| TO: | Honorable Robert Talton, Chair, House Committee on Urban Affairs |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | HB39 by Smith, Wayne (Relating to the use of the development project fund by a municipal development district.), As Introduced |
The bill would amend Section 377.072(c), Local Government Code, to specify that a project funded by a municipal development district using the development project fund must be beneficial to the district. The bill would take effect immediately if it receives the required two-thirds vote in each house, otherwise, it would take effect on the 91st day after the last day of the legislative session.
Under current statute, a district may only use money in the development project fund for projects that are in the district. The proposed change in statute would allow a district to also fund a project outside of the district as long as the project would be beneficial to the district. It is assumed a district would conduct a study to determine if a project would be beneficial to the district. The cost of a study would vary, but is not anticipated to have a significant fiscal impact. Further, areas outside of the district would likely benefit from projects funded in that area by the district.
| Source Agencies: |
| LBB Staff: | JK, DLBa
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