COMMISSIONERS' COURT AGENDA REQUEST
PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS REQUEST AND DOCUMENTS TO BE
REVIEWED BY THE COURT.
MADE BY: Fred He OFFICE:
MEETING DATE: Au st 13 2001
SUBJECT: (PLEASE BE SPECIFIC)
County Judge
TIME PREFERRED:
Consider and discuss creation of committee or working group to develop a Kerr County
Economic Development Program for adoption by Commissioners' Court.
EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON)
NAME OF PERSON ADDRESSING THE COURT:
ESTIMATED LENGTH OF PRESENTATION:
IF PERSONNEL MATTER -NAME OF EMPLOYEE:
Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter
SS I and 552, Government Code, is as follows:
Meeting scheduled for Mondays:
THIS REQUEST RECEIVED BY:
THIS REQUEST RECEIVED ON:

All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been
prepazed for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be
appreciated and contribute towazds you request being addressed at the eazliest opportunity. See Agenda Request Rules
Adopted by Commissioners' Court.
5:00 P.M. previous Tuesday.
County Judge
DATE: 3 AUGUST 2001
TO: FRED HENNEKE, KERR COUNTY JUDGE
FROM: TRAVIS LUCAS, ASSISTANT KERR COUNTY ATTORNEY
RE: DOES THE COUNTY HAVE THE AUTHORITY TO
CONTRACT WITH KEDF IF THE COUNTY CREATES A
LAWFULLY AUTHORIZED ECONOMIC DEVELOPMENT
PROGRAM?
Answer:
The county is legally authorized to contract with KEDF if the
county creates an "economic development program° authorized under the
Texas Local Government Code.
Reason:
The key to doing this is set forth in Texas Local Government Code
Section 381.004 (see statute enclosed). Essentially, this statute provides
authority for a county to contract with "another entity" (which is defined
in the statute - TX.LOC.GOV. 381.004(a)(1)) as long as the county has
created an "economic development program° pursuant to the Texas Local
Government Code.
Interestingly, TX.LOC.GOV. 381.004(b) suggests that the "economic
development program° could be a generic one. In other words, the
program could be something other than an Industrial Commission or
Board of Development (programs the local government code specifically
set forth); it could be a program that is dreamed up by the
commissioners court.
Texas Attorney General Opinion No. 98-007 is critical to
understanding the law in this area (see A.G. Opinion enclosed).
Essentially, it states that the only way counties can contract with other
entities regarding economic development is if the county has initiated the
economic development program.
PLANNING AND DEVELOPMENT
(d) This section dues ncrt authorize a commissioners
court to exercise any ordinance-making authority not
otherwise specificallp~ granted by state law.
Att, ]987, 50th Leg.. ch. 149, h 1, eff. Sept. 1. 19Ri. tlmend-
ed by Acts 1591. 72nd Leg., ch. 14Q § ], etT. Aug. 2ri. 1991:
Act, 1547. 55th Leg., ch. NSft, S 3, eft. June 15, ]995-
~4E [!-S.C.d. C 3301 e1 seq.
""1p LL~LA. 4 Lint et seq.
§ 3R1.011~1. Community and Economic Develop-
ment Yrngrams in Certain Counties
la) ]n this section:
(U "Another entity" includes the federal govern-
ment, the State of Texas, a municipality, school or
other special distict, finance corpm•atioq institution
of higher nducation, charitable or nonprofit organi-
zation, foundation, board, council, commission, or
any other person.
(21 °Minority" includes blacks, Hispanics, Asian
Americans, American Indians, and Alaska natives.
(3) °fviinoritp business" means a business con-
cern, more than 50 percent of which is owned and
controlled in management and drily operations by
members of one or rnm~e minoti&es.
(4) "Women-owned business" means a business
concern, more than 50 percent of which is owned
and cont-olled in management and daily operations
h ~ our m' more tvumen.
(b) To stimulate business and commercral activity In
a county, the commissioners court of the county may
develop and administe a ro ram:
(1) fur state m~ local economic development:
(2) fur small m~ disadvantaged business develop-
ment;
(3) to stimulate, encourage, and develop business
location and commercial activity in the county; or
(4) to improve Che extent to which women and
minority businesses are awarded county contacts.
(c) he commissioners court rnay:
(]) contract tiith another entity fur the adminis-
tration of Lhe program;
(2) authorize the program to be administered on
the basis of counts commissioner precincts;
(:3) use county employees or funds fur the pro-
gram; and
(4) accept contributions, gifts, or other resow-sec
to develo ~ and administer the program.
(d) A rog'ram established under this section ~m~a~
be deli ed to rnasonably increase participat.ir>n- 6y
minority ant tromenawned busme~ses in public con-
4§ 3RZ.U:31 to 882.038
Expired
tract awm-ds by the counq~ by establishing a contract
percentage goal fur those businesses.
(e) The legislator tnay appropriate unclaimed mon-
ey the comptroller receives under Chapter St, Fropnr-
tv Codn, for a counh~ to use in carrydng out a program
established tinder this section. To receice money for
that pw-pose for au}~ fiscal year, the county must
request the mono' for that fiscal year. The amount a
emmR' may receice under this subsection fw• a fiscal
year may not exceed an amount equal to the value of
the capital credits the comptroller receives 6-om an
electric cooperative corporation on behalf of the corpo-
ration's members in the county eequesting the money
less xn amount sufficient to pay anticipated expenses
and claims. The comptoller shall transfer money iu
response to a request after deducting the amount the
comptroller determines to be sufficient to pay antici-
pated expenses and claims.
Added by Acts 15F9. 71~t Leg., ct:. lOnO, § 3. e[1'. Aug. 2$
1989. Amended be Ac[s 1997, 7:Sth Leg., ch. 1087. 3 R, eff.
Sept. ].1997.
CHAYTF.R 382. COUNTY RESEARCH AND
DEVELOPMENT AUTHORITIES
I EXY[RED 1
SUBCHAPTER A. GENERAI. PROVISIONS
~§ 382.001 to 382.0113. Expired
C hnpter aR?. relating to rounp' re=earth and decelnpmem airthori-
ties, tsi iced under tlu terms of § ;`~ Jli~ ~chieh pt 'idta P.
"This chapter espu ' 'n Septernh ~ 1 1)5a, unl teauthurized by
the It~(klature heCm~e hs expiration dete_ L( [hlr chapter is oat
reuuthnrizcd by the legislanme, each aulhnritc rrealtid tinder this
chapter shall he abolished on Septkmher 1. 1'1!r,. by the cnuutc or
cnuntics that eatahlishrJ the authmi[c. Ha~raccr, it an autbm'ih' has
b~nda ~,ut=omdinp a- nl' Sepmmhw~ L RYAS. the am h~nitc shall
ran[imic ~o operate uuM1l all bonds mrtnandiug .:s of Ihat date have
been paid :md dischergeJ:'
SUBCHAPTER B. CREATION OF RESEARCH
AND DEVELOPMENT AUTHORITY
~4 382.011 to 382.(115. Expired
('hapter 3N'L, relating to county research and detelupment authori-
ties. espn'ed under the terms of 4 3H'L0T?, u'hldt prncided.
"'this chapter eapires ou Ceptember 1, 1911.1, wiles reauthorized by
the Icgixl:mn'e hc0 n'e its expiration date. If thin chap) er i= not
anthmived by the IegiJa[un•, each authm9h' treat nd under this
chapter shall Le abnfisbed on Scptemher ]. IA!Li, hg the euunh' or
counties that esGhlished the authurih. Hmvecer, i(an authurit7 has
bands nutsuu¢Iing as ~,1' irp¢•mher 1, IIIAF. the authn:'itr shall
euntinue in ~~parate until all h~~ndd nuntanding as of that date have
been paid and due hargnl...
SUBCHM'ER C. POWERS OF AUTHORITY
4S 3R'L.031 to 38'?.038. Expired
(haitu BA'_-:'elaY:tit •nunh:t.e~airh end le-,-0upnv=nt. authori~
ties. expir I undo tht tai is ul p s2 n ", schicl: provided-
S89
Morales Letter Opinion No. 98-007
~~~=per F
~ •:~^
e .^"• '~
u M
~. ~-.
•~'Ex `'~
Office of the Attorney General
State of Texas
February 13, 1998
The Honorable Joe F. Grubbs 'Letter Opinion No. 98-007
Ellis County and District Attorney
Ellis County Courthouse
Waxahachie, Texas 75165-3759
Dear Mr. Grubbs:
Re: Whether Local Government
Code section 381.004 authorizes a
commissioners court to provide
funds to a small business
development center (RQ-960)
You ask whether Local Government Code section 381.004 authorizes a
commissioners court to provide funds to a small business development center.
We conclude that section 381.004 does no authorize a mmissioners court to
appropriate funds to a proeram that wasrnort evelooe the county_and is not
administered either by the county or by another entity un er contract with the
county.
Chapter 381 of the Local Government Code sets forth various mechanisms by
which a commissioners court may promote economic development in the county.
You inform us that the commissioners court in your county has not appointed a
county industrial commi si n pursuant to section 381.001 or created a board of
de~vel~opme~nt under section 381.002. You do not indicate that the small business
eves -Iopment center is a community and economic develo ment ro'ect
authorized under federal aw or purposes o section 381.003. Therefore, we do
not address those provisions.
Your inquiry focuses on section 381.004, which provides in pertinent part as
follows:
(b) To stimulate business and commercial activity in a county, the commissioners
court of the county may develop and administer a~rogram:
(1) for state or local economic development;
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Morales Letter Opinion No. 98-007 Page 2 of 4
(2) for small or disadvantaged business development;
(3) to stimulate, encourage, and develop business location and commercial
activity in the county; or
(4) to improve the extent to which women and minority businesses aze awarded
county contracts.
(c) The commissioners court may:
(1) contract with another entity for the administration of the program;
(2) authorize the program to be administered on the basis of county
commissioner precincts;
(3) use county employees or funds for the program; and
(4) accept contributions, gifts, or other resources to develop and administer the
program.
Local Gov't Code § 381.004 (emphasis added). For purposes of section
381.004, "another entity" includes "the federal government, the State of Texas, a
municipality, school or other special district, finance corporation, institution of
higher education, charitable or nonprofit organization, foundation, board,
council, commission, or any other person." Id. § 381.004(a)(1).
Information included with your request states that "Small Business Development
Centers aze located throughout the United States, operated under a cooperative
agreement among Universities, Community Colleges and the Small Business
Administration. The Navarro Center is a unit of the North Texas Network,
governed by the fiduciary agent, Dallas County Community College District... .
The Navarro Center Personnel are employees of Navarro College...."
Subsectio (b) f section 381.004 authorizes a commissioners court to "develop
and admrmster a pro am" to stimulate business and commercial activity in the
county. Subsectio (c) uthorizes a county to contract with another entity to
administer the prog and to use county funds for the program. Based on the
language of these rovisions~'we believe he u ose of section 381,004 is to
authorize count initiated coun sed ro rams. The -anguage in subsection
(c)(1) authorizing a county to contract with another entity to administer a
program is cleazly limited to a program``~~uthorized by subsection (b), that is a
program that the county has developed~We do not believe that a county's /+ .
authority to contract for the administration of a program permits a county to, l~/~M~
subsidize a program develo ed and administered b another emit In sum, we
conc u e t at section 381.004 authorizes a county to firnd a program dev^ elo~d
by the county and administered either by the county or by another entity under
contract with the county does not authorize a county to provide funds to an~
other program.
http://www.oag.state.tx.us/opinopen/opinions/1o48morales/1o98-007.htm 5/9/2001
Morales Letter Opinion No. 98-007
From the information you have provided, it appears that the small bus_ i` new,
development center at issue is not a program developed by the county and
~o.~, : ~ administered either by the county or another entity under contract with the
C • t~.p'SN99es~S county. For this reason, we do not believe that section 381.004 authorizes the
~.ox commissioners court to appropriate funds to the center. We do not address
~ A ~ whether the expenditure you describe is authorized under any other law.
.w~~ a
„a,-fy381•~li SUMMARY
j¢I•oo2~~~'~ r o •
Local Government Code section 381.004 does not authorize a commissioners
court to appropriate funds to a small business development program that was
not developed by the county and is not administered either by the county or by
another entity under contract with the county.
Yours very truly,
Mary R. Grouter
Assistant Attorney General
Opinion Committee
Footnotes
1. Because we conclude that section 381.004 is inapplicable to the situation you
describe, we need not address your questions about its constitutionality. This
office has not yet addressed whether section 381.004 was enacted to implement
Texas Constitution article III, section 52-a. See Letter Opinion No. 96-035
(1996) at 2 n.2; see also Attorney General Opinion DM-185 (1992) (concluding
that Local Govemment Code section 380.001, a similar statute applicable to
cities, implements article III, section 52-a). We note, however, that this office
has stated that article III, section 52-a does not alter certain constitutional
limitations applicable to use of public funds. See Attorney General Opinion JM-
1255 (1990) at 8-9 ("[T]here is no language in either section 52-a or in the
relevant commentary to suggest that the amendment was intended to change the
requirements that public resources and powers be used for 'the direct
accomplishment of a public purpose' and that transactions using such resources
and powers contain sufficient controls 'to insure that the public purpose be
carried out.' ... It merely adds to the purposes for which the legislature may
authorize the loan or grant of public funds.").
Texas OAG home oase ~ Opinions & Open Government
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Morales Letter Opinion No. 98-007
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