By Bonnen                                             H.B. No. 3298
         77R8209 CLG-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the contracting authority of and authorized uses for
 1-3     corporate revenue by certain industrial development corporations.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 4A(b)(1), Development Corporation Act of
 1-6     1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
 1-7     read as follows:
 1-8                 (1)  A city may create a corporation under this Act
 1-9     governed by this section. The corporation has the powers and is
1-10     subject to the limitations of a corporation created under other
1-11     provisions of this Act.  To the extent of a conflict between this
1-12     section and another provision of this Act, this section prevails.
1-13     The articles of incorporation of a corporation under this section
1-14     must state that the corporation is governed by this section.  A
1-15     city may not create more than one corporation governed by this
1-16     section.  A corporation created under this section may spend no
1-17     more than 10 percent of the corporate revenues for promotional
1-18     purposes and may contract with other existing private corporations
1-19     to carry out industrial development programs or objectives or to
1-20     assist with the development or operation of an economic development
1-21     program or objective consistent with the purposes and duties as set
1-22     out in this Act.
1-23           SECTION 2. Section 4B(b), Development Corporation Act of 1979
1-24     (Article 5190.6, Vernon's Texas Civil Statutes), is amended to read
 2-1     as follows:
 2-2           (b)  An eligible city may create a corporation under this Act
 2-3     governed by this section.  The corporation has the powers granted
 2-4     by this section and by other sections of this Act and is subject to
 2-5     the limitations of a corporation created under other provisions of
 2-6     this Act.  To the extent of a conflict between this section and
 2-7     another provision of this Act, this section prevails.  The articles
 2-8     of incorporation of a corporation under this section must state
 2-9     that the corporation is governed by this section and may include
2-10     within its name any words and phrases specified by the eligible
2-11     city.  An eligible city may not create more than one corporation
2-12     governed by this section.  A corporation created under this section
2-13     may spend no more than 10 percent of the corporate revenues for
2-14     promotional purposes and may contract with another existing private
2-15     corporation to carry out an industrial development program or
2-16     objective or to assist with the development or operation of an
2-17     economic development program or objective consistent with the
2-18     purposes and duties specified in this Act.
2-19           SECTION 3.  This Act takes effect immediately if it receives
2-20     a vote of two-thirds of all the members elected to each house, as
2-21     provided by Section 39, Article III, Texas Constitution.  If this
2-22     Act does not receive the vote necessary for immediate effect, this
2-23     Act takes effect September 1, 2001.