Untitled Texas Attorney General Opinion

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: ~' .: