Untitled Texas Attorney General Opinion ( 1974 )

THE ATIYORNEY GENERAL
OF TEXAS
Aus-rm. TIEXAS 78711
August 28, 1974
The Honorable Cue D. Boykin Opinion No. H- 385
Chairman, Texas Industrial
Accident Board Re: Deposit of the Second
P. 0. Box 12757, Capitol Station Injury Fund in interest
Austin, Texas 78711 bearing accounts.
Dear Mr. Boykin:
You have asked whether the Second Injury Fund should be deposited
by the State Treasurer in an interest bearing account.
The Second Injury Fund is a part of the workmen’s compensation
system and is governed by Article 8306, Sec. 12c-2, V. T. C. S., which
provides:
The special fund known as the ‘Second Injury
Fund’ shall be created in the following manner:
(a) In every case of the death of an employee
under this Act where there is no person entitled
to compensation surviving said employee, the
association shall pay to the Industrial Accident
Board the full death benefits, but not to exceed
360 weeks of compensation, as provided in Sec-
tion 8, of Article 8306, Revised Civil Statutes
of Texas, 1925. as amended, to be deposited with
the Treasurer of the State for the benefit of said
Fund and the Board shall direct the distribution
thereof.
(b) When the total amount of all such payments
into the Fund, together with the accumulated interest
thereon, equals or exceeds Two Hundred Fifty Thou-
sand Dollars ($250,000) in excess of existing liabili-
ties. no further payments shall be required to be
paid to said Fund; but whenever thereafter the amount
of such Fund shall be reduced below One Hundred
Twenty-Five Thousand Dollars ($125,000) by reason
p. 1813
The Honorable Cue D. Boykin. page 2 (H-385)
of payments from such Fund, the payments to such
Fund shall be resumed forthwith, and shall continue
until such Fund again amounts to Two Hundred Fifty
Thousand Dollars ($250,000) including accumulated
interest thereon. (Emphasis added)
There is ample statutory authority permitting the deposit of some
State funds in interest bearing accounts. Articles 2525, 2534, V. T. C.S. ;
Lawson V. Baker, 220 S. W. 260 (Tex. Civ.App., Austin~ 1920. writ ref’d. );
Attorney General Opinions M-468 (1969), M-203 (1968). As the statute
creating the Second Injury Fund specifically refers to the accumulated
interest on the payments into the fund, we believe deposit of all or part
of the fund in interest bearing accounts is clearly contemplated. There-
fore, we answer your question in the affirmative.
SUMMARY
The Workmen’s Compensation Second Injury
Fund may be deposited in an interest bearing
account.
Very truly yours,
JOHN L. HILL
Attorney General of Texas
DAVID M. KENDALL, Chairman
Opinion Committee
p. 1814