Untitled Texas Attorney General Opinion

THEATTORNEY GENERAL OF TEXAS Hon. J. F. Rolubec County Auditor Lavaca County Hallettsvllle, .~ Texas Dear Sir: Opinion No. O-5831 Re: Mag"the Commission6rs Court of Lavaca County invest in U. S. War Bonds funds of the Lava6a County Flood Control District accumlated because of the un- foreseen conditions caused by the War? This office has your request for opinion, which is as follows: "By Act of the 4i'thLegislature (1941) H.B. 361, appearing on page 763 of the printed Acts of bald 47th'Legislature 'Regular Session,' 'General and Special Laws, Texas', copy of which no doubt you have on your desk? there was'donated and granted by the State of Texas to the Lavaca County Floocl Control District of Lavaca County, Texas, one-half of all the State ad valdrem taxes collected in Lavaca County for general revenue purposes for a period of ten years, commencing with Sept. lst, following the adoption of the Act'; The taxes so remitted are to be used by said Lavaca County Flood Control District for the prevention of continued public calamities caused by great floods, and for the purpose of constructing Improvements to control flood-waters In said county for the protection of life, property, soil, forests and public highways, lying within said County, etc. "To date a good deal of the improvements In and along the Lavaca River, in Lavaca County, are under construction with funds derLved froinsuch tax remlssiori,~butby reason of the War and War Emer- gency, Lavaca County has been unable to purchase the nedessary machinery, or unable to contract for same, and unable to secure labor in sufficient num- ber for the purpose to fully carry out said lmprove- Hon. J. F. Holubec, page 2 O-5831 ments as provided in said Act at this time, and by reason thereof a sum of money has accumilated in said Fund, and apparently cannot be expanded for thenpurpose Indicated for at least twelve"months because of.'suchmaterial, machinery and labor shortage, and the COMMI3SIONER3 COURT 13 DESIROUS TO KNOW IF BY ANY LEGAL CONSTRUCTION OF SAID ACT THEY WOULD BE PERMITTED TO INVEST THIS ACCUMULATED FUND IN BOND3 OF THE PRESENT WAR LOAN, making said Investment In such bonds maturing within one year. "The Court is fully aware of the fact that when the Act was passed It was not anticipated that the funds would accumlate, but unforeseen coiidl- tlons have brought this accummlatlon of fund about, and the Court, If permissible, is interested to help the Government with such fund for'at least one year's tlme~because it now appears that the money will be on hand and idle for at least that period of time. "Your opinion will be appreciated." The Iavaca County Flood Control District was create6 by the Acts of 1941, 47th Legislature, H.B. No. 362. Among other things said Act provides that "Such dls- trict shall be a governmental agency and body politic and cor- porate with the powers of government. 0 0 e "The Commlssloners Court of Lavaca County, Texas, is hereby designated as the governing body of such district and the agency through which the management and control of the alstrict shall be administered and it is hereby empowered to do any and all things necessary to carry out the alms and purposes of this Act. e . o . 9, 0 . . In addition to the powers given to the Commis- sioners Court by general laws and in addition to the general powers herein given it shall be authorized In connection with the Lavaca County Flood Control District to exercise the follow- ing added rights, powers, privileges and functions: The Act further provides that the said dlstrlct is empowered 'to do any and all other acts OP thlngs,,necessaryor proper to carry into effect the foregolng powers. And said Act further provides: .~8, 0 . 0 All existing State laws, general OP special, applicable to contracts to the receipt and Hon. J. F. Holubec, page 3 o-5831 disbursement of, and accounting for, public funds in Lavaca County are hereby made applicable to the contracts to the receipt and disbursement of, and accounting for, any funds collected and disbursed under the terms of this Act. The provisions of this Act shall be cumulative of any other laws upon the subject matter." Said Act also provides that: "An'ytaxes hereafter donated, granted, diverted or remitted to Lavaca County or the Flood Control District created herein by the'3tate of Texas, collected during the remainder of the year may be utilized for the purpose consistent with this Act. . . ." From the foregoing it is apparent that the Lavaca County Flood Control District is a political subdivision of the State of Texas, Sectlon~l of House Bill No. 746',Acts of the 48th Legislature, Regular Session, 1943, reads as follows: "All political subdivisions of the State of Texas which have balances remaining in their accounts at the end of any fiscal year may Invest such balances"in Defense Bonds OP other obligations of the United States of America; provided, however, that when such funds are needed and the'obligations of the United States in which such balances are Invested shall be sold or re- deemed the proceeds of said obligations shall be de- posited in the accounts from which they are originally drawn." It is our.opinion, and you are therefore so advised, that the political subdivision of the State of Texas known as the Lavaca County.Flood Control District may at the end of any fiscal year Invest such balances as It may have on hand derived from the tax funds donated and granted by the State of Texas for the construction of flood control improvements and the mainten- ance or operation thereof under the terms of House Bill No. 361 of the Regular Session, 47th Legislature, in the securities of the United States of America described in your requestfor opinion. By the terms of the law creating said district this power may be exercised by the Commissioners Court of Lavaca County. Hon. J. F. Holubec, page 4 O-5831 Yours very truly ATTORNEY GENERAL OF TEXAS By s/Geo..P. Blackburn Gebrge"'P.Blackburn Assistant GPB:AMM:wc APPRO~ F'EB8, 1944 s/Grover Sellers ATTORNEY GENERAL OF TFIXAS Approved Opinion Committee By sBW'B Chairman