HLS 11RS-963 ORIGINAL Page 1 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2011 HOUSE BILL NO. 566 BY REPRESENTATIVE ROBIDEAUX DISTRICTS/ECONOMIC DEVEL: Creates the University of Louisiana at Lafayette Improvement District as a special financing and improvement district of the city of Lafayette AN ACT1 To enact R.S. 33:9038.65, relative to the University of Louisiana at Lafayette Improvement2 District as a special financing and improvement district in the city of Lafayette; to3 create and provide for the boundaries of the district; to provide for the governance of4 the district and for the authority, powers, duties, and functions of the governing5 authority of the district; to authorize the levy and collection of certain taxes within the6 district; to provide for payment to the district of a certain portion of state sales tax on7 hotel occupancy collected in the district; and to provide for related matters.8 Notice of intention to introduce this Act has been published as9 provided by Article III, Section 13 of the Constitution of10 Louisiana.11 Be it enacted by the Legislature of Louisiana:12 Section 1. R.S. 33:9038.65 is hereby enacted to read as follows:13 ยง9038.65. University of Louisiana at Lafayette Improvement District14 A. Creation. Pursuant to the authority of Article VI, Section 19 of the15 Constitution of Louisiana, the University of Louisiana at Lafayette Improvement16 District, a special district and political subdivision of the state, referred to in this17 Section as the "district" is hereby created in the city of Lafayette.18 HLS 11RS-963 ORIGINAL HB NO. 566 Page 2 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. B. Boundaries. The district shall be comprised of the following described1 parcels or tracts of land located in the city of Lafayette:2 3 C. Purpose. The district is created to aid the mission of the University of4 Louisiana at Lafayette by providing a means for cooperative economic development5 among the parish of Lafayette, the city of Lafayette, the state of Louisiana, the6 district, and any other entity, public or private, in order to provide for the renovation,7 restoration, construction, improvement, and general and economic development of the8 property within the boundaries of the district as described in this Section with the goal9 of providing funding for the University of Louisiana at Lafayette.10 D. Governance (1) In order to provide for the orderly development of the11 district and effectuation of the purposes of the district, the district shall be12 administered and governed by a board of directors consisting of the following:13 (a) The president of the University of Louisiana at Lafayette or his designee.14 (b) The administrative and finance vice-president of the University of15 Louisiana Lafayette or his designee.16 (c) One member appointed by the Board of Directors of the University of17 Louisiana Lafayette Foundation.18 (d) One member appointed by the Board of Directors of the Ragin' Cajun19 Facilities, Inc.20 (e) Three members appointed by the president of the University of Louisiana21 at Lafayette.22 (2) A majority of the members of the board shall constitute a quorum for the23 transaction of business. The board shall keep minutes of all meetings and shall make24 them available for inspection through the board's secretary. The minute books and25 archives of the district shall be maintained by the board's secretary. The monies,26 funds, and accounts of the district shall be in the official custody of the board.27 (3) The board shall adopt bylaws and prescribe rules to govern its meetings.28 The members of the board shall serve without salary or per diem but shall be entitled29 HLS 11RS-963 ORIGINAL HB NO. 566 Page 3 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. to reimbursement for reasonable, actual, and necessary expenses incurred in the1 performance of their duties.2 (4) The domicile of the board shall be established by the board at a location3 within the city of Lafayette.4 (5) The board shall elect from its own members a president, vice-president,5 secretary, and treasurer, whose duties shall be common to such offices or as may be6 provided by bylaws adopted by the district. At the option of the board or as provided7 in the bylaws, the offices of secretary and treasurer may be held by one person. The8 board shall hold regular meetings and may hold special meetings as provided in the9 bylaws. All such meetings shall be public meetings subject to the provisions of R.S.10 42:11 et seq.11 E. Rights and powers. The district, acting by and through its board of12 directors, shall have and exercise all powers of a political subdivision and special13 district necessary or convenient for the carrying out of its objects and purposes14 including but not limited to the following:15 (1) To sue and to be sued.16 (2) To adopt bylaws and rules and regulations.17 (3) To receive by gift, grant, donation or otherwise any sum of money,18 property, aid, or assistance from the United States, the state of Louisiana, or any19 political subdivision thereof, or any public or private organization, person, firm, or20 corporation and for a public purpose to enter into cooperative endeavor agreements21 providing for funding by the district of any project or program supported by the22 University of Louisiana at Lafayette.23 (4) To enter into contracts, agreements, or cooperative endeavors with the24 state, its political subdivisions or political corporations, or any public or private25 organization, person, firm, or corporation.26 (5) To appoint officers, agents, contractors, professionals, and employees,27 prescribe their duties, and fix their compensation. The board may appoint or hire an28 executive director as it deems necessary for the purpose of carrying out its day-to-day29 HLS 11RS-963 ORIGINAL HB NO. 566 Page 4 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. work operations for convenience and effectiveness in the administration of its plans.1 The board may contract with consultants for project management and with developers2 or planners for such services as it may require. The board may delegate certain3 authority to its employees, consultants, and executive director to act on its behalf,4 which delegation of authority shall be specific and in writing.5 (6) To acquire by gift, grant, purchase, lease, or otherwise such property as6 may be necessary or desirable for carrying out the objectives and purposes of the7 district and to mortgage and sell such property.8 (7) To dispose of or lease its property or assets by public bid or private9 negotiation.10 (8) In its own name and on its own behalf to incur debt and issue bonds,11 notes, certificates, and other evidences of indebtedness subject to the approval of the12 State Bond Commission. For this purpose the district shall be deemed and considered13 to be an issuer for purposes of R.S. 33:9037 and may, to the extent not in conflict with14 this Section, avail itself of the provisions of R.S. 33:9037.15 (9) To avail itself of the provisions of R.S. 33:9020 et seq. to the extent not16 in conflict with this Section. For this purpose the district shall be a local17 governmental subdivision for the purposes of R.S. 33:9022(5).18 (10) To exercise all of the powers granted to a community development19 district as provided in R.S. 33:9039.19, 9039.20 and 9039.32.20 (11) To establish such funds or accounts as are necessary for the conduct of21 the affairs of the district.22 F. Taxing Authority. (1) In order to provide funds for the purposes of the23 district, subject to limitations and prohibitions of the Constitution of Louisiana, the24 district shall have the power to levy ad valorem taxes, sales taxes, and hotel25 occupancy taxes within the district up to five mills of ad valorem taxes, up to two26 percent of sales taxes, and up to two percent of hotel occupancy taxes, or any27 combination of such taxes above which may aggregate the full amount so authorized28 of each and in addition to any other ad valorem taxes, sales taxes, or hotel occupancy29 HLS 11RS-963 ORIGINAL HB NO. 566 Page 5 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. taxes, or combination of such taxes, then in existence or permitted to be in existence1 within the district. All taxes so authorized shall be imposed by ordinance adopted by2 the district, acting by and through its board of directors subject to approval of a3 majority of the qualified electors residing within the boundaries of the district voting4 on the proposition at an election called for such purpose. However, if there are no5 qualified electors residing within the boundaries of the district, no election,6 proceeding, notice, or approval shall be required for the levy of such taxes. The7 powers and rights conferred by this Section shall be in addition to the powers and8 rights conferred by any other general or special law. This Section does and shall be9 construed to provide a complete and additional method for the levy of any ad valorem10 tax, sales tax, or hotel occupancy tax or combination of such taxes. 11 (2) At the option of the district, a tax levied pursuant to this Section shall, and12 shall be deemed to, supersede and be in lieu of other existing taxes that do not secure13 bonds that have been authorized or issued and that have not been dedicated to another14 purpose by other law or by proposition approved by electors voting in an election held15 for such purpose.16 (3) Notwithstanding the provisions of R.S. 47:302.18 and any other law to the17 contrary, ________ percent of the tax imposed pursuant to the provisions of Chapter18 2 of Title 47 for the sale of services as defined in R.S. 47:301(14)(a) in the district19 under the provisions of R.S. 47:302(C) and collected within the boundaries of the20 district shall be credited to the Bond Security and Redemption Fund, and after a21 sufficient amount is allocated from that fund to pay all the obligations secured by the22 full faith and credit of the state which become due and payable within any fiscal year,23 the treasurer shall pay the remainder of such funds to the district. In the event that24 any portion of such funds secure outstanding indebtedness, the portion of the funds25 securing such outstanding indebtedness shall be allocated in accordance with the26 provisions of R.S. 47:302.18.27 G. Tax increment financing. (1) In addition to the other authority provided28 to the district, the district shall have all the authority provided to an economic29 HLS 11RS-963 ORIGINAL HB NO. 566 Page 6 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. development district by Part II of this Chapter and may issue revenue bonds as1 provided thereunder payable from an irrevocable pledge and dedication of up to the2 full amount of tax increments available or made available by other taxing bodies to3 an economic development district as provided in such Part to be derived from any4 project or projects, or parts thereof, in an amount to be determined by the district, in5 order to finance or refinance any project or projects, or parts thereof, which are6 consistent with the purposes of the district.7 (2) The district shall designate the taxes which are to be used in determining8 the tax increments and the initial annual baseline collection rate within the boundaries9 of the district, which shall be the aggregate amount of such designated taxes collected10 within the boundaries of the district in the twelve full calendar months immediately11 preceding August 15, 2011. In addition, a monthly baseline collection rate shall be12 determined by dividing the initial annual baseline collection rate by twelve. The13 initial annual baseline collection rate and the monthly baseline collection rate shall14 be certified by the Lafayette Parish sales tax collection office or Lafayette Parish15 assessor, as the case may be. The certification shall also be published one time in the16 official journal of the city of Lafayette. If the amounts of the initial annual baseline17 collection rate and the monthly baseline collection rate are not contested within thirty18 days after such publication, then such amounts shall be conclusively presumed to be19 valid, and no court shall have any jurisdiction to alter or invalidate the designation of20 the amount of either the initial annual baseline collection rate or the monthly baseline21 collection rate.22 H. Changes to district boundaries; subdistricts. (1) The board may change the23 boundaries of the district as set forth in this Section by ordinance from time to time24 after publication of intent to make such change in the official journal of the city of25 Lafayette at least seven calendar days prior to the meeting of the board at which such26 ordinance shall be considered for adoption. The board shall conduct a public hearing27 at such meeting regarding the ordinance prior to consideration for adoption. Such28 HLS 11RS-963 ORIGINAL HB NO. 566 Page 7 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. boundary changes may be so effected by ordinance of the board without further1 legislative approval.2 (2) The board may create subdistricts within the district and shall have the3 authority to conduct its affairs and have all of the authority contained in this Section4 solely within such subdistrict boundaries, at the option of the district. Any subdistrict5 shall be created in the same manner as changes in the district boundaries as provided6 in this Subsection.7 I. Term. The district shall have perpetual existence subject only to the repeal8 or amendment of this Section by the legislature.9 J. Contesting ordinance or resolution; time limit. Any ordinance or resolution10 adopted by the district authorizing the issuance of bonds or other debt obligations, the11 levy and collection of taxes, or the pledge of tax increments collected under the12 authority of this Section in connection with any financing authorized by this Section,13 may be published at least once in the official journal of the city of Lafayette. For14 thirty days after the date of publication, any person in interest may contest the legality15 of the ordinance or resolution and of any provision therein made for the security and16 payment of the debt obligation, the levy and collection of such taxes, or the pledge of17 tax increments. After that time, no one shall have any cause of action to test the18 regularity, formality, legality, or effectiveness of the ordinance or resolution, and19 provision thereof for any cause whatever. Thereafter, it shall be conclusively20 presumed that every legal requirement for the levy and collection of taxes, the21 issuance of bonds or other debt obligation, or the pledge of tax increments collected,22 including all things pertaining to the authorizing thereof, has been complied with. No23 court shall have authority to inquire into any of these matters after the thirty day24 period after publication.25 I. Liberal construction. This Section, being necessary for economic26 development and the welfare of the city of Lafayette and its residents, shall be27 liberally construed to effect the purposes thereof.28 HLS 11RS-963 ORIGINAL HB NO. 566 Page 8 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Robideaux HB No. 566 Abstract: Creates the University of Louisiana at Lafayette Improvement District as a special financing and improvement district in Lafayette to aid the mission of the University of Louisiana at Lafayette (ULL) through cooperative economic development. Provides for the district governing authority and its powers, including levying taxes, issuing debt, and tax increment financing. Proposed law creates the University of Louisiana at Lafayette Improvement District, as a political subdivision of the state, provides for district boundaries, and provides that the purpose of the district is to aid the mission of the University of Louisiana at Lafayette (ULL) by providing for cooperative economic development among Lafayette Parish, the city of Lafayette, the state, the district, and any other entity, public or private, in order to provide for the renovation, restoration, construction, improvement, and general and economic development of property within the district with the goal of providing funding for ULL. Proposed law provides that the district shall be governed by a board of directors as follows: (1)The president of ULL or his designee. (2)The administrative and finance vice-president of ULL or his designee. (3)One member appointed by the Board of Directors of the University of Louisiana Lafayette Foundation. (4)One member appointed by the Board of Directors of the Ragin' Cajun Facilities, Inc. (5)Three members appointed by the president of ULL. Proposed law provides for board officers, meetings, records, bylaws, and domicile. Provides that board members serve without salary or per diem but may be reimbursed for expenses in the performance of their duties. Proposed law provides that the district shall have all powers of a political subdivision and special district necessary or convenient for the carrying out of its objects and purposes, including but not limited to the following: (1)To sue and to be sued. (2)To adopt bylaws and rules and regulation. (3)To receive by gift, grant, donation, or otherwise money, property, aid or assistance from the United States, the state or any political subdivision thereof, or any public or private organization, person, firm, or corporation and for a public purpose to enter into cooperative endeavor agreements providing for funding by the district of any project or program supported by ULL. (4)To enter into contracts, agreements, or cooperative endeavors with the state, its political subdivisions or political corporations, or any public or private organization, person, firm, or corporation. HLS 11RS-963 ORIGINAL HB NO. 566 Page 9 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (5)To appoint officers, agents, contractors, professionals, and employees, prescribe their duties, and fix their compensation. Authorizes the board to appoint or hire an executive director to carry out its day-to-day operations and to contract with consultants for project management and with developers or planners. Allows the board to delegate authority to its employees, consultants, and executive director, such delegation to be specific and in writing. (6)To acquire by gift, grant, purchase, lease, or otherwise property necessary or desirable for carrying out district objectives and purposes and to mortgage and sell such property. (7)To dispose of or lease its property or assets by public bid or private negotiation. (8)To incur debt and issue bonds, notes, certificates, and other evidences of indebtedness subject to the approval of the State Bond Commission. Provides that the district shall be considered an issuer for purposes of and may avail itself of present law (R.S. 33:9037 relative to cooperative economic development and issuance of bonds and other debt, including refunding bonds). (9)To avail itself of the provisions of present law (R.S. 33:9020 et seq. relative to cooperative economic development, including creation of nonprofit economic development corporations and tax increment financing) to the extent not in conflict with proposed law. (10)To exercise all of the powers granted to a community development district in present law (R.S. 33:9039.19, 9039.20 and 9039.32 which includes numerous powers including but not limited to acquiring and disposing of public servitudes and dedications to public use; borrowing money and issuing bonds; levying special assessments; charging fees and user charges; expropriation; financing, planning, establishing, constructing, equipping, operating, and maintaining systems facilities, and basic infrastructure; establishing and collecting fees, rentals, and charges for facilities and services.) (11)To establish funds or accounts necessary for the conduct of district affairs. Proposed law grants the district the power to levy ad valorem taxes, sales taxes, and hotel occupancy taxes within the district (up to five mills of ad valorem taxes, up to two percent of sales taxes, and up to two percent of hotel occupancy taxes, or any combination of such taxes which may aggregate the full amount so authorized of each). Provides that such taxes are in addition to any other ad valorem taxes, sales taxes, or hotel occupancy taxes, or combination of such taxes in existence or permitted to be in existence within the district. Requires that such taxes be imposed by board ordinance adopted by the district, subject to approval of a majority of the qualified electors residing within the boundaries of the district voting on the proposition at an election called for the purpose. However, provides that, if there are no qualified electors residing within the boundaries of the district, no election, proceeding, notice, or approval shall be required to levy such taxes. Provides that the authority to levy such taxes is in addition to the powers conferred by any other general or special law. Provides that, at district option, a tax levied pursuant to proposed law shall supersede and be in lieu of other existing taxes that do not secure bonds that have been authorized or issued and that have not been dedicated to another purpose by other law or by proposition approved by electors voting in an election held for such purpose. Further provides, notwithstanding present law (R.S. 47:302.18) and any other law to the contrary, ________ percent of the state sales tax imposed pursuant to R.S. 47:302(C) on hotel rooms in the district shall be paid to the district, subject to requirements of the Bond Security and Redemption Fund. Also provides that any portion of such funds that secures outstanding HLS 11RS-963 ORIGINAL HB NO. 566 Page 10 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. indebtedness shall be allocated in accordance with present law (R.S. 47:302.18). Present law (R.S. 47:302.18) provides for disposition of state sales tax imposed pursuant to R.S. 47:302(C) on hotel rooms in Lafayette Parish, first to meet the obligations of the Bond Security and Redemption Fund and the remainder to the Lafayette Parish Visitor Enterprise Fund. Provides that monies in the fund are subject to annual legislative appropriation and to be used for planning, development, and capital improvements at or adjacent to the Cajundome site. Proposed law provides for tax increment financing by the district. Grants the district the authority provided to an economic development district by R.S. 33:9038.31 et seq. and provides that the district may issue revenue bonds payable from an irrevocable pledge and dedication of up to the full amount of tax increments available or made available by other taxing bodies to an economic development district to be derived from any project(s), or parts thereof, in an amount determined by the district, in order to finance or refinance any project(s), or parts thereof, which are consistent with district purposes. Requires the district to designate the taxes which are to be used in determining the tax increments and the initial annual baseline collection rate within district boundaries (to be the aggregate amount of such designated taxes collected within district boundaries in the 12 full calendar months immediately preceding August 15, 2011). Provides that a monthly baseline collection rate shall be determined by dividing the initial annual baseline collection rate by 12. Requires certification of the initial annual baseline collection rate and the monthly baseline collection rate by the Lafayette Parish sales tax collection office or Lafayette Parish assessor, as the case may be, and publication of the certification one time in the official journal of Lafayette. Provides that if the amounts of the initial annual baseline collection rate and the monthly baseline collection rate are not contested within 30 days after publication, then such amounts shall be conclusively presumed to be valid. Proposed law authorizes the board to change district boundaries by ordinance after publication of intent to make such change in the official journal of Lafayette at least seven calendar days prior to the board meeting at which the ordinance is considered for adoption. Requires a public hearing at such meeting prior to consideration of the ordinance for adoption. Provides that such boundary changes may be made by ordinance without further legislative approval. Also authorizes the board to create subdistricts within the district and to have the authority to conduct its affairs and have all the authority of proposed law solely within such subdistrict boundaries, at the option of the district. Provides that creation of a subdistrict shall require the same procedures as changes in the district boundaries. Proposed law grants the district perpetual existence subject only to the repeal or amendment of proposed law by the legislature. Proposed law provides that a district ordinance or resolution authorizing debt issuance, tax levy or collection, or the pledge of tax increments in connection with any financing may be published at least once in the official journal of Lafayette. Provides that a person in interest may contest the legality of the resolution or ordinance for 30 days after the date of publication, and thereafter no one shall have any cause of action to test the regularity, formality, legality, or effectiveness of the ordinance or resolution. Provides that thereafter it shall be conclusively presumed that every legal requirement for the levy and collection of taxes, the issuance of bonds or other debt obligation, or the pledge of tax increments collected, including all things pertaining to the authorizing thereof, has been complied with and no court shall have authority to inquire into any of these matters after the 30 day period after publication. Proposed law provides that it is necessary for economic development and the welfare of the city of Lafayette and its residents and shall be liberally construed to effect its purposes. (Adds R.S. 33:9038.65)