Bill Text: TX HB1986 | 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) 2021-03-15 - Referred to International Relations & Economic Development [HB1986 Detail]

Download: Texas-2021-HB1986-Introduced.html
  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.
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