By Homer                                               H.B. No. 282
         77R915 ATP-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the sale of assets of certain economic development
 1-3     corporations.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 4B, Development Corporation Act of 1979
 1-6     (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
 1-7     adding Subsection (p) to read as follows:
 1-8           (p)  A corporation may not sell an asset owned by the
 1-9     corporation for less than the amount that the corporation has
1-10     invested in the asset to a  business enterprise that has not
1-11     previously done business within the boundaries of the city that
1-12     created the corporation and that would directly compete with an
1-13     existing business within the boundaries of the city that created
1-14     the corporation.  A sale in violation of this subsection is void.
1-15           SECTION 2. This Act takes effect September 1, 2001.