HBA-SEP H.B. 1710 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1710
By: Brimer
Ways & Means
3/15/2001
Introduced



BACKGROUND AND PURPOSE 

Current law places a $135 million aggregate limitation on the amount of
bonds and other obligations issued by a 4B development corporation in a
larger city to pay the costs of development corporation projects. However,
current law does not place a limit on the amount of bonds issued by a 4A
development corporation in a city with a population of less than 50,000 or
located in a county with a population of 500,000 or less.  House Bill 1710
removes the $135 million cap for a city that is located in a county with a
population of 750,000 or more or for a city that has a population of
400,000 or more.   

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. 

ANALYSIS

House Bill 1710 amends the Development Corporation Act of 1979 to remove
the $135 million cap for the principal amount of bonds and other
obligations payable from the sales and use tax, together with the amount of
the costs of the projects, other than interest on bonds and other
obligations, for which payment is made in cash directly from the proceeds
of tax. 

EFFECTIVE DATE

September 1, 2001.