November 29, 1947

Hon. Eugene Talbot County Attorney Smith County Tyler, Texas Opinion NC. V-442 Re: Constitutional fund from which c0unt.y hospital bonds are payable. Dear Sir: We have receivedyour letter of November 18, 1947, in which you ask whether county hospitalbonds are payable from the county general fund or from the county permanent improvementfund.,

Article 4478, Revised Civil Statutes,under the conditionsstated therein,authorizesthe issuance of county bonds.for "establishing,enlargingand equipping said (county)hospital and for all other necessarypermanent improvementsin connectiontherewith,"is and parenthetical.insertion added.) Section 9 of Article VIII, Constitutionof Texas, and Article 2352, Revise~d Civil Statutes, limit the authority of the county to levy ad valorem taxes to certain purposes and prescribe the rate~for each purpose. Such purposes are the following:

1. For county purposes. ,2. For,road and bridge purposes. To pay jurors. For the erection of public buildings and other permanent improvements.- We believe that the question in which you are interestedhas already been fully determinedboth by the courts of the state and by this department: namely, that bonds issued for county hospital purposes under Article 4478 are issued for permanent improvementpurposes and are payable from taxes levied therefor out of the permanent improveme.nt ax authority,and that the same cannot legally be paid out of the general fund,Hon. Eugene Talbot - Page 2 L V-442

115 Y.W. $7 was upheld. were payable ing the case the case of'Seydler v. Border (W. E. Ref.), 702, the constitutionality of Article 4478 The court, in effect,held that such bonds out of the permanent, improvementtax, citof Robertsonv. Breedlove,61 Tex. 316. In Opinion No. O-2599, this departmentheld that the county hospital improvements authorizedby Article 4478 were payable from the permanent improvement tax. In Opinion No. V-118, this departmentheld that county hospital bonds could not be issued because the necessary tax levy to pay the bond requirements would exceed the constitutional limitation. Similarly,'this

departmenthas determinedthat county park bonds and countyairport bonds are issued for purposes of "permanent improvementsn and are payable from the permanent improvementfund.

If such bonds are payable from the permanent improvementfund, then moneys of the general fund cannot be used therefor, for it is well settled that moneys from one constitutional fund cannot be transferred to another.

such fund, and can be.ex ended for no other purpose. Carroll v. Williams 109 iex. 155 202 S.W. 504, (affirming,

in part, Wiliiamsv. Carroil, 182 S.W. 29).

SUMMARY

County hospitalbonds, issued under the authorityof Article 4478, are issued for permanent improvements and are payable, both as to interestand principal,from taxes levied thereforunder the authority of the commissioners' court to levy taxes for the erectionof,publicbuildingsand other permanent improvements. Provided,however, that such bond taxes can in no **event** 'increase

the maximum amount of the total permanent improvementtax beyond the constitutionallimit. Such county hospitalbonds cannot legally be paid with moneys belonging to the*

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Ron. Eugene Ta~lbert - Page 3 - v-442

county general fund or with taxes levied for such county purposes. , Very truly yours,

GWS : erc ATTORNEY G!%NERA& OF TE'XAS

APPROVED:

. . ATTORNEYGENERAL

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