l i OFFICE OF THE‘ AYI’ORNEY GENERAL OF TEXAS AUSTlN . :9 Honorable Eortlmr drown Bxecutlve Secretary ToWher Ratirezult System of Taxas Austin, mxcs Dear sir: to the Teaoher contrlbutioa to the’Taackcr Rotirezont i;jr&tsiil?” As ws unlorstnnd it, ths bill which ym attaoh to ymr letter conter?;platcstho eatcblishncnt of a sr;oolsl fund in the Etato Treesury, fron which special fund ths Ronorable Rortimef Brown, Rags 2 State's contributiomto tho Teachers' Retirement System are to be appropricted by tho LcSislature biennially ln acCOr?anC8 with t&8 FrOYisian3 of Constitution Article 8, Section 6, In order to insure that there shall be biiiltUp in such fund a bslance available tar appropria- tion and sufl'ioientto discharge tht?Ststs's obligation to the leacher Retirtment Syster;,the Stats Treasurer is directed to deposdt to the credit of such special fund a certain 8~ of mmey out of tha first taxes colleoted for the benefit of and vrhiohwould othazwlso 60 into the Get- era1 Reveoue FUnd. The effect of this is to allocate certain tax nionies for deposit to the credit of a sp8cial fund, rather than to establish a "preferred c1ad.F against the General Rmonue Fund. We find no constitutional pro- vision inhibiting t:?is. It is well to obsorva, hozevsr, .thatthe bill which you cmlosod is not entirely clear in its anaounccaent of the purpose which ~;a gather is intend- . ed to bs accoriplished. As dram, the bill is suoceptiblc of the construotion thet the Legislature, in violstion of the provisions of Artiolo 8, Section 6, of the Constitution,. limitingappropriations to two year periods, is atteziptiag to sake an appropriation unlinitcd in tine to the State ac- dinulation fund of the Teacher RetirercentSystem. The bill key be redrafted so as to nlekeit oleer that the oreatio,? of a spsoial fund subject to appropriation by the Legisla- ture is COLt8W&ated, not an appropriation. With respect to your second question, you are ad- Vised that v:e find no provision in the Constitution prohfb- iting t.heLegislature froa approprietin,gdirectly from th8 Genoral Revenue Fund to provide the State's contribution to the Teacher Retiresent System, Article 2922, Section 8, Vernon's Civil Statute;, it is true, provides that 9:o ep- propriation shall be msde by the legislature out of the General l'undsof the State of Texas for the payzent of ben- efits as herein provided, psyrznts con only be ,rsdeout of special taxes levied 63 authorized in the Conotitutloml tieudiuentfor the retirenent of teachers." Eoveusr, Article 3, Seotlon 4Sa mrely provides,; "In addition to the poviorsgiven to the Legislature, under Section 40 of Article 3, it shall hsvo the right to levy taxes to provide a rstiremnt fund , , .'I . xonorable Xortimar Brown, page 3 The offect of this Const.ltuticnnl provision is Eerely to add the fund for the rctirwent of teachers to the public purposes for w!lich taxes @morally nay be lev- ied and expmded by the Lc&slsture under Article 3, Sec- tion 48. Section 48s neither crpreoely nor by titiplication requires the lavy OS a special tax or taxes exclusively for the benefit of the Tsacher RetireLent Fund, The ef- fect of the provision i’3md in Article 2922, section 8, mbave quoted is sinply to amounce a Legislative policy that the SinancinG OS teachers 1 retirezmt contributions by the State shall be by the levy ‘of special taxes for that purposo. This provision, as other purely legislctive pro- ncunco::ents, is subject to repeal or oiodlficatlon by sub- sequent leyislative aotlon. Xn fact, this right,~is especially recognized and preserved by the Legialaturo, %;;ith respect to every prov1sio.n of the Act, in Article 2922, Goction 13. Yours vkp truly A’PTORNZYGZX%L OF TXAS g&&&c&/ Jjy I~ . Richard w. Fairohlld Assistant .. AFPROVEDNOV 20, 1940 . ATTORNEY GENERAL OF TMAS ..