By Lindsay                                             S.B. No. 354
         77R4130 DWS-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the powers of a local government corporation.
 1-4           SECTION 1.  Sections 431.101(a) and (e), Transportation Code,
 1-5     are amended to read as follows:
 1-6           (a)  A local government corporation may be created to aid and
 1-7     act on behalf of one or more local governments to accomplish any
 1-8     [governmental] purpose under this chapter [of those local
 1-9     governments].  To be effective, the articles of incorporation and
1-10     the bylaws of a local government corporation must be approved by
1-11     ordinance, resolution, or order adopted by the governing body of
1-12     each local government that the corporation is created to aid and
1-13     act on behalf of.
1-14           (e)  A local government corporation is subject to all
1-15     statutes, codes, and other laws related to the design and
1-16     construction of projects, including the procurement of design and
1-17     construction services, that apply to the local government that
1-18     created the corporation [Section 394.904(a), Local Government Code,
1-19     applies to property and improvements owned by a local government
1-20     corporation.  Section 394.904(b) of that code applies to each
1-21     contract awarded by the local government corporation].
1-22           SECTION 2.  This Act takes effect immediately if it receives
1-23     a vote of two-thirds of all the members elected to each house, as
1-24     provided by Section 39, Article III, Texas Constitution.  If this
 2-1     Act does not receive the vote necessary for immediate effect, this
 2-2     Act takes effect September 1, 2001.