HBA-MPA H.B. 1543 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1543 By: Keffer Economic Development 3/3/1999 Introduced BACKGROUND AND PURPOSE Currently, a 4A development corporation may only be established in a city with a population under 50,000 or a county with a population of 500,000 or less. A 4B development may only be established in a city with a population over 400,000 or a county with a population of 750,000 or more. Both entities were created by the Development Corporation Act of 1979 (Article 5190.6, V.T.C.S.), to which changes have been made by subsequent legislatures, including the population restrictions. Certain of these corporations were chartered before these population restrictions were enacted in cities which do not meet these criteria. An individual must be a "city resident" to qualify to 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. This requirement can be burdensome for small rural communities in which many of the business owners and those with a stake in the community do not actually reside within the city limits. These candidates are, therefore, disqualified from serving on a 4B development corporation board, limiting the availability of qualified candidates. H.B. 1543 removes that restriction and thereby allow persons who are not city residents to serve on the board of directors development corporation created under Section 4B. As proposed this bill will affect all 4B development corporations. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 4B(c), Article 5190.6, V.T.C.S. (Development Corporation Act of 1979), to delete the provision that each member of the board of directors of an industrial development corporation organized under this section must be a resident of the eligible city. SECTION 2.Emergency clause. Effective date: upon passage.