Hon. JohnW. Crudgington

County Auditor Potter County Amarillo, Texas

Dear Sir:

26, 1945, OpinionNo. O-6863 Re: Under the Constitutional Amendment to Article 8, Section 9, known as the "Re-allocationof County Fund Amendment,"may bonds be issued to mature
more than six years from date when their validity rests on the probability of reaffirmationby voters in six years.

We are in receipt of your letter of September which reads as follows:

'The constitutionalamendment (HouseBill #1.8) of Article 8, Section 9, which was voted by the people in November, 1944, and known as re-allocation of county fund amendment requires that the tax paying voters of each county vote 'uponthe matter before the Commissioners'Court is legally empowered to act under its provisions; in addition, the people of the countymust confirm by their vote each six years the right of the court to operateunder its provisions.

"The previous 25 cent restriction for improvementsmay now be expanded,which would allow greater bonding capacity,however the added bonding capacitymight be taken away by failure of the people to renew the use of the amendmentat any six year period.

"In view of this,would the Attorney General approve bonds (maturingmore than six years fromHon. JohnW. Crudgington,page 2 (O-6863)

date), the validity of which rested on the probabilityof an affirmativevote six years after the issuanceof same?"

Section 9 of Article 8 of the Constitution of the State of Texas, as amended in November, 1944, provides as follows:

"The State tax on property, exclusiveof the tax 'necessaryto pay the public debt, and of the taxes provided for the benefit of the public free schools, shall never exceed thirtyfive (35) cents on the one hundred dollars valuation;and no county, city or town shall levy more than twenty-five (25) cents for city

or county purposes,and not exceeding fifteen (15)cents for roadsand bridges,and not exceeding fifteen (15)cents to pay jurors,'on the one hundred ollar valuation,except for the payment of debts incurredprior to the adoption of the Amendment September 25, 1883; and for the erection of p,ublic buildings, streets, sewers,waterworks and other permanent improvements, not to exceed twenty-five (25)cents on the one hundred dollarsvaluation, in any one year, and except as is in this Constitution otherwiseprovided;provided,however, that the CommissionersCourt In any countymay reallocate the foregoingcounty taxes by changing the rates provided for any of the foregoing purposesby either increasingor decreasing the same,but in no event shall the total of said foregoing county taxes exceed eighty (80) cents on the one hundred~dollarsvaluation, in any one year; provided further, that before the said CommissionersCourt may make such reallocationsand changes in said county taxes that the same shall be submitted to the qualifiedproperty tax paying voters of such county at a general or special election,and shall be approvedby a marjority of the qualifiedproperty tax paying voters,voting in such election;and, provided further, that if and when such re-allocationsand changes in the aforesaid county taxes have,been approved by the qualifiedproperty tax paying voters of any county, as herein provided,Hon. JohnW. Crudglngton,page 3 (O-6863)

such re-allocationsand changes shall remain in force and effect for a period of six (6)years from the date of the electionat which the same shall be approved,unless the same again shallhave been changedby a majority vote of the qualified property tax paying voters of such county, voting

on the proposition,after submissionby the Commissioners Courtata general or special electionfor that purpose;and the Legislaturemay also authorize

an additional annual ad valorem tax to be levied and collected for the furthermaintenance of the public roads; provided, that a majority of the qualified property tax paying voters of the county voting at an election to be held for that purpose shall vote such tax, not to exceed fifteen (15) cents on the one hundred dollarsvaluation of the property subject to taxation in such county.And the Legislaturemay pass local laws for the maintenance of the public roads and highways, without the local notice required for special or local laws. This section shallnot be construed

as a limitationof powers delegated to co,unties, citle5, or towns by any other section or sections of this Constitution."

Since you do not state the amount of .Potter County permanent improvementtaxes now obligated, or the present authorized levy,we will, for the purpose of more clearly answeringyour question, state a hypotheticalquestion and

answer ,It.

When we use the term "PermanentImprovementFund,"

we mean the constitutionaltwenty-fivecent ad valorem tax authorizedby the Texas Constitution for co,unty permanent improvementsas provided for in Section 9, Article 8, above quoted.

QUESTION: If the PotterCounty Permanent Improvement Fund is now obligatedby outstandingbonded indebtedness in a
sum that requires ten cents for the payment of 'interest, principaland sinking fund, and the Commissioners'Court has beenauthorized, by a vote of the people, to increase the Permanent ImprovementFund Levy from twenty-fivecents to forty cents for a period of,six years from the date of theHon. JohnW. Crudgington,page 4 (C-6863)

election, (1) is the Attorney General authorized to approve permanent improvementbonds for Potter County, maturingwithin six years from the date of the election,or maturingmore than six years from the date of the election,based 'uponthe remaining thirty cent levy; or, (2) is the Attorney General authorized to approve Potter County Permanent Improvement Bonds when part of the issue of bonds mature more than six years from their date, in an amount that would require the remaining thirty cent tax levy for a period of six years~ and the remaining fifteen cent levy beyond the six year period?

In the City of Aransas Pass v. Keeling, 247 S.W. 818, 821, the Supreme Court of Texas held thatwhen the Legislature remitted the taxes to a costal city for a period of twentyyears for the purpose of building a seawall and the city issued seawall bonds payable over a twentyyear period, the Legislaturewould not be authorized to repeal said tax remittance at any time during the twenty year period since such a repeal would be an infringementof a contract. We have a similar situation In this case, in that the Constitution authorizes the people of PotterCounty, by an affirmative vote, to Increase their permanent improvement levy for a period of six years, and after increasing said levy, theywould be authorized to obligate the increased levy for a period of six years, and after obligating the entire levy, the county would not be authorized to change said levywithin the sixyear period, since it would be an infringementof a contract.

Assuming that the Commissioners'Court of Potter County has submitted to the people of,the county, and the people have approved, the propositionto increase the constitutional levy for county permanent improvementsfrom twentyfive to forty cents, and assuming that ten cents of the twentyfive cents, or ten cents of the forty cents is now obligated for the payment of Indebtednessalready outstanding,lt is the opinion of this departmentthat the Attorney Generalwould be authorized to approve Potter Co,unty Permanent Improvement Bonds maturingwithin six years from the date the increased levywas authorized in an amo,untthatwould require the remaining thirty-cent‘levyto service. However, the Attorney General would only be authorized to approve bonds maturingmore than six years from the date of the election that fifteen cents of the remaining thirty-five cent levywo,uldservice. The full thirty-cent levy cannot be obligated for a longerperiod than six years since fifteen cents of the thirty-sent levy is contingent upon the people of Potter County again authorizing the increased levy.. .

Hon. JohnW. Crudgington,page 5 (O-6863)

Section 9, Art. 8 of the Constitution,as amended,authorizes the counties to change or reallocate the tax levies for a period of six yearswith the right to change or reallocate again at the end of said sixyear period. The amendment does not in any manner affect the authority of the county beyond the six-year period, and if the people of the co,unty do not again authorize a change and reallocation the authority of the county reverts to the twenty-five cent tax levy. If the people of the county authorize a change or reallocation for a period of six years, said county is still authorized to obligate the twenty-fivecent permanent improvement levy beyond the six-yearperiod. If Potter County obligated the entire twenty-fivecent levy beyond the sixyear period, then Potter County would not be authorized to decrease the twenty-fivecent levy at the end of the six-yearperiod by an election since such an act would be an infringementof their contract.

Therefore, in answer to the second part of the hypotheticalquestion,you are advised that if Potter County, in compliancewith the provisions of Sec. 9, Art. 8 of the Constitution, increases its permanent improvement levy from twenty-five to forty cents, and is

now obligated to pay indebtednesswhich requires a tencent levy, the Attorney General is authorized to approve PotterCounty Permanent ImprovementBonds maturing for a longerperiod than six years, but the bonds of the iss'ue maturingwithin six yearsmust be within an amount that

a thirty cent levywould service,and bonds maturing beyond the six year periodmust be In an amount that a fifteen cent levywould service.

Yours very truly

APPROVED OCT 24, 1945 ATTORNEY GEXERAL OF TEXAS

/s/ Grover Sellers By /s/R. J. Long ATTORNEY GENERAL OF TEXAS R. J. Long RJL:EP:am Assistant

APPROVED OPINION COMMITTEE By /s/ B.W.B. Chairman