1-1     By:  Keffer, Gallego, Christian                       H.B. No. 1543
 1-2          (Senate Sponsor - Fraser)
 1-3           (In the Senate - Received from the House April 9, 1999;
 1-4     April 12, 1999, read first time and referred to Committee on
 1-5     Economic Development; May 13, 1999, reported favorably by the
 1-6     following vote:  Yeas 7, Nays 0; May 13, 1999, sent to printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the residency requirements for directors of certain
1-10     economic development corporations.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Section 4B(c), Development Corporation Act of
1-13     1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
1-14     read as follows:
1-15           (c)  The board of directors of a corporation under this
1-16     section consists of seven directors who are appointed by the
1-17     governing body of the eligible city for two-year terms of office.
1-18     A director may be removed by the governing body of the eligible
1-19     city at any time without cause.  Each director of a corporation
1-20     created by an eligible city with a population of 10,000 or more
1-21     must be a resident of the eligible city.  Each director of a
1-22     corporation created by an eligible city with a population of less
1-23     than 10,000 must be a resident of the eligible city or the county
1-24     in which the major part of the area of the eligible city is
1-25     located. Three directors shall be persons who are not employees,
1-26     officers, or members of the governing body of the eligible city.  A
1-27     majority of the entire membership of the board is a quorum.  The
1-28     board shall conduct all meetings within the boundaries of the
1-29     eligible city.  The board shall appoint a president, a secretary,
1-30     and other officers of the corporation that the governing body of
1-31     the eligible city considers necessary.  The corporation's
1-32     registered agent must be an individual resident of the state and
1-33     the corporation's registered office must be within the boundaries
1-34     of the eligible city.
1-35           SECTION 2.  This Act takes effect September 1, 1999.
1-36           SECTION 3.  The importance of this legislation and the
1-37     crowded condition of the calendars in both houses create an
1-38     emergency and an imperative public necessity that the
1-39     constitutional rule requiring bills to be read on three several
1-40     days in each house be suspended, and this rule is hereby suspended.
1-41                                  * * * * *