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


Office of House Bill AnalysisH.B. 3178
By: Solis, Jim
Economic Development
4/3/2001
Introduced



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 (IDCs) to complete a training seminar on the
operation and administration of IDCs may result in more effective use of
this revenue.  House Bill 3178 requires certain persons associated with
IDCs 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 (department), 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 an industrial
development corporation (IDC) created by a municipality or county and the
officials of the municipality or county that created an IDC under the
Development Corporation Act of 1979 (Act) properly and legally operate the
IDC and administer a tax imposed for the benefit of the IDC.  The
department is authorized to include in the seminar any information
regarding training programs offered by the department, the attorney
general, or the comptroller that would assist a person attending the
seminar with the operation and administration of an IDC.  The bill requires
the department to issue a certificate of completion to each person who
completes the seminar.  The bill also requires the department to hold the
seminars in different regions of the state for the convenience of persons
required to complete the seminar.   

The bill amends the Act to require the city attorney or the city
administrator of a city that created an IDC, the county clerk or the county
attorney of a county that created an IDC, and the executive director of an
IDC or other person who is responsible for the daily administration of an
IDC to attend a seminar at least once in each 24-month period.  An IDC 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 an
IDC that fails to present proof of compliance.  An IDC 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 the
effective date of the bill must do so before January 1, 2004.   

EFFECTIVE DATE

September 1, 2001.