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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
Notice of intention to introduce this Act has been published.7
Be it enacted by the Legislature of Louisiana:8
Section 1. Subpart G of Part IV of Chapter 1 of Title 33 of the Louisiana Revised9
Statutes of 1950, to be comprised of R.S. 33:140.110 through 140.118 is hereby enacted to10
read as follows: 11
§140.110. Vermilion and Iberia Railroad Development District; creation;12
territorial jurisdiction13
A. The agricultural industry constitutes a significant element in the14
state's economy. In order to expand the state's economic base and to retain farm15
jobs, it is necessary that the state encourage and support the development of16
railroads. The Vermilion and Iberia Railroad Development District, hereinafter17 SB NO. 395
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referred to as the "district", is hereby created and is declared to be a body1
politic and political subdivision of the state of Louisiana, as defined in Article2
VI, Section 44 of the Constitution of Louisiana. Pursuant to Article VI, Section3
19 and 21 of the Constitution of Louisiana, the district, acting through its board4
of commissioners, the governing authority of said district, is hereby granted all5
of the rights, powers, privileges, and immunities granted to political6
subdivisions for economic development purposes, including but not limited to7
the power of taxation, the power to incur debt and issue revenue and general8
obligation bonds, certificates of indebtedness, bond and certificate anticipation9
notes, and refunding bonds, subject to the limitations hereinafter provided.10
B. The district created pursuant to this Section shall be established for11
the primary object and purpose of promoting and encouraging development of12
the 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
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(c) One member shall be appointed by the Twin Parish Port Commission1
and the University of Louisiana at Lafayette, subject to confirmation by the2
senators whose districts encompass the parishes of Vermilion and Iberia. Such3
member shall have a bachelor's degree in engineering and shall have a4
minimum of five years experience at the management and operational level of5
a railroad company.6
(2)(a) Members of the board shall serve three-year terms after initial7
terms as provided in this Subparagraph. One such member shall serve an initial8
term of one year; two members shall serve an initial term of two years; and two9
members shall serve an initial term of three years, all as determined by lot at10
the first meeting of the board. Members shall serve until their successors have11
been appointed and qualified.12
(b) Any vacancy which occurs prior to the expiration of the term for13
which a member of the board has been appointed shall be filled for the14
remainder of the unexpired term in the same manner as the original15
appointment.16
(c) The commissioners shall elect from their membership a chairman,17
vice chairman, secretary-treasurer, and such other officers as they may deem18
necessary. The board shall hold at least one regular meeting each month for the19
purpose of transacting business of the district.20
(d) Board members shall serve without compensation. However, the21
board may authorize per diem for its members in the performance of their22
official duties. The per diem shall not exceed one hundred dollars for attending23
meetings of the board for a maximum of twelve meetings per year. Per diem24
paid pursuant to this Subparagraph shall be paid out of district funds in the25
hands of the treasurer.26
(e) A majority of the membership of the board shall constitute a quorum27
for the transaction of business.28
(f) The board of commissioners shall prescribe rules to govern its29 SB NO. 395
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meetings, shall hold meetings in the city and parish as may be designated by the1
board within either Vermilion or Iberia parishes, may contract with and employ2
attorneys, clerks, engineers, deputy commissioners, superintendents, and other3
agents and employees, and shall fix their compensation and terms of4
employment.5
(g) A board member or employee of a district may not have a pecuniary6
interest, directly or indirectly, in any contract or agreement to which the district7
is a party.8
§140.112. Powers of district9
A. The district, acting by and through its board of commissioners, shall10
have and exercise all powers of a political subdivision necessary or convenient11
for the carrying out of its objects and purposes, including but not limited to12
rights and powers set out in this Subsection:13
(1) To sue and be sued.14
(2) To adopt, use, and alter at will a corporate seal.15
(3) To acquire by gift, grant, expropriation, purchase, or otherwise all16
property, including rights-of-way; to hold and use any franchise or property,17
real, personal, or mixed, tangible or intangible, or any interest therein,18
necessary or desirable for carrying out the objects and purposes of the district,19
including but not limited to the establishment, maintenance, and operation of20
rail services; and to engage in any action, such as the purchase of insurance,21
necessary or desirable for the maintenance or improvement of the district's22
property.23
(4) To enter into contracts for the purchase, acquisition, construction,24
and improvement of works and facilities necessary in connection with the25
purposes of the district.26
(5) In its own name and on its own behalf to incur debt and to issue27
general obligation bonds, revenue bonds, certificates, notes, and other evidences28
of indebtedness and to levy and cause to be collected ad valorem taxes as29 SB NO. 395
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provided in this Subpart and as may be provided by general law.1
(6) To require and issue licenses with respect to its properties and2
facilities.3
(7) To regulate the imposition of fees and rentals charged by the district4
for its facilities and services rendered by it.5
(8) To borrow money and pledge all or part of its revenues, leases, rents,6
or other advantages as security for such loans.7
(9) To appoint officers, agents, and employees, prescribe their duties, and8
fix their compensation.9
§140.113. Railroad development10
A.(1) The district shall have the power to construct and acquire railroad11
tracks, railway spurs, rail yards, and subordinate and related facilities,12
including the acquisition of sites and other necessary property or appurtenances13
thereto within the district, or outside the district if the project is undertaken14
conjointly with other local units of government, under the authority of The15
Local Services Law, R.S. 33:1321, et seq., or other authorizing authority, and16
to acquire, construct, improve, operate, maintain, and provide improvements17
and services necessary therefor, including but not limited to roads, street18
lighting, bridges, rail facilities, drainage, and other utilities and related19
properties.20
(2) The district shall also have the authority to sell, lease, or otherwise21
dispose of, by suitable and appropriate contract, to any enterprise locating or22
existing within the district all or any part of a site, building, or other property23
owned by the district. In determining the consideration for any contract to24
lease, sell, or otherwise dispose of lands, buildings, or other property of the25
district, the board of commissioners may take into consideration the value of the26
lands, buildings, or other properties involved as well as the potential value of27
the economic impact of the enterprise being induced to locate or expand within28
the district. Such economic impact shall include increased employment,29 SB NO. 395
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increased use of local labor, wages and salaries to be paid, consumption of local1
materials, products, and resources, and special tax revenues to be generated by2
the enterprise acquiring or leasing lands, buildings, or other property from the3
district. In no event, however, and under no circumstances shall the board4
dispose of any property of the district for less than the fair market value of the5
property as defined in R.S. 47:2321, without the prior approval of the State6
Bond Commission. The district shall be empowered to enter into leases having7
a term, including all renewal terms, not to exceed fifty years in the aggregate.8
The approval of the State Bond Commission shall be conclusive for purposes of9
compliance with the requirements of this Paragraph.10
(3) The resolution or ordinance adopted by the board of commissioners11
authorizing any lease, sale, or other disposition of lands, buildings, or other12
property of the district or any attachment thereto shall set forth, in a general13
way, the terms of the authorized lease, sale, or other disposition, and such14
resolution or ordinance shall be published as soon as possible in one issue of the15
official journal of the district. For a period of thirty days from the date of16
publication of any such resolution or ordinance, any interested person may17
contest the legality of such resolution or ordinance or the validity of the18
authorized lease, sale, or other disposition of district property, after which time19
no one shall have any cause of action to contest the legality of such resolution20
or ordinance or to draw in question the legality of the authorized lease, sale, or21
other disposition of district property for any cause whatsoever, and it shall be22
conclusively presumed thereafter that every legal requirement has been23
complied with and no court shall have authority to inquire into such matters24
after the lapse of the thirty days.25
B. The district shall have the following additional powers, together with26
all powers incidental thereto or necessary for the performance of those27
hereinafter stated:28
(1) To acquire, whether by purchase, expropriation, exchange, gift, lease,29 SB NO. 395
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or otherwise, and to construct and improve, maintain, equip, and furnish one1
or more railway development projects, including all real and personal2
properties which the board of commissioners may deem necessary in connection3
therewith.4
(2) To lease or to contract for the use of any or all of its authorized5
projects and to charge and collect rent, fees, or charges therefor, and to6
terminate any such lease or contractual arrangement upon the failure of the7
lessee or contracting party to comply with any of the obligations thereof all as8
may be provided for in the lease agreement to which the district may become9
a party.10
(3) To sell, exchange, and convey any or all of its projects upon such11
terms and conditions as the board of commissioners may deem advisable,12
including the power to receive for any such sale the first mortgage note or notes13
of the purchaser of a project representing unpaid installments of the purchase14
price due by the purchaser to the district whenever the board of commissioners15
finds any such actions to be in furtherance of the purposes for which the district16
was organized.17
(4) As security for the payment of the principal of and interest on any18
bonds, notes or other obligations of the district and any agreements made in19
connection therewith, to mortgage and pledge any or all of its projects or any20
part or parts thereof, whether then owned or thereafter acquired, and to pledge21
the revenues and receipts therefrom or from any other source.22
(5)(a) To enter into any cooperative financing associated with railroad23
development between or among the district and the state, any of its local24
governmental subdivisions, political corporations or public benefit25
corporations, the United States or its agencies, or any public or private26
association, corporation, or individual.27
(b) To enter into any cooperative development between or among the28
district and the state, any of its local governmental subdivisions, political29 SB NO. 395
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corporations or public benefit corporations, the United States or its agencies1
under the Railroad Revitalization and Regulatory Reform Act, or any public or2
private association, corporation, or individual. Said methods of cooperative3
development shall include but not be limited to any number of joint4
development agreements and cooperative ownerships, limited partnerships, and5
investment syndicates not prohibited by the Constitution of Louisiana.6
Regardless of the method of financing, the district shall attempt to obtain the7
most favorable arrangement available in order to protect and ensure economic8
development and the railway system.9
§140.114. Fees and ad valorem tax; borrowing money10
A. The board of commissioners may, when necessary, levy annually an11
ad valorem tax not to exceed five mills on the dollar of assessed valuation of all12
property, provided that the amount, term, and purpose of said tax, as set out in13
a proposition submitted to a vote in accordance with the Louisiana Election14
Code, shall be approved by a majority of the qualified electors voting in a15
special election held for that purpose. The millage shall be resubmitted for voter16
reapproval every tenth year.17
B. All funds derived under this Section may be used only for expenses or18
specified purposes of the district. A certain percentage of all funds derived19
under this Section, to be determined by the board, shall be set aside and used20
exclusively for maintenance. The board of commissioners shall establish and21
maintain, in addition to all necessary and normal accounts, the following special22
accounts:23
(1) A railroad development operational fund, for the attraction of24
railroad development to accomplish the following:25
(a) The operational fund shall be used for operating expenses necessary26
in promotion of industrial and commercial development of the railway system27
between the parishes of Vermilion and Iberia, in hiring sufficient staff to28
accomplish the purposes set out in this Subpart, and other related expenses.29 SB NO. 395
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(b) The operational fund may also be utilized in contracting for services1
as may be required by the district including but not limited to planning2
assistance, surveys, land use studies, technical services, and other services3
necessary to effectuate a unified railroad development plan.4
(2) An account for the maintenance and operation of a railway5
promotional and advancement center to provide necessary information to6
companies and individuals engaged in providing services and goods to help7
identify potential customers and aid and assist the customers and user8
companies in developing and transporting their products or services.9
§140.115. Obligations of the district10
A. The district shall have authority to incur debt for any one or more of11
its lawful purposes set forth in this Subpart, to issue in its name negotiable12
bonds, notes, certificates of indebtedness, or other evidences of debt and to13
provide for the security and payment thereof.14
B.(1) The district may in its own name and behalf incur debt and issue15
general obligation ad valorem property tax secured bonds under the authority16
of and subject to the provisions of Article VI, Section 33 of the Constitution of17
Louisiana, Subpart A of Part III of Chapter 4 of Subtitle II of Title 39 of the18
Louisiana Revised Statutes of 1950, when approved by a majority of the19
qualified voters who vote in a special election called and conducted under the20
authority of the Louisiana Election Code, including Chapter 6-A of Title 18 of21
the Louisiana Revised Statutes of 1950, as amended. General obligation bonds22
of the district may be issued for any of the purposes for which the district is23
created or is authorized to act under any provisions of this Subpart, all of which24
purposes are hereby found and declared to be public purposes and functions of25
the state of Louisiana, which are delegated to the district.26
(2) The district may in its own name and behalf issue revenue bonds for27
the purposes for which the district is created or is authorized to act under any28
of the provisions of this Subpart, including railroad rehabilitation and29 SB NO. 395
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improvement revenue bonds. Said bonds shall be issued in the manner as1
provided for in R.S. 39:991 through 1001 and R.S. 39:1011 through 1024.2
(3) The district may in its own name and behalf borrow from time to3
time in the form of certificates of indebtedness. The certificates shall be secured4
by the dedication and pledge of money of the district derived from any lawful5
sources, including fees, lease rentals, service charges, local service agreement6
payments from one or more other contracting parties, the avails of ad valorem7
property taxation, or any combination of such sources of income, provided that8
the term of such certificates shall not exceed ten years and the annual debt9
service on the amount borrowed shall not exceed the anticipated revenues to be10
dedicated and pledged to the payment of the certificates of indebtedness, as11
shall be estimated by the board of commissioners of the district at the time of12
the adoption of the resolution authorizing the issuance of such certificates. The13
estimate of the board of commissioners referred to in the authorizing resolution14
shall be conclusive for all purposes of this Section.15
(4) The district may borrow the amount of the anticipated ad valorem16
tax, not to exceed five mills, authorized by R.S. 33:140.75 for a period of not to17
exceed ten years and may issue certificates of indebtedness therefor and may18
dedicate the avails of the tax funded for the payment thereof for the period of19
time said certificates are outstanding.20
(5) The board of commissioners, as the governing authority of the21
district, is authorized to adopt all necessary resolutions or ordinances which22
may be necessary for ordering, holding, canvassing, and promulgating the23
returns of any election required for the issuance of general obligation bonds, or24
limited tax secured obligations or for the voting of a property tax millage, which25
resolutions or ordinances may include covenants for the security and payment26
of any bonds or other evidence of debt so issued.27
(6) For a period of thirty days from the date of publication of any28
resolution or ordinance authorizing the issuance of any bonds, certificates of29 SB NO. 395
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indebtedness, notes, or other evidence of debt of the district, any interested1
person may contest the legality of such resolution or ordinance and the validity2
of such bonds, certificates of indebtedness, notes, or other evidence of debt3
issued or proposed to be issued thereunder and the security of their payment,4
after which time no one shall have any cause of action to contest the legality of5
said resolution or ordinance or to draw in question the legality of said bonds,6
certificates of indebtedness, notes, or other evidence of debt, the security7
therefor, or the debts represented thereby for any cause whatever, and it shall8
be conclusively presumed that every legal requirement has been complied with,9
and no court shall have authority to inquire into such matters after the lapse of10
thirty days.11
(7) The issuance and sale of such bonds, certificates of indebtedness,12
notes or other evidence of debt by the district shall be subject to approval by the13
State Bond Commission.14
(8) Such bonds, certificates of indebtedness, notes, or other evidence of15
debt shall have all the qualities of negotiable instruments under the commercial16
laws of the state of Louisiana. 17
§140.116. Competitive Bids18
The district shall be subject to the provisions of Chapter 10 of Title 3819
of the Louisiana Revised Statutes of 1950.20
§140.117. Exempt from taxation21
The property, revenues, and income of the district and the interest on22
bonds and notes issued by a district shall be exempt from taxation levied by the23
state or a political subdivision of the state.24
§140.118. Financial Report25
The district shall prepare a financial report annually which shall be26
presented to the legislative auditor in such a manner and form as the auditor27
may prescribe. The auditor shall thereafter publish his findings in the district's28
official journal. All expenses associated with this Section shall be borne by the29 SB NO. 395
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district.1
The original instrument was prepared by Riley Boudreaux. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Nancy Vicknair.
DIGEST
N. Gautreaux (SB 395)
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 Parish Port Commission and ULL,
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 and must have a minimum of 5 years experience at the management and
operational level of a railroad company.
Proposed law provides that board members shall serve 3 year terms after their initial terms.
Provides that one member shall serve a term of 1 year, two members shall serve a term of
2 years, and two members shall serve an initial term of 3 years, all as determined by lot at
the first meeting of the board. Further provides that members shall serve until their
successors have been appointed and qualified.
Proposed law provides that any vacancy occurring prior to the expiration of the term for
which a board member has been appointed shall be filled for the remainder of the unexpired
term in the same manner as the original appointment.
Proposed law requires election of a chairman, vice chairman, secretary-treasurer, and other
officers as deemed necessary. Further requires the board to hold at least one regular meeting
each month.
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 SB NO. 395
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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 the district may not have a
pecuniary interest 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.
(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 rail service and to engage in any
action, such as the purchase of insurance, necessary or desirable for the maintenance
or improvement of the district's property.
(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 employee s, 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 SB NO. 395
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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
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 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 Reform 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 approval every 10th year.
Proposed law provides that funds derived under this proposed law may be used only for SB NO. 395
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words in boldface type and underscored are additions.
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.
(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 makes the district subject to the provisions of Chapter 10 of Title 38 SB NO. 395
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concerning letting of state contracts.
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)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Transportation,
Highways, and Public Works to the original bill.
1. Deletes a provision requiring the district to let contracts for construction and
purchases (except purchases of real property by competitive bid after notice
published 15 days before the date set for receiving bids, authorizing the
district to otherwise adopt rules governing the taking of bids and the
awarding of contracts, but excluding from the provision the acquisition of
existing rail transportation systems. Replaces that provision with one making
the district subject to the provisions of Chapter 10 of Title 38 concerning
state contracts.
2. Deletes a specific authorization for the district to "donate" all or any of its
projects.
3. Authorizes ULL (in conjunction with the Twin Parish Port Commission) to
appoint a member of the board of commissioners of the district, subject to
confirmation by the Senators whose districts encompass Vermilion and Iberia
parishes, and requires such member to have a minimum of 5 years experience
at the management and operational level of a railroad company.
4. Specifically authorizes the district to engage in any action, such as the
purchase of insurance, necessary or desirable for the maintenance or
improvement of the district's property.
Senate Floor Amendments to engrossed bill.
1. Makes technical changes.