BILL ANALYSIS State Affairs Committee By: Haywood (Seidlits) May 19, 1995 May 19, 1995 BACKGROUND The Development Corporation Act of 1979 was amended to provide a steady funding source through an incremental local sales tax. It is the role of current development corporations to provide economic development in the area they represent. Job creation is considered primary in their purpose. Frequently, these development corporations are presented with requests for financial assistance from individuals who are actively engaged in business or are contemplating starting a business. Most of the time these requests necessitate the economic development board review of the individual's and the business's private financial statements. Since the economic development board is a quasi-governmental body, it is subject to the Texas Open Meetings Act. Currently there is no provision in the Open Meetings Act to allow for a governmental body to meet in executive session for the purpose of discussing an individual's or a business's private financial statements. These statements generally include, but are not limited to, profit and loss statements, tax returns, listing of accounts receivable, and other financial data deemed relevant to the request for financial assistance. PURPOSE As proposed, S.B. 915 authorizes the board of directors of an industrial development corporation to conduct a closed meeting to deliberate information that pertains to the finances of an applicant for assistance from the corporation. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 551D, Government Code, by adding Section 551.085, as follows: Sec. 551.085. DELIBERATIONS OF INDUSTRIAL DEVELOPMENT CORPORATION; CLOSED MEETING. (a) Authorizes the board of directors of an industrial development corporation to conduct a closed meeting to deliberate information that pertains to the finances of an applicant for assistance from the corporation. (b) Defines "industrial development corporation." SECTION 2. Emergency clause. Effective date: upon passage. SUMMARY OF COMMITTEE ACTION SB 915 was considered by the Committee on State Affairs in a public hearing on May 9, 1995. The Chair laid out SB 915 and explained the bill. The Chair left SB 915 pending. SB 915 was considered by the Committee on State Affairs in a formal meeting on May 18, 1995. The Chair laid out SB 915. The bill was reported favorably without amendment, with the recommendation that it do pass and be printed, and be sent to the Committee on Local and Consent Calendars, by a record vote of: 14 ayes; 0 nays; 0 pnv; and 1 absent.