1-1                                   AN ACT
 1-2     relating to the authority of a commissioners court of a county to
 1-3     develop and administer an economic development program for making
 1-4     loans or grants of public money.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 381.004, Local Government Code, is amended
 1-7     by adding Subsections (f) and (g) to read as follows:
 1-8           (f)  The commissioners court may develop and administer a
 1-9     program authorized by Subsection (b) for making loans and grants of
1-10     public money and providing personnel and services of the county.
1-11           (g)  The commissioners court may develop and administer a
1-12     program authorized by Subsection (b) for entering into a tax
1-13     abatement agreement with an owner or lessee of a property interest
1-14     subject to ad valorem taxation. The execution, duration, and other
1-15     terms of the agreement are governed, to the extent practicable, by
1-16     the provisions of Sections 312.204, 312.205, and 312.211, Tax Code,
1-17     as if the commissioners court were a governing body of a
1-18     municipality.
1-19           SECTION 2.  An act or proceeding of the commissioners court
1-20     of a county that relates to a program described by Section
1-21     381.004(f) or (g), Local Government Code, as added by this Act, and
1-22     that occurs before the effective date of this Act is validated as
1-23     of the date the act or proceeding occurred.
1-24           SECTION 3.  This Act takes effect immediately if it receives
 2-1     a vote of two-thirds of all the members elected to each house, as
 2-2     provided by Section 39, Article III, Texas Constitution.  If this
 2-3     Act does not receive the vote necessary for immediate effect, this
 2-4     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2870 was passed by the House on April
         20, 2001, by the following vote:  Yeas 142, Nays 0, 2 present, not
         voting; and that the House concurred in Senate amendments to H.B.
         No. 2870 on May 25, 2001, by the following vote:  Yeas 140, Nays 0,
         2 present, not voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2870 was passed by the Senate, with
         amendments, on May 17, 2001, by the following vote:  Yeas 30, Nays
         0, 1 present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor