SB878 - Relating to limitations on the use of public money under certain economic development agreements or programs adopted by certain political subdivisions.

      By: Birdwell S.B. No. 878     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.  Chapter 380, Local Government Code, is amended   by adding Sections 380.005, 380.006, 380.007, 380.008, and 380.009   to read as follows:           Sec.   380.005.     PROHIBITION ON AD VALOREM TAX RELIEF UNDER   THIS CHAPTER. (a) A municipality may not grant an exemption or   other relief from ad valorem taxation under this chapter.           (b)     This section does not limit the authority of a   municipality to:                 (1)  make a loan or grant under this chapter:                         (A)     to a recipient who enters into a tax   abatement agreement with the municipality under Chapter 312, Tax   Code; or                         (B)     in conjunction with a tax abatement agreement   entered into by the municipality under Chapter 312, Tax Code; or                 (2)     use revenue in a tax increment fund created under   Chapter 311, Tax Code, to pay for a project that is part of an   agreement authorized by this chapter.           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.           Sec.   380.009.     CONFIDENTIALITY OF PROPRIETARY INFORMATION.   Information that is provided to a municipality in connection with   an application or request for a loan or grant under this chapter and   that describes the specific processes or business activities to be   conducted or the equipment or other property to be located on the   property for which a loan or grant is sought is confidential and not   subject to public disclosure until the loan or grant agreement is   executed. Information that is in the custody of a municipality   after an agreement has been executed is not confidential under this   section.          SECTION 2.  Chapter 381, Local Government Code, is amended   by adding Sections 381.006, 381.007, 381.008, 381.009, and 381.010   to read as follows:           Sec.   381.006.     PROHIBITION ON AD VALOREM TAX RELIEF UNDER   THIS CHAPTER. (a) A county may not grant an exemption or other   relief from ad valorem taxation under this chapter.           (b)     This section does not limit the authority of a county   to:                   (1)     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;                   (2)     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; or                 (3)     use revenue in a tax increment fund created under   Chapter 311, Tax Code, to pay for a project that is part of an   agreement authorized by this chapter.           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 shall post the current version of the proposed   use of county money under this chapter on the county's Internet   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.           Sec.   381.010.     CONFIDENTIALITY OF PROPRIETARY INFORMATION.   Information that is provided to a county in connection with an   application or request for a loan or grant under this chapter and   that describes the specific processes or business activities to be   conducted or the equipment or other property to be located on the   property for which a loan or grant is sought is confidential and not   subject to public disclosure until the loan or grant agreement is   executed. Information that is in the custody of a county after an   agreement has been executed is not confidential under this section.          SECTION 3.  Subchapter A, Chapter 312, Tax Code, is amended   by adding Section 312.009 to read as follows:           Sec.   312.009.     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 [ 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).           [Text truncated for display. 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