SB 171, the result of the 2022 Senate Study Committee on Development Authorities and Downtown Development Authorities, limits holdover terms and imposes continuing training requirements for board members, which will begin to take effect this summer.
Effective July 1, 2024, to limit holdover voting eligibility, the holdover period for expired terms of office has been shortened to six months. Further, if the governing body fails to appoint/reappoint board members within this shortened holdover period, the remaining board members must appoint their successor(s). With that in mind, we urge you to check the terms of your current board members and plan accordingly.
Additionally, after July 1, 2025, development authority members will be required to attend at least two hours of annual continuing training. Failure to comply with the training requirement for two consecutive years will result in members having their voting rights suspended until the training has been completed. We are designing a continuing education program for development authority members and would be delighted to provide training to development authority members as they prepare to comply with the new requirements.
Finally, as special called meetings and summer travel plans arise, we hope that you are taking full advantage of the new flexibility that Development Authorities, Hospital Authorities, and Community Improvement Districts have been afforded to conduct meetings via teleconference (SB 26).
Should you have questions on these or other legislative updates, please don’t hesitate to reach out to us.