HBA-TYH H.B. 2614 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2614
By: Counts
Economic Development
4/5/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, Article 5190.6 (Development Corporation Act of 1979), V.T.C.S.,
allows a county or municipal corporation to charter a development
corporation.  There is no provision in the statute to allow a group of
counties to charter a development corporation.  H.B. 2614 creates a county
alliance, with the same powers, functions, and authorities as currently
granted to an individual county or municipality, to jointly authorize the
creation of a development corporation.   

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 Article 5190.6, V.T.C.S. (Development Corporation Act of
1979), by adding Section 4D, as follows: 

Sec. 4D.  COUNTY ALLIANCE.  (a)  Authorizes two or more counties that are
adjacent or have a commonality of interest, as determined by the governing
bodies of the counties involved, to create a county alliance to authorize
the creation of a corporation.  Provides that the county alliance is a
single unit for the purposes of this Act.  Provides that the other
provisions of this Act apply to the county alliance and a corporation
authorized by the county alliance, except to the extent inconsistent with
this section.  
 
(b)  Authorizes a county to become a member of a county alliance that has
authorized the creation of a corporation.  Authorizes a county to leave a
county alliance if all of the county's obligations and entitlements in
relation to the county alliance have been properly settled.  
 
(c)  Sets forth the composition of the board of directors of a corporation
authorized by a county alliance.  Prohibits a member of the board of
directors from serving more than six years and authorizes a member to be
removed at the will of the appointing county. Provides that the member
serves without compensation but is entitled to reimbursement for expenses
incurred in the performance of the member's duties.  
 
(d)  Requires any remaining assets of a corporation, on dissolution of the
corporation, to be distributed among the counties in the county alliance on
a per capita basis. 

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