February 12, 1975
The Honorable Cue D. Boykin Opinion No. H- 524
Chairman
Texas Industrial Accident Board Re: Validity of an appropria-
P.O. Box 12757, Capitol Station tion to the Attorney General’s
Austin, Texas 78711 Office from Workmen’s Com-
pensation Fund NO. 94.
Dear Mr. Boykin:
You have asked our opinion on the legality of the Legislature’s
transfer of a portion of the Workmen’s Compensation Fund No. 94 to the
A,ttorney General’s Operating Fund.
The Workmen’s Compensation Fund is created by article 8306,
section 28, V. T. C. S., which provides:
I
Sec. 28. The:re is hereby established as a special
fund, separate and apart from all public monies or
funds of this state, a Workmen:s Compensation Fund
which shall be used by the Board for the purpose of
paying costs of the administration of the law, in
addition to amounts appropriated by the Legislature
of the State of Texas. The State Treasurer shall be
the treasurer and custodian of the fund. He shall
adminjst-,r such fund in accordance wit,h the direc-
tions of the Board, and the Comptroiler shall issue
war:rants upon its in accordance with the directions of
the Board.
,
. . . .
Failure to make any report required by this Section
shall be punishable by fine not the exceed One Thousand
.
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The Honorable Cue D. Boykin page 2 (H-524)
($1000) Dollars and the failure to pay any tax
within thirty (30) days after same is due under
this Section shall be ,punishable by a penalty of
ten percent (10%) of the amount, and shall be
recovered by the Attorney General in a suit
brought by him in the name of the State of Texas
and such penalties when collected shall be deposited’.
in the State Treasury ‘for the use and benefit of the
Workmen’s Compensation Fund. ‘.
Even though funds may be.earmarked by statute, they,may not be’ ,’
spent absent a valid appropriation. Texas Constitution, art. 8, $6.
In the appropriation to the Attorney General’s Office the Legis-
lature has transferred money from several different funds tothe Attorney
General’s Operati.ng Fund. For the year ending August 31, 1975, these
transfers include one of $50,000 from the Workmen’s Compensation Fund
Nq. 94. Acts 1973, 63rd Leg., ch. 659, p. .1786 at 1920.
The Attorney General’s Operating Fund was created in 1959 and has
been funded i.n a similar fashion since th,at time.’ Acts 1959, 56th Leg. ,.
3rd C. S. ch. 23, p. 442 at 510. The Operating Fund’s validity was upheld
in Attorney General OpinionWW-573 (1959).
To be valid this appropriation from the Workmen’s Compensation
-Fund to the Attorney General’s Operating Fund must be authorized by
general law [Texas Constitution,, art. 3, $441 and must be consistent
wi.t.1~the requirements of general law [Texas Constitution, art. 3, § 35;
A+‘:orney General 0pi:lion V-1254 (195111. We believe both of these tests
xrt me!: here.
Se&on 28 of artdcle 8306 provides that. the fund “shall be used by
the Board for the purpose of paying costs of the administration of the law. . . “‘.
7” - Lo.‘: ~“0 this language is mandatory and the Board is requi~red to make
expenditures from the fund to pay the costs of administering the workmen’s
compensation law. In fulfilling his constitutional and statutory duties as
the at.torney for state agencies, the Attorney General represents the Industrial
pe 2365
The Honorable Cue D. Boykin page 3 (H-524)
Accident Board in court and counsels with the Board in regard to its
legal obligations. The very section which creates the fund indicates that
a portion of the cost of administering the law will be incurred by the
Attorney General, si.nre he is required t.o bring suit to recover taxes and
penalties for the benefit of the fund. Additionally, work is being undertaken
in preparation for the initiation of the program of workmen’s compensation
for state employees. This program is expected to go into effect prior to
the end of the current: fiscal year and both the At.torney General and the
Industrial Acc~,ident Board will have extensive administrative responsibilities
under the law. See V. T. C. S.,art. 8309g. In light of these responsibilities
of the Attorney General’s Office, the Legisl~ature has determined both in
general law and in the appropriation bill that the Attorney General’s Office
plays an integral role in the administration of the Workmen’s Compensation
Law. Therefore, t,he Legislature!s transfer of a portion of the Workmen’ti
Compensation Fund to the Attbrney General’s Operating Fund is entirely
consistent wjth the statutory mandat~e that the fund “be used by t.he Board
for the purpose of paying c~osts of the administration of the law. ”
Although there is language i,n section 28 of article 8306 which could
be construed as li.miting administration of the fund to the Board, we believe
the statut.e is more correc~tly i,nterpretcd as specifying and mandating the
purpose for which the funds ran be spent rather than as abrogating the
power of the Legislature to allocate the fund for speci,fic purposes within
the cont.emplation of the statutxy purpose. Thins interpretaEon is consist:ent
with priar praci:ice and c~,onstruci:ion in regard to similar funds. -See Attorney
General OpinEon WW-604 (1959) which approved a proposed transfer from
the Barber Examiners Fnnd (V. T. C. S. I ari,. 7407a, $27) i:o the General
Revenue Fund t,o reflect the cost of servic~es furnj,shed to the Barber’s Board
by other siaie agencies.
SUMMARY
__l__-~__
The Legisla!g,re is au!:hori,zed to appropriate
a pori:j,on of the Workmrn!s Compensation Fund
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The Honorable Cute D. Boykin page 4 (H-524)
to the Attorney General’s OffiLe to reflect
the costs of administering the Act.
Very truly yours,
dHl& .’
Attorney General of Texas
-ROVED:
DAVID M. KENDALL, First Assistant
C. ROBERT HEATH, Chairman
Opinion Committee
lg
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