SRC-DBM H.B. 1543 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1543
76R8847  WP-DBy: Keffer (Fraser)
Economic Development
5/9/1999
Engrossed


DIGEST 

Currently, an individual must be a "city resident" to legally serve as a
director of a 4B development corporation.  This contrasts with the
qualifications for a 4A development corporation, which is not limited to
residents of the city creating the corporation.  This requirement can be
burdensome for small rural communities and limits the availability of
qualified candidates.  H.B. 1543 would regulate residency requirements of
directors of certain economic development corporations. 

PURPOSE

As proposed, H.B. 1543 regulates residency requirements of directors of
certain economic development corporations. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 4B(c), Article 5190.6, V.T.C.S. (Development
Corporation Act of 1979), to require each director of a corporation created
by an eligible city with a population of 10,000 or more to be a resident of
the eligible city. Requires each director of a corporation created by an
eligible city with a population of less than 10,000 to be a resident of the
eligible city or the county in which the major part of the area of the
eligible city is located.   

SECTION 2.Effective date: September 1, 1999.

SECTION 3.Emergency clause.