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By:  Deshotel                                                     H.B. No. 3036



A BILL TO BE ENTITLED

AN ACT

relating to the number, terms, and removal of directors of certain 
development corporations.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 4A(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 at least five directors who are appointed by the 
governing body of the city and who serve at the pleasure of the 
governing body and may be removed by the governing body at any time 
without cause.  The governing body of the city shall determine the 
number of directors and the length of the term of each director, not 
to exceed six years.  A majority of the entire membership of the 
board constitutes a quorum.  The board shall conduct each of its 
meetings within the boundaries of the city.  The board shall appoint 
a president, a secretary, and other officers of the corporation 
that the governing body of the 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 city.
	SECTION 2.  Not later than January 1, 2006, the governing 
body of a city that has created a corporation governed by Section 
4A, Development Corporation Act of 1979 (Article 5190.6, Vernon's 
Texas Civil Statutes), shall take action necessary to conform the 
length of terms of the board of directors of that corporation to the 
requirements of Section 4A(c), Development Corporation Act of 1979 
(Article 5190.6, Vernon's Texas Civil Statutes), as amended by this 
Act.
	SECTION 3.  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, 2005.