SUBCHAPTER A GENERAL PROVISIONS
- Texas Section 501.001 - Short Title
This subtitle may be cited as the Development Corporation Act. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April...
- Texas Section 501.002 - Definitions
In this subtitle: (1) "Authorizing unit" means the unit that authorizes the creation of a corporation under this subtitle. (2) "Board of directors" means the...
- Texas Section 501.003 - Who May Be User
The following may be a user under this subtitle: (1) an individual, a partnership, a corporation, or any other private entity organized for profit or...
- Texas Section 501.004 - Legislative Findings; Construction Of Subtitle
(a) The legislature finds that: (1) the present and prospective right to gainful employment and the general welfare of the people of this state require...
- Texas Section 501.005 - Adoption Of Alternate Procedure
If a court holds that a procedure under this subtitle violates the federal or state constitution, a corporation by resolution may provide an alternate procedure...
- Texas Section 501.006 - Use Of Corporation To Finance Project
A unit may use a corporation to issue bonds on the unit's behalf to finance the cost of a project, including a project in a...
- Texas Section 501.007 - Lending Credit Or Granting Public Money
(a) Except as provided by Subsection (b), a unit may not lend its credit or grant public money or another thing of value in aid...
- Texas Section 501.008 - Limitation On Financial Obligation
A corporation may not incur a financial obligation that cannot be paid from: (1) bond proceeds; (2) revenue realized from the lease or sale of...
- Texas Section 501.009 - Police Powers Not Affected
This subtitle does not deprive this state or a governmental subdivision of this state of its police powers over a corporation's property and does not...
- Texas Section 501.010 - Delegation Of Unit's Sovereign Powers Prohibited
A unit may not delegate to a corporation any of the unit's attributes of sovereignty, including the power to tax, the power of eminent domain,...
SUBCHAPTER B CREATION AND OPERATION OF CORPORATION
- Texas Section 501.011 - Reference To Articles Of Incorporation Or Certificate Of Formation
(a) With respect to a corporation created under the Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes) before January 1, 2006, a...
- Texas Section 501.051 - Authority To Create
(a) Three or more individuals who are qualified voters of a unit may file with the unit's governing body a written application requesting the unit...
- Texas Section 501.052 - Nonmember, Nonstock Form Of Corporation
A corporation is a nonmember, nonstock corporation. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009.
- Texas Section 501.053 - Corporation Nonprofit; Net Earnings
(a) A corporation is nonprofit, and the corporation's net earnings remaining after payment of its expenses may not benefit an individual, firm, or corporation, except...
- Texas Section 501.054 - General Powers, Privileges, And Functions
(a) A corporation has the powers, privileges, and functions of a nonprofit corporation incorporated under the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's...
- Texas Section 501.055 - Constituted Authority Or Instrumentality
(a) A corporation is a constituted authority and an instrumentality, within the meaning of the United States Department of the Treasury regulations and the Internal...
- Texas Section 501.056 - Contents Of Certificate Of Formation
The certificate of formation of a corporation must state: (1) the name of the corporation; (2) that the corporation is a nonprofit corporation; (3) the...
- Texas Section 501.057 - Filing Of Certificate Of Formation And Delivery Of Certificate Evidencing Filing
(a) If the unit's governing body adopts a resolution under Section 501.051, the certificate of formation may be filed as provided by this section. (b)...
- Texas Section 501.058 - Effect Of Issuance Of Certificate Evidencing Filing
(a) A corporation's existence begins when the certificate evidencing the filing of its certificate of formation is issued. (b) After the issuance of the certificate...
- Texas Section 501.059 - Corporate Seal
A corporation may have a corporate seal and with respect to a project may impress, affix, or otherwise reproduce the seal or a facsimile of...
- Texas Section 501.060 - May Sue And Be Sued
With respect to a project, a corporation may sue, be sued, complain, and defend in the corporation's name. Added by Acts 2007, 80th Leg., R.S.,...
- Texas Section 501.061 - Corporation's Organization Not Restricted
Except as provided by this subtitle, no proceeding, notice, or approval is required for the organization of a corporation. Added by Acts 2007, 80th Leg.,...
- Texas Section 501.062 - Board Of Directors
(a) All of the powers of a corporation are vested in a board of directors consisting of three or more directors appointed by the governing...
- Texas Section 501.063 - Organizational Meeting
(a) After issuance of the certificate evidencing the filing of the certificate of formation, the board of directors named in the certificate of formation shall...
- Texas Section 501.064 - Bylaws
(a) A corporation may adopt and amend bylaws for the administration and regulation of the corporation's affairs. (b) The board of directors shall adopt a...
- Texas Section 501.065 - Officers
(a) A corporation has the following officers: (1) a president; (2) at least one vice president; (3) a secretary; (4) a treasurer; and (5) other...
- Texas Section 501.066 - Indemnification
(a) In this section, "director or officer" includes a former director or officer. (b) Except as provided by Subsection (d), a corporation may indemnify a...
- Texas Section 501.067 - Insurance And Benefits
(a) Notwithstanding any law to the contrary and with the consent of the corporation's authorizing unit, a corporation may obtain: (1) health benefits coverage, liability...
- Texas Section 501.068 - Board Meetings; Notice Of Meeting
(a) A board of directors may hold a regular meeting in this state with or without notice as prescribed by the corporation's bylaws. (b) A...
- Texas Section 501.069 - Waiver Of Notice
If a notice is required to be given to a director of a corporation under this subtitle or the corporation's certificate of formation or bylaws,...
- Texas Section 501.070 - Action Of Board; Quorum
(a) A quorum of a board of directors is the lesser of: (1) a majority of the number of directors: (A) established by the corporation's...
- Texas Section 501.071 - Action Without Meeting
(a) An action that may be taken at a meeting of a board of directors, including an action required by this subtitle to be taken...
- Texas Section 501.072 - Open Meetings And Public Information
A board of directors is subject to the open meetings law, Chapter 551, Government Code, and the public information law, Chapter 552, Government Code. Added...
- Texas Section 501.073 - Supervision By Authorizing Unit
(a) The corporation's authorizing unit will approve all programs and expenditures of a corporation and annually review any financial statements of the corporation. (b) A...
- Texas Section 501.074 - Purchasing
A corporation may use the reverse auction procedure defined by Section 2155.062(d), Government Code, for purchasing. Added by Acts 2007, 80th Leg., R.S., Ch. 885...
SUBCHAPTER C AUTHORIZED PROJECTS
- Texas Section 501.075 - Exemption From Taxation
(a) The activities of a corporation affect all the residents of the corporation's authorizing unit by the corporation's assuming to a material extent what otherwise...
- Texas Section 501.101 - Projects Related To Creation Or Retention Of Primary Jobs
In this subtitle, "project" includes the land, buildings, equipment, facilities, expenditures, targeted infrastructure, and improvements that are: (1) for the creation or retention of primary...
- Texas Section 501.102 - Projects Related To Certain Job Training
In this subtitle, "project" includes job training required or suitable for the promotion of development and expansion of business enterprises and other enterprises described by...
- Texas Section 501.103 - Certain Infrastructure Improvement Projects
In this subtitle, "project" includes expenditures that are found by the board of directors to be required or suitable for infrastructure necessary to promote or...
- Texas Section 501.104 - Projects Related To Certain Military Bases Or Missions
In this subtitle, "project" includes the infrastructure, improvements, land acquisition, buildings, or expenditures that: (1) are for the creation or retention of primary jobs or...
- Texas Section 501.105 - Career Center Projects Outside Of Junior College District
In this subtitle, "project" includes the land, buildings, equipment, facilities, improvements, and expenditures found by the board of directors to be required or suitable for...
- Texas Section 501.106 - Airport Facilities Or Other Projects By Corporations Authorized By Certain Border Municipalities
(a) This section applies only to a corporation authorized to be created by a municipality, any part of which is located within 25 miles of...
- Texas Section 501.107 - Infrastructure Projects By Corporations Authorized By Municipalities In Certain Border Counties
(a) This section applies only to a corporation that: (1) is authorized to be created by a municipality wholly or partly located in a county...
SUBCHAPTER D CORPORATE POWERS AND LIMITATIONS RELATING TO PROJECTS
- Texas Section 501.108 - Infrastructure Improvement Projects By Corporations Authorized By Certain Coastal Municipalities
(a) This section applies only to a corporation the creation of which was authorized by a municipality that: (1) has a population of 10,000 or...
- Texas Section 501.151 - Authority To Finance Project
A corporation is a constituted authority for the purpose of financing one or more projects. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B....
- Texas Section 501.152 - Definition Of Cost With Respect To Project
In this subtitle, "cost," with respect to a project, means the cost of the acquisition, cleanup, construction, reconstruction, improvement, or expansion of a project, including:...
- Texas Section 501.153 - Lease Or Sale Of Project
(a) A corporation may: (1) lease all or any part of a project to a user, for the rental and on the terms that the...
- Texas Section 501.154 - Conveyance Of Property To Institution Of Higher Education
With respect to a project, a corporation may donate, exchange, convey, sell, or lease land, improvements, or any other interest in real property, fixtures, furnishings,...
- Texas Section 501.155 - Loan To Finance Project
(a) A corporation may make a secured or unsecured loan to a user for the purpose of providing temporary or permanent financing or refinancing of...
- Texas Section 501.156 - Agreement Must Benefit Corporation
An agreement relating to a project must be for the benefit of the corporation. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278),...
- Texas Section 501.157 - Default On Agreement; Enforcement
An agreement relating to a project must provide that if a default occurs in the payment of the principal of or the interest or premium...
- Texas Section 501.158 - Performance Agreements
(a) A corporation may not provide a direct incentive to or make an expenditure on behalf of a business enterprise under a project as defined...
- Texas Section 501.159 - Powers Concerning Projects; Jurisdiction
(a) A corporation may acquire, by construction, devise, purchase, gift, lease, or otherwise, or any one or more of those methods and may construct, improve,...
- Texas Section 501.160 - Owning Or Operating Project As Business
(a) Except as provided by Subsection (d), a corporation may not own or operate a project as a business other than: (1) as a lessor,...
- Texas Section 501.161 - Certain Economic Incentives Prohibited
(a) In this section, "related party" means a person who owns at least 80 percent of the business enterprise to which the sales and use...
- Texas Section 501.162 - Use Of Tax Revenue For Job Training
A corporation may spend tax revenue received under this subtitle for job training offered through a business enterprise only if the business enterprise has committed...
- Texas Section 501.163 - Use Of Tax Revenue For Job-related Skills Training By Certain Corporations
(a) This section applies only to a corporation the creation of which was authorized by a municipality that: (1) has a population of 10,000 or...
SUBCHAPTER E CORPORATE POWERS AND LIMITATIONS RELATING TO BONDS
- Texas Section 501.164 - Use Of Tax Revenue For Housing Facilities For Public State Colleges
(a) In this section: (1) "Housing facility" has the meaning assigned by Section 53.02, Education Code. (2) "Public state college" has the meaning assigned by...
- Texas Section 501.201 - Authority To Issue Bonds
(a) A corporation may issue bonds to defray all or part of the cost of a project, regardless of whether the bonds are wholly or...
- Texas Section 501.202 - Terms
Bonds issued by a corporation must be dated and must mature in not more than 40 years. Added by Acts 2007, 80th Leg., R.S., Ch....
- Texas Section 501.203 - Securities Commissioner Permit To Sell Securities Required
A corporation may not sell or offer for sale bonds or other securities until the securities commissioner grants a permit authorizing the corporation to offer...
- Texas Section 501.204 - Authorizing Unit's Approval Of Bonds
(a) A corporation may not deliver bonds, including refunding bonds, unless the governing body of the corporation's authorizing unit adopts a resolution, not earlier than...
- Texas Section 501.205 - Bond Counsel And Financial Advisors
Bond counsel and financial advisors participating in a bond issue must be mutually acceptable to the corporation and the user. Added by Acts 2007, 80th...
- Texas Section 501.206 - Money Used To Pay Bonds
The principal of and interest on bonds issued by a corporation are payable only from the money provided for that payment and from the revenue...
- Texas Section 501.207 - Bonds Not Debt Of State Or Authorizing Unit
(a) Bonds issued under this subtitle are not a debt or pledge of the faith and credit of this state, the authorizing unit of the...
- Texas Section 501.208 - Bond Security; Default
(a) The principal of and interest on any bonds issued by a corporation shall be secured by a pledge of the revenues and receipts derived...
- Texas Section 501.209 - Trust Agreement
(a) Bonds issued under this subtitle may be secured by a trust agreement between the corporation and a trust company or bank having the powers...
- Texas Section 501.210 - Financial Assurance Or Responsibility Requirements For Certain Projects
(a) The resolution or mortgage described by Section 501.208(c) may contain any agreement or provision for satisfying the financial assurance or responsibility requirements applicable to...
- Texas Section 501.211 - Use Of Bond Proceeds
(a) The proceeds of the bonds of each issue shall be: (1) used to pay or make a loan in the amount of all or...
- Texas Section 501.212 - Interim Bonds
(a) Before the preparation of definitive bonds, the corporation may, under like restrictions, issue interim bonds that may be exchanged for definitive bonds when the...
- Texas Section 501.213 - Refunding Bonds
(a) A corporation may provide by resolution for the issuance of refunding bonds: (1) to refund outstanding bonds issued under this subtitle for a project,...
SUBCHAPTER F ADMINISTRATION BY ECONOMIC DEVELOPMENT OFFICE
- Texas Section 501.214 - Sale Or Exchange Of Bonds
With respect to a project, a corporation may: (1) sell bonds; or (2) exchange bonds for property, labor, services, material, or equipment comprising a project...
- Texas Section 501.251 - State Standards For Project Eligibility
The economic development office shall adopt rules providing minimum standards for project eligibility. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec....
- Texas Section 501.252 - State Standards And Guidelines For Lease, Sale, Or Loan Agreements
(a) The economic development office shall adopt rules: (1) providing minimum standards for lease, sale, and loan agreements entered into under this subtitle; and (2)...
- Texas Section 501.253 - Rules For Small Business Programs
The economic development office shall adopt rules governing programs for small businesses receiving loans guaranteed wholly or partly by the United States Small Business Administration...
- Texas Section 501.254 - Filing Of Rules And Guidelines With Secretary Of State
Rules and guidelines adopted by the economic development office and amendments to the rules and guidelines take effect only after the filing of the rules...
- Texas Section 501.255 - Approval Of Lease, Sale, Or Loan Agreement
(a) A lease, sale, or loan agreement entered into under this subtitle must be approved by the economic development office. The economic development office may...
- Texas Section 501.256 - Approval Of Bonds By Economic Development Office
(a) A corporation may submit a transcript of proceedings in connection with the issuance of bonds to the economic development office and request that the...
- Texas Section 501.257 - Filing Of Fee Schedule And Bond Procedures
The economic development office by rule shall require a corporation to file fee schedules and bond procedures. Added by Acts 2007, 80th Leg., R.S., Ch....
SUBCHAPTER G AMENDMENT OR RESTATEMENT OF
- Texas Section 501.258 - Delegation Of Authority
The economic development office may delegate to the executive director of the office the authority to approve a lease, sale, or loan agreement made under...
- Texas Section 501.301 - Amendment By Board Of Directors
(a) The board of directors of a corporation at any time may file with the governing body of the corporation's authorizing unit a written application...
- Texas Section 501.302 - Amendment By Unit
The governing body of the authorizing unit of a corporation, at the unit's sole discretion, may in accordance with this subchapter amend the corporation's certificate...
- Texas Section 501.303 - Amendment To County Alliance Corporation's Certificate Of Formation
An amendment to the certificate of formation of a county alliance corporation may not be adopted unless approved by the governing body of each member...
- Texas Section 501.304 - Contents Of Certificate Of Amendment
The certificate of amendment must: (1) state the name of the corporation; (2) if the amendment alters a provision of the certificate of formation, identify...
- Texas Section 501.305 - Execution And Verification Of Certificate Of Amendment
(a) A certificate of amendment shall be executed: (1) on behalf of the corporation by the president or a vice president of the corporation and...
- Texas Section 501.306 - Delivery And Filing Of Certificate Of Amendment
(a) Three originals of the certificate of amendment shall be delivered to the secretary of state. (b) If the secretary of state determines that the...
- Texas Section 501.307 - Suits Or Rights Not Affected
(a) An amendment to a corporation's certificate of formation does not affect: (1) any existing cause of action in favor of or against the corporation;...
- Texas Section 501.308 - Restated Certificate Of Formation
A corporation may authorize, execute, and file a restated certificate of formation by following the procedure to amend the certificate of formation provided by this...
- Texas Section 501.309 - Restatement Without Additional Amendment
(a) A corporation may, without making any additional amendment, restate the entire text of the certificate of formation as amended or supplemented by all certificates...
- Texas Section 501.310 - Restatement With Additional Amendment
(a) A corporation may: (1) restate the entire text of the certificate of formation as amended or supplemented by all certificates evidencing the filing of...
- Texas Section 501.311 - Change In Certain Information Not Amendment
For purposes of restating the certificate of formation under Sections 501.309 and 501.310, substituting the current number, names, and addresses of the directors for similar...
- Texas Section 501.312 - Execution And Verification Of Restated Certificate Of Formation
(a) Originals of the restated certificate of formation shall be executed on behalf of the corporation by the president or a vice president of the...
- Texas Section 501.313 - Delivery And Filing Of Restated Certificate Of Formation
(a) Three originals of the restated certificate of formation shall be delivered to the secretary of state. (b) If the secretary of state determines that...
SUBCHAPTER H REGISTERED OFFICE AND AGENT; SERVICE OF PROCESS
- Texas Section 501.314 - Effect Of Issuance Of Certificate Evidencing Filing Of Restated Certificate Of Formation
On the issuance of the certificate evidencing the filing of the restated certificate of formation by the secretary of state: (1) the original certificate of...
- Texas Section 501.351 - Registered Office And Agent
(a) A corporation shall continuously maintain in this state a registered office and registered agent. (b) A corporation's registered office may, but is not required...
- Texas Section 501.352 - Change Of Registered Office Or Agent
(a) A corporation may change its registered office or registered agent by filing in the office of the secretary of state a statement declaring: (1)...
- Texas Section 501.353 - Resignation Of Registered Agent
(a) A corporation's registered agent may resign by: (1) giving written notice to the corporation at the corporation's last known address; and (2) giving three...
SUBCHAPTER I ALTERATION OR TERMINATION OF CORPORATION
- Texas Section 501.354 - Agents For Service
(a) The president, each vice president, and the registered agent of a corporation are the corporation's agents on whom a process, notice, or demand required...
- Texas Section 501.401 - Alteration Or Termination By Authorizing Unit
(a) At any time a corporation's authorizing unit, in its sole discretion, may in accordance with this subtitle: (1) alter the corporation's structure, organization, programs,...
- Texas Section 501.402 - Termination Of Corporation On Completion Of Purpose
The board of directors of a corporation, with the approval by written resolution of the corporation's authorizing unit, shall terminate the corporation's existence as provided...
- Texas Section 501.403 - Execution Of Certificate Of Termination
A certificate of termination shall be executed: (1) on behalf of the corporation by the president or a vice president of the corporation and by...
- Texas Section 501.404 - Delivery And Filing Of Certificate Of Termination
(a) Three originals of the certificate of termination shall be delivered to the secretary of state. (b) If the secretary of state determines that the...
- Texas Section 501.405 - Effect Of Issuance Of Certificate Evidencing Filing Of Certificate Of Termination
The corporate existence ends on the issuance of the certificate evidencing the filing of the certificate of termination except for the purpose of: (1) any...
- Texas Section 501.406 - Assets On Termination
On termination the title to all funds and property owned by the corporation is transferred to the corporation's authorizing unit. Added by Acts 2007, 80th...
SUBCHAPTER J HURRICANE IKE DISASTER RELIEF
- Texas Section 501.407 - Termination With Transfer Of Assets To Type A Corporation
On approval of the governing bodies of each unit and corporation involved, a corporation that is not a Type A corporation may transfer all of...
- Texas Section 501.451 - Applicability
This subchapter applies only to a corporation the creation of which was authorized by a unit wholly or partly located in the Hurricane Ike disaster...
- Texas Section 501.452 - Projects Related To Hurricane Ike Disaster Area
For a corporation to which this subchapter applies, in this subtitle, "project": (1) includes an undertaking the costs of which are eligible to be paid...
- Texas Section 501.453 - Projects Not Administered By Economic Development Office
A project authorized under this subchapter and bonds issued to pay all or part of the cost of a project under this subchapter are not...