HomeMy WebLinkAboutPR 13057: EDC DIRECTORSINTER
MEMO
To: Mayor, City Council & City Manager
From: Mark T. Sokolow City Attorney /~ ~f~
Subject: P.R. NO. 13057
Special Joint Council Meeting March 7, 2005
Date: February 23, 2005
Attached is P.R. No. 13057 as it pertains to requesting a bill to
be adopted by the Texas Legislature to allow cities to delineate the
number of directors and terms of directors of economic development
corporations.
Presently, Section 4A economic development corporations are required
to have five (5) directors. A Section 4B economic development
corporation is required to have seven (7) directors with two (2) year
terms. The proposed bill gives cities discretion as to delineate the
number and terms of office for board members. The filing deadline for a
bill is March 11, 2005.
MTS:ts
Attachment
cc: City Secretary
Assistant Director of Finance
VIA FACSIMILE (512) 463-0639
VIA FACSIMILE (713) 272-8956
VIA FACSIMILE (979) 297-7996
Senator Kyle Janek
STATE SENATOR
VIA FACSIMILE (512) 463-8381
VIA FACSIMILE (409) 724-0750
Joseph "Joe" Deshotel
STATE REPRESENTATIVE
VIA FACSIMILE (512) 480-0744
VIA FACSIMILE (409) 729-3241
Allan B. Ritter
STATE REPRESENTATIVE
VIA FACSIMILE (409) 985-2833
Carl Parker
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P. R. No. 13057
03/03/05 ts
RESOLUTION NO.
A RESOLUTION AS IT PERTAINS TO ~tEQUESTING A
BILL TO BE ADOPTED BY THE TEXAS LEGISLATURE
TO ALLOW CITIES TO DELINEATE THE NUMBER AND
TERMS OF DIRECTORS FOR ECONOMIC DEVELOPMENT
CORPORATIONS
WHEREAS, it is deemed in the best interests of the citizens
to request Representative Ritter, Representative Deshotel, and
Senator Janek to file a bill to be adopted by the Texas
Legislature to allow cities the flexibility to delineate the
number of directors and the terms for economic development
corporations; and,
WHEREAS, Article 5190.6, V.T.C.A., delineates that Section
4A economic development corporations have five (5) directors, and
that Section 4B economic development corporations have seven (7)
directors.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF PORT ARTHUR, TEXAS:
Section 1. That the facts and opinion in the preamble
are true and correct.
Section 2. That Representative Ritter, Representative
Deshotel, and Senator Janek are hereby requested to file a bill
to be adopted by the Texas Legislature to allow cities the
discretion to delineate the number of directors and their terms
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for economic development corporations, in substantially the same
form as attached hereto as Exhibit "A".
Sect£on 3. That a copy of the caption of this Resolution
be spread upon the Minutes of the City Council.
RE~D, ADOPTED AND APPROVED this __ day of ,
A.D., 2005 at a Special Joint Meeting of the City Council of the
City of Port Arthur, Texas, by the following vote:
AYES: Mayor ; City Council
Noes:
Mayor
ATTEST:
City Secretary
APPROVED AS TO FORM:
City Attorney
APPROVED FOR ADMINISTRATION
City Manager
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EXHIBIT "A"
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A BILL TO BE ENTITLED
An Act relating to the directors of economic development
corporations.
BE IT ENACTED BY THE LEGISLATURE FO THE STATE OF TEXAS:
Section 1. Section 4A (c) of Article 5190.6, Vernon's
Texas Code Annotated (V.T.C.A.) is herein amended to read as
follows:
"The board of directors of a corporation under this
section consists of directors who are appointed by the
governing body of the eligible city and who serve at
the pleasure of the governing body of the city. The
number of directors and the term of office as to each
director shall be delineated at the discretion of the
governing body of the eligible city. A director may be
removed by the governing body of the eligible city at
any time without cause. A majority of the entire
membership of the board constitutes a quorum. The
board shall conduct each of its meetings within the
boundaries of the city. The board shall appoint a
president, a secretary, and other officers of the
corporation that the governing body of the city
considers necessary. The corporation's registered
agent must be an individual resident of the state and
the corporation's registered office must be within the
boundaries of the city."
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Section 2. Section 4B (c) is herein amended to read as
follows:
"(c) The board of directors of a corporation under this
section consists of directors who are appointed by the
governing body of the eligible city and who serve at
the pleasure of the governing body of the city. The
number of directors and the term of office as to each
director shall be delineated at the discretion of the
governing body of the eligible city. A director may
be removed by the governing body of the eligible city
at any time without cause. Each director of a
corporation created by an eligible city with a
population of less than 20,000 must be a resident of
the eligible city, be a resident of the county in which
the major part of the area of the eligible city is
located, or reside at a place that is within 10 miles
of the eligible city's boundaries and is in a county
bordering the county in which the major part of the
area of the eligible city is located. Three directors
shall be persons who are not employees, officers, or
members of the governing body of the eligible city. A
majority of the entire membership of the board is a
quorum. The board shall conduct all meetings within
the boundaries of the eligible city. The board shall
appoint a president, a secretary, and other officers of
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the corporation that the governing body of the eligible
city considers necessary. The corporation's registered
agent must be an individual resident of the state and
the corporation's registered office must be within the
boundaries of the eligible city."
Section 3. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III of the Texas
Constitution. If this Act does not receive the vote necessary
for immediate effect, this Act takes effect September 1, 2005.
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