Untitled Texas Attorney General Opinion

THE~ATTORNEYGENE- OP TEXAS Aus-rriwII.TEXAS FVILL WI&SON A-- GENERAL August 12, 1960 Mr. Joe Welson, Director Opinion 190.WW-901 Board of County and District Road Indebtedness Ret Legal effect of Duval Righway Building County Comaissionere' Austin 1, Texas Court order on its Special Road Refunding Dear Hr. Uelsont Warrants The background of your request for an opinion of this department ia substantially as follows: 1. Oh September 15, 1938, the Cosrissioners* Court of Daval County issued two series of County Road Warrants, A ,a B, in the total amount of $155,000.00. 2. Dn January 10, 1949, the Commissioners Court issued $140.000.00 "Duval County Special Road Refunding Warrants" for the purpose of refunding at an interest sav- ing of 196,a like amount of the 1938 warrants then outstanding. 3. In January, 1956, the Board~of County and District Road Indebtedness (hereinafter called the Board) began paying under the provisions of Article 6674q-7, V.C.S. the principal of and interest on the warrants when due. 4. on Way 13, 1957, the Coaiseioners' Court of Duval County sought to repudiate the warrants and ordered that the Roard,be notified to suspend payments. pLr.Joe Delson, page 2 (m-981) 5. On June 4, 1957, the Board asked the Attorney General for an opinion as to the status of the warrants and what course the Board should pursue. 6. ,AttorneyGeneral's Opinion UW-206 (1957) advised that copies of the original pro- ceedings relating to the authorization of the 1938 warrant issues were not available: 1 therefore, this office was in a0 position to pass upon the legality of the warrants. Consequently, the Eloard was counselled to cease payments on the 1949 warrants but otherwise maintain the status ~tloby continuing to build up funds for their possible payaent in the future. 7. On Deceaber 2, 1958, the Cosmissioners Court of Duval County acted to repeal the repudiation ordlerof,Hay 13, 1957, and requested the Board to resume its pay- ments under Article 6674q-7, V.C.S. The Board now requests an opinion from the Attornay General as to the current status of the warrants. This office now has certified copies of the 1938 and 1949 warrant proceedings by the Duval County Commissioners' Court. The orders of September 15, 1938, authorizing the origiaal warrants, reflect an attempt to issue warrants under Article 2368a, V.C.S. 1 'fheorders were not available because the uinute books of the Commissioners' Court of Duval County had been impounded by a United 8tates District Court. Hr. Joe Welsen, page 3 (WW-9Sl) The order of January 10, 1949,,reflects that the Corrissioners* Court intended to refund at a lesser interest rate the then outstanding $140,000 of the original 1938 war- rants with a like a+mmt of Quval County Special Road Re- funding Warrants.. These obligatiotisremained essentially warrant obligations ef the county regardless of the title bestowed upon the?. ,Woreover,the cancellation of the war- rants originally issued and the substitution of others in their place did not ahange their character. Wall v. Monroe Couaty, lS3 U.S. 74, 26 L. Ed. 430. Therefore, be advised that the 1938 and 1949 orders gaalify to beaefit fvon the several county warrant validation statutes enacted by the Texas Legislature, the most recent being Acts 56th Leg., R-8. 1959, eh. 321, p. 700 (Art. 236Sa-6, V.C.S.). The ~enactunt of validating statutes is a valid eacer- else of a power residual,iuthe legislative process. Desde- mena Independent School District v. Howard, 34 S.W.(?d)’ 840 (Comm.App.). In this maaaer the Legislature, if it sees fit, &an cure defects in past proceedings or aets'of governmental bodies. These curative measures can render whole that which once aust have fallen because of a failure to substantially observe the prescribed statutory process. ,Welan Countv v. State, 83 Tex. 182, 17 S.W. 823. If the Roard is satisfied that these warrants are otlaerwiseeligible uader Article 6674g-7, V.C.S., and that the iaatrurants presented as proof of the obligation are substan- tially in coapliance with the orders authoriring their issa- ante, then paymnt thereon puy be resumsd since it in the opinion of this office that the Legislature has validated the proceedings creating the indebtedness. me orders of the,Duval Couuty Comais- sioners’ ,Court of 1938 and 1949 and the financial 'obligationsim the form of warrants issuing therefrom have been nr. Joe Nelson, page 4 (WW-901) validated by the Texas ,Lagislature. Therefore, the Board of County and District Road Indebtedness may re- sume payment thereon provided there is compliance with Article 6674q-7, V.C.S. Very truly yours, WILL WILSQR Attbrney Oener@&f, T GW-S APFROVRD: S)IuIOW CGmllITTBR: 99.V. Qcppert, Chairman Tom I. EzFarling Fhocion S. Park, III ,+ughton Brownlee, Jr. Mart H. Walls RRVIEWED FOR THE ATTORWRY GBWRRAL eJr: Leonard Passmore