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