HonorableClaude A. Williams Chairmanand ExecutiveDireotor Texas UnemploymentCcunpewatlonCommission Austin, Texas
Dear Sir: OpinionNo. O-5524 IiS?:WhetherSenateBill No. 266 appliesto rental space leased by the Texae UnemploymentCm- penaatlonComniseion.
Thla will acknowledgereoelptof~yourletterof August l.3,1943, wherein you have requeetedthe opinionof this depar+anent upon the above at&d matter. So that this opinionwill reflect all of the facts you have auhaittedto UB, we quote the body of your letter in full as followai
"YourDepartMmt recentlyIssuedOpinionBo. O-927 relativeto the effect of Senate BillHo. 266, Regular Seseionof the 48th Legislature,upon the,paymentof cur- rent rentalsunder existingleases. We presume,in view of the legislativepolicy ae expressedin severalrecent appropriation bills, that SenateBill IVo.266 (to appear aa Article 666b in Vernon'8AnnotatedCivil Statutes) doe6 not apply to the fund6 used by this Commiseionfor the paymentof rentals,but in order to clarifythe mat- ter, we are requestingyour opinion.
gJnaer the atiinistratlveauthorityvested in this Commissionby Article 5221b-9 (V.A.C.S.)the Commission has taken leasesou a number of offices locatedat various points in the State. Payment for theee leasesis made out of the UnemploymentCompensationAdministration Fund created in the State Treaeuryby Article 5221b-11(V.A.C.S.). We direct your attentionto tie fact that the Texas Unam- ploymentC~peneation Conmissionis not operatedon funds derivedfrcm State taxation,but is operatedon a grant from the Social SecurityBoard under Title III of the Social SecurityAot, as mended, and the UnemploymentCompensation Administration Fund conslstawholly of funds receivedfrom the FederalGovernment. These funds are not grantedto the HonorableClaudeA. Williame,Page 2 (O-5524)
State as ouch, but rather are grantedto +&la Ccan- mission aa a Ccmmlsaionfor administrative use by that body in keepingwith such rules and regulations as may be prescribedby the Social SecurityBoard.
"Article5221b-11(V.A.C.S.)provides,among other things, 'allmoneyw in this fund which are receivedfrom the Federal Governmentor any Agency thereofshall be expendedeolelyfor the purposes and in the amountsfound necessaryby the Social SecurityBoard for the proper and efficientadminis- trationof this Act.' The terms of Title III under which this money is grantedprovidethat the adminis- trativefund shall not be grantedby the Social Sec- urlty Board unless it is found that all moneys received from the Board are expendedsolelyfor the purposesand in the amountafound necessaryby the Board for the proper and efficientadministration of such State law. In this connectionit is pointed out that all of these contracts must be made in accordancewith standardspromulgatedby the Board and are also examinedand approvedby an auditor of the Board.
"We thereforerequest your opinionas to whether or not SenateBillHo. 266, RegularSession of the 48th Leg- islature,is applicableto paymentof rentalby this Ccm- mission out of funds receivedfrom the FederalOovernment."
In our opinionNo. O-5427,we advisedthe State Canptrollerof Public Accountsthat:
"Any new lease or rental contractentered into after the passageof Senate Bill 266 (Acts 1943, 48th Leg., effectiveMay 7, 1943)muet be executedIn the manner prescribedby Sections1 and 2 of the Act. The Legisla- ture having provideda mode for the securingof rental space, the agenciesand deparixaentaaffectedare restrict- ed to that mode and must conformto these requirements." (Emphasisadded)
If the Texas UnemploymentCompensationCommissionia one of the affectedagenciesor departmentathereinreferredto, it would follow that the provisionsof Senate Bill Ho. 266 apply to rental space neededby it. If not, the Commissionmay continueto follow