Article III, Section 52-a of the Texas Constitution ("Programs and Loans or Grants of Public Money for Economic Development")

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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

Note that the Texas Attorney General, in Tex. Att'y Gen. Op. KP-261 (2019), opined that: "The Texas Supreme Court provides a three-part test to determine whether an expenditure of public funds satisfies article III, subsection 52(a) . . . . The first prong of this test requires a public purpose. Another article III provision—section 52-a—establishes economic development as a public purpose and specifically authorizes the Legislature to 'provide for the creation of programs and the making of loans and grants of public money' to further that purpose."

Attorney Steve Smith

Recent Decisions

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Historic Decisions

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Online Resources