As our community voted in a city sales tax, forming an EDC is necessary to administer and govern the sales and tax use funds. The May city council meeting canvas votes, certified election results, and a resolution of city sales tax to send to comptroller (https://comptroller.texas.gov/economy/local/type-ab/collect-allocate.php).
Now we are following the next steps to file with the Secretary of State for the EDC and establish the board type and members. (https://comptroller.texas.gov/economy/local/type-ab/establish.php)
How can you help? We need local candidates to serve on the board, unpaid, for the benefit of Fruitvale. Email the city or contact Susan Murre, City Secretary.
Forming a Board of Directors (as applicable to Type B):
State law places additional restrictions on who may serve on the board of directors of a Type B EDC. In a city with a population of 20,000 or more, only a resident of the city may serve on the board. TEX. LOC. GOV’T CODE § 505.052. If the city has a population of less than 20,000, a board member need not be a resident of the city, so long as the individual either lives in the same county in which the major part of the city is located, or within ten miles of the city limits and within a county bordering a county in which most of the city is located. Id. Additionally, at least three board members of a Type B corporation must not be employees, officers, or city council members of the city that authorizes the EDC. Id. In other words, a Type B EDC can have up to four city officials or employees (including councilmembers) serving as members of the EDC board. State law does not address whether city employees or officers may serve on a Type A board. However, the attorney general has concluded that the board of directors of a Type B board are not “public officers” for purposes of the common-law doctrine of incompatibility, so dual service by a councilmember on a Type A board would likely not violate incompatibility or dual officeholding laws. See Tex. Att’y Gen. Op. No. JC-0547 (2002), at 3. Nonetheless, an EDC’s bylaws or city ordinance or policy could prohibit this kind of dual service. (https://www.tml.org/p/BL_Q&A_Updated.pdf)