Texas 2025 - 89th Regular

Texas House Bill HB563 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R3729 JBD-F
2	2	By: Gervin-Hawkins H.B. No. 563
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the establishment of the small municipality revenue
10	10	recovery grant program to provide financial assistance for economic
11	11	development to small municipalities facing severe economic
12	12	hardships.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Subtitle A, Title 4, Local Government Code, is
15	15	amended by adding Chapter 110 to read as follows:
16	16	CHAPTER 110. MISCELLANEOUS FINANCIAL PROVISIONS AFFECTING
17	17	MUNICIPALITIES
18	18	Sec. 110.001. SMALL MUNICIPALITY REVENUE RECOVERY GRANT
19	19	PROGRAM. (a) In this section:
20	20	(1) "Grant" means a grant authorized to be awarded by
21	21	the comptroller under the small municipality revenue recovery grant
22	22	program established under this section.
23	23	(2) "Qualified municipality" means a municipality
24	24	with a population of 10,000 or less that experienced a decrease in
25	25	total revenue of at least 15 percent during the preceding municipal
26	26	fiscal year as the result of a reduction or termination of contracts
27	27	with private sector entities.
28	28	(b) The comptroller shall establish and administer the
29	29	small municipal revenue recovery grant program to support the state
30	30	purpose of ensuring the vitality of small municipalities throughout
31	31	the state by providing financial assistance for economic
32	32	development to qualified municipalities.
33	33	(c) To receive a grant, a municipality must submit an
34	34	application to the comptroller in the manner prescribed by
35	35	comptroller rule.
36	36	(d) The comptroller may award a grant to a qualified
37	37	municipality that applies for the grant using money appropriated to
38	38	the comptroller for that purpose or other available money,
39	39	including federal funds, that may be used for purposes of this
40	40	section. A grant must be in an amount of:
41	41	(1) not more than $7 million for economic development
42	42	programs; and
43	43	(2) not less than $100,000 or more than $7 million to
44	44	fund an economic development project described by Subsection
45	45	(e)(2).
46	46	(e) A municipality that is awarded a grant may not use grant
47	47	money for a purpose other than:
48	48	(1) economic development programs; or
49	49	(2) to fund one or more specific projects to create or
50	50	promote the creation of jobs in the municipality, which may include
51	51	the purchase of real and personal property and the construction or
52	52	improvement of new buildings, facilities, infrastructure, or other
53	53	improvements.
54	54	(f) The comptroller shall adopt rules necessary to
55	55	implement this section, including rules that establish:
56	56	(1) a standardized application process, including the
57	57	form to be used to apply for a grant, the manner of submitting the
58	58	form, and the information required to be submitted with the
59	59	application;
60	60	(2) deadlines for:
61	61	(A) applying for the grant;
62	62	(B) disbursement of grant money; and
63	63	(C) spending grant money; and
64	64	(3) procedures for:
65	65	(A) monitoring the disbursement of grant money to
66	66	ensure compliance with this section; and
67	67	(B) the return of grant money that was not used by
68	68	a municipality for a purpose authorized by this section.
69	69	SECTION 2. A qualified municipality, as defined by Section
70	70	110.001, Local Government Code, as added by this Act, may not apply
71	71	for a small municipality revenue recovery grant before January 1,
72	72	2026.
73	73	SECTION 3. Not later than January 1, 2026, the comptroller
74	74	of public accounts shall comply with the requirements of Section
75	75	110.001, Local Government Code, as added by this Act.
76	76	SECTION 4. This Act takes effect September 1, 2025.