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