| |
|
|
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. Chapter 380, Local Government Code, is amended |
|
|
by adding Sections 380.005, 380.006, 380.007, and 380.008 to read |
|
|
as follows: |
|
|
Sec. 380.005. LIMITATION ON TAX ABATEMENTS UNDER THIS |
|
|
CHAPTER. (a) A municipality may not grant a tax abatement or enter |
|
|
into a tax abatement agreement under this chapter. |
|
|
(b) This section does not limit the authority of a |
|
|
municipality to make a loan or grant under this chapter: |
|
|
(1) to a recipient who enters into a tax abatement |
|
|
agreement with the municipality under Chapter 312, Tax Code; or |
|
|
(2) in conjunction with a tax abatement agreement |
|
|
entered into by the municipality under Chapter 312, Tax Code. |
|
|
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). |
|
|
Sec. 380.007. PERFORMANCE METRICS REQUIREMENT. (a) An |
|
|
agreement for a loan or grant under this chapter must include |
|
|
appropriate performance metrics relating to the goals of an |
|
|
economic development program established under this chapter. |
|
|
(b) An agreement for a loan or grant under this chapter may |
|
|
not be renewed under Section 380.008(b) unless the municipality |
|
|
determines that the performance metrics under the agreement have |
|
|
been met. |
|
|
Sec. 380.008. PERIOD OF AGREEMENT; RENEWAL. (a) Except as |
|
|
otherwise provided by this section, a municipality may not enter |
|
|
into an agreement to make a loan or grant under this chapter for a |
|
|
period exceeding 10 years. |
|
|
(b) A municipality may, subject to Section 380.007(b), |
|
|
renew an agreement under this chapter. An agreement may be renewed |
|
|
no more than three times, and each renewal period may not exceed |
|
|
five years. |
|
|
(c) The total combined period for an agreement under this |
|
|
chapter, including the initial agreement and renewal periods, may |
|
|
not exceed 25 years. |
|
|
SECTION 2. Chapter 381, Local Government Code, is amended |
|
|
by adding Sections 381.006, 381.007, 381.008, and 381.009 to read |
|
|
as follows: |
|
|
Sec. 381.006. LIMITATION ON TAX ABATEMENTS UNDER THIS |
|
|
CHAPTER. (a) A county may not grant a tax abatement or enter into a |
|
|
tax abatement agreement under this chapter. |
|
|
(b) This section does not limit the authority of a county: |
|
|
(1) to make a loan or grant of county money under this |
|
|
chapter to a recipient who enters into a tax abatement agreement |
|
|
with the county under Chapter 312, Tax Code; or |
|
|
(2) to use county money for a purpose authorized by |
|
|
this chapter in conjunction with a tax abatement agreement entered |
|
|
into by the county under Chapter 312, Tax Code. |
|
|
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). |
|
|
Sec. 381.008. PERFORMANCE METRICS REQUIREMENT. (a) An |
|
|
agreement relating to the use of county money under this chapter |
|
|
must include appropriate performance metrics relating to the goals |
|
|
of an economic development program established under this chapter. |
|
|
(b) An agreement under this chapter may not be renewed under |
|
|
Section 381.009(b) unless the county determines that the |
|
|
performance metrics under the agreement have been met. |
|
|
Sec. 381.009. PERIOD OF AGREEMENT; RENEWAL. (a) Except as |
|
|
otherwise provided by this section, a county may not enter into an |
|
|
agreement to make a loan or grant under this chapter for a period |
|
|
exceeding 10 years. |
|
|
(b) A county may, subject to Section 381.008(b), renew an |
|
|
agreement under this chapter. An agreement may be renewed no more |
|
|
than three times, and each renewal period may not exceed five years. |
|
|
(c) The total combined period for an agreement under this |
|
|
chapter, including the initial agreement and renewal periods, may |
|
|
not exceed 25 years. |
|
|
SECTION 3. 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 4. 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 5. 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 6. This Act takes effect September 1, 2023. |