By Solis, Homer, Edwards                              H.B. No. 3178
         77R12971 E                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the requirement that certain persons associated with
 1-3     development corporations complete a training seminar on the
 1-4     operation and administration of development corporations; providing
 1-5     an administrative penalty.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1. Subchapter B, Chapter 481, Government Code, is
 1-8     amended by adding Section 481.0231 to read as follows:
 1-9           Sec. 481.0231.  DEVELOPMENT CORPORATION TRAINING SEMINAR. (a)
1-10     The department, in conjunction with the attorney general and the
1-11     comptroller, shall by rule develop a training seminar to ensure
1-12     that the officers of a corporation created by a municipality or
1-13     county under, and the officials of the municipality or county that
1-14     created a corporation under, the Development Corporation Act of
1-15     1979 (Article 5190.6, Vernon's Texas Civil Statutes) properly and
1-16     legally operate the corporation and administer a tax imposed for
1-17     the benefit of the corporation.
1-18           (b)  The department may include in the seminar any
1-19     information regarding training programs offered by the department,
1-20     the attorney general, or the comptroller that would assist a person
1-21     attending the seminar with the operation and administration of a
1-22     development corporation.
1-23           (c)  The department shall issue a certificate of completion
1-24     to each person who completes the training seminar.
 2-1           (d)  The department shall hold the training seminars in
 2-2     different regions in the state for the convenience of persons
 2-3     required to complete the training seminar under Section 39,
 2-4     Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
 2-5     Civil Statutes).
 2-6           (e)  The department may enter into an agreement for the
 2-7     provision of a training seminar developed under this section by any
 2-8     person determined by the department to be qualified to provide the
 2-9     training seminar.  A person who provides a training seminar under
2-10     this subsection may charge a reasonable fee for attending the
2-11     seminar.
2-12           SECTION 2. The Development Corporation Act of 1979 (Article
2-13     5190.6, Vernon's Texas Civil Statutes) is amended by adding Section
2-14     39 to read as follows:
2-15           Sec. 39. (a)  This section applies only to a corporation
2-16     created under Section 4A or 4B of this Act or an entity that
2-17     creates a corporation under Section 4A or 4B of this Act.
2-18           (b)  At least once in each 24-month period, the following
2-19     persons shall attend a training seminar sponsored by the department
2-20     under Section 481.0231, Government Code:
2-21                 (1)  the city attorney, the city administrator, or the
2-22     city clerk of a city that created a corporation;
2-23                 (2)  the county clerk or the county attorney of a
2-24     county that created a corporation; and
2-25                 (3)  the executive director of the corporation or other
2-26     person who is responsible for the daily administration of the
2-27     corporation.
 3-1           (c)  A corporation shall present proof of compliance with
 3-2     this section to the comptroller by presenting the certificates of
 3-3     completion issued under Section 481.0231, Government Code, for each
 3-4     person that was required to attend the training seminar.  The
 3-5     comptroller may impose an administrative penalty, in an amount not
 3-6     to exceed $1,000 for each violation, against a corporation that
 3-7     fails to present proof in accordance with this section.
 3-8           (d)  A corporation may spend corporate revenue to pay the
 3-9     costs of attending a seminar required by Subsection (b) of this
3-10     section.
3-11           SECTION 3. (a)  The Texas Department of Economic Development
3-12     shall develop the training seminar under Section 481.0231,
3-13     Government Code, as added by this Act, not later than January 1,
3-14     2002.
3-15           (b)  A person who, on the effective date of this Act, is
3-16     required to take a training seminar under Section 39, Development
3-17     Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
3-18     Statutes), as added by this Act, must take a training seminar
3-19     before January 1, 2004.
3-20           SECTION 4. This Act takes effect September 1, 2001.