Article XI, Section 3 of the Texas Constitution

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As amended November 7, 1989:

No county, city, or other municipal corporation shall hereafter become a subscriber to the capital of any private corporation or association, or make any appropriation or donation to the same, or in anywise loan its credit; but this shall not be construed to in any way affect any obligation heretofore undertaken pursuant to law or to prevent a county, city, or other municipal corporation from investing its funds as authorized by law.

Editor Comments

The Texas Attorney General, in Tex. Att'y Gen. Op. GA-583 (2007), opined that: "The purpose of [Article III, Section 52(a) and this section] is not to bar all transactions between counties and private entities. An expenditure that directly accomplishes a legitimate county purpose may still be valid even when it incidentally benefits a private interest."

Steve Smith

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