SLS 10RS-141 ORIGINAL
Page 1 of 15
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2010
SENATE BILL NO. 395
BY SENATOR N. GAUTREAUX
RAILROADS. Creates a railroad district encompassing Vermilion and Iberia parishes.
(8/15/10)
AN ACT1
To enact Subpart G of Part IV of Chapter 1 of Title 33 of the Louisiana Revised Statutes of2
1950, to be comprised of R.S. 33:140.110 through 140.118, relative to railroad3
districts; to provide for the district's boundaries in Vermilion and Iberia parishes and4
for purpose, governance, and funding; to provide relative to the district's governing5
board's powers and duties; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. Subpart G of Part IV of Chapter 1 of Title 33 of the Louisiana Revised8
Statutes of 1950, to be comprised of R.S. 33:140.110 through 140.118 is hereby enacted to9
read as follows: 10
§140.110. Vermilion and Iberia Railroad Development District; creation;11
territorial jurisdiction12
A. The agricultural industry constitutes a significant element in the13
state's economy. In order to expand the state's economic base and to retain farm14
jobs, it is necessary that the state encourage and support the development of15
railroads. The Vermilion and Iberia Railroad Development District, hereinafter16
referred to as the "district," is hereby created and is declared to be a body17 SB NO. 395
SLS 10RS-141 ORIGINAL
Page 2 of 15
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
politic and political subdivision of the state of Louisiana, as defined in Article1
VI, Section 44 of the Constitution of Louisiana. Pursuant to Article VI, Section2
19 and 21 of the Constitution of Louisiana, the district, acting through its board3
of commissioners, the governing authority of said district, is hereby granted all4
of the rights, powers, privileges, and immunities granted all of the rights,5
powers, privileges, and immunities granted to political subdivisions for6
economic development purposes, including but not limited to the power of7
taxation, the power to incur debt and issue revenue and general obligation8
bonds, certificates of indebtedness, bond and certificate anticipation notes, and9
refunding bonds, subject to the limitations hereinafter provided.10
B. The district created pursuant hereto shall be established for the11
primary object and purpose of promoting and encouraging development of the12
rail service running between Vermilion and Iberia parishes, to stimulate the13
economy through renewed commerce, industry, and for the utilization and14
development of natural and human resources of the area by providing job15
opportunities.16
C. The boundaries of the district shall be coterminous with the17
boundaries of Vermilion and Iberia parishes.18
§140.111. Board of commissioners; members, officers, agents and employees19
A.(1) Governance. In order to provide for the orderly development of the20
district and effectuation of the purposes of the district, the district shall be21
administered and governed by a board of five commissioners, each of whom22
shall be a qualified voter of the district and who shall be appointed as follows:23
(a) Two members shall be appointed by the governing authority of the24
parish of Vermilion. At least one of such members shall have a bachelor's25
degree in agricultural science.26
(b) Two members shall be appointed by the governing authority of the27
parish of Iberia. At least one of such members shall have a bachelor's degree28
in agricultural science.29 SB NO. 395
SLS 10RS-141 ORIGINAL
Page 3 of 15
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(c) One member shall be appointed by the Twin Port Commission,1
subject to confirmation by the senators whose districts encompass the parishes2
of Vermilion and Iberia. Such member shall have a bachelor's degree in3
engineering.4
(2)(a) Members of the board shall serve three-year terms after initial5
terms as provided in this Subparagraph. One such member shall serve an initial6
term of one year; two members shall serve an initial term of two years; and two7
members shall serve an initial term of three years, all as determined by lot at8
the first meeting of the board. Members shall serve until their successors have9
been appointed and qualified.10
(b) Any vacancy which occurs prior to the expiration of the term for11
which a member of the board has been appointed shall be filled for the12
remainder of the unexpired term in the same manner as the original13
appointment.14
(c) The commissioners shall elect from their membership a chairman,15
vice chairman, secretary-treasurer, and such other officers as they may deem16
necessary. The board shall hold at least one regular meeting each month for the17
purpose of transacting business of the district.18
(d) Board members shall serve without compensation. However, the19
board may authorize per diem for its members in the performance of their20
official duties. The per diem shall not exceed one hundred dollars for attending21
meetings of the board for a maximum of twelve meetings per year. Per diem22
paid pursuant to this Section shall be paid out of the district funds in the hands23
of the treasurer.24
(e) A majority of the membership of the board shall constitute a quorum25
for the transaction of business.26
(f) The board of commissioners shall prescribe rules to govern its27
meetings, shall hold meetings in the city and parish as may be designated by the28
board within either Vermilion and Iberia parishes, and may contract with and29 SB NO. 395
SLS 10RS-141 ORIGINAL
Page 4 of 15
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
employ attorneys, clerks, engineers, deputy commissioners, superintendents,1
and other agents and employees and shall fix their compensation and terms of2
employment.3
(g) A board member or employee of a district may not be pecuniarily4
interested, directly or indirectly, in any contract or agreement to which the5
district is a party.6
§140.112. Powers of district7
A. The district, acting by and through its board of commissioners, shall8
have and exercise all powers of a political subdivision necessary or convenient9
for the carrying out of its objects and purposes, including, but not limited to,10
rights and powers set out in this Subpart:11
(1) To sue and be sued.12
(2) To adopt, use, and alter at will a corporate seal.13
(3) To acquire by gift, grant, expropriation, purchase, or otherwise all14
property, including rights-of-way; to hold and use any franchise or property,15
real, personal, or mixed, tangible or intangible, or any interest therein,16
necessary or desirable for carrying out the objects and purposes of the district,17
including, but not limited to, the establishment, maintenance, and operation of18
a railroad.19
(4) To enter into contracts for the purchase, acquisition, construction,20
and improvement of works and facilities necessary in connection with the21
purposes of the district.22
(5) In its own name and on its own behalf to incur debt and to issue23
general obligation bonds, revenue bonds, certificates, notes, and other evidences24
of indebtedness and to levy and cause to be collected ad valorem taxes as25
provided in this Subpart and as may be provided by general law.26
(6) To require and issue licenses with respect to its properties and27
facilities.28
(7) To regulate the imposition of fees and rentals charged by the district29 SB NO. 395
SLS 10RS-141 ORIGINAL
Page 5 of 15
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
for its facilities and services rendered by it.1
(8) To borrow money and pledge all or part of its revenues, leases, rents,2
or other advantages as security for such loans.3
(9) To appoint officers, agents, and employees, prescribe their duties, and4
fix their compensation.5
§140.113. Railroad development6
A.(1) The district shall have the power to construct and acquire railroad7
tracks, railway spurs, rail yards, and subordinate and related facilities,8
including the acquisition of sites and other necessary property or appurtenances9
thereto within the district, or outside the district if the project is undertaken10
conjointly with other local units of government, under the authority of the local11
services law, R.S. 33:1321, et seq., or other authorizing authority, and to12
acquire, construct, improve, operate, maintain, and provide improvements and13
services necessary therefor, including but not limited to roads, street lighting,14
bridges, rail facilities, drainage, and other utilities and related properties.15
(2) The district shall also have the authority to sell, lease, or otherwise16
dispose of, by suitable and appropriate contract, to any enterprise locating or17
existing within the district all or any part of a site, building, or other property18
owned by the district. In determining the consideration for any contract to19
lease, sell, or otherwise dispose of lands, buildings, or other property of the20
district, the board of commissioners may take into consideration the value of the21
lands, buildings, or other properties involved as well as the potential value of22
the economic impact of the enterprise being induced to locate or expand within23
the district. Such economic impact shall include increased employment,24
increased use of local labor, wages and salaries to be paid, consumption of local25
materials, products, and resources, and special tax revenues to be generated by26
the enterprise acquiring or leasing lands, buildings, or other property from the27
district. In no event, however, and under no circumstances shall the board28
dispose of any property of the district for less than the fair market value of the29 SB NO. 395
SLS 10RS-141 ORIGINAL
Page 6 of 15
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
property as defined in R.S. 47:2321, without the prior approval of the State1
Bond Commission. The district shall be empowered to enter into leases having2
a term, including all renewal terms, not to exceed fifty years in the aggregate.3
The approval of the State Bond Commission shall be conclusive for purposes of4
compliance with the requirements of this Paragraph.5
(3) The resolution or ordinance adopted by the board of commissioners6
authorizing any lease, sale, or other disposition of lands, buildings, or other7
property of the district or any attachment thereto shall set forth, in a general8
way, the terms of the authorized lease, sale, or other disposition, and such9
resolution or ordinance shall be published as soon as possible in one issue of the10
official journal of the district. For a period of thirty days from the date of11
publication of any such resolution or ordinance, any interested person may12
contest the legality of such resolution or ordinance or the validity of the13
authorized lease, sale, or other disposition of district property, 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 the authorized lease, sale, or16
other disposition of district property for any cause whatsoever, and it shall be17
conclusively presumed thereafter that every legal requirement has been18
complied with and no court shall have authority to inquire into such matters19
after the lapse of said thirty days.20
B. The district shall have the following additional powers, together with21
all powers incidental thereto or necessary for the performance of those22
hereinafter stated:23
(1) To acquire, whether by purchase, expropriation, exchange, gift, lease,24
or otherwise, and to construct and improve, maintain, equip, and furnish one25
or more railway development projects, including all real and personal26
properties which the board of commissioners may deem necessary in connection27
therewith.28
(2) To lease or to contract for the use of any or all of its authorized29 SB NO. 395
SLS 10RS-141 ORIGINAL
Page 7 of 15
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
projects and to charge and collect rent, fees, or charges therefor, and to1
terminate any such lease or contractual arrangement upon the failure of the2
lessee or contracting party to comply with any of the obligations thereof all as3
may be provided for in the lease agreement to which the district may become4
a party.5
(3) To sell, exchange, donate, and convey any or all of its projects upon6
such terms and conditions as the board of commissioners may deem advisable,7
including the power to receive for any such sale the first mortgage note or notes8
of the purchaser of a project representing unpaid installments of the purchase9
price due by the purchaser to the district whenever the board of commissioners10
finds any such actions to be in furtherance of the purposes for which the district11
was organized.12
(4) As security for the payment of the principal of and interest on any13
bonds, notes or other obligations of the district and any agreements made in14
connection therewith, to mortgage and pledge any or all of its projects or any15
part or parts thereof, whether then owned or thereafter acquired, and to pledge16
the revenues and receipts therefrom or from any other source.17
(5)(a) To enter into any cooperative financing associated with railroad18
development between or among the district and the state, any of its local19
governmental subdivisions, political corporations or public benefit20
corporations, the United States or its agencies, or any public or private21
association, corporation, or individual.22
(b) To enter into any cooperative development between or among the23
district and the state, any of its local governmental subdivisions, political24
corporations or public benefit corporations, the United States or its agencies25
under the Railroad Revitalization and Regulatory Act, or any public or private26
association, corporation, or individual. Said methods of cooperative27
development shall include, but not be limited to, any number of joint28
development agreements and cooperative ownership, limited partnerships, and29 SB NO. 395
SLS 10RS-141 ORIGINAL
Page 8 of 15
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
investment syndicates not prohibited by the Constitution of Louisiana.1
Regardless of the method of financing, the district shall attempt to obtain the2
most favorable arrangement available in order to protect and ensure economic3
development and the railway system.4
§140.114. Fees and ad valorem tax; borrowing money5
A. The board of commissioners may, when necessary, levy annually an6
ad valorem tax not to exceed five mills on the dollar of assessed valuation of all7
property, provided that the amount, term, and purpose of said tax, as set out in8
a proposition submitted to a vote in accordance with the Louisiana Election9
Code, shall be approved by a majority of the qualified electors voting in a10
special election held for that purpose. The millage shall be resubmitted for voter11
reapproval every tenth year.12
B. All funds derived under this Section may be used only for expenses or13
specified purposes of the district. A certain percentage of all funds derived14
under this Section, to be determined by the board, shall be set aside and used15
exclusively for maintenance. The board of commissioners shall establish and16
maintain, in addition to all necessary and normal accounts, the following special17
accounts:18
(1) A railroad development operational fund, for the attraction of19
railroad development to accomplish the following:20
(a) The operational fund shall be used for operating expenses necessary21
in promotion of industrial and commercial development of the railway system22
between the parishes of Vermilion and Iberia in hiring sufficient staff to23
accomplish the purposes set out in this Subpart, and other related expenses.24
(b) The operational fund may also be utilized in contracting for services25
as may be required by the district including, but not limited to: planning26
assistance, surveys, land use studies, technical services, and other services27
necessary to effectuate a unified railroad development plan.28
(2) An account for the maintenance and operation of a railway29 SB NO. 395
SLS 10RS-141 ORIGINAL
Page 9 of 15
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
promotional and advancement center to provide necessary information to1
companies and individuals engaged in providing services and goods to help2
identify potential customers and aid and assist the customers and user3
companies in developing and transporting their products or services.4
§140.115. Obligations of the district5
A. The district shall have authority to incur debt for any one or more of6
its lawful purposes set forth in this Subpart, to issue in its name negotiable7
bonds, notes, certificates of indebtedness, or other evidences of debt and to8
provide for the security and payment thereof.9
B.(1) The district may in its own name and behalf incur debt and issue10
general obligation ad valorem property tax secured bonds under the authority11
of and subject to the provisions of Article 6, Section 33 of the Constitution of12
Louisiana, Subpart A of Part III of Chapter 4 of Subtitle II of Title 39 of the13
Louisiana Revised Statutes of 1950, when approved by a majority of the14
qualified voters who vote in a special election called and conducted under the15
authority of the Louisiana Election Code, including Chapter 6-A of Title 18 of16
the Louisiana Revised Statutes of 1950, as amended. General obligation bonds17
of the district may be issued for any of the purposes for which the district is18
created or is authorized to act under any provisions of this Subpart, all of which19
purposes are hereby found and declared to be public purposes and functions of20
the state of Louisiana, which are delegated to the district.21
(2) The district may in its own name and behalf issue revenue bonds for22
the purposes for which the district is created or is authorized to act under any23
of the provisions of this Subpart, including railroad rehabilitation and24
improvement revenue bonds. Said bonds shall be issued in the manner as25
provided for in R.S. 39:991 through 1001 and R.S. 39:1011 through 1024.26
(3) The district may in its own name and behalf borrow from time to27
time in the form of certificates of indebtedness. The certificates shall be secured28
by the dedication and pledge of moneys of the district derived from any lawful29 SB NO. 395
SLS 10RS-141 ORIGINAL
Page 10 of 15
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
sources, including fees, lease rentals, service charges, local service agreement1
payments from one or more other contracting parties the avails of ad valorem2
property taxation, or any combination of such sources of income, provided that3
the term of such certificates shall not exceed ten years and the annual debt4
service on the amount borrowed shall not exceed the anticipated revenues to be5
dedicated and pledged to the payment of the certificates of indebtedness, as6
shall be estimated by the board of commissioners of the district at the time of7
the adoption of the resolution authorizing the issuance of such certificates. The8
estimate of the board of commissioners referred to in the authorizing resolution9
shall be conclusive for all purposes of this Section.10
(4) The district may borrow the amount of the anticipated ad valorem11
tax, not to exceed five mills, authorized by R.S. 33:140.75 for a period of not to12
exceed ten years and may issue certificates of indebtedness therefor and may13
dedicate the avails of the tax funded for the payment thereof for the period of14
time said certificates are outstanding.15
(5) The board of commissioners, as the governing authority of the16
district, is authorized to adopt all necessary resolutions or ordinances which17
may be necessary for ordering, holding, canvassing, and promulgating the18
returns of any election required for the issuance of general obligation bonds, or19
limited tax secured obligations or for the voting of a property tax millage, which20
resolutions or ordinances may include covenants for the security and payment21
of any bonds or other evidence of debt so issued.22
(6) For a period of thirty days from the date of publication of any23
resolution or ordinance authorizing the issuance of any bonds, certificates of24
indebtedness, notes, or other evidence of debt of the district, any interested25
person may contest the legality of such resolution or ordinance and the validity26
of such bonds, certificates of indebtedness, notes, or other evidence of debt27
issued or proposed to be issued thereunder and the security of their payment,28
after which time no one shall have any cause of action to contest the legality of29 SB NO. 395
SLS 10RS-141 ORIGINAL
Page 11 of 15
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
said resolution or ordinance or to draw in question the legality of said bonds,1
certificates of indebtedness, notes, or other evidence of debt, the security2
therefor, or the debts represented thereby for any cause whatever, and it shall3
be conclusively presumed that every legal requirement has been complied with,4
and no court shall have authority to inquire into such matters after the lapse of5
thirty days.6
(7) The issuance and sale of such bonds, certificates of indebtedness,7
notes or other evidence of debt by the district shall be subject to approval by the8
State Bond Commission.9
(8) Such bonds, certificates of indebtedness, notes, or other evidence of10
debt shall have all the qualities of negotiable instruments under the commercial11
laws of the state of Louisiana. 12
§140.116. Competitive Bids13
A contract in the amount of more than fifteen thousand dollars for the14
construction of improvements or the purchase of material, machinery,15
equipment, supplies, or any other property except real property may only be let16
on competitive bids after notice published, at least fifteen days before the date17
set for receiving bids, in a newspaper or general circulation in the district. A18
board may adopt rules governing the taking of bids and the awarding of19
contracts. This section does not apply to the acquisition of existing rail20
transportation systems.21
§140.117. Exempt from taxation22
The property, revenues, and income of the district and the interest on23
bonds and notes issued by a district shall be exempt from taxation levied by the24
state or a political subdivision of the state.25
§140.118. Financial Report26
The district shall prepare a financial report annually which shall be27
presented to the legislative auditor in such a manner and form as the auditor28
may prescribe. The auditor shall thereafter publish his findings in the district's29 SB NO. 395
SLS 10RS-141 ORIGINAL
Page 12 of 15
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
official journal. All expenses associated with this Section shall be borne by the1
district.2
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by James Benton.
DIGEST
Proposed law creates and provides for the Vermilion and Iberia Railroad Development
District. Provides that the primary object and purpose of the district is for the promoting and
encouraging development of the rail service running between Vermilion and Iberia parishes
to stimulate the economy through renewed commerce, industry, and for the utilization and
development of natural and human resources of the area by providing job opportunities.
Proposed law provides that the boundaries of the district shall be coterminous with the
boundaries of Vermilion and Iberia parishes.
Proposed law provides that the district shall be administered and governed by a board of five
commissioners, each of whom shall be a qualified voter of the district and who shall be
appointed as follows:
(a) Two members shall be appointed by the governing authority of the parish of
Vermilion. At least one of these members shall have a bachelor's degree in
agricultural science.
(b) Two members shall be appointed by the governing authority of the parish of Iberia.
At least one of these members shall have a bachelor's degree in agricultural science.
(c)One member shall be appointed by the Twin Port Commission, subject to
confirmation by the senators whose districts encompass the parishes of Vermilion
and Iberia. This member must also have a bachelor's degree in engineering.
Proposed law provides that board members shall serve without compensation. However, the
board may authorize per diem for its members in the performance of their official duties.
The per diem shall not exceed $100.00 for attending meetings of the board for a maximum
of 12 meetings per year. Per diem paid shall be paid out of the district funds in the hands
of the treasurer.
Proposed law provides that the board of commissioners shall prescribe rules to govern its
meetings, shall hold meetings in the city and parish as may be designated by the board
within either Vermilion and Iberia parishes, and may contract with and employ attorneys,
clerks, engineers, deputy commissioners, superintendents, and other agents and employees
and shall fix their compensation and terms of employment.
Proposed law provides that a board member or employee of a district may not be pecuniarily
interested in any contract or agreement to which the district is a party.
Proposed law provides the district shall have and exercise all powers of a political
subdivision necessary or convenient for the carrying out of its objects and purposes, which
include, but are not limited to, the following:
(1) To sue and be sued.
(2) To adopt, use, and alter at will a corporate seal. SB NO. 395
SLS 10RS-141 ORIGINAL
Page 13 of 15
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(3) To acquire by gift, grant, expropriation, purchase, or otherwise all property,
including rights-of-way; to hold and use any franchise or property, real, personal, or
mixed, tangible or intangible, or any interest therein, necessary or desirable for
carrying out the objects and purposes of the district, including, but not limited to, the
establishment, maintenance, and operation of a railroad.
(4) To enter into contracts for the purchase, acquisition, construction, and improvement
of works and facilities necessary in connection with the purposes of the district.
(5) In its own name and on its own behalf to incur debt and to issue general obligation
bonds, revenue bonds, certificates, notes, and other evidences of indebtedness and
to levy and cause to be collected ad valorem taxes.
(6) To require and issue licenses with respect to its properties and facilities.
(7) To regulate the imposition of fees and rentals charged by the district for its facilities
and services rendered by it.
(8) To borrow money and pledge all or part of its revenues, leases, rents, or other
advantages as security for such loans.
(9) To appoint officers, agents, and employees, prescribe their duties, and fix their
compensation.
Proposed law provides that the district shall have the power to construct and acquire railroad
tracks, railway spurs, rail yards, and subordinate and related facilities, including the
acquisition of sites and other necessary property or appurtenances thereto within the district,
or outside the district if the project is undertaken conjointly with other local units of
government, under the authority of the local services law, or other authorizing authority, and
to acquire, construct, improve, operate, maintain, and provide improvements and services
necessary, including but not limited to roads, street lighting, bridges, rail facilities, drainage,
and other utilities and related properties.
Proposed law provides that the district shall also have the authority to sell, lease, or
otherwise dispose of, by suitable and appropriate contract, to any enterprise locating or
existing within the district all or any part of a site, building, or other property owned by the
district.
Proposed law provides that the resolution or ordinance adopted by the board of
commissioners authorizing any lease, sale, or other disposition of lands, buildings, or other
property of the district or any attachment thereto shall set forth, in a general way, the terms
of the authorized lease, sale, or other disposition, and such resolution or ordinance shall be
published as soon as possible in one issue of the official journal of the district. For a period
of 30 days from the date of publication of any such resolution or ordinance, any interested
person may contest the legality of such resolution or ordinance or the validity of the
authorized lease, sale, or other disposition of district property, after which time no one shall
have any cause of action to contest the legality of said resolution or ordinance or to draw in
question the legality of the authorized lease, sale, or other disposition of district property for
any cause whatsoever, and it shall be conclusively presumed thereafter that every legal
requirement has been complied with and no court shall have authority to inquire into such
matters after the lapse of 30 days.
Proposed law provides that the district shall have the following additional powers, together
with all powers incidental thereto or necessary for the performance of those hereinafter
stated:
(1) To acquire, whether by purchase, expropriation, exchange, gift, lease, or otherwise,
and to construct and improve, maintain, equip, and furnish one or more railway SB NO. 395
SLS 10RS-141 ORIGINAL
Page 14 of 15
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
development projects, including all real and personal properties which the board of
commissioners may deem necessary in connection therewith.
(2) To lease or to contract for the use of any or all of its authorized projects and to
charge and collect rent, fees, or charges therefor, and to terminate any such lease or
contractual arrangement upon the failure of the lessee or contracting party to comply
with any of the obligations thereof all as may be provided for in the lease agreement
to which the district may become a party.
(3) To sell, exchange, donate, and convey any or all of its projects upon such terms and
conditions as the board of commissioners may deem advisable, including the power
to receive for any such sale the first mortgage note or notes of the purchaser of a
project representing unpaid installments of the purchase price due by the purchaser
to the district whenever the board of commissioners finds any such actions to be in
furtherance of the purposes for which the district was organized.
(4) As security for the payment of the principal of and interest on any bonds, notes or
other obligations of the district and any agreements made in connection therewith,
to mortgage and pledge any or all of its projects or any part or parts thereof, whether
then owned or thereafter acquired, and to pledge the revenues and receipts therefrom
or from any other source.
(5) To enter into any cooperative financing associated with railroad development
between or among the district and the state, any of its local governmental
subdivisions, political corporations or public benefit corporations, the United States
or its agencies, or any public or private association, corporation, or individual.
(6) To enter into any cooperative development between or among the district and the
state, any of its local governmental subdivisions, political corporations or public
benefit corporations, the United States or its agencies under the Railroad
Revitalization and Regulatory Act, or any public or private association, corporation,
or individual.
Proposed law provides that the board of commissioners may, when necessary, levy annually
an ad valorem tax not to exceed five mills on the dollar of assessed valuation of all property,
provided that the amount, term, and purpose of said tax, as set out in a proposition submitted
to a vote in accordance with the Louisiana Election Code, shall be approved by a majority
of the qualified electors voting in a special election held for that purpose. The millage shall
be resubmitted for voter reapproval every 10th year.
Proposed law provides that funds derived under this proposed law may be used only for
expenses or specified purposes of the district. A certain percentage of all funds derived , to
be determined by the board, shall be set aside and used exclusively for maintenance. The
board of commissioners shall establish and maintain, in addition to all necessary and normal
accounts, the following special accounts:
(1) A railroad development operational fund.
(2) An account for the maintenance and operation of a railway promotional and
advancement center.
Proposed law provides that the district shall have authority to incur debt for any one or more
of its lawful purposes, to issue in its name negotiable bonds, notes, certificates of
indebtedness, or other evidences of debt and to provide for the security and payment thereof.
Proposed law provides that the district may:
(1)The district may in its own name and behalf incur debt and issue general obligation
ad valorem property tax secured bonds. SB NO. 395
SLS 10RS-141 ORIGINAL
Page 15 of 15
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(2)The district may in its own name and behalf issue revenue bonds for the purposes for
which the district is created or is authorized to act.
(3) The district may in its own name and behalf borrow from time to time in the form
of certificates of indebtedness.
(4) The district may borrow the amount of the anticipated ad valorem tax, not to exceed
five mills, for a period of not to exceed ten years and may issue certificates of
indebtedness therefor and may dedicate the avails of the tax funded for the payment
thereof for the period of time said certificates are outstanding.
(5) The board of commissioners, is authorized to adopt all necessary resolutions or
ordinances which may be necessary for ordering, holding, canvassing, and
promulgating the returns of any election required for the issuance of general
obligation bonds, or limited tax secured obligations or for the voting of a property
tax millage, which resolutions or ordinances may include covenants for the security
and payment of any bonds or other evidence of debt so issued.
(6) For a period of 30 days from the date of publication of any resolution or ordinance
authorizing the issuance of any bonds, certificates of indebtedness, notes, or other
evidence of debt of the district, any interested person may contest the legality of such
resolution or ordinance and the validity of such bonds, certificates of indebtedness,
notes, or other evidence of debt issued or proposed to be issued thereunder and the
security of their payment, after which time no one shall have any cause of action to
contest the legality of said resolution or ordinance or to draw in question the legality
of said bonds, certificates of indebtedness, notes, or other evidence of debt, the
security therefor, or the debts represented thereby for any cause whatever, and it
shall be conclusively presumed that every legal requirement has been complied with,
and no court shall have authority to inquire into such matters after the lapse of 30
days.
(7) The issuance and sale of such bonds, certificates of indebtedness, notes or other
evidence of debt by the district shall be subject to approval by the State Bond
Commission.
(8) Such bonds, certificates of indebtedness, notes, or other evidence of debt shall have
all the qualities of negotiable instruments under the commercial laws of the state of
Louisiana.
Proposed law provides that a contract in the amount of more than $15,000 for the
construction of improvements or the purchase of material, machinery, equipment, supplies,
or any other property except real property may only be let on competitive bids after noticed
published, at least 15 days before the date set for receiving bids, in a newspaper or general
circulation in the district. A board may adopt rules governing the taking of bids and the
awarding of contracts. Proposed law does not apply to the acquisition of existing rail
transportation systems.
Proposed law provides that the property, revenues, and income of the district and the
interest on bonds and notes issued by a district shall be exempt from taxation levied by the
state or a political subdivision of the state.
Proposed law provides that the district shall prepare a financial report annually which shall
be presented to the legislative auditor in such a manner and form as the auditor may
prescribe. The auditor shall thereafter publish his findings in the district's official journal.
Effective August 15, 2010.
(Adds R.S. 33:140.110 through 140.118)