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Regular Session, 2011
SENATE BILL NO. 239
BY SENATOR DORSEY
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
SPECIAL DISTRICTS. Provides for the creation of an "Innovation Park Development
District" within certain parishes. (gov sig)
AN ACT1
To enact R.S. 33:9038.65, relative to special taxing districts for cooperative economic2
development purposes; to create the Innovation Park Development District as a3
political subdivision of the state of Louisiana; to provide for the boundaries of the4
district; to provide for the governance of the district; to provide for the authority,5
powers, duties, and function of the governing body; to provide for the levy and6
collection of taxes and special assessments within the district; to provide for the7
authority to create subdistricts within the district; to authorize the district to issue and8
sell bonds; to authorize the district to engage in tax increment financing; to provide9
for the duration of the district; and to provide for related matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 33:9038.65 is hereby enacted to read as follows: 12
ยง9038.65. Innovation Park Development District13
A. Creation. The governing authority of a parish with a population in14
excess of four hundred forty thousand, hereinafter referred to as the "parish",15
is authorized to create the Innovation Park Development District, a body politic16
and corporate of the state, referred to in this Section as the "district". The17 SB NO. 239
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district shall be a political subdivision of the state and the district is hereby1
granted all of the rights, powers, privileges and immunities accorded by law and2
the Constitution of Louisiana to political subdivisions of the state, subject to the3
limitations provided in this Section.4
B. Boundaries. The district shall be comprised of an area designated by5
ordinance by the governing authority of the district.6
C. Purpose. The district is created to provide for cooperative economic7
and community development among the district, the parish, the state and the8
owners of property in the district, in order to assist in the redevelopment of, and9
dramatic improvement to, the property within the area of the district.10
D. Governance. (1) In order to provide for the orderly development of11
the district and effectuation of the purposes of the district, the district shall be12
administered and governed by a seven member board of commissioners,13
referred to in this Section as the "board", which shall be appointed by the14
governing authority of the district.15
(2) Each member appointed to the board shall be a citizen of the United16
States. At all times, at least one member of the board shall be a person with17
significant research experience.18
(3)(a) Members of the board shall serve terms of five years after the19
initial terms as provided in Subparagraph (b) of this Paragraph.20
(b) Two members shall serve a term that shall expire on December 31,21
2012; two members shall serve a term that shall expire on December 31, 2013;22
two members shall serve a term that shall expire on December 31, 2014; and one23
member shall serve a term that shall expire on December 31, 2015 as24
determined by lot at the first meeting of the board.25
(4) Upon expiration of the term of any member of the board, such26
member shall continue to serve until reappointed or a successor is duly27
appointed. Any vacancy in the membership of the board, occurring either by28
reason of death, resignation, or otherwise, shall be filled in the manner of the29 SB NO. 239
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original appointment. If such appointment to fill a vacancy does not take place1
within sixty days, the board shall appoint an interim successor to serve until the2
position is filled by the appointing entity.3
(5) Any member of the board may be removed by a three-fourths vote4
of the remaining membership of the board for cause, which cause may include5
failure to attend at least one-half of the meetings of the board in a calendar6
year.7
(6) The members of the board shall serve without salary or per diem.8
The board may reimburse any member for reasonable, actual and necessary9
expenses incurred in the performance of his duties pursuant to this Section.10
(7) The board shall elect from its members a president, a vice president,11
a secretary, and a treasurer, whose duties shall be those common to such offices.12
At the option of the board, the offices of secretary and treasurer may be held by13
one person.14
(8) The board shall meet in regular session every two months and shall15
also meet in special session as often as the president of the board convenes the16
board or upon the written request of three members. A majority of the17
members of the board of commissioners shall constitute a quorum for the18
transaction of business. All such meetings shall be public meetings subject to the19
provisions of R.S. 42:11 et seq. The board shall keep minutes of all meetings and20
shall make them available for inspection through the board's secretary or21
secretary-treasurer, who shall also maintain the minute books and archives of22
the district. The monies, funds, and accounts of the district shall be in the23
official custody of the board.24
(9) The domicile of the board shall be established by the board at a25
location within the district. The official journal of the district shall be the26
official journal of the parish, in which the district is located.27
E. Rights and powers. In the event the district is created by the28
governing authority, the district, acting by and through its board, shall have29 SB NO. 239
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and exercise all powers of a political subdivision necessary or convenient for the1
carrying out of its objects and purposes, including but not limited to the2
following:3
(1) To sue and to be sued.4
(2) To adopt, use, and alter at will a corporate seal.5
(3) To acquire by gift, grant, purchase, or otherwise all property,6
including rights of way; to hold and use any franchise or property, real,7
personal, or mixed, tangible or intangible, or any interest therein, necessary or8
desirable for carrying out the objects and purposes of the district, including but9
not limited to the establishment, maintenance, and operation of industrial10
parks, ports, harbors, and terminals.11
(4) To enter into contracts for the purchase, acquisition, construction,12
and improvement of works and facilities necessary in connection with the13
purposes of the district.14
(5) In its own name and on its own behalf to incur debt and to issue15
revenue bonds, special assessment bonds, certificates, notes, and other evidences16
of indebtedness and to levy and cause to be collected certain taxes as provided17
in this Section and as may be provided by general law.18
(6) To provide funds for the operation of the district.19
(7) To borrow money and pledge all or part of its revenues, leases, rents,20
or other advantages as security for such loans.21
(8) To appoint officers, agents, and employees, prescribe their duties, and22
fix their compensation.23
(9) To exercise any and all of the powers granted to an economic24
development district as if the district were an economic development district25
established pursuant to Part II of Chapter 27 of Title 33 of the Louisiana26
Revised Statutes of 1950, including but not limited to the powers of tax27
increment financing pursuant to R.S. 33:9038.33 and 33:9038.34 and the power28
to levy taxes within the district pursuant to R.S. 33:9038.39, provided that any29 SB NO. 239
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such powers exercised by the district shall be subject to the provisions of Part1
II of Chapter 27 of Title 33 of the Louisiana Revised Statutes of 1950.2
(10) To exercise any and all of the powers granted to a community3
development district as if the district were a community development district4
established pursuant to Chapter 27-B of Title 33 of the Louisiana Revised5
Statutes of 1950, including but not limited to the power to levy special6
assessments on property within the district pursuant to R.S. 33:9039.29,7
provided that any such powers exercised by the district shall be subject to the8
provisions of Chapter 27-B of Title 33 of the Louisiana Revised Statutes of 1950.9
F. Levy of taxes. (1) In the event the district is created by the governing10
authority, it is expressly provided that any taxes levied by the district, or any11
subdistrict created by the district, may exceed the limitation set forth by Article12
VI, Section 29(A) of the Constitution of Louisiana and shall be imposed,13
collected and enforced subject to the terms of the resolution imposing the tax14
and the provisions of Chapter 2 of Subtitle II of Title 47 of the Louisiana15
Revised Statutes of 1950.16
(2) Any taxes or assessments of any type to be levied by the district, or17
any subdistrict created by the district, shall be levied only after the board has18
adopted an appropriate resolution giving notice of its intention to levy such19
taxes or assessments, which resolution shall include a general description of the20
taxes or assessments to be levied, and notice of this intention shall be published21
once a week for two weeks in the official journal of the district, the first22
publication to appear at least fourteen days before the public meeting of the23
board at which the board will meet in open and public session to hear any24
objections to the proposed taxes or assessments. The notice of intent so25
published shall state the date, time, and place of the public hearing. Such taxes26
or assessments may be levied only after the board has called a special election27
submitting the proposition for the levy of such taxes or assessments to the28
qualified electors of the district or subdistrict, as applicable, and the proposition29 SB NO. 239
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has received the favorable vote of a majority of the electors voting in the1
election; however, in the event there are no qualified electors in the district or2
subdistrict, as applicable, as certified by the registrar of voters, no such election3
shall be required. The powers and rights conferred by this Section shall be in4
addition to the powers and rights conferred by any other general or special law.5
This Section does and shall be construed to provide a complete and additional6
method for the levy of any taxes or assessments. No election, proceeding, notice,7
or approval shall be required for the levy of such taxes or assessments except8
as provided herein.9
G. Creation of subdistricts. In the event the district is created by the10
governing authority, the district may create subdistricts as provided in this11
Section. The district shall publish notice of its intent to create a subdistrict in12
the official journal of the district. At least ten days after publication of such13
notice in the official journal of the district, the board shall conduct a public14
hearing on the question of creating such subdistrict. Thereafter, the board may15
designate one or more areas within the boundaries of the district as a subdistrict16
of the district. Each subdistrict shall constitute a political subdivision of the17
state and shall be governed by the board. Each subdistrict shall have the same18
powers as the district and shall be given a name and designated as "Innovation19
Park Development District Subdistrict No." or such other suitable name as the20
board may designate.21
H. Bonds of the district. (1) In the event the district is created by the22
governing authority, the district, or any subdistrict created by the district, is23
hereby authorized and empowered to issue and sell from time to time bonds,24
notes, renewal notes, refunding bonds, interim certificates, certificates of25
indebtedness, certificates of participation, debentures, warrants, commercial26
paper, or other obligations or evidences of indebtedness to provide funds for27
and to fulfill and achieve its public purpose or corporate purposes, as set forth28
in this Section, including but not limited to the payment of all or a portion of the29 SB NO. 239
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costs of a project, to provide amounts necessary for any corporate purposes,1
including necessary and incidental expenses in connection with the issuance of2
the obligations, the payment of principal and interest on the obligations of the3
district, the establishment of reserves to secure such obligations, and all other4
purposes and expenditures of the district incident to and necessary or5
convenient to carry out its public functions or corporate purposes, and any6
credit enhancement for said obligations.7
(2) Except as may otherwise be provided by the board, all obligations8
issued by the district, or any subdistrict created by the district, shall be9
negotiable instruments and payable solely from the revenues of the district or10
subdistrict, as applicable, as determined by the board, or from any other11
sources whatsoever, that may be available to the district or subdistrict, as12
applicable, but shall not be secured by the full faith and credit of the state or the13
parish.14
(3) Obligations shall be authorized, issued, and sold by a resolution or15
resolutions of the board. Such bonds or obligations may be of such series, bear16
such date or dates, mature at such time or times, bear interest at such rate or17
rates, including variable, adjustable, or zero interest rates, be payable at such18
time or times, be in such denominations, be sold at such price or prices, at19
public or private negotiated sale, after advertisement as is provided for in R.S.20
39:1426, be in such form, carry such registration and exchangeability privileges,21
be payable at such place or places, be subject to such terms of redemption, and22
be entitled to such priorities on the income, revenue, and receipts of, or23
available to, the district or subdistrict, as applicable, as may be provided by the24
board in the resolution or resolutions providing for the issuance and sale of the25
bonds or obligations of the district.26
(4) The obligations of the district, or any subdistrict created by the27
district, shall be signed by such officers of the board by either manual or28
facsimile signatures as shall be determined by resolution or resolutions of the29 SB NO. 239
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board, and shall have impressed or imprinted thereon the seal of the district, or1
a facsimile thereof.2
(5) Any obligations of the district, or any subdistrict created by the3
district, may be validly issued, sold, and delivered, notwithstanding that one or4
more of the officers of the board signing such obligations, or whose facsimile5
signature or signatures may be on the obligations, shall have ceased to be such6
officer of the board at the time such obligations shall actually have been7
delivered.8
(6) Obligations of the district, or any subdistrict created by the district,9
may be sold in such manner and from time to time as may be determined by the10
district to be most beneficial, subject to approval of the State Bond Commission,11
and the district may pay all expenses, premiums, fees, or commissions, which12
it may deem necessary or advantageous in connection with the issuance and sale13
thereof.14
(7) The board may authorize the establishment of a fund or funds for the15
creation of a debt service reserve, a renewal and replacement reserve, or such16
other funds or reserves as the board may approve with respect to the financing17
and operation of any project funded with the proceeds of such bonds and as18
may be authorized by any bond resolution, trust agreement, indenture of trust19
or similar instrument or agreement pursuant to the provisions of which the20
issuance of bonds or other obligations of the district or subdistrict may be21
authorized.22
(8) Any cost, obligation, or expense incurred for any of the purposes or23
powers of the district specified in this Section shall be a part of the project costs24
and may be paid or reimbursed as such out of the proceeds of bonds or other25
obligations issued by the district or subdistrict; provided however, no portion26
of any state sales taxes made directly available to the district pursuant to an27
agreement with the state shall be used by the district to pay the costs of28
constructing or operating any privately-owned hotel located within the district,29 SB NO. 239
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without the consent of the Joint Legislative Committee on the Budget or its1
successor.2
(9) For a period of thirty days from the date of publication of the3
resolution authorizing the issuance of bonds hereunder, any persons in interest4
shall have the right to contest the legality of the resolution and the legality of the5
bond issue for any cause, after which time no one shall have any cause or right6
of action to contest the legality of said resolution or of the bonds authorized7
thereby for any cause whatsoever. If no suit, action, or proceeding is begun8
contesting the validity of the bond issue within the thirty days herein9
prescribed, the authority to issue the bonds and to provide for the payment10
thereof, and the legality thereof and all of the provisions of the resolution11
authorizing the issuance of the bonds shall be conclusively presumed, and no12
court shall have authority to inquire into such matters.13
(10) Neither the members of the board nor any person executing the14
bonds shall be personally liable for the bonds or be subject to any personal15
liability by reason of the issuance thereof. No earnings or assets of the district,16
or any subdistrict created by the district, shall accrue to the benefit of any17
private persons. However, the limitation of liability provided for in this18
Paragraph shall not apply to any gross negligence or criminal negligence on the19
part of any member of the board or person executing the bonds.20
(11) All obligations authorized to be issued by the district, or any21
subdistrict created by the district, pursuant to the provisions of this Section,22
together with interest thereof, income therefrom, and gain upon the sale thereof23
shall be exempt from all state and local taxes.24
(12) The state and all public officers, any parish, municipality, or other25
subdivision or instrumentality of the state, any political subdivision, any bank,26
banker, trust company, savings bank and institution, building and loan27
association, savings and loan association, investment company or any person28
carrying on a banking or investment business, any insurance company or29 SB NO. 239
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business, insurance association, and any person carrying on an insurance1
business, and any executor, administrator, curator, trustee, and other fiduciary,2
and any retirement system or pension fund may legally invest any sinking funds3
monies, or other funds belonging to them or within their control in any bonds4
or other obligations issued by the district, or any subdistrict created by the5
district, pursuant to the provisions of this Section, and such bonds or other6
obligations shall be authorized security for all public deposits. It is the purpose7
of this Section to authorize such persons, firms, corporations, associations,8
political subdivisions and officers, or other entities, public or private, to use any9
funds owned or controlled by them, including but not limited to sinking,10
insurance, investment, retirement, compensation, pension and trust funds, and11
funds held on deposit, for the purchase of any such bonds or other obligations12
of the district or subdistrict, and that any such bonds shall be authorized13
security for all public deposits. However, nothing contained in this Section with14
regard to legal investments or security for public deposits shall be construed as15
relieving any such person, firm, corporation, or other entity from any duty of16
exercising reasonable care in selecting securities.17
I. Term. The district shall dissolve and cease to exist upon the later to18
occur of either one year after the date on which all loans, bonds, notes, and19
other evidences of indebtedness of the district, including refunding bonds, are20
paid in full as to both principal and interest, or fifty years from the date21
created.22
J. Liberal construction. This Section, being necessary for the welfare of23
the state, the parish and its residents, shall be liberally construed to effect the24
purposes thereof.25
K. Severability. The provisions of this Section are severable. It is26
intended that if any provision of this Section should be adjudged invalid or27
unenforceable, then such provision shall be ineffective to the extent of such28
invalidity or unenforceability without invalidating the remaining provisions of29 SB NO. 239
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this Section.1
Section 2. This Act shall become effective upon signature by the governor or, if not2
signed by the governor, upon expiration of the time for bills to become law without signature3
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If4
vetoed by the governor and subsequently approved by the legislature, this Act shall become5
effective on the day following such approval.6
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by James Benton.
DIGEST
Proposed law creates the Innovation Park Development District in a certain parish as a
political subdivision of the state. Provides for the authority to designate boundaries of the
district. Provides that the purpose of the district is to provide for cooperative economic and
community development among the district, the parish, the state, and the owners of the
property in the district, in order to assist in the redevelopment of the property within the
district.
Proposed law provides that the district will be governed by a seven member board of
commissioners, which will be appointed by the governing authority of the district.
Proposed law provides for five-year terms after the initial staggered terms. Provides with
respect to officers and meetings of the board. Provides that the domicile of the board will be
established by the board at a location within the district.
Proposed law provides that, upon creation, the general rights and powers of the district and
its board of commissioners will include the following:
(1) To sue and to be sued.
(2) To adopt, use, and alter at will a corporate seal.
(3) To acquire by gift, grant, 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 industrial parks, ports, harbors, and terminals.
(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)To incur debt and to issue revenue bonds, special assessment bonds, certificates,
notes, and other evidences of indebtedness and to levy and cause to be collected
certain taxes.
(6) To provide funds for the operation of the district.
(7) To borrow money and pledge all or part of its revenues, leases, rents, or other
advantages as security for such loans.
(8) To appoint officers, agents, and employees, prescribe their duties, and fix their SB NO. 239
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compensation.
(9) To exercise any and all of the powers granted to an economic development district,
including but not limited to the powers of tax increment financing, and the power to
levy taxes within the district.
(10) To exercise any and all of the powers granted to a community development district,
including but not limited to the power to levy special assessments on property within
the district.
Proposed law provides that, upon creation, the district may exceed the limit for sales taxes
set forth in Article VI, Section 29(A) of the Constitution. Provides that taxes and
assessments to be levied by the district will be levied only after the board has adopted a
resolution and giving notice at least 14 days prior to the public meeting of the board to hear
any objections to the proposed taxes or assessments. Provides that such taxes or assessments
may be levied only after approval of the electors voting at a special election; however, if
there are no qualified electors in the district, no election will be required, but the tax will not
become effective unless and until approved by the parish council. Provides that, upon
creation, the district may create subdistricts. Provides that, upon creation, the district may
issue bonds, notes, certificates of indebtedness and other obligations or evidences of
indebtedness. Provides that obligations will be authorized, issued, and sold by a resolution
of the board in such manner and from time to time as determined by the district, subject to
approval of the State Bond Commission.
Proposed law provides that for 30 days after the date of publication of the resolution
authorizing the bonds, any person in interest may contest the legality of such. After 30 days,
no one will have any right to contest the legality of the resolution.
Proposed law provides that the district will dissolve upon the later of one year after the date
on which all loans, bonds, notes, and other evidences of indebtedness.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 33:9038.65)