85R15095 PAM-D     By: Turner, Collier H.B. No. 4049       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 in   a county in which two or more municipalities with a population of   more than 300,000 are predominately located.          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 the 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 a corporation shall be adopted by   its board of directors and approved by resolution of 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. To be effective, 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)  own or operate 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   treated as 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, 2017.