HBA-SEP H.B. 3178 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3178
By: Solis, Jim
Economic Development
7/16/2001
Enrolled


BACKGROUND AND PURPOSE 

Since 1989, voters in many Texas cities have had the option of imposing a
local sales and use tax to help finance community economic development
efforts.  Over 400 cities have levied this tax, helping to raise revenues
in an excess of $240 million in 1999.  Requiring persons associated with
development corporations to complete a training seminar on the operation
and administration of development corporations may result in more effective
use of this revenue.  House Bill 3178 requires certain persons associated
with development corporations to complete a seminar developed by the Texas
Department of Economic Development.    

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Department of Economic
Development in SECTION 1 (Section 481.0231, Government Code) of this bill.

ANALYSIS

House Bill 3178 amends the Government Code to require the Texas Department
of Economic Development (TDED), in conjunction with the attorney general
and the comptroller of public accounts (comptroller), to develop by rule a
training seminar to ensure that the officers of a development corporation
created by a municipality or county and the officials of the municipality
or county that created a development corporation under the Development
Corporation Act of 1979 (Act) properly and legally operate the development
corporation and administer a tax imposed for the benefit of the development
corporation.  The bill requires TDED to issue a certificate of completion
to each person who completes the seminar.  The bill also requires TDED to
hold the seminars in different regions of the state for the convenience of
persons required to complete the seminar.  TDED is authorized to enter into
an agreement for the provision of a seminar by any person determined by
TDED to be qualified.  The person is authorized to charge a reasonable fee
for attending the seminar.   

The bill amends the Act to require the city attorney, the city
administrator, or the city clerk of a city that created a 4A or 4B
development corporation, the county clerk or the county attorney of a
county that created a 4A or 4B development corporation, and the executive
director of a 4A or 4B development corporation or other person who is
responsible for the daily administration of a 4A or 4B development
corporation to attend a seminar at least once in each 24-month period.  A
development corporation is required to present proof of compliance to the
comptroller by presenting the certificates of completion for each person
that was required to attend the training seminar.  The comptroller is
authorized to impose an administrative penalty, not to exceed $1,000 for
each violation, against a development corporation that fails to present
proof of compliance.  A development corporation is authorized to spend
corporate revenue to pay the costs of attending a seminar.  The bill
provides that a person who is required to take a training seminar on
September 1, 2001 must do so before January 1, 2004.   

EFFECTIVE DATE

September 1, 2001.