Texas Constitution:Article III, Section 52-a

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. DM-185 (1992), opined that: "Section 380.001 of the Local Government Code, which the legislature enacted pursuant to article III, section 52-a of the Texas Constitution, is constitutional."

And recently he, in Tex. Att'y Gen. Op. KP-261 (2019), opined that: " . . . 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)