. .
THE ATI-ORNEYGENEI&I&
OP TEXAS
day 14, 1948
Hon. Qeo. H. Sheppard Opinion lo. v-577
Comptroller of Public Accounts
Austin, Texas Re: Use of funds given
by Federal Oovern-
ment to State De-
partment of Health
for matching pllr-
poses under 38:
ployees Retirement
Syrtem Act..
Dear Sir:
Your request for an ~opiniiiii Is as f 0110w!?4:
“The question has arisen in this
department as to whether the Federdl
funds granted to the Health Departtint
from which salaries ‘nvly be :paid‘shall
be used for matching the StB$e*s contri-
bntlon for such employees to ,the, Retire-
ment Syrtem. I shall, therefore, thank
you to advise this department whether
such Federal funds shall be transferred-~
by the Comptroller to the Retirement Sys-
tem funds bs provided ior under the Re-
tirement Act O If your answer is in the
negative, that Is, that suah funds can-
not be tliansferred for~the benefits of
the Retirement System, from what source
or fund shalf the matching contributions
be provided?
re are advised orally by a member of your of-
fice that the Federal funds granted to $he Health De-
partment from which salaries may be paid refers to the
money given to the State Department of Health bg the
$d~lCO~ernment in accordance with the provisions of
Sec. 246, after certain conditiona and bud-
geta;y’riq&ements have been met by the Health Depart-
ment to the satisfaction of the Surgeon General of the 6
United States. The funds granted the State by the Fed-
era1 Government through the Surgeon General are to be
I .
Hon. Gee. Ii. Sheppard, page 2 (v-577)
used in tarrying out the broad objectives of venereal
diseasei:tu$er.culosis, and mental disease prevention and
cure and coping with special health ptioblems under the
provisions of the Public Health and Welfare lava of the
liational Cto.vernment. The Surgeon General is authorized
to withhold further payments to the State upon a finding
that the State’s health authority has failed to aomply
substantially with either the provisions of Sec. 246,
budgetary plan8 submittef) by the State “;td approved by
the Surgeon General, or the regulations .
“Department”, “Employee”, and “ihployer* are
defined in Ii. B. 168, 50th Legislature, which is codifl-
ed as Art. 6228a, V. C. S., aa follows:
“Section 1 . . .
mB. ‘Department’ 8hall mean any de-
patimer&, commLssion, institution, or, agen-
cy of the State ffovernment..
% Qmployee’ shall mean any rego-
laFl> rpppointed officer or emplope in
a ~department of the State . . .
‘3, %aployer 1 8hall mean the State
oi T&8 aIt
: Ileo. 8.A. of raid H. B. 168, provides, In part,
aa follovsf
“The amount contribtited by each mem-
ber to ~th Retirement System ahall,be five,
per cent ‘45s) of the regular annual compen-
sation, paid. to each member. The amouut con- -
tributed ‘by’.the State of Texar to the Rs-
tirement Sagtern shall not exceed during any
one (1) year five per cent (5s) of salaries
of alk*members, disregarding salaslsa in
amounts In exCe s of Three Thousand Six
Hundred Dollars P$3,600), provided the to-
tal amount contributed by the State during
a&y one (1) year shall at least dqual the
total sslount contributed dwlng the same
year by all members of the Retirement Sy8-
ten; provided further that all contribu-
tions made by the State ahall be froa and
charged to the resvective fund8 aDta?oDFia-
~
ted,, a th
Hon. Gee, H. Sheppard, page 3 (V-577)
salary OF compensation of the emploVee
for whose benefit the contribution Is
maQe 0 *I’ (l3mphasls otlrsl
Set, 8,B. 2.a. of Said H, B, 168, provides, in
part, as follovsn
‘a* Prom and after the date of the
establishment of the membership and full
operation of the Retirement System creat-
ed by this Act takes effect, there 1~
hereby allocated and apvrovriated to the
%mployees Retirement System of Texas, In
accordance with this Act, from the sever-
al funds from which the employees benefit-
ed bs this Act receive their respective
salaries a sum equal to five per cent (5$)
of the t&al compensation paid to the said
respective employees who are members of
said Retirement System an& whose comoen-
sation is paid from funds directly con-
tpolled by the States Thhc.
F4t.nf.nRnnnA
-Y" _"I"" -"-A..nf"A
bustees (meaninnv th--% board of seven mem-
bers responsible for the operation of the
Retirement System) shall certify to the
State Comptroller of Public Accounts and
the State-Treasurer at the end of each
month the total amount of compensation
paid such member of the Retirement Sys-
tem, and the State Comptroller shall
therewon transfer five per cent (58) of
this amount from the said respective fundg
from which said employees are ~&ig to Fe
State Employees Retirement Fund; D D o
@mphasis ours)
We are ‘informed further by .a.: Health Depart-
ment representative that the question of the use of Fed-
era1 funds for matching purposes under the Retirement
Act was submltted to the Surgeon General and this use
was’approved. This being the case, the Federal funds,
once deposited to the State es account or In the State
TPeaswy under the terms of the Public Health laV8 of.
the United States, become state funds fop all purposes.
and intents, and are appropriated by the Legislature In
accordance with the budget aubmltted by the Health De-
partment to and approved by the Surgeon General. There
funds are earmarked fop public health uses, yet they am
State property as title has passed by gift from the Fed-
.
Hon. ffeo. H. Sheppard, page 4 (v-577)
era1 ffovernment to the State. They are fund8 UUd4P con-
trol of and subject to appropriation b the Texas Lsgls-
lature for the payment of salaries of ii4alth Dopartnmt
employees as well as fulfilling the other objects out-
lined in the Health Department budget approved by the
Surgeon General. We believe they are State funds vith-
in the purview of the underlined portions of the Retlre-
mont Act and may be utilized for matching purposes under
the tsrms of this Act.
The sourc4 of the funds out of which am iruI1~
vidual is paid Is not controlling, .It is the fact that
the Department of Health is charged with the responsl-
bllity of paying an IndFvidual~s salary and that the
employee fall.8 within the definition of "employee" giv*
en In the Retirement Act'plus tkw fact that the Feder-
ally-donated funds 4r4 Stat4~ovned property and subject
to direct control of and appropriation by the Legisla-
two. They are within the ambit of the Comptroller*s
authority to transfer a portion thereof (5$) to the Em-
ployees Retltiement Fund.
SUMMARY
Funds given to the Sa.%tqiDepartllsnt
of Health by the Federal Q&omont und4r
the Public HeaLth and Welfara laws of the
United States, 42 U.S.CA,, 944. 246, ny
be utilized for matching parposes by the
Comptroller of Public Account~s under the
terms of the State hployeer Retlrenent
Act. Art. 6228a, V. C. 9.
~Yours very truly,
A?X'OREEYGEIURAL
OF TEXAS
JTBsmv