The Attorney General of Texas 

March 18, 1983 

JIM MATTOX 

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 

7 131650-0666 

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 

Executive Director 

Texas Industrial Commission 

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., for public display 

of works of art 

Dear Mr. Wood: 

You have requested an opinion as to whether a requirement of 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 of works of 

art" is consistent with the legislative requirement that such bond 

proceeds be used in promoting and developing industrial and 

manufacturing enterprises which promote and encourage employment and 

the public welfare. 

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 expansion of certain facilities, as well 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 is hereby 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 

industrial and manufacturing enterprises; 

p. 59 
Mr. 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 authorized by 

this Act and the assistance provided in this Act, 

especially with respect to financing, are in the 

public interest and serve a public purpose of the 

state in promoting the welfare 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, economic activity, and 

stability; 

. . . . 

This Act shall be liberally construed in 

conformity with the intention of the legislature 

herein expressed. (Emphasis added). 

The intention of the legislature is to be found in the language of 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's intention 

in enacting the statute. The fundings and declarations emphasize the 

need to promote the economic welfare of the general public. The 

intent which permeates the language of the statute is the promotion of 

economic, not aesthetic, welfare. Compare Attorney General Opinion 

M-531 (1969) (appropriation to Fine Arts Commission to educate general 

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 should be spent to further the legislative purpose 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 of works of art certainly promotes the general public welfare, 

in the narrow confines of the act before us, the public welfare being 

served is clearly that of a purely economic nature. 

P. 60 
Mr. 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 intensive nature of projects 

funded under 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 

requirements of the Development Corporation Act of 

1979. 

Very truly your 

J 4.A 4 

JIM MATTOX 

Attorney General of Texas 

TOM GREEN 

First Assistant Attorney General 

DAVID R. RICHARDS 

Executive Assistant Attorney General 

Prepared by Michael Cafiso 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Susan L. Garrison, Chairman 

Jon Bible 

Michael Cafiso 

Rick Gilpin 

Jim Moellinger 

p. 61