| 1 | 1 | | By: Gervin-Hawkins H.B. No. 5173 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | Relating to the establishment of the small municipality revenue |
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| 7 | 7 | | recovery grant program to provide financial assistance for economic |
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| 8 | 8 | | development to small municipalities facing severe economic |
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| 9 | 9 | | hardships. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subtitle A, Title 4, Local Government Code, is |
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| 12 | 12 | | amended by adding Chapter 110 to read as follows: |
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| 13 | 13 | | CHAPTER 110. MISCELLANEOUS FINANCIAL PROVISIONS AFFECTING |
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| 14 | 14 | | MUNICIPALITIES |
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| 15 | 15 | | Sec. 110.001. SMALL MUNICIPALITY REVENUE RECOVERY GRANT |
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| 16 | 16 | | PROGRAM. (a) In this section: |
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| 17 | 17 | | (1) "Grant" means a grant authorized to be awarded by |
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| 18 | 18 | | the comptroller under the small municipality revenue recovery grant |
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| 19 | 19 | | program established by this section. |
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| 20 | 20 | | (2) "Qualified municipality" means a municipality |
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| 21 | 21 | | with a population of 10,000 or less that experienced a decrease in |
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| 22 | 22 | | total revenue of at least 15 percent during the preceding municipal |
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| 23 | 23 | | fiscal year as the result of a reduction or termination of contracts |
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| 24 | 24 | | with private sector entities. |
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| 25 | 25 | | (b) The comptroller shall establish and administer the |
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| 26 | 26 | | small municipal revenue recovery grant program to support the state |
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| 27 | 27 | | purpose of ensuring the vitality of small municipalities throughout |
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| 28 | 28 | | the state by providing financial assistance for economic |
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| 29 | 29 | | development to qualified municipalities. |
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| 30 | 30 | | (c) To receive a grant, a municipality must submit an |
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| 31 | 31 | | application to the comptroller in the manner prescribed by |
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| 32 | 32 | | comptroller rule. |
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| 33 | 33 | | (d) The comptroller may award a grant to a qualified |
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| 34 | 34 | | municipality that applies for the grant using money appropriated to |
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| 35 | 35 | | the comptroller for that purpose or other available money, |
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| 36 | 36 | | including federal funds, that may be used for purposes of this |
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| 37 | 37 | | section. A grant must be in an amount of: |
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| 38 | 38 | | (1) not more than $7 million for economic development |
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| 39 | 39 | | programs; and |
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| 40 | 40 | | (2) not less than $100,000 or more than $7 million to |
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| 41 | 41 | | fund an economic development project described by Subsection |
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| 42 | 42 | | (e)(2). |
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| 43 | 43 | | (e) A municipality that is awarded a grant may not use grant |
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| 44 | 44 | | money for a purpose other than: |
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| 45 | 45 | | (1) economic development programs; or |
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| 46 | 46 | | (2) to fund one or more specific projects to create or |
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| 47 | 47 | | promote the creation of jobs in the municipality, which may include |
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| 48 | 48 | | the purchase of real and personal property and the construction or |
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| 49 | 49 | | improvement of new buildings, facilities, infrastructure, or other |
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| 50 | 50 | | improvements. |
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| 51 | 51 | | (f) The comptroller shall adopt rules necessary to |
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| 52 | 52 | | implement this section, including rules that establish: |
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| 53 | 53 | | (1) a standardized application process, including the |
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| 54 | 54 | | form to be used to apply for a grant, the manner of submitting the |
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| 55 | 55 | | form, and the information required to be submitted with the |
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| 56 | 56 | | application; |
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| 57 | 57 | | (2) timelines for: |
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| 58 | 58 | | (A) applying for the grant; |
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| 59 | 59 | | (B) disbursement of grant money; and |
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| 60 | 60 | | (C) spending grant money; and |
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| 61 | 61 | | (3) procedures for: |
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| 62 | 62 | | (A) monitoring the disbursement of grant money to |
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| 63 | 63 | | ensure compliance with this section; and |
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| 64 | 64 | | (B) the return of grant money that was not used by |
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| 65 | 65 | | a municipality for a purpose authorized by this section. |
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| 66 | 66 | | SECTION 2. A qualified municipality, as defined by Section |
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| 67 | 67 | | 110.001, Local Government Code, as added by this Act, may not apply |
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| 68 | 68 | | for a small municipality revenue recovery grant before January 1, |
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| 69 | 69 | | 2024. |
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| 70 | 70 | | SECTION 3. Not later than January 1, 2024, the comptroller |
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| 71 | 71 | | of public accounts shall comply with the requirements of Section |
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| 72 | 72 | | 110.001, Local Government Code, as added by this Act. |
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| 73 | 73 | | SECTION 4. This Act takes effect September 1, 2023. |
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