| 1 | 1 | | 87R4996 MCF-F |
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| 2 | 2 | | By: Buckingham S.B. No. 565 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to use of project funds of municipal development |
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| 8 | 8 | | districts. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 377.072(c), Local Government Code, is |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | (c) Except as provided by Subsections (d) and (e), the |
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| 13 | 13 | | district may use money in the development project fund only to: |
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| 14 | 14 | | (1) pay the costs of planning, acquiring, |
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| 15 | 15 | | establishing, developing, constructing, or renovating one or more |
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| 16 | 16 | | development projects located: |
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| 17 | 17 | | (A) in the district; or |
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| 18 | 18 | | (B) outside the district, if: |
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| 19 | 19 | | (i) the board determines that the |
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| 20 | 20 | | development project will provide an economic benefit to the |
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| 21 | 21 | | district; and |
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| 22 | 22 | | (ii) the following entities, as applicable, |
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| 23 | 23 | | by resolution approve the development project: |
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| 24 | 24 | | (a) the municipality that created the |
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| 25 | 25 | | district; |
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| 26 | 26 | | (b) each municipality in whose |
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| 27 | 27 | | corporate limits or extraterritorial jurisdiction the project is |
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| 28 | 28 | | located; and |
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| 29 | 29 | | (c) the commissioners court of the |
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| 30 | 30 | | county in which the project is located, if the project is not |
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| 31 | 31 | | located in the corporate limits or extraterritorial jurisdiction of |
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| 32 | 32 | | a municipality; |
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| 33 | 33 | | (2) pay the principal of, interest on, and other costs |
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| 34 | 34 | | relating to bonds or other obligations issued by the district or to |
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| 35 | 35 | | refund bonds or other obligations; or |
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| 36 | 36 | | (3) pay the costs of operating or maintaining one or |
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| 37 | 37 | | more development projects during the planning, acquisition, |
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| 38 | 38 | | establishment, development, construction, or renovation or while |
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| 39 | 39 | | bonds or other obligations for the planning, acquisition, |
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| 40 | 40 | | establishment, development, construction, or renovation are |
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| 41 | 41 | | outstanding. |
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| 42 | 42 | | SECTION 2. This Act takes effect immediately if it receives |
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| 43 | 43 | | a vote of two-thirds of all the members elected to each house, as |
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| 44 | 44 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 45 | 45 | | Act does not receive the vote necessary for immediate effect, this |
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| 46 | 46 | | Act takes effect September 1, 2021. |
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