PRICE DANlEL

ATTORNEY

GENERAL Auwrrlv 11.TrCXAe

July 6, 1950

Hon. J. C. McEvoy County Attorney Waller County Hempstead,Texas OpinionNo. V-1082

Re: The authority of the Commissioners'

Court to spend county funds for a private fair

Dear Sir:

Your request for an opinion is as follows:

“In the year 1946, citizens of this Waller County associatedthemselvestogether and formed a corporationand thereafter a charterwas duly issued to such corporationunder the laws of the State of Texas in the name of Waller County Fair Association;its capital stock is $259000. Since its Incorporation, the Waller County Fair Associationhas purchased some I.5
acres of land and has erected various ag-*a,fl~

_ rlcultural,horticultural and lfvestock"CX-

~',',*. ,,: hibit bufldlngsat a cost of about $35"0@; ' It has conductedannual fairs slnce"l$&;"' Although it is set up as a corpora$ionfor

blllty for the its entirety. Court does fairs contfnued,and to the FaS.r

Associationin nual exhibits of horticultural and aip'i<ural products, livestockand mineral pPqducts, and such other products as aye of"Hon. J. C. McEvoy, page 2 (V-1082)

Interest to the community. The Commissloners' Court is consideringentering Into a contract, on behalf of Wailer County, with the Fair Associationwhereby the Fair Associationwould provide the buildings, grounds and agricultural, horticultural and livestockexhibits, for which Waller County would pay,to the Fair Association the sum of $2,000.00or $3,000.00; under such contract it is contemplated that the 'firstgate' charge heretoforemade would be eliminated,and the people of Waller County would be entitled to be admitted, without charge, to all of the exhibitsand all of the fair, save and except the rodeo, for which a separate charge would be made,
as has been done heretofore.

"The Commissioners' Court is desirous of being advised whether they may lawfully enter Into such a contract,and, If so, whether advertisement for bids under Art. 2368a would be required."

You further state In your brief that under the proposed contract the Waller County Fair Assoclatlon "would provide for the 1950 exhibitsof hortlcultural and agricultural products, livestockand mineral products,and other products as are of Interest to the community,

without an admission charge to the public."

Article 2372d, V.C.S., provides In part.:

'Section1. All counties in the State acting by and through their respectiveCommissioners'Courts may provide for annual exhibits of horticultural and agricultural products, livestockand mineral products, and such other products as are of Interest to the community. In connectiontherewith, such countiesmay also establishand malntaln museums, Includingthe erectionof the necessary buildingsand other Improvements, In their own counties or in any other county or city In the United States,where fairs
or expositionsare being held.. .

Hon. J. C. McEvoy, page 3 (V-1082)

"Sec. 2. The Commlesfoners' Courts of the respective countiesor the Commlssloners'

Courts of several countiesmay cooperate with each other and participate with local Interests In providingfor the erection of such buildingsand other lmprovements as may be necessary to accomplishthe purpose mentioned In-Section1, of this Act and for the assembling,erecting,and malntainlng of such horticultural and agricultural, livestockand mineral exhibits,and the expenses Incident thereto...."

Article 2372d authorizescounties to construct buildingsand other permanent Improvementsfor exhibits of horticultural,

agricultural,

livestock,and mineral products and to provide for such exhibits. Adams v. McGill, 146 S.W.2d 332 (Tex. Clv. App. 1941, error ref.). Itour opinion that countiesare authorizedunder Article 2372d In providing such exhibits to contract with various individuals and associationsfor the assembling, erection,and maintenanceof such annual exhibits as will best promote horticulture, agriculture, livestockraising, and the developmentof natural resources so long as such contract Is not In violation of the Texas Constitution.

In this connection,It should be noted that It
was held In Attorney General'sOpinionNo. O-2629, dated August 22, 1940, that Sections 51 and 52 of Article III of the Constitutionof Texas prohibit the Commlssloners~ Court from making a donation or contribution to any ln- -dlvidual or associationsuch as a "CountyFair Association." sunder the facts submitted in your request, however, Waller County does not propose to make a donation to the WaLler County Fair Association. On the contrary, the Commissioners1 Court intends to contract for the use .of the buildings and ground8 owned by the Fair Association In holding the 1950 annual county fair and to employ the associationto assemble,maintain,and operate such exhibits as will best carry out the purposes of Article 2372d.

The Court in Bland v. City of Taylor, 37 S.W. 2d 291 (Tex. Clv. Ap 67 S.W.2d 1033 (19347: -l931) affirmed In 123 Tex. 39, I n s&talning the validity of a tax levied for the purpose of "The establishment and maintenanceof a Board of City Development, Chamber ofHon. J. C. McEvoy, page 4 (V-1082)

Commerce, or other similar organization under whatsoever name, devoted to the growth, advertizement, development, Improvement

and Increase of the taxable values of said city," held:

by of of "The provisionsof the Constitution which appellantsassert are violated are: Article 3, % 52; article 8, % 3; and article 11, % 3. By article 3, % 52, the Legislature la prohibitedfrom granting to any city, etc., power to lend Its credit or grant money or thing of value to any lndlvidual,association,or corporationwhatever. Article l.1, PI 3, prohibitsany county, city, or municipalityfrom making any appropriation

or donation or in any wise loaning Its credit to any private corporation or association.

"Theseprovisionsclearly contemplate and prohibit,we think, benefits at public expense attempted In behalf of individuals, corporations,

or associations,

as such, acting independently

and conductingsome enterprise of their own, such as are usually conducted for profit and commercialin their nature. In the Instant case no aid was attempted to the chamber of commerce,acting
as an Independent

association. The city undertook to, and did, create said board of city development

with defined duties, not to aid any association, but as a part of its municipal functions. Obviously, we think, there was no violationof article 3, % 52,
nor of article 11, % 3, of the Constitution.

"If In fact said,

city had authority under the Constitution and laws of the state to do the things authorizedby its charter, it Is wholly Immaterial whether such board of city developmentsupplanteda private associationtheretofore maintainedby private subscription." (Emphasisadded)

We thereforeagree wjth the conclusion reached you In your able brief that the Commiselonero' Court Wailer County has the authorityunder the provisions Article 2372d to contractwith the Waller County FairHon. J. C. McEvoy, page 5 (v-1082;

Associationfor the use of its buildingsand exhibits ip holding the 1950 Waller County~Fair and to employ the assoclatlonto assemble, erect, and maintain exhibits for.the promotfonand developmentof horticulture, agriculture,livestock~aisfng, and mineral products In the State and County ir I!!* the discretionof the Court It determines that the purposes of Article 23726 can best be carHed.out by such a contract.

Section 2 of Aptlcle 2368a, V.C,S., provides, In part, that:

"No county, acting through its CommissionersCourt, and no cf,ty !n thl,s

State shall hereaftermake any contract callfng for or requfrfng the expendetureor payment of Two Thousand ($2,000.00) Dollars or more out of any fund OP funds of any city or county or subdivisionof any county creating or imposingan oblfgatfo:n or lfabilfty of any nature or characterupon such county
or any subdfvislonof such county, or upon such city, without first submittfngsuch proposed contract to competftfve bids...."

Article 2372d specifically provides that the provisionsof Artid? 2368a are not repea3~ed by Its provisions. It Is our opfnfon that 811~ce the contemplated contract calls for an expznditme of $2,000,00or more, the contractmay only be awarded ore competitive

bids.

SUMMARY ---.- Under the provfsfonsof Article 2372d the CommzLssfoneraD Cou& of Wailer County has the authority to contractwith a fair assocPatfonfor the use of the a,ssocfatfon's buildings and employ the aatiocfatfon to assemble, erect, and mair&ain exhibits for the promotI.on

and developmentof horticulture, agriculture,livestockraising, and mineral products in the State and County. Adams v. McGill, 146 S.W.2d 332 (Tex. Civ. App. 1941
error ref.); Bland v. '

--__ S.W.?d 291 (Tex. I- -&irizd City of Ta lor CXv. App. in 123 Tex. 39, 67 S.W.2d X0:33(1934).Since the contract calls fog an expenditureofHon. J. C. McEvoy, page 6 (V-1082)

$2,000.00 0P more, it must be submltted to competitive bids. Art. 2368a, V.C.S.

APPROVED: Yours very truly,

PRICE DANIEL Attorney General

J. C. Davis, Jr. County Affairs Division

Joe R Greenhill First Assistant John Reeves Assistant

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