HBA-NLM S.B. 918 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 918
By: Wentworth
Economic Development
5/7/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, certain provisions of the Development Corporation Act (Act) of
1979 exclude certain cities from being able to form a corporation in order
to promote economic development in the municipality.  The purpose of this
bill is to redefine the eligibility requirements of municipalities to allow
such cities to create development corporations under the Act.  S.B. 918
redefines "eligible city" under the Act, to include a city that is not
otherwise covered under the Act and located in a county with a population
of  750,000 or more and in which the combined rate of certain sales and use
taxes does not exceed 8.25 percent. 

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 4B(a)(1), Development Corporation Act of 1979,
Article 5190.6, V.T.C.S., to redefine "eligible city" to mean a city that
is not covered by Paragraph (C) of this subdivision and is located in a
county with a population of 750,000 or more and in which the combined rate
of certain sales and use taxes does not exceed 8.25 percent, rather than
7.25 percent, on the date of any election held under or made applicable to
this section.  Deletes text providing that Paragraph (C) of this
subdivision expires September 1, 1999.  (Paragraph (C) provides that
"eligible city" means a city that is located in a county with a population
of more than 1,100,000 according to the most recent federal decennial
census, in which there are more than 29 incorporated municipalities
according to the most recent federal decennial census, and in which the
combined rate of all sales and use taxes imposed by the city, the state,
and other political subdivisions of the state having territory in the city
does not exceed 7.75 percent on the date of any election held under or made
applicable to this section.)   

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