HLS 12RS-979 ORIGINAL
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Regular Session, 2012
HOUSE BILL NO. 890
BY REPRESENTATIVE CHAMPAGNE
DISTRICTS/TAXING: Repeals provisions that authorize local governmental subdivisions
to create certain economic development districts
AN ACT1
To repeal Part II of Chapter 27 of Title 33 of the Louisiana Revised Statutes of 1950,2
comprised of R.S. 33:9038.31 through 9038.42, to repeal provisions that authorize3
local governmental subdivisions to create economic development districts that fund4
economic development projects through tax increment financing.5
Be it enacted by the Legislature of Louisiana:6
Section 1. Part II of Chapter 27 of Title 33 of the Louisiana Revised Statutes of7
1950, comprised of R.S. 33:9038.31 through 9038.42, is hereby repealed in its entirety.8
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)]
Champagne HB No. 890
Abstract: Repeals provisions of law that authorize parishes and municipalities to create
economic development districts that fund economic development projects through
tax increment financing.
Present law defines "local governmental subdivision" as any municipality or parish or any
municipality, parish, local industrial board, or local public trust authorized pursuant to
present law (R.S. 33:9038.33(N) or 9038.34(N)) having jurisdiction over the geographical
area bounded by the Mississippi River, the Orleans/Jefferson parish line, and the
Orleans/Plaquemines parish line. Authorizes any local governmental subdivision to
establish, by ordinance, an economic development district. Requires that the ordinance
designate the boundaries of the district. Requires the local governmental subdivision, prior
to the adoption of the ordinance, to publish a notice describing the boundaries of the
proposed district or containing a map showing the boundaries of the district. Requires that
the notice be published twice in the official journal of the local governmental subdivision. HLS 12RS-979 ORIGINAL
HB NO. 890
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Present law additionally requires the governing authority of a municipality, prior to the
adoption of an ordinance to create a district, to receive the written consent of the governing
authority of a parish if the boundaries of the district being proposed by the municipality
include any portion of the unincorporated territory of the parish. Requires the governing
authority of a parish, prior to the adoption of an ordinance to create a district, to receive the
written consent of the governing authority of a municipality if the boundaries of the district
being proposed by the parish include any territory located within the corporate limits of the
municipality.
Present law authorizes a local governmental subdivision or tax recipient entity to issue
revenue bonds payable from revenues generated by economic development projects with a
pledge and dedication of up to the full amount of ad valorem or sales tax increments
annually to be used as a guaranty of any shortfall. Additionally authorizes the local
governmental subdivision or tax recipient entity to issue revenue bonds payable directly
from an irrevocable pledge and dedication of up to the full amount of the increments to
finance or refinance all or any part of an economic development project.
Present law provides that the costs of an economic development project incurred by the local
governmental subdivision or other authorized entity may include the sum total of all
reasonable or necessary costs incurred incidental to or in furtherance of an economic
development project, including but not limited to costs associated with studies and surveys,
the implementation and administration of an economic development plan, property
acquisition and assembly, and the renovation, rehabilitation, relocation, repair, or remodeling
of any existing buildings, improvements, and fixtures.
Present law authorizes an economic development district, subject to voter approval, to levy
ad valorem taxes, sales taxes, or hotel occupancy taxes within the district up to five mills of
ad valorem taxes, up to two percent of sales taxes, or up to two percent of hotel occupancy
taxes, or any combination of such taxes. Provides that the taxes shall be in addition to any
other ad valorem taxes, sales taxes, or hotel occupancy taxes, or combination of such taxes,
then in existence or permitted to be in existence within the district. Requires the district to
publish notice in the official journal of the district once a week for two weeks at least 14
days before a public hearing to hear objections to the proposed taxes.
Present law authorizes a district, pursuant to an intergovernmental agreement, to dedicate
a portion of ad valorem, sales, or hotel occupancy taxes, or any combination thereof,
collected within the boundaries of the district, for use in the financing of an economic
development project located within the boundaries of another local governmental
subdivision or economic development district.
Proposed law repeals present law.
(Repeals R.S. 33:9038.31-9038.42)