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.