Untitled Texas Attorney General Opinion ( 1977 )


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  •                      The Attorney         General of Texas
    December 9, 1977
    JOHN L.HlLL
    Attorney
    General
    Honorable Joe Hubenak                Opinion No. H- 1102
    Chairman, Committee on
    Agriculture and Livestock          Re: Constitutionality
    House of Representatives             of H.B. 11 in ratifying
    Austin, Texas                        actions taken to partic-
    ipate in the National
    Dear Chairman Hubenak:               Flood Insurance Program.
    You have requested our opinion concerning the effect
    and constitutionality of section 2 of House Bill 11, which
    ratifies the proceedings and actions of any political sub-
    division "with respect to participation in and compliance
    with the National Flood Insurance Program." Acts 1977,
    65th Leg., 1st Called Session, ch. 4, at 58. This portion
    of House Bill 11 was passed as a curative act to validate
    actions taken in such regard without proper authority.
    See Attorney General Opinion H-1011 (1977).
    -
    Your questions are essentially as follows:
    (1)   Does the Texas Legislature have the
    power to ratify, confirm, approve,
    and validate past, unauthorized ac-
    tions taken between June 30, 1970
    and September 1, 1977, supposedly
    under Article 8280-13, V.T.C.S., by
    those counties and political sub-
    divisions which had not qualified
    for participation in the National
    Flood Insurance Program by June 30,
    1970?
    (2)   Does House Bill No. 11 destroy all
    those causes of action for damages,
    injunctive relief and/or taxpayer
    relief which may have arisen since
    June 30, 1970 against,those counties
    and other political subdivisions
    which took unauthorized actions, as
    described above in question cl)?
    p. 4516
    .    I
    Honorable Joe Hubenak     - Page 2    (H-1102)
    (3)   Does House Bill No. 11 violate
    Article I, Section 16 of the Con-
    stitution of the State of Texas,
    which reads:
    No bill of attainder, ex
    post facto law, retroactive
    law, or any law impairing
    the obligation of contracts,
    shall be made.
    It is well established that the Legislature may validate
    a statute or act of a political subdivision so long as it
    originally had power to enact or authorize it. Perkins v. State,
    
    367 S.W.2d 140
    , 145 (Tex. 1963): State v. Bradford, 
    50 S.W.2d 1065
    (Tex. 1932); Anderson County Road Dlist. No, 8 v. Pollard,
    
    296 S.W. 1062
    (Tex. 1927);I Nolan County v. State, 
    17 S.W. 823
    (Tex. 1891). Such statutes of tour se must be consistent with
    the Constitution.
    Article 1, section 16 has been construed to prohibit the
    enactment of only those retroactive laws which impair vested
    rights. Deacon v. City of Euless, 
    405 S.W.2d 59
    , 62 (Tex. 1966);
    cox v. Robison, 
    150 S.W. 1149
    , 1156 (Tex. 1912); Attorney
    General Opinion H-634 (1975). Curative statutes are necessarily
    retroactive, since they are "intended to act upon past trans-
    actions. . . .II Hunt County v. Rain County, 
    7 S.W.2d 648
    , 649
    (Tex. Civ. App. -- Texarkana 1925, no writ). Texas courts have
    upheld a number of curative statutes without discussion of arti-
    cle 1, section 16, including statutes which validate the forma-
    tion of districts and their issuance of bonds and collection of
    taxes. Matlock v. Dallas County Arcadia Fresh Water Supply Dist.
    NO. 1, 
    12 S.W.2d 181
    (Tex. Comm'n App. 1929, opinion adopted);
    Anderson County Road Dist. v. Pollard, supra; Brown v. Truscott
    Independent School Dist., 
    34 S.W.2d 837
    (Tex. Comm'n App. 1931,
    jdgmt adopted). Similarly, want of authority to annex property
    has been held cured by validation.  Hunt v. Atkinson, 
    17 S.W.2d 780
    (Tex. Comm'n App. 1929, jdgyt $c$ed).    In Matlock v. Dallas
    County Arcadia Fresh Water Supp y     . No. 1 su ra
    held that taxes levied by an invalidly establ~s&~t``d?%Ect
    had been validated by the Legislature and could be collected from
    the individual defendant. To the extent that the Texas courts
    have spoken on the subject, they have upheld curative statutes
    against claims based on article-l, section 16. Brown v. Truscott
    Independent School 
    Dist., supra
    ; Louisiana Ry. & Nav. Co. v. State,
    
    298 S.W. 462
    , 466 (Tex. Civ. App. -- Dallas 1927), aff'd, 
    7 S.W.2d 71
    (Tex. Comm'n App. 1928, jdgmt adopted) (dm.
    p. 4517
    .    I
    Honorable Joe Hubenak    - Page 3     (H-1102)
    The,failure of the courts to discuss the impact of article
    1, section 16 on curative statutes suggests that it does not
    prohibit them. One court has, however, indicated that a vali-
    dating statute cannot divest a private right acquired under a
    final judgment. Inman v. Railroad Comm'n, 
    478 S.W.2d 124
    , 129
    (Tex. Civ. App. -- Austin 1972, writ ref'd n.r.e.). In our
    opinion, the courts would probably find that validating stat-
    utes may constitutionally cut off causes of actions and defenses
    which have not yet been secured in a final judgment. This
    determination would be consistent with the implications of the
    cases upholding curative statutes.
    The courts have stated that validating statutes should
    be liberally construed. Perkins v. State, -
    367 S.W.2d 140
    (Tex.
    1963); City of Mason v. West Texas Utilities Co., 
    237 S.W.2d 273
    (Tex. 1951). They have also recognized that private persons
    may in qood faith invest money in reliance on unauthorized
    actions-of counties. Citv of Mason v. West Texas Utilities Co.,
    supra at 275; see also Hunt County v. Rain County- sunra at 654.
    I   ------   -~-   --
    In view of the public interests served bv validatling statutes,
    the courts may be-reluctant to recognize-new kinds of vested
    rights that would interfere with the implementation of such
    statutes. In our opinion, the courts would find that House
    Bill 11 destroys the causes of action you mention without vio-
    lating article 1, section 16 of the Texas Constitution.
    SUMMARY
    Section 2 of House Bill 11, 65th Legis-
    lature, First Called Session, which
    ratifies past unauthorized actions by
    political subdivisions with respect to
    participation in the National Flood
    Insurance Program, is a valid exercise I
    of legislative authority.  It does not
    violate article 1, section 16 of the
    Texas Constitution and destroys any
    cause of action based on lack of legis-
    lative authority for the actions rati-
    fied.
    of Texas
    p. 4518
    Honorable Joe Hubenak    - Page 4   (H-1102)
    MPPROVED:
    !i&b-J&
    DAVID M. KENDALL, First Asslstant
    c. ROBERT HEATH, Chairm'an
    Opinion Committee
    jst
    p. 4519