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


Office of House Bill AnalysisH.B. 3298
By: Bonnen
Economic Development
3/22/2001
Introduced



BACKGROUND AND PURPOSE 

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

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 economic 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

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.