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Council/PEDC Meeting September 15, 2014 Page 3 comptroller's oversight was limited to the administration sales tax that retailers remit the sales tax it receives, it goes to the Comptroller's Office, and the Comptroller's Office retains it for about 6 weeks, and then remits it to the City. Mr. Moore said the City is supposed to promptly turn it over to the EDC. Mr. Moore also said the EDC had oversight of the sales tax training, and was responsible for the annual report due every February, he said there was a $200 penalty for failing to file the report. Mr. Moore said the expenditures do not have to be primary job employers, but could be retail such as Home Depot and Lowes, that they could pay for job training and targeted infrastructure. He said in 2003 Representative Mark Homer authored the bill that allowed this. He said the Board could provide water, sewer, electric, drainage, streets and roads for business development. He also said the money did not have to be spent on a primary job employer, and it did not have to be a manufacturer. He handed out Greg Abbott opinion GA86 issued in 2003, in which the AG ruled the board of directors could make the decision about promotional expenditures subject to the review of the City Council. Mr. Moore said any sort of promotional expenditure was supposed to publicize for business development. He also said 10% was an annual limitation for promotion, but in the current fiscal year they may have an unexpended portion for promotion, and if so that could roll over to the new year in addition to the 10% that is allocated for the new year. In regard to gifting monies, Mr. Moore said the EDC could not gift monies without a written contract or a performance agreement that sets out a capital investment, jobs to be created or retained and some sort of penalty provision. Mr. Moore touched on business recruitment, in that if you are going to hire a third party to do business recruitment then basically you have to have a written contract approved by the Board. He said the Council appoints the Board members and can remove them, but the Board of Directors oversees the sales tax and it ultimately goes to City Council for approval of expenditures. Mr. Moore said he understood they amended their Bylaws which were approved by the City Council and that included anything spent over a certain dollar amount must go to the City Council for approval. With regard to conflicts of interest statute, Mr. Moore said there was an AG opinion that noted that the conflicts of interest Statute does not apply to Type A or Type B corporations because, they were not considered local public officials. He said conflict of interest statements do not apply to nonprofit corporations unless bylaws, articles of incorporation or City ordinance impose the requirement. Mr. Moore referenced page 5 of the report and noted that the report said it should be destroyed when the information was no longer needed. Mr. Moore stressed that the report should not be destroyed without reviewing the records retention schedule. He said he had covered the PEDC financial review and lack of oversight. He said they could adopt a travel policy as Council did or adopt a travel policy on what were allowable and not allowable expenditures. Mr. Moore also said tracking of fund expenditures must be required to account for the use of public funds. With regard to PEDC paying for expenses which should have been incurred by other entities, he said he noted a couple of the expenditures included promotional expenditures, such as the incubator, grand opening session, and promotional expenditures. He said these expenses were consistent