Untitled Texas Attorney General Opinion

OIRNEYGENERAL OFTEXAS AUR1IN 11. TlzxAs This Opinion Overrules Opinion O-96 insofar as it conflicts vith this opinion. Honorable R. A. McElrath County Auditor Cooke County Gainesville, Texas Dear Sir: Opinion Ro. O-5533 Re: Whether certain provisions of Article 1641, R. C. S., 1925, are mandatory upon the Commissioners1 Court before entering Into a valid contract for an out- side audit, and a related question. After quoting Article 1641, R. C. S., you submit the following questions in your letter of August 18, 1943, upon which you desire the opinion of this department: "1 . Before entering Into a valid contract for an outside audit is it mandatory upon the commissioners1 court to have presented to it in writing a resolution providing for such audit, such resolution to be publicized as setforth in the statute, and adopted at the next regular term of the Court? "2 . In the adoption of any such resolution by a majority vote of the four commissioners will it be necessary that at least three commissioners vote for such adoptlon,,or may It be adopted by a vote of two commissioners and the County Judge with two Commissioners voting against adoption." Artlcics 1641 and,l646a,,R,.C.S. of 1925, respec- tively, read as follows: Article 1641. “Any commissioners court, when in its judg- ment an imperative public necessity exists there- for, shall have authority to employ a disinterested, Hon. R. A. McElrath, page 2 competent and expert public accountant to audit all or any part of the books, records, or accounts of the county; or of any district, county or pre- cinct officers, agents or employes, including au- ditors of the counties, and all governmental units of the county, hospitals, farms, and other instltu- tions of the county kept and maintained at public expense, as well as for all matters relating to or affecting the fiscal affairs of the county. The resolution providing for such audit shall recite the reasons and necessity existing therefor such as that in the judgment of said court there exists official mls-conduct, willful omission or negligence in records and reports, mlsappllcatlon, conversion or retention of public funds, failure in keeping accounts, making reports and accounting for public funds by any officer, agent or employe of the dis- trict, county or precinct, including depositories, hospitals, and other public institutions maintained for the public benefit, and at public expense; or that in the judgment of the court, It is necessary that It have the information sought to enable it to determine and fix proper appropriation and expendl- ture of public moneys, and to ascertain and fix a just and proper tax levy. The said resolution may be presented In writing at any regular or called session of the commissioners court, but shall lie over to the next regular term of said court, and- shall be published in one issue of a newspaRer-of general circulation published in the county; pro- vided if there be no such newspaper published in the county, then notice thereof shall be posted in three public places in said county, one of whfch shall be at the court house door, for at least ten days prior to its adoption. At such next regular term said resolution shall be adopted by a majority vote of the four commissioners of the court and approved by the county judge. Any contract entered Into by said commissioners court for the audit pro- ‘vided herein shall be made in accordance with the statutes applicable to the letting of contracts by said court, payment for which may be made out of the public funds of the county in accordance with said statutes. The authority conferred on county auditors contained In this title as well as other provisions of statutes relating to district, county and precinct finances and accounts thereof shall be held subordinate to the powers given herein to the commissioners' court. (Acts 1923, p. 170.)" .- Hon. J. A. McElrath, page 3 Article 1646a. "The commissioners' court of any county under twenty-five thousand population ,accordlngto the last United States census may make an arrangement or agreement with one or more other counties where- by all counties, parties to the arrangement or agreement, may jointly employ and compensate a special auditor or auditors for the purposes speci- fied in Articles 1645 and 1646. The county commls- sioners' court of every county affected by this article may have an audit made of all the books of the county, or any of them, at any time they may desire whether such arrangements can be made with other counties or not; provided the district judge or grand jury may order said audit If either so desires." Article '2343, R. C. S., 1925, provides: "Any three members of the said court, lnclud- ing the county judge, shall constitute a quorum for the transaction of any business, except that of levying a county tax. Id." In bringing Article 1646a into the Revised Civil Statutes, 1925, this article erroneously refers to Article" 1645 and 1646 where in Its original enacted form, it express- ly referred to."Articles 1459a and l@pb" '(R. C. S., 1911). In such original~form, this statute was enacted~by the same' 39th Legislature, Reg. Seas., which enacted~Senate.Bill 382, Chapter 104, authorizing the preparation; printing, sale and distribution of the R. C. S. of Texas, 1925, with the~ex- pressed intention that It be added to "Article 1459b", R. C. S. of 1911, and "be called Article 1459c." Since Articles 1459a and 1459b were brought forward in the 1925 revision as Article 1641, It Is apparent that the added statute (Art- icle 1459c) should have been more clearly codified with Art- icle 1641 and expressly refer therein to said article In lieu of Articles 1645 and 1646 as It presently reads. The foregoing error In the 1925 revision was early pointed out In an opinion of this department written by Honorable Bruce W. Bryant, First Assistant Attorney General, to the County Attorney of Walker County, Huntsville, Texas, under date of October 5, 1931. Ron. R. A. McElrath, page 4 Former Opinions of this department as well as Court decisions therefore construed Article 1641 and 1646a, R. C. S., 1925, together ,inpassing upon questions similar to those herein presented, relating to a' special audit. In Cochran County v. WestAudIt Company 10 S. W. (2d) 229, the Court held that under Article d46a the Commissioners' Court of Cochran County would be &th- orized to emplo an auditor without a rigid compliance with Article 16ii 1, and that this statute, being a special statute, would control over Article 2368. The last named article, relating to competitive bidding for contracts, has since been repealed and reenacted,as Article 2368a, Vernon's Annotated Civil Statute, wherein it contains a proviso exempting from.the publication requirements ,of the statute contracts for personal or for professional services or for work done by the county and paid for by the day, as such work progresses. We note that in the Cochran County Case,~above mentioned, the court found that the order of the~Commls- sioners' Court did In fact lie over untll~after the next regular term when It was passed, but as to further objec- tions levelled against the auditing company onfailing to meet other requirements of Article 1641, supra, as affect- ing the validity of the contract, no discussion of same ap;~ pears In the opinion. Recovery was permitted quantum meruit and writ of error refused. In a later case, West Audit Company v. Yoakum Coun- ty, 35 S. W. (2) 404, It appears the company had brought the action on a contract for an audit made with Yoakum County and in the alternative, sought relief on an implied contract based upon quantum merult. We quote from the opinion oftthe Cottmlsslonof Appeals, Section A, written by Justice Sharp: "It is undisputed that the provisions of Article 1641 were not complied with in making the contract In controversy. -In our opinion We&Audit Company can not recover upon a written contract made with Yoakum County to audit Its books." The Yoakum County Case appears to be the last case by any Appellate Court in which Article 1641 was considered. In view of the above quoted language found in that opinion, Hon. R. A. McElrath, page 5 it is our opinion that your first question and the first of the two alternative questions embraced in your second ques- tion should be answered in the affirmative, and they are so answered. Our Opinion Ho. O-96 is hereby overruled, Insofar as it is in conflict with this opinion. APPROVED SEP 30, 1943 Yours very truly, Grover Sellers ATTORNEY GRNERAL OF TEXAS FIRST ASSISTANT ATTORNEY GWERAL Bs /RI Km. J. R. King Assistant APPROVED OPINXON COMMITTRE