Texas Local Government Code Title 12, Chapter 505 - Type B Corporations

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 505.001 - Definition
  In this chapter, "authorizing municipality" means the municipality that authorizes the creation of a Type B corporation. Added by Acts 2007, 80th Leg., R.S., Ch....
• Texas Section 505.002 - Applicability Of Chapter
  This chapter applies only to: (1) a municipality: (A) that is located in a county with a population of 500,000 or more; and (B) in...
• Texas Section 505.003 - Authority To Create Corporation
  (a) A municipality may authorize the creation under this subtitle of a Type B corporation. (b) A municipality may not authorize the creation of more...
• Texas Section 505.004 - Contents Of Certificate Of Formation
  The certificate of formation of a Type B corporation: (1) must state that the corporation is governed by this chapter; and (2) may include in...

SUBCHAPTER B GOVERNANCE OF CORPORATION

• Texas Section 505.005 - Corporation Not Subject To Certain Provisions
  Sections 501.203, 501.205, 501.251-501.254, 501.255(a) and (b), 501.256, and 501.257 do not apply to a corporation under this chapter. Added by Acts 2007, 80th Leg.,...
• Texas Section 505.051 - Board Of Directors
  (a) The board of directors of a Type B corporation consists of seven directors. (b) A director is appointed by the governing body of the...
• Texas Section 505.052 - Restriction On Board Membership
  (a) Each director of a Type B corporation authorized to be created by a municipality with a population of 20,000 or more must be a...
• Texas Section 505.053 - Officers
  The board of directors of a Type B corporation shall appoint: (1) a president; (2) a secretary; and (3) other officers of the corporation the...
• Texas Section 505.054 - Quorum
  A majority of the entire membership of the board of directors of a Type B corporation is a quorum. Added by Acts 2007, 80th Leg.,...
• Texas Section 505.055 - Location Of Board Meetings
  (a) Except as provided by Subsection (b), the board of directors of a Type B corporation shall conduct all meetings within the boundaries of the...

SUBCHAPTER C POWERS AND DUTIES

• Texas Section 505.056 - Restrictions On Registered Agent And Office
  (a) The registered agent of a Type B corporation must be an individual who is a resident of this state. (b) The registered office of...
• Texas Section 505.101 - Applicability Of Other Law; Conflicts
  A Type B corporation has the powers granted by this chapter and by other chapters of this subtitle and is subject to the limitations of...
• Texas Section 505.102 - Contract With Other Private Corporation
  A Type B corporation may contract with another private corporation to: (1) carry out an industrial development program or objective; or (2) assist with the...
• Texas Section 505.103 - Limitation On Use Of Revenues For Promotional Purposes
  A Type B corporation may spend not more than 10 percent of the corporate revenues for promotional purposes. Added by Acts 2007, 80th Leg., R.S.,...
• Texas Section 505.104 - Bond Repayment
  (a) Bonds or other obligations that mature in 30 years or less and that are issued to pay the costs of projects of a type...
• Texas Section 505.1041 - Appraisal Required Before Purchase Of Property With Bond Proceeds
  A Type B corporation may not purchase property for a project wholly or partly with bond proceeds until the corporation obtains an independent appraisal of...
• Texas Section 505.105 - Eminent Domain
  A Type B corporation may exercise the power of eminent domain only: (1) on approval of the action by the governing body of the authorizing...

SUBCHAPTER D AUTHORIZED PROJECTS

• Texas Section 505.106 - Liability
  (a) The following are not liable for damages arising from the performance of a governmental function of a Type B corporation or the authorizing municipality:...
• Texas Section 505.151 - Authorized Projects
  In this chapter, "project" means land, buildings, equipment, facilities, expenditures, and improvements included in the definition of "project" under Chapter 501, including: (1) job training...
• Texas Section 505.152 - Projects Related To Recreational Or Community Facilities
  For purposes of this chapter, "project" includes land, buildings, equipment, facilities, and improvements found by the board of directors to be required or suitable for...
• Texas Section 505.153 - Projects Related To Affordable Housing
  For purposes of this chapter, "project" includes land, buildings, equipment, facilities, and improvements found by the board of directors to be required or suitable for...
• Texas Section 505.154 - Projects Related To Water Supply Facilities And Water Conservation Programs
  For purposes of this chapter, "project" includes land, buildings, equipment, facilities, and improvements found by the board of directors to be required or suitable for:...
• Texas Section 505.155 - Projects Related To Business Enterprises That Create Or Retain Primary Jobs
  For purposes of this chapter, "project" includes land, buildings, equipment, facilities, and improvements found by the board of directors to promote or develop new or...
• Texas Section 505.156 - Projects Related To Business Enterprises In Certain Municipalities
  For purposes of this chapter, "project" includes land, buildings, equipment, facilities, and improvements found by the board of directors to be required or suitable for...
• Texas Section 505.1561 - Projects Related To Airport Facilities In Certain Municipalities
  For purposes of this chapter, "project" includes land, buildings, equipment, facilities, and improvements found by the board of directors to be required or suitable for...
• Texas Section 505.157 - Projects Related To Business Enterprises In Landlocked Communities
  (a) In this section, "landlocked community" means a municipality that: (1) is wholly or partly located in a county with a population of two million...
• Texas Section 505.158 - Projects Related To Business Development In Certain Small Municipalities
  (a) For a Type B corporation authorized to be created by a municipality with a population of 20,000 or less, "project" also includes the land,...
• Texas Section 505.159 - Hearing Required To Undertake Project
  (a) Except as provided by Subsection (b), a Type B corporation shall hold at least one public hearing on a proposed project before spending money...
• Texas Section 505.160 - Election Required For Project; Petition
  (a) A Type B corporation may undertake a project under this chapter unless, not later than the 60th day after the date notice of the...

SUBCHAPTER E SPORTS VENUE PROJECTS AND RELATED INFRASTRUCTURE

• Texas Section 505.161 - Public Purpose Designation; Exemption From Taxation
  (a) The legislature finds for all constitutional and statutory purposes that: (1) a project of the type added to the definition of "project" by this...
• Texas Section 505.201 - Definitions
  In this subchapter: (1) "Related infrastructure" has the meaning assigned by Section 334.001. (2) "Sports venue" means an arena, coliseum, stadium, or other type of...
• Texas Section 505.202 - Election: Use Of Tax Proceeds For Sports Venue Projects
  (a) An authorizing municipality may submit to the voters of the municipality a ballot proposition that authorizes the Type B corporation to use the sales...
• Texas Section 505.203 - Public Hearing Preceding Election
  Before an election may be held under Section 505.202, a public hearing must be held in the authorizing municipality to inform the municipality's residents of...
• Texas Section 505.204 - Limitation On Subsequent Election
  If a majority of the voters voting on the issue do not approve a specific sports venue project or a specific category of sports venue...
• Texas Section 505.205 - Subsequent Approval Of Additional Projects
  Prior approval of a specific sports venue project at an election or completion of a specific sports venue project approved at an election does not...

SUBCHAPTER F SALES AND USE TAX

• Texas Section 505.206 - Effect Of Subchapter On Election Authority
  This subchapter does not affect an authorizing municipality's authority to call an election under this chapter to impose a sales and use tax for any...
• Texas Section 505.251 - Tax Authorized
  The governing body of the authorizing municipality by ordinance may adopt a sales and use tax for the benefit of a Type B corporation if...
• Texas Section 505.252 - Sales Tax
  (a) If the authorizing municipality adopts the tax under Section 505.251, a tax is imposed on the receipts from the sale at retail of taxable...
• Texas Section 505.253 - Use Tax
  (a) If the authorizing municipality adopts the tax under Section 505.251, an excise tax is imposed on the use, storage, or other consumption within the...
• Texas Section 505.254 - Specification Of Tax Rate On Ballot
  In an election held to adopt the sales and use tax under this chapter, the ballot proposition must specify the rate of the tax to...
• Texas Section 505.255 - Adoption Of Tax At Election To Reduce Or Abolish Tax For Type A Corporation
  A municipality that holds an election to reduce the rate of or abolish a tax imposed under Chapter 504 may in the same proposition or...
• Texas Section 505.256 - Applicability Of Tax Code
  (a) Chapter 321, Tax Code, governs the imposition, computation, administration, collection, and remittance of the sales and use tax, except as inconsistent with this chapter....
• Texas Section 505.2565 - Limitation On Duration Of Tax
  (a) At an election held under Section 505.251, the authorizing municipality may also allow the voters to vote on a ballot proposition to limit the...
• Texas Section 505.257 - Reduction Of Tax Within Regional Transportation Authority
  Notwithstanding any other provision of this chapter, a tax imposed under this chapter by an authorizing municipality that is located within the territorial limits of...
• Texas Section 505.2575 - Limited Sales And Use Tax For Specific Project
  (a) At an election held under Section 505.251, the authorizing municipality may also allow the voters to vote on a ballot proposition to limit the...
• Texas Section 505.258 - Cessation Of Collection Of Taxes
  A sales and use tax imposed under this chapter may not be collected after the last day of the first calendar quarter that occurs after...

SUBCHAPTER G USE OF TAX PROCEEDS

• Texas Section 505.259 - Election Requirement For Certain Municipalities
  For a tax under this subchapter at a rate that does not exceed one-half of one percent, the election requirement under Section 505.251 is satisfied...
• Texas Section 505.301 - Delivery Of Tax Proceeds
  On the authorizing municipality's receipt from the comptroller of the proceeds of the sales and use tax imposed under this chapter, the authorizing municipality shall...
• Texas Section 505.302 - Payment Of Project Costs, Bonds, Or Other Obligations
  The proceeds of the sales and use tax imposed under this chapter may be used to: (1) pay the costs of projects of the types...
• Texas Section 505.303 - Payment Of Maintenance And Operating Costs; Election
  (a) The costs of a publicly owned and operated project purchased or constructed under this chapter include the maintenance and operating costs of the project....
• Texas Section 505.304 - Payment For Certain Water-related Projects: Election Required
  (a) A Type B corporation may not use proceeds from the sales and use tax to undertake a project described by Section 505.154 unless the...

SUBCHAPTER H TERMINATION OF CORPORATION

• Texas Section 505.305 - Payment For Cleanup Of Contaminated Property; Election
  (a) The economic development office, with the assistance of the Texas Commission on Environmental Quality, may encourage a Type B corporation to use proceeds from...
• Texas Section 505.351 - Applicability Of Subchapter
  This subchapter applies only to a Type B corporation created on or after September 1, 1999. Added by Acts 2007, 80th Leg., R.S., Ch. 885...
• Texas Section 505.352 - Election To Terminate Existence Of Corporation On Petition
  (a) The governing body of an authorizing municipality shall order an election on the termination of the existence of the Type B corporation on receipt...
• Texas Section 505.353 - Ballot
  The ballot for an election held under Section 505.352 shall be printed to permit voting for or against the proposition: "Termination of the __________ (name...
• Texas Section 505.354 - Termination Of Existence Of Corporation
  (a) If a majority of the votes cast at an election held under Section 505.352 approve the termination, the Type B corporation shall: (1) continue...
• Texas Section 505.355 - Election Rejecting Termination
  If less than a majority of the votes cast at an election held under Section 505.352 approve the termination, Section 505.354 has no effect. Added...

Last modified: September 28, 2016