78R5509 ATP-D

By:  Miller                                                       H.B. No. 1229



A BILL TO BE ENTITLED

AN ACT

relating to eligibility for appointment to the board of directors 
of an economic development corporation.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 4B(c), Development Corporation Act of 
1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to 
read as follows:
	(c)  The board of directors of a corporation under this 
section consists of seven directors who are appointed by the 
governing body of the eligible city for two-year terms of office.  A 
director may be removed by the governing body of the eligible city 
at any time without cause.  Each director of a corporation created 
by an eligible city with a population of 20,000 or more must be a 
resident of the eligible city.  Each director of a corporation 
created by an eligible city with a population of less than 20,000 
must be a resident of the eligible city, be a resident of [or] the 
county in which the major part of the area of the eligible city is 
located, or reside at a place that is within 10 miles of the 
eligible city's boundaries and is in a county bordering the county 
in which the major part of the area of the eligible city is located.  
Three directors shall be persons who are not employees, officers, 
or members of the governing body of the eligible city.  A majority 
of the entire membership of the board is a quorum.  The board shall 
conduct all meetings within the boundaries of the eligible city.  
The board shall appoint a president, a secretary, and other 
officers of the corporation that the governing body of the eligible 
city considers necessary.  The corporation's registered agent must 
be an individual resident of the state and the corporation's 
registered office must be within the boundaries of the eligible 
city.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.