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 askedwhether
drainage projects, street and other infrastructural improvements, and library facilities can be considered 'regional economic development facilities' asdefined in section (6C)(e), article 1118x,V.T.C.S., as added byRouse 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Article 1118x, V.T.C.S., is a very lengthy, very detailed statute originally enacted in 1973 to help the state's urban areas remedy problems such as traffic congestion and airpollution which resulted inpart froma lack of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 dimlssed sub nom. Arch r (198:).v. Metrooolitan Transit Authoritv, 464 U.S. 80;

Generally, it authorizes metropolitan areas, upon avote of the electorate, to establish rapid transit authorities tobe structured and operated inaccordance with the act. Section 6C(e)was added to the statute by Acts 1987, 70th Leg., ch. 804, at 2796,lwhich also amended other

1. The legislation has an interesting history. The content ofHouse BillNo. 2008 originated under the style of Senate BillNo. 1536, introduced inthe Senate onMay 18, 1987,by Senator Tejeda. The bill was referred to the (Footnote Continued)

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

Section 6Cdeals with acquisition of station or terminal complexes by an authority. Subsection (a)thereof declares such acquisitions to **be** 1°publicandgovernmental functions, exercised for **a** public purpose, and matters of public necessity forpublic 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 onMay 19. At that public hearing, Senator Tejeda explained that Senate Bill No. 1536
was to serve as a legislative vehicle incase some agreement could beworked outbetween SanAntonio's transit authority (WIA"), the SanAntonio City Council, and the Bexar County delegation to the legislature. Thebill would allow a +year, one-half-cent raise inthe sales tax in SanAntonio, subject tovoter approval. The proceeds of that tax -- some $150million --would be dedicated to economic development projects undertaken in conjunction with mass transit facilities. Hearings on Senate BillNo. 1536before the Senate Committee on Intergovernmental Relations, 70th Legislature (May19, 1987).

The committee approved Senate Bill No. 1536by a vote of 6-0, and thebillwas passed unamended by the full Senate
onMay 22. Thebill 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 ina formalmeeting onMay 27, 1987. There isno record of the discussion that took place at that meeting, but themembers present did approve several important changes to the bill. m BillAnalysis, Tex. S.B. 1536, 70th Leg. (1987). The committee approved its substitute for Senate BillNo. 1536by avote of 12-0, and reported itback to the fullhouse.

By this time, however, the regular session was drawing to aclose, and there was agrowing concern within the Bexar County delegation that Senate Bill No. 1536was moving too slowly to ever reach the Governor's desk. A simple solution
was found inHouse BillNo. 2008,which was then sitting in the Senate. House BillNo. 2008was originally intended to (Footnote Continued)

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C
authority" and to lease or transfer them toothers subject

to certain restrictions. Subsection (c)provides that any such acquisitions must bepart of, or contained within, a complex needed for successful operation of the system and designated as suchby an approved %omprehensive transit plan." Subsection (d)states that a station or terminal complex ua include adequate provisions forthe transfer ofpassengers,n and "BIQYinclude provisions for commercial, residential, recreational, institutional, and industrial facilities, except that no land or interest in land that is
more than 1,500 feet indistance from the center point of the complex or that has not been included inamaster plan ofdevelopment adopted by theboard 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, ina station or terminal complex "ofan authority created before January 1, 1980, in which theprincipal cityhad apopulation of less than 1,200,000~~ according to the most recent census, the inclusion of "regional economic development facilities" ifapproved 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,

### maintainexisting jobs orgenerally improve the conditions under which a local



### (FootnoteContinued) create an economic development finance agency in Corpus Christi. It passed the House 

### onMay 6,but had become stalled inthe Senate --reportedly due to the illhealth of Senator Truan. OnJune 1,onmotion of Senator Armbrister, the Senate suspended the rules and took up House Bill No. 2008. Senator Tejeda immediately offered an amendment to strike allbelow the enacting clause and substitute therefor the language of Senate Bill No. 1536, as amended by the House. The amendment was approved by aviva vote vote, and after one further amendment, the billwas 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. 4818Honorable Hugh Parmer -Page 4 (JM-952)

economy may prosper, andwhich 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 atax topay for such facilities, the mechanics ofdoing 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 isbestowed upon the authority **by** a separate subsection **of** section 6C, such facilities **are** only authorized if located "withinn such a station orcomplex. Consequently, projects, drainage

street and other infrastructural improvements, or library facilities located outside the permitted expanse of the station or terminal complex, could notbe 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 forcommercial, residential, recreational, institutional or industrial facilities to notmore than 500yards fromthe 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, butwe cannot say that as amatter of law they could notbe considered as such if they were located within the complex. itsown 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, wedo not consider constitutional provisions affecting the legislation.

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(2) must be aimed at providing jobs or improving economic conditions generally:
(3) must bededicated to lawful purposes: and
(4) mustmeet 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, andmust meet statutory requirements for funding and approval. Whether a particular facility qualifies will depend upon the facts peculiar to it.

JIM MATTOX Attorney General ofTexas

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

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