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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