| TO: | Honorable John Carona, Chair, Senate Committee on S/C on Emerging Technologies & Economic Dev. |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | SB1318 by Staples ( relating to projects that may be undertaken by or supported by the tax proceeds of certain development corporations.), Committee Report 1st House, Substituted |
The bill would amend the Development Corporation Act of 1979 (the Act) found in Article 5190.6, Vernon's Texas Civil Statutes to allow city and county development corporations to undertake a wider range of projects related to the providing of infrastructure for business development. The definition of infrastructure would be amended to add sewer utilities, elevation, and sidewalks.
The bill would also amend the definition of project for Section 4B development corporations that received an average of less than $400,000 in sales tax revenues in the previous three years, allowing them to undertake projects that promote new or expanded business development
The Comptroller of Public Accounts reported that while the number of development corporations created by counties and cities statewide is unknown, city corporations created under Sections 4A and 4B of the Act are required to file an annual report with the Comptroller. For fiscal 2004, there were 517 cities with a 4A and/or 4B development corporation(s). It is unknown, however, how many development corporations would elect to undertake business development infrastructure projects.
This bill would take effect September 1, 2005.
| Source Agencies: | 304 Comptroller of Public Accounts
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| LBB Staff: | JOB, JRO, WP, EB
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