HBA-TYH, NMO H.B. 2434 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2434 By: Uher Urban Affairs 777/22/1999 Enrolled BACKGROUND AND PURPOSE Prior to the 76th Legislature, the law provided for the establishment of an economic development corporation (EDC). An EDC was closely connected to the city, county, or district (unit) in which it was formed. However, the EDC provided insurance coverage to its employees separate from the unit and, because the EDC was a small employer, insurance coverage was more expensive than that of the unit. H.B. 2434 authorizes an EDC, with the consent of the unit, to obtain insurance coverage for its employees and their dependents under the unit's insurance coverage. 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 23, Article 5190.6, V.T.C.S. (Development Corporation Act of 1979), by adding Subsections (c) and (d), as follows: (c) Authorizes any corporation created by a unit under this article, with the consent of the unit, to obtain health benefits coverage, liability coverage, workers' compensation coverage, and property coverage under the unit's insurance policies, self-funded coverage, or coverage provided under an interlocal agreement with other political subdivisions. Authorizes health benefits coverage to be extended to the corporation's directors and employees, and their dependents. Authorizes workers' compensation benefits to be extended to the corporation's directors, employees, and volunteers. Authorizes liability coverage to be extended to protect the corporation and its directors and employees. (d) Provides that notwithstanding any law to the contrary, any corporation created by a unit under this article is authorized, with the consent of the unit, to obtain retirement benefits under any retirement program operated or participated in by the unit. Authorizes retirement benefits to be extended to the corporation's employees. SECTION 2.Emergency clause. Effective date: upon passage.