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A BILL TO BE ENTITLED
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AN ACT
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relating to establishing an intergovernmental development |
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corporation in certain counties to foster minority- or women-owned |
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construction businesses. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 12, Local Government Code, is |
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amended by adding Chapter 396 to read as follows: |
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CHAPTER 396. INTERGOVERNMENTAL DEVELOPMENT CORPORATIONS IN |
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CERTAIN COUNTIES |
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Sec. 396.001. APPLICABILITY. This chapter applies only in |
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a county with a population of 800,000 or more and that is adjacent |
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to a county with a population of more than 600,000. |
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Sec. 396.002. FINDING AND PURPOSE. (a) The legislature |
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finds that it is an appropriate role for local governmental |
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entities to foster the development of construction businesses that |
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are owned by members of a minority group or by women. |
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(b) The program authorized by this chapter, including the |
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authority to grant public money under the program, is in the public |
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interest, promotes the economic diversity, and serves the public |
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purpose of economic development and diversification. |
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(c) This chapter shall be liberally construed in conformity |
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with the finding and purposes stated in this section. |
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Sec. 396.003. CREATION OF CORPORATION. (a) The |
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commissioners court of a county subject to this chapter and the |
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governing body of a single political subdivision or governing |
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bodies of a combination of political subdivisions located wholly or |
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partly in a county subject to this chapter may create a corporation |
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under this chapter. |
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(b) Only one corporation may be created in a county under |
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this chapter. |
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(c) A corporation created under this chapter must be formed |
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as a nonprofit corporation under the Business Organizations Code. |
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To the extent of a conflict with respect to the powers, rights, or |
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duties of a nonprofit corporation between the Business |
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Organizations Code and this chapter, this chapter prevails. |
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(d) The certificate of formation of the corporation must |
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state that the corporation is governed by this chapter. |
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(e) The initial bylaws of a corporation shall be adopted by |
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its board of directors and approved by resolution of each governing |
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body that created the corporation. Any subsequent changes made to |
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the bylaws must be approved by each governing body that created the |
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corporation. |
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Sec. 396.004. BOARD OF DIRECTORS. (a) The corporation is |
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governed by a board of directors. Each governing body that created |
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the corporation shall appoint one member of the board. If an even |
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number of governing bodies are entitled to appoint a member to the |
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board, the governing bodies, in addition to individually appointing |
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one member as provided by this subsection, shall jointly appoint |
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one member of the board. |
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(b) Board members serve staggered two-year terms, with as |
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near as possible to one-half of the members' terms expiring each |
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year. A board member serves at the will of the governing body or |
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governing bodies, as applicable, that appointed the member. |
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Successor members are appointed in the same manner as the original |
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appointees. |
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(c) A board member may not have a personal interest in a |
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contract executed by the corporation. |
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(d) A board member is not entitled to compensation, but is |
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entitled to reimbursement for actual and necessary expenses |
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incurred in serving as a board member. |
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(e) The board shall appoint from its members a presiding |
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officer, a secretary, and other officers of the corporation that |
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the board considers necessary. |
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Sec. 396.005. ADOPTION AND APPROVAL OF BUDGET; REVIEW OF |
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CORPORATE FINANCES. (a) The board shall prepare an annual budget |
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for the corporation. To be effective, the budget must be approved |
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by the board and presented to and approved by each governing body |
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that created the corporation. The corporation may not make any |
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expenditure authorized by this chapter until the budget has been |
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approved as provided by this section. An amendment of the budget |
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must be approved in the same manner as the budget. |
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(b) A governing body that created the corporation is |
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entitled, at all times, to access to the books and records of the |
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corporation. |
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Sec. 396.006. PROGRAM TO FOSTER MINORITY- OR WOMEN-OWNED |
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CONSTRUCTION BUSINESSES. A corporation may develop and implement a |
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program to provide for owners of construction businesses who are |
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members of a minority group or who are women: |
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(1) training and mentoring, including providing |
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long-term training and in-training support service grants, through |
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the participation of general contractors who have substantial |
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experience and expertise providing construction services in the |
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county; and |
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(2) any other undertaking, including granting public |
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money, that the board determines will directly foster the |
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development of construction businesses that are owned by members of |
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a minority group or by women. |
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Sec. 396.007. GENERAL POWERS OF CORPORATION. The |
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corporation may: |
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(1) own or operate a program authorized by this |
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chapter; |
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(2) perform any act necessary for the full exercise of |
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the corporation's powers; |
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(3) accept a grant or loan from: |
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(A) a governing body that created the |
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corporation; |
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(B) a department or agency of the United States; |
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(C) a department or agency of this state; or |
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(D) a public or private person; |
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(4) employ any necessary personnel; |
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(5) adopt rules to govern the operation of the |
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corporation and its employees and property; and |
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(6) contract or enter into a memorandum of |
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understanding or a similar agreement with a public or private |
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person in connection with a program authorized by this chapter. |
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Sec. 396.008. NATURE OF CORPORATE PROPERTY. (a) The |
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legislature finds for all constitutional and statutory purposes |
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that the corporation owns, uses, and holds its property for public |
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purposes. |
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(b) Section 25.07(a), Tax Code, does not apply to a |
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leasehold or other possessory interest granted by the corporation. |
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(c) Property owned by the corporation is exempt from |
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taxation under Section 11.11, Tax Code, while the corporation owns |
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the property. |
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Sec. 396.009. OPEN RECORDS AND MEETINGS. The board is |
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treated as a governmental body for the purposes of Chapters 551 and |
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552, Government Code. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2019. |