HBA-JLV H.B. 3298 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 3298 By: Bonnen Economic Development 7/17/2001 Enrolled BACKGROUND AND PURPOSE Prior to the 77th Legislature there was legal ambiguity concerning whether an industrial development corporation (IDC) could contribute its sales tax proceeds to a not-for-profit economic development organization to administer the IDC's economic development program. House Bill 3298 clarifies the Development Corporation Act of 1979 to provide that the revenues of a 4A or 4B IDC may be used to fund a not-for-profit economic development organization that administers a program or objective of the IDC. 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 3298 amends the Development Corporation Act of 1979 to provide that a 4A and 4B industrial development corporation is authorized to spend no more than 10 percent of its corporate revenues for promotional purposes, and is authorized 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. EFFECTIVE DATE June 14, 2001.