Texas 2019 - 86th Regular

Texas House Bill HB2521 Compare Versions

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11 86R10142 MP-D
22 By: Turner of Tarrant H.B. No. 2521
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to establishing an intergovernmental development
88 corporation in certain counties to foster minority- or women-owned
99 construction businesses.
1010 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1111 SECTION 1. Subtitle C, Title 12, Local Government Code, is
1212 amended by adding Chapter 396 to read as follows:
1313 CHAPTER 396. INTERGOVERNMENTAL DEVELOPMENT CORPORATIONS IN
1414 CERTAIN COUNTIES
1515 Sec. 396.001. APPLICABILITY. This chapter applies only in
1616 a county with a population of 800,000 or more and that is adjacent
1717 to a county with a population of more than 600,000.
1818 Sec. 396.002. FINDING AND PURPOSE. (a) The legislature
1919 finds that it is an appropriate role for local governmental
2020 entities to foster the development of construction businesses that
2121 are owned by members of a minority group or by women.
2222 (b) The program authorized by this chapter, including the
2323 authority to grant public money under the program, is in the public
2424 interest, promotes the economic diversity, and serves the public
2525 purpose of economic development and diversification.
2626 (c) This chapter shall be liberally construed in conformity
2727 with the finding and purposes stated in this section.
2828 Sec. 396.003. CREATION OF CORPORATION. (a) The
2929 commissioners court of a county subject to this chapter and the
3030 governing body of a single political subdivision or governing
3131 bodies of a combination of political subdivisions located wholly or
3232 partly in a county subject to this chapter may create a corporation
3333 under this chapter.
3434 (b) Only one corporation may be created in a county under
3535 this chapter.
3636 (c) A corporation created under this chapter must be formed
3737 as a nonprofit corporation under the Business Organizations Code.
3838 To the extent of a conflict with respect to the powers, rights, or
3939 duties of a nonprofit corporation between the Business
4040 Organizations Code and this chapter, this chapter prevails.
4141 (d) The certificate of formation of the corporation must
4242 state that the corporation is governed by this chapter.
4343 (e) The initial bylaws of a corporation shall be adopted by
4444 its board of directors and approved by resolution of each governing
4545 body that created the corporation. Any subsequent changes made to
4646 the bylaws must be approved by each governing body that created the
4747 corporation.
4848 Sec. 396.004. BOARD OF DIRECTORS. (a) The corporation is
4949 governed by a board of directors. Each governing body that created
5050 the corporation shall appoint one member of the board. If an even
5151 number of governing bodies are entitled to appoint a member to the
5252 board, the governing bodies, in addition to individually appointing
5353 one member as provided by this subsection, shall jointly appoint
5454 one member of the board.
5555 (b) Board members serve staggered two-year terms, with as
5656 near as possible to one-half of the members' terms expiring each
5757 year. A board member serves at the will of the governing body or
5858 governing bodies, as applicable, that appointed the member.
5959 Successor members are appointed in the same manner as the original
6060 appointees.
6161 (c) A board member may not have a personal interest in a
6262 contract executed by the corporation.
6363 (d) A board member is not entitled to compensation, but is
6464 entitled to reimbursement for actual and necessary expenses
6565 incurred in serving as a board member.
6666 (e) The board shall appoint from its members a presiding
6767 officer, a secretary, and other officers of the corporation that
6868 the board considers necessary.
6969 Sec. 396.005. ADOPTION AND APPROVAL OF BUDGET; REVIEW OF
7070 CORPORATE FINANCES. (a) The board shall prepare an annual budget
7171 for the corporation. To be effective, the budget must be approved
7272 by the board and presented to and approved by each governing body
7373 that created the corporation. The corporation may not make any
7474 expenditure authorized by this chapter until the budget has been
7575 approved as provided by this section. An amendment of the budget
7676 must be approved in the same manner as the budget.
7777 (b) A governing body that created the corporation is
7878 entitled, at all times, to access to the books and records of the
7979 corporation.
8080 Sec. 396.006. PROGRAM TO FOSTER MINORITY- OR WOMEN-OWNED
8181 CONSTRUCTION BUSINESSES. A corporation may develop and implement a
8282 program to provide for owners of construction businesses who are
8383 members of a minority group or who are women:
8484 (1) training and mentoring, including providing
8585 long-term training and in-training support service grants, through
8686 the participation of general contractors who have substantial
8787 experience and expertise providing construction services in the
8888 county; and
8989 (2) any other undertaking, including granting public
9090 money, that the board determines will directly foster the
9191 development of construction businesses that are owned by members of
9292 a minority group or by women.
9393 Sec. 396.007. GENERAL POWERS OF CORPORATION. The
9494 corporation may:
9595 (1) own or operate a program authorized by this
9696 chapter;
9797 (2) perform any act necessary for the full exercise of
9898 the corporation's powers;
9999 (3) accept a grant or loan from:
100100 (A) a governing body that created the
101101 corporation;
102102 (B) a department or agency of the United States;
103103 (C) a department or agency of this state; or
104104 (D) a public or private person;
105105 (4) employ any necessary personnel;
106106 (5) adopt rules to govern the operation of the
107107 corporation and its employees and property; and
108108 (6) contract or enter into a memorandum of
109109 understanding or a similar agreement with a public or private
110110 person in connection with a program authorized by this chapter.
111111 Sec. 396.008. NATURE OF CORPORATE PROPERTY. (a) The
112112 legislature finds for all constitutional and statutory purposes
113113 that the corporation owns, uses, and holds its property for public
114114 purposes.
115115 (b) Section 25.07(a), Tax Code, does not apply to a
116116 leasehold or other possessory interest granted by the corporation.
117117 (c) Property owned by the corporation is exempt from
118118 taxation under Section 11.11, Tax Code, while the corporation owns
119119 the property.
120120 Sec. 396.009. OPEN RECORDS AND MEETINGS. The board is
121121 treated as a governmental body for the purposes of Chapters 551 and
122122 552, Government Code.
123123 SECTION 2. This Act takes effect immediately if it receives
124124 a vote of two-thirds of all the members elected to each house, as
125125 provided by Section 39, Article III, Texas Constitution. If this
126126 Act does not receive the vote necessary for immediate effect, this
127127 Act takes effect September 1, 2019.