HBA-MPM H.B. 782 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 782 By: Tillery Urban Affairs 6/14/2001 Enrolled BACKGROUND AND PURPOSE State law permits an industrial development corporation (IDC) created by a municipality under the Development Corporation Act of 1979 to issue bonds to finance the cost of promoting economic development in the state. Prior to the 77th Legislature, state law also permitted a home-rule municipality of more than 100,000 to grant public money to certain tax-exempt organizations for certain economic development purposes, but municipalities in general were not authorized to grant any public money to an IDC. Thus, cities with a population of less than 100,000 were not able to use tax revenues to help an IDC retire bonds issued by the IDC to fund economic development projects. House Bill 782 authorizes any home-rule municipality to grant public money to an IDC for certain economic development purposes. The public money granted by the municipality is derived from any source lawfully available to the municipality under its charter or other law, other than from the proceeds of bonds or other obligations of the municipality payable from ad valorem taxes. 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 782 amends the Local Government Code and the Development Corporation Act of 1979 to authorize a home-rule municipality, under a contract with an industrial development corporation (IDC) created by the municipality under the Development Corporation Act of 1979, to grant public money to the IDC. The IDC is required to use the grant money to finance projects or to repay bonds issued by the IDC for the development and diversification of the state economy, the elimination of unemployment or underemployment in the state, and the development and expansion of state commerce. EFFECTIVE DATE September 1, 2001.