AURTXN IGTEXAR

March 22, 

### 1960

Mr. Frank M. Jackson Executive Secretary Teachers

Retirement System of Texas Austin, Texas OpinionNo. ww-815

Re: Does the Board of Trustees of the Teacher Retirement System of Texas have the authority to make payment out of the Teacher Retirement Expense Fund to the GeneralRevenue Fund for rent for space occupiedby the TeacherRetirement System in the State Office Building and related quesDear Mr. Jackson: tions.

We quote as follows fromyour recent letter:

"1. Does the Board of Trustees of the TeacherRetirementSystem of Texas have the authority to make payment Retirement System Expense Revenue Fund for rent for TeacherRetirement System Building? out of the Teacher Fund to the General space occupiedby the in ,theState Office

"2. If the answer to question 1 is affirmative,what State Official shouldbill the Teacher RetirementSystem for rent and ,deposi,t the' rent paid to the GeneralRevenue r'und?

"3

. Does the Board of Trustees of the Teacher Retirement System of Texas have the authority to make payment out of the Teacher Retirement System Expense Fund to the General Revenue Fund the amount certifiedby the State Auditor in the form of a Comptroller's P-l invoice as the cost of the audit made during the year ended August 31, 1959?"-. -

Mr. Frank M. Jackson,page 2 

### (~~-815)

An appropriationby the Legislature is not necessary in order for theBoard of Trustees of the Teacher Retirement System to make the expendituresin question. Attorney General's Opinions~~-600 (1959)and WW-565 (1959). In Attorney General's Opinion

### ~~-565 (1959)we said, in part, as follows:

1,

. . . the respective funds of the two retirement systemshere involvedfihe Teacher Retirement System and the State Employees Retirement Systed may be expended in accordance with the general laws governing the operation of the two systemswithout prior specificappropriationby the Legislature of Texas.

. . ." (Emphasisadded).
Section 10 of Article 2922-1,Vernon's Texas Civil Statutes, provides for the creation of thevarious funds of the TeacherRetirement System. Included is the Expense Fund from which all expenses of administrationand maintenance are directed to be paid. Section 12 of the statuteplaces the general administrationand responsibilityfor the proper operation of the System in a Board of Trustees and authorizes the Board to establish rules and regulations for the administrationof the funds createdby the Act and for the transaction of its business. More particularly,Section 12 provides in part:

II

. . .persons engagedby the State Board of Trustees, and all other expenses of the Board necessary for the operation of the Retirement System, shallbe paid at such rates and in such amounts as the State Board of Trustees shall aprove, provided that in no case shall th b &eater than that paid for like or sirnil% szrvice of the State of Texas." (Emphasisadded).
This Departmenthas approved a provisionproposed to be incorporated in the GeneralAppropriationsBill which would appropriate to various special fund agencies occupying space in the State OfficeBuilding a certain sum for the payment of office rent to the State Building Fund. Attorney General's OpinionWW-604 (1959). There it was sarid:Mr. Frank M. Jackson,page 

### 3 (~~-815)

"Since the occupancy of such space is necessary to the carrying out of the particular duties of an agency of the State, the Legislature is authorized to appropriate moneys for the payment of rent. and II

. . . the above quoted language is'valid since it carries out the purpose of the general law creating the special funds

. . ."
The same reasoning compels a like result in the present case. According toyour letter, the agencywas directedby the State Building Commission to move into the State OfficeBuilding. This agency, like othershoused in the State Office Building, is being billed for rent. The payment of rent for space occupiedby the TeacherRetirement System in the State OfficeBuilding is clearly necessary to carry out the purpose of the'general law creating the special fund. Beyond a doubt it is an *expenseof the Boerd necessary for the operation of the Retirement System"within themeaning of Section 12, Article 2922-1, Vernon's Texas Civil Statutes.

From the above quoted portion~of'Section12 it is
seen that the amount to be paid as rental is left up to the Board so long as the amount is based upon actual expenses of the Board'necessary for the operation of the Retirement System and is not greater than the rent paid by other agencies of the State. Hence, your first question is answered in'the affirmative. Turning now to your second question, Section 

### 7 of,Artitle 678m,Vernon's Texas Civil Statutes,provides, in part, as follows:

"TheCommission shall obtain title for the State and retain control'of the real property acquired for sites and of the buildings located thereonuntil final constructionis completed and the buildings are occupiedby the State agencies to be housed'therein, at which time the management and control of saidbuildings~shallbe transferred to the Board of Control.

. . ."

We are advlsedby the State Building Commission that in the case of the State OfficeBuilding this transferhas been made to theBoard of Control. Therefore, it is our opinion that the Board of Controlhas the responsibilityof billing the TeacherRetirement System for rent in the State OfficeMr. Frank M. Jackson,page 4 (WW-815)

Building, andyour second question is answered accordingly.
Cogent to this inquiry is the fact that the Teacher Retirement SystemAct, Article 2922-1,Vernon's Texas Civil Statutes, provides an exclusivemethod whereby payments are to be made from the funds under the control of the State Board of Trustees of the TeacherRetirement System, Subsection 

### 3 of Section 

### 13 of that Article provides as follows:

"TheTreasurer of the State of Texas shall be the custodianof all bonds, securities,and funds. All payments from said funds shallbe made by him on warrants drawn by the State Comptroller of PublicAccounts supportedonly upon vouchers signedby the Executive Secretary of the Retirement System. A duly attested copy of a resolution of the StateBoard of Trustees designating suchperson shall be filedwith said Comptroller as his authority for issuing such warrants."

It follows that the expense of office rent is to be paid in the manner prescribed above and in no otherway.

We observe that Section 15 under Article III of the General AppropriationsBill of the 56th Legislature refers to the payment of office rent by transfers from Special Funds to the GeneralRevenue Fund. That provision,however, does not apply here since it relates only to the agencies grouped under Article III, and the TeacherRetirement System is classified in the GeneralAppropriationsBill under Article IV.
Relative to your third question,Article IV of the GeneralAppropriationsBill of the 56th Legislature in referring to the TeacherRetirement System appropriates a certain
sum to the "SpecialTrust Account in the hands of the Treasurer," and ArticleV, Section 10 of the generalprovisions of the bill provides:

"None of the appropriationsherein made shallbe used to employ any firm or person to audit thebooks of any department,board, commission, institution or State agency, thisbeing the dutyMr. Frank M. Jackson,page 5 (W-815)

of the State Auditor; provi.ded, however, that in any instanceswhere the funds available to said State Auditor are not, in his judgment, sufficient for any requested or contemplatedaudit, the departmenthead or heads havbng authority to disburse the appropriationsherein made are hereby authorized to direct the State Comptroller to transfer from any appropriations to the appropriationherein made for the State Auditor the amountwhich in the judgment of the State Auditor is necessary for the purpose of making such audit."

However, the Legislature cannot by rider in an appropriationbill amend a general law. Attorney General's OpinionsV-1304 (1951)and w-604 (1959). Therefore, any authority theBoard has to pay the cost of the audit must be found in the general law governing the TeacherRetirement System.

From what we have already s,i.id, it is clear that the general law governing the TeacherRetirement System authorizes the Board of Trustees of the System to pay this claim for an audit if the Board finds it to be an expense necessary for the operation of the Retirement System, and it is no more than the amount paid by other State agencies for the audit. This the Board of Trusteeshas apparently done since it amended its budget to provide for the payment of such claim. But the cost of the audit, like the rental payment, must be paid according to the exclusiveprocedure provided in Subsection 3 of- Section 13, Article 2922-1, Vernon's Texas Civlil Statutes, the above quotedportion of the GeneralAppropriationsBill to the contrarynotwithstanding. Your third question is consequentlyanswered in the affirmative.

SUMMARY

The Board of Trustees of the Teacher Retirement System has authority to pay rent out of the Expense Fund of the TeacherRetirement System to the General Fund for space occupied in the State Office Building. The Board of Control has the responsibilityof billing the TeacherRetirement System for rent. TheMr. Frank M. Jackson,page 6 (~~-815)

Board of Trustees of the TeacherRetirement Systemhas authority to pay out of the Expense Fund the cost of an audit made by the State Auditor. All payments from the ExpenseFund are to be made in accordancewith the procedure prescribed in Subsection 3 of Section 13 of Article 2922-1,Vernon's Texas Civil Statutes.

Yours very truly,

WILL WtLSON Attorney General of Texas

Assistant
HGB:mg:ms

APPROVED:

OPINION COMMITTEE W. V. Geppert,Chairman

Lawrence Hargrove Jay D. Howell RaymondV. Loftin, Jr. CharlesD. Cabanlss

REVIEWED FOR THE ATTORNEY GENERAL BY: Leonard Passmore