SRC-PNG S.B. 269 76(R)BILL ANALYSIS


Senate Research CenterS.B. 269
By: Duncan
Intergovernmental Relations
6/22/1999
Enrolled


DIGEST 

Currently, under Texas law, economic development corporations formed under
Section 4A, Article 5190.6, V.T.C.S. (Development Corporation Act of 1979),
are subject to dissolution by popular election.  Development corporations
formed under Section 4B are not subject to popular dissolution. This bill
provides a procedure for the popular dissolution of Section 4B development
corporations. 

PURPOSE

As enrolled, S.B. 269 provides a procedure for the popular dissolution 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, Article 5190.6, V.T.C.S. (Development
Corporation Act of 1979), by amending Subsection (e), and adding
Subsections (e-1) and (o) to authorize a corporation that holds an election
to reduce or abolish a tax imposed under Section 4A of this Act to adopt a
tax under this section in the same or in a separate proposition on the same
ballot.  Provides that if a city dissolves a corporation created under
Section 4A of this Act and creates a corporation under this section, a
person serving as a director of the corporation created under Section 4A of
this Act at the time of dissolution may serve on the board of directors of
the corporation. Requires the governing body of a city creating a
corporation under this section to order an election on the dissolution of
the corporation on receipt of a certain type of petition.  Requires the
election to be held on a certain date. Sets forth language for the ballot.
Requires the corporation, upon a vote for dissolution, to continue
operations only as long as necessary to meet obligations incurred prior to
the election date.  Requires the corporation to liquidate corporate assets
and apply the proceeds to satisfy the corporation's obligations.  Requires
any remaining assets to be transferred to the city after satisfaction of
all of the corporation's obligations, and the corporation is dissolved.
Requires the city to promptly notify the comptroller of public accounts and
the secretary of state of the dissolution date.  Prohibits a tax collected
under this section from being collected after a certain date.  Provides
that if less than a majority of  votes are cast in favor of dissolution,
Subdivisions (3) and (4) have no effect. 

SECTION 2. Makes application of this Act prospective.

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.