1-1 By: Counts (Senate Sponsor - Fraser) H.B. No. 2614
1-2 (In the Senate - Received from the House April 29, 1999;
1-3 April 30, 1999, read first time and referred to Committee on
1-4 Economic Development; May 13, 1999, reported favorably by the
1-5 following vote: Yeas 6, Nays 0; May 13, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to creation of a county alliance to jointly authorize the
1-9 creation of a development corporation.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 2, the Development Corporation Act of
1-12 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
1-13 amending Subdivisions (7)-(14) and adding Subdivision (15) to read
1-14 as follows:
1-15 (7) "County alliance" means two or more counties that
1-16 jointly authorize the creation of a corporation under this Act.
1-17 (8) "District" shall mean a conservation and
1-18 reclamation district established under authority of Article XVI,
1-19 Section 59, of the Texas Constitution.
1-20 (9) [(8)] "Governing body" shall mean the board,
1-21 council, commission, commissioners court, or legislative body of
1-22 the unit.
1-23 (10) [(9)] "Industrial development corporation" shall
1-24 mean a corporation created and existing under the provisions of
1-25 this Act as a constituted authority for the purpose of financing
1-26 one or more projects.
1-27 (11) [(10)] "Project" shall mean the land, buildings,
1-28 equipment, facilities, and improvements (one or more) found by the
1-29 board of directors to be required or suitable for the promotion of
1-30 development and expansion of manufacturing and industrial
1-31 facilities, transportation facilities (including but not limited to
1-32 airports, ports, mass commuting facilities, and parking
1-33 facilities), sewage or solid waste disposal facilities, recycling
1-34 facilities, air or water pollution control facilities, facilities
1-35 for the furnishing of water to the general public, distribution
1-36 centers, and small warehouse facilities capable of serving as
1-37 decentralized storage and distribution centers, and for the
1-38 promotion of development or redevelopment and expansion, including
1-39 costs of administration and operation, of a military base closed or
1-40 realigned pursuant to recommendation of the Defense Closure and
1-41 Realignment Commission pursuant to the Defense Base Closure and
1-42 Realignment Act of 1990 (10 U.S.C. Section 2687 note) as amended,
1-43 and of facilities which are related to any of the foregoing, and in
1-44 furtherance of the public purposes of this Act, all as defined in
1-45 the rules of the department, irrespective of whether in existence
1-46 or required to be identified, acquired, or constructed thereafter.
1-47 As used in this Act, the term "development areas" shall mean any
1-48 area or areas of a city that the city finds and determines, after a
1-49 public hearing, should be developed in order to meet the
1-50 development objectives of the city. In addition, in blighted or
1-51 economically depressed areas, development areas, federally
1-52 designated empowerment zones and enterprise communities designated
1-53 under Section 1391, Internal Revenue Code of 1986, or federally
1-54 assisted new communities located within a home-rule city or a
1-55 federally designated economically depressed county of less than
1-56 50,000 persons according to the last federal decennial census, a
1-57 project may include the land, buildings, equipment, facilities, and
1-58 improvements (one or more) found by the board of directors to be
1-59 required or suitable for the promotion of commercial development
1-60 and expansion and in furtherance of the public purposes of this
1-61 Act, or for use by commercial enterprises, all as defined in the
1-62 rules of the department, irrespective of whether in existence or
1-63 required to be acquired or constructed thereafter. As used in this
1-64 Act, the term blighted or economically depressed areas shall mean
2-1 those areas and areas immediately adjacent thereto within a city
2-2 which by reason of the presence of a substantial number of
2-3 substandard, slum, deteriorated, or deteriorating structures, or
2-4 which suffer from a high relative rate of unemployment, or which
2-5 have been designated and included in a tax incremental district
2-6 created under Chapter 695, Acts of the 66th Legislature, Regular
2-7 Session, 1979 (Article 1066d, Vernon's Texas Civil Statutes), or
2-8 any combination of the foregoing, the city finds and determines,
2-9 after a hearing, substantially impair or arrest the sound growth of
2-10 the city, or constitute an economic or social liability and are a
2-11 menace to the public health, safety, or welfare in their present
2-12 condition and use. The department shall adopt guidelines that
2-13 describe the kinds of areas that may be considered to be blighted
2-14 or economically depressed. The city shall consider these
2-15 guidelines in making its findings and determinations. Notice of
2-16 the hearing at which the city considers establishment of a
2-17 development area or an economically depressed or blighted area
2-18 shall be posted at the city hall before the hearing.
2-19 "Federally assisted new communities" shall mean those
2-20 federally assisted areas which have received or will receive
2-21 assistance in the form of loan guarantees under Title X of the
2-22 National Housing Act and a portion of the federally assisted area
2-23 has received grants under Section 107(a)(1) of the Housing and
2-24 Community Development Act of 1974, as amended.
2-25 (12) [(11)] "Resolution" shall mean the resolution,
2-26 order, ordinance, or other official action by the governing body of
2-27 a unit.
2-28 (13) [(12)] "Unit" shall mean a city, county, or
2-29 district which may create and utilize a corporation.
2-30 (14) [(13)] "Bonds" includes bonds, notes, and other
2-31 evidences of indebtedness.
2-32 (15) [(14)] "User" means an individual, partnership,
2-33 corporation, or any other private entity, whether organized for
2-34 profit or not for profit, or a city, county, district, or any other
2-35 political subdivision, public entity, or agency of the state or
2-36 federal government.
2-37 SECTION 2. The Development Corporation Act of 1979 (Article
2-38 5190.6, Vernon's Texas Civil Statutes) is amended by adding Section
2-39 4D to read as follows:
2-40 Sec. 4D. (a) Two or more counties that are adjacent or are
2-41 in close proximity, as determined by the governing bodies of the
2-42 counties involved, may create a county alliance to authorize the
2-43 creation of a corporation. The county alliance is a single unit
2-44 for the purposes of this Act. The other provisions of this Act
2-45 apply to the county alliance and a corporation authorized by the
2-46 county alliance, except to the extent inconsistent with this
2-47 section or another provision of this Act that is expressly
2-48 applicable to the county alliance or corporation.
2-49 (b) The board of directors of a corporation authorized by a
2-50 county alliance under this section consists of members appointed by
2-51 the commissioners court of each county in the alliance. The board
2-52 consists of three members from each county if the alliance includes
2-53 10 or fewer counties or two members from each county if the
2-54 alliance includes more than 10 counties. A member of the board of
2-55 directors may not serve more than six years and may be removed at
2-56 the will of the appointing county. The member serves without
2-57 compensation but is entitled to reimbursement for expenses incurred
2-58 in the performance of the member's duties.
2-59 (c) A county may become a member of an established county
2-60 alliance that has authorized the creation of a corporation. To
2-61 become a member of an established county alliance:
2-62 (1) the commissioners court of the county wanting to
2-63 join the alliance must petition the board of directors of the
2-64 established county alliance corporation for admission;
2-65 (2) the board of directors of the county alliance
2-66 corporation must approve the admission of the petitioning county;
2-67 (3) the petitioning county must agree to abide by the
2-68 bylaws of the county alliance corporation;
2-69 (4) the petitioning county must pay a fee to the
3-1 county alliance as determined by the county alliance corporation's
3-2 board of directors; and
3-3 (5) the petitioning county must meet any other
3-4 requirements established by the county alliance corporation's board
3-5 of directors.
3-6 (d) If the county alliance corporation's board of directors
3-7 determines that sufficient provisions have been made to pay a
3-8 county alliance corporation's expenses, bonds, and other
3-9 obligations, any net earnings may be distributed among the counties
3-10 in the county alliance as a percentage of the per capita
3-11 contributions made by each of the counties during the existence of
3-12 the corporation.
3-13 (e) A county may leave a county alliance if all of the
3-14 county's obligations and entitlements in relation to the county
3-15 alliance corporation have been properly settled. The departing
3-16 county may not receive any funds, assets, or property of the county
3-17 alliance corporation until the dissolution of the corporation as
3-18 provided under Subsection (f). A county that leaves the county
3-19 alliance is entitled to receive a distribution as provided under
3-20 Subsection (f) that is reduced by one percent for each year the
3-21 corporation operated without the county's membership in the
3-22 alliance.
3-23 (f) On dissolution of a corporation authorized by a county
3-24 alliance, any assets of the corporation remaining after all the
3-25 corporation's obligations have been met shall be distributed among
3-26 the counties in the county alliance as a percentage of the per
3-27 capita contributions made by each of the counties during the
3-28 existence of the corporation subject to Subsection (e).
3-29 (g) A county alliance corporation is not required to
3-30 dissolve because a county leaves the county alliance if at least
3-31 two counties remain in the county alliance.
3-32 SECTION 3. Section 7(b), the Development Corporation Act of
3-33 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
3-34 read as follows:
3-35 (b) A certificate of incorporation together with an original
3-36 of the articles of incorporation affixed thereto by the secretary
3-37 of state shall be delivered to the incorporators or their
3-38 representatives and to the governing body of the unit under whose
3-39 auspices the corporation was created. A certificate of
3-40 incorporation granted to a county alliance corporation and the
3-41 original of the articles of incorporation that is required to be
3-42 delivered under this subsection to the governing body of the county
3-43 alliance under whose auspices the corporation was created shall be
3-44 delivered to the commissioners court of any county in the county
3-45 alliance and that county shall provide photocopies of the
3-46 certificate of incorporation and the articles of incorporation to
3-47 each other member of the county alliance.
3-48 SECTION 4. Section 17, the Development Corporation Act of
3-49 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
3-50 adding Subsection (c) to read as follows:
3-51 (c) An amendment of the articles of incorporation of a
3-52 county alliance corporation may not be adopted under this section
3-53 unless approved by the governing body of each member of the county
3-54 alliance under whose auspices the corporation was created.
3-55 SECTION 5. Section 20(e), the Development Corporation Act of
3-56 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
3-57 read as follows:
3-58 (e) A restated certificate of incorporation together with a
3-59 triplicate original of the restated articles of incorporation
3-60 affixed thereto by the secretary of state shall be delivered to the
3-61 corporation or its representative and to the governing body of the
3-62 unit under whose auspices the corporation was created. A restated
3-63 certificate of incorporation granted to a county alliance
3-64 corporation and the originals of the restated articles of
3-65 incorporation that are required to be delivered under this
3-66 subsection to the governing body of the county alliance under whose
3-67 auspices the corporation was created shall be delivered to the
3-68 commissioners court of any county that is a member of the county
3-69 alliance and that county shall provide photocopies of the
4-1 certificate of incorporation and the articles of incorporation to
4-2 each other member of the county alliance.
4-3 SECTION 6. Section 25(f), the Development Corporation Act of
4-4 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
4-5 read as follows:
4-6 (f) No issue of bonds, including refunding bonds, shall be
4-7 delivered by the corporation without a resolution of the governing
4-8 body adopted no more than 60 days prior to the date of delivery of
4-9 the bonds specifically approving the resolution of the corporation
4-10 providing for the issuance of the bonds. If the corporation is
4-11 authorized by a county alliance, the resolution required by this
4-12 subsection must be adopted by the commissioners courts of at least
4-13 three-fifths of the members of the county alliance.
4-14 SECTION 7. The importance of this legislation and the
4-15 crowded condition of the calendars in both houses create an
4-16 emergency and an imperative public necessity that the
4-17 constitutional rule requiring bills to be read on three several
4-18 days in each house be suspended, and this rule is hereby suspended,
4-19 and that this Act take effect and be in force from and after its
4-20 passage, and it is so enacted.
4-21 * * * * *