JIMMATTOX Attorney General

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# TheAttorney General ofTexas

October 26, 1984

Mr. RandyM.Lee Executive Director Texas 1986Sesquicz~~tennial commission P. 0. Box 1986 Austin. Texas 78X7 Opinion No. JM-220

Re: Whether a county or city maycontribute funds to alocal sesquicentennial committee and related questions

DearMr. Lee:
You ask several related questions regarding the status and funding of local r!csquicentennial committees. First, you ask wherber the local commitl:cfes are “extensions” of the Texas 1986 Sesquicentennial Commiss;jon. You also raise a number of specific issues relating directly t3partJcular city andcounty contributions to local committees.
With regard 10 your first question. we conclude that local sesquicentennial wmmittees are “extensions” of the local governing entities which create rhem; they are not functional extensions of the Texas 1986 Sesqu.ll!entennial Commission. Local governing entities create their low:. sesquicentennial committees, appoint commircee members, and apprc%e the committees’ master plans prior to submission of the plans to t’l’? state commission. Despite somestate commission influence, local commiteees act primarily as agents for the local governing bodies which create them. See Attorney General (Ipinions
- JM-71 (1983); m-533 (1982).
The state cormlission has specific duties and powers with regard to sesquicentennizll. activities on the local level, but it does not create the local committees or dictate directly the exteot of their authority. Article 6145-11. section 7. indicates. in part, that the commission shall

(1) encourage individuals, private organizations, zJ.dlocal governmental bodies to organize activities celebrating the state’s sesquicentennial; (2) ~II individuals, private organizations, and low1 governmental bodies that
-- organizeMr. RandyH.Lee- Psge 2 (.Rl-220)

sesquicentennial _c~ctivicies to coordinate the activities;

. . . . (4) develop Iltandsrds for sesquicentennial sctivl ties orsancred bv individuals. orivate - . organizations. -and local- governmental bodies and sanction activitJes that comply with the standards.

. . . (Eaphasis added).

At the local level, the commission’s functiou is to coordinate local activities with ocher local activities and with state activities. The collrmission’s power over local governing entities is indirect, stemming from the benefit derived by local governing entities from the increased publicity andappeal that result from the commission’s promotion of specific local activities. Thus, the authorjty to develop standards is merely a prerequisite to the commission’s officisl ssnctlon of local activities. rather than a statutory grant of direct control over the activities of local governing entities.
A local governing entity or its local committee is subject to commission control only when, and only to the extent, that the commission expends state funds, including donations accepted onbehalf of the state, to encourage, coordinate, andsanction local activities
as authorized by section 7of article 6145-11. SeeAttorney General Opinions MW-533,m-489 (l’H2). See also M-114871972). Except in this limited context, local committees are controlled by the local governing entities which crtr;ite them.
Thestatus of local colmaittees as “extensions” or *gents of local governing entities is also rarlevant to your inquiry about restrictions
on the source of contribur::lons that maybe accepted by local committees. Because your Letter refers to 8 city or county

“contribution” to its ownwmmittee, at the onset it is necessary to emphasize that vhen alcwal governing entity makes expenditures through its ownagent -- its local committee - the action constitutes
an expenditure by the local governing entity. It is not a “contribution” in the sense of a“iDnation” to the local committee.
Your other question 3 relate to the validity of certain contributions to, or expenditures by, CitifS and counties. Specifically, you inquire .%bouttheir expenditures (1) for their own local sesquicentennial comndttees. (2) for their conunittees’ projects directly, and (3) for j0:inc committees formed with other local governing entities. We conclude that. subject to the folloving limitations, local governmental entities mayexpend fundsjr. all three ways for sesquicentennial activities. You do not inquire about the r IMr. Randyg. Lee - Page 3 [JM-220)

extent to vhich cities end counties may delegate this expenditure power to local aesquicentunnial committees; therefore, Eve do not address the issue. See Attorney General Opinion JM-71 (1983); see generally Canales v.xghl.in, 214 S.U.Zd 451 (Tex. 1948); Pidel~ .Land aTrust Co. of Texas V.-&y of WestUniversity Place, 496 S.W.Zd 116 (Tex. **Civ.** App. - Roustc~~l4th Dist.] 1973, writ ref ’d n.r.e.).

Limits on expenditurcc, by local sesquicentennial committees depend uponthe local govenmental entities’ authority to makecertain expenditures. Both grants of authority to make expenditures and limits onits exercise are rr!levant. Counties andcities possess only
-- the powers expressly or by necessary implication authorized by the Texas Constitution or statutes, or by local charters. Lower Colorado River Authority v. City of SanMarcos. 523 S.W.2d 641 (Tex. 1975) Tome rule cities); Canalec?v. Laughlin, 214 S.W.Zd 451 (Tex. 1948) (countI&) ; Cit of West L.&e Hills v.

--+---mnpp WestwoodLegal Defense Fund, 598 S.W.Zd 681 Tex.

. - Waco 1980, novrit) (general law cities). This rule applies to the power tomakecertain expenditures. See Attorney General Opin:.ons JM-191 (1984); JM-65 (1983); H-1170 (1978).
Noprovision expressly authorizes local governmental entities to engage In local sesquiccwtennial activities. Nevertheless, by providing that the conrmisslon shall encourage and sanction local sesquicentennial activities: by local governmental bodi.es, article 6145-11, section 7, authorizes somelocal sesquicentennial activities by necessary implication. More=, numerous more general statutes expressly authorize counties andcities to engage in local activities of this sort. See, e.g., V.T.C.S. art. 6145.1 (county historical commission); V.T.C.S. art. 2372d-8 (certain counties authorized to makepublic improvements in.:t!nded to attract tourists); art. 1264j-4.1 (cities authorized to xwl:e public improvements that would be frequented by tourists); V.‘P.C.S. art. 6081t (G tourism-related projects); V.T.C.S. art. lOlSc-1 (establishment, by counties and cities, singly orjointly, 0:: recreational programs andfacilities). Accordingly, local gowrnmental bodies are impliedly authorized to makereasonable expenditwres for local sesquicentennial activities. Ag.ain. weemphasize that wedo not address the extent to which cities andcounties maydelegate twir sesquicentennial activity authority to local committees. In manyinstances, the specific statutes cited may prevent delegation of certain powers. See. e.g., Attorney General Opinion .I?+71. Therefore, the answers to your questions relating to particular contributions b:. city and county governments depend only upon limits on the exercise ,>fthis authority.
TheTexas Constitution ,:xpressly prohibits theuse by apolitical subdivision of its public funds or credit for Private purposes. Tex. Const. art. III, 552; State v. City of Austin, 331 S.W.2d 737 (Tex.
---Nr. RandyEC.Lee- Page4 (JM-220)

1970); see also Tex. Const. art. XI, 93; art. XVI, 16. Nofixed rule delineates exactly what cotrntltutes a public purpose. Nevertheless, the statutes cited above, particularly article 6145-11 itself, invite the conclusion that both thl! tourism andhistoric preservation aspects of sesquicentennial activl,::tes serve a public purpose. See, also, V.T.C.S. art. 6144f.
Nevertheless, expenditures for local sesquicentennial activities cannot benefit private individuals and entities in ways so out of proportion to the overall p~hlic benefit that they amountto avirtual donation. Attorney General Opinion JM-65 (1983); see Attorney General Opinion Jh-103 (1983). An i.ncidental benefit toeprIvate person or entity is not prohibited. ,G:torney General Opinion MW-423(1982); see Barrington7 Cokinos, 338 S.W.2d 133 (Tex. 1960). Whenexpenditux
are madewhich involve prirate parties, however. particularly if the expenditures are made dircq:tlg for private local sesquicentennial

“projects,” article III,x?:ion 52 of the Texas Constitution requires that conditions be attached to the expenditure to assure the use of public money for a public purpose. SeeAttorney General Opinions JM-103 (1983); MW-423(1982) ;NW-60(1979).
Article III, section I;; usually relates to government donations to “private” in the sense oEnon-governmental entities as individuals; hovever
, the provision also bars a politlcal subdivisiou from rratuitouslv nrantinn its funds to soother nolitical subdivision. Harris Coudty”Flood Contro:t District v. Mann,‘140 S.W.Zd 1098 (Tex. 1940); SanAntonio Independ,$t School District v. Boardof Trustees of SanAntonio Electric andGasSystem, 204 S.W.2d 22 (Tex. Civ. App. - El Paso 1947. writ ref ’d n.r.e.1: Attornev General Oninions J?+65 (1983); A-1170 (1978). Onthe other hand; the provision does not prohibit a local governiug body from contracting with another political subdivision, or wen with a private entity, to accomplish certain of its legitimate pll:rposes. Attorney General Opinions Jh-103. JM-65, J?4-44 (1983); MW-(NC(1979); E-1170, H-1123 (1978); E-413 (1974).

Joint county-city locii1 actions of the kind required for local sesquiceatennial activities are authorized through other, moregeneral statutes. See V.T.C.S. art. 4413(32c) (Interlocal Cooperation Act: section 3Aindicates that celebration-expo*ition type activities fall within scope of act); seu also, V.T.C.S. art. 6081e. $1 (parks,
--- playgrounds, historic museums and sites); art. 6081t. 152, 2a (recreational facilities); art. 2372d-9 (auditoriums); art. 2372d-5 (museums); art. 1269j-4.5 (civic center authorities); art. 1015c-1 (recreational programs and facilities); art. 969b (acquisition of property). Thespecific requirements of these statutes would control any = local sesquicentennial activities. All that article III. section 52 requires in sut,k cases is that each participating local governing body receive a benefit from the joint agreement which.

Hr. RandyM.Lee - Page 5 (JM-220)

provides a quid pro quo for its expenditures. Attorney General Opinions R-1170 (1978); H-413 (1974); see also Attorney General OpinionJM-191 (1984).
SUMFiARY

Local sesquictntennial committees are not nextensions” of the Texas 1986 Sesquicentennial Commission; they are the agents of, and are controlled by, the local governmental entities which create them, Subject to the limits imposed by article III, section 32 of the Texas Constitution, a lccal governing body mayexpend public funds for lccal sesquicentennial activities which serve avalid public purpose.

MATTOX Attorney General of Texas
TOM GREEN First Assistant Attorney Gererel
DAVIDR. RICRARDS Executive Assistant Attorney General

RICKGILPIN Chairman, Opinion Committee Prepared byRick Gilpin Asslstant Attorney General
APPROVED

: OPINIONCOKMITTEE
Rick Gilpin, Chairman Colin Carl SusanGarrison TonyCuillory JimHoellinger NancySutton