Nay 20, 1976
The'Honorable Truett Lather Opinion No. R- 929
Executive Director
Texan Hirtorical Commiraion Re: Whether a city may
P. 0. Box 12276, Capitol Station contract with a private
Auntin, Texa8 79711 organization to roEtore
and maintain an hiatorfc
home.
Dear Mr. Latimert
You have a8ked if article 3, 8ection 52 of the TeXa8
Conrtitution would preclude a contract between a city and a
private organixation whereby the private organiration would
receive federal community development fund8 from the city
and in return, the private organization would purcha8e,
rertore and maintain an hirtoric home. See Hou8ing and
Community Development Act of 1974, 42 U.m. 6 5305; Texae
Community Develoment Act of 1975, V.T.C.S., art. 12691-4;
V.T.C.S., art. 1269j-4.1. We under8tand that the home-
involvid ir the,Scott Home in Fort Worth, which ha8 been
designated a8 a National Landmark by the National Regirter
of Ni8tOriCal Place8 through the United State8 Department of
Interior.
Your que8tion doe8 not include a 8pecific contract
between the city and me private organization and thu8,
we do not pa88 on the validity Of any 8QeCifiC agreement
in light of .artiole 3, section 52. Neither do we determine
the applicability of any other constitutional or charter
QrOVi8iOn8.
The Honorable Truett Latimer - page 2 @I-626)
Your 8pecific question 18 whether the city would be
precluded by article 3, 8ection 52 of the Texa8 Conrtitution
fram contracting with a private organization to re8tore,
maintain and operate the home. We do not believe the fact
that the fund8 are part of a federal grant to the city 18
relevant for purpo8e8 of the con8titutional provirion.
Article 3, 8ection 52 provide8 in part:
(a).Except a8 othenviw provided by thi8
8ection, the Legirlature 8hall have no
power to authorize any county, city, town
or other political corporation or 8ub-
divi8ion of the State to lend it8 credit
or to grant public money or thing of value
in aid of, or to any individual, a8rociation
or corporation whatsoever, or to become a
rtockholder in euch carporation, arrociation
or company.
A 8imilar gue8tion wa8 rai8ed in Attorney Geneial
Opinion N-127 (19731, which rtatedt
The Current con8truction of thi8 QrOVi8iOn
18 that it doe8 not prohibit the Legi8lature
from authorizing a county, city or oth8r
political corporation or 8ubdivi8io~ to
8Qend it8 fund8 with private COIQOratiOn8
for the achievement of public purQore8. See,
for example, State v. Cit of Austin, 331
S.W.2d 737 (TD9m) +i
an Ellock? Calvert,
400 S.W.2d 367 (Tex. 1972).
It 18 not unulrual for political 8ubdivi8ione
to contract with private corporation8 to
perform 8ervice8 or function8 which the govern-
mental unit might have provided itself. For
in8tance, in Attorney General Opinion C-246
(1964), it wa8 held, after e very thorough
di8CU88iOn Of the law, that a Cmi88ioner8
court could contract with a private entity for
the care of indigent aged in a private facility.
In Attorney General Opinion C-334 (1964). it
wa8 held that a ho8pital dietrict could pay
private ho8Qitale for the care of indigent
patient8.
p. 3497
The Honorable Truett Latimer - page 3 (H-828)
In Attorney General Opinion M-043 (1971),
it was held that Potter County could contract
with a private non-profit institution for the
care and 8UpeIViSiOn of.juvenile delinquents.
Other examples might be cited but we deem the
foregoing amply sufficient to eupport our
conclusion that a county may contract with a
private non-profit corporation for the purpoee
of creating and maintaining a recreational
center designed for aged persons under the
8ame terms and conditions that the county
itself could create and maintain such a center.
It it is our opinion article 3, section 52 of the Texas
Constitution does not preclude a city from contracting with a
private organization for restoration, operation and maintenance
of an historic home for the benefit of the public. See
Attorney General Opinions H-740 (1975), H-520 (19751-H-472
(1974); H-445 (1974); H-416 (1975); and H-403 (19751.
SUMMARY
Article 3, section 52 of the Texas Constitu-
tion does not preclude a city from contracting
with a private organization for restoration,
operation and maintenance of an historic
home for the benefit of the public.
Attorney General of Texas
Opinion Committee
jwb
p.3498