By: Rogers, Lambert (Senate Sponsor - Buckingham) H.B. No. 1554
         (In the Senate - Received from the House May 3, 2021;
  May 10, 2021, read first time and referred to Committee on Local
  Government; May 20, 2021, reported favorably by the following
  vote:  Yeas 6, Nays 0; May 20, 2021, sent to printer.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to use of project funds of municipal development
  districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 377.072(c), Local Government Code, is
  amended to read as follows:
         (c)  Except as provided by Subsections (d) and (e), the
  district may use money in the development project fund only to:
               (1)  pay the costs of planning, acquiring,
  establishing, developing, constructing, or renovating one or more
  development projects located:
                     (A)  in the district; or
                     (B)  outside the district, if:
                           (i)  the project is located in the
  extraterritorial jurisdiction of the municipality that created the
  district;
                           (ii)  the board determines that the
  development project will provide an economic benefit to the
  district; and
                           (iii)  the following entities, as
  applicable, by resolution approve the development project:
                                 (a)  the municipality that created the
  district; and
                                 (b)  each municipality in whose
  corporate limits or extraterritorial jurisdiction the project is
  located;
               (2)  pay the principal of, interest on, and other costs
  relating to bonds or other obligations issued by the district or to
  refund bonds or other obligations; or
               (3)  pay the costs of operating or maintaining one or
  more development projects during the planning, acquisition,
  establishment, development, construction, or renovation or while
  bonds or other obligations for the planning, acquisition,
  establishment, development, construction, or renovation are
  outstanding.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2021.
 
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