González Bill Lets Anyone Petition To End City Incentive Deals

The text as introduced · 1,016 words

90R7179 MP-D

By: González of El Paso
H.B. No. 1092

A BILL TO BE ENTITLED

AN ACT

relating to the effects of demonstrable harm on proposed or

existing contracts entered into by municipalities and counties

under certain economic development programs.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 380, Local Government Code, is amended

by adding Section 380.005 to read as follows:

Sec. 380.005. DEMONSTRABLE HARM; MEDIATION. (a) In this

section, "demonstrable harm" means an adverse effect:

(1) attributable to a proposed or existing contract as

determined by:

(A) a review from:

(i) the Texas Commission on Environmental

Quality;

(ii) the Texas Water Development Board;

(iii) the Public Utility Commission;

(iv) local water districts or public health

entities; or

(v) another relevant entity; or

(B) the governing body of a municipality after a

public hearing on the proposed or existing contract; and

(2) on:

(A) public health;

(B) environmental or animal welfare;

(C) water quality or pressure;

(D) tax rates or utility rates;

(E) noise; or

(F) another similar issue as determined by the

governing body of a municipality.

(b) A municipality must include in an agreement authorized

by this chapter a provision requiring the agreement parties to

enter into mediation in accordance with this section.

(c) A person, including a state agency, may submit a

petition to the governing body of a municipality in the form and

manner prescribed by the governing body stating that a contract

proposed to be entered into under this chapter will cause or an

existing contract entered into under this chapter has caused

demonstrable harm, as evidenced by documentation of a review

described by Subsection (a)(1). The governing body may, and if the

governing body receives reasonable petitions from at least three

different persons must, require the parties to the proposed

contract or existing contract to enter into mediation in accordance

with this section.

(d) Mediation entered into under this section must:

(1) begin not later than the 60th day after the date

the governing body of a municipality receives a petition that

triggered the mediation; and

(2) be led by an attorney representing the

municipality.

(e) Except as provided by Subsection (f), parties to

mediation entered into under this section shall attempt to resolve

the demonstrable harm that is the subject of the mediation not later

than the 180th day after the date mediation began. If the parties

agree to a resolution to address the harm, the parties shall amend

the proposed contract or existing contract accordingly. If the

parties cannot agree on a resolution to address the harm:

(1) for a proposed contract, the parties may not enter

into the contract; or

(2) for an existing contract, the contract terminates

on the first day of the municipality's subsequent fiscal year.

(f) A party to mediation entered into under this section may

request an extension of the mediation deadline by submitting a

written report of the reasons for the extension to the governing

body of a municipality. The governing body may grant a 30-day

extension after receiving the report.

SECTION 2. Chapter 381, Local Government Code, is amended

by adding Section 381.006 to read as follows:

Sec. 381.006. DEMONSTRABLE HARM; MEDIATION. (a) In this

section, "demonstrable harm" means an adverse effect:

(1) attributable to a proposed or existing contract as

determined by:

(A) a review from:

(i) the Texas Commission on Environmental

Quality;

(ii) the Texas Water Development Board;

(iii) the Public Utility Commission;

(iv) local water districts or public health

entities; or

(v) another relevant entity; or

(B) the commissioners court of a county after a

public hearing on the proposed or existing contract; and

(2) on:

(A) public health;

(B) environmental or animal welfare;

(C) water quality or pressure;

(D) tax rates or utility rates;

(E) noise; or

(F) another similar issue as determined by the

commissioners court of a county.

(b) A county must include in an agreement authorized by this

chapter a provision requiring the agreement parties to enter into

mediation in accordance with this section.

(c) A person, including a state agency, may submit a

petition to the commissioners court of a county in the form and

manner prescribed by the commissioners court stating that a

contract proposed to be entered into under this chapter will cause

or an existing contract entered into under this chapter has caused

demonstrable harm, as evidenced by documentation of a review

described by Subsection (a)(1). The commissioners court may, and

if the commissioners court receives reasonable petitions from at

least three different persons must, require the parties to the

proposed contract or existing contract to enter into mediation in

accordance with this section.

(d) Mediation entered into under this section must:

(1) begin not later than the 60th day after the date

the commissioners court of a county receives a petition that

triggered the mediation; and

(2) be led by an attorney representing the county.

(e) Except as provided by Subsection (f), parties to

mediation entered into under this section shall attempt to resolve

the demonstrable harm that is the subject of the mediation not later

than the 180th day after the date mediation began. If the parties

agree to a resolution to address the harm, the parties shall amend

the proposed contract or existing contract accordingly. If the

parties cannot agree on a resolution to address the harm:

(1) for a proposed contract, the parties may not enter

into the contract; or

(2) for an existing contract, the contract terminates

on the first day of the county's subsequent fiscal year.

(f) A party to mediation entered into under this section may

request an extension of the mediation deadline by submitting a

written report of the reasons for the extension to the

commissioners court of a county. The commissioners court may grant

a 30-day extension after receiving the report.

SECTION 3. Sections 380.005 and 381.006, Local Government

Code, as added by this Act, apply only to a contract or agreement

entered into or renewed on or after the effective date of this Act.

SECTION 4. This Act takes effect September 1, 2027.