74R10667 DWS-D
          By De La Garza                                        H.B. No. 2887
          Substitute the following for H.B. No. 2887:
          By Oliveira                                       C.S.H.B. No. 2887
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the powers and duties of certain industrial development
    1-3  corporations created by cities.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  The Development Corporation Act of 1979 (Article
    1-6  5190.6, Vernon's Texas Civil Statutes) is amended by adding Section
    1-7  4C to read as follows:
    1-8        Sec. 4C.  CONVERSION OF CERTAIN CORPORATIONS.  (a)  A city
    1-9  that has created a corporation under Section 4A of this Act may,
   1-10  with the approval of the corporation, call and hold an election on
   1-11  whether to convert the corporation to a corporation governed by
   1-12  Section 4B of this Act.  On receipt by the city of a petition from
   1-13  more than 10 percent of the registered voters of the city
   1-14  requesting an election on the issue, the commission and the
   1-15  corporation shall formally consider whether to hold the election.
   1-16        (b)  Before holding the election, the city and corporation
   1-17  jointly shall hold at least three public hearings on the issue.
   1-18        (c)  City funds, taxes imposed under this Act, and interest
   1-19  on those taxes may not be used to finance a campaign for or against
   1-20  the conversion.  On violation of this subsection, an election
   1-21  approving the conversion is void.
   1-22        (d)  Before the election, taxes imposed under this Act and
   1-23  interest on those taxes may not be used to study the feasibility of
    2-1  or plan a project the undertaking of which is contingent on the
    2-2  conversion.
    2-3        (e)  An employee of the city or corporation may not campaign
    2-4  for or against the conversion during the employee's hours of
    2-5  employment.
    2-6        (f)  If a majority of votes cast on the question at the
    2-7  election is in favor of the conversion, the corporation and city
    2-8  have all the powers and duties of a corporation and creating city
    2-9  under Section 4B of this Act.  Not later than the 90th day after
   2-10  the date of the election, the articles of incorporation of the
   2-11  corporation shall be amended to state that the corporation is
   2-12  governed by Section 4B of this Act and the board of directors of
   2-13  the corporation shall be conformed to the requirements for a board
   2-14  of directors under Section 4B of this Act.
   2-15        (g)  If a majority of votes cast on the question at the
   2-16  election is against conversion, the corporation continues to exist
   2-17  as a corporation governed by Section 4A of this Act as if the
   2-18  election had not been held.
   2-19        (h)  A city may not hold more than one election under this
   2-20  section.
   2-21        (i)  This section expires January 1, 1997.
   2-22        SECTION 2.  The importance of this legislation and the
   2-23  crowded condition of the calendars in both houses create an
   2-24  emergency and an imperative public necessity that the
   2-25  constitutional rule requiring bills to be read on three several
    3-1  days in each house be suspended, and this rule is hereby suspended,
    3-2  and that this Act take effect and be in force from and after its
    3-3  passage, and it is so enacted.