Texas 2021 - 87th Regular

Texas House Bill HB1986 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R2470 MP-D
2	2	By: Thierry H.B. No. 1986
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to establishing an intergovernmental development
8	8	corporation in certain counties to foster minority- or women-owned
9	9	construction businesses.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle C, Title 12, Local Government Code, is
12	12	amended by adding Chapter 396 to read as follows:
13	13	CHAPTER 396. INTERGOVERNMENTAL DEVELOPMENT CORPORATIONS IN
14	14	CERTAIN COUNTIES
15	15	Sec. 396.001. APPLICABILITY. This chapter applies only to
16	16	a county with a population of more than two million that is adjacent
17	17	to another county with a population of more than two million.
18	18	Sec. 396.002. FINDING AND PURPOSE. (a) The legislature
19	19	finds that it is an appropriate role for local governmental
20	20	entities to foster the development of construction businesses that
21	21	are owned by members of a minority group or by women.
22	22	(b) The program authorized by this chapter, including the
23	23	authority to grant public money under the program, is in the public
24	24	interest, promotes economic diversity, and serves the public
25	25	purpose of economic development and diversification.
26	26	(c) This chapter shall be liberally construed in conformity
27	27	with the finding and purposes stated in this section.
28	28	Sec. 396.003. CREATION OF CORPORATION. (a) The
29	29	commissioners court of a county subject to this chapter and the
30	30	governing body of a single political subdivision or governing
31	31	bodies of a combination of political subdivisions located wholly or
32	32	partly in a county subject to this chapter may create a corporation
33	33	under this chapter.
34	34	(b) Only one corporation may be created in a county under
35	35	this chapter.
36	36	(c) A corporation created under this chapter must be formed
37	37	as a nonprofit corporation under the Business Organizations Code.
38	38	To the extent of a conflict with respect to the powers, rights, or
39	39	duties of a nonprofit corporation between the Business
40	40	Organizations Code and this chapter, this chapter prevails.
41	41	(d) The certificate of formation of the corporation must
42	42	state that the corporation is governed by this chapter.
43	43	(e) The initial bylaws of the corporation shall be adopted
44	44	by its board of directors and approved by resolution by each
45	45	governing body that created the corporation. Any subsequent
46	46	changes made to the bylaws must be approved by each governing body
47	47	that created the corporation.
48	48	Sec. 396.004. BOARD OF DIRECTORS. (a) The corporation is
49	49	governed by a board of directors. Each governing body that created
50	50	the corporation shall appoint one member of the board. If an even
51	51	number of governing bodies are entitled to appoint a member to the
52	52	board, the governing bodies, in addition to individually appointing
53	53	one member as provided by this subsection, shall jointly appoint
54	54	one member of the board.
55	55	(b) Board members serve staggered two-year terms, with as
56	56	near as possible to one-half of the members' terms expiring each
57	57	year. A board member serves at the will of the governing body or
58	58	governing bodies, as applicable, that appointed the member.
59	59	Successor members are appointed in the same manner as the original
60	60	appointees.
61	61	(c) A board member may not have a personal interest in a
62	62	contract executed by the corporation.
63	63	(d) A board member is not entitled to compensation but is
64	64	entitled to reimbursement for actual and necessary expenses
65	65	incurred in serving as a board member.
66	66	(e) The board shall appoint from its members a presiding
67	67	officer, a secretary, and other officers of the corporation that
68	68	the board considers necessary.
69	69	Sec. 396.005. ADOPTION AND APPROVAL OF BUDGET; REVIEW OF
70	70	CORPORATE FINANCES. (a) The board shall prepare an annual budget
71	71	for the corporation. The budget must be approved by the board and
72	72	presented to and approved by each governing body that created the
73	73	corporation. The corporation may not make any expenditure
74	74	authorized by this chapter until the budget has been approved as
75	75	provided by this section. An amendment of the budget must be
76	76	approved in the same manner as the budget.
77	77	(b) A governing body that created the corporation is
78	78	entitled, at all times, to access to the books and records of the
79	79	corporation.
80	80	Sec. 396.006. PROGRAM TO FOSTER MINORITY- OR WOMEN-OWNED
81	81	CONSTRUCTION BUSINESSES. A corporation may develop and implement a
82	82	program to provide for owners of construction businesses who are
83	83	members of a minority group or who are women:
84	84	(1) training and mentoring, including providing
85	85	long-term training and in-training support service grants, through
86	86	the participation of general contractors who have substantial
87	87	experience and expertise providing construction services in the
88	88	county; and
89	89	(2) any other undertaking, including granting public
90	90	money, that the board determines will directly foster the
91	91	development of construction businesses that are owned by members of
92	92	a minority group or by women.
93	93	Sec. 396.007. GENERAL POWERS OF CORPORATION. The
94	94	corporation may:
95	95	(1) administer a program authorized by this chapter;
96	96	(2) perform any act necessary for the full exercise of
97	97	the corporation's powers;
98	98	(3) accept a grant or loan from:
99	99	(A) a governing body that created the
100	100	corporation;
101	101	(B) a department or agency of the United States;
102	102	(C) a department or agency of this state; or
103	103	(D) a public or private person;
104	104	(4) employ any necessary personnel;
105	105	(5) adopt rules to govern the operation of the
106	106	corporation and its employees and property; and
107	107	(6) contract or enter into a memorandum of
108	108	understanding or a similar agreement with a public or private
109	109	person in connection with a program authorized by this chapter.
110	110	Sec. 396.008. NATURE OF CORPORATE PROPERTY. (a) The
111	111	legislature finds for all constitutional and statutory purposes
112	112	that the corporation owns, uses, and holds its property for public
113	113	purposes.
114	114	(b) Section 25.07(a), Tax Code, does not apply to a
115	115	leasehold or other possessory interest granted by the corporation.
116	116	(c) Property owned by the corporation is exempt from
117	117	taxation under Section 11.11, Tax Code, while the corporation owns
118	118	the property.
119	119	Sec. 396.009. OPEN RECORDS AND MEETINGS. The board is
120	120	considered a governmental body for the purposes of Chapters 551 and
121	121	552, Government Code.
122	122	SECTION 2. This Act takes effect immediately if it receives
123	123	a vote of two-thirds of all the members elected to each house, as
124	124	provided by Section 39, Article III, Texas Constitution. If this
125	125	Act does not receive the vote necessary for immediate effect, this
126	126	Act takes effect September 1, 2021.