. . 

THE ATI-ORNEYGENEI&I& 

OP TEXAS 

day 14, 1948 

Hon. Qeo. H. Sheppard Opinion lo. v-577 

Comptroller of Public Accounts 

Austin, Texas Re: Use of funds given 

by Federal Oovernment to State Department of Health 

for matching pllrposes under 38: 

ployees Retirement 

Syrtem Act.. 

Dear Sir: 

Your request for an ~opiniiiii Is as f 0110w!?4: 

“The question has arisen in this 

department as to whether the Federdl 

funds granted to the Health Departtint 

from which salaries ‘nvly be :paid‘shall 

be used for matching the StB$e*s contribntlon for such employees to ,the, Retirement Syrtem. I shall, therefore, thank 

you to advise this department whether 

such Federal funds shall be transferred-~ 

by the Comptroller to the Retirement System funds bs provided ior under the Retirement Act O If your answer is in the 

negative, that Is, that suah funds cannot be tliansferred for~the benefits of 

the Retirement System, from what source 

or fund shalf the matching contributions 

be provided? 

re are advised orally by a member of your office that the Federal funds granted to $he Health Department from which salaries may be paid refers to the 

money given to the State Department of Health bg the 

$d~lCO~ernment in accordance with the provisions of 

Sec. 246, after certain conditiona and budgeta;y’riq&ements have been met by the Health Department to the satisfaction of the Surgeon General of the 

United States. The funds granted the State by the Fed- 6 

era1 Government through the Surgeon General are to be 
I . 

Hon. Gee. Ii. Sheppard, page 2 (v-577) 

used in tarrying out the broad objectives of venereal 

diseasei:tu$er.culosis, and mental disease prevention and 

cure and coping with special health ptioblems under the 

provisions of the Public Health and Welfare lava of the 

liational Cto.vernment .The Surgeon General is authorized 

to withhold further payments to the State upon a finding 

that the State’s health authority has failed to aomply 

substantially with either the provisions of Sec. 246, 

budgetary plan8 submittef) by the State “;td approved by 

the Surgeon General, or the regulations . 

“Department”, “Employee”, and “ihployer* are 

defined in Ii. B. 168, 50th Legislature, which is codifled as Art. 6228a, V. C. S., aa follows: 

“Section 1 . . . 

mB. ‘Department’ 8hall mean any depatimer&, commLssion, institution, or, agency of the State ffovernment.. 

% Qmployee’ shall mean any regolaFl> rpppointed officer or emplope in 

a ~department of the State . . . 

‘3, 

oi T&8 a It 

%aployer 1 8hall mean the State 

: Ileo. 8.A. of raid H. B. 168, provides, In part, 

aa follovsf 

“The amount contribtited by each member to ~th 

‘4 

Retirement System ahall,be five, 

per cent 5s) of the regular annual compensation, paid. to each member. The amouut con- - 

tributed ‘by’.the State of Texar to the Rstirement Sagtern shall not exceed during any 

one (1) year five per cent (5s) of salaries 

of alk*members, disregarding salaslsa in 

amounts In exCe s of Three Thousand Six 

Hundred Dollars P $3,600), provided the total amount contributed by the State during 

a&y one (1) year shall at least dqual the 

total sslount contributed dwlng the same 

year by all members of the Retirement Sy8- 

ten; provided further that all contributions made by the State ahall be froa and 

charged to the resvective fund8 aDta?oDFia- 

~ ted,, a th 
Hon. Gee, H. Sheppard, page 3 (V-577) 

salary OF compensation of the emploVee 

for whose benefit the contribution Is 

maQe 0 *I’ (l3mphasls otlrsl 

Set, 8,B. 2.a. of Said H, B, 168, provides, in 

part, as follovsn 

‘a* Prom and after the date of the 

establishment of the membership and full 

operation of the Retirement System created by this Act takes effect, there 1~ 

hereby allocated and apvrovriated to the 

%mployees Retirement System of Texas, In 

accordance with this Act, from the several funds from which the employees benefited bs this Act receive their respective 

salaries a sum equal to five per cent (5$) 

of the t&al compensation paid to the said 

respective employees who are members of 

said Retirement System an& whose comoensation is paid from funds directly contpolled by the States Thhc. F4t.nf.n RnnnA nf 

bustees (meaninn th 

-Y" _"I"" -"-A.. "A 

v --% board of seven members responsible for the operation of the 

Retirement System) shall certify to the 

State Comptroller of Public Accounts and 

ment 

era1 

the State-Treasurer at the end of each 

month the total amount of compensation 

paid such member of the Retirement System, and the State Comptroller shall 

therewon transfer five per cent (58) of 

this amount from the said respective fundg 

from which said employees are ~&ig to Fe 

State Employees Retirement Fund; D D o 

@mphasis ours) 

We are ‘informed further by .a.: Health Departrepresentative that the question of the use of Fedfunds for matching purposes under the Retirement 

Act was submltted to the Surgeon General and this use 

was’ approved. This being the case, the Federal funds, 

once deposited to the State es account or In the State 

TPeaswy under the terms of the Public Health laV8 of. 

the United States, become state funds fop all purposes. 

and intents, and are appropriated by the Legislature In 

accordance with the budget aubmltted by the Health Department to and approved by the Surgeon General. There 

funds are earmarked fop public health uses, yet they am 

State property as title has passed by gift from the Fed- 
. 

Hon. ffeo. H. Sheppard, page 4 (v-577) 

era1 ffovernment to the State. They are fund8 UUd4P control of and subject to appropriation b 

lature for the payment of salaries of ii4 

the Texas Lsglsalth Dopartnmt 

employees as well as fulfilling the other objects outlined in the Health Department budget approved by the 

Surgeon General. We believe they are State funds vithin the purview of the underlined portions of the Retlremont Act and may be utilized for matching purposes under 

the tsrms of this Act. 

The sourc4 of the funds out of which am iruI1~ 

vidual is paid Is not controlling, .It is the fact that 

the Department of Health is charged with the responslbllity of paying an IndFvidual~s salary and that the 

employee fall.8 within the definition of "employee" giv* 

en In the Retirement Act'plus tkw fact that the Federally-donated funds 4r4 Stat4~ovned property and subject 

to direct control of and appropriation by the Legislatwo. They are within the ambit of the Comptroller*s 

authority to transfer a portion thereof (5$) to the Employees Retltiement Fund. 

SUMMARY 

Funds given to the Sa.%tqi Departllsnt 

of Health by the Federal Q&omont und4r 

the Public HeaLth and Welfara laws of the 

United States, 42 U.S.CA,, 944. 246, ny 

be utilized for matching parposes by the 

Comptroller of Public Account~s under the 

terms of the State hployeer Retlrenent 

Act. Art. 6228a, V. C. 9. 

~Yours very truly, 

A?X'OREEYGEIURAL OF TEXAS 

JTBsmv