CHAPTER 380. MISCELLANEOUS PROVISIONS RELATING TO MUNICIPAL PLANNING AND DEVELOPMENT

LOCAL GOVERNMENT CODE

TITLE 12. PLANNING AND DEVELOPMENT

SUBTITLE A. MUNICIPAL PLANNING AND DEVELOPMENT

CHAPTER 380. MISCELLANEOUS PROVISIONS RELATING TO MUNICIPAL

PLANNING AND DEVELOPMENT

Sec. 380.001. ECONOMIC DEVELOPMENT PROGRAMS. (a) The governing

body of a municipality may establish and provide for the

administration of one or more programs, including programs for

making loans and grants of public money and providing personnel

and services of the municipality, to promote state or local

economic development and to stimulate business and commercial

activity in the municipality. For purposes of this subsection, a

municipality includes an area that:

(1) has been annexed by the municipality for limited purposes;

or

(2) is in the extraterritorial jurisdiction of the municipality.

(b) The governing body may:

(1) administer a program by the use of municipal personnel;

(2) contract with the federal government, the state, a political

subdivision of the state, a nonprofit organization, or any other

entity for the administration of a program; and

(3) accept contributions, gifts, or other resources to develop

and administer a program.

(c) Any city along the Texas-Mexico border with a population of

more than 500,000 may establish not-for-profit corporations and

cooperative associations for the purpose of creating and

developing an intermodal transportation hub to stimulate economic

development. Such intermodal hub may also function as an

international intermodal transportation center and may be

colocated with or near local, state, or federal facilities and

facilities of Mexico in order to fulfill its purpose.

Added by Acts 1989, 71st Leg., ch. 555, Sec. 1, eff. June 14,

1989. Amended by Acts 1999, 76th Leg., ch. 593, Sec. 1, eff.

Sept. 1, 1999.

Amended by:

Acts 2005, 79th Leg., Ch.

57, Sec. 1, eff. May 17, 2005.

Sec. 380.002. ECONOMIC DEVELOPMENT GRANTS BY CERTAIN

MUNICIPALITIES. (a) A home-rule municipality with a population

of more than 100,000 may create programs for the grant of public

money to any organization exempt from taxation under Section

501(a) of the Internal Revenue Code of 1986 as an organization

described in Section 501(c)(3) of that code for the public

purposes of development and diversification of the economy of the

state, elimination of unemployment or underemployment in the

state, and development or expansion of commerce in the state. The

grants must be in furtherance of those public purposes and shall

be used by the recipient as determined by the recipient's

governing board for programs found by the municipality to be in

furtherance of this section and under conditions prescribed by

the municipality.

(b) A home-rule municipality may, under a contract with a

development corporation created by the municipality under the

Development Corporation Act (Subtitle C1, Title 12), grant public

money to the corporation. The development corporation shall use

the grant money for the development and diversification of the

economy of the state, elimination of unemployment or

underemployment in the state, and development and expansion of

commerce in the state.

(c) The funds granted by the municipality under this section

shall be derived from any source lawfully available to the

municipality under its charter or other law, other than from the

proceeds of bonds or other obligations of the municipality

payable from ad valorem taxes.

Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.06(a), eff. Aug.

26, 1991. Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 4, Sec.

25.02, eff. Aug. 22, 1991; Acts 2001, 77th Leg., ch. 56, Sec. 1,

eff. Sept. 1, 2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 3.26, eff. April 1, 2009.

Sec. 380.003. APPLICATION FOR MATCHING FUNDS FROM FEDERAL

GOVERNMENT. A municipality may, as an agency of the state,

provide matching funds for a federal program that requires local

matching funds from a state agency to the extent state agencies

that are eligible decline to participate or do not fully

participate in the program.

Added by Acts 1995, 74th Leg., ch. 1051, Sec. 1, eff. June 17,

1995.