87R2470 MP-D
By: Thierry H.B. No. 1986
A BILL TO BE ENTITLED
AN ACT
relating to establishing an intergovernmental development
corporation in certain counties to foster minority- or women-owned
construction businesses.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 12, Local Government Code, is
amended by adding Chapter 396 to read as follows:
CHAPTER 396. INTERGOVERNMENTAL DEVELOPMENT CORPORATIONS IN
CERTAIN COUNTIES
Sec. 396.001. APPLICABILITY. This chapter applies only to
a county with a population of more than two million that is adjacent
to another county with a population of more than two million.
Sec. 396.002. FINDING AND PURPOSE. (a) The legislature
finds that it is an appropriate role for local governmental
entities to foster the development of construction businesses that
are owned by members of a minority group or by women.
(b) The program authorized by this chapter, including the
authority to grant public money under the program, is in the public
interest, promotes economic diversity, and serves the public
purpose of economic development and diversification.
(c) This chapter shall be liberally construed in conformity
with the finding and purposes stated in this section.
Sec. 396.003. CREATION OF CORPORATION. (a) The
commissioners court of a county subject to this chapter and the
governing body of a single political subdivision or governing
bodies of a combination of political subdivisions located wholly or
partly in a county subject to this chapter may create a corporation
under this chapter.
(b) Only one corporation may be created in a county under
this chapter.
(c) A corporation created under this chapter must be formed
as a nonprofit corporation under the Business Organizations Code.
To the extent of a conflict with respect to the powers, rights, or
duties of a nonprofit corporation between the Business
Organizations Code and this chapter, this chapter prevails.
(d) The certificate of formation of the corporation must
state that the corporation is governed by this chapter.
(e) The initial bylaws of the corporation shall be adopted
by its board of directors and approved by resolution by each
governing body that created the corporation. Any subsequent
changes made to the bylaws must be approved by each governing body
that created the corporation.
Sec. 396.004. BOARD OF DIRECTORS. (a) The corporation is
governed by a board of directors. Each governing body that created
the corporation shall appoint one member of the board. If an even
number of governing bodies are entitled to appoint a member to the
board, the governing bodies, in addition to individually appointing
one member as provided by this subsection, shall jointly appoint
one member of the board.
(b) Board members serve staggered two-year terms, with as
near as possible to one-half of the members' terms expiring each
year. A board member serves at the will of the governing body or
governing bodies, as applicable, that appointed the member.
Successor members are appointed in the same manner as the original
appointees.
(c) A board member may not have a personal interest in a
contract executed by the corporation.
(d) A board member is not entitled to compensation but is
entitled to reimbursement for actual and necessary expenses
incurred in serving as a board member.
(e) The board shall appoint from its members a presiding
officer, a secretary, and other officers of the corporation that
the board considers necessary.
Sec. 396.005. ADOPTION AND APPROVAL OF BUDGET; REVIEW OF
CORPORATE FINANCES. (a) The board shall prepare an annual budget
for the corporation. The budget must be approved by the board and
presented to and approved by each governing body that created the
corporation. The corporation may not make any expenditure
authorized by this chapter until the budget has been approved as
provided by this section. An amendment of the budget must be
approved in the same manner as the budget.
(b) A governing body that created the corporation is
entitled, at all times, to access to the books and records of the
corporation.
Sec. 396.006. PROGRAM TO FOSTER MINORITY- OR WOMEN-OWNED
CONSTRUCTION BUSINESSES. A corporation may develop and implement a
program to provide for owners of construction businesses who are
members of a minority group or who are women:
(1) training and mentoring, including providing
long-term training and in-training support service grants, through
the participation of general contractors who have substantial
experience and expertise providing construction services in the
county; and
(2) any other undertaking, including granting public
money, that the board determines will directly foster the
development of construction businesses that are owned by members of
a minority group or by women.
Sec. 396.007. GENERAL POWERS OF CORPORATION. The
corporation may:
(1) administer a program authorized by this chapter;
(2) perform any act necessary for the full exercise of
the corporation's powers;
(3) accept a grant or loan from:
(A) a governing body that created the
corporation;
(B) a department or agency of the United States;
(C) a department or agency of this state; or
(D) a public or private person;
(4) employ any necessary personnel;
(5) adopt rules to govern the operation of the
corporation and its employees and property; and
(6) contract or enter into a memorandum of
understanding or a similar agreement with a public or private
person in connection with a program authorized by this chapter.
Sec. 396.008. NATURE OF CORPORATE PROPERTY. (a) The
legislature finds for all constitutional and statutory purposes
that the corporation owns, uses, and holds its property for public
purposes.
(b) Section 25.07(a), Tax Code, does not apply to a
leasehold or other possessory interest granted by the corporation.
(c) Property owned by the corporation is exempt from
taxation under Section 11.11, Tax Code, while the corporation owns
the property.
Sec. 396.009. OPEN RECORDS AND MEETINGS. The board is
considered a governmental body for the purposes of Chapters 551 and
552, Government Code.
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, 2021.