H.B. No. 1554
AN ACT
relating to use of project funds of municipal development
districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 377.072(c), Local Government Code, is
amended to read as follows:
(c) Except as provided by Subsections (d) and (e), the
district may use money in the development project fund only to:
(1) pay the costs of planning, acquiring,
establishing, developing, constructing, or renovating one or more
development projects located:
(A) in the district; or
(B) outside the district, if:
(i) the project is located in the
extraterritorial jurisdiction of the municipality that created the
district;
(ii) the board determines that the
development project will provide an economic benefit to the
district; and
(iii) the following entities, as
applicable, by resolution approve the development project:
(a) the municipality that created the
district; and
(b) each municipality in whose
corporate limits or extraterritorial jurisdiction the project is
located;
(2) pay the principal of, interest on, and other costs
relating to bonds or other obligations issued by the district or to
refund bonds or other obligations; or
(3) pay the costs of operating or maintaining one or
more development projects during the planning, acquisition,
establishment, development, construction, or renovation or while
bonds or other obligations for the planning, acquisition,
establishment, development, construction, or renovation are
outstanding.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1554 was passed by the House on April
30, 2021, by the following vote: Yeas 110, Nays 20, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1554 was passed by the Senate on May
27, 2021, by the following vote: Yeas 30, Nays 1.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor