Texas Constitution:Article III, Section 52-b and Texas Constitution:Article III, Section 52-a: Difference between pages

Revision as of 11:45, August 16, 2023

As amended November 8, 2005:

Notwithstanding any other provision of this constitution, the Legislature may provide for the creation of programs and the making of loans and grants of public money, other than money otherwise dedicated by this constitution to use for a different purpose, for the public purposes of development and diversification of the economy of the state, the elimination of unemployment or underemployment in the state, the stimulation of agricultural innovation, the fostering of the growth of enterprises based on agriculture, or the development or expansion of transportation or commerce in the state. Any bonds or other obligations of a county, municipality, or other political subdivision of the state that are issued for the purpose of making loans or grants in connection with a program authorized by the Legislature under this section and that are payable from ad valorem taxes must be approved by a vote of the majority of the registered voters of the county, municipality, or political subdivision voting on the issue. A program created or a loan or grant made as provided by this section that is not secured by a pledge of ad valorem taxes or financed by the issuance of any bonds or other obligations payable from ad valorem taxes of the political subdivision does not constitute or create a debt for the purpose of any provision of this constitution. An enabling law enacted by the Legislature in anticipation of the adoption of this amendment is not void because of its anticipatory character.

Editor Comments

This important section, approved by 52% of voters, was added in 1987. It has been amended once. The 2005 amendment specified that programs, grants, and loans not secured or financed by property taxes do not constitute or create debt.

The Texas Attorney General, in Tex. Att'y Gen. Op. KP-261 (2019), opined that: "[Section 52-a] establishes economic development as a public purpose and specifically authorizes the Legislature to 'provide for the . . .' to further that purpose."

—Attorney Steve Smith

Recent Decisions

None.

Historic Decisions

None.

Library Resources

Vernon's Annotated Constitution of the State of Texas (this multi-volume and up-to-date resource is available at all law libraries and many municipal libraries)

The Texas State Constitution: A Reference Guide (this one-volume resource is available at most law libraries and some municipal libraries)

The Constitution of the State of Texas: An Annotated and Comparative Analysis (this two-volume resource is available at most law libraries and some municipal libraries)

Online Resources

Constitution of the State of Texas (1876) (this resource is published and maintained by the University of Texas School of Law)

Amendments to the Texas Constitution Since 1876 (this resource is published and regularly updated by the Legislative Council)

Reports Analyzing Proposed Amendments (this resource is published and regularly updated by the Legislative Reference Library)

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-{{DISPLAYTITLE:Article III, Section 52-b of the Texas Constitution (''<small>"Loan of State's Credit or Grant of Public Money for Toll Road Purposes"</small>'')}}{{Texas Constitution|text=As amended November 6, 2001:
+{{DISPLAYTITLE:Article III, Section 52-a of the Texas Constitution (''<small>"Programs and Loans or Grants of Public Money for Economic Development"</small>'')}}{{Texas Constitution|text=As amended November 8, 2005:
-'''The Legislature shall have no power or authority to in any manner lend the credit of the State or grant any public money to, or assume any indebtedness, present or future, bonded or otherwise, of any individual, person, firm, partnership, association, corporation, public corporation, public agency, or political subdivision of the State, or anyone else, which is now or hereafter authorized to construct, maintain or operate toll roads and turnpikes within this State except that the Legislature may authorize the Texas Department of Transportation to expend, grant, or loan money, from any source available, for the acquisition, construction, maintenance, or operation of turnpikes, toll roads, and toll bridges.'''
+'''Notwithstanding any other provision of this constitution, the Legislature may provide for the creation of programs and the making of loans and grants of public money, other than money otherwise dedicated by this constitution to use for a different purpose, for the public purposes of development and diversification of the economy of the state, the elimination of unemployment or underemployment in the state, the stimulation of agricultural innovation, the fostering of the growth of enterprises based on agriculture, or the development or expansion of transportation or commerce in the state. Any bonds or other obligations of a county, municipality, or other political subdivision of the state that are issued for the purpose of making loans or grants in connection with a program authorized by the Legislature under this section and that are payable from ad valorem taxes must be approved by a vote of the majority of the registered voters of the county, municipality, or political subdivision voting on the issue. A program created or a loan or grant made as provided by this section that is not secured by a pledge of ad valorem taxes or financed by the issuance of any bonds or other obligations payable from ad valorem taxes of the political subdivision does not constitute or create a debt for the purpose of any provision of this constitution. An enabling law enacted by the Legislature in anticipation of the adoption of this amendment is not void because of its anticipatory character.'''
 |editor=
-As added in 1954, this section read: "The Legislature shall have no power or authority to in any manner lend the credit of the State or grant any public money to, or assume any indebtedness, present or future, bonded or otherwise, of any individual, person, firm, partnership, association, corporation, public corporation, public agency, or political subdivision of the State, or anyone else, which is now or hereafter authorized to construct, maintain or operate toll roads and turnpikes within this State."
+This important section, approved by 52% of voters, was added in 1987. It has been amended once. The 2005 amendment specified that programs, grants, and loans not secured or financed by property taxes do not constitute or create debt.
-The section has been amended twice. The 2001 amendment was part of the ballot proposition that added Article III, Section [[Texas Constitution:Article III, Section 49-k|49-k]]. That section, among other things, created the Texas Mobility Fund.
+The Texas Attorney General, in Tex. Att'y Gen. Op. [https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/2019/kp0261.pdf#page=2 KP-261] (2019), opined that: "[Section 52-a] establishes economic development as a public purpose and specifically authorizes the Legislature to 'provide for the . . .' to further that purpose."
 |recent=
@@ Line 15: / Line 15: @@
 |historic=
-* ''Texas Turnpike Authority v. Shepperd'', 279 S.W.2d 302, [https://scholar.google.com/scholar_case?case=8430638084061719526#p305 305] (Tex. 1955) ("As to the second contention, namely, that the Turnpike Projects Act authorizing the issuance of bonds which constitute the creation and assumption of debt on the part of the State, likewise this is squarely settled by the two cases above referred to, and others which may be cited. . . . The Attorney General admits that the Armory Board and Lower Colorado River cases are controlling, but calls our attention to Section 52-b, Art. 3, Constitution of Texas, adopted as an amendment to the Constitution at the last General Election (1954). This section, we think, adds nothing of substance to Section 50 of that Article except to name expressly and include any agency, public or otherwise, authorized to construct, maintain or operate toll roads and turnpikes. It in no way limits the effect of the two decisions mentioned.")
+None.
-|seo_title=Article III, Section 52-b of the Texas Constitution ("Loan of State's Credit or Grant of Public Money for Toll Road Purposes)
+|seo_title=Article III, Section 52-a of the Texas Constitution ("Programs and Loans or Grants of Public Money for Economic Development")
-|seo_keywords=Article 3 Section 52-b, Texas Legislature, ...
+|seo_keywords=Article 3 Section 52-a, economic development, public purpose
-|seo_description=The legislative power of Texas is vested in a Senate and House of Representatives.
+|seo_description=This important section, approved by 52% of voters, was added in 1987. It has been amended once.
 |seo_image=Texas_Constitution_of_1876_Article_3.jpg
 |seo_image_alt=Article III: Legislative Department
 }}
-[[Category:Transportation Law]]
 [[Category:TxCon ArtIII Sec]]