Article III, Section 50 of the Texas Constitution ("Loan or Pledge of Credit of the State")

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Adopted February 15, 1876:

The Legislature shall have no power to give or to lend, or to authorize the giving or lending, [sic] of the credit of the State in aid of, or to any person, association or corporation, whether municipal or other, or to pledge the credit of the State in any manner whatsoever, for the payment of the liabilities, present or prospective, of any individual, association of individuals, municipal or other corporation whatsoever.

Editor Comments

This section first appeared in the Texas Constitution of 1876. Neither the Republic of Texas constitution (1836) nor any of the state's first four constitutions (1845, 1861, 1866, 1869) contained a provision with similar substantive language.

Note that the Texas Attorney General, in Tex. Att'y Gen. Op. DM-382 (1996), opined that: "We disapprove of Attorney General Opinions No. 2996, MW-461, JM-533, JM-749, and JM-1229, and any other prior opinions of this office insofar as they state or imply that a mere credit sale of goods or services by the State or one of its political subdivisions violates the credit clauses of the constitution."

Attorney Steve Smith

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