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A BILL TO BE ENTITLED
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AN ACT
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Relating to the establishment of the small municipality revenue |
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recovery grant program to provide financial assistance for economic |
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development to small municipalities facing severe economic |
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hardships. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 4, Local Government Code, is |
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amended by adding Chapter 110 to read as follows: |
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CHAPTER 110. MISCELLANEOUS FINANCIAL PROVISIONS AFFECTING |
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MUNICIPALITIES |
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Sec. 110.001. SMALL MUNICIPALITY REVENUE RECOVERY GRANT |
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PROGRAM. (a) In this section: |
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(1) "Grant" means a grant authorized to be awarded by |
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the comptroller under the small municipality revenue recovery grant |
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program established by this section. |
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(2) "Qualified municipality" means a municipality |
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with a population of 10,000 or less that experienced a decrease in |
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total revenue of at least 15 percent during the preceding municipal |
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fiscal year as the result of a reduction or termination of contracts |
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with private sector entities. |
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(b) The comptroller shall establish and administer the |
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small municipal revenue recovery grant program to support the state |
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purpose of ensuring the vitality of small municipalities throughout |
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the state by providing financial assistance for economic |
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development to qualified municipalities. |
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(c) To receive a grant, a municipality must submit an |
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application to the comptroller in the manner prescribed by |
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comptroller rule. |
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(d) The comptroller may award a grant to a qualified |
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municipality that applies for the grant using money appropriated to |
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the comptroller for that purpose or other available money, |
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including federal funds, that may be used for purposes of this |
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section. A grant must be in an amount of: |
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(1) not more than $7 million for economic development |
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programs; and |
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(2) not less than $100,000 or more than $7 million to |
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fund an economic development project described by Subsection |
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(e)(2). |
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(e) A municipality that is awarded a grant may not use grant |
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money for a purpose other than: |
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(1) economic development programs; or |
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(2) to fund one or more specific projects to create or |
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promote the creation of jobs in the municipality, which may include |
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the purchase of real and personal property and the construction or |
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improvement of new buildings, facilities, infrastructure, or other |
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improvements. |
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(f) The comptroller shall adopt rules necessary to |
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implement this section, including rules that establish: |
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(1) a standardized application process, including the |
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form to be used to apply for a grant, the manner of submitting the |
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form, and the information required to be submitted with the |
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application; |
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(2) timelines for: |
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(A) applying for the grant; |
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(B) disbursement of grant money; and |
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(C) spending grant money; and |
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(3) procedures for: |
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(A) monitoring the disbursement of grant money to |
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ensure compliance with this section; and |
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(B) the return of grant money that was not used by |
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a municipality for a purpose authorized by this section. |
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SECTION 2. A qualified municipality, as defined by Section |
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110.001, Local Government Code, as added by this Act, may not apply |
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for a small municipality revenue recovery grant before January 1, |
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2024. |
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SECTION 3. Not later than January 1, 2024, the comptroller |
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of public accounts shall comply with the requirements of Section |
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110.001, Local Government Code, as added by this Act. |
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SECTION 4. This Act takes effect September 1, 2023. |