HB1844 - Relating to certain requirements applicable to certain municipal economic development programs and grants.

  89R824 DRS-F     By: Guillen H.B. No. 1844       A BILL TO BE ENTITLED   AN ACT   relating to certain requirements applicable to certain municipal   economic development programs and grants.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 380.001, Local Government Code, is   amended by adding Subsections (d) and (e) to read as follows:           (d)     The governing body of a municipality may not establish,   amend, or renew a program under Subsection (a) unless the governing   body has first held a public hearing on the matter at which members   of the public are given the opportunity to be heard.             (e)     A municipality may not make a loan or grant of public   money or provide municipal personnel or services to a person   through a program established under this section unless the   municipality enters into a written agreement with the person. The   agreement must detail the terms and conditions of the loan, grant,   or provision of municipal personnel or services. An agreement with   a for-profit entity must require the creation or retention of jobs   and the making of a capital investment, and must include a schedule   of the jobs to be created or retained and the capital investment to   be made. An agreement must include a requirement that the person   repay to the municipality the cost of any benefit received by the   person from the municipality under the agreement if the person   fails to meet each performance requirement required by the   agreement.          SECTION 2.  Section 380.002, Local Government Code, is   amended by adding Subsection (d) to read as follows:           (d)     A home-rule municipality may not grant public money to   an organization or corporation under this section or through a   program established under this section unless the municipality   complies with the requirements of Sections 380.001(d) and (e).          SECTION 3.  The changes in law made by this Act apply only to   an agreement entered into by a municipality under Section 380.001   or 380.002, Local Government Code, as amended by this Act, on or   after the effective date of this Act.          SECTION 4.  This Act takes effect September 1, 2025.