77R12971 E By Solis, Homer, Edwards H.B. No. 3178 Substitute the following for H.B. No. 3178: By McClendon C.S.H.B. No. 3178 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.