Honorable Mike Jackson, Chair, Senate Committee on Economic Development
FROM:
John S O'Brien, Director, Legislative Budget Board
IN RE:
HB3302 by Reynolds (Relating to the authority of certain Type A economic development corporations to undertake certain categories of projects.), As Engrossed
No fiscal implication to the State is anticipated.
The bill would amend the Local Government Code to authorize certain Type A corporations to undertake any project a Type B corporation is authorized to undertake. The authorizing municipality would have the ability to revoke the distinction for an individual corporation. The provisions of the bill would apply only to a city with a population of 7,500 or less that has adopted both the 4A and 4B corporations.
Local Government Impact
The Texas Municipal League (TML) reported that under current law, cities can adopt, by election, either 4A or 4B Economic Development Corporations (corporation). The types of projects that can be undertaken by a 4B corporation are broader than those of a 4A corporation and under the provisions of the bill, a 4A corporation would be authorized to undertake the same projects as a 4B corporation. The fiscal impact to cities is not anticipated to be significant.