SRC-JEC H.B. 3298 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 3298
77R8209 CLG-FBy: Bonnen (Brown)
Intergovernmental Relations
5/6/2001
Engrossed


DIGEST AND PURPOSE 

Currently, there is ambiguity concerning whether an economic development
corporation may contribute its sales tax proceeds to a nonprofit economic
development organization to administer the corporation's economic
development program.  H.B 3298 clarifies the Development Corporation Act of
1979 to authorize such contributions in some circumstances. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 4A(b)(1), Development Corporation Act of 1979
(Article 5190.6, V.T.C.S.) to authorize a corporation created under this
section to contract with other existing private corporations to carry out
industrial development objectives or to assist with the development or
operation of an economic development program or objective consistent with
the purposes and duties as set out in this Act. 

SECTION 2.  Amends Section 4B(b), Article 5190.6, V.T.C.S., to prohibit a
corporation created under this section from spending more than 10 percent
of the corporate revenues for promotional purposes and authorizes such a
corporation to contract with another existing private corporation to carry
out an industrial development program or objective or to assist with the
development or operation of an economic development program or objective
consistent with the purposes and duties specified in this Act. 

SECTION 3.  Effective date: upon passage or September 1, 2001.