Bill Text: TX HB706 | 2027-2028 | 90th Legislature Regular Session | Introduced

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Bill Title: Relating to election and public hearing requirements before a municipality may enter into a data center development agreement under certain economic development programs.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced) 2026-11-09 - Filed [HB706 Detail]

Download: Texas-2027-HB706-Introduced.html

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By: Ochoa H.B. No. 706

A BILL TO BE ENTITLED
AN ACT
relating to election and public hearing requirements before a
municipality may enter into a data center development agreement
under certain economic development programs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 380, Local Government Code, is amended
by adding Section 380.005 to read as follows:
Sec. 380.005. DEVELOPMENT AGREEMENTS FOR DATA CENTERS;
ELECTION; PUBLIC HEARING. (a) In this section, "data center" means
at least 100,000 square feet of space in a building or portion of a
building located in this state, in which the space:
(1) is specifically constructed or refurbished and
actually used primarily to house servers and related equipment and
support staff for the processing, storage, and distribution of
data;
(2) is used by one or more occupants for the
processing, storage, and distribution of data;
(3) is not used primarily by a telecommunications
provider to deliver telecommunications services, as defined by
Section 151.0103, Tax Code; and
(4) has an uninterruptible power source, generator
backup power, and a fire suppression and prevention system.
(b) This section applies only to an area that:
(1) is located in a municipality;
(2) has been annexed by a municipality for limited
purposes; or
(3) is located in the extraterritorial jurisdiction of
a municipality.
(c) Notwithstanding any other provision of this chapter,
the governing body of a municipality, or an entity with which the
governing body may contract to administer a program under this
chapter, may not enter into a development agreement under an
economic development program established by this chapter if the
subject of the agreement is the construction or operation of a data
center in an area to which this section applies unless:
(1) the governing body of the municipality holds not
less than five public hearings on the subject of the development
agreement; and
(2) the voters of an area to which this section applies
support entering into the development agreement at an election held
for that purpose.
(d) The governing body of a municipality, in relation to a
public hearing held under this section, must:
(1) provide public notice for each hearing that:
(A) is provided not earlier than the seventh day
before the date of each public hearing;
(B) is provided in a newspaper or other
publication regularly circulated in the municipality; and
(C) is posted on:
(i) the municipality's Internet website;
(ii) any social media account managed by
the municipality; and
(iii) each polling place where the
municipality intends to hold an election under Subsection (c);
(2) provide interested parties an opportunity to be
heard on the development agreement at the hearing; and
(3) invite the following persons to the hearing:
(A) residents of an area to which this section
applies;
(B) the person entering into the development
agreement with the municipality;
(C) any department of the municipality that would
be impacted by the development, including departments related to
electricity and water use, municipal infrastructure, and housing;
and
(D) any business located in an area to which this
section applies that would be impacted by the development
agreement, including retail electricity providers if applicable.
(e) The governing body of a municipality may only order an
election under Subsection (c):
(1) on a uniform election date; and
(2) after:
(A) the governing body holds the public hearings
as provided by this section; and
(B) providing notice of the election not earlier
than the 90th day before the date of the election:
(i) in a newspaper or other publication
regularly circulated in the municipality;
(ii) on the municipality's Internet
website;
(iii) on any social media account managed
by the municipality; and
(iv) at each polling place where the
municipality intends to hold the election.
(f) A ballot for an election ordered under Subsection (c)
must be printed to provide for voting for or against the
proposition: "Granting authority to the municipality or
municipality's contracting entity to enter into a development
agreement for the purposes of constructing or operating a data
center." Each qualified voter of an area to which this section
applies is entitled to vote in the election.
SECTION 2. Section 380.005, Local Government Code, as added
by this Act, applies only to a contract or agreement entered into on
or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2027.