| 1 | 1 | | 88R404 DRS-F |
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| 2 | 2 | | By: Shine H.B. No. 4335 |
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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 certain requirements applicable to certain municipal |
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| 8 | 8 | | economic development programs and grants. |
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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 380.001, Local Government Code, is |
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| 11 | 11 | | amended by adding Subsections (d) and (e) to read as follows: |
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| 12 | 12 | | (d) The governing body of a municipality may not establish, |
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| 13 | 13 | | amend, or renew a program under Subsection (a) unless the governing |
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| 14 | 14 | | body has first held a public hearing on the matter at which members |
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| 15 | 15 | | of the public are given the opportunity to be heard. |
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| 16 | 16 | | (e) A municipality may not make a loan or grant of public |
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| 17 | 17 | | money or provide municipal personnel or services to a person |
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| 18 | 18 | | through a program established under this section unless the |
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| 19 | 19 | | municipality enters into a written agreement with the person. The |
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| 20 | 20 | | agreement must detail the terms and conditions of the loan, grant, |
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| 21 | 21 | | or provision of municipal personnel or services. An agreement with |
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| 22 | 22 | | a for-profit entity must require the creation or retention of jobs |
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| 23 | 23 | | and the making of a capital investment, and must include a schedule |
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| 24 | 24 | | of the jobs to be created or retained and the capital investment to |
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| 25 | 25 | | be made. An agreement must include a requirement that the person |
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| 26 | 26 | | repay to the municipality the cost of any benefit received by the |
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| 27 | 27 | | person from the municipality under the agreement if the person |
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| 28 | 28 | | fails to meet each performance requirement required by the |
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| 29 | 29 | | agreement. |
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| 30 | 30 | | SECTION 2. Section 380.002, Local Government Code, is |
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| 31 | 31 | | amended by adding Subsection (d) to read as follows: |
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| 32 | 32 | | (d) A home-rule municipality may not grant public money to |
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| 33 | 33 | | an organization or corporation under this section or through a |
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| 34 | 34 | | program established under this section unless the municipality |
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| 35 | 35 | | complies with the requirements of Sections 380.001(d) and (e). |
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| 36 | 36 | | SECTION 3. The changes in law made by this Act apply only to |
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| 37 | 37 | | an agreement entered into by a municipality under Section 380.001 |
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| 38 | 38 | | or 380.002, Local Government Code, as amended by this Act, on or |
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| 39 | 39 | | after the effective date of this Act. |
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| 40 | 40 | | SECTION 4. This Act takes effect September 1, 2023. |
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