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


Office of House Bill AnalysisH.B. 2434
By: Uher
Urban Affairs
3/30/1999
Introduced



BACKGROUND AND PURPOSE 

Current law provides for the establishment of an economic development
corporation (EDC).  An EDC is closely connected to the city, county, or
district (unit) in which it is formed.  However, the EDC provides insurance
coverage to its employees separate from the unit and, because the EDC is a
small employer, insurance coverage is 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 of 1979), by adding Subsection (c), as follows: 

(c) Authorizes any corporation created by a unit under this act, 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. 

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