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Regular Session, 2010
HOUSE BILL NO. 957
BY REPRESENTATIVE LORUSSO
DISTRICTS/TAXING: Creates the Lake Area Taxing District in Orleans Parish
AN ACT1
To enact R.S. 33:9038.64, relative to Orleans Parish; to create and provide for the Lake Area2
Taxing District within the parish; to provide relative to the boundaries, purpose, and3
governance of the district; to provide relative to the powers and duties of the district4
including the power to provide for tax increment financing; to provide for the term5
of the district; and to provide for related matters.6
Notice of intention to introduce this Act has been published7
as provided by Article III, Section 13 of the Constitution of8
Louisiana.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 33:9038.64 is hereby enacted to read as follows:11
ยง9038.64. Lake Area Taxing District; parish of Orleans12
A. Creation. The Lake Area Taxing District, a special taxing district and13
political subdivision of the state, referred to in this Section as the "district", is hereby14
created within the parish of Orleans.15
B. Boundaries. The district shall be comprised of the area of the parish of16
Orleans lying within the following perimeter: commencing at the intersection of17
City Park Avenue and Orleans Avenue, west along City Park Avenue to its18
intersection with Metairie Road, continue west along Metairie Road to its19
intersection with the 17th Street Canal, then north along the 17th Street Canal to its20
intersection with Lake Pontchartrain, continue east along Lake Pontchartrain then21
east along the northern boundary of Breakwater Park, continue east along the22 HLS 10RS-827 REENGROSSED
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northern boundary of Lake Shore Park, then south along the eastern boundary of1
Lake Shore Park to its intersection with Robert E. Lee Boulevard, then west along2
Robert E. Lee Boulevard to its intersection with Orleans Avenue, then south along3
Orleans Avenue to the point of beginning.4
C. Purpose. The district is created to provide for cooperative economic5
development between the district, the city of New Orleans, and the owner or owners6
of businesses and property within the district in order to provide for supplemental7
maintenance, repair, and upkeep to the streets and alleyways and related8
infrastructure of the district.9
D.(1) Governance. In order to provide for the orderly development of the10
district and to effectuate the purposes of the district, the district shall be administered11
and governed by an eleven-member board of commissioners, referred to in this12
Section as the "board". The board shall be composed as follows:13
(a) Three members shall be appointed by the member or members of the14
Louisiana House of Representatives who represent the area that comprises the15
district.16
(b) Three members shall be appointed by the member or members of the17
Louisiana Senate who represent the area that comprises the district.18
(c) Three members shall be appointed by the member or members of the19
governing authority of the city of New Orleans who represent the area that comprises20
the district.21
(d) Two members shall be appointed by the mayor of the city of New22
Orleans.23
(2) All members shall be residents and qualified voters of the district.24
(3)(a) Members shall serve terms concurrent with the respective appointing25
authority.26
(b) Notwithstanding any provision of law to the contrary, including R.S.27
42:2, upon the expiration of any term of any appointed member, that position on the28 HLS 10RS-827 REENGROSSED
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board shall immediately become vacant and shall be filled in accordance with the1
provisions of Subparagraphs (1)(a) through (d) of this Subsection.2
(4) As soon as practicable after its appointment, the board shall meet and3
elect from its members a chairman, a vice chairman, a treasurer, and such other4
officers as it may deem appropriate. A secretary of the board may be selected from5
among the members or may be otherwise selected or employed by the board. The6
duties of the officers shall be fixed by bylaws adopted by the board.7
(5) The board shall adopt such rules and regulations as it deems necessary8
or advisable for conducting its business and affairs and shall engage such assistants9
and employees as is needed to assist the board in the performance of its duties. It10
shall hold regular meetings as shall be provided by its bylaws and may hold special11
meetings at such times and places within or without the district's boundaries as may12
be prescribed in its rules or regulations.13
(6) A majority of the members of the board shall constitute a quorum for the14
transaction of business. The board shall keep minutes of all regular and special15
meetings and shall make them available to the public in conformance with law.16
(7) The members of the board shall serve without compensation and shall not17
receive reimbursement for expenses.18
E. Rights and powers. (1) The district, acting by and through its board of19
commissioners, shall have and exercise all powers of a political subdivision and20
special taxing district necessary or convenient for the carrying out of its objects and21
purposes, including but not limited to the following:22
(a) To sue and be sued.23
(b) To adopt bylaws and rules and regulations.24
(c) To receive by gift, grant, donation, or otherwise any sum of money,25
property, aid, or assistance from the United States, the state of Louisiana, or any26
political subdivision thereof, or any person, firm, or corporation.27
(d) For the public purposes of the district, to enter into contracts, agreements,28
or cooperative endeavors with the state and its political subdivisions or political29 HLS 10RS-827 REENGROSSED
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corporations and with any public or private association, corporation, business entity,1
or individual.2
(e) To appoint officers, agents, and employees, prescribe their duties, and fix3
their compensation. The board may appoint or hire an executive director as it deems4
necessary for the purpose of carrying out its day-to-day work operations for5
convenience and effectiveness in the administration of plans. The board may6
contract with consultants for project management and with developers or planners7
for such services as it may require. The board may delegate certain authority to its8
employees, consultants, and executive director to act on its behalf, which delegation9
of authority shall be specific and in writing.10
(f) To acquire by gift, grant, purchase, lease, or otherwise such property as11
may be necessary or desirable for carrying out the objectives and purposes of the12
district and to mortgage and sell such property.13
(g) In its own name and on its own behalf, to incur debt and to issue bonds,14
notes, certificates, and other evidences of indebtedness. For this purpose, the district15
shall be deemed and considered to be an issuer for purposes of R.S. 33:9037 and16
shall, to the extent not in conflict with this Section, be subject to the provisions of17
R.S. 33:9037.18
(h) To establish such funds or accounts as are necessary for the conduct of19
the affairs of the district.20
(2) The board shall prepare an annual budget of its operating expenses, the21
total amount of which, exclusive of gifts, shall be within the total amounts22
appropriated for the purpose by the board.23
(3) The board of commissioners shall have an annual audit of its operating24
expenses available for public review.25
F. Term. The district shall dissolve and cease to exist one year after the date26
all bonds, notes, and other evidences of indebtedness of the district, including27
refunding bonds, are paid in full as to both principal and interest; however, under no28 HLS 10RS-827 REENGROSSED
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event shall the district have an existence of less than three years or more than ten1
years.2
G. Tax increment financing. (1)(a) Except as provided in Subparagraphs3
(b) and (c) of this Paragraph, the board shall have all authorities provided for in R.S.4
33:9038.34 to implement sales tax increment financing; however, any tax or portion5
of a tax which has been previously dedicated to another purpose according to a6
proposition approved by voters shall be used as such a tax increment only if7
approved by a majority of the registered voters of the taxing authority levying the tax8
voting on the proposition at an election held for such purpose in accordance with the9
Louisiana Election Code.10
(b) Notwithstanding the provisions of R.S. 33:9038.34(A)(6), state of11
Louisiana sales tax increments shall not be dedicated to pay the revenue bonds of a12
local economic development project.13
(c) The board shall not implement sales tax increment financing pursuant to14
R.S. 33:9038.34 without the prior approval of the governing authority of the city of15
New Orleans.16
(2)(a) The board shall designate the boundaries of a sales tax area and shall17
designate the local sales taxes which are to be used in determining the sales tax18
increments and the initial annual baseline collection rate for the sales tax area, which19
shall be the amount of such designated sales taxes collected in the sales tax area in20
the fiscal year that the district most recently completed prior to the establishment of21
the sales tax area. In addition, a monthly baseline collection rate shall be determined22
by dividing the initial annual baseline collection rate by twelve.23
(b) The initial annual baseline collection rate and the monthly baseline24
collection rate shall be certified by the chief financial officer for the parish of25
Orleans. The certification shall also be published one time in the official journal of26
the parish of Orleans.27
(c) If the amounts of the initial annual baseline collection rate and the28
monthly baseline collection rate are not contested within thirty days after the29 HLS 10RS-827 REENGROSSED
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publication, then such amounts shall be conclusively presumed to be valid, and no1
court shall have any jurisdiction to alter or invalidate the designation of the amount2
of either the initial annual baseline collection rate or the monthly baseline collection3
rate.4
H. Liberal construction. This Section, being necessary for the welfare of the5
district and its residents, shall be liberally construed to effect the purposes thereof.6
Section 2. This Act shall become effective upon signature by the governor or, if not7
signed by the governor, upon expiration of the time for bills to become law without signature8
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If9
vetoed by the governor and subsequently approved by the legislature, this Act shall become10
effective on the day following such approval.11
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)]
Lorusso HB No. 957
Abstract: Creates the Lake Area Taxing District, in the parish of Orleans, as a special
taxing district to provide for cooperative economic development between the district,
the city of New Orleans, and the owner or owners of businesses and property within
the district. Authorizes the district to provide for the use of sales tax increment
financing.
Proposed law creates the Lake Area Taxing District in the parish of Orleans as a special
taxing district and political subdivision of the state to provide for cooperative economic
development between the district, the city of New Orleans, and the owner or owners of
businesses and property within the district in order to provide for supplemental maintenance,
repair, and upkeep to the streets and alleyway s and related infrastructure of the district.
Provides for district boundaries.
Proposed law provides that the district shall be administered and governed by an eleven-
member board of commissioners. Provides that the board shall be composed as follows:
(1)Three members appointed by the member(s) of the La. House of Representatives
who represent the area that comprises the district.
(2)Three members appointed by the member(s) of the La. Senate who represent the area
that comprises the district.
(3)Three members appointed by the member(s) of the governing authority of the city
of New Orleans who represent the area that comprises the district.
(4)Two members appointed by the mayor of the city of New Orleans. HLS 10RS-827 REENGROSSED
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Proposed law requires members to be residents and qualified voters of the district. Provides
that the terms of members shall be concurrent with the appointing authority.
Proposed law provides that the district, through its board, shall have and exercise all powers
of a political subdivision and special taxing district necessary or convenient for the carrying
out of its objects and purposes, including but not limited to the following:
(1)To sue and be sued.
(2)To adopt bylaws and rules and regulations.
(3)To receive any sum of money, property, or assistance from the U.S., the state of La.,
or any political subdivision thereof, or any person, firm, or corporation.
(4)To enter into contracts, agreements, or cooperative endeavors with the state and its
political subdivisions or political corporations and with any public or private
association, corporation, business entity, or individual.
Proposed law specifically gives the district the power to incur debt and to issue bonds, notes,
certificates, and other evidences of indebtedness.
Proposed law requires the board to prepare an annual budget of its operating expenses.
Further requires the board to have an annual audit of its operating expenses available for
public review.
Proposed law provides that the district shall dissolve and cease to exist one year after the
date all bonds, notes, and other evidences of indebtedness of the district are paid; however,
under no event shall the district have an existence of less than three years or more than 10
years.
Proposed law provides that the board shall have authority to implement sales tax increment
financing, subject to voter approval. Prohibits the dedication of state sales tax increments
to pay the revenue bonds of a local economic development project. Requires the board to
receive the approval of the governing authority of the city of New Orleans prior to
implementing sales tax increment financing.
Proposed law requires the board to designate the boundaries of a sales tax area and to
designate the local sales taxes which are to be used in determining the sales tax increments
and the initial annual baseline collection rate and monthly baseline collection rate for the
sales tax area, which shall be the amount of such designated sales taxes collected in the sales
tax area in the fiscal year that the district most recently completed prior to the establishment
of the sales tax area.
Proposed law provides that the initial annual baseline collection rate and the monthly
baseline collection rate shall be certified by the chief financial officer of Orleans Parish. The
certification shall also be published one time in the official journal of Orleans Parish.
Proposed law provides that if the amounts of the initial annual baseline collection rate and
the monthly baseline collection rate are not contested within 30 days after publication, then
such amounts shall be conclusively presumed to be valid, and no court shall have any
jurisdiction to alter or invalidate the designation of the amount of either the initial annual
baseline collection rate or the monthly baseline collection rate.
Proposed law provides that proposed law, being necessary for the welfare of the district and
its residents, shall be liberally construed to effect the purposes thereof.
(Adds R.S. 33:9038.64) HLS 10RS-827 REENGROSSED
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Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Municipal, Parochial and
Cultural Affairs to the original bill.
1. Changes a provision of proposed law to clarify that the board may hold special
meetings within or without the district's boundaries.
2. Adds a requirement that the board receive the approval of a majority of the
registered voters, rather than a majority of the voters, of the taxing authority
levying a tax prior to implementing tax increment financing. Adds a requirement
that the election to approve the use of tax increment financing be held in
accordance with the La. Election Code.
3. Remainder of amendments are technical.
House Floor Amendments to the engrossed bill.
1. Relative to the membership of the board, increases the membership from nine to
11 and changes the membership by granting two additional appointments to each
of the following persons who represent the area that comprises the district: the
member(s) of the La. House of Representatives, the member(s) of the La. Senate,
and the member(s) of the governing authority of the city of New Orleans. Grants
an additional appointment to the mayor. Removes provisions that provide that
the presidents of various neighborhood associations or their designees serve on
the board.
2. Removes provisions that require appointed members to be residents of Lakeview.
Removes provisions that require at least one member to reside in South
Lakeview and at least one member to reside in West Lakeview.
3. Removes provisions that members serve until their successors have been
appointed and qualified. Removes provisions that require any vacancy which
occurs in the membership of the board to be filled in the same manner as the
original appointment. Adds a provision that, upon the expiration of a term, that
position is immediately vacant and to be filled in accordance with the provisions
of proposed law.