BILL ANALYSIS H.B. 1554 By: Rogers Urban Affairs Committee Report (Unamended) BACKGROUND AND PURPOSE It has been suggested that current law unnecessarily restricts a municipal development district's funding of certain economic development projects to projects in the district's boundaries, even if a project located outside the district is determined to have a positive return on investment for the district. H.B. 1554 seeks to address this issue by authorizing a district to use money in its development project fund for a development project located outside the district under certain conditions. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 1554 amends the Local Government Code to authorize a municipal development district to use money in its development project fund to pay the costs of planning, acquiring, establishing, developing, constructing, or renovating one or more development projects located outside the district if the district's board of directors determines that the project will provide an economic benefit to the district and if the following entities, as applicable, by resolution approve the project: the municipality that created the district; each municipality in whose corporate limits or extraterritorial jurisdiction the project is located; and the commissioners court of the county in which the project is located, if the project is not located in a municipality's corporate limits or extraterritorial jurisdiction. EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2021.
BILL ANALYSIS
# BILL ANALYSIS
H.B. 1554
By: Rogers
Urban Affairs
Committee Report (Unamended)
H.B. 1554
By: Rogers
Urban Affairs
Committee Report (Unamended)
BACKGROUND AND PURPOSE It has been suggested that current law unnecessarily restricts a municipal development district's funding of certain economic development projects to projects in the district's boundaries, even if a project located outside the district is determined to have a positive return on investment for the district. H.B. 1554 seeks to address this issue by authorizing a district to use money in its development project fund for a development project located outside the district under certain conditions.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS H.B. 1554 amends the Local Government Code to authorize a municipal development district to use money in its development project fund to pay the costs of planning, acquiring, establishing, developing, constructing, or renovating one or more development projects located outside the district if the district's board of directors determines that the project will provide an economic benefit to the district and if the following entities, as applicable, by resolution approve the project: the municipality that created the district; each municipality in whose corporate limits or extraterritorial jurisdiction the project is located; and the commissioners court of the county in which the project is located, if the project is not located in a municipality's corporate limits or extraterritorial jurisdiction.
EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2021.
BACKGROUND AND PURPOSE
It has been suggested that current law unnecessarily restricts a municipal development district's funding of certain economic development projects to projects in the district's boundaries, even if a project located outside the district is determined to have a positive return on investment for the district. H.B. 1554 seeks to address this issue by authorizing a district to use money in its development project fund for a development project located outside the district under certain conditions.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 1554 amends the Local Government Code to authorize a municipal development district to use money in its development project fund to pay the costs of planning, acquiring, establishing, developing, constructing, or renovating one or more development projects located outside the district if the district's board of directors determines that the project will provide an economic benefit to the district and if the following entities, as applicable, by resolution approve the project:
the municipality that created the district;
each municipality in whose corporate limits or extraterritorial jurisdiction the project is located; and
the commissioners court of the county in which the project is located, if the project is not located in a municipality's corporate limits or extraterritorial jurisdiction.
EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2021.