88R12418 DRS-D
By: Birdwell S.B. No. 1419
A BILL TO BE ENTITLED
AN ACT
relating to limitations on the use of public money under certain
economic development agreements or programs adopted by certain
political subdivisions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 380.002(c), Local Government Code, is
amended to read as follows:
(c) The funds granted by the municipality under this section
shall be derived from any source lawfully available to the
municipality under its charter or other law, other than from the
proceeds of:
(1) ad valorem taxes; or
(2) bonds or other obligations of the municipality
payable from ad valorem taxes.
SECTION 2. Chapter 380, Local Government Code, is amended
by adding Sections 380.005 and 380.006 to read as follows:
Sec. 380.005. LIMITATIONS ON LOANS AND GRANTS OF PUBLIC
MONEY. (a) A municipality may not make a loan or grant of public
money under this chapter from the proceeds of ad valorem taxes or
bonds or other obligations of the municipality payable from ad
valorem taxes. The municipality may use any other source lawfully
available to the municipality under its charter or other law,
including proceeds from sales taxes and fees, to make the loan or
grant.
(b) A municipality may not make a loan or grant under this
chapter for a period exceeding 10 years.
Sec. 380.006. PUBLIC MEETING AND NOTICE REQUIREMENTS. (a)
Before a municipality may make a loan or grant under this chapter,
the governing body of the municipality must hold a public hearing
regarding the proposed loan or grant at which members of the public
are given the opportunity to be heard.
(b) A municipality that maintains an Internet website shall
post the current version of the proposed loan or grant under this
chapter on the website.
(c) In addition to any other requirement of law, the public
notice of a meeting at which the governing body of a municipality
will consider the adoption of a proposed loan or grant under this
chapter must contain:
(1) the name of the recipient of the loan or grant;
(2) a general description of the public purpose for
which the loan or grant is provided; and
(3) the amount of and period of time for the loan or
grant.
(d) Except as otherwise provided by this section, a
municipality must give the notice of a meeting required by this
section in the manner provided by Chapter 551, Government Code.
(e) A municipality must give notice of a meeting required by
this section not less than 15 business days but not more than 30
business days before the meeting.
(f) If a municipality postpones a meeting required by this
section to a later date, the municipality must hold the postponed
meeting not more than 10 business days after the date for which the
meeting was originally scheduled. If the postponement would result
in the meeting being held more than 30 business days after the date
the municipality gave notice of the meeting, the municipality must
give a new notice of the meeting as provided by Subsection (e).
SECTION 3. Chapter 381, Local Government Code, is amended
by adding Sections 381.006 and 381.007 to read as follows:
Sec. 381.006. LIMITATIONS ON USE OF COUNTY MONEY. (a) A
county, county industrial commission, or development board, as
applicable, may not use county money for a purpose authorized by
this chapter from the proceeds of ad valorem taxes or bonds or other
obligations of the county payable from ad valorem taxes. The county
may use any other source lawfully available to the county under
other law, including proceeds from sales taxes and fees, for a
purpose authorized by this chapter.
(b) A county may not make a loan or grant under this chapter
for a period exceeding 10 years.
Sec. 381.007. PUBLIC MEETING AND NOTICE REQUIREMENTS. (a)
Before a county may use county money for a purpose authorized by
this chapter, the commissioners court of the county must hold a
public hearing regarding the proposed use at which members of the
public are given the opportunity to be heard.
(b) A county that maintains an Internet website shall post
the current version of the proposed use of county money under this
chapter on the website.
(c) In addition to any other requirement of law, the public
notice of a meeting at which the commissioners court of a county
will consider the adoption of a proposed use of county money under
this chapter must contain:
(1) the name of the recipient of the county money;
(2) a general description of the public purpose for
which the county money is provided; and
(3) if applicable, the amount of and period of time for
a loan or grant of county money.
(d) Except as otherwise provided by this section, a county
must give the notice of a meeting required by this section in the
manner provided by Chapter 551, Government Code.
(e) A county must give notice of a meeting required by this
section not less than 15 business days but not more than 30 business
days before the meeting.
(f) If a county postpones a meeting required by this section
to a later date, the county must hold the postponed meeting not more
than 10 business days after the date for which the meeting was
originally scheduled. If the postponement would result in the
meeting being held more than 30 business days after the date the
county gave notice of the meeting, the county must give a new notice
of the meeting as provided by Subsection (e).
SECTION 4. Subchapter A, Chapter 312, Tax Code, is amended
by adding Section 312.008 to read as follows:
Sec. 312.008. LIMITATION ON TAX ABATEMENT AGREEMENTS. In a
tax abatement agreement entered into under this chapter, a taxing
unit:
(1) may only provide an abatement of the taxing unit's
ad valorem taxes; and
(2) may not provide a loan or grant of public money
from any other source.
SECTION 5. Section 312.207, Tax Code, is amended by
amending Subsection (d) and adding Subsections (e) and (f) to read
as follows:
(d) The notice of a meeting required by this section must be
given in the manner required by Chapter 551, Government Code,
except as otherwise provided by this section [that the notice must
be provided at least 30 days before the scheduled time of the
meeting].
(e) A municipality or other taxing unit must give notice of
a meeting required by this section not less than 15 business days
but not more than 30 business days before the meeting.
(f) If a municipality or other taxing unit postpones a
meeting required by this section to a later date, the municipality
or other taxing unit must hold the postponed meeting not more than
10 business days after the date for which the meeting was originally
scheduled. If the postponement would result in the meeting being
held more than 30 business days after the date the municipality or
other taxing unit gave notice of the meeting, the municipality or
other taxing unit must give a new notice of the meeting as provided
by Subsection (e).
SECTION 6. Sections 381.002(a) and 381.004(g), Local
Government Code, are repealed.
SECTION 7. The changes in law made by this Act apply only to
an agreement entered into on or after the effective date of this
Act. An agreement entered into before the effective date of this
Act is governed by the law applicable to the contract on the date
the contract was entered into, and that law is continued in effect
for that purpose.
SECTION 8. This Act takes effect September 1, 2023.