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Regular Session, 2012
HOUSE BILL NO. 335
BY REPRESENTATIVE LORUSSO
DISTRICTS/SPECIAL: Relative to the New Orleans City Park Taxing District, provides
with respect to procedures relative to use of state sales tax increments for tax
increment financing
AN ACT1
To amend and reenact R.S. 33:9038.59(G), relative to the New Orleans City Park Taxing2
District; to provide relative to tax increment financing and the dedication of state3
sales tax increments for such purpose; to provide relative to approval of agreements4
related to such state sales tax increment financing; 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. 33:9038.59(G) is hereby amended and reenacted to read as follows:10
ยง9038.59. New Orleans City Park Taxing District11
* * *12
G.(1) For purposes of implementing tax increment financing as provided for13
in this Part, the board shall have all authorities provided for in R.S. 33:9038.34 to14
implement sales tax increment financing, including in particular the provisions of15
R.S. 33:9038.34(O), except that the provisions of R.S. 33:9038.34(A)(6) shall not be16
applicable and instead Paragraph (2) of this Subsection shall control the process for17
the dedication of any state of Louisiana sales tax increments. However, any tax or18
portion of a tax which has been previously dedicated to another purpose according19 HLS 12RS-621 ENGROSSED
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to a proposition approved by voters shall be used as such a tax increment only if1
approved by a majority of the voters of the taxing authority levying the tax voting2
on the proposition in an election held for such purpose.3
(2) Subject to dedication by law, state of Louisiana sales tax increments may4
be dedicated to pay the revenue bonds of a local economic development project but5
shall not exceed the aggregate portion of the local sales tax increment dedicated for6
such purposes. Prior to the dedication of state sales tax increments to pay revenue7
bonds for a local economic development project, the commissioner of administration8
shall submit the proposed project to the Joint Legislative Committee on the Budget9
for approval. The submittal shall include a written evaluation and determination by10
the division of administration and certification by the Department of Revenue of the11
anticipated increase in state sales tax revenues to be collected within the state over12
state sales tax revenues that were collected within the state in the year immediately13
prior to the year in which the project is submitted to the committee that would be a14
direct result of the project. In determining whether to approve the dedication of state15
sales tax increments, the Joint Legislative Committee on the Budget shall take into16
account whether the city of New Orleans has agreed to the dedication of a portion17
of the city's sales tax for a local economic project or projects in the district, including18
the length of time for any such dedication and the amount of any such dedication.19
In addition, subject to the provisions of R.S. 33:9029.2, any cooperative endeavor20
agreement or other agreement providing for the expenditure of funds collected by the21
state as state sales tax increments and dedicated to a project or for the payment of22
revenue bonds therefor shall be subject to approval by the State Bond Commission23
prior to execution by the state, except the provisions of R.S. 33:9029.2(A)(2) and (B)24
as to the submission of applications or filing of suits by the Department of Economic25
Development shall not apply. Any application to the State Bond Commission for26
such approval shall be submitted by the district. Any suit to determine the validity27
of any cooperative endeavor agreement prior to the execution thereof pursuant to the28
provisions of Part XVI of Chapter 32 of Title 13 of the Louisiana Revised Statutes29 HLS 12RS-621 ENGROSSED
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of 1950 as though the agreement constituted the issuance of bonds of a governmental1
unit may be filed by the district.2
(2) (3) The board shall designate the boundaries of a sales tax area and shall3
designate the local sales taxes, which are to be used in determining the sales tax4
increments and the initial annual baseline collection rate for the sales tax area, which5
shall be the amount of such designated sales taxes collected in the sales tax area in6
the fiscal year of the district most recently completed prior to the establishment of7
the sales tax area. In addition, a monthly baseline collection rate shall be determined8
by dividing the initial annual baseline collection rate by twelve. The initial annual9
baseline collection rate and the monthly baseline collection rate shall be certified by10
the chief financial officer or equivalent of the district. The certification shall also be11
published one time in the official journal of the parish of Orleans. If the amounts of12
the initial annual baseline collection rate and the monthly baseline collection rate are13
not contested within thirty days after said publication, then such amounts shall be14
conclusively presumed to be valid, and no court shall have jurisdiction to alter or15
invalidate the designation of the amount of either the initial annual baseline16
collection rate or the monthly baseline collection rate.17
* * *18
Section 2. This Act shall become effective upon signature by the governor or, if not19
signed by the governor, upon expiration of the time for bills to become law without signature20
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If21
vetoed by the governor and subsequently approved by the legislature, this Act shall become22
effective on the day following such approval.23 HLS 12RS-621 ENGROSSED
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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)]
Lorusso HB No. 335
Abstract: Relative to the New Orleans City Park Taxing District and the use of state sales
tax increments for tax increment financing, changes certain procedures for approval
of the use of such state sales tax increments and of related agreements.
Present law creates the New Orleans City Park Taxing District with boundaries the same as
New Orleans City Park to provide for cooperative economic development between the city
of New Orleans, the New Orleans City Park Improvement Association, and the district in
order to provide for the renovation, restoration, and development of New Orleans City Park.
Provides for governance by a four-member board of commissioners: the president of the
New Orleans City Council, the secretary of the Dept. of Culture, Recreation and Tourism,
the president of the board of commissioners of the New Orleans City Park Improvement
Association, and the chief executive officer of New Orleans City Park.
Present law grants the district all the powers of a political subdivision and special taxing
district which are necessary or convenient for the carrying out of its objects. Present law
authorizes the district to implement tax increment financing as provided in present law (R.S.
33:9038.34) relative to sales tax increment financing, and particularly provisions for creation
of a special economic development trust fund. Specifies that any tax or portion of tax which
has previously been dedicated to another purpose may be used as such a tax increment only
if approved by a majority of the voters of the taxing authority levying the tax voting on the
proposition in an election held for such purpose.
Proposed law retains present law except provides for certain changes in procedures relative
to approval of the dedication of state sales tax increments for economic development
projects affecting the district. 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 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
project 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. Further requires 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 in which the project
is submitted to the committee that would be a direct result of the project. 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. HLS 12RS-621 ENGROSSED
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Proposed law retains present law that requires approval by the State Bond Commission of
any cooperative endeavor agreement or other agreement providing for the expenditure of
funds collected by the state as state sales tax increments and dedicated to a project or for the
payment of revenue bonds therefor.
Present law (R.S. 33:9029.2) provides that the state through the commissioner of
administration may enter into cooperative endeavor agreements with political subdivisions
or other agencies or persons to achieve a public purpose, including but not limited to
enhancing or maintaining the economic well-being of the state, which agreement may or
may not contemplate the issuance of bonds. Otherwise provides with respect to such
agreements. Requires that certain such cooperative endeavor agreements be approved by
the State Bond Commission prior to execution. Present law (R.S. 33:9029.2(A)(2)) requires
submission of the approval application to the State Bond Commission by the secretary of the
DED and provides for the content of such applications. Present law (R.S. 33:9029.2(B))
makes provisions of Part XVI of Chapter 32 of Title 13 of the La. Revised Statutes of 1950
(relative to suits to determine the validity of governmental bonds) applicable to certain such
cooperative endeavors and provides that such suits may be filed by DED as though such
agreements constituted the issuance of bonds of a governmental unit.
Proposed law makes present law (R.S. 33:9029.2) applicable to agreements of the district
to dedicate state sales tax increments; however, excepts such agreements from provisions
of R.S. 33:9029.2(A)(2) and (B) that provide for DED to submit an application to the
committee or file a suit and provides instead that the district (instead of DED) shall submit
any application to the State Bond Commission and may file suit to determine the validity of
any cooperative endeavor agreement.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 33:9038.59(G))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Municipal, Parochial and
Cultural Affairs to the original bill.
1. Relative to the submission of a local economic development project to the Joint
Legislative Committee on the Budget for approval, requires that the
commissioner of administration submit the project, rather than the district.
Additionally requires that the submittal include a written evaluation and
determination by the division of administration.