1-1     By:  Bonnen (Senate Sponsor - Brown)                  H.B. No. 3298
 1-2           (In the Senate - Received from the House April 23, 2001;
 1-3     April 24, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 11, 2001, reported favorably by
 1-5     the following vote:  Yeas 5, Nays 0; May 11, 2001, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the contracting authority of and authorized uses for
1-10     corporate revenue by certain industrial development corporations.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1. Section 4A(b)(1), Development Corporation Act of
1-13     1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
1-14     read as follows:
1-15                 (1)  A city may create a corporation under this Act
1-16     governed by this section. The corporation has the powers and is
1-17     subject to the limitations of a corporation created under other
1-18     provisions of this Act.  To the extent of a conflict between this
1-19     section and another provision of this Act, this section prevails.
1-20     The articles of incorporation of a corporation under this section
1-21     must state that the corporation is governed by this section.  A
1-22     city may not create more than one corporation governed by this
1-23     section.  A corporation created under this section may spend no
1-24     more than 10 percent of the corporate revenues for promotional
1-25     purposes and may contract with other existing private corporations
1-26     to carry out industrial development programs or objectives or to
1-27     assist with the development or operation of an economic development
1-28     program or objective consistent with the purposes and duties as set
1-29     out in this Act.
1-30           SECTION 2. Section 4B(b), Development Corporation Act of 1979
1-31     (Article 5190.6, Vernon's Texas Civil Statutes), is amended to read
1-32     as follows:
1-33           (b)  An eligible city may create a corporation under this Act
1-34     governed by this section.  The corporation has the powers granted
1-35     by this section and by other sections of this Act and is subject to
1-36     the limitations of a corporation created under other provisions of
1-37     this Act.  To the extent of a conflict between this section and
1-38     another provision of this Act, this section prevails.  The articles
1-39     of incorporation of a corporation under this section must state
1-40     that the corporation is governed by this section and may include
1-41     within its name any words and phrases specified by the eligible
1-42     city.  An eligible city may not create more than one corporation
1-43     governed by this section.  A corporation created under this section
1-44     may spend no more than 10 percent of the corporate revenues for
1-45     promotional purposes and may contract with another existing private
1-46     corporation to carry out an industrial development program or
1-47     objective or to assist with the development or operation of an
1-48     economic development program or objective consistent with the
1-49     purposes and duties specified in this Act.
1-50           SECTION 3.  This Act takes effect immediately if it receives
1-51     a vote of two-thirds of all the members elected to each house, as
1-52     provided by Section 39, Article III, Texas Constitution.  If this
1-53     Act does not receive the vote necessary for immediate effect, this
1-54     Act takes effect September 1, 2001.
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