1-1     By:  Solis, Homer, Edwards                            H.B. No. 3178
 1-2          (Senate Sponsor - Shapleigh)
 1-3           (In the Senate - Received from the House May 7, 2001;
 1-4     May 7, 2001, read first time and referred to Committee on Business
 1-5     and Commerce; May 10, 2001, reported favorably by the following
 1-6     vote:  Yeas 6, Nays 0; May 10, 2001, sent to printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the requirement that certain persons associated with
1-10     development corporations complete a training seminar on the
1-11     operation and administration of development corporations; providing
1-12     an administrative penalty.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1. Subchapter B, Chapter 481, Government Code, is
1-15     amended by adding Section 481.0231 to read as follows:
1-16           Sec. 481.0231.  DEVELOPMENT CORPORATION TRAINING SEMINAR. (a)
1-17     The department, in conjunction with the attorney general and the
1-18     comptroller, shall by rule develop a training seminar to ensure
1-19     that the officers of a corporation created by a municipality or
1-20     county under, and the officials of the municipality or county that
1-21     created a corporation under, the Development Corporation Act of
1-22     1979 (Article 5190.6, Vernon's Texas Civil Statutes) properly and
1-23     legally operate the corporation and administer a tax imposed for
1-24     the benefit of the corporation.
1-25           (b)  The department may include in the seminar any
1-26     information regarding training programs offered by the department,
1-27     the attorney general, or the comptroller that would assist a person
1-28     attending the seminar with the operation and administration of a
1-29     development corporation.
1-30           (c)  The department shall issue a certificate of completion
1-31     to each person who completes the training seminar.
1-32           (d)  The department shall hold the training seminars in
1-33     different regions in the state for the convenience of persons
1-34     required to complete the training seminar under Section 39,
1-35     Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
1-36     Civil Statutes).
1-37           (e)  The department may enter into an agreement for the
1-38     provision of a training seminar developed under this section by any
1-39     person determined by the department to be qualified to provide the
1-40     training seminar.  A person who provides a training seminar under
1-41     this subsection may charge a reasonable fee for attending the
1-42     seminar.
1-43           SECTION 2. The Development Corporation Act of 1979 (Article
1-44     5190.6, Vernon's Texas Civil Statutes) is amended by adding Section
1-45     39 to read as follows:
1-46           Sec. 39. (a)  This section applies only to a corporation
1-47     created under Section 4A or 4B of this Act or an entity that
1-48     creates a corporation under Section 4A or 4B of this Act.
1-49           (b)  At least once in each 24-month period, the following
1-50     persons shall attend a training seminar sponsored by the department
1-51     under Section 481.0231, Government Code:
1-52                 (1)  the city attorney, the city administrator, or the
1-53     city clerk of a city that created a corporation;
1-54                 (2)  the county clerk or the county attorney of a
1-55     county that created a corporation; and
1-56                 (3)  the executive director of the corporation or other
1-57     person who is responsible for the daily administration of the
1-58     corporation.
1-59           (c)  A corporation shall present proof of compliance with
1-60     this section to the comptroller by presenting the certificates of
1-61     completion issued under Section 481.0231, Government Code, for each
1-62     person that was required to attend the training seminar.  The
1-63     comptroller may impose an administrative penalty, in an amount not
1-64     to exceed $1,000 for each violation, against a corporation that
 2-1     fails to present proof in accordance with this section.
 2-2           (d)  A corporation may spend corporate revenue to pay the
 2-3     costs of attending a seminar required by Subsection (b) of this
 2-4     section.
 2-5           SECTION 3. (a)  The Texas Department of Economic Development
 2-6     shall develop the training seminar under Section 481.0231,
 2-7     Government Code, as added by this Act, not later than January 1,
 2-8     2002.
 2-9           (b)  A person who, on the effective date of this Act, is
2-10     required to take a training seminar under Section 39, Development
2-11     Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
2-12     Statutes), as added by this Act, must take a training seminar
2-13     before January 1, 2004.
2-14           SECTION 4. This Act takes effect September 1, 2001.
2-15                                  * * * * *