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Regular Session, 2010
HOUSE BILL NO. 973
BY REPRESENTATIVE FOIL
DISTRICTS/SPECIAL: Provides relative to Sustainable Energy Financing Districts
AN ACT1
To amend and reenact R.S. 33:130.812(C), relative to Sustainable Energy Financing2
Districts; to provide relative to financing for projects in such districts; to provide for3
property assessment and collection of such assessments within such districts; and to4
provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 33:130.812(C) is hereby amended and reenacted to read as follows:7
ยง130.812. Financing for projects8
* * *9
C.(1) If agreed by the district, the amount of the loan including interest rates10
and administrative fees shall be assessed against the immovable property upon which11
the improvements are placed and shall be collected in the same manner as is12
provided for the ad valorem taxes assessed on the property by the local governmental13
subdivision creating the district. In order to secure repayment of loans, upon entering14
into a loan with a borrower, the local government subdivision creating a district shall15
file a statement of lien with the recorder of mortgages for the parish in which the16
property is located to which the energy efficiency improvements are made in order17
to have legal effect. The lien or privilege shall take effect against third persons upon18
filing the statement of lien with the appropriate recorder of mortgages for the parish19
where the property is located. The lien shall rank according to the time of filing of20
the statement of lien and shall be inferior to all mortgages and privileges that are21
effective against third persons before the statement of lien is filed. That lien shall22 HLS 10RS-1388 REENGROSSED
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have priority over other mortgages and privileges except for privileges for ad1
valorem taxes.2
(2) The district may enter into any necessary agreement with the sheriff or3
other local ad valorem property tax collector for assessing and collecting the4
assessment provided for in this Subsection, including provisions for reimbursing the5
sheriff or other collector for the cost of such assessment and collection. The6
statement of lien shall contain the following:7
(a) Identity of the lien holder, including a contact name, address, and phone8
number.9
(b) Identity of borrower, including borrower's full name, domicile, and10
permanent mailing address, and last four digits of the borrower's social security11
number or taxpayer identification number, whichever is applicable.12
(c) Legal description of the property encumbered with the lien.13
(d) Date that the lien is created, which means the date that the loan is closed.14
(e) Dollar amount of lien.15
(3) Upon failure of the property owner to pay the assessment within thirty16
days of receipt, the local governmental subdivision may file a certified copy of said17
charges with the recorder of mortgages, and the same, when so filed and recorded,18
shall operate as a lien and privilege in favor of the local governmental subdivision19
and district. Such lien and privilege shall have the same ranking as an ad valorem20
tax lien on immovable property as provided in R.S. 9:4821(1), and may be enforced21
and collected enforce and collect the amount due for the current year by ordinary22
civil proceeding or enforced and collected as any ordinary property tax lien assessed23
against the property and collected in the manner fixed for collection of tax and24
subject to the same civil penalties for delinquencies, together with proceedings in25
accordance with Louisiana Code of Civil Procedure Articles 851 et seq. and may26
recover attorneys' fees and costs incurred in notification to the owner and the27
enforcement and with collection of the amounts owed.28 HLS 10RS-1388 REENGROSSED
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(4) The duration of the effect of recordation of a statement of lien, the1
method of reinscription of the statement of lien, and the cancellation of recordation2
of a statement of lien after the effect of recordation has ceased shall be governed by3
the provisions of Chapter 2 of Title XXII-A of Book III of the Louisiana Civil Code.4
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)]
Foil HB No. 973
Abstract: Provides with respect to financing for projects in sustainable energy financing
districts.
Present law authorizes governing authorities of any local governmental subdivisions
otherwise authorized to collect property taxes and to issue and sell bonds to create special
districts known as sustainable energy financing districts. Relative to financing for projects,
authorizes the local governmental subdivision to incur debt in order to provide to the district
sufficient funds to make the loans provided for in present law and authorizes owners of
property in the district to request loans from the district to cover the costs of energy-related
improvements to the property. Provides for loan criteria, conditions, and terms. Proposed
law retains present law.
Present law provides that if agreed by the district, the amount of the loan shall be assessed
against the property and collected in the same manner as ad valorem taxes assessed on the
property by the local governmental subdivision. Authorizes the district to enter into
agreements with the sheriff or other property tax collector for assessing and collecting the
assessment.
Proposed law removes present law and provides that in order to secure repayment of loans,
the local government subdivision shall file a statement of lien with the recorder of mortgages
for the parish in which the property is located to which the energy efficiency improvements
are made in order to have legal effect. Further provides that the lien or privilege shall take
effect against third persons upon the filing of the statement of lien and that the lien shall rank
according the time of filing of such statement and be inferior to all mortgages and privileges
that are effective against third persons before such statement is filed. Provides that the lien
shall have priority over other mortgages and privileges except for privileges for ad valorem
taxes. Adds specific information the statement of lien shall contain.
Present law authorizes, upon failure of the property owner to pay the assessment within 30
days of receipt, the local governmental subdivision to file a certified copy of charges with
the recorder of mortgages, which shall operate as a lien and privilege in favor of the local
governmental subdivision and district. Provides that such lien and privilege shall have the
same ranking as an ad valorem tax lien on immovable property and may be enforced and
collected by ordinary civil proceeding or enforced and collected as any ordinary property tax
lien assessed against the property and collected in the manner fixed for collection of tax and
subject to the same civil penalties for delinquencies, together with attorney fees and costs
incurred in notification to the owner and the enforcement and collection of the amounts
owed.
Proposed law removes the provisions relative to the filing of the certified copy of charges
which shall operate as a lien and privilege and how they may be enforced and collected and HLS 10RS-1388 REENGROSSED
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instead provides that upon such failure to pay, the local governmental subdivision may
collect the amount due for the current year by ordinary civil proceedings in accordance with
La. C.C.P. Art. 851 et seq. (ordinary proceedings). Adds that the duration of the effect of a
statement of lien's recordation, method of reinscription, and cancellation of recordation after
the effect of recordation has ceased shall be governed by the provisions of C.C. Arts. 3354-
3368 (mortgage records).
(Amends R.S. 33:130.812(C))