HBA-BSM, MPM H.B. 282 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 282 By: Homer Economic Development 4/2/2001 Introduced BACKGROUND AND PURPOSE Under the Development Corporation Act of 1979, local businesses collect the tax levied for use by industrial development corporations (IDC) to recruit new businesses to the local area. Currently, an IDC may use these funds to bring a competing business into the local area under terms which may create an unequal playing field with the original businesses. House Bill 282 prohibits an IDC from selling an asset at a cost lower than the IDC invested in the asset to a new business enterprise that would compete with an existing local business. 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. ANALYSIS House Bill 282 amends the Development Corporation Act of 1979 to prohibit a 4B industrial development corporation (IDC) from selling an asset for less than the amount invested by the IDC to a business enterprise that has not previously done business within the boundaries of the city that created the IDC and that would directly compete with an existing business located within the boundaries of the city that created the IDC. A sale which violates this provision is void. EFFECTIVE DATE September 1, 2001.