/ 

*,’ 

------ 

Hal. Orville s. corpmter 

CM= %nd lW3iYitfV43 M33OtOZ 

Texas Unsnploymont Coqenmtl~ Cotmlsslon 
Hon. Orvfllo S. Carpenter, Pebrunry 3, 1939, Page 2 

"All mnies in this fund shall be ex?endtid oolely for the purpose of defray the 

cost of the ndministration of t!lls act and 

for no other pur,mse whatsoavoP 

encl that: 

"Nlmonles in iAl fund shall be deposited,administered,and~sb~edinthe 

8anm mannor and under the eaw oondlticma 

andreIqulramantsalllepwrridadbylawr~ 

other spoclal ftnxla In the State Treacmry." 

aompamation law approved bytha Bawd.tmdg 

Ti8lo JX, swh amunta as tbs Ibard tl&omlnm~ .,' :

..~ ci

to'be naaessary for the 

ofeuahlardurio~the fi? 

persdtpinlatratloa .,

ewlyearlnwhiah 

suuhpagnrsnt lsto 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-d Ana. 

It 16 apparent that under both seation Is(a) 

or the Texas Unemployment Canpensatlm Aat and Title 3, 

Section 308(b) of the Federal Soaial Seauzity Aat that 

=the coot of the admi&&ratlmP' of the AOt shall be defraysd imnthe tile8 in the special fund* 
lion. Orville S. Camenter, Fobmmry 3, 1939, Page 9 

There Is no fund in the Stnte Treasury other 

than t.he nth~inlctmtion fund le~lly available for metIne the "cost of the ad&nIstmtIona of the Texas Untmployzmt Corr-xrsation Act. 

Both Fcrleral and State laws directly and ex- 

,7lIcltly state that "the aost oi the administrations is 

to be ,?aid out of the adminlstmtlan fund. The quest&ax 

to be oonsldered Is whether or not oourt ooats luaumod 

lnlltlgation broughtroroolleatlon 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 minute datafl. au Is eonerallyth@ 

aane for admlnlotratS.ve funds Sor other State demrtments whose entire ap,pro*atIon co88 frcm state tunds, 

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 Section 17 subhead (a), that 8n 

Asnlstant Attorney General as&ned to the C&salon 

shall be pai& out of the opprcpriation fund "as well as 

any other qusllfled attorneys who are reEular4 eanployet? by 'the Ccmrtis~ion.~ Said seotion reads as follorasr 

~*fnanyolvilautlcmtoenioroetba pso- . . .~ 

vlslms~ortbie aot the Qomndsrrlan and the 

state shall be represented by an Amistdnt At-, 

- Wmtlcm 14(b) der,ls with the repreaentatlaI 

of the Cmnlsslon ln bourtc It protidos that in regard 
Eon. Orville S. Carpenter, Pebru-ry 2, 1939, Pace 5 

to the collection of.contributlons Ymounts duo ahall 

be czLla3,ed by civil action 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 dollar that other costs of necesSW utitgath, ti0u~1iofE 0avt 003t~ aa 0rri010.ft36~, 

arealsootithintln oaParegs~ofthe*cost ofadralnim~ ~'( 

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 

,The l&titUde gliwntbs OemU&m U&W SW.8 

sectloa la.regarQ to aeoessary ar suitable expmdZturen 

ice proper adm3nlstratltna qxpMns the abeewe of 

partioular fund for the payment 02 court costs. It Y 8 

our opinion that the pow& and authority eiven%e Cow 

missian in this sectian SUJQClTt8 the theory that thei 

tena "oost of administratian" as used In the Federal and 

State Acts is all lncl+&vqas to expense items and would 

oover oourt costs whleh In tpeanselves are neoesaary Ed 

penae. 

We note in your letter reference to the polluy 

of the Fe&era1 Social Seatit Board prohibtting #ants 

to States for 

""g 

adninlstrat f ve p~rponos mFhere other 

fun&s are availa la for au&k purpose. This policy is 
, : 

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

grouncad u?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 providing for 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 brought to enfoms ths provlmat Ccmpensationdatwereaat ooaalbcnradinoalmla~ 

iag the neae5ssry tuuntat of the aaau6l app~tlua 

rar =oourt 005t5 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 funas hfwebeem proVlW 

lature out oi which it 1s ex,pressl.y stats& Y

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 taks aara of the oourt 

aosta or aivll oases incident to admlnfstratioa 0r t3da 

atpmiie8. It has,moreover,rell&uponthe general 

pollcp of the Legislaturs to inolude tim mart ooste 

ama the other items of adninistratlve oosts of the vaw 

loll5 large departmaate. As a result, no provision was 

nude ror aovering the court oosts of the Texas Unemploynest 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 under the Aot, there is no speolrle lrmluslon cU 

court costs within 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 tIm 
Iion. 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 convince UD 

t!kit. couit costs ize ga~.:Llo olli of the adiiistration 

fiun~ rq;arCiess of express rwntion. 

FOG t?ie XBOUS gfven above, and upon the 

bzis of the Acct?ons of 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 geqeral appropriation of the Depertnod Is not available far payment of ocurt oosts inourred in citi1 lltigatlan in 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 Texas Ukmploymeut&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