We are in receipt of your request for the opinion of this department on the following question:

"May-Gray County now issue a portion of the $500 000 of the original $800,000 bona issue whit h were voted in 1931 and use the proceeds thereof for the construction of State Highway 18 in Gray County under the provisions of H.B. 688 and particularly Section 6(a), paragraph 3 thereof and will such bonds.be eligible to participaJe in the County and Road District Highway Fund, the same as if the bonds were is- sued and spent prior to January 2, 1.9391" Briefly, the facts underlying your question are that in March of 1931 Gray County authorized by vote the issuance of $800 000 of bonds for State highway purposes, and out of such au horization only @&,OOO of this issue were sold; none e

of the remaining bonds have ever been issued.

We think, under the facts stated that such bonds would, when issued and the proceeds there0 h expended in the con- struction of roads constituting a part of the State Highway Sys- tem, be eligible for participation in the County and Road Dis- trict Highway Fund provided by House Bill 688 of the Forty-sixth Legislature, Regular Session. Clearly, under this state of facts, the bonds come within the exception provided in paragraph 3, sub- section (a), section 6 of H.B. 688, which reads, in part, as fol- lows:

"In addition to, and regardless of, the other provisions of this Act, all bonds voted by a county prior to January 2, 1939, insofar as amounts of same were or may be issued and the proceeds actually *2 Hon. Joe Gordon, page 2

expended in the construction of roads which are a part of the designated system of State high- ways, shall be eligible in the distribution of moneys coming into said County and Road District Highway Fund the same as provided for other bonds under t his Act, and as of the date of the designation of said roads as a part of the State System ***n

We are enclosing herewith our Opinion Number o-1334, which treats of this exception in detail and the conclusion therein reached, in our opinion, substan c ially answers the question submitted in your request.

Very truly yours ATTORNEY GENERAL OF TEXAS *By s/s Clarence E. Crowe Clarence E. Crowe, Assistant APPROVED MAY 6,194o

/s/ Gerald C. Mann

ATTORNEY G3NERAL OF TEXAS

APPROVED: OPINIONCOVCO~TEE

BY: m,

CEC-s:wb

Encl.