fund whloh are receivedfrom the FederalGovernmentor any sgenoy thereof ehall be expended~0ls.l~ for the purpoeesand in the munts found neoessaryby the Sooial SecurityBoard for the proper and efficientadministration of this Act. This fund shall consistof all moneys appropriatedby this State; all moneys receivedfrom the United States of America,or any agency thereof,includingthe Social SecurityBoard; . . . .", etc. (Emphasisadded)
The State legislation, above quotedand referredto, revealsan unmistakableintenton the part of the Legislatureto requirethe Texas UnemploymentCompensationCcmmissionto cooperate to the fullestpossible extantwith the FederalSocialSecurityBoard in matters concernedwith the administrationof the Texas UnemploymentCompensation Act.
The reasonwhy the Texas Legislaturehas requiredsuch extensive cooperationwith the FederalSocial SecurityBoard becomesapparentwhen we realizethat practicallyall funds used in the administrationof the Un- employmentCcrmpensaticnAct are furnishedby the FederalGcvercmentand that none are furnishedby the State. Under the Federal enacimenta,which are quotedand referredto above, the FederalGovernmentwill continueto furnishthese funds only 80 long as the Texas Commissioncomplieswith the rules and regulationsof the FederalSocial SecurityBoard with regard to the expenditureof the moneys so furnished.
Under Section 503, subsection(a), Title 42, U.S.C.A.,the Social SecurityBoard Is prohibitedfrom making certification for payment to any State unless such State has enacted legislation which providesfor the ex- penditureof funds furnishedunder Section 502 of that title "solelyfor the
In ccmpllanoewith this requirement,the Texas Legislaturehas providedin subsection(a) of Section 11, Article 5221b,Vernon'sAnnotated Civil Statutes, that: "Allmoneys in this (Administration) fund which are receivedfrom the FederalGovernmentor any agency thereofahali be expended solely for the purposesand in the amountsfound necessaryby the Social SecurityBoard for the prcuer and efficientadministration of this Act." ~Rnphasieadded)
That these provisionsof the Federal and State laws result in placing in the FederalSocial SecurityBoard in Wsehington,absolutecontrol over the securingof rental space by the Texas UnemploymentCompensation Page 6 (O-5524) HonorableClaudeA. Wfllirnna,
Commission,was illustratedin the reoent case of StarlingRealty Corpora- tion v. State, 20 N.Y.S. (26) 270, 174 App. Div. 375, affirmed1941, 36 N.E. (26) 201, 286 N.Y. 272, re-ar ent and motion denied, 1942, 37 N.E. (2d) ~8, 286 N.Y. 696, 26 N.Y.S.) 47, 261 A~~.DIV.363, which was af- finned, 1941. In the Starlingcase, the Divisionof Placementand Unsmployment Insuranceof New York, which correspondsto our Unsmplopsnt Compensation Comieslon, had rented certafnpremisesfram the StarlingRealty Corpora- tion, and, thereafter,the Divisionof Placementand UnemploymentInsurance, upon a determinationof the FederalSocial SeourftyBoard that the space was no longerneeded and that thereforeno furtherfunds would be providedfor rentalon those premises,oancelledits rental agreementor lease. This action by the Divisionwas made pursuantto a clause In the leasingcontract that the liabilityof the State was contingentupon the availabilityof moneys to pay such rental.
The New York Court of Claims in denyingthe landlord'sclaim for rental,points out that:
"The power of the (FederalSocial Security)Board to providenecessarymoneys for increasingthe number of necessaryofficesor enlargingalreadyexistingoffices would seem to be clear and it woc3.dseem equallyclear that it could refuse to providemoneys for such officesas it might decideunnecessaryin the administration of the law."
The only logicalconclusionto be deducedfrom this holding~and the quotedprovisionsof the Federal and State lam is that absolute~dlscre- tion over the amount of rental space needed by the Texas UnemploymentCompen- sationCmmission and the amount of money ,tohe spent for