By Ramsay                                             H.B. No. 1706
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the management and powers of and collection of taxes
    1-3  for certain industrial development corporations.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 4B, Development Corporation Act of 1979
    1-6  (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
    1-7  amending Subsection (c) and adding Subsection (o) to read as
    1-8  follows:
    1-9        (c)  The board of directors of a corporation under this
   1-10  section consists of seven directors who are appointed by the
   1-11  governing body of the eligible city for two-year terms of office.
   1-12  A director may be removed by the governing body of the eligible
   1-13  city at any time without cause.  Each director must be a resident
   1-14  of or owner of real property located in the eligible city.  Three
   1-15  directors shall be persons who are not employees, officers, or
   1-16  members of the governing body of the eligible city.  A majority of
   1-17  the entire membership of the board is a quorum.  The board shall
   1-18  conduct all meetings within the boundaries of the eligible city.
   1-19  The board shall appoint a president, a secretary, and other
   1-20  officers of the corporation that the governing body of the eligible
   1-21  city considers necessary.  The corporation's registered agent must
   1-22  be an individual resident of the state and the corporation's
   1-23  registered office must be within the boundaries of the eligible
   1-24  city.
    2-1        (o)  A corporation created under this section may spend
    2-2  corporate revenues for promotional purposes and may contract with
    2-3  other existing private corporations to carry out industrial
    2-4  development programs consistent with the purposes and duties as set
    2-5  out in this Act.
    2-6        SECTION 2.  All actions and procedures of a municipality in
    2-7  calling an industrial sales tax election on December 6, 1994, under
    2-8  authority of Section 4B, Development Corporation Act of 1979
    2-9  (Article 5190.6, Vernon's Texas Civil Statutes), declaring the
   2-10  results thereof, or declaring the purpose for which bond proceeds
   2-11  and sales tax proceeds may be used are validated as of that date.
   2-12        SECTION 3.  Notwithstanding Section 4B(i), Development
   2-13  Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
   2-14  Statutes), a corporation created under Section 4B of that Act for
   2-15  which taxes are being collected under Section 4B on the effective
   2-16  date of this Act may continue to collect the tax until September 1,
   2-17  1997.
   2-18        SECTION 4.  The importance of this legislation and the
   2-19  crowded condition of the calendars in both houses create an
   2-20  emergency and an imperative public necessity that the
   2-21  constitutional rule requiring bills to be read on three several
   2-22  days in each house be suspended, and this rule is hereby suspended,
   2-23  and that this Act take effect and be in force from and after its
   2-24  passage, and it is so enacted.