HBA-JLV H.B. 3298 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3298
By: Bonnen
Economic Development
7/17/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature there was legal ambiguity concerning whether
an industrial development corporation (IDC) could contribute its sales tax
proceeds to a not-for-profit economic development organization to
administer the IDC's economic development program.  House Bill 3298
clarifies the Development Corporation Act of 1979 to provide that the
revenues of a 4A or 4B IDC may be used to fund a not-for-profit economic
development organization that administers a program or objective of the
IDC.  

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 3298 amends the Development Corporation Act of 1979 to provide
that a 4A and 4B industrial development corporation is authorized to spend
no more than 10 percent of its corporate revenues for promotional purposes,
and is authorized to contract with another existing private corporation to
carry out an industrial development program or objective or to assist with
the development or operation of an economic development program or
objective consistent with the purposes and duties specified in this Act. 

EFFECTIVE DATE

June 14, 2001.