By Counts H.B. No. 2614
76R10315 WP-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to creation of a county alliance to jointly authorize the
1-3 creation of a development corporation.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2, the Development Corporation Act of
1-6 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
1-7 amending Subdivisions (7)-(14) and adding Subdivision (15) to read
1-8 as follows:
1-9 (7) "County alliance" means two or more counties that
1-10 jointly authorize the creation of a corporation under this Act.
1-11 (8) "District" shall mean a conservation and
1-12 reclamation district established under authority of Article XVI,
1-13 Section 59, of the Texas Constitution.
1-14 (9) [(8)] "Governing body" shall mean the board,
1-15 council, commission, commissioners court, or legislative body of
1-16 the unit.
1-17 (10) [(9)] "Industrial development corporation" shall
1-18 mean a corporation created and existing under the provisions of
1-19 this Act as a constituted authority for the purpose of financing
1-20 one or more projects.
1-21 (11) [(10)] "Project" shall mean the land, buildings,
1-22 equipment, facilities, and improvements (one or more) found by the
1-23 board of directors to be required or suitable for the promotion of
1-24 development and expansion of manufacturing and industrial
2-1 facilities, transportation facilities (including but not limited to
2-2 airports, ports, mass commuting facilities, and parking
2-3 facilities), sewage or solid waste disposal facilities, recycling
2-4 facilities, air or water pollution control facilities, facilities
2-5 for the furnishing of water to the general public, distribution
2-6 centers, and small warehouse facilities capable of serving as
2-7 decentralized storage and distribution centers, and for the
2-8 promotion of development or redevelopment and expansion, including
2-9 costs of administration and operation, of a military base closed or
2-10 realigned pursuant to recommendation of the Defense Closure and
2-11 Realignment Commission pursuant to the Defense Base Closure and
2-12 Realignment Act of 1990 (10 U.S.C. Section 2687 note) as amended,
2-13 and of facilities which are related to any of the foregoing, and in
2-14 furtherance of the public purposes of this Act, all as defined in
2-15 the rules of the department, irrespective of whether in existence
2-16 or required to be identified, acquired, or constructed thereafter.
2-17 As used in this Act, the term "development areas" shall mean any
2-18 area or areas of a city that the city finds and determines, after a
2-19 public hearing, should be developed in order to meet the
2-20 development objectives of the city. In addition, in blighted or
2-21 economically depressed areas, development areas, federally
2-22 designated empowerment zones and enterprise communities designated
2-23 under Section 1391, Internal Revenue Code of 1986, or federally
2-24 assisted new communities located within a home-rule city or a
2-25 federally designated economically depressed county of less than
2-26 50,000 persons according to the last federal decennial census, a
2-27 project may include the land, buildings, equipment, facilities, and
3-1 improvements (one or more) found by the board of directors to be
3-2 required or suitable for the promotion of commercial development
3-3 and expansion and in furtherance of the public purposes of this
3-4 Act, or for use by commercial enterprises, all as defined in the
3-5 rules of the department, irrespective of whether in existence or
3-6 required to be acquired or constructed thereafter. As used in this
3-7 Act, the term blighted or economically depressed areas shall mean
3-8 those areas and areas immediately adjacent thereto within a city
3-9 which by reason of the presence of a substantial number of
3-10 substandard, slum, deteriorated, or deteriorating structures, or
3-11 which suffer from a high relative rate of unemployment, or which
3-12 have been designated and included in a tax incremental district
3-13 created under Chapter 695, Acts of the 66th Legislature, Regular
3-14 Session, 1979 (Article 1066d, Vernon's Texas Civil Statutes), or
3-15 any combination of the foregoing, the city finds and determines,
3-16 after a hearing, substantially impair or arrest the sound growth of
3-17 the city, or constitute an economic or social liability and are a
3-18 menace to the public health, safety, or welfare in their present
3-19 condition and use. The department shall adopt guidelines that
3-20 describe the kinds of areas that may be considered to be blighted
3-21 or economically depressed. The city shall consider these
3-22 guidelines in making its findings and determinations. Notice of
3-23 the hearing at which the city considers establishment of a
3-24 development area or an economically depressed or blighted area
3-25 shall be posted at the city hall before the hearing.
3-26 "Federally assisted new communities" shall mean those
3-27 federally assisted areas which have received or will receive
4-1 assistance in the form of loan guarantees under Title X of the
4-2 National Housing Act and a portion of the federally assisted area
4-3 has received grants under Section 107(a)(1) of the Housing and
4-4 Community Development Act of 1974, as amended.
4-5 (12) [(11)] "Resolution" shall mean the resolution,
4-6 order, ordinance, or other official action by the governing body of
4-7 a unit.
4-8 (13) [(12)] "Unit" shall mean a city, county, or
4-9 district which may create and utilize a corporation.
4-10 (14) [(13)] "Bonds" includes bonds, notes, and other
4-11 evidences of indebtedness.
4-12 (15) [(14)] "User" means an individual, partnership,
4-13 corporation, or any other private entity, whether organized for
4-14 profit or not for profit, or a city, county, district, or any other
4-15 political subdivision, public entity, or agency of the state or
4-16 federal government.
4-17 SECTION 2. The Development Corporation Act of 1979 (Article
4-18 5190.6, Vernon's Texas Civil Statutes) is amended by adding Section
4-19 4D to read as follows:
4-20 Sec. 4D. (a) Two or more counties that are adjacent or are
4-21 in close proximity, as determined by the governing bodies of the
4-22 counties involved, may create a county alliance to authorize the
4-23 creation of a corporation. The county alliance is a single unit
4-24 for the purposes of this Act. The other provisions of this Act
4-25 apply to the county alliance and a corporation authorized by the
4-26 county alliance, except to the extent inconsistent with this
4-27 section or another provision of this Act that is expressly
5-1 applicable to the county alliance or corporation.
5-2 (b) The board of directors of a corporation authorized by a
5-3 county alliance under this section consists of members appointed by
5-4 the commissioners court of each county in the alliance. The board
5-5 consists of three members from each county if the alliance includes
5-6 10 or fewer counties or two members from each county if the
5-7 alliance includes more than 10 counties. A member of the board of
5-8 directors may not serve more than six years and may be removed at
5-9 the will of the appointing county. The member serves without
5-10 compensation but is entitled to reimbursement for expenses incurred
5-11 in the performance of the member's duties.
5-12 (c) A county may become a member of an established county
5-13 alliance that has authorized the creation of a corporation. To
5-14 become a member of an established county alliance:
5-15 (1) the commissioners court of the county wanting to
5-16 join the alliance must petition the board of directors of the
5-17 established county alliance corporation for admission;
5-18 (2) the board of directors of the county alliance
5-19 corporation must approve the admission of the petitioning county;
5-20 (3) the petitioning county must agree to abide by the
5-21 bylaws of the county alliance corporation;
5-22 (4) the petitioning county must pay a fee to the
5-23 county alliance as determined by the county alliance corporation's
5-24 board of directors; and
5-25 (5) the petitioning county must meet any other
5-26 requirements established by the county alliance corporation's board
5-27 of directors.
6-1 (d) If the county alliance corporation's board of directors
6-2 determines that sufficient provisions have been made to pay a
6-3 county alliance corporation's expenses, bonds, and other
6-4 obligations, any net earnings may be distributed among the counties
6-5 in the county alliance as a percentage of the per capita
6-6 contributions made by each of the counties during the existence of
6-7 the corporation.
6-8 (e) A county may leave a county alliance if all of the
6-9 county's obligations and entitlements in relation to the county
6-10 alliance corporation have been properly settled. The departing
6-11 county may not receive any funds, assets, or property of the county
6-12 alliance corporation until the dissolution of the corporation as
6-13 provided under Subsection (f). A county that leaves the county
6-14 alliance is entitled to receive a distribution as provided under
6-15 Subsection (f) that is reduced by one percent for each year the
6-16 corporation operated without the county's membership in the
6-17 alliance.
6-18 (f) On dissolution of a corporation authorized by a county
6-19 alliance, any assets of the corporation remaining after all the
6-20 corporation's obligations have been met shall be distributed among
6-21 the counties in the county alliance as a percentage of the per
6-22 capita contributions made by each of the counties during the
6-23 existence of the corporation subject to Subsection (e).
6-24 (g) A county alliance corporation is not required to
6-25 dissolve because a county leaves the county alliance if at least
6-26 two counties remain in the county alliance.
6-27 SECTION 3. Section 7(b), the Development Corporation Act of
7-1 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
7-2 read as follows:
7-3 (b) A certificate of incorporation together with an original
7-4 of the articles of incorporation affixed thereto by the secretary
7-5 of state shall be delivered to the incorporators or their
7-6 representatives and to the governing body of the unit under whose
7-7 auspices the corporation was created. A certificate of
7-8 incorporation granted to a county alliance corporation and the
7-9 original of the articles of incorporation that is required to be
7-10 delivered under this subsection to the governing body of the county
7-11 alliance under whose auspices the corporation was created shall be
7-12 delivered to the commissioners court of any county in the county
7-13 alliance and that county shall provide photocopies of the
7-14 certificate of incorporation and the articles of incorporation to
7-15 each other member of the county alliance.
7-16 SECTION 4. Section 17, the Development Corporation Act of
7-17 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
7-18 adding Subsection (c) to read as follows:
7-19 (c) An amendment of the articles of incorporation of a
7-20 county alliance corporation may not be adopted under this section
7-21 unless approved by the governing body of each member of the county
7-22 alliance under whose auspices the corporation was created.
7-23 SECTION 5. Section 20(e), the Development Corporation Act of
7-24 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
7-25 read as follows:
7-26 (e) A restated certificate of incorporation together with a
7-27 triplicate original of the restated articles of incorporation
8-1 affixed thereto by the secretary of state shall be delivered to the
8-2 corporation or its representative and to the governing body of the
8-3 unit under whose auspices the corporation was created. A restated
8-4 certificate of incorporation granted to a county alliance
8-5 corporation and the originals of the restated articles of
8-6 incorporation that are required to be delivered under this
8-7 subsection to the governing body of the county alliance under whose
8-8 auspices the corporation was created shall be delivered to the
8-9 commissioners court of any county that is a member of the county
8-10 alliance and that county shall provide photocopies of the
8-11 certificate of incorporation and the articles of incorporation to
8-12 each other member of the county alliance.
8-13 SECTION 6. Section 25(f), the Development Corporation Act of
8-14 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
8-15 read as follows:
8-16 (f) No issue of bonds, including refunding bonds, shall be
8-17 delivered by the corporation without a resolution of the governing
8-18 body adopted no more than 60 days prior to the date of delivery of
8-19 the bonds specifically approving the resolution of the corporation
8-20 providing for the issuance of the bonds. If the corporation is
8-21 authorized by a county alliance, the resolution required by this
8-22 subsection must be adopted by the commissioners courts of at least
8-23 three-fifths of the members of the county alliance.
8-24 SECTION 7. The importance of this legislation and the
8-25 crowded condition of the calendars in both houses create an
8-26 emergency and an imperative public necessity that the
8-27 constitutional rule requiring bills to be read on three several
9-1 days in each house be suspended, and this rule is hereby suspended,
9-2 and that this Act take effect and be in force from and after its
9-3 passage, and it is so enacted.