September 9, 1988 

Honorable Hugh Parmer Opinion No. JM-952 

Chairman 

Committee on Intar- Re: Whether certain improvegovernmental Relations ments may constitute "regional 

Texas State Senate economic development facilities" 

P. 0. BOX 12068 within the meaning of article 

Austin, Texas 78711 1118x, V.T.C.S. (RQ-1296) 

Dear Senator Parmer: 

you have asked whether 

drainage projects, street and other infrastructural improvements, and library facilities can be considered 'regional economic 

development facilities' as defined in section 

(6C)(e), article 1118x, V.T.C.S., as added 

by Rouse Bill No. 2008, 70th Legislative 

Session. 

Article 1118x, V.T.C.S., is a very lengthy, very 

detailed statute originally enacted in 1973 to help the 

state's urban areas remedy problems such as traffic congestion and air pollution which resulted in part from a lack of 

mass transit systems in those areas. Citv of Humble v. 

Metrooolitan Transit Authority, 636 S.W.2ds484 (Tex. App. - 

Austin 1982, writ ref'd n.r.e.), anoeal di mlssed sub nom. 

Arch r 

(198:) .v 

. Metrooolitan Transit Authoritv, 464 U.S. 80; 

Generally, it authorizes metropolitan areas, upon 

a vote of the electorate, to establish rapid transit 

authorities to be structured and operated in accordance with 

the act. Section 6C(e) was added to the statute by Acts 

1987, 70th Leg., ch. 804, at 2796,l which also amended other 

1. The legislation has an interesting history. The 

content of House Bill No. 2008 originated under the style of 

Senate Bill No. 1536, introduced in the Senate on May 18, 

1987, by Senator Tejeda. The bill was referred to the 

(Footnote Continued) 

P. 4816 
HOnOrable Hugh Parmer - Page 2 (JM-952) 

-_ 

sections of the act to complement the section 6c(e) 

provisions. 

Section 6C deals with acquisition of station or terminal 

complexes by an authority. Subsection (a) thereof declares 

such acquisitions to be 1°public and governmental functions, 

exercised for a public purpose, and matters of public 

necessity for public use and public benefit." Subsection 

(b) gives an authority power to acquire lands and interest 

in lands "adjacent or accessible to stations and other mass 

transit facilities, developed or to be developed by the 

(Footnote Continued) 

Senate Committee on Intergovernmental Relations, where it 

was taken up in public hearing on May 19. At that public 

hearing, Senator Tejeda explained that Senate Bill No. 1536 

was to serve as a legislative vehicle in case some agreement 

could be worked out between San Antonio's transit authority 

(WIA"), the San Antonio City Council, and the Bexar County 

delegation to the legislature. The bill would allow a 

+year, one-half-cent raise in the sales tax in San Antonio, 

subject to voter approval. The proceeds of that tax -- some 

$150 million -- would be dedicated to economic development 

projects undertaken in conjunction with mass transit 

facilities. Hearings on Senate Bill No. 1536 before the 

Senate Committee on Intergovernmental Relations, 70th 

Legislature (May 19, 1987). 

The committee approved Senate Bill No. 1536 by a vote 

of 6-0, and the bill was passed unamended by the full Senate 

on May 22. The bill was then sent to the Rouse of Representatives, where it was referred to the Committee on Urban 

Affairs. The House Committee on Urban Affairs considered 

Senate Bill No. 1536 in a formal meeting on May 27, 1987. 

There is no record of the discussion that took place at that 

meeting, but the members present did approve several important changes to the bill. m Bill Analysis, Tex. S.B. 

1536, 70th Leg. (1987). The committee approved its substitute for Senate Bill No. 1536 by a vote of 12-0, and 

reported it back to the full house. 

By this time, however, the regular session was drawing 

to a close, and there was a growing concern within the Bexar 

County delegation that Senate Bill No. 1536 was moving too 

slowly to ever reach the Governor's desk. A simple solution 

was found in House Bill No. 2008, which was then sitting in 

the Senate. House Bill No. 2008 was originally intended to 

(Footnote Continued) 

p. 4817 
Honorable Hugh Parmer - Page 3 (JR-952) 

C 

authority" and to lease or transfer them to others subject 

to certain restrictions. Subsection (c) provides that any 

such acquisitions must be part of, or contained within, a 

complex needed for successful operation of the system and 

designated as such by an approved %omprehensive transit 

plan." Subsection (d) states that a station or terminal 

complex ua include adequate provisions for the transfer 

of passengers,n and "BIQY include provisions for commercial, 

residential, recreational, institutional, and industrial 

facilities, except that no land or interest in land that is 

more than 1,500 feet in distance from the center point of 

the complex or that has not been included in a master plan 

of development adopted by the board may be acquired for 

the facilities." V.T.C.S. art. 1118x, 5 6C(d). (Emphasis 

added.) 

In addition, subsection (e) of section 6C, the focus of 

your question, authorizes, in a station or terminal complex 

"of an authority created before January 1, 1980, in which 

the principal city had a population of less than 1,200,000~~ 

according to the most recent census, the inclusion of 

"regional economic development facilities" if approved by 

both the board of the authority and the governing body 

of the principal city. "Regional economic development 

facilities" are defined by the subsection as 

facilities which will lead to the creation of 

new jobs, maintain existing jobs or generally 

improve the conditions under which a local 

(Footnote Continued) 

create an economic development finance agency in Corpus 

Christi. It passed the House on May 6, but had become 

stalled in the Senate -- reportedly due to the ill health of 

Senator Truan. On June 1, on motion of Senator Armbrister, 

the Senate suspended the rules and took up House Bill No. 

2008. Senator Tejeda immediately offered an amendment to 

strike all below the enacting clause and substitute therefor 

the language of Senate Bill No. 1536, as amended by the 

House. The amendment was approved by a viva vote vote, and 

after one further amendment, the bill was passed by a vote 

of 31-o. f&8 Senate Journal of Texas, 70th Leg., Reg. 

Sess., 2643-48 (1987). The bill was sent to the Rouse of 

Representatives that same day. The House refused to concur 

with the Senate amendment, but a conference committee 

resolved the disagreement, and both houses managed to 

approve the conference report before the close of the 

legislative day. 

p. 4818 
Honorable Hugh Parmer - Page 4 (JM-952) 

economy may prosper, and which include, but 

are not limited to, facilities used primarily 

for conventions, entertainment, special 

events, professional and amateur sports, or 

other lawful purposes,2 

The remainder of subsection (e) deals with the power of the 

authority to institute a tax to pay for such facilities, the 

mechanics of doing so, and the limitations upon the use of 

the funds so raised, and with the type of agreements the 

authority might make to implement the realization of 

"regional economic development facilities." 

Although the power to include regional economic 

development facilities within a station or terminal complex 

is bestowed upon the authority by a separate subsection of 

section 6C, such facilities are only authorized if located 

"withinn such a station or complex. Consequently, 

projects, 

drainage 

street and other infrastructural improvements, or 

library facilities located outside the permitted expanse of 

the station or terminal complex, could not be considered 

Vegional economic development facilities" within the 

meaning of the statute, whether or not they would "lead 

to the creation of new jobs, maintain existing jobs or 

generally improve the conditions under which a local economy 

may prosper." 

Inasmuch as subsection (d) limits the expanse of such a 

station or terminal complex acquired for commercial, residential, recreational, institutional or industrial facilities to not more than 500 yards from the center point of the 

complex, the opportunity for drainage projects, street and 

other infrastructural improvements, or library facilities to 

qualify as regional economic development facilities is 

accordingly limited, but we cannot say that as a matter of 

law they could not be considered as such if they were 

located within the complex. 

its own particular facts, 

Each situation will depend on 

The criteria are that regional 

economic development facilities: 

(1) must be located at a station or 

terminal complex: 

2. &g Tex. Con&. art. III, 5 52-a added November 3, 

1987. Because your question involves only matters of 

statutory construction, we do not consider constitutional 

provisions affecting the legislation. 

p. 4819 
Honorable Hugh Parmer - Page 5 (JM-952) 

(2) must be aimed at providing jobs or 

improving economic conditions generally: 

(3) must be dedicated to lawful purposes: 

and 

(4) must meet statutory requirements for 

funding and approval. 

To qualify as "regional economic development facilities" pursuant to section 6C(e) of 

article 1118x, V.T.C.S., such facilities must 

be located at a station or terminal complex, 

must be aimed at providing jobs or improving 

economic conditions generally, must be 

dedicated to lawful purposes, and must meet 

statutory requirements for funding and 

approval. Whether a particular facility 

qualifies will depend upon the facts peculiar 

to it. 

JIM MATTOX 

Attorney General of Texas 

MARYEELLER 

First Assistant Attorney General 

MU MccREARY 

Executive Assistant Attorney General 

JUDGE ZOUIE STEAELEY 

Special Assistant Attorney General 

RICK GILPIN 

Chairman, Opinion Committee 

Prepared by Bruce Youngblood 

Assistant Attorney General 

p. 4820