Bill Text: TX SB1419 | 2023-2024 | 88th Legislature | Engrossed
Bill Title: Relating to limitations on the use of public money under certain economic development agreements or programs adopted by certain political subdivisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2023-05-04 - Referred to Ways & Means [SB1419 Detail]
Download: Texas-2023-SB1419-Engrossed.html
| By: Birdwell | S.B. No. 1419 | |
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| 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. Chapter 380, Local Government Code, is amended | ||
| by adding Sections 380.005, 380.006, 380.007, and 380.008 to read | ||
| as follows: | ||
| Sec. 380.005. LIMITATION ON TAX ABATEMENTS UNDER THIS | ||
| CHAPTER. (a) A municipality may not grant a tax abatement or enter | ||
| into a tax abatement agreement under this chapter. | ||
| (b) This section does not limit the authority of a | ||
| municipality to make a loan or grant under this chapter: | ||
| (1) to a recipient who enters into a tax abatement | ||
| agreement with the municipality under Chapter 312, Tax Code; or | ||
| (2) in conjunction with a tax abatement agreement | ||
| entered into by the municipality under Chapter 312, Tax Code. | ||
| 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). | ||
| Sec. 380.007. PERFORMANCE METRICS REQUIREMENT. (a) An | ||
| agreement for a loan or grant under this chapter must include | ||
| appropriate performance metrics relating to the goals of an | ||
| economic development program established under this chapter. | ||
| (b) An agreement for a loan or grant under this chapter may | ||
| not be renewed under Section 380.008(b) unless the municipality | ||
| determines that the performance metrics under the agreement have | ||
| been met. | ||
| Sec. 380.008. PERIOD OF AGREEMENT; RENEWAL. (a) Except as | ||
| otherwise provided by this section, a municipality may not enter | ||
| into an agreement to make a loan or grant under this chapter for a | ||
| period exceeding 10 years. | ||
| (b) A municipality may, subject to Section 380.007(b), | ||
| renew an agreement under this chapter. An agreement may be renewed | ||
| no more than three times, and each renewal period may not exceed | ||
| five years. | ||
| (c) The total combined period for an agreement under this | ||
| chapter, including the initial agreement and renewal periods, may | ||
| not exceed 25 years. | ||
| SECTION 2. Chapter 381, Local Government Code, is amended | ||
| by adding Sections 381.006, 381.007, 381.008, and 381.009 to read | ||
| as follows: | ||
| Sec. 381.006. LIMITATION ON TAX ABATEMENTS UNDER THIS | ||
| CHAPTER. (a) A county may not grant a tax abatement or enter into a | ||
| tax abatement agreement under this chapter. | ||
| (b) This section does not limit the authority of a county: | ||
| (1) to make a loan or grant of county money under this | ||
| chapter to a recipient who enters into a tax abatement agreement | ||
| with the county under Chapter 312, Tax Code; or | ||
| (2) to use county money for a purpose authorized by | ||
| this chapter in conjunction with a tax abatement agreement entered | ||
| into by the county under Chapter 312, Tax Code. | ||
| 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). | ||
| Sec. 381.008. PERFORMANCE METRICS REQUIREMENT. (a) An | ||
| agreement relating to the use of county money under this chapter | ||
| must include appropriate performance metrics relating to the goals | ||
| of an economic development program established under this chapter. | ||
| (b) An agreement under this chapter may not be renewed under | ||
| Section 381.009(b) unless the county determines that the | ||
| performance metrics under the agreement have been met. | ||
| Sec. 381.009. PERIOD OF AGREEMENT; RENEWAL. (a) Except as | ||
| otherwise provided by this section, a county may not enter into an | ||
| agreement to make a loan or grant under this chapter for a period | ||
| exceeding 10 years. | ||
| (b) A county may, subject to Section 381.008(b), renew an | ||
| agreement under this chapter. An agreement may be renewed no more | ||
| than three times, and each renewal period may not exceed five years. | ||
| (c) The total combined period for an agreement under this | ||
| chapter, including the initial agreement and renewal periods, may | ||
| not exceed 25 years. | ||
| SECTION 3. 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 4. 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 [ |
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| (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 5. 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 6. This Act takes effect September 1, 2023. | ||
