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A BILL TO BE ENTITLED
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AN ACT
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relating to certain requirements applicable to certain municipal |
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economic development programs and grants. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 380.001, Local Government Code, is |
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amended by adding Subsections (d) and (e) to read as follows: |
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(d) The governing body of a municipality may not establish, |
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amend, or renew a program under Subsection (a) unless the governing |
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body has first held a public hearing on the matter at which members |
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of the public are given the opportunity to be heard. |
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(e) A municipality may not make a loan or grant of public |
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money or provide municipal personnel or services to a person |
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through a program established under this section unless the |
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municipality enters into a written agreement with the person. The |
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agreement must detail the terms and conditions of the loan, grant, |
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or provision of municipal personnel or services. An agreement with |
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a for-profit entity must require the creation or retention of jobs |
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and the making of a capital investment, and must include a schedule |
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of the jobs to be created or retained and the capital investment to |
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be made. An agreement must include a requirement that the person |
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repay to the municipality the cost of any benefit received by the |
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person from the municipality under the agreement if the person |
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fails to meet each performance requirement required by the |
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agreement. |
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SECTION 2. Section 380.002, Local Government Code, is |
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amended by adding Subsection (d) to read as follows: |
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(d) A home-rule municipality may not grant public money to |
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an organization or corporation under this section or through a |
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program established under this section unless the municipality |
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complies with the requirements of Sections 380.001(d) and (e). |
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SECTION 3. The changes in law made by this Act apply only to |
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an agreement entered into by a municipality under Section 380.001 |
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or 380.002, Local Government Code, as amended by this Act, on or |
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after the effective date of this Act. |
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SECTION 4. This Act takes effect September 1, 2023. |