[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR304.2]

[Page 614-616]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
CHAPTER III--ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 304_ECONOMIC DEVELOPMENT DISTRICTS--Table of Contents
 
Sec.  304.2  District Organizations: Formation, organizational requirements 

and operations.

    (a) General. A ``District Organization'' is an entity that satisfies 
the formation and organizational requirements under paragraphs (b) and 
(c) of this section.
    (b) Formation. A District Organization must be organized as one of 
the following:

[[Page 615]]

    (1) A public organization formed through an inter-governmental 
agreement providing for the joint exercise of local government powers; 
or
    (2) A public organization established under State-enabling 
legislation for the creation of multi-jurisdictional area-wide planning 
organizations; or
    (3) A non-profit organization incorporated under the applicable non-
profit statutes of the State in which it is incorporated.
    (c) Organization and governance.
    (1) Each District Organization must meet the requirements of this 
paragraph (c) concerning membership composition, the maintenance of 
adequate staff support to perform its economic development functions, 
and its authorities and responsibilities for carrying out economic 
development functions. The District Organization's board of directors 
(or other governing body) must also meet these requirements.
    (2) The District Organization must demonstrate that its governing 
body is broadly representative of the principal economic interests of 
the Region, and, unless otherwise prohibited by applicable State or 
local law, must include at least one (1) Private Sector Representative 
and one (1) or more of the following: Executive Directors of Chambers of 
Commerce, or representatives of institutions of post-secondary 
education, workforce development groups or labor groups, all of which 
must comprise in the aggregate a minimum of thirty-five (35) percent of 
the District Organization's governing body. The governing body shall 
also have at least a simple majority of its membership who are elected 
officials and/or employees of a general purpose unit of State, local or 
Indian tribal government who have been appointed to represent the 
government. Upon the District Organization's showing of its inability to 
locate a Private Sector Representative to serve on its governing body 
following extensive due diligence, the Assistant Secretary may waive the 
Private Sector Representative requirement. The Assistant Secretary shall 
not delegate the authority to grant a waiver under this paragraph.
    (3) The District Organization must be assisted by a professional 
staff drawn from qualified persons in economic development, planning, 
business development or related disciplines.
    (4) The governing bodies of District Organizations must provide 
access for persons who are not members to make their views known 
concerning ongoing and proposed District activities in accordance with 
the following requirements:
    (i) The District Organization must hold meetings open to the public 
at least once a year and shall also publish the date and agenda of such 
meetings sufficiently in advance to allow the public a reasonable time 
to prepare in order to participate effectively.
    (ii) The District Organization shall adopt a system of parliamentary 
procedures to assure that board members and others have access to an 
effective opportunity to participate in the affairs of the District.
    (iii) The District Organization shall provide information 
sufficiently in advance of decisions to give the public adequate 
opportunity to review and react to proposals. District Organizations 
should communicate technical data and other material to the public so 
they may understand the impact of public programs, available options and 
alternative decisions.
    (iv) The District Organization must make available to the public 
such audited statements, annual budgets and minutes of public meetings, 
as may be reasonably requested.
    (v) The District Organization and its board of directors must comply 
with all Federal and State financial assistance reporting requirements 
and the conflicts of interest provisions set forth in Sec.  302.17 of 
this chapter.
    (d) Operations. (1) The District Organization shall engage in the 
full range of economic development activities listed in its EDA-approved 
CEDS. These activities may include:
    (i) Coordinating and implementing economic development activities in 
the District;
    (ii) Carrying out economic development research, planning, 
implementation and advisory functions identified in the CEDS; and
    (iii) Coordinating the development and implementation of the CEDS 
with other local, State, Federal and private organizations.

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    (2) The District Organization may at its option contract for 
services to accomplish the activities listed in paragraphs (d)(1)(i) 
through (iii) of this section.