HBA-NLM S.B. 918 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 918 By: Wentworth Economic Development 5/7/1999 Engrossed BACKGROUND AND PURPOSE Currently, certain provisions of the Development Corporation Act (Act) of 1979 exclude certain cities from being able to form a corporation in order to promote economic development in the municipality. The purpose of this bill is to redefine the eligibility requirements of municipalities to allow such cities to create development corporations under the Act. S.B. 918 redefines "eligible city" under the Act, to include a city that is not otherwise covered under the Act and located in a county with a population of 750,000 or more and in which the combined rate of certain sales and use taxes does not exceed 8.25 percent. 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(a)(1), Development Corporation Act of 1979, Article 5190.6, V.T.C.S., to redefine "eligible city" to mean a city that is not covered by Paragraph (C) of this subdivision and is located in a county with a population of 750,000 or more and in which the combined rate of certain sales and use taxes does not exceed 8.25 percent, rather than 7.25 percent, on the date of any election held under or made applicable to this section. Deletes text providing that Paragraph (C) of this subdivision expires September 1, 1999. (Paragraph (C) provides that "eligible city" means a city that is located in a county with a population of more than 1,100,000 according to the most recent federal decennial census, in which there are more than 29 incorporated municipalities according to the most recent federal decennial census, and in which the combined rate of all sales and use taxes imposed by the city, the state, and other political subdivisions of the state having territory in the city does not exceed 7.75 percent on the date of any election held under or made applicable to this section.) SECTION 2. Emergency clause. Effective date: upon passage.