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.