By: Martinez Fischer	H.B. No. 4940

	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.