HBA-TYH, NMO H.B. 2434 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2434
By: Uher
Urban Affairs
777/22/1999
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 76th Legislature, the law provided for the establishment of an
economic development corporation (EDC).  An EDC was closely connected to
the city, county, or district (unit) in which it was formed.  However, the
EDC provided insurance coverage to its employees separate from the unit
and, because the EDC was a small employer, insurance coverage was more
expensive than that of the unit.  H.B. 2434 authorizes an EDC, with the
consent of the unit, to obtain insurance coverage for its employees and
their dependents under the unit's insurance coverage.     

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 23, Article 5190.6, V.T.C.S. (Development
Corporation Act of 1979), by adding Subsections (c) and (d), as follows: 

(c) Authorizes any corporation created by a unit under this article, with
the consent of the unit, to obtain health benefits coverage, liability
coverage, workers' compensation coverage, and property coverage under the
unit's insurance policies, self-funded coverage, or coverage provided under
an interlocal agreement with other political subdivisions.  Authorizes
health benefits coverage to be extended to the corporation's directors and
employees, and their dependents.  Authorizes workers' compensation benefits
to be extended to the corporation's directors, employees, and volunteers.
Authorizes liability coverage to be extended to protect the corporation and
its directors and employees. 

(d)  Provides that notwithstanding any law to the contrary, any corporation
created by a unit under this article is authorized, with the consent of the
unit, to obtain retirement benefits under any retirement program operated
or participated in by the unit.  Authorizes retirement benefits to be
extended to the corporation's employees. 

SECTION 2.Emergency clause.
  Effective date: upon passage.