SRC-PNG C.S.S.B. 918 76(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 918
76R10038 CLG-FBy: Wentworth
Intergovernmental Relations
4/8/1999
Committee Report (Substituted)


DIGEST 

Currently, under Texas law, the City of Leon Valley is excluded from being
able to form a Section 4B corporation in order to stimulate economic
development in that municipality.  This bill would redefine the eligibility
requirements of municipalities to create certain development corporations
under the Development Corporation Act. 

PURPOSE

As proposed, C.S.S.B. 918 redefines those municipalities who may be
eligible to create certain 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(a)(1), Article 5190.6, V.T.C.S. (Development
Corporation Act of 1979), to redefine "eligible city" to include a city
that is located in a county with a population of 750,000, or more, and in
which the combined rate of all sales and use taxes does not exceed 8.25
percent, rather than 7.75 percent, on a certain date, or a city that is
located in a county with a population of more than 1,100,000, in which
there are more than 20, rather than 29, incorporated municipalities, and in
which the combined rate of all sales and use taxes does not exceed 8.25
percent, rather than 7.75 percent, on a certain date.  Deletes text
providing that Paragraph (C) expires September 1, 1999.  Effective date: 90
days after adjournment. 

SUMMARY OF COMMITTEE CHANGES

SECTION 1. 

Amends Section 4B(a)(1), Article 5190.6, V.T.C.S. (Development Corporation
Act of 1979), to redefine "eligible city."