Relating to limitations on the use of public money under certain economic development agreements or programs adopted by certain political subdivisions.
What changed between versions
New sections 380.005-380.009 and 381.006-381.010 establish comprehensive rules for public loans and grants, including prohibitions on ad valorem tax relief except in specific circumstances.
Mandatory public hearings must be held before any municipality or county makes a loan or grant, with public notice containing specific details about the recipient and project purpose.
Websites must post proposed loan or grant information, and public notices must be given 15-30 business days before meetings.
Performance metrics must be included in all loan or grant agreements to track whether economic development goals are being met.
Agreements cannot exceed 10 years initially, can be renewed up to three times for five years each, but total duration cannot exceed 25 years.
Proprietary information about business processes and equipment is confidential until the agreement is executed.
New Section 312.009 limits tax abatement agreements to only ad valorem tax abatements, prohibiting loans or grants from other sources.
The law takes effect September 1, 2025, and only applies to agreements entered into on or after that date.
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