CHAPTER 506. COUNTY ALLIANCE CORPORATIONS
LOCAL GOVERNMENT CODE
TITLE 12. PLANNING AND DEVELOPMENT
SUBTITLE C1. ADDITIONAL PLANNING AND DEVELOPMENT PROVISIONS
APPLYING TO MORE THAN ONE TYPE OF LOCAL GOVERNMENT
CHAPTER 506. COUNTY ALLIANCE CORPORATIONS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 506.001. DEFINITION. In this chapter, "county alliance
corporation" means the corporation authorized to be created by a
county alliance.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
Sec. 506.002. CREATION OF COUNTY ALLIANCE; AUTHORITY TO CREATE
CORPORATION. Two or more counties that are adjacent or in close
proximity, as determined by the commissioners courts of the
counties involved, may establish a county alliance to authorize
the creation of a corporation.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
Sec. 506.003. STATUS OF COUNTY ALLIANCE AS SINGLE UNIT. For
purposes of this subtitle, a county alliance is considered a
single unit.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
Sec. 506.004. APPLICABILITY OF SUBTITLE. The provisions of this
subtitle outside of this chapter apply to a county alliance and
to a county alliance corporation, except to the extent
inconsistent with this chapter or another provision of this
subtitle that expressly applies to a county alliance or to a
county alliance corporation.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
SUBCHAPTER B. GOVERNANCE OF CORPORATION
Sec. 506.051. APPOINTMENT OF DIRECTORS; TERM. (a) The board of
directors of a county alliance corporation consists of directors
appointed by the commissioners court of each county in the
alliance as follows:
(1) three directors from each county if the alliance includes 10
or fewer counties; or
(2) two directors from each county if the alliance includes more
than 10 counties.
(b) A director may not serve more than six years.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
Sec. 506.052. NO COMPENSATION; REIMBURSEMENT FOR EXPENSES. A
director serves without compensation but is entitled to
reimbursement for expenses incurred in the performance of the
director's duties.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
Sec. 506.053. REMOVAL OF DIRECTOR. A director is subject to
removal at the will of the appointing county.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
SUBCHAPTER C. MEMBERSHIP IN COUNTY ALLIANCE
Sec. 506.101. MEMBERSHIP IN ESTABLISHED COUNTY ALLIANCE. A
county may become a member of an established county alliance that
has authorized the creation of a county alliance corporation.
The county becomes a member of the county alliance if:
(1) the commissioners court of the county proposing to join the
county alliance petitions the board of directors of the
established county alliance corporation for admission;
(2) the board approves the admission of the petitioning county;
and
(3) the petitioning county:
(A) agrees to abide by the bylaws of the county alliance
corporation;
(B) pays a fee to the county alliance as determined by the
board; and
(C) meets any other requirement established by the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
Sec. 506.102. WITHDRAWAL FROM COUNTY ALLIANCE. (a) A county
may withdraw from a county alliance if all of the county's
obligations and entitlements relating to the county alliance
corporation have been properly settled.
(b) The county withdrawing from the county alliance may not
receive any assets, including money or other property, of the
county alliance corporation until the existence of the
corporation is terminated as provided by Section 506.202.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 506.151. DISTRIBUTION OF NET EARNINGS. If the board of
directors of a county alliance corporation determines that
sufficient provisions have been made to pay the corporation's
expenses, bonds, and other obligations, any net earnings may be
distributed among the counties in the county alliance as a
percentage of the per capita contributions made by each of the
counties during the corporation's existence.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
SUBCHAPTER E. TERMINATION OF CORPORATION
Sec. 506.201. EFFECT OF WITHDRAWAL OF COUNTY. A county alliance
corporation is not required to terminate its existence as a
result of the withdrawal of a county from the county alliance if
at least two counties remain in the county alliance.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
Sec. 506.202. DISTRIBUTION OF ASSETS. (a) Subject to
Subsection (b), on termination of the existence of a county
alliance corporation, any assets of the corporation remaining
after all the corporation's obligations have been met shall be
distributed among the counties in the county alliance as a
percentage of the per capita contributions made by each of the
counties during the corporation's existence.
(b) A county that withdraws from a county alliance is entitled
to receive a distribution under Subsection (a) that is reduced by
one percent for each year the corporation operated without the
county's membership in the alliance.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.