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


Office of House Bill AnalysisC.S.H.B. 3178
By: Solis, Jim
Economic Development
4/20/2001
Committee Report (Substituted)


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.  C.S.H.B. 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

C.S.H.B. 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 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 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 a development
corporation.  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
department is authorized to enter into an agreement for the provision of a
seminar by any person determined by the department 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 the
effective date of the bill must do so before January 1, 2004.   

 



EFFECTIVE DATE

September 1, 2001.


COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3178 modifies the original to specify that the Texas Department of
Economic Development (department) is authorized to enter into an agreement
for the provision of a training seminar.  The substitute authorizes a
person who provides a training seminar to charge a reasonable fee for
attending the seminar.  The substitute adds the city clerk of a city that
created a development corporation to the list of persons who are required
to attend a seminar at least once in each 24-month period.  The substitute
specifies that the training requirements only apply to 4A and 4B
development corporations and any entity that creates a 4A or 4B development
corporation.