Texas 2023 - 88th Regular

Texas House Bill HB4940 Compare Versions

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1	1	By: Martinez Fischer H.B. No. 4940
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to limitations on the use of public money under certain
7	7	economic development agreements or programs adopted by certain
8	8	political subdivisions.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 380.002(c), Local Government Code, is
11	11	amended to read as follows:
12	12	(c) The funds granted by the municipality under this section
13	13	shall be derived from any source lawfully available to the
14	14	municipality under its charter or other law, other than from the
15	15	proceeds of:
16	16	(1) ad valorem taxes; or
17	17	(2) bonds or other obligations of the municipality
18	18	payable from ad valorem taxes.
19	19	SECTION 2. Chapter 380, Local Government Code, is amended
20	20	by adding Sections 380.005 and 380.006 to read as follows:
21	21	Sec. 380.005. LIMITATIONS ON LOANS AND GRANTS OF PUBLIC
22	22	MONEY. (a) A municipality may not make a loan or grant of public
23	23	money under this chapter from the proceeds of ad valorem taxes or
24	24	bonds or other obligations of the municipality payable from ad
25	25	valorem taxes. The municipality may use any other source lawfully
26	26	available to the municipality under its charter or other law,
27	27	including proceeds from sales taxes and fees, to make the loan or
28	28	grant.
29	29	(b) A municipality may not make a loan or grant under this
30	30	chapter for a period exceeding 10 years.
31	31	Sec. 380.006. PUBLIC MEETING AND NOTICE REQUIREMENTS. (a)
32	32	Before a municipality may make a loan or grant under this chapter,
33	33	the governing body of the municipality must hold a public hearing
34	34	regarding the proposed loan or grant at which members of the public
35	35	are given the opportunity to be heard.
36	36	(b) A municipality that maintains an Internet website shall
37	37	post the current version of the proposed loan or grant under this
38	38	chapter on the website.
39	39	(c) In addition to any other requirement of law, the public
40	40	notice of a meeting at which the governing body of a municipality
41	41	will consider the adoption of a proposed loan or grant under this
42	42	chapter must contain:
43	43	(1) the name of the recipient of the loan or grant;
44	44	(2) a general description of the public purpose for
45	45	which the loan or grant is provided; and
46	46	(3) the amount of and period of time for the loan or
47	47	grant.
48	48	(d) Except as otherwise provided by this section, a
49	49	municipality must give the notice of a meeting required by this
50	50	section in the manner provided by Chapter 551, Government Code.
51	51	(e) A municipality must give notice of a meeting required by
52	52	this section not less than 15 business days but not more than 30
53	53	business days before the meeting.
54	54	(f) If a municipality postpones a meeting required by this
55	55	section to a later date, the municipality must hold the postponed
56	56	meeting not more than 10 business days after the date for which the
57	57	meeting was originally scheduled. If the postponement would result
58	58	in the meeting being held more than 30 business days after the date
59	59	the municipality gave notice of the meeting, the municipality must
60	60	give a new notice of the meeting as provided by Subsection (e).
61	61	SECTION 3. Chapter 381, Local Government Code, is amended
62	62	by adding Sections 381.006 and 381.007 to read as follows:
63	63	Sec. 381.006. LIMITATIONS ON USE OF COUNTY MONEY. (a) A
64	64	county, county industrial commission, or development board, as
65	65	applicable, may not use county money for a purpose authorized by
66	66	this chapter from the proceeds of ad valorem taxes or bonds or other
67	67	obligations of the county payable from ad valorem taxes. The county
68	68	may use any other source lawfully available to the county under
69	69	other law, including proceeds from sales taxes and fees, for a
70	70	purpose authorized by this chapter.
71	71	(b) A county may not make a loan or grant under this chapter
72	72	for a period exceeding 10 years.
73	73	Sec. 381.007. PUBLIC MEETING AND NOTICE REQUIREMENTS. (a)
74	74	Before a county may use county money for a purpose authorized by
75	75	this chapter, the commissioners court of the county must hold a
76	76	public hearing regarding the proposed use at which members of the
77	77	public are given the opportunity to be heard.
78	78	(b) A county that maintains an Internet website shall post
79	79	the current version of the proposed use of county money under this
80	80	chapter on the website.
81	81	(c) In addition to any other requirement of law, the public
82	82	notice of a meeting at which the commissioners court of a county
83	83	will consider the adoption of a proposed use of county money under
84	84	this chapter must contain:
85	85	(1) the name of the recipient of the county money;
86	86	(2) a general description of the public purpose for
87	87	which the county money is provided; and
88	88	(3) if applicable, the amount of and period of time
89	89	for a loan or grant of county money.
90	90	(d) Except as otherwise provided by this section, a county
91	91	must give the notice of a meeting required by this section in the
92	92	manner provided by Chapter 551, Government Code.
93	93	(e) A county must give notice of a meeting required by this
94	94	section not less than 15 business days but not more than 30 business
95	95	days before the meeting.
96	96	(f) If a county postpones a meeting required by this section
97	97	to a later date, the county must hold the postponed meeting not more
98	98	than 10 business days after the date for which the meeting was
99	99	originally scheduled. If the postponement would result in the
100	100	meeting being held more than 30 business days after the date the
101	101	county gave notice of the meeting, the county must give a new notice
102	102	of the meeting as provided by Subsection (e).
103	103	SECTION 4. Subchapter A, Chapter 312, Tax Code, is amended
104	104	by adding Section 312.008 to read as follows:
105	105	Sec. 312.008. LIMITATION ON TAX ABATEMENT AGREEMENTS. In a
106	106	tax abatement agreement entered into under this chapter, a taxing
107	107	unit:
108	108	(1) may only provide an abatement of the taxing unit's
109	109	ad valorem taxes; and
110	110	(2) may not provide a loan or grant of public money
111	111	from any other source.
112	112	SECTION 5. Section 312.207, Tax Code, is amended by
113	113	amending Subsection (d) and adding Subsections (e) and (f) to read
114	114	as follows:
115	115	(d) The notice of a meeting required by this section must be
116	116	given in the manner required by Chapter 551, Government Code,
117	117	except as otherwise provided by this section [that the notice must
118	118	be provided at least 30 days before the scheduled time of the
119	119	meeting].
120	120	(e) A municipality or other taxing unit must give notice of
121	121	a meeting required by this section not less than 15 business days
122	122	but not more than 30 business days before the meeting.
123	123	(f) If a municipality or other taxing unit postpones a
124	124	meeting required by this section to a later date, the municipality
125	125	or other taxing unit must hold the postponed meeting not more than
126	126	10 business days after the date for which the meeting was originally
127	127	scheduled. If the postponement would result in the meeting being
128	128	held more than 30 business days after the date the municipality or
129	129	other taxing unit gave notice of the meeting, the municipality or
130	130	other taxing unit must give a new notice of the meeting as provided
131	131	by Subsection (e).
132	132	SECTION 6. Sections 381.002(a) and 381.004(g), Local
133	133	Government Code, are repealed.
134	134	SECTION 7. The changes in law made by this Act apply only to
135	135	an agreement entered into on or after the effective date of this
136	136	Act. An agreement entered into before the effective date of this Act
137	137	is governed by the law applicable to the contract on the date the
138	138	contract was entered into, and that law is continued in effect for
139	139	that purpose.
140	140	SECTION 8. This Act takes effect September 1, 2023.