76R8847 WP-D                           
         By Keffer, Gallego, Christian                         H.B. No. 1543
         Substitute the following for H.B. No. 1543:
         By Keffer                                         C.S.H.B. No. 1543
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the residency requirements for directors of certain
 1-3     economic development corporations.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 4B(c), Development Corporation Act of
 1-6     1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
 1-7     read as follows:
 1-8           (c)  The board of directors of a corporation under this
 1-9     section consists of seven directors who are appointed by the
1-10     governing body of the eligible city for two-year terms of office.
1-11     A director may be removed by the governing body of the eligible
1-12     city at any time without cause.  Each director of a corporation
1-13     created by an eligible city with a population of 10,000 or more
1-14     must be a resident of the eligible city.  Each director of a
1-15     corporation created by an eligible city with a population of less
1-16     than 10,000 must be a resident of the eligible city or the county
1-17     in which the major part of the area of the eligible city is
1-18     located. Three directors shall be persons who are not employees,
1-19     officers, or members of the governing body of the eligible city.  A
1-20     majority of the entire membership of the board is a quorum.  The
1-21     board shall conduct all meetings within the boundaries of the
1-22     eligible city.  The board shall appoint a president, a secretary,
1-23     and other officers of the corporation that the governing body of
1-24     the eligible city considers necessary.  The corporation's
 2-1     registered agent must be an individual resident of the state and
 2-2     the corporation's registered office must be within the boundaries
 2-3     of the eligible city.
 2-4           SECTION 2.  This Act takes effect September 1, 1999.
 2-5           SECTION 3.  The importance of this legislation and the
 2-6     crowded condition of the calendars in both houses create an
 2-7     emergency and an imperative public necessity that the
 2-8     constitutional rule requiring bills to be read on three several
 2-9     days in each house be suspended, and this rule is hereby suspended.