# TEEATTORNEY GENERAL OF TEXAS

February 

### 13,1952

I53.1.I'bray Ii. Hame, Jr. Coimty Attotiney~ Gtiayson county Sherman, Texas Opinion Ho. V-1406 Re: Authority Ofthe Comlssloners' C0u.i-tto create a Social Sectmlty Fui~dto coiltaln annual advance dedications for Social Security matching contributions from the County ffeneiral Fund;the County Dsar MP.Rance: Road andBridge Fund, and the County Officer8 Salary Fund, You??request for an opinion contains the following question:

would the County Auditor be authorized to transfer nowandat the beginning of each fiscal year, an estimated amountinto a fund to be knownas the Social Security Fundfrom the County RoadandBridge Fund#th@ County General Fundand the~~coruityOfficers Salary Fund, which are the funds from which County' employees are to be paid, In vlex of the fact that~no~fund, lmom as the Social Security Fund, has been previously set up?' HouseBill 603, Acts 52ndLe ch. 500, p. 1480 (Article 695g, V.C.S. 7., R.S. 1951,

, provides in part as follows:

"Set; 2. The State Department ~ofPublic Welfare Is designated the State Agency to administer the provisions bf this Act. The Executive Director of the department shall act for it and shall direct andadmInister its functions under this Act.” 

### l Sec. 4. TheState Agency is authorized to enter into agreements vlth the governing bodies of counties and with the governingHon. Murray H. lfance, Jr., page 2 

### (V-1406)

bodies of munlclpalltles of the State which are eligible for Social Security coverage under Federal law,whenthe governing body of any of said counties OP munlclpalltles desires to obtain coverage under the old-age and aurvlvor’s Insurance program for their employees.

. . .”

“Sect; 

### 5. TheState Board of Public

. Welfare Is authorized and directed to promulgate all reasonable rules and regrilatlons it deemsnecessary to govern appllcations for and ellglbilltg to participate In this program, and it shall prescribe the terms of the agreements necessary- to carry out the provisions of this Act and to Insure flnanc~lal responslblllty on the part of the participating counties and municlpalltles. *Sec. 

### 6.

. . The respective governing bodies are &thorlsed to pay contributions as requlped~by these agreements from those funds from which the covered employees receive their compensation, and It Is expressly provided that all prior laws and parts of laws which fix a maxlmumcompensation for any covered employees of oountles are hereby amendedto allow payment of the matching contribution necessary to this program In addition to anymaximumoompensation otherwise fixed by law.”

“Sec. 

### 7. .Each county and~municlpallty of the State Is authorlsed to submit for, approval bythe state agency a plan for extending the benefits of the Federal old-age and survivor’s lnsmance system to employees of the county 0~munlclpallty

. . . noplan shall be approved unless it specified the source or sources from which the funds necessary to mskethe payments required are to be derived and contains guarantees that these sources vi11 be adeQuate for this purpose (the State Agency mayby appropriate rules and regulations require guarantees in the form of surety bonds, advance paymentsto escrow, detailed representations and assurances of priority dedication, or any legalHon. Murray H. liance, Jr., page 

### 3 (V-1406)

uddertaklngs to creatd adequate securl nat each county andmunlclpa P 111 z2%i~:~;:~:i~::s~o: 2Like

othat speclfl8d byFederal requlrem8nts to precede coverage cancellation.

. . .* (Rmphasls added.) *Sec. 

### 8. Matching contributions by the employ& io&tles OPmunlclpalitles as presorlb-ed by the approved plan ti keeping with Federal requlrements~~shall be paid from the respective sources of funds from which covered employees receive their ccanpensatlon.g In compliance with Sectloh 5 of HouseBill 603, the Director of the State Board of Public Welfare has promulgated certain rules andregulations which he deemsnecessary to govern the applications for and 8lIglblllty to participate In this program. Rule 2352 provides;

“A special fund separate andapart from all other public moneys shall be established by the county OPmunicipality to be knownas the 'Social Security Fund' and to be admlnlstered by the county or municipality exclusively for the purposes of the agreement.'Under the authority bf House Bill 603 and Rule Ro. 2352 of the State Board of Public Welfare governing Social Security, the commlssloDers~ court of Grayson County is authorized to set upan 8scrow fund for the purpose of carrying out the purposes of House Bill 603.

UnderSection 

### 8of House Bill 603 matching contributions by the employing counties are to be paid from the respectI+ SOUPC~B of funds from which covered emplOy88dreceive their COmp8nSatiOn. The soupes of funds to pay for the county employees ellglble for participation under this pl.axiaP8the County General Fund; the County Roadand Bridge Fund, and the County Officers Salary Fund.

Section 

### 7of House Bill 603 authorizes the commissioners1 court to transfer the funds from theHon. #haPPayH. mSllC8, Jr., page 

### 4 (v-1406)

Offlcers~SaIary Fund,'the Road'and Bridge Fund&ndthe County GenePal FundInto the~ftuid to~~beknownas the Social SecuPlty Fund. TheCounty Social Security Fund Is an escrow fund set upor Created for carrying out the purposes prsvlously authorized for the funds from which the employees Pecelvs their compensation.

The commlsaloners~ COUPtOfthe COUIltydo85 not have the authority to transfer funds from one eonstltutlonal fund, such as the County Rotid**and** Bridge Fund, to another constltuti6nal fund such as the County General Fund. Such a transfer would, in effect, expend funds raised by taxation ostensibly for one purpose foP another purpose or Class of purposes. C&roll v. Wllllama, 109Tex. 

### 155,202 S.W. 

### .504. ~Sandgrsvi zl;ipz?O (TeX. Clv~.App. 19201. Looney, H owever, the comcourt by taking the funds from these constitutional funds and transferring themInto the Ccunty Soclal~Securlty Fundmerely insuP88, byan escrow arrangement/the paymentP8qUiP8dUnder the Social SeCUPity plan. These payments would ordinarily be mfid8from the funds which compensate the participating county employees and payment into escrow Is but a meansfor fulfilling the requirements of Section 

### 7of House Bill 

### 603. Therefore, It is OUTopinion that the commLssloners' court of a county which d8SlP8S to obtain coverage. under the oldage and survlvor~s Insurance program for their employees Is authorized to cP8iit.ea Social SecuPlty Fundto contain advance dedications for Social Security matching COntPibutlons paid from the CountyGeneral Fund, the County RoadandBridge Fund, and the County Officers Salary Fund.

SUHMARY

The commlssloner~~ court of a county desiring to obtain coverage under the old age and survivor's Insurance program for their *mp10ye*5 Is aUthoPiz8d to create an escrow fund (Social Security Fund) to contain annual advance dedications for Social Security matching contributions.

..

Hon. 

### Hurray H. llanoe, Jr., page 

### 5 (V-1406)

The commlaslonerst court Is authorlsed to pay county matching contributions' Into the Social Security Fundfrom the respective sourc8s 

### of funds frcm which covered employees receive their compensation, Viz. County General Fund, CbimtyRoadandBridge Ftidj and the-County Officers4 Salary Fund.~'House Bill 

### 603,Acfs'52nd Leg., R.S; 1951, ch. 500, p. 14fIO (Art. 

### 6g5grV.C.S.). Yours very truly, APPROVRDz J; C. Davlb,~Jr. County Affairs Division B; Jacobson Reviewing Assistant Charles D. PIathews First Assistant RHH:IZh

I PRICEDARIEL Attorney General

BYRobert H. Hughes

Assistant