HBA-NLM S.B. 269 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 269 By: Duncan Economic Development 3/11/1999 Engrossed BACKGROUND AND PURPOSE Currently, economic development corporations formed under Section 4A, Article 5190.6, V.T.C.S. (Development Corporation Act of 1979), are subject to dissolution by popular election. However, development corporations formed under Section 4B (which establishes the Texas Small Business Industrial Development Corporation) are not subject to popular dissolution. S.B. 269 provides a procedure for the popular dissolution of certain economic development corporations. 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, Article 5190.6, V.T.C.S. (Development Corporation Act of 1979), by amending Subsection (e), as amended by Chapter 1022, Acts of the 73rd Legislature, Regular Session, 1993, and adding Subsections (e-1) and (o), as follows: (e) Includes within the existing provisions of this subsection, that a corporation holding an election to abolish, in addition to an election to reduce, a tax imposed under Section 4A (Corporation in City Located in County with Population of 500,000 or Fewer or City with Population of Fewer than 50,000) of this Act may adopt a tax under this section either in the same or in a separate proposition, rather than only in a separate proposition, on the same ballot. Makes a nonsubstantive change. (e-1) Provides that if a city dissolves a corporation created under Section 4A of this Act and creates a corporation under this section, a person serving as a director of the corporation created under Section 4A of this Act at the time of dissolution is authorized to serve on the board of directors of the corporation created under this section, nothwithstanding any other provision of this section. (o) Requires the governing body of a city creating a corporation under this section to order an election on the dissolution as described by this section. Provides the election to be held on a certain date. Requires that the ballot be printed to permit voting for or against the proposition and sets forth language for the ballot. Requires the corporation to continue necessary operations to meet previous obligations of the corporation in the manner described by this section if the majority of the votes cast are in favor of the dissolution. Requires the corporation to liquidate corporate assets and apply the proceeds to satisfy the corporation's obligations. Prohibits the collection of a tax imposed under this section after the last day of the first calendar quarter that begins after the city provides notice of the dissolution. Provides that the provisions of this section have no effect if less than a majority of the votes cast at the election favor the dissolution. SECTION 2. Makes application of Subsection (o), as added by this Act, prospective. SECTION 3. Effective date: September 1, 1999. SECTION 4. Emergency clause.