By: Martinez Fischer H.B. No. 4940
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to limitations on the use of public money under certain
  economic development agreements or programs adopted by certain
  political subdivisions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 380.002(c), Local Government Code, is
  amended to read as follows:
         (c)  The funds granted by the municipality under this section
  shall be derived from any source lawfully available to the
  municipality under its charter or other law, other than from the
  proceeds of:
               (1)  ad valorem taxes; or
               (2)  bonds or other obligations of the municipality
  payable from ad valorem taxes.
         SECTION 2.  Chapter 380, Local Government Code, is amended
  by adding Sections 380.005 and 380.006 to read as follows:
         Sec. 380.005.  LIMITATIONS ON LOANS AND GRANTS OF PUBLIC
  MONEY.  (a)  A municipality may not make a loan or grant of public
  money under this chapter from the proceeds of ad valorem taxes or
  bonds or other obligations of the municipality payable from ad
  valorem taxes. The municipality may use any other source lawfully
  available to the municipality under its charter or other law,
  including proceeds from sales taxes and fees, to make the loan or
  grant.
         (b)  A municipality may not make a loan or grant under this
  chapter for a period exceeding 10 years.
         Sec. 380.006.  PUBLIC MEETING AND NOTICE REQUIREMENTS. (a)
  Before a municipality may make a loan or grant under this chapter,
  the governing body of the municipality must hold a public hearing
  regarding the proposed loan or grant at which members of the public
  are given the opportunity to be heard.
         (b)  A municipality that maintains an Internet website shall
  post the current version of the proposed loan or grant under this
  chapter on the website.
         (c)  In addition to any other requirement of law, the public
  notice of a meeting at which the governing body of a municipality
  will consider the adoption of a proposed loan or grant under this
  chapter must contain:
               (1)  the name of the recipient of the loan or grant;
               (2)  a general description of the public purpose for
  which the loan or grant is provided; and
               (3)  the amount of and period of time for the loan or
  grant.
         (d)  Except as otherwise provided by this section, a
  municipality must give the notice of a meeting required by this
  section in the manner provided by Chapter 551, Government Code.
         (e)  A municipality must give notice of a meeting required by
  this section not less than 15 business days but not more than 30
  business days before the meeting.
         (f)  If a municipality postpones a meeting required by this
  section to a later date, the municipality must hold the postponed
  meeting not more than 10 business days after the date for which the
  meeting was originally scheduled. If the postponement would result
  in the meeting being held more than 30 business days after the date
  the municipality gave notice of the meeting, the municipality must
  give a new notice of the meeting as provided by Subsection (e).
         SECTION 3.  Chapter 381, Local Government Code, is amended
  by adding Sections 381.006 and 381.007 to read as follows:
         Sec. 381.006.  LIMITATIONS ON USE OF COUNTY MONEY. (a) A
  county, county industrial commission, or development board, as
  applicable, may not use county money for a purpose authorized by
  this chapter from the proceeds of ad valorem taxes or bonds or other
  obligations of the county payable from ad valorem taxes. The county
  may use any other source lawfully available to the county under
  other law, including proceeds from sales taxes and fees, for a
  purpose authorized by this chapter.
         (b)  A county may not make a loan or grant under this chapter
  for a period exceeding 10 years.
         Sec. 381.007.  PUBLIC MEETING AND NOTICE REQUIREMENTS. (a)
  Before a county may use county money for a purpose authorized by
  this chapter, the commissioners court of the county must hold a
  public hearing regarding the proposed use at which members of the
  public are given the opportunity to be heard.
         (b)  A county that maintains an Internet website shall post
  the current version of the proposed use of county money under this
  chapter on the website.
         (c)  In addition to any other requirement of law, the public
  notice of a meeting at which the commissioners court of a county
  will consider the adoption of a proposed use of county money under
  this chapter must contain:
               (1)  the name of the recipient of the county money;
               (2)  a general description of the public purpose for
  which the county money is provided; and
               (3)  if applicable, the amount of and period of time
  for a loan or grant of county money.
         (d)  Except as otherwise provided by this section, a county
  must give the notice of a meeting required by this section in the
  manner provided by Chapter 551, Government Code.
         (e)  A county must give notice of a meeting required by this
  section not less than 15 business days but not more than 30 business
  days before the meeting.
         (f)  If a county postpones a meeting required by this section
  to a later date, the county must hold the postponed meeting not more
  than 10 business days after the date for which the meeting was
  originally scheduled. If the postponement would result in the
  meeting being held more than 30 business days after the date the
  county gave notice of the meeting, the county must give a new notice
  of the meeting as provided by Subsection (e).
         SECTION 4.  Subchapter A, Chapter 312, Tax Code, is amended
  by adding Section 312.008 to read as follows:
         Sec. 312.008.  LIMITATION ON TAX ABATEMENT AGREEMENTS. In a
  tax abatement agreement entered into under this chapter, a taxing
  unit:
               (1)  may only provide an abatement of the taxing unit's
  ad valorem taxes; and
               (2)  may not provide a loan or grant of public money
  from any other source.
         SECTION 5.  Section 312.207, Tax Code, is amended by
  amending Subsection (d) and adding Subsections (e) and (f) to read
  as follows:
         (d)  The notice of a meeting required by this section must be
  given in the manner required by Chapter 551, Government Code,
  except as otherwise provided by this section [that the notice must
  be provided at least 30 days before the scheduled time of the
  meeting].
         (e)  A municipality or other taxing unit must give notice of
  a meeting required by this section not less than 15 business days
  but not more than 30 business days before the meeting.
         (f)  If a municipality or other taxing unit postpones a
  meeting required by this section to a later date, the municipality
  or other taxing unit must hold the postponed meeting not more than
  10 business days after the date for which the meeting was originally
  scheduled. If the postponement would result in the meeting being
  held more than 30 business days after the date the municipality or
  other taxing unit gave notice of the meeting, the municipality or
  other taxing unit must give a new notice of the meeting as provided
  by Subsection (e).
         SECTION 6.  Sections 381.002(a) and 381.004(g), Local
  Government Code, are repealed.
         SECTION 7.  The changes in law made by this Act apply only to
  an agreement entered into on or after the effective date of this
  Act. An agreement entered into before the effective date of this Act
  is governed by the law applicable to the contract on the date the
  contract was entered into, and that law is continued in effect for
  that purpose.
         SECTION 8.  This Act takes effect September 1, 2023.