e fedoral ~overr-snt is roturnlng the employment 

aervloo to the statas. Ihe Labor-Fe;<eral Seourity A ~propriation 

aill, 1947, whloh provides ror the return of this service to the 

states provides in part as follows: 

nFor grents to the soreral States (including 

Alaska and Hawaii), beginning Nov4akb4r 16, 1946, 

in aooordaroe with tha nrorisiohs of tho Act of June 

1932, as amended (29 U .s. . 49-491) , and ror 
13 

Texas Unemployment Cmpensatlon &mission, . age 5 

oarrrlng into err& motion 602 or the senior- 

~en’s Resdjustumnt Aot or 1944, inoludlng, upon 

the rec,urst or my State, the payment or rental 

tor spaor made avallablr to suah State in lieu 

o&ran;” ior much purpose, $42,8??3 125 of whloh 

shall be available to the 6nlt:d States 

~%np&ment Servloe r0r all neoeesary expenses, in- 

’ oludlng personal sorvloea, in oonnootlon with the 

operation 0r ~ployment orrioe ra0iiities and 

aenioes in the Artriot or Coluubla: Z’rovlded, 

That no State shall be rewired to rake any 

‘<’ aomowlatlon as Provided in motion 5 (a) 0r 

said 7rot or June a. * 05 amended; prior to 

1 1 1946 

193$ 

: Provided further That notwlthe~aklldg the provisions of seohon 5 (ai and 

section 6 of the Act or June 6. 1933 as mended, 

the Seorotary or Labor shall iron t ‘e to time 

certify to the Seoretary or ‘the Treas?lry ror payrmnt to ecoh State found to be in oanpllanoe with 

the re~ulrenenta ot the Aot of June 6, 1933, as 

amended suoh amounts as he deternines to be necessary foi the proper and erriolent admlnistratlon of 

its pub110 employment orflces. 

Wn Kovenber 15, 19&b, the Secretary of Labor 

shall transfer. to the state arrency in eaoh State 

designated u&r motion 4 or the Act of Cori~mss 

approved June 6. ‘1933 as amended as the agenoy to 

administer the ;itat&lde eyetea & publio employnent oftloos in eooperutlon-with the-united Statbe 

mplogment Servioe under said Aot, the operation of 

State ard looal pub110 employment oifloe raollltles 

and properties w!lloh were transrerred by suoh State 

to the Federal Government in 1942 to pronote the 

national war errort. . . .” (tiphas added). 

It will be noted from. readinS the above r,uotatlon, 

with particular notice to the emphasis supplied, that the 

oondltlons upon whloh thl; employment service is to be returned 

are prlmrlly t’.ose sst rorth in the kot of June 6, 1933. A8 

heretofore mentioned, the ‘fexas Unemployment Cmpensatlon 
Texas Ummployuent Co:.ipensatlon Coml:~slon, sage 6 

. * 

14 

Conmission has been erpeolally designated to oooparate with 

the rrderal government in this reopeot. Seotlon 602 or the 

Ser’vloaen*e Readjustment Aot of 1944 prwldea that oertaln 

amployeea on the 8tart or the looal unployment senlae should 

wmaa;ly devote their servloea to the dutlea preaorlbed In 

. Thlr IO mroly requiring the looal amployment zarvioe to hava some of its amployaw~ to wzpsolalIza~ In aiding 

veteran8. ‘&Is ita oertainly not repugnant to any authority 

given the Texas Unemployment Qompeneatlon Commlsalon In operating an omplogmeat rervior. we have round nothing In thee 

rederal aots would prevent the Texas Unemployment Compensation 

Oormiaslon iron subciIttln8 plans and admlnleterlne an employmant rervloe in aooordanoe with the provlelons of the aotu 

mentioned in your aeoond and third questions. Ye therefore 

amwer these cuestlona In the artlrmatlve. 

Youra Youra very very truly truly 

ATT-7 G3f?XAL G3f?XAL OF OF TSXAS 

Assistant