Sec. 501.007. LENDING CREDIT OR GRANTING PUBLIC MONEY. (a) Except as provided by Subsection (b), a unit may not lend its credit or grant public money or another thing of value in aid of a corporation.
(b) A municipality may grant public money to a corporation under a contract authorized by Section 380.002.
(c) The grants, loans, expenditures, and tax exemptions authorized by this subtitle in connection with a project and authorized by a corporation in accordance with this subtitle constitute the making of loans or grants of public money or constitute other actions authorized by Section 52-a, Article III, Texas Constitution.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 15.011(a), eff. September 1, 2009.
Structure Texas Statutes
Title 12 - Planning and Development
Chapter 501 - Provisions Governing Development Corporations
Subchapter A. General Provisions
Section 501.003. Who May Be User
Section 501.004. Legislative Findings; Construction of Subtitle
Section 501.005. Adoption of Alternate Procedure
Section 501.006. Use of Corporation to Finance Project
Section 501.007. Lending Credit or Granting Public Money
Section 501.008. Limitation on Financial Obligation
Section 501.009. Police Powers Not Affected
Section 501.010. Delegation of Unit's Sovereign Powers Prohibited
Section 501.011. Reference to Articles of Incorporation or Certificate of Formation