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Bill would require public meetings, time limits on some local economic development agreements

2663793 · March 17, 2025
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Summary

Senate Bill 878 would add public‑meeting notice and time limits to agreements authorized under chapters 380 and 381 of the Local Government Code; proponents framed it as transparency and guardrails, while economic development groups and local officials warned of competitiveness and flexibility losses.

Senate Bill 878, described as a follow‑up to prior interim study work, would require public meetings and specified notice periods for economic development agreements under chapters 380 (cities) and 381 (counties) of the Local Government Code, and would impose time limits on those agreements with a default initial term of 10 years and up to three renewals of five years each for a total potential 25‑year term. The bill would also exclude ad valorem (property tax) abatements from chapters 380 and 381 so those abatements could remain subject to chapter 312 (and related statutes) processes.

Author Senator Birdwell said the broad authority in chapters 380 and 381 has sometimes produced…

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