BILL ANALYSIS


                                                         S.B. 915
                                                      By: Haywood
                                                    State Affairs
                                                          4-22-95
                                     Committee Report (Unamended)
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.