THE ATTORSEY GESEKAL 

OF TRS,~S 

September 20, 1989 

Honorable Dale Hanna 

Johnson County Attorney 

First Floor, Courthouse 

Cleburne, Texas 76031 

Opinion No. JM-1097 

Re: Whether Johnson County has 

the option of creating a county 

industrial commission instead 

of a board of development 

(RQ-1692) 

Dear Mr. Hanna: 

You ask three questions regarding the application of 

sections 381.001 and 381.002 of the Local Government Code to 

Johnson County. Your questions are as follows: 

1. Does a County with a population census 

figure of 67,000 in 1980 have the option of 

forming a County Industrial Commission under 

Section 381.001 or is it required to form a 

Board of Development under Section 381.002? 

2. If Section 381.001 is available, can 

the County expend funds from the general fund 

to promote industrial development without an 

election pursuant to Section 381.002? 

3.' If Section 381.002 is the exclusive 

choice, what options are available to a 

County, with a population census figure of 

67,000 in 1980, as to appropriating funds for 

industrial growth and development? 

Your questions are based on the law prior to its 

amendment by the 71st Legislature. The adoption of Senate 

Bill 24, which amends section 381.002, Acts 1989, 71st Leg., 

ch. 1060, § 2, at 4306, has 

questions and the answers.1 

changed both the sense of your 

Your questions numbered one and 

three indicate the population of Johnson County, and prior 

1. The effective date of Senate Bill 24 was August 28, 

1989. 
Honorable Dale Hanna - Page 2 (JM-1097) 

to the amendment the population was a significant consideration. However, the amendment deleted population 

brackets that had limited the application of section 381.002 

to counties with a population of more than 50,000. We now 

conclude that any county may act under either of the 

sections. 

First, we will examine the provisions of the two 

statutes about which you inquire. Section 381.001 allows 

the county judge of any county to appoint a County 

Industrial Commission to "investigate and undertake ways of 

promoting the prosperous development of business, industry, 

and commerce in the county." Local Gov't Code 5 381.001(f). 

That section allows the county to "pay the necessary 

expenses of the commission." Id. 13 381.001(e). The commission is required to cooperate with and use the services 

of the Texas Department of Commerce. Id. 5 381.001(g), as 

amended by Acts 1987, 70th Leg., ch. 374, g 8(e), at 1871. 

We will discuss section 381.002 as amended by Senate 

Bill 24, and our subsection citations will refer to the 

section as amended. Section 381.002 creates a board of 

development in all counties. Local Gov't Code § 381.002(b). 

The county commissioners court appoints the members of the 

board, which is required to "devote its time and effort to 

advertising and promoting the growth and development of the 

county." Id. 5 381.002(b), (c). That section also allows 

counties to appropriate funds and to levy a tax for the 

purposes of the board but makes such appropriation or tax 

subject to a popular vote and sets a ceiling on the rate. 

Id. 5 381.002(a). Subsection (g) recognizes that "a county 

may operate under another law authorizing the appropriation 

of money or levy of a tax for advertising and promotion 

purposes" but extends the appropriation and tax limitations 

established by subsection (a) to counties operating under 

another law. Id. § 381.002(g). 

This office examined these two provisions prior to 

their inclusion in the Local Government Code. In Attorney 

General Opinion JM-516 (1986), we said: 

A county has authority to promote the development of businesses and industries in the 

county through a county industrial commission 

established under article 1581g-2, V.T.C.S. 

[now Local Gov't Code § 381.001], or through 

a board of development established under 

article 2352d, V.T.C.S. [now Local Gov't Code 

§ 381.002]. 
Honorable Dale Hanna - Page 3 (JM-1097) 

Attorney General Opinion JM-516 (1986). 

In that earlier opinion we did not discuss the population bracket that had limited the application of section 

381.002 because it was not relevant. NOW, with the 1989 

amendment to section 381.002, the legislature has clearly 

indicated its intent that any county may operate under that 

section. Section 381.001, which allows the county judge 

of any county to appoint a county industrial commission, 

similarly applies to all counties. It is clear that any 

county may act under either section. 

Your second question is whether a county acting under 

section 381.001 may expend funds from the general fund to 

promote development without an election. Section 381.001 

does not require an election prior to the expenditure of 

funds, and it allows the county to pay the "necessary 

expenses" of the commission. Local Gov't Code 5 381.001(e). 

We caution, however, as noted above, subsection (g) of 

section 381.002 extends the limit on appropriations found in 

subsection (a) ("an amount not to exceed five cents on the 

$100 assessed valuation") to counties operating under 

another law. 

We need not answer your third question because we have 

concluded that Johnson County may operate under either of 

the two sections. 

SUMMARY 

In order to create a county level agency 

and to appropriate county funds to promote 

development in Johnson County, the county may 

operate under either section 381.001 or 

section 381.002 of the Local Government Code. 

Any appropriation under either section may 

not exceed the ceiling established by section 

381.002(a). If operating under section 

381.002, any appropriation must be approved 

in advance by a majority vote of the county 

electorate. 

/V-f; yJf& 

JIM MATTOX 

Attorney General of Texas 

MARY KELLER 

First Assistant Attorney General 
Honorable Dale Hanna - Page 4 (JM-1097) 

LOU MCCREARY 

Executive Assistant Attorney General 

JUDGE ZOLLIE STEAKLEY 

Special Assistant Attorney General 

RICK GILPIN 

Chairman, Opinion Committee 

Prepared by Karen C. Gladney 

Assistant Attorney General