# The Attorney General ofTexas

March 18, 1983 JIMMATTOX Attorney

General

Supreme Court Building P. 0. Box 12546 Austin. TX. 78711. 2546 5121475-2501 Telex 9101674.1367 Telecopier 5121475-0266

1607 Main St.. suite 1400 Dallas, TX. 75201-4709 2141742.8944

4624 Alberta Ave.. Suite 160 El Paso, TX. 79905.2793 915/533-3464
r 1220 Dallas Ave., Suite 202 HOUS~O”. TX. 77002.6966 7131650-0666

606 Broadway, Suite 312 Lubbock. TX. 79401.3479 6061747-5236

4309 N. Tenth. Suite S McAllen. TX. 76501.1665 5121662-4547

200 Main Plaza. Suite 400 San Antonio. TX. 76205.2797 5121225-4191

An Equal Opportunity/ Affirmative Action Employer Mr. Charles B. Wood ExecutiveDirector Texas IndustrialCommission P. 0. Box 12728.Capitol Station Austin, Texas 78711 Opinion No. JM-15 lb: Use of bond proceeds raised under article 5190.6. V.T.C.S., forpublic display ofworks of art Dear Mr. Wood:
You have requestedan opinion as to whether a requirementof the city of Austin that the Austin Industrial Development Corporation allocate a predetermined percentage of the bond proceeds of each project financed under its authority to "a public display ofworks of art" is consistent with the legislative requirement that such bond proceeds be used in promoting and developing industrial and manufacturing enterpriseswhich promote and encourage employment and thepublicwelfare. The legislation authorizing such financing is the Development Corporation Act of 1979, article 5190.6, V.T.C.S. Section 21 of the act authorizes a municipality to establish an industrial development corporation "to issue bonds.
. . to finance the cost of projects to promote and develop industrial and manufacturing enterprises to promote and encourage employment and the public welfare." Section 2(10) defines "project" as the land,buildings, equipment, facilities and improvements found by the board of directors of the industrial development corporation to be required or suitable for the promotion of manufacturing development and expansion and for industrial development and expansionof certain facilities,aswell as facilities related to these manufacturing and industrial facilities, and in furtherance of the public purposes of the act. Section 3 states in part:
It ishereby found,determined,and declared:

(1) that the present and prospective right to gainful employment and general welfare of the people of this state requires as a public purpose the promotion and development of new and expanded industrialandmanufacturingenterprises;

p. 59Mr. Charles B.Wood - Page 2 m-15)

(2) that the existence, development, and expansion of industry are essential to the economic growth of the state and to the full employment. welfare, and prosperity of its citizens; (3) that the means and measures authorizedby this Act and the assistance provided in thisAct, especiallywith respect to financing, are in the public interest and serve a public purpose of the state in promoting thewelfare of the citizens of the state economically by the securing and retaining of private industrial and manufacturing enterprises and the resulting maintenance of a higher level of employment,economicactivity,and stability;

. . . . This Act shall be liberally construed in conformitywith the intention of the legislature herein expressed. (Emphasisadded). The intention of the legislature is tobe found in the languageof the statute. Duval Corporation v. Sadler, 407 S.W.2d 493, 497 (Tex. 1966);McGuire v. City of Dallas, 170 S.W.2d 722, 725 (Tex. 1943). Section 3 of article 5190.6 sets out the legislature'sintention in enacting the statute. The fundings and declarationsemphasize the need to promote the economic welfare of the general public. The intentwhich permeates the languageof the statute is thepromotion of economic, not aesthetic, welfare. Compare Attorney General Opinion M-531 (1969) (appropriationtoFine Arts Commission to educategeneral public about fine arts). As already noted, the term "project" for example, is defined to include facilities related to specific manufacturing and industrial facilities. Sec. 2(10). Section 21 authorizes the issuance of bonds "to finance the cost of projects to promote and develop industrial and manufacturing enterprises to promote and encourage employment and the public welfare." Bond proceeds shouldbe spent to further the legislativepurpose expressed in article 5190.6,V.T.C.S. The act describes the results sought as "a higher level of employment, economic activity and stability." Although the public display ofworks of art certainlypromotes the generalpublicwelfare, in the narrow confinesof the act before us, the publicwelfare being served is clearly thatof a purely economicnature.

P. 60Mr. Charles B.Wood - Page 3 (JM-15)

h A municipal requirement more appropriate to the purposes of the

act would be one dealing with the labor intensivenature of projects fundedunder the act. SUMMARY

A requirement by a municipality permitting creation of an industrial development corporation that a predetermined percentage of bond proceeds of each project be allocated to "a display of works of art" is not consistent with the requirementsof theDevelopment CorporationAct of 1979. Very trulyyour

J 4.A

4 JIM MATTOX Attorney Generalof Texas TOM GREEN FirstAssistantAttorney General
DAVID R. RICHARDS ExecutiveAssistantAttorney General Preparedby Michael Cafiso AssistantAttorney General
APPROVED: OPINION COMMITTEE SusanL. Garrison,Chairman Jon Bible Michael Cafiso Rick Gilpin Jim Moellinger

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