/ *,’ ------

Hal. Orville s. corpmter CM= %nd lW3iYitfV43 M33OtOZ Texas Unsnploymont

Coqenmtl~ CotmlsslonHon. Orvfllo S. Carpenter,

Pebrunry

3, 1939,Page 2

"Allmnies in this fund shallbe ex?endtid oolelyfor the purpose of defray the cost of the ndministration of t!lls

act and for no otherpur,mse whatsoavoP encl that:
"Nlmonles in iAl fund shallbe deposited,administered,and~sb~edinthe 8anmmannor and under the eaw oondlticma andreIqulramantsalllepwrridadbylawr~ other spoclalftnxla In the State

Treacmry."

aompamation law approved bytha Bawd.tmdg Ti8lo JX, swh amunta as tbs Ibard tl&omlnm~ .,' :,: ..~ ci to'benaaessary

for the ofeuahlardurio~the fi? 

### persdtpinlatratloa .,,a.. ewlyearlnwhiah suuhpagnrsntlsto homade. The Bosrd'a detaw mlnatlm shall **be** basadctz (1)tha population of the st%te3 (RI an estlmats of the numbsr &~~o~ymoovered bytbe.State lsw and oftha

edu&n.lstratlcm

orsuoh lsw othes fwtora aa the Boa-dAna.

It 16 apparent

that underboth seationIs(a) or the Texas Unemployment Canpensatlm Aat and Title 3, Section

**308(b)** of the FederalSoaialSeauzity Aat that =the coot of the admi&&ratlmP' of the AOt shallbe defraysdimnthe tile8 in the specialfund*lion. OrvilleS. Camenter, Fobmmry 3, 1939, Page 9

There Is no fund in the StnteTreasury other than t.he

nth~inlctmtion

fund le~lly available for metIne the "cost of the ad&nIstmtIona of the TexasUntmployzmt Corr-xrsation Act. Both Fcrleral

and State laws directly and ex- ,7lIcltly

statethat "the aost oi the administrations is to be ,?aid

out of the adminlstmtlanfund. The quest&ax to be oonsldered

Is whether

or not oourt ooats luaumod lnlltlgationbroughtroroolleatlon ofddllt~uantmu~- trlbutlons

undertheaotarepropar3yineiu&la"tM .~ 'oost of the admlnlstmtl~"ofthe law,am¶therob p(v. ;bztgta&fthe speoialadmitllstmtlan fund oreat

ei un~

.

While the authorised expandlturea

out of tbs administration

fund al the Unemployment C~ensation **Aot** are not set foxth In minutedatafl. au Is eonerallyth@ aane for admlnlotratS.ve funds Sor otherState demrtmentswhose entireap,pro*atIonco88 frcm statetunds, oertafn

provisions

of the aat lndioate a legi&atIve intent that oourt oosts and **fees** resultlug m lIt%gatlon under the act are gay-able out of the admlnistra-..-

Eon. Orville S. Corpxter, Februwy 3, 1939, PaEe 4

tion rune. The Texas Unfmploynent Cozpensetlon

Act expressly

prcm5Ces

in Section17 subhead (a),that 8n Asnlstant

Attorney

Generalas&ned to the C&salon shallbe pai& out of the opprcpriation fund "as well as any otherqusllfled attorneys

who are reEular4 eanployet? by 'the Ccmrtis~ion.~

Said seotion

reads as follorasr ~*fnanyolvilautlcmtoenioroetba pso-
. . .~ vlslms~ortbie **aot** the Qomndsrrlan and the state shallbe represented by an Amistdnt **At-,**

- Wmtlcm 14(b) der,ls with the repreaentatlaI of the Cmnlsslon ln bourtc It protidos that in regardEon. Orville S. Carpenter,

Pebru-ry

2, 1939,Pace 5

to the collection

of.contributlons

Ymounts duo ahall be czLla3,ed

by civilaction in the name of tile State 33 .4%kxney

General+ *'*.*
The Act thus stipuhtes that the Corm~sslon pay for legal services rec,ulre&

fn the a&Z.nlstratlon of the Act. If ottorney fee8 arc a log%oal

exmse OS the Ccmuission,

it would dollarthat other costsof necesSW utitgath, ti0u~1iofE 0avt 003t~ aa 0rri010.ft36~, arealsootithintlnoaParegs~ofthe*costofadralnim~ ~'( fiaa". The fact t&& the uttomey of the Ccaxaloslon, .+. iaoludfngt&~slstantAt~yDeaoral,isto bepaid by the Ocemlssiaa

fer his aerdees is l.nCloatlve thab all eoets of llt2gatla Sre to be pafd out of the a&&:~ lstration

alla* ,,,,

We ~buve

ullatlod

to the iaot that thaw 1s ng. :

oennary or sultrrble Ii@ that ,en&* * + The Ocmm.tsalon sha.ll tIetee it& owa cvgpslizatl~ eeflure.* &al methods of proc

,Thel&titUde

gliwntbs OemU&m U&W SW.8 sectloa

la.regarQ

to aeoessary

ar suitable

expmdZturen ice properadm3nlstratltna qxpMns the abeewe of partioular

fund for the payment02 court costs. Y It 8 our opinion

that the pow& and authority eiven%e Cow missian

in this sectian SUJQClTt8 the theorythat thei tena "oostof administratian" as used In the Federal and StateActs is all lncl+&vqas to expense items and would ooveroourtcostswhleh In tpeanselves are neoesaary

Ed penae. We note in your letterreference to the polluy of the Fe&era1

SocialSeatit Boardprohibtting #ants to Statesfor ""g adninlstrat fve p~rponos mFhere

other fun&sare availala for au&k purpose. This policyis, :

EIOO. 01?&.llC S. C;-:rpenter, Pebrwry 3, 1939, Page 6

grouncadu?on actual aval3.~billty of other funds. Mitcntion is callee to tho o;)proprlat;tion sots of the State of Tesas for the two years onairy: August 31, 1938, en& fhu~‘;"t 31, 1939 (1937

hota, Chapter 504, Senate Iii11 No. ; Particularly

to Item 13 in the approprintlon for the ofrioe of the A%tcrney Ganoral providingfor the atzount of $2500.00 in enoh of t!ic yonrly periods ending Aqust 31, 19%. am? Awt 31, 1939, to be appropriated for "court col;ts

In OivLl CQS8f.t~. zheamualge~~miLapproprlatlaupledetoths AttormyGeaeral*s lkqwtmmtlsaot available fortbe pa-t. of oosts la eases broughtto enfoms ths provlmat Ccmpensationdatwereaat ooaalbcnradinoalmla~ iag the neae5ssry

tuuntat of the aaau6lapp~tlua rar =oourt005t5 ia olvll wsea" or ,tbo **Attarxmy** G@aerQl's fmpsmwtr, '~~~:Furth@uaux=&

lii'the aase of fit&s &pa&mats whbrothe admla2str&mofthe lawlnmlve8 a t&sable ruma& of **lltigatioa,** notabw the To.xas,Bl&nmy Depax'& me& Tezas J.&quor

Control&nrd and Texas RalpPall Cot% sdssfon,apeolsl funashfwebeem proVlW Y latureout oi which it 1s ex,pressl.y stats& the -ah hat tb oosta or litigation

are to be pai&, The Attorney Gsneral*s Dspsrtmsat

has as a oonseqt~enue never aought

or been giw en an appropriatlan sufflialent

to taksaara of the oourt aostaor aivll oases incident to admlnfstratioa 0r t3da atpmiie8. It has,moreover,rell&uponthe general pollcpof the Legislaturs to inolude

tim mart ooste ama the other itemsof adninistratlve oosts of the vaw loll5 largedepartmaate. As a result, no provision was nude ror aovering

the court oosts of the TexasUnemploynest Cozimmsation

Go:mi55lon

lltfgatioa

$31 the gonsrsl fund of ths Attorrmiy General*s

Departmsnf, It la tnm that in the~absenoe of a break&m oi the administration fund underthe Aot, there is no speolrle lrmluslon

cU court costswithin the CO.%~SS~O~ buQ.get, but the fast that said expense is a *ooet of o&minlstration* and that the Ccnmisslon

has uutler

Sectha U(a) of the Aat tImIion. Orville S. Cur;ientcr, Y&rwJsJr 3, X39, ?qe 7

brox? hoax of Lmkklg such eznenaitures us our CsEcrltin1 to n ;;2

per ddnis~trution of the Act convinceUD t!kit. couit costs ize ga~.:Llo olli of the adiiistration fiun~ rq;arCiessof express rwntion.
FOG t?ie

XBOUS gfven above, and upon the bzis of the Acct?onsof the fez139 Unei3.7loynent

Cor~pens&ion Act zu-16

the Federal Social Seqwity Act, $o tkdoh we have referred we wish to advise you thet it 15 our decision (1) that the geqeralappropriation of the Depertnod Is not available far paymentof ocurtoosts inourred in citi1 lltigatlanin caumotion with the enforoe- ~l~M~e rovlsl.onedth0 3tatotSneqloyment Oompen- ; P 2) that there is no other fund available thraugh

act of the Texas Legislatbra for swh moae; aa (3)thnt court 005ts resultlng~fmm lit&atA.oa oi the TexasUkmploymeut&unpensation Conua%eelen

may beg legaUy~Ufrcuntheadmlnlatratlon fund setUpu.u&r theTeZastl&empln~~ConpensatlenUt as 

### a~alldg~l ~pen.so or the ad+nl&ratlon of thq 4olir Trusting

that we have fully an~redthe IXW @,rSes oontnlned,in your request,

we are Yolirs very truly