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