| 1 | 1 | | 84R10038 ATP-D |
|---|
| 2 | 2 | | By: Smithee H.B. No. 3838 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the procedures required for a Type A economic |
|---|
| 8 | 8 | | development corporation to make certain expenditures. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Subchapter C, Chapter 504, Local Government |
|---|
| 11 | 11 | | Code, is amended by adding Section 504.108 to read as follows: |
|---|
| 12 | 12 | | Sec. 504.108. PROCEDURES FOR CERTAIN LARGE EXPENDITURES. |
|---|
| 13 | 13 | | (a) A Type A corporation may not make an expenditure in the amount |
|---|
| 14 | 14 | | of $50,000 or more unless: |
|---|
| 15 | 15 | | (1) the corporation first publishes notice of the |
|---|
| 16 | 16 | | expenditure on the publicly accessible website of the authorizing |
|---|
| 17 | 17 | | municipality or in a newspaper of general circulation in the |
|---|
| 18 | 18 | | authorizing municipality; and |
|---|
| 19 | 19 | | (2) the authorizing municipality approves the |
|---|
| 20 | 20 | | expenditure, not earlier than the seventh day after the date notice |
|---|
| 21 | 21 | | is published under Subdivision (1). |
|---|
| 22 | 22 | | (b) The notice under Subsection (a) must state: |
|---|
| 23 | 23 | | (1) each business entity or other person who will |
|---|
| 24 | 24 | | receive money from the corporation for the expenditure; and |
|---|
| 25 | 25 | | (2) each investor or owner with an ownership interest |
|---|
| 26 | 26 | | of five percent or more in a business entity described by |
|---|
| 27 | 27 | | Subdivision (1). |
|---|
| 28 | 28 | | SECTION 2. Section 504.108, Local Government Code, as added |
|---|
| 29 | 29 | | by this Act, applies only to an expenditure made or obligated to be |
|---|
| 30 | 30 | | made on or after the effective date of this Act. An expenditure |
|---|
| 31 | 31 | | that is made or obligated to be made before the effective date of |
|---|
| 32 | 32 | | this Act is governed by the law in effect when the corporation made |
|---|
| 33 | 33 | | or first became obligated to make the expenditure, and the former |
|---|
| 34 | 34 | | law is continued in effect for that purpose. |
|---|
| 35 | 35 | | SECTION 3. This Act takes effect September 1, 2015. |
|---|