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Regular Session, 2010
HOUSE BILL NO. 277
BY REPRESENTATIVE SAM JONES
DISTRICTS/SPECIAL: Creates the St. Mary Hydroelectric Authority
AN ACT1
To enact Chapter 10-E of Title 33 of the Louisiana Revised Statutes of 1950, to be2
comprised of R.S. 33:4550.1 through 4550.12, relative to St. Mary Parish; to create3
and provide for the St. Mary Hydroelectric Authority as a political subdivision4
within such parish; to provide for the boundaries, governance, and powers and duties5
of the district; to provide for district funding, including the issuance of bonds and the6
use of district funds; and to provide for related matters.7
Notice of intention to introduce this Act has been published8
as provided by Article III, Section 13 of the Constitution of9
Louisiana.10
Be it enacted by the Legislature of Louisiana:11
Section 1. Chapter 10-E of Title 33 of the Louisiana Revised Statutes of 1950,12
comprised of R.S. 33:4550.1 through 4550.12, is hereby enacted to read as follows: 13
CHAPTER 10-E. ST. MARY HYDROELECTRI C AUTHORITY14
§4550.1. Creation15
All the territory in the parish of St. Mary lying within the watershed of the16
Wax Lake Outlet and the Atchafalaya River and their tributaries, shall be embraced17
in the limits of and shall constitute a district to be known as the St. Mary18
Hydroelectric Authority, referred to in this Section as the "district".19 HLS 10RS-131 REENGROSSED
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§4550.2. Board of commissioners1
A. The governing authority of the district shall be vested in a board of2
commissioners, referred to in this Chapter as the "board", composed as follows:3
(1) The state representative who represents House District No. 50, or his4
designee.5
(2) The state representative who represents House District No. 51, or his6
designee.7
(3) The state senator who represents Senate District No. 21, or his designee.8
(4) The president of St. Mary Parish shall appoint two members subject to9
the approval of the parish governing authority.10
(5) The mayor of the town of Baldwin shall appoint one member subject to11
the approval of the municipal governing authority.12
(6) The mayor of the town of Berwick shall appoint one member subject to13
the approval of the municipal governing authority.14
(7) The mayor of the city of Franklin shall appoint one member subject to15
the approval of the municipal governing authority.16
(8) The mayor of the city of Morgan City shall appoint one member subject17
to the approval of the municipal governing authority.18
(9) The mayor of the city of Patterson shall appoint one member subject to19
the approval of the municipal governing authority.20
(10) The chief of the sovereign nation of the Chitimacha Tribe of Louisiana21
shall appoint one member subject to the approval of the tribal council, or one22
member shall be appointed pursuant to any method determined by the tribal council.23
B.(1) The members serving pursuant to Paragraphs (A)(4) through (10) of24
this Section shall serve four-year terms after serving initial terms as follows: two25
members shall serve an initial term of one year; two shall serve two years; two shall26
serve three years; and two shall serve four years as determined by lot at the first27
meeting of the board.28 HLS 10RS-131 REENGROSSED
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(2) Each member serving pursuant to Paragraphs (A)(1) through (3) of this1
Section shall serve during his term of office. Each designee shall serve at the2
pleasure of the designating authority.3
C. Six members of the board shall constitute a quorum for the transaction of4
business.5
D. Any vacancy which occurs prior to the expiration of the term for which6
a member of the board has been appointed shall be filled for the remainder of the7
unexpired term in the same manner as the original appointment.8
E. The board shall fix a time and place for the holding of its regular meetings9
and shall hold at least one regular meeting in each calendar month. Special meetings10
may be held upon call of the chairman or four members of the board at such time and11
place as may be designated, after written notification to the full membership. The12
board shall hold no more than two special meetings during one calendar year.13
F. Each member of the board shall serve without compensation but shall be14
entitled to be reimbursed for expenses actually incurred in attending meetings of the15
board or its committees, or in the transaction of any business of the authority, when16
such business has been authorized by the board.17
G. The board shall elect from its members a chairman, a vice chairman, and18
such other officers as it may deem necessary. The board shall also select a secretary19
and a treasurer, or a secretary-treasurer who need not be members of the board. The20
duties of the officers shall be fixed by the bylaws adopted by the board; however, it21
shall be the duty of the secretary to preserve a record of all business transacted by22
the board and to perform such other duties as the board may designate. The board23
may fix the compensation of any secretary or treasurer who is not a member of the24
board.25
H. The board shall adopt such bylaws and rules and regulations for the26
orderly transaction of its business and affairs as it may deem fit. It may appoint and27
retain all employees it may consider desirable, including engineers and attorneys28
specifically including but not limited to a special counsel who shall be charged with29 HLS 10RS-131 REENGROSSED
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negotiating and renegotiating contracts dealing with fees paid to the district for1
goods or services and any other duties the board may assign. The board may appoint2
a general manager, experienced in the field of electrical generation, management, or3
sales as well as personnel, budgetary, and other administrative fields and may4
provide that all or certain classes of employees shall be employed and discharged by5
the general manager.6
§4550.3. Status; suits; process; exemption from taxation7
A. The district is hereby declared to be a political subdivision of the state of8
Louisiana as defined in the Constitution of Louisiana and an agency and9
instrumentality of the state of Louisiana required by the public convenience and10
necessity for the carrying out of the functions of the state, and to be a corporation11
and body politic and corporate, with power of perpetual succession, invested with12
all powers, privileges, rights, and immunities conferred by law upon other13
corporations of like character, including but not limited to port authorities, port14
commissions, and port, harbor, and terminal districts within the state.15
B. The district shall not have the power to levy taxes, but it may assess and16
collect charges, fees, and rentals for the use of its properties and facilities and for the17
construction, installation, maintenance, and operation of any property or facility18
owned by it or in which it has an interest only for the purpose of and directly related19
to generating or transmitting hydroelectric power. The district shall have and20
possess the authority to sue and be sued. All legal process shall be served upon the21
chairman of the board.22
C. The domicile of the district shall be within St. Mary Parish.23
D. The district, in carrying out the purposes of this Chapter, shall be24
performing an essential public function of the state of Louisiana and shall not be25
required to pay any tax or assessment on its properties or any part thereof, nor to pay26
any excise, license, or other tax or imposition on its operating revenues, and the27
bonds issued pursuant to this Chapter and their transfer and the income therefrom28
shall at all times be exempt from taxation within the state.29 HLS 10RS-131 REENGROSSED
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E. The district is deemed not to be an instrumentality of the state for1
purposes of Article X, Section 1(A) of the Constitution of Louisiana.2
§4550.4. Powers3
A. The district's power, authority, and jurisdiction shall be limited to the4
geographical boundaries of the parish of St. Mary, and all actions of the district shall5
be solely for the purpose of generating or transmitting hydroelectric power. The6
district shall have the power:7
(1) To have a corporate seal.8
(2) To acquire by purchase, gift, devise, lease, expropriation, or other mode9
of acquisition, to hold, pledge, encumber, lease, and dispose of immovable and10
movable property of every kind within its territorial jurisdiction, whether or not11
subject to mortgage or any other lien.12
(3) To make and enter into contracts, conveyances, mortgages, deeds or13
trusts, bonds, and leases in the carrying out of its corporate objectives, including but14
not limited to contracts for the legal services of a special counsel.15
(4) To let contracts for the construction or acquisition in any other manner16
of property and facilities incident to the carrying out of the corporate purposes of the17
district, which contracts shall be let as otherwise provided by law.18
(5) To incur debts and borrow money, but no debt so incurred shall be19
payable from any source other than the revenues to be derived by the district from20
sources other than taxation.21
(6) To fix, maintain, collect, and revise rates, charges, and rentals for the22
facilities of the district and the services rendered thereby, including but not limited23
to all charges for services and goods provided by or through the Wax Lake Outlet24
and the Atchafalaya River.25
(7) To pledge all or any part of its revenues.26
(8) To enter into agreements of any nature with any person, corporation,27
association, or other entity, including public corporations, political subdivisions,28 HLS 10RS-131 REENGROSSED
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municipalities, and federal and state agencies and instrumentalities of every kind, for1
the operation of all or any part of the properties and facilities of the district.2
(9) To control in order to utilize and distribute the waters of the rivers and3
streams of the Wax Lake Outlet and the Atchafalaya River watershed, including but4
not limited to all waters flowing through the Wax Lake Outlet and the Atchafalaya5
River; and in addition to all of the aforementioned powers for the beneficial6
utilization of water resources, to control and employ such waters of the Wax Lake7
Outlet and the Atchafalaya River and its tributaries in the state of Louisiana,8
including the storm and flood waters thereof, as set forth in this Paragraph:9
(a) To provide through practical and legal means for the use and10
coordination of the regulation of the waters of the Wax Lake Outlet and the11
Atchafalaya River and its tributaries.12
(b) To provide by adequate organization and administration for the13
preservation of the equitable rights of the people of the different sections of the14
watershed area in the beneficial use of the waters of the Wax Lake Outlet and the15
Atchafalaya River and its tributaries.16
(c) For the equitable distribution of such waters to the regional potential17
requirements for all uses including hydroelectric, domestic, municipal, maritime,18
port, and manufacturing, provided that no generating capacity, structures, or facilities19
other than hydroelectric shall be installed by the district. The district shall have no20
power to construct, own, or lease any electric transmission or distribution lines;21
however, the district may construct, own, or lease transmission lines in order to make22
electrical power generated by the district available for purchase through a connection23
to transmission lines of an electrical system purchasing electric power from the24
district.25
(10) To utilize the waters of the Wax Lake Outlet and the Atchafalaya River26
for the generation of electric power, to sell the use of the water of such waterways27
for the production of electric power, to provide or furnish power and to that end to28 HLS 10RS-131 REENGROSSED
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construct, maintain, operate, or lease any or all hydroelectric generating facilities1
within its territorial jurisdiction useful for such purpose.2
(11) To purchase or construct all works and facilities necessary or3
convenient to the exercise of the powers provided in this Section and to accomplish4
the purposes specified in this Chapter, and to purchase or otherwise acquire, within5
its territorial jurisdiction all immovable and movable property necessary or6
convenient for carrying out such purposes.7
(12) To enter into any and all contracts and other agreements with any8
person, any public or private entity, any government or governmental agency,9
including the United States of America, the state of Louisiana, and the agencies,10
departments, and political subdivisions thereof, which contracts and other11
agreements may provide for the sale and utilization of the hydroelectricity generated.12
B. Title to all property acquired by the district shall be taken in its corporate13
name and shall be held by it as an instrumentality of the state of Louisiana. The14
district shall have and be recognized to exercise such authority and power of control15
and regulation over the waters of the Wax Lake Outlet and the Atchafalaya River and16
its tributaries as may be exercised by the state of Louisiana, subject to the provisions17
of the Constitution of Louisiana.18
C. Nothing in this Chapter is intended to restrict the use of water from the19
Wax Lake Outlet or the Atchafalaya River or outside of St. Mary Parish for any20
reason other than hydroelectric power generation; however, during any time period21
that the district restricts the use of water within the parish for electric generation or22
is prevented from generating electricity, the utility shall not pay the district for power23
that it was prevented from generating.24
§4550.5. Cooperation with federal and state agencies25
The board may cooperate with the government of the United States and may26
contribute financially to the expense of such improvement projects as are or may be27
authorized or adopted by the United States; it may also cooperate with all agencies,28
departments, and subdivisions of the state of Louisiana in all undertakings, the29 HLS 10RS-131 REENGROSSED
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purpose of which shall be the furtherance of the objects and purposes for which the1
district is created, and the authority to cooperate with any such agency of the state2
or federal government shall include the authority to contract with any such agency3
and to accept any grant or gratuity made for any of the purposes of this Chapter.4
§4550.6. Authority of state agencies to cooperate; construction of facilities5
A. There is hereby expressly conferred upon the state of Louisiana, its6
departments, and agencies and upon the political subdivisions of the state, the7
authority to cooperate with the board to make contributions or grants to the district8
for any of the purposes of this Chapter and to enter into contracts and agreements9
with the district in furtherance of any of the purposes of this Chapter.10
B. The district may locate, construct, operate, and maintain any of its works11
or facilities over, under, through, in, or along any of the lands which are the property12
of the state or of any subdivision, institution, agency, or instrumentality thereof,13
within its territorial jurisdiction provided that a cooperative endeavor is agreed to14
and executed between the district and the appropriate state entity.15
C.(1) The district and its authorized agents and employees may have the16
privilege of entering upon any lands, waters, and premises in the state for the purpose17
of making surveys, soundings, drillings, examinations, and appraisals as it may deem18
necessary or convenient for the purpose of this Chapter.19
(2) The district shall make reimbursement for any actual damages resulting20
to such lands, waters, or premises as a result of such activities.21
§4550.7. Bonds22
A.(1) For the purpose of providing funds for the acquisition, by purchase,23
construction or otherwise, of any property or facilities which the district is authorized24
to acquire pursuant to this Chapter, including the acquisition of water rights, and for25
extending and improving any such property and facilities, the district may incur debt26
and issue revenue bonds to be secured by the fees, assessments, or any revenues27
collected by the district for the purposes of the district. There may be included in the28
amount of any such bond issue reasonable allowance for legal, engineering, and29 HLS 10RS-131 REENGROSSED
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fiscal services, interest during construction and for one year after the estimated date1
of completion of construction, and other expenses in connection with the2
authorization and issuance of the bonds and the acquisition or construction of the3
improvements.4
(2) Revenue bonds of the district shall be issued in the manner as provided5
in Part XII or Part XIII of Chapter 4 of Subtitle II of Title 39 of the Louisiana6
Revised Statutes of 1950 or any other applicable law. Revenue bonds issued under7
this Section shall be authorized by resolution of the district and shall be limited8
obligations of the district, the principal of and interest on which shall be payable9
solely from the revenues as provided in Paragraph (1) of this Subsection or from10
income and revenue derived from the sale, lease, or other disposition of the project11
or facility to be financed by the bonds, from the income and revenue derived from12
the sale, lease, or other disposition of any existing project or facility acquired,13
constructed, and improved under the provisions of this Section, or from any other14
income or revenue derived from any project or facility so financed or any such15
existing project or facility; however, in the discretion of the district, the bonds may16
be additionally secured by mortgage or other security device covering all or part of17
the project from which the revenues so pledged may be derived. Any refunding18
bonds issued pursuant to this Subsection shall be payable from any source described19
above or from the investment of any of the proceeds of the refunding bonds20
authorized under this Section and shall not constitute an indebtedness or pledge of21
the general credit of the district within the meaning of any constitutional or statutory22
limitation of indebtedness and shall contain a recital to that effect. Bonds of the23
district shall be issued in such form, shall be in such denominations, shall bear24
interest, shall mature in such manner, and shall be executed as provided in the25
resolution authorizing the issuance thereof. The bonds may be subject to redemption26
at the option of and in the manner determined by the board in the resolution27
authorizing the issuance thereof.28 HLS 10RS-131 REENGROSSED
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(3) The district may in its own name and behalf borrow from time to time in1
the form of certificates of indebtedness. The certificates shall be secured by the2
dedication and pledge of monies of the district derived from any lawful sources,3
including those revenues as provided in Paragraph (1) of this Subsection and any4
other sources of income or revenue of the district, or any combination of such5
sources, provided that the term of such certificates shall not exceed ten years, and the6
annual debt service on the amount borrowed shall not exceed the anticipated7
revenues to be dedicated and pledged to the payment of the certificates of8
indebtedness, as shall be estimated by the board of the district at the time of the9
adoption of the resolution authorizing the issuance of such certificates. The estimate10
of the board referred to in the authorizing resolution shall be conclusive for all11
purposes of this Section.12
(4) Bonds, certificates, or other evidences of indebtedness issued by the13
district pursuant to this Section are deemed to be securities of public entities within14
the meaning of Chapters 13 and 13-A of Title 39 of the Louisiana Revised Statutes15
of 1950, and shall be subject to defeasance in accordance with the provisions of16
Chapter 14 of Title 39 of the Louisiana Revised Statutes of 1950, and may be17
refunded in accordance with the provisions of Chapters 14-A and 15 of Title 39 of18
the Louisiana Revised Statutes of 1950, and may also be issued as short-term19
revenue notes of a public entity under Chapter 15-A of Title 39 of the Louisiana20
Revised Statutes of 1950.21
(5) The issuance and sale of bonds, certificates of indebtedness, notes, or22
other evidence of debt by the district shall be subject to approval by the State Bond23
Commission.24
(6) Any resolution authorizing the issuance of bonds pursuant to this Chapter25
may contain covenants, including but not limited to:26
(a) The purpose or purposes to which the proceeds of the sale of the bonds27
may be applied and the deposit, use, and disposition thereof.28 HLS 10RS-131 REENGROSSED
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(b) The use, deposit, securing of deposits, and disposition of the revenues of1
the district, including the creation and maintenance of reserves.2
(c) The issuance of additional obligations payable from the revenues of the3
district.4
(d) The operation and maintenance of the properties of the district.5
(e) The insurance to be carried thereon and the use, deposit, and disposition6
of insurance monies.7
(f) The books of account and records and the inspection and audit thereof8
and the accounting methods of the district.9
(g) The non-rendering of any free service by the district.10
(h) The preservation of the properties of the district free from any mortgage,11
sale, lease, or other encumbrance not specifically permitted by the terms of the12
resolution.13
(i) The appointment and the powers and duties of any trustee who may be14
named in such resolution for the purpose of carrying out functions designed to15
safeguard the security of such bonds.16
(7) While any bonds are outstanding under this Section, it shall be the duty17
of the board to fix and from time to time to revise the rates of compensation for all18
commodities and services sold or rendered by the district which will be fully19
adequate to pay the expenses of operating and maintaining the district and its20
properties, to pay principal of and interest on its obligations promptly as principal21
and interest fall due, and to carry out all of the provisions and covenants of the22
resolution or resolutions authorizing such bonds. Nothing contained in this Section23
shall be so construed as to prevent the execution of leases or agreements by the24
district providing for the lease of properties of the district or the sale of commodities25
and services sold or rendered by the district at fixed rentals or prices for a term of26
years, provided that the rentals or prices so named are at the time of the execution27
of any such lease or agreement, together with the other reasonably anticipated28
revenues of the district, sufficient to assure the ability of the district to carry out the29 HLS 10RS-131 REENGROSSED
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requirements of this Chapter and the requirements of the resolution or resolutions1
authorizing its bonds.2
(8) Such bonds, certificates of indebtedness, notes, or other evidence of debt3
shall have all the qualities of negotiable instruments under the commercial laws of4
the state of Louisiana.5
§4550.8. Contesting validity of bonds; contracts6
Bonds and any other evidences of indebtedness of the district shall be issued,7
sold, and delivered in accordance with the terms and provisions of a resolution8
adopted by the board. For a period of thirty days from the date of publication of any9
resolution or ordinance authorizing the issuance of any bonds, certificates of10
indebtedness, notes, or other evidence of debt of the district, any interested person11
may contest the legality of such resolution or ordinance and the validity of such12
bonds, certificates of indebtedness, notes, or other evidence of debt issued or13
proposed to be issued thereunder and the security of their payment, after which time14
no one shall have any cause of action to contest the legality of said resolution or15
ordinance or to draw in question the legality of said bonds, certificates of16
indebtedness, notes, or other evidence of debt, the security therefor, or the debts17
represented thereby for any cause whatever, and it shall be conclusively presumed18
that every legal requirement has been complied with, and no court shall have19
authority to inquire into such matters after the lapse of thirty days.20
§4550.9. Acquisition of lands, servitudes, and rights-of-way21
A. There is expressly conferred upon the district, the right to acquire lands,22
servitudes, and rights-of-way in St. Mary Parish solely for the purpose of generating23
or transmitting hydroelectric power by purchase, exchange, expropriation, or24
otherwise.25
B. Should the district acquire the ownership of any timber it may sell the26
same in the following manner:27
(1) The district shall offer the timber for sale at public auction after having28
first given public notice of such sale in the manner provided by law.29 HLS 10RS-131 REENGROSSED
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(2) If no satisfactory bid is received, the district may sell the timber at1
private sale to any purchaser for any amount greater than the amount offered by the2
highest bidder at the public auction.3
§4550.10. Budget; administrative costs; revenues4
A. The district shall develop and adopt an initial five-year projected5
administrative budget. The district shall thereafter develop and adopt an annual6
budget for administrative costs based upon a baseline established by the projected7
budget.8
B.(1) Beginning the first year in which the district develops and adopts an9
annual budget for administrative costs, at least ninety percent of all revenues earned10
by the district shall be used to provide hurricane protection for electrical11
transmission and distribution in St. Mary Parish. The goal of any such protection12
shall be to increase the resiliency of electrical transmission and distribution systems.13
(2) The district may enter into a cooperative endeavor agreement for such14
purpose with any electrical system providing services in St. Mary Parish regardless15
of whether any such system is privately owned, publicly owned, or part of a16
cooperative.17
(3) Beginning the first year in which the district develops and adopts an18
annual budget for administrative costs and each year thereafter, no more than ten19
percent of the revenues earned by the district shall be used for administrative costs.20
§4550.11. Conflicts; approval of projects21
All actions or activities taken pursuant to this Chapter shall be taken or22
implemented only to the extent such actions or activities are not in conflict with and23
are consistent with the Atchafalaya Basin Master Plan or Annual Basin Plan and the24
Coastal Protection and Restoration Authority's Master Plan for coastal protection and25
restoration for a sustainable coast. Furthermore, any project authorized by the26
district which may impact water flow or water levels within the Atchafalaya Basin,27
as defined by R.S. 30:2000.2, or through Wax Lake Outlet or the Atchafalaya River28 HLS 10RS-131 REENGROSSED
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shall be approved in advance by the Atchafalaya Basin Research and Promotion1
Board and the Coastal Protection and Restoration Authority.2
§4550.12. Chapter as complete authority; audits and reports; construction of3
Chapter4
A. This Chapter shall be full, complete, and independent authority for the5
performance of all acts authorized by this Chapter, and no other statute or legislative6
act shall be construed to be applicable to the carrying out of the powers granted by7
this Chapter unless expressly made applicable.8
B.(1) A complete book of accounts shall be kept by the district. Within one9
hundred eighty days after the close of each fiscal year, the account books and records10
of the district and of the depository of the district shall be audited by the legislative11
auditor, or a certified public accountant, in such manner as to enable him to report12
to the legislature as to the manner and purpose of the expenditure of all funds of the13
district, and a report thereon shall be submitted at the first regular meeting of the14
board held following the audit.15
(2) Two copies of the report shall be filed in the office of the district; one16
copy of the report shall be filed with the legislative auditor. All copies shall be open17
to public inspection.18
C. This Chapter is intended to carry out a function of the state to protect the19
health and welfare of the inhabitants of the portion of the state to be affected by this20
Chapter and shall be liberally construed by the courts to effect its purposes.21
Section 2. This Act shall become effective upon signature by the governor or, if not22
signed by the governor, upon expiration of the time for bills to become law without signature23
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If24
vetoed by the governor and subsequently approved by the legislature, this Act shall become25
effective on the day following such approval.26 HLS 10RS-131 REENGROSSED
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Sam Jones HB No. 277
Abstract: Creates the St. Mary Hydroelectric Authority as a political subdivision in St.
Mary Parish and provides for the governance and powers and duties of the district.
Provides for district funding.
Proposed law creates the St. Mary Hydroelectric Authority as a political subdivision of the
state, to be comprised of all of the territory in St. Mary Parish lying within the watershed of
the Wax Lake Outlet and the Atchafalaya River and their tributaries. The district shall be
domiciled in St. Mary Parish.
Proposed law provides that the district shall be governed by a board of 11 commissioners
composed as follows:
(1)The state representative who represents House District No. 50, or his designee.
(2)The state representative who represents House District No. 51, or his designee.
(3)The state senator who represents Senate District No. 21, or his designee.
(4)Two members appointed by the president of St. Mary Parish, subject to the approval
of the parish governing authority.
(5)One member appointed by the mayor of the town of Baldwin, subject to the approval
of the municipal governing authority.
(6)One member appointed by the mayor of the town of Berwick, subject to the approval
of the municipal governing authority.
(7)One member appointed by the mayor of the city of Franklin, subject to the approval
of the municipal governing authority.
(8)One member appointed by the mayor of the city of Morgan City, subject to the
approval of the municipal governing authority.
(9)One member appointed by the mayor of the city of Patterson, subject to the approval
of the municipal governing authority.
(10)One member appointed by the chief of the sovereign nation of the Chitimacha Tribe
of La., subject to the approval of the tribal council, or one member appointed
pursuant to any method determined by the tribal council.
Requires appointed members to serve four-year staggered terms. Provides that elected
officials shall serve during their term of office. Provides that a designee shall serve at the
pleasure of the designating authority. Provides for reimbursement of expenses of board
members. Otherwise provides members serve without compensation.
Provides for a chairman, vice chairman, and other officers elected by the board from its
membership. Provides for a secretary, treasurer, or secretary-treasurer who shall not be
board members and authorizes the board to fix their compensation. Authorizes the board to
hire employees, including engineers and attorneys and a general manager. HLS 10RS-131 REENGROSSED
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are additions.
Proposed law provides that the district shall be an agency and instrumentality of the state
required by the public convenience and necessity for the carrying out of the functions of the
state, and shall be a corporation and body politic and corporate, with power of perpetual
succession, invested with all powers, privileges, rights, and immunities conferred by law
upon other corporations of like character, including but not limited to port authorities, port
commissions, and port, harbor, and terminal districts within the state.
Proposed law provides that the district shall not have the power to levy taxes, but it may
assess and collect charges, fees, and rentals for the use of its properties and facilities and for
the construction, installation, maintenance, and operation of such properties or facilities
owned by it or in which it has an interest only for the purpose of and directly related to
generating or transmitting hydroelectric power.
Proposed law provides that the district and its operating income shall be exempt from
taxation within the state. Additionally provides that any bonds issued pursuant to proposed
law and their transfer and income therefrom shall be exempt from taxation within state.
Proposed law provides that the district is not an instrumentality of the state for purposes of
the state civil service provisions of the state constitution.
Proposed law limits that district's power, authority, and jurisdiction to the geographical
boundaries of St. Mary Parish. Requires that all of the district's actions be solely for the
purpose of generating or transmitting hydroelectric power. Provides for the powers and
duties of the district, including but not limited to the following:
(1)To have a corporate seal.
(2)To acquire, hold, pledge, encumber, lease, and dispose of real and personal property
within its territorial jurisdiction.
(3)To enter contracts, conveyances, mortgages, deeds or trusts, bonds, and leases.
(4)To let contracts for construction or acquisition of property and facilities.
(5)To incur debts and borrow money, but no debt so incurred shall be payable from any
source other than the revenues to be derived by the district from sources other than
taxation.
(6)To fix, maintain, collect, and revise rates, charges, and rentals for the facilities of the
district and the services rendered thereby, including but not limited to all charges for
services and goods provided by or through the Wax Lake Outlet and the Atchafalaya
River.
(7)To enter into agreements of any nature for the operation of all or any part of the
properties and facilities of the district.
(8)To control in order to utilize and distribute the waters of the rivers and streams of the
Wax Lake Outlet and the Atchafalaya River watershed, including but not limited to
all waters flowing through the Wax Lake Outlet and the Atchafalaya River. Provides
for the district to provide for the use and regulation of such waters, to preserve the
rights of people in the watershed in beneficial use of the waters, to provide for
equitable distribution of waters for potential uses. Specifies that the district shall not
construct, own, or lease any electric transmission or distribution lines.
(9)To utilize the waters of the Wax Lake Outlet and the Atchafalaya River for the
generation of electric power, to sell the use of the water of such waterways for the
production of electric power, to provide or furnish power and to that end to construct, HLS 10RS-131 REENGROSSED
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maintain, operate, or lease any or all hydroelectric generating facilities within its
territorial jurisdiction useful for such purpose.
(10)To purchase or construct facilities and to purchase or otherwise acquire property.
(11)To enter into contracts for sale and use of hydroelectricity.
Proposed law provides that it does not intend to restrict use of water from the Wax Lake
Outlet or Atchafalaya River or outside of St. Mary Parish except for hydroelectric power
generation. Provides that the utility shall not pay the district for power it is prevented from
generating.
Proposed law grants the district such authority and power to control and regulate the waters
of the Wax Lake Outlet and the Atchafalaya River and its tributaries as may be exercised by
the state, subject to the constitution.
Proposed law authorizes the board to cooperate with the U.S. government and to contribute
financially to the expense of such improvement projects as are or may be authorized or
adopted by the U.S. Further authorizes the district to cooperate with all agencies,
departments, and subdivisions of the state in all undertakings, the purpose of which will be
the furtherance of the objects and purposes for which the district is created. Confers upon
the state, its departments, agencies, and political subdivisions the authority to make
contributions or grants to the district and to enter into contracts or agreements for any
purposes of proposed law.
Proposed law authorizes the district to locate, construct, operate, and maintain any of its
works or facilities over, under, through, in, or along any of the lands which are the property
of the state, its subdivisions or instrumentalities pursuant to a cooperative endeavor
agreement between the district and the appropriate state entity. Further authorizes the
district and its authorized agents and employees to enter upon any lands, waters, and
premises in the state for certain purposes. Requires the district to make reimbursement for
actual damages resulting from entering upon any lands, waters, and premises in the state.
Proposed law provides that for the purpose of providing funds for the acquisition of any
property or facilities which the district is authorized to acquire, including the acquisition of
water rights, and for extending and improving any such property and facilities, the district
may from time to time incur debt and issue revenue bonds. Authorizes refunding bonds,
certificates of indebtedness, and other debt. Provides further with respect to such bonds.
Proposed law grants the district the right to acquire lands, servitudes, and rights-of-way in
St. Mary Parish solely for the purpose of generating or transmitting hydroelectric power by
purchase, exchange, expropriation, or otherwise. Provides for sale of any timber the district
may acquire.
Proposed law requires that the district develop and adopt an initial five-year projected
administrative budget and to thereafter develop and adopt an annual budget for
administrative costs based upon a baseline established by the projected budget.
Proposed law requires the district, beginning the first year in which the district adopts an
annual budget for administrative costs, to use at least 90% of its revenues to provide
hurricane protection for electrical transmission and distribution in St. Mary Parish.
Authorizes the district to enter into a cooperative endeavor agreement for such purpose with
any electrical system providing services in St. Mary Parish. Provides that no more than 10%
of revenues earned by the district shall be used for administrative costs after the initial five-
year period.
Proposed law requires that all actions taken by the district be implemented only to the extent
they are not in conflict with and are consistent with the Atchafalaya Basin Master Plan or HLS 10RS-131 REENGROSSED
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Annual Basin Plan and the Coastal Protection and Restoration Authority's Master Plan for
coastal protection and restoration for a sustainable coast.
Proposed law requires the district to keep a complete book of accounts. Requires, within
180 days after the close of each fiscal year, that the account books and records of the district
and of the district's depository be audited by the legislative auditor, or a CPA, in such
manner as to enable him to report to the legislature as to the manner and purpose of the
expenditure of all funds of the district. Requires that two copies of the report be filed in the
office of the district, one filed with the legislative auditor.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 33:4550.1-4550.12)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Municipal, Parochial and
Cultural Affairs to the original bill.
1. Added a provision that limits the authority granted to the district to assess and
collect charges, fees, and rentals for the use of its properties to purposes directly
related to generating or transmitting hydroelectric power.
2. Added a provision that limits the district's power, authority, and jurisdiction to
the geographical boundaries of the parish of St. Mary. Added a provision that
requires that all of the district's actions be for the sole purpose of generating or
transmitting hydroelectric power.
3. Removed a provision that authorizes the district to do all things necessary or
convenient to carry out its functions.
4. Added provisions that expand the authority granted to the district to provide for
the equitable distribution of waters for potential uses to include maritime and
port purposes.
5. Added a provision that prohibits the district from installing any structures or
facilities other than for hydroelectric purposes.
6. Removed provisions that require that all plans and works provided by the district
have the primary regard to the necessary and potential needs for water. Removed
provisions that authorize the district to provide for the use of waters for
commercial and industrial enterprises and for the use of waters for the
development and distribution of hydroelectric power.
7. Added a provision that proposed law does not intend to restrict use of water
outside of St. Mary Parish except for hydroelectric power generation. Added a
provision to clarify that the that the utility shall not pay the district for power it
is prevented from generating if the district restricts the use of water within the
parish for electric generation.
8. Added the requirement that the district enter into a cooperative endeavor
agreement with the appropriate state entity prior to locating, constructing,
operating, and maintaining any of its works or facilities on state property.
Removed the provisions that authorize the district to locate, construct, operate,
and maintain its works and facilities on state property without obtaining
consents, licenses, or permits. HLS 10RS-131 REENGROSSED
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9. Removed provisions that the entry upon any lands, waters, and premises in the
state by the district or its authorized agents shall not be deemed a trespass or an
entry under any expropriation proceedings if the district gives prior notice to the
property owner.
10.Removed provisions that grant the district the right to use all waters and to
possess all water rights in the waters of the Wax Lake Outlet and the Atchafalaya
River and its tributaries necessary for district purposes.
11.Added a provision that limits the rights granted to the district to acquire lands,
servitudes, and rights-of-way. Provided that such rights shall be exercised only
within St. Mary Parish and shall be solely for the purpose of generating or
transmitting hydroelectric power.
12.Removed minimizing damage to critical infrastructure as a goal of hurricane
protection efforts of the district. Also removed provisions that such hurricane
protection shall be considered a public purpose.
13.Removed provisions that no publication of any notice or proceeding is necessary
except as provided in proposed law. Also removed provisions that the
proceedings adopted by the district's board shall not be subject to referendum or
any election requirement.