JKM H.B. 777 75(R)BILL ANALYSIS ECONOMIC DEVELOPMENT H.B. 777 By: Tillery 4-1-97 Committee Report (Unamended) BACKGROUND Currently, Texas law excludes the City of Mesquite from adopting additional sales tax for economic development purposes. Mesquite is one of four cities in Texas which is a half cent under the constitutional sales tax limit of 8.25 percent, but is not eligible to use the available additional sales tax for economic development. This bill allows the citizens of Mesquite the choice of considering an additional sales tax. PURPOSE To redefine "eligible city" under Section 4B(a)(1)(C), Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes) to mean a city located in a county of more than 1.1 million people in which there are more than 29 incorporated municipalities. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sec. 4B (a)(1), article 5190.6, Vernon's Texas Civil Statutes. (Development Corporation Act of 1979), to provide that, among other qualifications, an "eligible city" is located in a county of more than 1.1 million people in which there are more than 29, instead of the existing language of 40, incorporated municipalities according to the most recent federal decennial census. Deletes text providing that Paragraph (C) of this subdivision expires September 1, 1997. SECTION 2. Emergency Clause. Effective date is upon passage.