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. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 3298 was passed by the House on April 20, 2001, by the following vote: Yeas 142, Nays 0, 2 present, not voting. _______________________________ Chief Clerk of the House I certify that H.B. No. 3298 was passed by the Senate on May 22, 2001, by the following vote: Yeas 30, Nays 0, 1 present, not voting. _______________________________ Secretary of the Senate APPROVED: __________________________ Date __________________________ Governor