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.