|
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA
<br />ITEMITEM
<br />July 7, 2015July 7, 2015AppropriationAppropriation
<br />Agenda Date Requested:Agenda Date Requested:
<br />LPDC Fund BalanceLPDC Fund Balance
<br />Scott D. LivingstonScott D. LivingstonSource of Funds:Source of Funds:
<br />Requested By:Requested By:
<br />038038--60306030--565565--99979997
<br />Economic Development/TourismEconomic Development/TourismAccount Number:Account Number:
<br />Department:
<br />50,00050,000
<br />Amount Budgeted:Amount Budgeted:
<br />Report:Resolution:Resolution:Ordinance:Ordinance:
<br />Amount Requested:Amount Requested:
<br />Exhibits:
<br />Budgeted Item:Budgeted Item:YESYESNONO
<br />1. Local Government Code Chapter 501 Local Government Code Chapter 501
<br />2. Local Government Code Chapter 505 Local Government Code Chapter 505
<br />SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
<br />Over the past two years, the Board has allocated funding for Workforce Development. This is an area of need Over the past two years, the Board has allocated funding for Workforce Development.
<br /> This is an area of need
<br />that has been expressed by industry partners and other economic development partners throughout the Houston that has been expressed by industry partners and other economic development
<br /> partners throughout the Houston
<br />Port region. Last month the topic was introduced as to whether or not the Board could use economic development Port region. Last month the topic was introduced as to whether or not
<br /> the Board could use economic development
<br />workforce development to award workforce development to award scholarshipsscholarshipsto citizens of La Porte and/or employees of La Porte businesses to citizens of La Porte and/or
<br /> employees of La Porte businesses
<br />to obtain primary job trainingprimary job training. .
<br /> Chapters 501Chapters 501--505 of the Local Government Code (505 of the Local Government Code (LGCLGC), ), which govern economic development corporations, do which govern economic
<br /> development corporations, do
<br />not use the word not use the word scholarshipscholarship. . Furthermore, these chapters do not expressly authorize the granting of funds Furthermore, these chapters do not expressly
<br /> authorize the granting of funds
<br />including through a designated project including through a designated project for the payment of tuition and related schooling costs directly to for the payment of tuition and related
<br /> schooling costs directly to
<br />individuals. Therefore, state law governing the operation of economic development corporations does individuals. Therefore, state law governing the operation of economic development
<br /> corporations does appear appear
<br />notnot
<br />to allow the La Pore Development Corporation to award funds as to allow the La Pore Development Corporation to award funds as scholarshipsscholarshipsto an individual to pay for
<br /> tuition, to an individual to pay for tuition,
<br />room, and/or board expenses. Funds for room, and/or board expenses. Funds for primary job trainingprimary job trainingmay be used in the following two (2) ways: (1) may be used
<br /> in the following two (2) ways: (1)
<br />Fund business enterprisesbusiness enterprisesthat are hosting, paying for the primary job training, or conducting the job training for that are hosting, paying for the primary job
<br /> training, or conducting the job training for
<br />new and/or retained employees, and/or (2) Fund the support of new and/or retained employees, and/or (2) Fund the support of primary job training facilities for use by institutions
<br /> primary job training facilities for use by institutions
<br />of higher educationof higher education..
<br />The LGC offers only two (2) pathways to offer funding for The LGC offers only two (2) pathways to offer funding for workforce developmentworkforce developmentand/or and/or primary
<br /> job primary job
<br />training. These are: These are:
<br /> LGC 501.101(K) allows funds for a LGC 501.101(K) allows funds for a projectprojectwhich which includes the land, buildings, equipment, facilities, includes the land, buildings,
<br /> equipment, facilities,
<br />(1)
<br />expenditures, targeted infrastructure, and improvements that are . . . for the creation or retention of primary jobs . expenditures, targeted infrastructure, and improvements that are
<br /> . . . for the creation or retention of primary jobs .
<br />. . and are found by the board of directors to be required or suitable for the development, retention, or expansion of . . and are found by the board of directors to be required or suitable
<br /> for the development, retention, or expansion of
<br />((emphasis added). LGC 501.101emphasis added). LGC 501.101
<br /> for use by for use by
<br />primaryjob training facilitiesjob training facilities institutions of higher educationinstitutions of higher education
<br />(K) speaks in terms of (K) speaks in terms of primary job training primary job training which are which are
<br />facilitiesfacilities,,used by the institution of higher used by the institution of higher
<br />. In this scenario theIn this scenario the would have to be the recipient of the funds, and the focus is on the would have to be the recipient of the funds, and the focus is on the
<br />
<br />education
<br /> school school
<br />funding of the facilities, not a particular personfunding of the facilities, not a particular persons education expenses; and s education expenses; and
<br />
<br /> LGC 501.102 and 501.162 (which is incorporated by LGC 505.151 specifically for Type B Corps) authorizes LGC 501.102 and 501.162 (which is incorporated by LGC 505.151 specifically for
<br /> Type B Corps) authorizes
<br />(2)
<br />projects for job training required or suitable for the promotion of development and expansion of job training required or suitable for the promotion of development and expansion of
<br />
<br />business business
<br /> . . . . . ., , but only where the job training is but only where the job training is offered through a business enterpriseoffered through a business enterprisethat has that has
<br /> . . . . . .
<br />enterprises
<br />committed in writing to . . . create new jobs that pay wages that are at least equal to the prevailing wage for the committed in writing to . . . create new jobs that pay wages that
<br /> are at least equal to the prevailing wage for the
<br />applicable occupation in the local labor market area or increase its payroll to pay wages that are at least equal to applicable occupation in the local labor market area or increase
<br /> its payroll to pay wages that are at least equal to
<br />the prevailing wage for the applicable occupation in the local labor market area.the prevailing wage for the applicable occupation in the local labor market area. When working under
<br /> LGC When working under LGC
<br />501.102 and 501.162, project funds for 501.102 and 501.162, project funds for primary job trainingprimary job trainingmust be paid to the must be paid to the that is that is
<br />
<br />business enterprisebusiness enterprise
<br />
<br />
|