Texas Attorney General Opinion: GA-0599 Page: 3 of 5
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Mr. Steve Pefia - Page 3
As to general laws that address the BRA's leasing authority, we look to chapter 49 of
the Water Code. See id. 8502.001(b) ("The authority is created under and is essential to
accomplish the purposes of Section 59, Article XVI, Texas Constitution."); TEX. WATER CODE ANN.
49.001(a)(1) (Vernon Supp. 2007) (defining "district" to include an authority created under article
XVI, section 59 of the Texas Constitution), 49.002(a) (Vernon 2000) (establishing applicability of
chapter 49).6 Section 49.225 of the Water Code provides that a "district may lease any of its
property, real or personal, to any person" and the "lease may contain the terms and provisions
that the board determines to be advantageous to the district." TEX. WATER CODE ANN. 49.225
(Vernon 2000) (emphasis added); see also id. 49.002(a) (providing that chapter 49 applies to
special law districts, like the BRA, to the extent that its provisions do not directly conflict with the
district's enabling legislation); TEXAS NATURAL RESOURCE CONSERVATION COMMISSION, A
HANDBOOK FOR BOARD MEMBERS OF WATER DISTRICTS IN TEXAS, at 5 (4th ed. June 1996),
available at http://www.tceq.state.tx.us/files/rg-238.pdf_4006010.pdf (last visited Jan. 22, 2008)
("Subject to federal tax law restrictions, a district may lease any of its property to any person under
whatever terms the board considers advantageous.").
In sum, the general leasing authority contained in the BRA's enabling legislation and chapter
49 of the Water Code does not preclude the discount or freeze about which you ask. And we find
no other statutory provision that specifically prohibits these lease terms.
Next, we consider the potential constitutional limitation you raise. See Request Letter, supra
note 1. In your second question, you inquire about the propriety of a lease discount and freeze under
article III, section 52 of the Texas Constitution, which provides in relevant part that:
Except as otherwise provided by this section, the Legislature shall
have no power to authorize any county, city, town or other political
corporation or subdivision of the State to lend its credit or to grant
public money or thing of value in aid of, or to any individual,
association or corporation whatsoever, . . . .
TEX. CONST. art. III, 52(a); see also TEX. SPEC. DIST. CODE ANN. 8502.001(a) (Vernon 2007)
("The authority is a river authority, a governmental agency, a municipality, and a body politic and
corporate.").
Article III, section 52(a) does not bar all transactions between a political subdivision and
private persons. An expenditure that directly accomplishes a legitimate purpose of a political
subdivision may still be valid even when it incidentally benefits a private interest. See Walker v. City
of Georgetown, 86 S.W.3d 249, 260 (Tex. App.-Austin 2002, pet. denied) (considering challenge
to municipal real property lease under article III, section 52). Rather, the purpose of this provision
is to prevent the gratuitous grant of public funds for a private purpose. See Edgewood Indep. Sch.
6There are other general law provisions that may authorize the BRA to lease its property but none appear to be
applicable here. See, e.g., TEX. PARKS & WILDLIFE CODE ANN. 25.005 (Vernon 2002) (relating to lease of water-
related park areas).(GA-0599)
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Texas. Attorney-General's Office. Texas Attorney General Opinion: GA-0599, text, January 25, 2008; (https://texashistory.unt.edu/ark:/67531/metapth275495/m1/3/?q=%222008~%22: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.