Honorable A. E. Hickerson 

County Attorney 

Montgomery Cm&y 

Conroe, Texas 

Dear Mr. Hickerson: Opinion No. O-1707 

Re: Selection and Desiguation of 

Depository for San Jacinto 

River Conservation end Reclamtion District. 

We acknowledge receipt of your communication dated November I:;, 1939, 

in which you request the opinion of this department on the following questions 

which we quote from your letter: 

(1) "Should the authorities ofthe San Jacinto River Conservation and Reclamation District be required to select a depository for funds, or should they use the same depository a8 

the county and county txhoole." 

(2) ",I8 the Comnieeioners' Court in any way'responsible 

for the selection of this depository." 

In considering the above questions we have carefully read and studied 

House Bill No. 832, passed by the Forty-fifth Legislature in ~1937, creating 

the San Jacinto River Conservation and Reclamation District under authority 

of Section 59 of Article ~6 of the Constitution of the State of Texas and defining the powers and duties of the said district. We have also read and studied 

House Bill No. 941 and House Bill No. 1079, passed by the Forty-sixth Legislature in 1939, the same being amendments to House Bill No. 832. 

Neither of the above mentioned acts of the Legislature specifically 

authorize or require the San Jacinto River Conservation and Recl+uation District to select and designate a depository for it8 funds. It will be noted, 

however, that Section 6 of House Bill No. 832, Regular Session, Forty-fifth, 

Legislature, after providing for the appointmentof a teniporary board of directors and the election of officers, requires that: 

"Each of esid temporary directors shall take and subscribe 

to an oath of office, similar to the oath required of County 

Commissioners, and shall execute bond in the sun of Five Thousand Dollars ($5,000.00) payable to the District, the sufficiency of which bonds shall be determined by the State Board of 
- 

Honorable A. E. Bicker-son, Page 2 (O-1707) 

Water Engineers, which bond after being recorded in the officialbond records of the county in which the district maintains 

its office shall be deposited with the depository selected and 

approved for the deposit of the fund.6 of the District." 

(Emphasis added.) 

It IS manifest, we think, from the above that the legislative act 

creating the San Jacinto River Conservation and Reclamation District and defining its powers and duties contemplated that a depository should be selected 

and designated for the deposit of the funds of the District and the official 

bonds of its directors. This, no doubt, would be true even in the absence 

of the above quoted provision a6 it has always been the policy of the Legislature to require each political subdivision of the State handling public funds 

to select and designate a depository for the deposit and safe keeping of its 

funds, and to require the depository selected to give a good and sufficient 

bond as security. State Bank of Commerce vs. United States Fidelity & Guaranty 

Company, 28 S.W. (2d) 184, from which we quote a6 follows: 

"A sound public policy requires that the State should take 

special security from every one who collects or handles public 

funas. That rule seems to began old one in this State, and IS 

applied in all cases without exception." 

Section 2 of House Bill No. 832, supra, reads as follows: 

"The San Jacinto River Conservation and Reclamation District is created as a governmental agency, a body politic and 

corporate, vested with all the authority as such under the 

Constitution and laws of the State; and shall have and be recognized to exercise all of the powers of such governmental 

agency and body politic and corporate as expressly authorized 

in the provisions of the Constitution, Section 59 of Article 

XVI, for Districts created to conserve, control, and utilize 

to beneficial service the storm and flood waters of rivers 

and streams of the State, or such powers a6 may be contemplated and imnlied by the uurooses of this provision of the Constitution,-and as-may be conferred by General Law, and in the 

provisions of this Act; and shall have and be recoepized to 

exercise all the rights and powers of an independent governmental agency, body politic and corporate, to formulate any 

and all clans deemed essential to the operation of the District anh for its administration in the control, storing; 

preservation, and distribution to all useful purposes of the 

storm and flood waters of the San Jacinto River and its tributary streams; and a6 such District, shall have and be recognized to exercise such authority and power of control and 

regulation over such storm and flood waters of the San Jacinto 

River and its tributaries as may be exercised by the State of 

Texas, subject to the provisions of the Constitution and the 

Acts of the Legislature." (Emphasis added.) 
Hocrrable A. E. Hickerson, Page 3 (O-1707) 

It will be noted that Section 6 of said House Bill No. 832 provides 

that the San Jacinto River Conservation and Reclamation District shall have 

"all and singular, the powers, duties, functions, and to observe procedures 

insofar as the same may be applicable and practicable, to accomplish the purposes of this Act, as is provided by Chapter 25 of the General Laws of the 

Thirty-ninth Legislature, Regular Session, and the several amendments thereof." 

It appears, therefore, that the San Jacinto River Conservation and 

Reclamation District has, in addition to the powers set out in House Bill No. 

832, and its amendments, supra, all of the powers set out in Chapter 25 of 

the General Laws of the Thirty-ninth Legislature, Regular Session (Article 

7880), and should follow the procedure therein set out insofar as the same 

may be applicable and not in conflict with the specific terms and provisions 

of said House Bill NO. 832, and its amendments. 

Chapter 25 of the General Laws of the Thirty-ninth Legislature, Regular Session, carried in Vernon's Annotated Civil Statutes as Article 7880, 

is a very comprehensive statute, containing in excess of one hundred and fifty 

sections, dealing with water control and improvement districts, in general. 

Section 113 of Article 7860 provides that a depository shall be selected for 

such districts by the directors thereof, "in accordance with the provisions 

of law for the selection of depositories for counties in this State, and the 

duties of such depo$itory and the bond and securities to be given thereby shall 

be the same as provided by law for county depositories, except as herein otherwise expressly provided." This Article further requires the depository so 

selected to furnish a good and sufficient bond to fully protect the district 

and guarantee the safe keeping of its funds and directs how the funds shall 

be kept and paid out. 

From the above we have concluded that the San Jacinto River Conservation and Reclamation District should select and designate a depository for the 

safe-keeping of its funds and official bonds, a+ should not rely on the county 

depository for this purpose. If this is not done, the funds of the Conservation and Reclamation District will be unprotected, as the county and school 

depository bond only protects those funds belonging to and dsposited in the 

depository by the respective political subdivisions. Hale County, Texas, et al. 

vs. American Indemnity Company, et al., 63 Fed. (2d) 275. 

Inasmuch as the legislative act creating the San Jacinto River Conservation and Reclamation District gives to the district all and singular the 

powers, duties and functions set out in Chapter 25 of the General Laws of the 

Thirty-ninth Legislature, Regular Session, and the several amendments thereto 

(Article 7860, Revised Civil Statutes of Texas), and charges said district 

with the duty of observing the procedure provided for in said Act, insofar 

as the same may be applicable and practicable, it is our opinion that it would 

be proper for, and the said Conservation and Reclamation District should follow the procedure set out in Chapter 25 of the General Laws of the Thirty-Ninth 

Legislature, Regular Session, for the selection of a district depository. 
I . . 

Honorable A. E. Hickerson, Page 4 (O-1707) 

In answer to your first question, it is the opinion of this department that the directors of the San Jacinto River Conservation and Reclamation 

District should select and designate a depository for its funds and in so doing should follow the procedure provided for in Article 7880, Section 113, 

Revised Civil Statutes of Texas, the same being a part of Chapter 25, General 

Laws, Thirty-ninth Legislature, Regular Session. 

In answer to your second question, it is the opinion of this department that the Commissioners' Court is in no way responsible for the selection 

of the depository for the Conservation and Reclamation District. The duty 

of selecting the depository rests solely on the directors of the district. 

Yours very truly 

APPROVED DEC 9, 1939 

/s/ Gerald c. Msnn 

A!iTOREEIGENERALOFTEXAS 

ATTORNEY GF.NERAL OF TEXAS By /s/ Tom D. Rowell, Jr. 

Tom D. Rowell, Jr. 

Assistant 

TDR:FG:Ul 

APPROVED 

OPINION 

col.Qmrl!EE 

BY /s/ BWB 

CHAIRMAN