195
PRICE DANIEL Februaw 20, 1948
Al-IO- GENERAL
_.. ...~. :.- .._. _. .
lions;-John
A; 'Biimber~ opinionNo..+of
Coimty.Attorney
Gontile~~coaiiity Re:. The autho&ty of the
Gonzales, Texas coIimLtssloners'
~Collrtto
dlsitolvea road dis-
trict which has an
authorlzatlofifor the
iixmance of bonds and
upon which n'oaction
has been taken.
Dear Mr. Bombergi
Yak I'eijuestfor an cipinlbnof this.Department
reUt.ting'~o'a
bond autlio~lzatlon'tidthe dlssolutlon.of
Boad.Mstriat No. 11 In your county Is, in part, as fol-
lows:
.
"Bgorder Of the CoIsmissionerls Court
Of Gonzal&w Couiit$,Texas, date&Jam&y lst,
1937, RotidDistrict Hoi'll-wascrest&d. This
Rdad DltitriotNo; 11 Includedthe.t'&rI.t6ry
imiluded in Road Districts&a. liarid3 of
Gonzales Cotity, both of which had been in
exUt&nce for.- years prior to 1937. A
road'bond eleotlen was ordered-by.theCommla-
sloner's Court on January 27th, 1937 'to de-
ter&n& whether or not the bonds of said Road
Dl~trl6t~No.~liof Go&ales County;.Texas
shall be issued in the aUOImt of F6@ty Thou-
eand:Dollare',for the purpose of constiwc-
t&m; maintenance and.operationof macadamiz-
.ed, graveled, ompaved roads and ttiq&kes,
or in aid thereof, and whether'ornot ad
valorem taxes shall be-leviedannually on
all taxable propertjwlthln said'RoadMs-
trict Ifow.ll,of Gon%ales County, Texas for
.the'purposeof paging the interest on said
bonda'and to proqide a sinkingfund for the
reddption thereof at waturity. This bond
election~barriedby the~~reqtisiti3vote. The
Road District Ro. 11 bonds have never been
Hon. John A. Rquberg,page 2 (V-507)
issued and after the order of the Consuls-
slOner*s Court canvassingthe returns and
declaring the propositioncarried,no fur-
ther action was taken.
"At the time this bond election was
petitionedfor, ordered,and voted on, both
Road District No. 1 and Road District Ro. 3
had outstandingbonded lndebtednessesaggre-
gating In excess of $100,000.00.
"The Comndssion~r~SCourt nowirishes
to abolish Road District No. 11, and dis-
pose of the bond authorization,in order.
that the territorycan be redlatrictedmore
in line vith currentroad demands and a new
bonded indebtednesson the new district can
be created. :
"QUl?&TLO& How can t&is authoriza-
tion%o issue $40.000.00bonds-cifRoad '.
bistrht Nd. 11 vdted in 1937 be &et aside
and the Road District 11 abol%shed?
"Now, l.Q.viewof thifact'that the'::. 1 -,
purpose for which the bonds were voted no '..:.
.i
longer exists, and.that the wording of
tS viilldatiog iAatute"(Aptiule752Y-33
nierelyauthorizesand empower% the Com-.~-.
ndsslonerlsCourt to proceed with the'is-
suanoe of bonds not voted.in S;ccordam%
wlththe CompensationBond Title, ipnirl tbat
over 10 years have pass&d since the bonds
were authorized,would an ord&% of the:Com-
ndss$onkr*sCourt, reciting such faots, and
ordering and declaringth6 authcirBatb.i-
void and dis~olviug.theR&d District, be
effetittiland valid to the extent'thatAt.
Would not be siecessaryfor a proposed Ma.4 .'
,dIstrlctIneludIngportloii:oS-R&ad Diatiiet~
lVo.i-ll,-tp
admpl~~w%thBond .C~n@ensiPtlon -
3tatut~es.Uregard to the authorl~e~.bc@s
of such'R6adDiitrlct'll,i?hensub& gro-:'
posed Road Mstrlct votes new~bqxds?
- ThkC~esion6~~s Com.%& a c&r& of.lUdted
juriad3.cticiti
and confined%toth&authorlty conferred up-
on the court by the Legislature.
'~.,
:
Ron. John Ai Bomberg;.
page.3 '(V-507)
19’7
'8rticle7&&a, Vernon~a'Clvil.Sta&tee,~'provides
that in the evi%t any road~bondvoted otileijtiedby a
county, po%iti&al aribdi~lsionor deflmSd &citplet remain
uneold at the time of I&e passage of this A&; theh'the
Commlsslonera~Court may upon petition order an election
to determine whether or not sucfiroad bonds shall be Fe-
voked-moreancelled. .Rowever,the effecti*eiitateyof this
Act was'.Septe%ber.22,1932, &ml foti bonds-'were
voted in
1937, n&d.ng the provlalona of this.Actlnapplic8ble'ln-
asmuOh as it applies only to those SituationsIn effeot
at the time ~ofthe.passageof this Act.
_
-~ in'the'caseof Orr v. Marrs, 47 8. W. (26) 440,
the court stated:
-%he bonds canaot"be'revokizid'o*
cancel-
led by 8ny agency mess-the power.35040.so
la conferred~by1e~Lalatlve8uthoHty 8nd
any doubt &~to the exlstence'of.suc~power
is,-und~r~wellestabl.Ssl&d~prlnclples,
re-
solved against its existence.'
.
Y&r~'fim;t;u&l.situstio~reflects thsf'Rtid'Dl.s-
trlct HO; ll;:liiclud&Road'MatrSOts R&S. 1 and.3 in
Gon%al;esCeuuty, both-of'whichhad an outstimdlngbond-
ed indebt&ine*s~ tiexcetiam‘of#&OO,OOC~OO,&id that-'iti
th&ereiatioti~of R&d District No. 11 the Conimlsifon6rir'
Court failed to.oomplyvith the Competiatioti-Bond.Act.
. '.
'Article 767d, V.-C. S.; provides as follows:
.~ .. ..
%liere~any road dlstrlct-createdunder
the proviai'6nsof this-Act includeswItbin.
its llndts any previouslytieated POWI dis-
trlct; okanji polltlcal subtlivisi& or pre:
cinct, havbg at such time road bo@debts
outstandlug,, such included district or.Sub-
dlvQion.shall be fully and fairly competi-
sated by the new district in tinamount equal.
to the 8mount of the bonds'outatandingagainst
such included subdivisionor district,8nd
which tihallbe done in'the formandmanner
prescribed fo5 the lsimance.of'coimty bonds
under Sectlon~ 25 to 27, intiluaive, of.this
Act, except the petition sh&ll be signed by
fifty or a majority of the resident proper-
ty taxpa* voters of the new district, and
the bonds:&roposedto be Issued shall be for
the purehaae or construction of roads in
Han, John A. Romberg,page 4 (V-507)
the included subdlviaonsor districts
and the further aoristructlou;
maluteuauce
aud operationof macadamlsed,graveled or
paved roads and turnpikes;or in aid there;
Acts 1926 .JgthLeg., 1st C.S., p. 23,
%I 16, Sec. 26.
In San Antonio &A. P. fry 'Co.v. State, (Con.
App.) 95 3. W. (26) 6gO;the court said:
"Section28 (Vernon*s'Auu.Clv.St.
art. 767d 9 in connectiontith seCtIons
25 to 27 Vernon'sAm. Civ. St. arts.
767aL767c1, of said act provides that
where any road districtcreated under
the provisionsof said act includes one
previously createdaud having road bonds
outstanding,such includeddistrict shall'
be fully and fairly compensatedby-the'new
district in this'manuer: Au even exchange
made with the holders of the otitstaudlng
bonds, 'andif th+ cannot be done, theh an
equal .amotmtof the new.bondsmarked 'non-
negotiable'shall be deposlted'wlththe
county treasurerfor the credit of the in-
terest and sinkingfund as a guarantee for _
the'payment~of such outstaudlugbonds that
have not been exchanged,after which no :
levy shall be made under the orlglual bond
issue, but ln.lieu thereof,fromthe taxes .
eolleoted on the new bond iasue.shallbe
passed to the-creditof such included dls-
trlot the nesessaxy sums (interest and
sinking fund as so collected)to.be'used
to gay In full the outstandingbonds there-
of.
It will be seen from the foregqing that'the
CommlssiorierslCourt of &Males Oouuty;-in ;dreatlng~ ..e
Road'DlstrictHo. 11 faiied to oemply~tithAMlcle 767d;
supi-a,&nd it ls..the~opinion‘oS~this'De~tmeat~thst
Road Mstriot Hd:~il, although &Mated by,the Cotis-
sioners' Court, dld not function pursuantto~law; and
even though a bond issue wasauthorized in'said ais-
trict, the same is of no force aud effect.
Inasmuoh as no bonds wepe issued; it is aaswa-
ed that no tax waa~levledin Road Distriot Ro. ll.for
the indebtednessin Road Districts~Ros.1 and 3. There-
. . .
_.. ._-. ..-_k ..
- ., II-99
,,,._:
'-Hon.Jo& A. ~Rombetig,~
Gagi 5 ~(V-507)
-_ i.,..
': .
' fore,...itfollows that had.Districtk Boos.~'1 &..3-were-' '
not.af'fected.~.&y
the:.imeakion-of Road Mstrict X9,.11 on
Jantm-y l,-.:l~~a%nce't~~pnrpose-.for-~phich haid dis-
trict was created.wasnev6r put in exlstenee. The.dis-
trict never,dSU.fuuctlon as a district. .-' ~.
-.._- .
It'ls.trti~ 'tlktthe.50th-Lsgialati@e(&it.
752y-3, V; C. S:) validated &issued bolid1sSuijsof road
dlstric$s,.sncfi~&sRoad Mstrlbt Ro. Il. ,Valmsting
acts, however, are.e'usually e&acted'forthe'piose of'
. curing matters,of procedure Or mechanics,alidit is oW
opinion that by'necessa~y'impllcatlon the Act would ap-
ply only Eo bon&issues; 'theproceeds.ofwhich could be
used.to caw:out the mandate of the voters. For in-
stance,mppoae'a situation@ere cOunty bonds.&re voted
to'constmct a specific road, and after the prdposition
is voted upotibat b&fore the bonds Sir&-issued-aiid deUv-
. ePed,YtheStat6 Highk&y'Departmeiit deslgWteti'~tti road-
aa'k state.hlghmiyand full3 cotitructsths same. It-is
clearly evldent.ifi~sach a ;situation
that the @rpose.for
.wbiohsaid l)ondsacre voted would cease to exist. .We do' '
not think that it c0ti.dbe~the .leglslative intent in the
enactmentof such's validatingact that said bbnds could
ther&ftep.be issued and sold. The Act could apply only
to.bmil IstiiPBs,
th~proceeds of which could~be used to
.oamy out the bond purpose.
Based-upon yam factual situatLon;it is our
~oplni?nthat the road diat?ict never cam& into active
existence. Before a.n&w road dlstrlct,vhich includes
5 previously created district vit&outstanding bonds,
can effectlv6lycome into eti&tence,ooapenqationbonds.~
bust be voted.',CompBnsation-bond& were mever votad In
the riltimtionunderSoonsideration; moreover, the p&pose
fog whldhthe rogd bonifsfierevoted iri.DlatrIct~~No; '11 -
no longer existii; We do notethink that th& word "abol-
ish" could tieapplied.to sticha district, for fhe.same
would necess&rily contemplateprWloua ed actnsl'exis-
tence. We do l&L& t&at the Comisslonetist-Co&t,un-
der the circu&stances;would,havethe power, implied at
lea&t, to rescind its former order; It passed an order
purporting~ablish the district for the constitu-
tional and statutory purpose, but that purpose was not
cem?ied out, and.has now ceased to exist. uithln its
valid discretion, therefore,the court may determine to
Pescind Its fdrmer order.
H6n. John A, Romberg, page 6 (V-507)
After the Fescissionof such order, the Court
may, If it so det&mines;'create another road district
under the statutdryprocedme, which dihtrict would ln-
elude part of the terrltorgwhich was purportedlywlth-
in the district, the order for the establishmentof
which was rescinded.
SUMMARY
1. The Ueation of a road district
which Includes a previouslycreatedroad
district with an outstaridlngbonded ln-
debteduess,requires compliancewith the
ijrovislonsof the CompensaticinBond Act
'an&compensationbo+ds must.be
I voted. _
2.. An Act which.validates~pi=evlous-
1s voted but unissuedbonds does not ap-
ply to bonds if the purpose for which
they were voted no longer exists.
3..'The Conmdssloners'Cotirtof‘
Gonzales Comity, Texas, under the facts
aubmitted,.mayby ap@ropriateorder.
rescind Its previously'enacted'ordei. .
tatter ~%Xch Road'Dlsti.ict'N~.
11 was
purP;ortedly estibllshed,snd'maythere-
upon establish another road district ;'
which would Includeapartof.the terrl- .. - :'
to%y w&L@.i*as purportedlytilth%nsaid
Road Mstrlct Ho. 11. ,~
Bti:mu BYBiii%GllmFfaldrep~
Assistant '
,. .’
APi'ROVED: ~' .:
Untitled Texas Attorney General Opinion
Combined Opinion