HLS 12RS-158 ORIGINAL
Page 1 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 891
BY REPRESENTATIVE CHAMPAGNE
DISTRICTS/TAXING: Requires voter approval prior to the creation of certain economic
development districts by local governmental subdivisions
AN ACT1
To enact R.S. 33:9038.32(C)(4), relative to certain economic development districts; to2
provide relative to the creation of certain economic development districts by local3
governmental subdivisions; to require voter approval prior to the creation of districts4
whose boundaries include existing businesses; to provide relative to elections held5
to approve the creation of such districts; to provide definitions; and to provide for6
related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 33:9038.32(C)(4) is hereby enacted to read as follows: 9
ยง9038.32. Creation of economic development district10
* * *11
C.12
* * *13
(4)(a)(i) Notwithstanding any other provision of law to the contrary, if a14
local governmental subdivision proposes to establish, by ordinance, an economic15
development district whose boundaries include an existing business that may be16
subject to a sales and use tax levied by the district, then the local governmental17
subdivision shall not adopt the ordinance to create the district unless the governing18
authority of the local governmental subdivision submits a proposition for the creation19
of the district to the qualified electors of the proposed district and a majority of those20 HLS 12RS-158 ORIGINAL
HB NO. 891
Page 2 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
voting in an election held for that purpose in accordance with the Louisiana Election1
Code have voted in favor of the proposition.2
(ii) If there are no qualified electors in the proposed district, the governing3
authority of the local governmental subdivision shall submit the proposition to the4
qualified electors of the local governmental subdivision proposing to create the5
district. If the proposition receives a favorable vote from a majority of those voting6
in an election held for that purpose in accordance with the Louisiana Election Code,7
the governing authority may create the district.8
(iii) The election on the question of the creation of the district shall be held9
at the same time as regularly scheduled election in the local governmental10
subdivision proposing to create the district.11
(b) Any local governmental subdivision that proposes to establish an12
economic development district pursuant to the provisions of this Paragraph shall13
remain subject to all other provisions of this Subsection.14
(c) "Existing business" as used in this Paragraph means any business entity15
that is, on the effective date of the ordinance enacted by a local governmental16
subdivision pursuant to the provisions of this Paragraph, authorized to do business17
in the state of Louisiana and subject to the state corporation income tax imposed by18
the provisions of Title 47 of the Louisiana Revised Statutes of 1950.19
* * *20
Section 2. This Act shall become effective upon signature by the governor or, if not21
signed by the governor, upon expiration of the time for bills to become law without signature22
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If23
vetoed by the governor and subsequently approved by the legislature, this Act shall become24
effective on the day following such approval.25 HLS 12RS-158 ORIGINAL
HB NO. 891
Page 3 of 4
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)]
Champagne HB No. 891
Abstract: Requires voter approval prior to the creation of certain economic development
districts (TIF districts) whose boundaries include an existing business that may be
subject to sales and use taxes levied by the district.
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. Authorizes the districts to
provide for tax increment financing for economic development projects. Further authorizes
the districts to levy ad valorem, sales, and hotel occupancy taxes.
Present law requires that the ordinance creating the district 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.
Proposed law retains present law but provides additional requirements for local
governmental subdivisions. Requires the governing authority of a local governmental
subdivision to submit a proposition on the question of the creation of the district to the
qualified electors of the proposed district if the boundaries include an existing business that
may be subject to a sales and use tax levied by the district. Requires the governing authority
of the local governmental subdivision, if there are no registered voters in the proposed
district, to submit the proposition to the qualified electors of the local governmental
subdivision creating the district. Requires that the proposition receive the approval of a
majority of the qualified electors voting in the election. Further requires that the election on
the question of the creation of the district be held at the same time as regularly scheduled
election in the local governmental subdivision creating the district.
Present law 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 further 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.
Proposed law retains present law and additionally provides that any local governmental
subdivision proposing to establish an economic development district pursuant to proposed
law shall be subject to all other provisions of present law. HLS 12RS-158 ORIGINAL
HB NO. 891
Page 4 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Proposed law defines "existing business" as any business entity that is, on the effective date
of the ordinance enacted pursuant to proposed law, authorized to do business in the state of
La. and subject to the state corporation income tax imposed by the provisions present law
(Title 47 of the La. Revised Statutes of 1950).
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 33:9038.32(C)(4))