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. 1-55 * * * * *