. R-721

T A

TEXAS

Bon. D. Richard Voges Opinion No. V-391 CountyAttorney Wilson County Re: Authority of a CommisFloresvllle, Texas sioners' Court to create

a road district embracing all of a Commissioner's Precinct which includes three establishedroad districtswith outstending bonded indebtedness. Dear Mr. Voges:

Your recent request for an opinion of thisDepartment is substantiallyas .follows:

"County CommissionersPrecinct No. 2, of Wilson County, Texas has within its boundaries three establishedRoad Districts, with bonded indebtednessoutstanding.

"It is the desire of the citizens of said CommissionersPrecinct to have established within itsbounds,ryone New Road District including the entire Commissioners Precinct, for the purpose of purchasing all existinghighways and turnpikes and of further constructingmacedemifed8 graveled or paved roads 8nd turnpikes.

The authority for the creation of such B district 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 Statemay hereafter establish one ormore 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 previously createdroad districts and political subdivisionsor precincts that haveHon. D. RichardVogea - Page 2 (V-391)

voted and issued road bonds pursuant to Section 52 of Article 3, of the Constitution, by entering an order declaring such road district establishedand defining the boundaries thereof.

. . .It

Article 752cc, V.C.S., reads, in part, as follows:

n

. . .but except as herein specifically permitted, no fractional part of a previously createdroad district shall be includedwithin the limits of the road dlstrlctcreated 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 includeswithin its limits any previously createdroad dlstrict, or any political subdivision or precinct,having at such time road bond debts outstanding, such included district 'orsubdivision shallbe fully and fairly compensated by the new district In an amount equal to the amount of the bonds outsta~nding against such included subdivisionsor district, and which shall be done in the form ,andmanner prescribed for the issuance of countybonds under Sections 25 to 27, inclusive, of this Act, except the petition shallbe signedby fifty or a majority of the resident property taxpaying voters of the new district, and the bonds proposed to be issued shallbe for the purchase or constructionof roads in the included subdivisionsor districts and the further construction,maintenance and operation of macadamized, graveled or paved roads and turnpikes, or in aid thereof."

It will be noted that the above mentionedArticle contemplatesthat such previously created road districts shall be fully compensa~ted by the new district in

an amount equal to the amount of bonds outstandingageinst 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'sAnn. CXV. St. art. 767d) in connectionwith sections 25 to 27 (Vernon'sAnn. 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 shallbe fully and fairly compensatedby the new district in thismanner: An even exchsngemade with the holders of the outstandingbonds, and if this cannotbe done, then an equal amount of the new bonds a marked 'non-negotiable'shallbe deposited with the county treasurer for the credit of the interest and sinking fund as a guarantee for the payment of such outstandingbonds that have not been exchanged, after which no levy shallbe made under the originalbond issue, but in lieu thereof from the taxes collected on the new bond issue shallbe passed to the credit of such included district the necessary sums (interestand sinking fund as so collected) to be used to pay in full the outstandingbonds thereof. Section 27 of the act (Vernon'sAnn. Clv. St. art. 7670) requires all such new bonds to be Issued in similardenominations,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 electionat which theywere authorized."

Inasmuch as Article 752~ provides themanner in which a Commissioners'Courtmay establishroad districts, the area of which will Include other road districtspreviously createdvhich 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 controllingwith reference to the handling of new bonds since It and subsequent &tiCleS BPS commonly referred to as the CompensationBond Title.Hon. D. Richard Voges - Page 4 (V-391)

Therefore, it Is the opinion of this Peprrtment that under Articles 75% and 7.52~0 a commissioner'spre- '~cinct, which includeswithin its boundaries 

### a previously created road districtwith bonds outstanding,may be incorporated into a road district if, ana only if, conpenaa,tion bonds are voted and authorized in conformitywith the provisions of the CompensationBond Title. Article 

### 7678, et seq.

A c&missioner’s precinct,which has within Ita boundaries establishedroad districts vith outstandingbonds, may not be incorporated Into a road district unless compensationbonds are voted and authorized in conformitywith the CompensationBond Title. Artiolea 752c, 752cc, 767a, bt seq.; San.Antonio & A.P. Ry Co. ti. State, 97 S.W. (26) 680.

Very truly yours

BWzdjm ATTORREXGDRERAL OF TEXAS

Burnell Ualdrsp Assistant

ATTORI'IEY

GENERAL