Bill Text: TX HB593 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to establishing an intergovernmental development corporation in certain counties to foster minority- or women-owned construction businesses.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-01 - Referred to International Relations & Economic Development [HB593 Detail]
Download: Texas-2021-HB593-Introduced.html
| 87R2470 MP-D | ||
| By: Turner of Tarrant | H.B. No. 593 | |
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| 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. | ||
