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Regular Session, 2010 ENROLLED
SENATE BILL NO. 395
BY SENATOR N. GAUTREAUX
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
referred to as the "district", is hereby created and is declared to be a body18
politic and political subdivision of the state of Louisiana, as defined in Article19
VI, Section 44 of the Constitution of Louisiana. Pursuant to Article VI, Sections20
19 and 21 of the Constitution of Louisiana, the district, acting through its board21
of commissioners, the governing authority of said district, is hereby granted all22
of the rights, powers, privileges, and immunities granted to political23
subdivisions for economic development purposes, including but not limited to24
the power of taxation, the power to incur debt and issue revenue and general25
obligation bonds, certificates of indebtedness, bond and certificate anticipation26
notes, and refunding bonds, subject to the limitations hereinafter provided.27 SB NO. 395 ENROLLED
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B. The district created pursuant to this Section shall be established for1
the primary object and purpose of promoting and encouraging development of2
the rail service running between Vermilion and Iberia parishes, to stimulate the3
economy through renewed commerce, industry, and for the utilization and4
development of natural and human resources of the area by providing job5
opportunities.6
C. The boundaries of the district shall be coterminous with the7
boundaries of Vermilion and Iberia parishes.8
§140.111. Board of commissioners; members, officers, agents and employees9
A.(1) Governance. In order to provide for the orderly development of the10
district and effectuation of the purposes of the district, the district shall be11
administered and governed by a board of five commissioners, each of whom12
shall be a qualified voter of the district and who shall be appointed as follows:13
(a) Two members shall be appointed by the governing authority of the14
parish of Vermilion. At least one of such members shall have a bachelor's15
degree in agricultural science.16
(b) Two members shall be appointed by the governing authority of the17
parish of Iberia. At least one of such members shall have a bachelor's degree18
in agricultural science.19
(c) One member shall be appointed by the Twin Parish Port Commission20
and the University of Louisiana at Lafayette, subject to confirmation by the21
senators whose districts encompass the parishes of Vermilion and Iberia. Such22
member shall have a bachelor's degree in engineering and shall have a23
minimum of five years experience at the management and operational level of24
a railroad company.25
(2)(a) Members of the board shall serve three-year terms after initial26
terms as provided in this Subparagraph. One such member shall serve an initial27
term of one year; two members shall serve an initial term of two years; and two28
members shall serve an initial term of three years, all as determined by lot at29
the first meeting of the board. Members shall serve until their successors have30 SB NO. 395 ENROLLED
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been appointed and qualified.1
(b) Any vacancy which occurs prior to the expiration of the term for2
which a member of the board has been appointed shall be filled for the3
remainder of the unexpired term in the same manner as the original4
appointment.5
(c) The commissioners shall elect from their membership a chairman,6
vice chairman, secretary-treasurer, and such other officers as they may deem7
necessary. The board shall hold at least one regular meeting each month for the8
purpose of transacting business of the district.9
(d) Board members shall serve without compensation. However, the10
board may authorize per diem for its members in the performance of their11
official duties. The per diem shall not exceed one hundred dollars for attending12
meetings of the board for a maximum of twelve meetings per year. Per diem13
paid pursuant to this Subparagraph shall be paid out of district funds in the14
hands of the treasurer.15
(e) A majority of the membership of the board shall constitute a quorum16
for the transaction of business.17
(f) The board of commissioners shall prescribe rules to govern its18
meetings, shall hold meetings in the city and parish as may be designated by the19
board within either Vermilion or Iberia parishes, may contract with and employ20
attorneys, clerks, engineers, deputy commissioners, superintendents, and other21
agents and employees, and shall fix their compensation and terms of22
employment.23
(g) A board member or employee of a district may not have a pecuniary24
interest, directly or indirectly, in any contract or agreement to which the district25
is a party.26
§140.112. Powers of district27
A. The district, acting by and through its board of commissioners, shall28
have and exercise all powers of a political subdivision necessary or convenient29
for the carrying out of its objects and purposes, including but not limited to30 SB NO. 395 ENROLLED
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rights and powers set out in this Subsection:1
(1) To sue and be sued.2
(2) To adopt, use, and alter at will a corporate seal.3
(3) To acquire by gift, grant, expropriation, purchase, lease, or otherwise4
all property, including rights-of-way; to hold and use any franchise or property,5
immovable, movable, or mixed, corporeal or incorporeal, or any interest6
therein, necessary or desirable for carrying out the objects and purposes of the7
district, including but not limited to the establishment, maintenance, and8
operation of rail services; and to engage in any action, such as the purchase of9
insurance, necessary or desirable for the maintenance or improvement of the10
district's property.11
(4) To enter into contracts for the purchase, acquisition, construction,12
operation, and improvement of works and facilities necessary in connection with13
the purposes of the district.14
(5) In its own name and on its own behalf to incur debt and to issue15
general obligation bonds, revenue bonds, certificates, notes, and other evidences16
of indebtedness and to levy and cause to be collected ad valorem taxes as17
provided in this Subpart and as may be provided by general law.18
(6) To require and issue licenses with respect to its properties and19
facilities.20
(7) To regulate the imposition of fees and rentals charged by the district21
for its facilities and services rendered by it.22
(8) To borrow money and pledge all or part of its revenues, leases, rents,23
or other advantages as security for such loans.24
(9) To appoint officers, agents, and employees, prescribe their duties, and25
fix their compensation.26
(10) To contract with a rail freight common carrier but only one27
authorized under Title 49 of the U.S. Code to operate over the rail lines of the28
district in providing and conducting rail services for the district, which29
company shall be subject to all applicable federal and state regulatory30 SB NO. 395 ENROLLED
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authorities, laws, rules, and regulations governing the operations of a freight1
common carrier railroad in Louisiana.2
§140.113. Railroad development3
A.(1) The district shall have the power to lease, construct and acquire4
railroad tracks, railway spurs, rail yards, and subordinate and related facilities,5
including the acquisition of sites and other necessary property or appurtenances6
thereto within the district, or outside the district if the project is undertaken7
conjointly with other local units of government, under the authority of The8
Local Services Law, R.S. 33:1321, et seq., or other authorizing authority, and9
to acquire, construct, improve, operate, maintain, and provide improvements10
and services necessary therefor, including but not limited to roads, street11
lighting, grade crossings, bridges, rail facilities, drainage, and other utilities and12
related properties.13
(2) The district shall also have the authority to sell, lease, or otherwise14
dispose of, by suitable and appropriate contract, to any enterprise locating or15
existing within the district all or any part of a site, building, or other property16
owned by the district. In determining the consideration for any contract to17
lease, sell, or otherwise dispose of lands, buildings, or other property of the18
district, the board of commissioners may take into consideration the value of the19
lands, buildings, or other properties involved as well as the potential value of20
the economic impact of the enterprise being induced to locate or expand within21
the district. Such economic impact shall include increased employment,22
increased use of local labor, wages and salaries to be paid, consumption of local23
materials, products, and resources, and special tax revenues to be generated by24
the enterprise acquiring or leasing lands, buildings, or other property from the25
district. In no event, however, and under no circumstances shall the board26
dispose of any property of the district for less than the fair market value of the27
property as defined in R.S. 47:2321, without the prior approval of the State28
Bond Commission. The district shall be empowered to enter into leases having29
a term, including all renewal terms, not to exceed fifty years in the aggregate.30 SB NO. 395 ENROLLED
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The approval of the State Bond Commission shall be conclusive for purposes of1
compliance with the requirements of this Paragraph.2
(3) The resolution or ordinance adopted by the board of commissioners3
authorizing any lease, sale, or other disposition of lands, buildings, or other4
property of the district or any attachment thereto shall set forth, in a general5
way, the terms of the authorized lease, sale, or other disposition, and such6
resolution or ordinance shall be published as soon as possible in one issue of the7
official journal of the district. For a period of thirty days from the date of8
publication of any such resolution or ordinance, any interested person may9
contest the legality of such resolution or ordinance or the validity of the10
authorized lease, sale, or other disposition of district property, after which time11
no one shall have any cause of action to contest the legality of such resolution12
or ordinance or to draw in question the legality of the authorized lease, sale, or13
other disposition of district property for any cause whatsoever, and it shall be14
conclusively presumed thereafter that every legal requirement has been15
complied with and no court shall have authority to inquire into such matters16
after the lapse of the thirty days.17
B. The district shall have the following additional powers, together with18
all powers incidental thereto or necessary for the performance of those19
hereinafter stated:20
(1) To acquire, whether by purchase, expropriation, exchange, gift, lease,21
or otherwise, and to construct and improve, maintain, equip, and furnish one22
or more railway development projects, including all immovable and movable23
properties which the board of commissioners may deem necessary in connection24
therewith.25
(2) To lease or to contract for the use of any or all of its authorized26
projects and to charge and collect rent, fees, or charges, not to exceed the fair27
market value therefor, and to terminate any such lease or contractual28
arrangement upon the failure of the lessee or contracting party to comply with29
any of the obligations thereof all as may be provided for in the lease agreement30 SB NO. 395 ENROLLED
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to which the district may become a party.1
(3) To sell, exchange, and convey any or all of its projects upon such2
terms and conditions as the board of commissioners may deem advisable,3
including the power to receive for any such sale the first mortgage note or notes4
of the purchaser of a project representing unpaid installments of the purchase5
price due by the purchaser to the district whenever the board of commissioners6
finds any such actions to be in furtherance of the purposes for which the district7
was organized.8
(4) As security for the payment of the principal of and interest on any9
bonds, notes or other obligations of the district and any agreements made in10
connection therewith, to mortgage and pledge any or all of its projects or any11
part or parts thereof, whether then owned or thereafter acquired, and to pledge12
the revenues and receipts therefrom or from any other source.13
(5)(a) To enter into any cooperative financing associated with railroad14
development between or among the district and the state, any of its local15
governmental subdivisions, political corporations or public benefit16
corporations, the United States or its agencies, or any public or private17
association, corporation, or individual.18
(b) To enter into any cooperative development between or among the19
district and the state, any of its local governmental subdivisions, political20
corporations or public benefit corporations, the United States or its agencies21
under the Railroad Revitalization and Regulatory Reform Act, or any public or22
private association, corporation, or individual. Said methods of cooperative23
development shall include but not be limited to any number of joint24
development agreements and cooperative ownerships, limited partnerships, and25
investment syndicates not prohibited by the Constitution of Louisiana.26
Regardless of the method of financing, the district shall attempt to obtain the27
most favorable arrangement available in order to protect and ensure economic28
development and the railway system.29
§140.114. Fees and ad valorem tax; borrowing money30 SB NO. 395 ENROLLED
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A. The board of commissioners may, when necessary, levy annually an1
ad valorem tax not to exceed five mills on the dollar of assessed valuation of all2
property, provided that the amount, term, and purpose of said tax, as set out in3
a proposition submitted to a vote in accordance with the Louisiana Election4
Code, shall be approved by a majority of the qualified electors voting in a5
special election held for that purpose. The millage shall be resubmitted for voter6
reapproval every tenth year.7
B. All funds derived under this Section may be used only for expenses or8
specified purposes of the district. A certain percentage of all funds derived9
under this Section, to be determined by the board, shall be set aside and used10
exclusively for operational upgrade and maintenance. The board of11
commissioners shall establish and maintain, in addition to all necessary and12
normal accounts, the following special accounts:13
(1) A railroad development operational fund, for the attraction of14
railroad development to accomplish the following:15
(a) The operational fund shall be used for operating expenses necessary16
in promotion of industrial and commercial development of the railway system17
between the parishes of Vermilion and Iberia, in hiring sufficient staff to18
accomplish the purposes set out in this Subpart, and other related expenses.19
(b) The operational fund may also be utilized in contracting for services20
as may be required by the district including but not limited to planning21
assistance, surveys, land use studies, technical services, and other services22
necessary to effectuate a unified railroad development plan.23
(2) An account for the maintenance and operation of a railway24
promotional and advancement center to provide necessary information to25
companies and individuals engaged in providing services and goods to help26
identify potential customers and aid and assist the customers and user27
companies in developing and transporting their products or services.28
§140.115. Obligations of the district29
A. The district shall have authority to incur debt for any one or more of30 SB NO. 395 ENROLLED
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its lawful purposes set forth in this Subpart, to issue in its name negotiable1
bonds, notes, certificates of indebtedness, or other evidences of debt and to2
provide for the security and payment thereof.3
B.(1) The district may in its own name and behalf incur debt and issue4
general obligation ad valorem property tax secured bonds under the authority5
of and subject to the provisions of Article VI, Section 33 of the Constitution of6
Louisiana, Subpart A of Part III of Chapter 4 of Subtitle II of Title 39 of the7
Louisiana Revised Statutes of 1950, when approved by a majority of the8
qualified voters who vote in a special election called and conducted under the9
authority of the Louisiana Election Code, including Chapter 6-A of Title 18 of10
the Louisiana Revised Statutes of 1950, as amended. General obligation bonds11
of the district may be issued for any of the purposes for which the district is12
created or is authorized to act under any provisions of this Subpart, all of which13
purposes are hereby found and declared to be public purposes and functions of14
the state of Louisiana, which are delegated to the district.15
(2) The district may in its own name and behalf issue revenue bonds for16
the purposes for which the district is created or is authorized to act under any17
of the provisions of this Subpart, including railroad rehabilitation and18
improvement revenue bonds. Said bonds shall be issued in the manner as19
provided for in R.S. 39:991 through 1001 and R.S. 39:1011 through 1024.20
(3) The district may in its own name and behalf borrow from time to21
time in the form of certificates of indebtedness. The certificates shall be secured22
by the dedication and pledge of money of the district derived from any lawful23
sources, including fees, lease rentals, service charges, local service agreement24
payments from one or more other contracting parties, the avails of ad valorem25
property taxation, or any combination of such sources of income, provided that26
the term of such certificates shall not exceed ten years and the annual debt27
service on the amount borrowed shall not exceed the anticipated revenues to be28
dedicated and pledged to the payment of the certificates of indebtedness, as29
shall be estimated by the board of commissioners of the district at the time of30 SB NO. 395 ENROLLED
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the adoption of the resolution authorizing the issuance of such certificates. The1
estimate of the board of commissioners referred to in the authorizing resolution2
shall be conclusive for all purposes of this Section.3
(4) The district may borrow the amount of the anticipated ad valorem4
tax, not to exceed five mills, authorized by R.S. 33:140.75 for a period not to5
exceed ten years and may issue certificates of indebtedness therefor and may6
dedicate the avails of the tax funded for the payment thereof for the period of7
time said certificates are outstanding.8
(5) The board of commissioners, as the governing authority of the9
district, is authorized to adopt all necessary resolutions or ordinances which10
may be necessary for ordering, holding, canvassing, and promulgating the11
returns of any election required for the issuance of general obligation bonds, or12
limited tax secured obligations or for the voting of a property tax millage, which13
resolutions or ordinances may include covenants for the security and payment14
of any bonds or other evidence of debt so issued.15
(6) For a period of thirty days from the date of publication of any16
resolution or ordinance authorizing the issuance of any bonds, certificates of17
indebtedness, notes, or other evidence of debt of the district, any interested18
person may contest the legality of such resolution or ordinance and the validity19
of such bonds, certificates of indebtedness, notes, or other evidence of debt20
issued or proposed to be issued thereunder and the security of their payment,21
after which time no one shall have any cause of action to contest the legality of22
said resolution or ordinance or to draw in question the legality of said bonds,23
certificates of indebtedness, notes, or other evidence of debt, the security24
therefor, or the debts represented thereby for any cause whatever, and it shall25
be conclusively presumed that every legal requirement has been complied with,26
and no court shall have authority to inquire into such matters after the lapse of27
thirty days.28
(7) The issuance and sale of such bonds, certificates of indebtedness,29
notes or other evidence of debt by the district shall be subject to approval by the30 SB NO. 395 ENROLLED
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State Bond Commission.1
(8) Such bonds, certificates of indebtedness, notes, or other evidence of2
debt shall have all the qualities of negotiable instruments under the commercial3
laws of the state of Louisiana. 4
§140.116. Competitive Bids5
The district shall be subject to the provisions of Chapter 10 of Title 386
of the Louisiana Revised Statutes of 1950.7
§140.117. Exempt from taxation8
The property, revenues, and income of the district and the interest on9
bonds and notes issued by a district shall be exempt from taxation levied by the10
state or a political subdivision of the state.11
§140.118. Audits of the district12
The district shall, at the district's expense, annually report to the13
legislative auditor in accordance with R.S. 24:513.14
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: