SRC-DPW H.B. 2434 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2434
76R8531 TBy: Uher (Moncrief)
Intergovernmental Relations
5/10/1999
Engrossed


DIGEST 

Currently, Texas law authorizes the establishment of economic development
corporations (EDC).  An EDC is closely connected to the city, county, or
district (unit) in which it is formed.  An EDC provides insurance coverage
to its employees separate from the unit and, because the EDC is a small
employer, insurance coverage is more expensive than that of the unit.  This
bill would authorize an EDC, with the consent of the unit, to obtain
insurance coverage for its employees and their dependants under the unit's
insurance coverage. 

PURPOSE

As proposed, H.B. 2434 authorizes certain coverages to be extended to
corporations created by certain political subdivisions under this Act.   

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 23, Article 5190.6, V.T.C.S. (Development
Corporation Act of 1979), by adding Subsection (c), to authorize any
corporation created by a unit under this Act, with the consent of the unit,
to obtain health benefits coverage, liability coverage, workers'
compensation coverage, and property coverage under the unit's insurance
policies, self-funded coverage, or coverage provided under an Interlocal
Agreement with other political subdivisions.  Authorizes health benefits
coverage to be extended to the corporation's directors, employees and their
dependants.  Authorizes workers' compensation benefits to be extended to
the corporation's directors, employees, and volunteers. Authorizes
liability coverage to be extended to protect the corporation and its
directors and employees. 

SECTION 2.Emergency clause.
  Effective date: upon passage.