The Attorney General of Texas
March 18, 1983
JIM MATTOX
AttorneyGeneral
Mr. Charles B. Wood Opinion No. JM-15
Supreme Court Building
Executive Director
P. 0. Box 12546
Austin. TX. 78711. 2546 Texas Industrial Commission lb: Use of bond proceeds
5121475-2501 P. 0. Box 12728. Capitol Station raised under article 5190.6.
Telex 9101674.1367 Austin, Texas 78711 V.T.C.S., for public display
Telecopier 5121475-0266 of works of art
1607 Main St.. suite 1400
Dear Mr. Wood:
Dallas, TX. 75201-4709
2141742.8944 You have requested an opinion as to whether a requirement of the
city of Austin that the Austin Industrial Development Corporation
allocate a predetermined percentage of the bond proceeds of each
4624 Alberta Ave.. Suite 160
El Paso, TX. 79905.2793 project financed under its authority to "a public display of works of
915/533-3464 art" is consistent with the legislative requirement that such bond
r proceeds be used in promoting and developing industrial and
manufacturing enterprises which promote and encourage employment and
1220 Dallas Ave., Suite 202
HOUS~O”. TX. 77002.6966
the public welfare.
7 131650-0666
The legislation authorizing such financing is the Development
Corporation Act of 1979, article 5190.6, V.T.C.S. Section 21 of the
606 Broadway, Suite 312 act authorizes a municipality to establish an industrial development
Lubbock. TX. 79401.3479
6061747-5236
corporation "to issue bonds. . . to finance the cost of projects to
promote and develop industrial and manufacturing enterprises to
promote and encourage employment and the public welfare." Section
4309 N. Tenth. Suite S 2(10) defines "project" as the land, buildings, equipment, facilities
McAllen. TX. 76501.1665 and improvements found by the board of directors of the industrial
5121662-4547
development corporation to be required or suitable for the promotion
of manufacturing development and expansion and for industrial
200 Main Plaza. Suite 400 development and expansion of certain facilities, as well as facilities
San Antonio. TX. 76205.2797 related to these manufacturing and industrial facilities, and in
5121225-4191 furtherance of the public purposes of the act. Section 3 states in
part:
An Equal Opportunity/
Affirmative Action Employer It is hereby found, determined, and declared:
(1) that the present and prospective right to
gainful employment and general welfare of the
people of this state requires as a public purpose
the promotion and development of new and expanded
industrial and manufacturing enterprises;
p. 59
Mr. Charles B. Wood - Page 2 m-15)
(2) that the existence, development, and
expansion of industry are essential to the
economic growth of the state and to the full
employment. welfare, and prosperity of its
citizens;
(3) that the means and measures authorized by
this Act and the assistance provided in this Act,
especially with respect to financing, are in the
public interest and serve a public purpose of the
state in promoting the welfare of the citizens of
the state economically by the securing and
retaining of private industrial and manufacturing
enterprises and the resulting maintenance of a
higher level of employment, economic activity, and
stability;
. . . .
This Act shall be liberally construed in
conformity with the intention of the legislature
herein expressed. (Emphasis added).
The intention of the legislature is to be found in the language of the
statute. Duval Corporation v. Sadler, 407 S.W.2d 493, 497 (Tex.
1966); McGuire v. City of Dallas, 170 S.W.2d 722, 725 (Tex. 1943).
Section 3 of article 5190.6 sets out the legislature's intention
in enacting the statute. The fundings and declarations emphasize the
need to promote the economic welfare of the general public. The
intent which permeates the language of the statute is the promotion of
economic, not aesthetic, welfare. Compare Attorney General Opinion
M-531 (1969) (appropriation to Fine Arts Commission to educate general
public about fine arts). As already noted, the term "project" for
example, is defined to include facilities related to specific
manufacturing and industrial facilities. Sec. 2(10). Section 21
authorizes the issuance of bonds "to finance the cost of projects to
promote and develop industrial and manufacturing enterprises to
promote and encourage employment and the public welfare." Bond
proceeds should be spent to further the legislative purpose expressed
in article 5190.6, V.T.C.S.
The act describes the results sought as "a higher level of
employment, economic activity and stability." Although the public
display of works of art certainly promotes the general public welfare,
in the narrow confines of the act before us, the public welfare being
served is clearly that of a purely economic nature.
P. 60
Mr. Charles B. Wood - Page 3 (JM-15)
A municipal requirement more appropriate to the purposes of the
act would be one dealing with the labor intensive nature of projects
funded under the act.
SUMMARY
A requirement by a municipality permitting
creation of an industrial development corporation
that a predetermined percentage of bond proceeds
of each project be allocated to "a display of
works of art" is not consistent with the
requirements of the Development Corporation Act of
1979.
Very truly your
4
J 4.A
JIM MATTOX
Attorney General of Texas
TOM GREEN
h
First Assistant Attorney General
DAVID R. RICHARDS
Executive Assistant Attorney General
Prepared by Michael Cafiso
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Susan L. Garrison, Chairman
Jon Bible
Michael Cafiso
Rick Gilpin
Jim Moellinger
p. 61