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Operating Requirements
Administration Expenses
Type A and Type B EDCs are authorized to pay administrative expenses (including staff) to implement projects. This includes expenses for the acquisition, construction, improvement, expansion and financing of projects. Cities that perform administrative functions for Type A or Type B corporations may be reimbursed for those expenses. An EDC also may contract with a private corporation or other entity.
Training Requirements
The EDC administrator, the city attorney and the city administrator or the city clerk of the municipalities creating Type A and Type B corporations are required to attend an economic development training seminar within 90 days of taking office. The seminar must be repeated every two years. Corporation funds may be used to pay the costs of attending the seminar. The Comptroller's office may impose a penalty of up to $1,000 for officials who fail to attend the required training seminar.
Note: Tutorials and Webinars on this website do not meet this requirement.
EDC training is available from the Texas Economic Development Council.
Open Meetings and Public Hearings
Type A and Type B EDCs' boards of directors are subject to the Texas Open Meetings Act (Govt. Code, Chapter 551).
All Type B corporations must wait 60 days from the first public notice of the project before providing funds, and hold public hearings on all Type B projects.
A Type B EDC serving a city with fewer than 20,000 residents is exempt from holding public hearings for projects eligible under Type A. However, these small cities must give the resolution at least two separate readings if the funding agreement is for $10,000 or more.
Type A corporations are required to hold public hearings only when considering an election to authorize a Type B project.
Open Government training can be obtained from the Texas Office of the Attorney General.
Disclaimer
This information should not be construed as, and is not a substitute for, legal advice.
Property owners and school districts are urged to consult their own legal counsel for any questions or interpretations of economic development laws.
Need Help?
For additional information, contact the Data Analysis and Transparency Division via email or at 844-519-5672.