ENROLLED
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ACT No. 838
Regular Session, 2010
HOUSE BILL NO. 1069
BY REPRESENTATIVES MICHAEL JACKSON, AUBERT, HENRY BURNS, DIXON,
DOERGE, DOWNS, GISCLAIR, GUINN, HILL, SAM JONES, MONTOUCET,
LEGER, AND NORTON AND SENATORS ALARI O, APPEL, BROOME,
CLAITOR, DORSEY, DUPLESSIS, ERDEY, B. GAUTREAUX, HEITMEIER,
JACKSON, LAFLEUR, LONG, MCPHERSON, MURRAY, PETERSON, RISER,
SHAW, THOMPSON, AND WAL SWORTH
AN ACT1
To amend and reenact R.S. 48:1671(A), (B), and (C)(1) and to enact Chapter 35 of Title 482
of the Louisiana Revised Statutes of 1950, to be comprised of R.S. 48:2170 through3
2189, relative to the development of transportation infrastructure; to provide relative4
to the Southern Rapid Rail Transit Compact; to add the state of Texas to the5
compact; to provide for representation on the Southern High-Speed Rail6
Commission; to provide relative to the "The Louisiana Intrastate Rail Compact"; to7
authorize the creation of compacts to develop a system of railways, transitways, and8
other transportation facilities; to provide for the powers and duties of such compacts;9
to authorize compacts to issue bonds and raise revenues subject to voter approval;10
to prohibit the development of transportation infrastructure by prohibiting closure11
of private railroad crossings; to authorize the creation of the Louisiana Intrastate Rail12
Compact; to provide for the powers and duties of such compact; to authorize the13
compact to issue bonds and raise revenues subject to voter approval; to provide the14
mechanism for entities to become a part of the Louisiana Intrastate Rail Compact15
under certain circumstances; and to provide for related matters.16
Be it enacted by the Legislature of Louisiana:17 ENROLLEDHB NO. 1069
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Section 1. R.S. 48:1671(A), (B), and (C)(1) are hereby amended and reenacted to1
read as follows:2
§1671. Southern Rapid Rail Transit Compact3
A. The purpose of this compact is to study the feasibility of rapid transit4
service between the states of Louisiana, Mississippi, Texas, and Alabama and to5
establish a joint interstate commission to assist in this effort.6
B. This compact shall become effective immediately as to the states ratifying7
it whenever the states of Louisiana, Alabama, Texas, and Mississippi have ratified8
it and Congress has given consent thereto. Any state not mentioned in this article9
which is contiguous to any member state may become a party to this compact,10
subject to approval by the legislature of each of the member states.11
C.(1) The states that are parties to this compact (hereinafter referred to as12
party states) do hereby establish and create a joint agency, which shall be known as13
the Southern High-Speed Rail Commission (hereinafter referred to as the14
commission). The membership of the commission shall consist of the governor of15
each party state, one representative each from the Mississippi Energy and16
Transportation Board or its successor, the Louisiana Department of Transportation17
and Development or its successor, the Texas Transportation Commission or its18
successor, and the conservation division of the Alabama Department of Energy or19
its successor; and five other citizens of each party state, to be appointed by the20
governor thereof. The appointive members of the commission shall serve for terms21
of four years each. Vacancies on the commission shall be filled by appointment by22
the governor for the unexpired portion of the term.23
* * *24
Section 2. Chapter 35 of Title 48 of the Louisiana Revised Statutes of 1950,25
comprised of R.S. 48:2170 through 2189, is hereby enacted to read as follows:26
CHAPTER 35. THE LOUISIANA INTRASTATE RAIL COMPACT27
§2170. Short title28
This Chapter shall be known and may be referred to as "The Louisiana29
Intrastate Rail Compact Act".30 ENROLLEDHB NO. 1069
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§2171. Purpose; findings; determinations1
A. The development, improvement, expansion, and maintenance of an2
efficient, safe, and well-maintained system of railways, transitways, and other3
transportation facilities that promote mobility are essential to Louisiana's economic4
health and are intended to act as a system that provides a basis for business and5
industry to compete cost effectively on a regional, national, and global scale in order6
to provide a high quality of life for the people of this state.7
B. The expansion of local and regional transportation facilities is vital to the8
growth and development of the parishes and the state.9
C. Public sources of revenues, including federal funding, that provide an10
efficient transportation system have not kept pace with the state's growing population11
and transportation needs; therefore, available alternative sources of revenue12
generation should be utilized to supplement currently available public funding in13
order to provide these needed transportation facilities.14
D. Since public funding sources are not providing the state with sufficient15
revenues to meet all of its transportation needs, parishes and municipalities are16
hereby encouraged to utilize public-private partnerships as an additional means to17
assist in financing improvements to the state transportation system, especially the18
development of a rail travel choice in Louisiana in order to meet regional and local19
transportation needs.20
§2172. Definitions21
Unless the text clearly indicates otherwise, the following words or phrases22
shall have the following meanings:23
(1) "Act" means the Louisiana Intrastate Rail Compact Act.24
(2) "Board" means the board of directors of a compact.25
(3) "Bonds" means bonds, notes, certificates, obligations, or any other26
evidence of indebtedness or evidence of borrowed money issued or entered into by27
a compact to finance a project.28
(4) "Compact" means any quasi-governmental entity compact formed by any29
parish or municipality, or two or more parishes or municipalities, or any combination30 ENROLLEDHB NO. 1069
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of parishes and municipalities pursuant to the provisions of this Chapter or any1
successor thereto.2
(5) "Department" means the Department of Transportation and Development3
or any successor agency thereto.4
(6) "Municipal-street system project" means any proposed capital project5
involving the acquisition of land for, or the acquisition, construction, reconstruction,6
improvement, installation, extension, development, or equipping of real property or7
related facilities as part of the rail service program.8
(7) "Parish-related project" means any proposed capital project involving the9
acquisition of land for, or the acquisition, construction, reconstruction, improvement,10
installation, extension, development, or equipping of real property as part of a parish11
road railway or other transportation system and related facilities to the railway12
program.13
(8) "Project" means any capital project undertaken pursuant to this Chapter14
involving the acquisition of real property for, or the acquisition, construction,15
reconstruction, improvement, extension, installation, development, or equipping of16
a railway, related facilities, or any portion thereof, including a state-designated17
passenger rail project.18
(9) "Project costs" means all costs of acquisition and construction; the cost19
of acquisition of all land, rights-of-way, servitudes, property rights, easements, and20
interests acquired, or to be acquired, by a compact for such a railway program and21
related construction; the cost of demolishing or removing any buildings or structures22
on land so acquired, including the cost of acquiring any lands to which such23
buildings or structures may be moved; the cost of all machinery and equipment;24
financing charges, interest charges, interest prior to and during construction; cost of25
traffic estimates and of engineering and legal expenses; plans, specifications, and26
surveys; estimates of costs and of revenues; other expenses necessary or incidental27
to determining the feasibility or practicability of constructing a railway project;28
administrative expenses and such other expenses as may be necessary or incidental29
to the construction of a project; the financing of such railway construction and the30 ENROLLEDHB NO. 1069
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placing of a rail transport project in operation. Any obligation or expenses hereafter1
incurred by the department, with the approval of a compact, for traffic surveys,2
borings, preparation of plans and specifications, and other engineering services in3
connection with the construction of a project shall be regarded as part of the cost of4
the project and shall be reimbursed to the department.5
(10) "Public utility facilities" means tracks, pipes, signals, railroad grade-6
crossing protection at vehicular crossings, stations, parking facilities mains, conduits,7
cables, wires, towers, poles, railroads, and other equipment and appliances which are8
either publicly or privately owned.9
(11) "Real property" means lands, waters, rights in lands or waters,10
structures, franchises, and interests in land, including lands under water, riparian11
rights, property rights in air space or subsurface space, and any and all other things12
and rights usually included within the said term, including any and all interests in13
such property less than full title, such as easements and servitudes, rights-of-way,14
uses, leases, licenses, and all other incorporeal hereditaments and every estate,15
interest or right, legal or equitable, whether permanent or temporary.16
(12) "Revenues" means:17
(a) All income, revenues, and receipts derived or to be derived from a project18
owned, leased, maintained, operated, or otherwise received by a compact from a19
project, or from contracts or agreements relating to a project, including but not20
limited to lease or sublease agreements, sale agreements, security agreements, loan21
agreements, pledge agreements, or other financing agreements between that compact22
and any entity, or from any other sources whatsoever.23
(b) Monies generated by way of contract, pledge, donation, or bequest.24
(c) Monies generated by taxes of a public entity which are authorized to be25
assessed and levied by law.26
(13) "State" means the state of Louisiana.27
(14) "State-designated project" means any proposed capital project involving28
the acquisition of land for, or the acquisition, construction, reconstruction,29
improvement, installation, extension, development, or equipping of real property as30 ENROLLEDHB NO. 1069
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part of the state transportation system, including railway projects and related1
facilities.2
(15) "State transportation system" means all roadways, highways, bridges,3
or tunnels which constitute the state rail transportation system.4
(16) "Transitway" or "railway" means any fixed guide way facility involving5
the use of rail or dedicated transit lines.6
(17) "Authority" means Louisiana Intrastate Rail Authority.7
§2173. Creation of compacts; jurisdiction8
A. There is in state government a Louisiana Intrastate Rail Authority. The9
authority shall direct the development and implementation of intrastate high-speed10
rail service that is fully integrated with the state's existing intrastate rail and bus11
network, consisting of interlinked conventional and high-speed rail lines and12
associated feeder buses. The intrastate network in turn shall be fully coordinated and13
connected with commuter rail lines and urban rail transit lines developed by local14
agencies, as well as other transit services, through the use of common station15
facilities whenever possible. The authority may apply for and expend federal funds16
made available through the American Recover and Reinvestment Act of 2009, upon17
appropriation of the legislature, to develop passenger rail corridors in Louisiana. 18
B. Any parish or municipality, or two or more parishes or municipalities, or19
any combination of parishes and municipalities are hereby authorized to form a20
quasi-governmental compact. Any such compact created pursuant to this Chapter21
shall be considered and treated as a body politic and corporate established for the22
public purposes enumerated herein. The boundaries of the compact shall be23
coextensive with the territorial boundaries of the parish or parishes or municipality24
or municipalities which establish such compact. The compact shall have the power25
to adopt bylaws containing such terms and provisions as the directors of the compact26
shall deem necessary or convenient to further carry out its purposes, provided that27
nothing therein may contravene any of the provisions of this Chapter.28 ENROLLEDHB NO. 1069
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§2174. Liability1
Neither the state nor any state agency, parish, municipality, district, or any2
other political subdivision or other public entity shall be subject to any claims,3
liabilities, costs, expenses, or causes of action for any personal injury or damage to4
property arising out of the construction, operation, or maintenance of any project, or5
which may happen to occur on any railway, if such incident giving rise thereto6
occurs prior to transfer and reversion of ownership of any project from a compact7
created hereunder to the state or appropriate parish or municipality in accordance8
with the provisions of this Chapter. Should any suit or other action be filed against9
a compact created hereunder prior to reversion of a project, such reversion shall be10
effected as provided in this Chapter, but the compact so joined by such action shall11
continue in existence as provided in R.S. 48:2189(A). No individual member,12
officer, director, or employee of a compact shall be liable personally for any such13
claims, liabilities, costs, expenses, or causes of action in any event.14
§2175. Directors15
A. The board of the compact shall consist of such directors as are specified16
in the compact agreement, provided the board shall consist of at least five directors,17
including the Louisiana designee to the Southern Rail Corridor to be appointed by18
the chairman of the Southern Rail Corridor.19
B. All directors shall be appointed by the parish or municipality forming the20
compact, if there is only one. If more than one parish, municipality, or any21
combination of parishes and municipalities is involved in forming a compact, each22
parish or municipality shall appoint an equal number of directors.23
C. The compact shall elect from its directors a chairman, a vice chairman,24
and a secretary-treasurer who shall serve one-year terms. Where more than one25
parish or municipality is involved in the formation of a compact, the chairmanship26
for each successive term shall be alternated among the representatives of all27
participating parishes and municipalities.28
D. Any vacancy which occurs prior to the expiration of a term for which a29
member of the board has been appointed shall be filled by appointment in the same30 ENROLLEDHB NO. 1069
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manner as the original appointment for the unexpired term as set forth in the articles1
of incorporation or bylaws of the compact.2
E. Upon the effective date of an appointment, or as soon as practicable3
thereafter, each appointed member shall enter upon their duties. A member shall4
hold office until a successor has been appointed. Any member of the compact is5
eligible for reappointment.6
F. All directors shall have equal status, and each director shall have one vote.7
G. The presence of a majority of the board shall constitute a quorum. A8
majority vote of those present and voting shall be necessary for any action taken by9
the board.10
H. A vacancy on the board shall not impair the right of a quorum to exercise11
a right or perform a duty of the board.12
§2176. Compensation of directors13
Directors of the board shall not be entitled to any salary for services, but each14
member shall be reimbursed for actual expenses necessarily incurred in the15
performance of all duties in connection with the business of a compact in compliance16
with Policy and Procedure Memorandum 49, as promulgated by the division of17
administration, as amended and revised and may, if authorized by the board, be18
entitled to a per diem when conducting official business, not to exceed seventy-five19
dollars per day.20
§2177. Conflict of interest; ethics code21
Any compact created pursuant to this Chapter, and all directors and officers22
thereof, shall be subject to the Code of Governmental Ethics (R.S. 42:1101 et seq.).23
§2178. Right of public agencies to material24
Any compact created pursuant to this Chapter shall be subject to and fully25
comply with the Public Records Law (R.S. 44:1 et seq.) and the Open Meetings Law26
(R.S. 42:4.1 et seq.) of the state. The proceedings and documents of a compact shall27
be public record. All reports, maps, or other technical documents produced in whole28
or in part by a compact may be utilized by the department or any other public agency29
in any manner that they deem necessary and advisable in the conduct of their duties.30 ENROLLEDHB NO. 1069
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§2179. Establish feasibility; prior written approval1
A. A compact created and established pursuant to this Chapter may2
construct and operate transit way facilities along a transit corridor within the state3
under the terms and conditions set forth in this Chapter, with the prior express4
written consent of the affected governing bodies within the geographic boundaries5
of such compact after public hearing. The facilities shall be part of the approved6
transportation plan and program of the department and the local metropolitan7
planning organization, where applicable.8
B. Prior to the initiation of environmental impact statements and preliminary9
engineering, feasibility studies shall first be conducted to substantiate project need10
and justification.11
§2180. General grant of powers and duties12
In addition to having all of the powers granted, each compact may exercise13
all additional powers necessary, appurtenant, convenient, or incidental to the14
carrying out of its purposes, including but not limited to the following rights and15
powers:16
(1) To adopt and amend bylaws, regulations, and procedures for the17
governance of its affairs and the conduct of its business and to designate an official18
journal which shall be a newspaper of general circulation within the geographical19
boundary of the compact.20
(2) To adopt, use, and alter at will an official seal.21
(3) To construct, reconstruct, maintain, improve, install, extend, develop,22
equip, repair, operate, own, and lease projects within the geographic boundaries of23
the compact in the manner to be determined by the compact, including in segments,24
phases, or stages, and all rights-of-way and to pay all project costs in connection25
therewith.26
(4) To sue and be sued in its own name, plead, and be impleaded; however,27
any and all actions at law or in equity against the compact shall be brought in the28
parish where the cause of action arises, and if land is involved, including29 ENROLLEDHB NO. 1069
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condemnation proceedings, suit shall be brought in the parish where the land is1
situated.2
(5) To fix, revise, and adjust, from time to time, fees and charges in3
connection with each project sufficient to pay all or a portion of maintenance,4
operation, debt service and reserve or replacement costs, and other necessary or usual5
charges and to regulate speed limits on the railway transportation system.6
(6) To contract with any person, partnership, association, or corporation7
desiring the use of any part of a project, including the rights-of-way adjoining the8
paved portion, for placing thereon telephone, fiber optic, telegraph, electric light, or9
power lines, gas stations, garages, and restaurants, or for any other purpose, and to10
fix the terms, conditions, rents, and rates of charges for such use. Any utilities which11
are placed within the right-of-way shall be loadable by the one-call system, and the12
utilities shall place locator strips on any buried objects. The contract or lease shall13
require the removal at the expense of the lessee of any utilities or other obstructions14
placed within the right-of-way at the request of such private utility owner when15
expansion of the rail transportation facility requires such removal.16
(7) To acquire, hold, and dispose of real and personal property in the17
exercise of its powers and the performance of its duties under this Chapter in18
accordance with existing state law.19
(8) To acquire in the name of the compact by purchase, gift, transfer,20
foreclosure, lease, or otherwise, including rights or easements, or by the exercise of21
the power of eminent domain in the manner hereinafter provided, such public or22
private lands, including public parks, playgrounds or reservations, or parts thereof23
or rights therein, rights-of-way, property rights, easements, and interests, as it may24
deem necessary for carrying out the provisions of this Chapter. Eminent domain25
shall be used for the sole purpose of constructing a railway transportation system and26
for the other public purposes set forth in this Chapter, and not for the exercise of, or27
accommodation for, private development interests, including but not limited to28
service stations, food marts, restaurants, truck stops, or other private enterprises.29 ENROLLEDHB NO. 1069
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(9) To hold, sell, assign, lease, or otherwise dispose of any real or personal1
property or any interest therein; to release or relinquish any right, title, claim, lien,2
interest, easement, or demand however acquired, including any equity or right of3
redemption in property foreclosed by it; to take assignments of leases and rentals;4
proceed with foreclosure actions; or take any other actions necessary or incidental5
to the performance of its corporate purposes.6
(10) To designate the location, and establish, limit, and control points of7
ingress and egress for each project as may be necessary or desirable in the judgment8
of the compact to ensure the proper operation and maintenance of such project, and9
to prohibit entrance to such project from any point or points not so designated.10
Creation of new points of ingress and egress or substantial reconstruction or redesign11
of the same shall be made only after public hearing. Where the state railway12
transportation system is affected, the concurrence of the department shall be obtained13
for any such matters set forth in this Paragraph.14
(11) In all cases where parish, municipal, or other public roads are affected15
or severed, the compact is hereby empowered and required to move and replace the16
roads with equal or better facilities, and all expenses and resulting damages, if any,17
shall be paid by the compact.18
(12) To enter, or authorize its agents to enter upon any lands, waters, and19
premises within the geographic boundaries of the compact for the purpose of making20
surveys, soundings, drillings, and examinations as it may deem necessary or21
appropriate for the purposes of this Chapter, and such entry shall not be deemed a22
trespass or unlawful. The compact shall make reimbursement for any actual23
damages resulting to such lands, waters, and premises as a result of such activities.24
(13) To procure liability, casualty, and other insurance in such amount or25
amounts appropriate to the size of the project, as determined by the board, insuring26
the compact against all losses, risk, and liability arising out of the construction,27
operation, maintenance, and ownership of any project.28 ENROLLEDHB NO. 1069
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(14) To apply for, receive, and accept subventions, grants, loans, advances,1
and contributions from any source of money, property, labor, or other things of2
value, to be held, used, and applied for its corporate purposes.3
(15) To open accounts at financial institutions as necessary for the conduct4
of its business and to invest any funds held in reserves or sinking funds, or any funds5
not required for immediate disbursement in such investments as may be provided in6
any financing document relating to the use of such funds, or, if not so provided, as7
the board may determine, subject to compliance with state laws relative to8
investments by political subdivisions.9
(16) To borrow money and issue bonds for any corporate purpose, including10
the development, construction, or financing of any project which the compact is11
authorized to acquire or construct, including all costs in connection with and12
incidental to such acquisition or construction and the financing thereof.13
(17) To enter into contracts and agreements and execute all instruments14
necessary or convenient thereto for accomplishing the purposes of this Chapter.15
Such contracts and agreements may include, without limiting the foregoing,16
construction agreements, purchase or acquisition agreements, loan or lease17
agreements, partnership agreements, including limited partnership agreements, joint18
venture, participation agreements, or loan agreements with leasing corporations or19
other financial institutions or intermediaries.20
(18) To enter into agreements with a public or private entity, to permit the21
entity, independently or jointly with the compact, to construct, maintain, repair, or22
operate projects, and to authorize the investment of public and private money to23
finance such projects, subject to compliance with state law relative to use of public24
funds.25
(19) To employ consultant engineers, attorneys, accountants, construction26
and financial experts, superintendents, managers, and such other employees and27
agents as may be necessary for the accomplishment of its corporate purposes, and to28
fix their compensation.29 ENROLLEDHB NO. 1069
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(20) To exercise the power of eminent domain in accordance with general1
law, or at the option of the compact, Part XII of Chapter 1 of Title 48 of the2
Louisiana Revised Statutes of 1950, and the provisions relating to acquisition of3
property prior to judgment found therein, provided that any property so acquired by4
a compact which is not used for an authorized public purpose of the compact within5
three years of such acquisition shall be reconveyed by the compact to the prior6
owners thereof at current market value. Upon refusal or failure to accept7
reconveyance of such property by the prior owner, the compact may use or dispose8
of such property as provided for in this Chapter.9
(21) To do all acts and things necessary or convenient for the powers granted10
to it by law.11
§2181. State-designated projects; department approvals12
A. A compact may, upon obtaining the approval of the Department of13
Transportation and Development undertake a state-designated project as a project14
under this Chapter.15
B. Any portion of a compact project which is proposed to connect with or16
otherwise directly affect the operation of any portion of any state highway or any17
state-designated project shall be approved by the Department of Transportation and18
Development.19
C. Notwithstanding any other law to the contrary, specifically including but20
not limited to the Louisiana Expressway Law (R.S. 48:1251 et seq.), any compact21
organized pursuant to the provisions of this Chapter shall have full power to carry22
out all of the powers and duties set forth in this Chapter, without the necessity of23
obtaining the approval or consent of the state, or any state agency, political24
subdivision, district, authority, or other public entity except as expressly provided25
for in this Chapter.26
§2182. Acquisition of lands and property27
A. For the purposes of this Chapter, a compact may acquire private or public28
property and property rights, including rights of access, air, view, and light, by gift,29
devise, purchase, or condemnation by eminent domain proceedings, as the compact30 ENROLLEDHB NO. 1069
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may deem necessary for any of the purposes of this Chapter, including but not1
limited to any lands reasonably necessary for securing applicable permits, areas2
necessary for management of access, borrow pits, drainage ditches, water retention3
areas, rest areas, placement access for landowners whose access is impaired due to4
the construction of a project, and replacement rights-of-way for relocated rail and5
utility facilities for existing, proposed, or anticipated transportation facilities in the6
transportation corridor designated by the compact.7
B. In the acquisition of land and property, a compact may acquire an entire8
lot, block, or tract of land, if, by so doing, the acquisition costs to the compact will9
be equal to or less than the cost of acquiring only that portion of the property thereof10
necessary for the project. This Subsection is a specific recognition that this means11
of limiting the rising costs of such property acquisition is a public purpose and that,12
without this limitation, the viability of many public projects will be threatened. To13
that end, the provisions of R.S. 48:2180(20), regarding reconveyance of such excess14
portion shall not apply except in the case of the exercise by a compact of its right of15
eminent domain.16
C. A compact may sell, lease, or otherwise dispose of all or any portion of17
a project, provided that the sale, lease, or other disposition of a state-designated18
project shall require department approval. Notwithstanding any law to the contrary,19
any surplus property may be sold in accordance with procedures adopted by the20
compact that maximize the price received for such property.21
D. The right of eminent domain conferred by this Chapter shall be exercised22
by each compact in the manner provided by state law.23
E. When a compact acquires property for a project, it is not subject to any24
liability imposed by pre-existing conditions. This Subsection does not, however,25
affect the rights or liabilities of any past or future owners of the acquired property,26
nor does it affect the liability of any governmental entity for the results of its actions27
which create or exacerbate a pollution source. The compact and the Louisiana28
Department of Environmental Quality may enter into interagency agreements for the29 ENROLLEDHB NO. 1069
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performance, funding, and reimbursement of the investigative and remedial acts1
necessary for property acquired by the compact.2
§2183. Public utilities3
A. A compact shall have the power to make reasonable regulations for the4
installation, construction, maintenance, repair, renewal, relocation, and removal of5
any public utility, railroad, vehicular crossings of railroads, pipeline company, or6
other entity, in, on, along, over, or under a project. Whenever a compact shall7
determine that it is necessary that any public utility facilities which now are, or8
hereafter may be, located in, on, along, over, or under a project should be relocated9
in such project, or should be removed from such project, or should be carried along10
or across the project by grade separation, the owner or operator of such facilities11
shall relocate or remove the same in accordance with the order of the compact;12
however, the cost and expenses of such relocation or removal or grade separation,13
including the cost of installing such facilities in a new location or new locations, and14
the cost of any land, or any rights-of-way or interest in lands, and any other rights15
acquired to accomplish such relocation or removal, and the cost of maintenance of16
grade separation structures, shall be paid by the compact as a part of the cost of such17
project. In case of any such relocation or removal of public utility facilities, the18
owners or operators of the same, their successors or assigns, may use and operate19
such public utility facilities, with the necessary appurtenances, in the new location20
or new locations, for as long a period, and upon the same terms and conditions, as21
they had the right to maintain and operate such public utility facilities in their former22
location or locations.23
B. Notwithstanding the provisions of Subsection A of this Section, any24
utility allowed to exist on a compact's right-of-way at the request of the utility25
pursuant to R.S. 48:2180(6), shall be responsible for any cost of relocation, removal,26
or grade separation and all expenses related thereto.27 ENROLLEDHB NO. 1069
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§2184. Levy special benefit assessments1
A. A compact formed under the provisions of this Chapter may levy special2
benefit assessments for needed public rail transit facilities and services on the3
property which benefits from those facilities and services.4
B. The intrastate rail compact transit facilities and services provide special5
benefits to parcels of land, and improvements thereon, in the vicinity of rail rapid6
transit stations, and provide general benefits to the community at large. The board7
of directors of a compact shall be conclusive judge of the proportion of special and8
general benefits produced by the facilities and of the distribution of the special9
benefits among parcels of property within the benefit assessment district.10
C. The compact may exercise the powers granted to an economic11
development district pursuant to R.S. 33:9038.33 and 9038.34 as if the compact is12
such an economic development district; however, no state tax increments shall be13
dedicated to pay any revenue bonds of any compact or be otherwise used to obligate14
the state financially to support a compact or projects of a compact.15
§2185. Local option16
The provisions of R.S. 48:2184 shall not apply to any municipality or parish17
unless the qualified electors of the municipality or parish vote in favor of the18
application of this Chapter to the municipality or parish.19
§2186. Contracts; construction and law enforcement20
A. Contracts of a compact for the construction, improvement, repair, or21
maintenance of any municipal street system project, parish-related project, or project22
of a compact as defined in R.S. 48:2172(8) shall be made and awarded pursuant to23
Chapter 10 of Title 38 of the Louisiana Revised Statutes of 1950.24
B. Exceptions shall be made for publicly funded improvements made to25
private railway property under contract to the compact for a public benefit, where the26
labor organizations of the private railway have agreements to carry out work on such27
property. In this case, the granted public benefit by the private railway company28
shall be considered an intangible asset owned by the compact.29 ENROLLEDHB NO. 1069
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are additions.
C. Notwithstanding any law to the contrary, a compact may contract with a1
private entity to provide services for design, cost estimate, feasibility studies,2
operations, management and construction management services, provided that any3
contract awarded for such services shall be awarded only after the compact drafts4
and uses a request for proposal seeking proposals from qualified providers. Notice5
of such requests for proposal shall be published twice, once a week for two weeks,6
in the official journal of the compact and once in at least one trade journal. Such7
notice shall give a brief description of the services sought, where a complete request8
for proposal form may be obtained, and the deadline for response to the proposal,9
which shall be no less than thirty days from the last publication in the official10
journal. Nothing in this Subsection shall be construed to allow contracts for the11
construction, improvement, repairs, or maintenance of railways to be awarded in any12
manner other than as set forth in Subsection A of this Section.13
D. A compact created hereunder shall contract with the state police, a law14
enforcement district, or a municipal law enforcement agency for law enforcement15
and patrol functions.16
§2187. Bonds17
A. Without reference to any provision of the Constitution of Louisiana and18
the laws of Louisiana, and as a grant of power in addition to any other general or19
special law, a compact created pursuant to this Chapter may issue bonds for any20
corporate purpose and pledge revenues for the payment of the principal and interest21
of such bonds. A compact is further authorized, in its discretion, to pledge all or any22
part of any gift, grant, donation, or otherwise any sum of money, aid, or assistance23
from the United States, the state, or any political subdivision thereof, unless24
otherwise restricted by the terms thereof, all or any part of the proceeds of bonds,25
credit agreements, instruments, or any other money of the compact, from whatever26
source derived, for the further securing of the payment of the principal and interest27
of the bonds.28
B. Bonds issued under the provisions of this Chapter shall not be deemed to29
constitute a pledge of the full faith and credit of the state or of any governmental unit30 ENROLLEDHB NO. 1069
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thereof. All such bonds shall contain a statement on their face substantially to the1
effect that neither the full faith and credit of the state nor the full faith and credit of2
any public entity of the state are pledged to the payment of the principal or the3
interest on such bonds. The issuance of bonds under the provisions of this Chapter4
shall not directly, indirectly, or contingently obligate the state or any governmental5
unit of the state to levy any taxes whatever therefor or to make any appropriation for6
their payment, other than obligations to make payments by the state or public entities7
to the compact arising out of contracts authorized under this Chapter.8
C. Prior to the issuance of any bonds for a project, a business plan shall be9
prepared detailing the estimated expenditures for and revenues from the operation10
of all capital improvements and the time schedule for such expenditures and receipts.11
The compact shall employ a financial advisor, and the plan shall be recommended12
by the compact's financial advisor as fiscally sound and approved by the compact13
prior to the issuance of any bonds.14
D. Bonds shall be authorized by a resolution of the board and shall be of15
such series, bear such date or dates, mature at such time or times, bear interest at16
such rate or rates, including but not limited to fixed, variable, or zero rates, be17
payable at such time or times, be in such denominations, be in such form, carry such18
registration and exchangeability privilege, be payable in such medium of payment19
and at such place or places, be subject to such terms of redemption prior to maturity20
at such price or prices as determined by the compact, and be entitled to such priority21
on the revenues as such resolution or resolutions may provide.22
E. Bonds shall be sold by the compact at public sale by competitive bid or23
negotiated private sale and at such price or prices as the compact may determine to24
be in the best interest of the compact.25
F. The issuance of bonds shall not be subject to any limitations,26
requirements, or conditions contained in any other law, and bonds may be issued27
without obtaining the consent of the state or any political subdivision, or of any28
agency, commission, or instrumentality thereof, except that the issuance of such29 ENROLLEDHB NO. 1069
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bonds shall be subject to the approval of the State Bond Commission. The bonds1
shall be issued in compliance with the provisions of this Chapter.2
G. For a period of thirty days after the date of publication of a notice of3
intent to issue bonds in the official journal of the compact authorizing the issuance4
of bonds hereunder, any persons in interest shall have the right to contest the legality5
of the resolution and the legality of the bond issue for any cause, but after that time6
no one shall have any cause or right of action to contest the legality of the resolution7
or of the bonds or the security therefor for any cause whatsoever. If no suit, action,8
or proceeding is begun contesting the validity of the resolution, the bonds or the9
security therefor within the thirty days herein prescribed, the compact to issue the10
bonds and to provide for the payment thereof, the legality thereof, and of all of the11
provisions of the resolution authorizing the issuance of the bonds shall be12
conclusively presumed to be legal and shall be incontestable. Any notice of intent13
so published shall set forth in reasonable detail the purpose of the bonds, the security14
therefor, and the parameters of amount, duration, and interest rates. A compact shall15
designate any paper of general circulation in its geographical jurisdiction as its16
official journal. Any suit to determine the validity of bonds issued by the compact17
shall be brought only in accordance with the provisions of the Bond Validation18
Procedures Act (R.S. 13:5121 et seq.). In addition, the Bond Validation Procedures19
Act may also be used to establish the validity of any contract entered into pursuant20
to R.S. 48:2180(18).21
H. All bonds issued pursuant to this Chapter shall have all the qualities of22
negotiable instruments under the commercial laws of the state.23
I. Any pledge of revenues or other monies made by a compact shall be valid24
and binding from the time when the pledge is made. The revenues or monies so25
pledged and thereafter received by the compact shall immediately be subject to the26
lien of such pledge without any physical delivery thereof or further act, and the lien27
of any such pledge shall be valid and binding as against all parties having claims of28
any kind in tort, contract, or otherwise against the compact irrespective of whether29
such parties have notice thereof.30 ENROLLEDHB NO. 1069
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J. Neither the directors of the board nor any person executing the bonds shall1
be liable personally for the bonds or be subject to any personal liability or2
accountability by reason of the issuance thereof.3
K. Bonds of a compact, their transfer, and the income therefrom shall at all4
times be exempt from all taxation by the state or any political subdivision thereof,5
and may or may not be exempt for federal income tax purposes. The bonds issued6
pursuant to this Chapter shall be and are hereby declared to be legal and authorized7
investments for banks, savings banks, trust companies, building and loan8
associations, insurance companies, fiduciaries, trustees, and guardians. Such bonds9
shall be eligible to secure the deposit of any and all public funds of the state and any10
and all public funds of municipalities, parishes, school districts, or other political11
corporations or subdivisions of the state. Such bonds shall be lawful and sufficient12
security for said deposits to the extent of their value.13
L. A compact organized pursuant to this Chapter is hereby authorized to14
provide by resolution for the issuance of refunding bonds of the compact for the15
purpose of refunding any bonds then outstanding and issued by the provisions of this16
Chapter, whether or not such outstanding bonds have matured or are then subject to17
redemption. The compact is further authorized to provide by resolution for the18
issuance of a single issue of bonds of the compact for the combined purposes of (1)19
paying the costs of any project, and (2) refunding bonds of the compact which shall20
then be outstanding, whether or not such outstanding bonds have matured or are then21
subject to redemption. The issuance of such refunding bonds, the maturities, and the22
other details thereof, the rights and remedies of the holders thereof, and the rights,23
powers, privileges, duties, and obligations of the compact with respect to the same,24
shall be governed by the foregoing provisions of this Chapter insofar as the same25
may be applicable.26
M. A compact created hereunder shall have the authority to employ all27
professionals it deems necessary in the issuance of its bonds, including but not28
limited to bond counsel, issuer counsel, financial advisors, and fiduciaries.29 ENROLLEDHB NO. 1069
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are additions.
N. A compact created hereunder shall be deemed to be a public entity for1
purposes of Chapters 13, 13-A, 14, 14-A, 14-B, and 15-A of Title 39 of the2
Louisiana Revised Statutes of 1950, as amended, which statutes shall apply to bonds3
of a compact, provided that in the event of a conflict with the provisions of this4
Chapter, the provisions of this Chapter shall control.5
§2188. Chapter supplemental; liberal construction6
The powers and rights conferred by this Chapter shall be deemed to provide7
an additional and alternative method for the doing of the things authorized thereby,8
shall be regarded as supplemental and additional to powers conferred by other9
general laws, and shall not be regarded as in derogation of any powers now existing.10
This Chapter does and shall be construed to provide a complete and additional11
method for the issuance of bonds. No proceeding, hearing, notice, or approval shall12
be required for the issuance of any bonds or any instrument as security therefor,13
except as provided herein. The provisions of this Chapter shall be liberally construed14
for the accomplishment of its purposes.15
§2189. Cessation of railway; conveyance of project16
A. When bonds issued for any parish-related project and the interest thereon17
have been paid in full, or sufficient funds have been deposited in trust for that18
purpose, and the parish project is in a condition of maintenance satisfactory to the19
parish, said project and any property acquired as part of project costs shall be20
transferred by the compact to and shall thereby be conveyed in full ownership to the21
respective parish; and the parish shall assume jurisdiction and control of the project,22
which shall then become part of the parish road system and be subject to23
maintenance, control, and operation of the parish as an integral part of the parish24
road system, and the parish, in its discretion, may provide that any toll or fee25
collected may be continued for the purpose of maintenance. Upon the later of26
payment in full of all bonds and the interest thereon, the deposit of funds in trust for27
such purpose, or the final resolution of any disputes or litigation pending against a28
compact on such transfer and conveyance date, the existence of the compact shall29
terminate. From the date of such transfer and conveyance of the project, the compact30 ENROLLEDHB NO. 1069
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shall continue to exist to dispose of any unresolved litigation not related to the day-1
to-day management of the project. If no such litigation is pending on the date the2
project transfers and conveys, the compact shall terminate on the transfer and3
conveyance date.4
B. When bonds issued for any municipal-designated project and the interest5
thereon has been paid in full, or sufficient funds have been deposited in trust for that6
purpose and the municipal project is in a condition of maintenance satisfactory to the7
municipality, said project and any property acquired as part of the project costs shall8
be transferred by the compact to and shall thereby be conveyed in full ownership to9
the respective municipality; and the municipality shall assume jurisdiction and10
control of the project, which shall then become part of the municipal road system and11
be subject to maintenance, control, and operation of the municipality as an integral12
part of the municipal road system, and the municipality, in its discretion, may13
provide that any fee collected may be continued for the purpose of maintenance.14
Upon the later of either the payment in full of all bonds and the interest thereon, or15
the deposit of funds in trust for such purpose, or the final resolution of any disputes16
or litigation pending against a compact on such transfer and conveyance date, the17
existence of the compact shall terminate. From the date of such transfer and18
conveyance of the project, the compact shall continue to exist to dispose of any19
unresolved litigation not related to the day-to-day management of the project. If no20
such litigation is pending on the date the project transfers and conveys, the compact21
shall terminate on the transfer and conveyance date.22
C. A notice of transfer and reversion of ownership of any such project shall23
be published twice in the official journal of the state, parish, or municipality, as the24
case may be, to receive such ownership conveyance with the first publication to be25
made not more than one hundred eighty nor less than one hundred fifty days from26
the full bond principal and interest payment or date of deposit in trust therefor and27
the second not more than ninety nor less than sixty days therefrom.28
D. Any parish or municipality may form or join a compact formed under the29
provisions of this Chapter by another parish or municipality with the approval of the30 ENROLLEDHB NO. 1069
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governing authority of such parish and parish president, or the governing authority1
of the municipality.2
Section 3. The provisions of Section 1 of this Act shall become effective if and when3
the state of Texas adopts the Southern Rapid Rail Transit Compact.4
Section 4. In the event of any conflict between the provisions of this Act and those5
of the Act which originated as House Bill 1410 of this Regular Session in 2010, regardless6
of which Act is adopted later or signed later by the governor, the provisions of this Act shall7
supercede and prevail.8
Section 5. The provisions of Sections 2, 3, and 4, and this Section of this Act shall9
become effective July 1, 2010.10
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: