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.