Honorable Richard L. Coffman

Administrator Texas Employment Commission Austin, Texas 78701

Dear Mr. Coffman: Opinion No. M- 898
Re: Whether, pursuant to Article 5221b-7, Subdivision (d),Vernon's Civil Statutes, the Comptroller of Public Accounts may issue a duplicate warrant for unemployment compensation benefits **to** abank when such bank has complied with the provisions ofArticle 4365, Vernon's Civil Statutes, and related question.
Your recent letter requesting the opinion of this office concerning the referenced **matter states,**  inpart, as follows:

"In the early part of 1970 the Comptroller, at the request of the Texas Employment Commission, issuedwarrants inpayment ofunemployment compensation benefits to a number of claimants. These warrants were then cashed by the claimants at the National City Bank ofWaco, Texas. "OnMay 20, 1971, **more** than one year after thewarrants had been issued by the Comptroller's office, thebank requested the Comptroller, pursuant toArticle 4365, V.C.S., to issue to it duplicates of these warrants. The bank complied with the requirements ofArticle 4365 . . .

-4379-Hon. Richard L. Coffman, page 2 (M-898)

"Thewarrants in question were issued under the terms and authority of the Texas Unemployment Compensation Act, Article 5221b,V.C.S.* . . . "Inview of the apparent conflict between the provisions of the two statutes cited above, two questions have arisen with regard to the procedure the Comptroller is legally required to follow: "(1.) May the Comptroller issue duplicate unemployment compensation warrants to theNational City Bank ofWaco, Texas, as thebank has requested? "If the answer to this question is in the affirmative, a second question arises: "(2) If the Comptroller may issue such duplicatewarrants, may suchwarrants then be paid by the Comptroller upon presentment without further Legislative authorization?" Article 4365, Vernon's Civil Statutes, provides, inpart, as follows:

"TheComptroller, when satisfied that any original warrant drawn upon the State Treasurer has been lost or destroyed . . . isauthorized to issue a duplicate warrant in lieu of the original warrant . . .:but no such duplicate warrant . . . shall issue until the applicant has filed with the Comptroller his affidavit, stating that he is the true owner of such instrument, and that Shr same is in fact lost or destroyed, and shall also file with the Comptroller his bond indouble the amount of the claim with two or more good and sufficient sureties, payable to the Governor, to be approved by the Comptroller, and conditioned that the applicant will

*ch. 14.,Tit. S3,being Art, 5221b-1 through 522133-24,V.C.S.

-4380.Hon. Richard L. Coffman, page 3 (M-898)

hold the State harmless and return to the Comptroller, upon demand being made therefor, such duplicates or copies, or the amount ofmoney named therein, together witn all costs that may accrue against the State on collecting the same . . .II Article 522173-7,subdivision (d),Vernon's Civil Statutes, in setting forth the manner ofpayment ofbenefits under the Unemployment Compensation Act, provides, in full, as follows:

"If awarrant has been issuedby the Comptroller inpayment ofbenefits as provided under this Act, and if the claimant entitled to receive such warrant has lost or loses, or for any reason failed or fails to receive such warrant after such warrant is or has been issuedby the Comptroller, and upon satisfactory proof of such, the Comptroller may issue to claimant a duplicate warrant as provided for inArticle 4365, Revised Civil Statutes of Texas, 1925, but inno event shall a duplicate warrant be issued after one year from the date of the oriqinal warrant. "If, after any warrant has been issuedby the Comptroller payable to a claimant forbenefits under the provisions of thisAct, and suchwarrant shall have been lost ormisplaced, or if claimant for any reason fails or refuses to present said warrant for payment within twelve (12)months after the date of issuance of such warrant, such warrant shall be cancelled, and thereafter no payment shall be made by_ the Treasurer on suchwarrant, and no duplicate warrant inplace thereof shall ever be issued." (Emphasis added.) When Subdivision (d)was added toArticle 522113-7,supra, in 1939 (Acts 46th Leg., R.S., 1939, p. 436,447, S.B. 21, Sec. 6). the Legislature, clearly had the provisions ofArticle 4365, supra, inmind. See the reference toArticle 4365 in the first paragraph of Subdivision (d).

-4381-Hon. Richard L. Coffman, page 4 (M-898)

While the first portion of Subdivision (d)prohibits payment after oneyear to the claimant entitled to receive unemployment benefits, and makes no reference to paying the claimant's assigns, the final clauses ofboth paragraphs of the Subdivision prohibit payment, after the one-year period, on the warrant itself. We are, therefore, of the opinion that the oneyear prohibition isapplicable toboth the initial payee of the warrant and to his assigns.

We are also of the opinion thatArticle 522133-7,Subdivision (d), impliedly amended Article 4365, so as to constitute an exception to the broad terms ofArticle 4365 in the case of recipients ofwarrants for unemployment compensation benefits. You are advised that the Comptroller may not issue a duplicate warrant for unemployment compensation benefits after one year from the date of issuance of the original warrant.

Your first question is, therefore, answered in the negative. As your first question hasbeen so answered, it is not necessary for us to answer your second question. SUMMARY Under the provisions ofArticle 522113-7,subdivision cd),Vernon's Civil Statutes, the Comptroller isnot authorized to issue a dupli.cate warrant for payment ofunemployment compensation benefits to the initial payee of thewarrant, or to his assigns, more than one year after the da,te of issuance of the original war;ant. .,' V,erytruly yours,

Attorney General of Texas Prepared by Austin C. Bray, Jr. Assistant Attorney General

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### Hon.RichardL.Coffman,page 5 (M-898)

APPROVED: OPINIONCOMMITTEE KernsTaylor,Chairman W. E.Allen,Co-Chairman JimSwearingen RobertDavis JohnBanks MichaelStork MEADE F.GRIFFIN StaffLegalAssistant ALFRBDWALKBR ExecutiveAssistant NOLAWHITE FirstAssistant

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