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Regular Session, 2012
HOUSE BILL NO. 1103
BY REPRESENTATIVE LEGER
DISTRICTS/SPECIAL: Provides relative to the La. Sports and Entertainment District
AN ACT1
To amend and reenact R.S. 33:130.842(A) and to enact R.S. 33:130.845(10), relative to the2
Louisiana Sports and Entertainment District; to revise the boundaries of the district;3
to provide procedures regarding the dedication of certain state of Louisiana sales tax4
increments for district purposes; and to provide for related matters.5
Notice of intention to introduce this Act has been published6
as provided by Article III, Section 13 of the Constitution of7
Louisiana.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 33:130.842(A) is hereby amended and reenacted and R.S.10
33:130.845(10) is hereby enacted to read as follows:11
§130.842. Louisiana Sports and Entertainment District; creation; territorial12
jurisdiction13
A. The Louisiana Sports and Entertainment District, a body politic and14
corporate, referred to in this Subpart as the "district", is hereby created in the city of15
New Orleans, referred to in this Subpart as the "city". The district shall be16
comprised of all the property bounded by Poydras Street, Loyola Avenue, Girod17
Street, South Liberty Street, Julia Street, Le Rouge Street, Howard Avenue, and18
South Claiborne Avenue, referred to in this Subpart as the "property". the property19
within the following boundaries, referred to in this Subpart as the "property": from20
the intersection of Poydras and LaSalle Streets, commence in a northerly direction21 HLS 12RS-2252 REENGROSSED
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on LaSalle Street to Gravier Street; thence along Gravier Street to Loyola Avenue;1
thence along Loyola Avenue to Girod Street; thence along Girod Street to South2
Liberty Street; thence along South Liberty Street to Julia Street; thence along Julia3
Street to LeRouge Street; thence along LeRouge Street to Howard Avenue; thence4
along Howard Avenue to South Claiborne Avenue; thence along South Claiborne5
Avenue to Poydras Street; and thence along Poydras Street to its intersection with6
LaSalle Street, as all such streets are presently named.7
* * *8
§130.845. Rights and powers9
The district, acting by and through its board, shall have and exercise all10
powers of a political subdivision necessary or convenient for the carrying out of its11
objects and purposes, including but not limited to the following in addition to the12
other rights and powers set out in this Subpart:13
* * *14
(10) Notwithstanding any other provisions of law to the contrary, and subject15
to dedication by law, state of Louisiana sales tax increments may be dedicated to the16
district to be used for district purposes. State of Louisiana sales tax increments17
dedicated for district purposes shall not exceed the aggregate portion of the local18
sales tax increments dedicated for district purposes. Prior to the dedication of any19
state sales tax increments to pay revenue bonds of the district, the commissioner of20
administration shall submit the proposed cooperative endeavor agreement providing21
for such dedication to the Joint Legislative Committee on the Budget for approval.22
The submittal shall also include a written evaluation and determination by the23
division of administration of the anticipated increase in state sales tax revenues to be24
collected within the state over state sales tax revenues that were collected within the25
state in the year immediately prior to the year in which the district was created that26
would be a direct result of the activities taking place within the district. In27
determining whether to approve the dedication of state sales tax increments, the Joint28
Legislative Committee on the Budget shall take into account whether the city has29 HLS 12RS-2252 REENGROSSED
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agreed to the dedication of a portion of the city's sales tax to the district, including1
the length of time for such dedication and the amount of any dedication. Provided2
the commissioner of administration has obtained the approval of the Joint Legislative3
Committee on the Budget as required by this Paragraph, no other approvals with4
respect to such cooperative endeavor agreement shall be required, except that the5
approval of the State Bond Commission shall be required only to the extent that state6
sales tax increments make up all or any portion of the revenue source pledged to the7
payment of bonds of the district.8
Section 2. This Act shall become effective upon signature by the governor or, if not9
signed by the governor, upon expiration of the time for bills to become law without signature10
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If11
vetoed by the governor and subsequently approved by the legislature, this Act shall become12
effective on the day following such approval.13
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)]
Leger HB No. 1103
Abstract: Relative to the La. Sports and Entertainment District and the use of state sales
tax increments for tax increment financing, changes certain procedures for the
approval of the use of such state sales tax increments.
Present law creates the La. Sports and Entertainment District as a political subdivision of the
state located in the city of New Orleans. Provides that the district is created to provide for
cooperative economic and community development among the district, the city, the state,
and the owners of property in the district, to enhance the development of and improvement
to the property within the area of the district, and to expand the entertainment and leisure
activities within the district. Provides for district boundaries and governance. Proposed law
retains present law but makes changes to district boundaries.
Present law provides for the rights and powers of the district, including the power to
implement tax increment financing as authorized in present law (R.S. 33:9038.33 and
9038.34) for economic development districts. Prohibits the district from exercising the
power of taxation.
Proposed law retains present law except makes changes in procedures relative to the
approval of the dedication of state sales tax increments for economic development projects
affecting the district. Proposed law additionally provides that state sales tax increments
dedicated for district purposes shall not exceed the aggregate portion of the local sales tax
increments dedicated for district purposes. HLS 12RS-2252 REENGROSSED
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Present law (R.S. 33:9038.34(A)(6)), in part, requires that, prior to the dedication of any
state sales tax increments to pay revenue bonds for a local economic development project,
the secretary of the Dept. of Economic Development (DED) shall submit the proposed
project to the Joint Legislative Committee on the Budget for approval and shall include a
written evaluation and determination by DED, with input from and certification by the Dept.
of Revenue, of the anticipated increase in state sales tax revenues to be collected within the
state over such revenues that were collected within the state in the year immediately prior
to the year the project is submitted to the committee that would be a direct result of the
project.
Proposed law requires that the commissioner of administration (instead of DED) submit the
proposed cooperative endeavor agreement to the Joint Legislative Committee on the Budget
for approval. Removes requirement that the submittal include a written evaluation and
determination by DED and requires, instead, that the submittal include a written evaluation
and determination by the division of administration of the anticipated increase in state sales
tax revenues to be collected within the state over the state sales tax revenues that were
collected within the state in the year immediately prior to the year in which the district was
created that would be a direct result of the activities taking place within the district.
Proposed law further requires the Joint Legislative Committee on the Budget, in determining
whether to approve the dedication of state sales tax increments, to take into account whether
the city of New Orleans has agreed to dedicate city sales tax for a local economic
development project(s) in the district, including the length of time for and the amount of any
such dedication.
Proposed law provides that if the commissioner of administration obtains approval of the
Joint Legislative Committee on the Budget, no other approval with respect to the cooperative
endeavor agreement is needed, except the approval of the State Bond Commission is
required only to the extent that the state sales tax increments make up all or any portion of
the revenue source pledged to the payment of bonds of the district.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 33:130.842(A); Adds R.S. 33:130.845(10))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Municipal, Parochial and
Cultural Affairs to the original bill.
1. Clarifies that La. sales tax increments, rather than sales taxes, may be dedicated
to the district.
2. Adds provision that prohibits state sales tax increments from exceeding the
aggregate portion of the local sales tax increments dedicated for district
purposes.
3. Relative to the submittal of the local economic development project to the Joint
Legislative Committee on the Budget for approval, additionally requires that the
submittal include a written evaluation and determination by the division of
administration. Provides relative to the contents of the submittal.
House Floor Amendments to the engrossed bill.
1. Changes the district's boundaries.
2. Clarifies that the maximum La. sales tax increments dedicated for district
purposes is the local sales tax increments dedicated for district purposes. HLS 12RS-2252 REENGROSSED
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3. Relative to the submission of a cooperative endeavor agreement to the Joint
Legislative Committee on the Budget (JLCB) for approval, requires that the
commissioner of administration submit the agreement, rather than the district.
4. Relative to the written evaluation by the division of administration, requires that
it include the anticipated increase in the state sales tax revenues to be collected
over the amount collected in the year immediately prior to the year the district
was created, rather than the year immediately prior to the year the project is
submitted to the JLCB. Additionally requires the evaluation to include the
anticipated state sales tax revenues to be collected that would be a direct result
of the activities taking place within the district, rather than those that would be
a direct result of the project.