. . 

## THE ATI-ORNEYGENEI&I& OP TEXAS

day 14, 1948
Hon. Qeo. H. Sheppard Opinionlo. v-577 Comptroller of Public Accounts Austin, Texas Re: Use of funds given by Federal Oovernmentto State Department of Health for matching pllrposes under 38: ployees Retirement Syrtem Act.. Dear Sir: Your request for an~opiniiiiiIs as f0110w!?4:

“The question has arisen in this department as to whether the Federdl funds granted to the Health Departtint from which salaries ‘nvlybe :paid‘shall be used for matching the StB$e*s contribntlon for such employees to ,the,RetirementSyrtem. I shall, therefore, thank you to advise this department whether such Federal funds shall be transferred-~ by the Comptroller to the Retirement Systemfunds bs provided ior under the Retirement ActO 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 memberof your office that the Federal funds granted to $he Health Department from which salaries maybe paid refers to the moneygiven to the State Department of Health bg the $d~lCO~ernment in accordance with the provisions of

Sec. 246, after certain conditiona andbudgeta;y’riq&ements have been metby the Health Departmentto the satisfaction of the Surgeon General of the United States. Thefunds granted the State by the Fed- 6 era1 Government through the Surgeon General are to beI

.

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

used in tarrying out the broad objectives of venereal diseasei:tu$er.culosis, andmental disease prevention and cure and coping with special health ptioblems 

### underthe provisions of the Public Health and Welfare lava of the liational Cto.vernment

. TheSurgeon 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 meanany depatimer&, commLssion, institution, or, agency of the State ffovernment.. % Qmployee’ shall meanany regolaFl> rpppointed officer 

### oremplope in a~departmentof the State

. . .

‘3, oi T&8 a

It %aployer 18hall meanthe 

### State

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

### part, aa follovsf

“The amount contribtited by each member to ~th

‘4Retirement System ahall,be five, per cent 5s) of the regular annual compensation, paid. to each member. Theamouut con- - tributed ‘by’.the State of Texar to the Rstirement Sagternshall not exceed during any one (1) year five per cent (5s) of salaries of alk*members, disregarding 

### salaslsain amounts In exCe 

### sof 

### ThreeThousandSix HundredDollars P

$3,600), provided the total amount contributed by the State during a&yone (1) year shall at least dqual the total sslount contributed dwlng the same year by all membersof the Retirement Sy8- ten; provided further that all contributions madeby the State ahall 

### befroa and charged to the resvective fund8 aDta?oDFia-
~ ted,, a thHon. Gee, H. Sheppard, page 3 (V-577)
salary OFcompensation 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* Promand after the date of the establishment of the membership and full operation of the Retirement System createdby 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 sumequal to five per cent (5$) of the t&al compensation paid to the said respective employees whoare membersof said Retirement System an&whose comoensation is paid from funds directly contpolled by the States Thhc. F4t.nf.n RnnnAnf 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 monththe total amount of compensation paid such memberof the Retirement System, andthe State Comptroller shall therewon transfer five per cent (58) of this amount fromthe said respective fundg from which said employees are ~&ig to Fe State Employees Retirement Fund; DDo @mphasis ours) Weare ‘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, andare 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. Webelieve they are State funds vithin the purview of the underlined portions of the RetlremontAct andmaybe utilized for matching purposes under the tsrms of this Act.

The sourc4 of the funds out of which amiruI1~ 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 tkwfact 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 HeaLthandWelfara laws of the United States, 42U.S.CA,, 944. 246, ny be utilized for matching parposes by the Comptroller of Public Account~sunder the terms of the State hployeer Retlrenent Act. Art. 6228a, V. C. 9. ~Yoursvery truly, A?X'OREEYGEIURAL

OFTEXAS

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