OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
a-auhfaa
Awbu”~o-
Honorable Claude A. Wl.lliame
Ohairman aa&-.IkeoutivsDire&or
Texas Wnempl.opmentGompensatlon,Go~Lsf~n
Austin, Texas
Dear Sirs
was $rensfe+red to and made a dlrrs%oxiof, %he.Taxas
Unemployment Coapensation Commisafon (Art. 5221b-10,
Vernonts Annotated Clv3.1.Gtatatas).
:
"on December 19, 19&L,sthe President Or the
unite& States a'enta. tslagram to the ~overnore Of
the sevem31 states roqueoting that atlo to the ex-
lQ3ncies of the pr4S4ilt emer(;sncy,each state trans-
fer to the Unitad States Zmploymsnt Sarvfae ~11 of
the p~t¶reolulel,
reaoras, and faoifities ot the employ-
ment service ODer%tid by such s$ato, copy of said
telt~~arl~bsing-Rttsohed ek'exhiblt *e@!.
"On Deoembir 23, 1941, the Frssident issned
Pxecatire Order Kd: 8990 authorizing the trb&fer
or pereonnel from a stat3 emplopment sowrity aSenuy
to the S00ia1 Seourlty 3onrd of'the YedaraL Ssaurity
agenay atfeotiYe at the close of business Doaetttber 31,
,I%$, oopy of,said exeautive order being attached as
exhEbft
. cBw .
~'
*In aooor9anoe sith the above telegram and ex-
eoutiva order, the several ststa end territorial
e,nploymant~aervfoeau-are establfehsa a8 the Dnited
States &tployment Service, effective ,Ten~necp1,
lg.@. Inasmuch ab funds fotithe Federal operation
ot the United States %@oym8nt Servlaes are fru-
nished by the Fodsral Wvernment, the expenditure
ot.ititids
granted yurjrukntto the kaeqex-Psyesr.Rot
ior~theTparpose of mawhIne;-State land local funds,,
MS disaontinuea as of Jamaary 1, 191,~.
*Semte sill Xo. 1,23, .Aotn- 19&l; 47th Ze&,
571, laralrlng
p. ‘1284, '?~h. @:approprlat$en for the.-
Texas ,-Unemplo~ra~ntGo.w~snsation Com~iseloh, cbntalns
3he tolj.awi&,pr6ylaIs.a,,withkcspeht to Clnappropria-
the
1;lon’
bf.#lyJ,GOG:
nrlV”be keA to metoh FMeral ‘Fands kI36oafed
to state ot Texas undstithe FZa@M?-F4gsar~~&t,
idr~$he~~ &ayzent of rsalairies anilother. na&58salysi-
pensse~ in ~oonnsatlor. 571ththe operation‘rr?d.mainte-
ndnoa~of a Sbste .syetotn of dttplbpnnt Offlbse; .j.
salatilsa86 ISO~puid scoording to -kim eJ.qsdliioabfons
of the $ooial Seonclty Borwd to emplogee?!aelebted
and rated 'nnder the p4rSormel plan In effkct ~between
the $oaisl Secwlty.Fonrd srclthe StRte d.f?st?Cy;*
Honorable Clauda A. William, I?ag;E 3.
Vernon's Annotated Civil Statutes, and to w,?.for
the operetion~thereof the aforesaid appr~opr:itH&n
provided by the 47th Legielatuve.N
.'It appearsthat the oreatlos of.emplograentOffioea
was originated by the-Congress of the United Statea in 1933
with the passage of the Wagner-Peyser Aot, 29 0. S. C. A. 25.
We quote cartain p]Po9isionaof said Aot as follows:
Seotton 49. *In 'ordw? to psolaotetbs .estabi.iah-
sent and maintenauoe of a national aystea of public
eolploymnt oHioas there is hereby meeted a bureau
to be known as the United States Ehploy0ent Servloe.*
Section @b-(a). *It shall be the provinoe
aad.duty of the bureau to promote and develop a
national syste0 Of e0ployment officea for 0en,
wooLen,and juniors ,who ar.e.legallyqualified to ~.
engage In gainful oOoapatioaa,~to~0aintaln a ret-
erane( aerlio(B devoted to aecaring
t,o..be ~employ-
ment fos:~vetemms, to~0aiutai.a,a-Sarmplacement.
sexvioe,,to ,maintaina public employment eervioe for
the District of aolwnbia, and, in the m.fmner provided
in aeotiona 490, 496, 49e-49k of this title, to as-
sist i.nestablishing and maintaining systems of pub-
lie smp~loy04mt~offio~s~idthe sereral States ~=a :the
polltioal subdivision6 thexeof in wliioh,thereshall
be 1ocMted.a 'Psh6rans'smploy0snt service. Ths
bum&au shall-al80 asslat in OOU0dimitl0g the pub-
looalitias, -paaotrlnguniformity in their ~ad0inis-'
tpaQiva;ana ~~t~&Walpooe&uze, furn%ahing and
publi~~ng'in~o~iaatian-~l~~tO 0ppOrtuuiriea r0r em-
ployment and other inforaation~of value
in the ~Qp-
evstiou of the syetem,~and maiataiaing e system for
olgaring lsbox between the~esVera1 StatQai"
Seotion 490. *In order to obtain the benefits
of appropriations apportioned under motion 4% of
thie title, a State shall, through ite legislature,
Pzge 4.
Bonorable Claude A. t"iilliams,
accept tiieprovisions of sections 49-49c, 498, 499e-
I+9kof this title and designate or authorize the
aeet1on &%I. "(a) For the purpose of oartrrying
Out the provisions ,ofseotions 49-490, 494, 49e-49k
of this title there 1s hereby authorized to be ap-
propriated after the tiaoal year ending June 30,
1938 suoh sums annually es the Congress may deem
neoessary. The annual appropriation under seotions
49-49~~ J&l, l,%-49k of this tit3.sshall deeignste
the amount to be appOrtiOned by the Soofal Seourity
Board among the several States in the pr,oportion
which their population bears to the total popnla-
tfon of the States of the United States aooording
to the next preceding United States oenans, to be
available for the purpose of establishing end main-
taining systems of public employment offloes in the
aeveral.States and the political subdivisions thereof
in aooordance ,withthe prorisfone of se&ions 49-490,
49d, &9e-A9k of this title . . . .*
a 1935 the Legielature of this State enacted into
law I& B.~Ho. AO7,oreeting a State system of.publlo employment
otrioeq. &th.Leg., Reg.~Sess$on,,p. 552. Before setting out
the per,tinent.provisionsof said H..B. No. 407, we~reter to
the eppargenoyclanse.thereof, same being Seotion 8, which ex-
plains the purpose of its passage* Said emergenoy~oleuse
reads as follows: ,.
*The faot that under the present laws the State
of Texaa is not permitted to avail itself of the
benefits-of the Wagner-Peyser Aet approved June 6,
1933 (48 Stat..l'l),U. S. Gode, Title 29, Seation 49)
aad the further faot~that~the State of Texas wlL1
'losealithe benefits of said Aot on June 30, 1935,
unless in the meantime the Legislature of this State
shall have enaoted a law aocepting the provieions of
said Aot, and the further faot that unemployment of
Texas oitieens is the most distressing problem OM-
fronting this State at this time, . . . .v
I .
Honorable Claude A. xilliams, Page 5.
We quote the first three Sections of 11.B. 407, supra,
(ooaifit3a .a8 Article5221a-2 Y. A. C. 5.) as follows:
*SeatIon 1. The State of Texas aooepts the
pro&ionr, of the Wagner-Peyaer ~Aat approved June 6
1933~(I+6 Nat. 113, u; ~5.&de Fitle 29, 8eotion 491
'an ~aot to provide for %he establishment of a na-
tionaZ,empXoyment ayetem and r0r oooperation with
the statesln the promotion Of auoh system, and 20%
other purposes,* in conrorBnitJrwith Seotion 4 thereor,
and will observe 'andaoaplp with the requirements of
said Aot,
~Wea. 2. The Bureau oi Labor Statfstioa IS
hereby designate% and aonstftuted the agenoy of the
State of Texas for the purposes of suoh Act. Said
Bureau, its offioers and employees, are hereby
g%ven full power to cooperate with all authorities
of the United State'shaving powers or ~xluties under
such Aat ena to do and perform all things neoe8sar.y
to seaure to the 3tate of Texas the provisions ai..
suoh Aot'la the promotIon and malntenanae of a eye-
tem.o'fpublloWaplo.vment
.-! otfioas.
naeo. 3.There,~iahereby created within~the
Bureau of LaborStat5stics .a~.ditision to be kuown as
theaTexas~State Employm&t:Servioe, reaponsible~
fora~~nistering a byeternai public employment
offloes 2ar the purpom of assisting employers to
80oure employeea, and workers to secure employment.
The Coui&vsioner ~of Labor Statietloa is aathorired
an& aXFesti3bto establish such Otiioss in-auah parts
oftfhe~atate as.he deems maeasaxy a'nato presoribe
rules and ~regulatlouenot Znoansistent with,anp of
theprovisions of this AaGm~
Subsequently, the Legislature enacted further legiS-
lation oonoerning thiiTexas State’IFmp,lOpment Service (emplOY-
ment ofriees). Suoh legielatioa, codified in Y. ALC., 8: as
Article 3221b-10, now reaaa a8 follovet
"(a) Texes State %nployment Servioe, es proviUed
for under Act of .theForty-fourth Legislature, Reg-
ular Session, Chapter 236, page 552, is hereby trens-
ierred to the Commission as a division thereof. The
Honorable Claude J+ Williams, Page 6.
Conmission, throu@ such division, shell establish
and maintain free publio empLogment offices in such
number and in such plaoee as may be necessary for
the proper administration of this Aat,.and for Pur-
pose8 Of Performing suoh duties, as are within the
Purview of thelsot or Oongrees entitled 'IlnAot to
provide for the establfshaent of a national employ-
ment system and.for cooperation with the States jn
the Proniotloa~~of such-a stem and for motherpurposes,'
epproved June 6 19 ?3 , r48 Stat..IX&f V.S.C., Title
29, Seation 49 10) es amended, St shall be the
dustyOf the goz~~&~si.on to oooperate with any ofti-
Oial or agenay of the On&ted States having powers
or duties under the provialone Of the said Act of
Congress, as amended, and to do and perform all
things neoessary to mcuTe to this State the bene-
fits of the said Act of Congress, as amended, in
the promotion and maintenanoe of a system of public
employment offioos. The provisions of the said Act
of Congress, as ascended,ere hereby acaepted by
this State in oonformity with Se&ion 4 of said Aat,
and this State will observe and comply with the re-
quirements thereof. The Texas Unemployment Compen-
sation.Commlasion is hereby designated ana oonstii
tuted the agency of this State for the purposes of
said Bat. The Director, other offiaars and ezploy-
ees of the Texas State VmploymentServiae shall~be
appointed by the CominlsslOnin acoordenae with re-
gulations presaribed by the Direotor of the Vnlted
States &ployment Servloe.
*(b) Ffnanctng: All monies received by this
Sltate under the sal&Aot of Congreea, as amended,
ehall be paid .into.~the speolal Wzployment BerVioe
Aeeeunt' in thenVnemploy~~nt.~ompensatibn Adminis-
tration Bund,,ana said moniee~are~hereby mads avall-
able to the Texas Vnemploymsnb CQmpensatiOn COmmis-
sionto be expended as provided.by this BeOtlOn and
by said l&t of Congress, and any unexpended balanoe
(jffunds.approprlated or allocated either.by the
state of.Texae or the Rederal @oternment to the
Texas State Deployment SerriOe as a division of the'
Bureau of Labor Matistioe, is hereby, upon the
passage of this Aot, transferred to the speoial
*~nployment Service Aooount' in the VnemPloYment
Compensation Administration Bund. For the purpose
of establishing and maintaining free publia aPloY-
otant offices, the C~m~i~~ion is authorized to enter
. .
Eonorabla Claude A. Killiaras,Page 7.
into agreements with any politioal subdivision of
this State or with any grivate, and/or non-profit
organization, and aa a part ofany suoh agreement
the Gommisaion may aooept monies, clervluea,or quar-
ters-ae’a ,oontr,lbution to the special ~?&nployment
Service Aooo~unt~ I*
In the departmentalappropriation bill, the 47tihLeg-
islature appropriated 15150,OOOfor tho year ending August 31,
1942 and a like amount for the year ending August 31, 1943 to
the Texas Unemployment Oompansation Commission for the purpose
of maintaining the Texas State Rmployment'Servloe~(employment
offiaea), Aats 47th Leg., Reg. Session, S. B. 423, p. 1284.
This money waa appropriated by the 47th Legislature "To be
used to matah Federal Funds allocated to the State of Texas
under the Wagner-Peyser Act, . . . .v (ruuy set out in YOUR
letter, supra).
Shortly betore January 1, 1942, the President of
the United States issued a proclamation whiah had the effeot
of federalizing the Texas State tiployment Serviae. It appears
that on January 1, 19&Z, the effective date or the proolamatlon,
all of the employment orf'iaesof the Texas State Employment
Service were converted into Federal Agenaies, wholly maintained
and operated by the Federal Government. At the same time, it
appears that the Federal GovexllPnent
ceased granting f'undeto
the State of Texas aa provided by the Wagner-Peyser Act and
as contemplated by the State laws creating the Texas State
Bnployment Service and the departmental appropriation bill.
As we understand your question, you wish to know if
the Texas Unemployment Compensation Commiesfon aan use the
monies appropriated by the 47th Legislature to wholly iinaNe
and maintain a system of employment offiaes (said funds not
being matahed by the Federal Government under the Wagner-
Peyser Aat) eeparate and apart tram the employment offioes
now maintained and operated by the Federal Government.
As la readily seen, the Federal Government originated
the movement to areate employment ofiioes and to maintain this
type 0r employment serviae. Wagner-Peyaer Aat, eupra. In all
the laws enaated by our Legislature, it is apparent that the
Legislature relied on the Federal Government to match the
funds appropriated by the,State ror the operation of the Texas
State Rmployment Service. We find nothing whatsoever in any of
our State laws on this subject whiah evidences a legislative
intention to operate the Texas State tiployrzantService on
State funds alone.
Honorable Claude A. Willlans, Page 8.
Since the Legislature appropriated the funds in ques-
tion RTo be used to match Federal Funds allooated to the State
of Texas under the Wagner-Peyaer Aot, . . . .,w It follows that
the funds oan be used in no other manner. You are therefore
advised that the appropriation made by the 47th Legislature to
the,Texas Unemployment Compensation Commission ior,the purpose
oi operating a system of employment atfloes beoame inoperative
on January 1, 1942,and will so remain until euoh time, within
the life of the appropriation, as the Bederal Government
ohoosee tromatch the State funds as provided by law. Your
question ie answered in the negative.
Youra very truly
BY
ATTORREY QEWERAJ..
OF TEXAS
Aas1atent
Ls1J-P