Case Information

*1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN

pinion or thlr a+ has bswx reoslrrd. operating 8n air

that r0r thm purport ths 00mmfs8i0a.n' boaa or mob OOoptyI court thfo county you ah optnion a8 rr0m County BUI legally issue war- 6 JV.U'~60 Of FUl'dWdn& Md irport under th6 terms cb thfe *2 .~ 228 Honorebls Fred T. Porter, Page 2

"I think it has been held that authoriwtlon to Issue negotiable bona6 a008 not rgllov~ th8 power 0r the county to ieeue time warrant8 and in this oonnsetion It will be notloed that ths statuts, seotion 2,says that ths county ma lrrsue negotiable bonda. Kocl vs. Pulte(Com. App v 10 m (2na) 694.

*Another ease i8 that or Phoenix Kutual Lita Ins. Co. vs. tcotilan 82 rea. (zna) ml, wherein It Is held that a oltp wa8 not liable on vendor lion aotes aesomea by the City whan purohaslng la&U fOr~UBe a8 an airport b8saU88 the only negotiable paper on vhloh a olty oould beoome liable r0r airport pUrpOsO8 r0ua b8 bonds votsd in aooordmos with the statuterw Artlolb 1269h, Vernon’8 Annotated Civil Statute8, read8 88 r0u08m

"Sea. 1. That the goraring body or any lnoorporatea alty In thl8 State map receive through gltt or dedl0atlOn, ati i8 hereby an- powersa to aoptim by purohaser wlthout eon- dmtmation or by purohue thmugh oonthmnatlon proooealngs, and thanafter malntaln and operate a8 an Air Port traots Of land, eitherwlthin or the oorparato liatits 0r 8Uoh alty and without withln the aountg inwhloh 8uah olty 18 8ltuated, the land aoqulrea and held by any swh city never to at any one time l xoS0a six hundred r0rty aor8, ma the ch1n~iS8iO~SrS’ court or any 00unty may llkswlre aoqulre, maintain and operate ior like purpore traots land within the limits 0r

the county, not to exoeea at any one time a&x hundred forty aare6.

"%!O. 2. For the purpose c$ oodaemnLng or purohaslng either or both, lands to bs used and maintained as provided in Seotion 1 hereor, ana improving and equipping the 8~0 rOr ruoh use, ths governing body of any alty or ths Oemmirsloners~ court or any oounty, rallfngwlthfn the terms or euoh Seatlon, may issue nsgatlable bonds of tb8 city or or the county, as ths oass may bs, and *3 229 Honorable Fred T. Porter, Page 3

levy taxes to provide f0r the lntereet and sink- ing fund8 of any such bon68 80 issued, the author- ity hereby given for the i8CiUanOe of such bond8 an% levy and oolleotlon OS auchtues to be exer- ol8eU In aocoraanoe with the provisions of Chapter 1 or Title 22 0r the RerislOd Civil Statute8 or

lQfX3.

"Sea. 3. lin dir Port aaqulred under lria by virtue 0r the t8I'SM 0r WI8 Aot (art. 1fibQh.) shall be under the management and control of the &JOQernillg body Of the Olty Ol! the C~i88IOller8' Ccurt of the aounty aoquiring the seme, ubloh 18 hereby exprelrely authorieed and ePlpowered to Im- prove, m8lntaIn 8nd 00nau0t the same 88 an Air POrti, aad rm that gUrpO8e t0 XEK&C, Ma prOQid0 therein ell nmmssary or tit impmvenmnte aa and to fir rush reasonable oharger Zaoilitle8 for the use th8reof as suah governing body or Co8miIs8loner8* Court ehall aoem rit, and t0 mske rule8 and regulations governing the u8e thereof.

All proo8ea8 from euoh oharges 8haU be devotsd exalurrlwly to the malntenanoe, up-keep, improve- ment and operation or ruoh Air Port and the ra- ailitie8, 6truotures, ana improvement therain, and no city or county shall be liable for ln-

juries to perr0n8 resulting from or oaus8Q by any defective, unllaund or unufe oonditlon of any auoh kir Port, or any part thereor, or thing of any aharaoter tilereIn or rsaultlng from or

aaueed by any negligenoe, want of &ill, or laok or oar0 on the part any governing Board or Commlra8loner8~ Court, agent, off leer, senent or employee or other person with reierenae ta

th6 oonstruotion, ImprovQDslnt, management, eon- or malntenanoa of any =oh hir Port 0r hot,

any struoturs, improvement, or thing aP any oharaater whatever, looate therein or oonneatetl therewith.

*Sea. 4. That in addition to ena oxelualQe of any taxe8 which may be levied f% the intereet an% slnklng rund or an bold8 i8Slted undw the authority of tbls Act f Art. 1#369h.) the govern- lng boay of any olty or the W1unl88loner8' Court

Iionarr,ble Fred T. Porter, Pags 4

Of NIY 00 UA ty, falling Within the teL?mll hereof, may and ir hereby empowered to levy and oollaot a speolal tax not to exoeed for any one year five cent5 on eaok One Hundred Dollars for tb purpose of lnprovlag, operating, maintalnlng and oondu~tini: any Air Fort which much city or oounty map ao ulre under the pr0v1slo~ of thl8 Aot (Art. 126Qh. 7 and to provibe all suitable atruuture8, and taoilltles thereIn. Provided that nothing in this Aot (Art. 1269h.) shall be oonrtrued as authorizing any city or oountp to sxoeed the llmite of lrdebtedness plaoad upon It under tim ConstltutloB."

The tkmmirelo~ert~' Court her the powor to lnsur indebtednesr, not only to the extent of the revenue8 ai t&e oounty during the term8 Of offtioe of 8uoh aOmmlssloasrs, but also to the extrnt of oontraoting away revenue8 whloh will be oolleoted during many yoara, and to eridenoe the indebtedness by intereat-bearing warrant8. Unlikr bonds, Interest-bearing warrante mep be issued without the author- ity of ths texpaying voters. The power oonfsrred upon the Commissioners' Court to ltasue bonds in certein Instanoaa ia an additional pcsverg it does not aMti the utiating en- thorfty to inrue non-negotiable oounty warrant@ tar the BIPED purpose. 2mre is eaid to be no entiagonluo betmoon tha power of+ the Gommlaslonerr' Court to Imue, ri thin 1ewh.l oounty warrants In payment of pub110 Improvements llmlts, and the povierto issue county bonds ror euoh purposer. The two powsm relet6 to making ime of the oounty *a orsdlt in di6tinotl.p different way8 and evidenolng its debt by in- Ptrumente of clearly dtfrerent nature*. In many oe88Il it is posefble for tlm Commia~ione~s~ Court to eooOmQli6h the desired improvement within the limits of the oOunty*a gen- eral poner of taxation by a aweller ezpendlture than i8 ordinarily Ln view where a bond issue is proposed, iud with- out the need of resorting to bonds. nit3 ~80 or vfamanta oannot, however, be availed of in order to oiroumvent the leas govsrnlng the lseua~oe of county bonds. (Texas Juris- prudenoe, Vol. 11, page 663 and,the authorities oited there- in).

XB the oars OS Adams, et al v. MoOill, et 81, 140 3. w. (2d) 332, amow other thing@, It was held In eifeot that in determining the power oi' the county to issue *5 Honorable Fred T. Peter, &go 5

time warrant8 payable over e pericd of gear8 for the con- atruotion of irnpmV@IIeBtS On a oounty livestook end agri- oulturalexhibltlon building, it could not be considered that there was an ettempt to pay for the bIprOVellHBt8 by the lasuenoe of bonds on the theory that after the iss~anoo of time warranto, the werrents would be refunded by the le~~anes of negotiable bonds. Cnder the statute author- izing a county to provide for an annual exhIbition of hor- ticulture and agrloulturel produota, but not expressly conferring povmr to lseue time warrante to pay fbr the improvements oonstruoted for euoh purpose, the county had Wimplisd poweP to lseue time warrants payeble over a perlod of years for the lmprovenento on llveetook and egribtiturel subjeot to the sxpmea m- exhibit bulldlngr. k oounty, striotlons imposed by the Conetltutlon and gsnerel Inwe, has power to lseue time warrant8 ln payment Sor Improvements it iti expreslrly authorlaed to dnnistrebt, provldod the ap- ta the issuanoe of’ suoh wan-ante am plloabla mlatlonr observed.

In view oi the foti@ing authorities, tho above eteted queatlon la reepeot~nUy answered in the eifizmative. Provided, however, the oounty does BOt 8xooed the limaits OS lndebtedneas placed UpOB it unber the tiMtitUtioB. that tbrs foregoing fully anawem your

TruStiBg Inquiry, we are

Youra very truly ATmIwEY alaEmiL OF Ti!xhs BY krdoll Willi~e AEd. &Ant APPROVE1;~Y 1, 1941