Hearing first, written contract always. For-profit recipients who miss any target repay the benefit.
The bill puts new strings on city economic development deals under Chapter 380, requiring a public hearing before a city creates, changes or renews such a program. It touches city councils and the businesses and groups that get city loans, grants, staff or services through these programs. Every deal must be a written contract, and for-profit recipients must commit to jobs and capital investment on a schedule and repay the benefit if they miss any performance target.
Labels
Labels: ZOMBIE BILL. Died 2 times: 88R HB 4335 by Rep. Shine (Died in committee) and this bill (Died in committee). Checked against 88R only.BACK FROM THE DEAD. Same text as a bill filed before that died: 88R HB 4335 by Rep. Shine (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.NEVER GOT A HEARING. Filed Jan 14, 2025 and referred to the House Trade, Workforce & Economic Development committee. No public hearing. The bill died.
relating to certain requirements applicable to certain municipal
economic development programs and grants.
WHAT IT DOES
Hearing first, written contract always. For-profit recipients who miss any target repay the benefit.
The bill puts new strings on city economic development deals under Chapter 380, requiring a public hearing before a city creates, changes or renews such a program. It touches city councils and the businesses and groups that get city loans, grants, staff or services through these programs. Every deal must be a written contract, and for-profit recipients must commit to jobs and capital investment on a schedule and repay the benefit if they miss any performance target.
CHARGES
[ ] NONE FOUND
TOTAL
No fiscal note in the loaded record.
HISTORY
Filed
Read first time
Referred to Trade, Workforce & Economic Development
Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.
House committee · Trade, Workforce & Economic Development · Final status: Died in committee
Subjects
City Government--General
Economic & Industrial Development--General
Text
The text as introduced · 347 words
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.