Untitled Texas Attorney General Opinion

. R-721 T A TEXAS Bon. D. Richard Voges Opinion No. V-391 County Attorney Wilson County Re: Authority of a Commis- Floresvllle, Texas sioners' Court to create a road district embracing all of a Commissioner's Precinct which includes three established road districts with outstend- ing bonded indebtedness. Dear Mr. Voges: Your recent request for an opinion of this De- partment is substantially as .follows: "County Commissioners Precinct No. 2, of Wilson County, Texas has within its boundaries three established Road Districts, with bonded indebtedness outstanding. "It is the desire of the citizens of said Commissioners Precinct to have estab- lished within its bounds,ryone New Road Dis- trict including the entire Commissioners Precinct, for the purpose of purchasing all existing highways and turnpikes and of fur- ther constructing macedemifed8 graveled or paved roads 8nd turnpikes. The authority for the creation of such B dis- trict is set forth in Article 752~ of Vernon's,Civil Statutes which is as follows: 'The County Commissioners' Courts of the several counties of this State may here- after establish one or more road districts in their respective counties, and may or may not include within the boundaries and limits of such districts, villages: towns and municipal corporations, or any portion thereof, and may or may not include pre- viously created road districts and politi- cal subdivisions or precincts that have Hon. D. Richard Vogea - Page 2 (V-391) voted and issued road bonds pursuant to Section 52 of Article 3, of the Constitu- tion, by entering an order declaring such road district established and defining the boundaries thereof. . . .It Article 752cc, V.C.S., reads, in part, as fol- lows: n. . . but except as herein specifi- cally permitted, no fractional part of a previously created road district shall be included within the limits of the road dls- trlctcreated under the provision of this Act, . . ." Article 767d of the Revised Civil Statutes is as follows: “Where any road district created under the provisions of this Act includes within its limits any previously created road dls- trict, or any political subdivision or pre- cinct, having at such time road bond debts outstanding, such included district 'or sub- division shall be fully and fairly compen- sated by the new district In an amount equal to the amount of the bonds outsta~ndingagainst such included subdivisions or district, and which shall be done in the form ,andmanner prescribed for the issuance of county bonds under Sections 25 to 27, inclusive, of this Act, except the petition shall be signed by fifty or a majority of the resident property taxpaying voters of the new district, and the bonds proposed to be issued shall be for the purchase or construction of roads in the in- cluded subdivisions or districts and the further construction, maintenance and oper- ation of macadamized, graveled or paved roads and turnpikes, or in aid thereof." It will be noted that the above mentioned Art- icle contemplates that such previously created road dis- tricts shall be fully compensa~tedby the new district in an amount equal to the amount of bonds outstanding ageinst such included districts. Hon. D. Richard Vogea - Page 3 (V-391) In the case of Ssn Antonio & A.P. Rg. Co. vs. State, 95 S.W. (26) 680 (Corn.App.) the Court stated as follows: "Sec. 28 (Vernon's Ann. CXV. St. art. 767d) in connection with sections 25 to 27 (Vernon's Ann. Clv. St. arts 76'&-767c), of said act provides that where any road district created under the provisions of said act includes one previously created and having road bonds outstanding, such included district shall be fully and fairly compen- sated by the new district in this manner: An even exchsnge made with the holders of the outstanding bonds, and if this cannot be done, then an equal amount of the new bonds a marked 'non-negotiable' shall be deposited with the county treasurer for the credit of the interest and sinking fund as a guarantee for the payment of such outstanding bonds that have not been exchanged, after which no levy shall be made under the original bond issue, but in lieu thereof from the taxes collected on the new bond issue shall be passed to the credit of such included dis- trict the necessary sums (interest and sink- ing fund as so collected) to be used to pay in full the outstanding bonds thereof. Sec- tion 27 of the act (Vernon's Ann. Clv. St. art. 7670) requires all such new bonds to be Issued in similar denominations, bearing the same rate of interest, having the same dates of maturity, the intent being that they shall be bonds of the new district instead of bonds of the included districts and be dated after the date of the election at which they were authorized." Inasmuch as Article 752~ provides the manner in which a Commissioners' Court may establish road districts, the area of which will Include other road districts pre- viously created vhich have voted and issued road bonds pursuant to Section 52 of Article III of the Constitution, it is our opinion that you are correct in your statement that Article 7678 is controlling with reference to the handling of new bonds since It and subsequent &tiCleS BPS commonly referred to as the Compensation Bond Title. Hon. D. Richard Voges - Page 4 (V-391) Therefore, it Is the opinion of this Peprrtment that under Articles 75% and 7.52~0a commissioner's pre- '~ cinct, which includes within its boundaries a previously created road district with bonds outstanding, may be in- corporated into a road district if, ana only if, conpen- aa,tionbonds are voted and authorized in conformity with the provisions of the Compensation Bond Title. Article 7678, et seq. A c&missioner’s precinct, which has within Ita boundaries established road dis- tricts vith outstanding bonds, may not be incorporated Into a road district unless compensation bonds are voted and authorized in conformity with the Compensation Bond Title. Artiolea 752c, 752cc, 767a, bt seq.; San.Antonio & A.P. Ry Co. ti.State, 97 S.W. (26) 680. Very truly yours ATTORREXGDRERAL OF TEXAS Burnell Ualdrsp BWzdjm Assistant ATTORI'IEY GENERAL