87R4996 MCF-F
By: Buckingham S.B. No. 565
A BILL TO BE ENTITLED
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 board determines that the
development project will provide an economic benefit to the
district; and
(ii) the following entities, as applicable,
by resolution approve the development project:
(a) the municipality that created the
district;
(b) each municipality in whose
corporate limits or extraterritorial jurisdiction the project is
located; and
(c) the commissioners court of the
county in which the project is located, if the project is not
located in the corporate limits or extraterritorial jurisdiction of
a municipality;
(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.