HB 1844

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
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.