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Regular Session, 2012
SENATE BILL NO. 473
BY SENATORS MURRAY, ALARIO AND MORRELL AND REPRESENTATIVE
LEGER
TAX/LOCAL. Creates the New Orleans Hotel Tourism District, a political subdivision of
the State of Louisiana. (gov sig)
AN ACT1
To enact Subpart B-28 of Part IV of Chapter 1 of Title 33 of the Louisiana Revised Statutes2
of 1950, to be comprised of R.S. 33:130.551 through 130.560.5, relative to economic3
and community development in Orleans Parish; to create the New Orleans Hotel4
Tourism District, a political subdivision of the State of Louisiana; to provide for the5
boundaries of the district; to provide for the governance of the district; to provide for6
the authority, powers, duties, and functions of the governing body of the district; to7
allow for the levy and collection of assessments within the district; to allow the8
governing body of the district to enter into cooperative endeavor agreements; and to9
provide for related matters.10
Notice of intention to introduce this Act has been published.11
Be it enacted by the Legislature of Louisiana:12
Section 1. Subpart B-28 of Part IV of Subpart 1 of Title 33 of the Louisiana Revised13
Statutes of 1950, comprised of R.S. 33:130.551 through 130.560.5, is hereby enacted to read14
as follows:15
SUBPART B. NEW ORLEANS HOTEL TOURISM DISTRICT16
17 SB NO. 473
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§130.551. Title; legislative findings; purpose1
A. The provisions of this Subpart shall hereafter be known as the "New2
Orleans Hotel Tourism District Act".3
B. The Legislature hereby finds and declares all of the following:4
(1) There is a direct correlation between the amount of funds spent on5
destination-based marketing, sales and promotion of a locality and an increase6
in the number of visitors, occupancy of hotels, sales of food, beverages and other7
items, admissions to cultural and other entertainment venues, collections of8
related state and local sales and use taxes, job creation and a resulting general9
economic vitality of the hospitality industry and related businesses in the10
locality.11
(2) It is in the state's public interest and vital to the welfare of the state's12
economy to enhance and expand the hospitality industry in the district and to13
provide for increased hotel occupancy, tourism, economic development and job14
creation in the district.15
(3) Cooperative public-private partnerships are necessary to generate the16
greatest benefit in the district from destination-based marketing, sales and17
promotion and to achieve the purposes of this New Orleans Hotel Tourism18
District Act.19
(4) The marketing of New Orleans as a tourist and traveler destination20
and the enhancement of the city's infrastructure for that purpose is hereby21
declared to be affected with the public interest. This Subpart is enacted in the22
exercise of the police powers of this state for the purpose of protecting the23
health, peace, safety, and general welfare of the people of this state, and the24
police powers shall be used to collect assessments not paid by the deadlines25
established by the secretary.26
C. This New Orleans Hotel Tourism District Act is enacted for the27
purpose of providing for the organized and cooperative collection and use of28
funds through public-private partnership to market and promote the district29 SB NO. 473
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as a destination and to provide for increased economic activity within the1
hospitality industry in the district, including increased number of visitors, hotel2
occupancy, food, beverage and other retail sales, tourism, including cultural and3
family tourism, job creation and other economic development in the district.4
§130.552. New Orleans Hotel Tourism District; creation; territorial jurisdiction5
A. There is hereby created in the city of New Orleans, the New Orleans6
Hotel Tourism District, a body politic and corporate of the state, referred to in7
this Subpart as the "district", which shall be comprised of all the property8
within the parish of Orleans.9
B. The district shall be a political subdivision of the state as defined in10
Article VI, Section 44 of the Constitution of Louisiana. Pursuant to Article VI,11
Sections 19 and 21 of the Constitution of Louisiana, the district is hereby12
granted all of the rights, powers, privileges and immunities accorded by law and13
the Constitution of Louisiana to political subdivisions of the state, subject to the14
limitations provided in this Subpart.15
§130.553. Definitions16
As used in this Subpart:17
(1) "Assessed hotel" means a person operating a hotel and required to18
pay an assessment pursuant to this Subpart, and until the first assessment is19
levied, any person operating a hotel authorized to vote for the initial20
referendum.21
(2) "Board" means the board of commissioners of the New Orleans Hotel22
Tourism District.23
(3) "City" means the city of New Orleans.24
(4) "District" means the New Orleans Hotel Tourism District, created25
as a body politic and corporate and political subdivision of the state of26
Louisiana composed of all of the territory in the parish of Orleans.27
(5) "Hospitality zone" means all territories within the boundaries of28
Faubourg Marigny, French Quarter, the Central Business District, the29 SB NO. 473
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Warehouse District, Convention Center District, Louisiana Sports and1
Entertainment District, any contiguous area between the boundaries of any of2
the forgoing and the Mississippi River and any other contiguous area formally3
designated by the mayor of New Orleans as part of the hospitality zone.4
(6) "Hotel" means any establishment engaged in the business of5
furnishing or providing rooms intended or designed for dwelling, lodging, or6
sleeping purposes to transient guests where such establishment consists of ten7
or more guest rooms but does not include any hospital, convalescent or nursing8
home or sanitarium, or any hotel-like facility operated by or in connection with9
a hospital or medical clinic providing rooms exclusively for patients and their10
families.11
(7) "Person" means an individual, public entity, firm, corporation,12
partnership, limited liability company, trust, association, or any other business13
entity or juridical person, whether operating on a for-profit or nonprofit basis.14
(8) "Referendum" means any vote by assessed hotels by mailed ballot on15
measures proposed by the district pursuant to resolution of the board in16
accordance with the provisions of this Subpart.17
(9) "Secretary" means the Secretary of the Louisiana Department of18
Revenue.19
§130.554. Purpose20
The district is created to provide a mechanism to promote and develop21
tourism and related job stimulation and development in the district by22
providing for a self-generated private-sector financing mechanism and23
self-assessment program from the hotel industry that, in partnership with other24
public and private funding, will provide funding necessary to increase25
destination-based marketing and promotion expenditures, and other related26
expenditures, on behalf of the district and the destination of New Orleans, and27
to benefit assessed hotels and all other hospitality-related businesses through28
increased economic activity within the hospitality industry in the district,29 SB NO. 473
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including increased hotel occupancy; food, beverage, and other retail sales;1
tourism, including family and cultural; job creation; and other economic2
development in the district.3
§130.555. Governance4
A. In order to effect the purposes of the district, the district shall be5
administered and governed by a board of commissioners comprised of the6
individuals who are duly elected and serving as members of the board of7
directors of the Greater New Orleans Hotel and Lodging Association, Inc., who8
shall serve ex officio as the members of the board.9
B. The members of the board shall serve without salary or per diem.10
The board may reimburse any member for reasonable, actual and necessary11
expenses incurred in the performance of his duties pursuant to this Subpart.12
C. The board shall elect a chair from among its members. The board13
may also elect from among its members a secretary, treasurer and such other14
board officers as it deems appropriate.15
D. The board shall meet in regular session once each quarter and shall16
also meet in special session as often as the chair of the board convenes the board17
or upon the written request of three members. A majority of the members of18
the board shall constitute a quorum for the transaction of business. All such19
meetings shall be public meetings subject to the provisions of R.S. 42:14. The20
board shall keep minutes of all meetings and shall make them available for21
inspection through the board's secretary or secretary-treasurer, who shall also22
maintain the minute books and archives of the district. The monies, funds, and23
accounts of the district shall be in the official custody of the board.24
E. 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 city.27
F. All administrative duties requiring staff assistance to the board shall28
be furnished, at the option of the board, from the personnel of the Greater New29 SB NO. 473
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Orleans Hotel and Lodging Association, Inc., the New Orleans Convention and1
Visitors Bureau or the New Orleans Tourism Marketing Corporation.2
§130.556. Rights and Powers3
The district, acting by and through its board, shall have and exercise all4
powers of a political subdivision necessary or convenient for the carrying out5
of its objects and purposes, including but not limited to the following in addition6
to the other rights and powers set out in this Subpart:7
(1) To sue and be sued.8
(2) To adopt, use, and alter at will a corporate seal.9
(3) To acquire by gift, grant, purchase, or otherwise all property,10
including rights of way; to hold and use any franchise or property, real,11
personal, or mixed, tangible or intangible, or any interest therein, necessary or12
desirable for carrying out the objects and purposes of the district.13
(4) To enter into contracts related to the construction and improvement14
of works and facilities in the hospitality zone in connection with the purposes15
of the district, and other agreements on terms the board approves.16
(5) To appoint agents and independent contractors, prescribe their17
duties, and fix their compensation.18
(6) To enter into cooperative endeavor agreements to accomplish the19
purposes of the district with any other party, public or private.20
§130.557. Levy of assessments; use of proceeds21
A. The district is hereby authorized and empowered to levy assessments22
for destination marketing or hospitality zone public improvements against23
assessed hotels in such amounts as shall be approved by the board and ratified24
by a vote of the assessed hotels in a referendum conducted in accordance with25
R.S. 33:130.558 of this Subpart. In no event shall such annual assessments26
either individually or in the aggregate at any time yield an amount in excess of27
1.75% of gross hotel room sales receipts of an assessed hotel. It is expressly28
provided that any assessments levied by the district shall be imposed, collected29 SB NO. 473
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and enforced subject to the terms of the resolution imposing the assessment and1
this Subpart and may exceed the limitation set forth by Article VI, Section2
29(A) of the Constitution of Louisiana.3
B. The district is hereby further authorized to levy an assessment with4
respect to charges for parking by overnight guests of hotels in the hospitality5
zone that are reflected on the hotel folio or other itemization of charges6
furnished to guests; provided that any such assessment shall not take effect until7
forty-five days after its enactment and further provided that the New Orleans8
City Council may by the affirmative vote of a majority of its members taken at9
any time within thirty days of its enactment rescind any such assessment. The10
avails of any assessment so levied shall be dedicated to the district for use in the11
furtherance of its purposes and shall be applied in accordance with R.S.12
33:130.557(H) of this Subpart.13
C. Any assessments to be levied by the district shall be levied only after14
the board has adopted an appropriate resolution giving notice of its intention15
to levy such assessments, which resolution shall include a general description of16
the assessments to be levied and any other matter proposed to be voted upon in17
an applicable referendum and shall be delivered to the secretary. Such18
assessment may be levied only after the assessment has been approved in a19
referendum of the assessed hotels as provided in section 130.558 of this Subpart20
and shall be collected in accordance with section 130.560 of this Subpart.21
D. An assessed hotel may appeal an assessment levied pursuant to this22
Subpart to the secretary by written notice of appeal supported by substantial23
evidence submitted to the secretary under penalty of perjury by affidavit or24
declaration but shall nonetheless be obligated to pay the assessments levied25
under protest pending the appeal. If the assessed hotel is at fault for the26
assessment error, the secretary may impose a fee for reasonable costs incurred27
by the secretary in correcting the assessment against the assessed hotel as a28
condition of correcting the assessment.29 SB NO. 473
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E. Notwithstanding any other provision of law, an assessed hotel may at1
its discretion charge some or all of the assessment on customer folios. An2
assessed hotel that is passing on the assessment to its customers must separately3
identify or itemize the assessment on the folio or other similar document4
provided to the customer. Assessments levied pursuant to this Subpart and5
passed on to customers are not part of gross receipts or gross revenue for any6
purpose, including the calculation of hotel occupancy taxes and are not part of7
income pursuant to any lease; provided that such assessments that are passed8
on to customers shall be included in gross receipts of assessed hotels for9
purposes of income and franchise taxes.10
F. Any assessment levied as provided in this Subpart is a personal debt11
of each person so assessed and shall be due and payable to the secretary. If any12
assessed person fails to pay any assessment, the secretary may file a petition13
against the person in a state court of competent jurisdiction for the collection14
of the assessment. Failure to pay the assessment shall constitute a violation of15
an assessed hotel's license to operate under the laws of the state of Louisiana16
and the city of New Orleans, and the city shall have the right to suspend or17
revoke any such license on grounds of arrearage of three months or more in18
payments of the assessment.19
G. If any assessed hotel that is duly assessed pursuant to this Subpart20
fails to pay to the secretary the assessed amount by the due date, the secretary21
may add to the unpaid assessment an amount not to exceed ten percent of the22
unpaid assessment for the cost of enforcing the collection of the unpaid23
assessment. In addition to payment for the cost of collection, the assessed hotel24
shall pay to the secretary a penalty equivalent to the penalties prescribed by law25
with respect to non-compliance with laws relating to collection and remittance26
of sales and use taxes, including R.S. 47:306, 1602, 1604, 1604.1, 1604.2 and27
1606. Such fees and penalties shall not be imposed upon any assessed hotel28
which has delivered a notice of appeal of the assessment to the secretary in29 SB NO. 473
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accordance with this Subpart until after a final determination on such appeal.1
H. The proceeds of assessments shall be applied by the board first to2
payment or provision of payment of the costs of referendums, collection3
expenses incurred by the secretary and other expenses of the district. The4
remaining proceeds of any assessment up to one and one-half percent (1.5%) of5
gross hotel room sales receipts per assessed hotel shall be delivered by the board6
monthly pursuant to a cooperative endeavor agreement, one-half to the New7
Orleans Tourism Marketing Corporation and one-half to the New Orleans8
Convention and Visitors Bureau, to be applied to expenditures for sales,9
marketing, public relations and promotion of the hospitality industry in the10
district. Any assessment yielding in excess of one and one-half percent (1.5%)11
of gross hotel room sales receipts per assessed hotel may be utilized by the12
board under a cooperative endeavor agreement with the city for capital13
improvements on infrastructure, lighting, signage, street or sidewalk14
development or repair or other capital expenditures in the hospitality zone at15
the discretion of the board. In the absence of a cooperative endeavor agreement16
with the city relating to such projects or priorities, those remaining or17
additional avails may be allocated equally to the New Orleans Convention and18
Visitors Bureau or the New Orleans Tourism Marketing Corporation for19
destination marketing to be governed by cooperative endeavor agreement with20
the board.21
§130.558. Referendums22
A. Any assessment levied pursuant to this Subpart must be ratified by23
a vote of the assessed hotels in a referendum conducted in accordance with this24
Section. A referendum of all assessed hotels shall be called by the secretary on25
August 31, 2012, and every six years thereafter for the purpose of ratifying any26
proposed new assessment and the continuance or discontinuance of any existing27
assessment. The referendum shall be conducted by written ballot in accordance28
with this Section. In any referendum, each assessed hotel shall have a number29 SB NO. 473
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of votes equal to the number of its hotel rooms. A hotel shall not be eligible to1
vote unless it has paid all assessments and fines outstanding as of a record date2
established by the secretary. In any referendum, sixty percent of the votes cast3
shall be required to approve or ratify any proposed action.4
B. Upon receipt of the resolution required by R.S. 33:130.557(C) of this5
Subpart, the secretary shall establish a referendum period not to exceed sixty6
days. The secretary shall establish a list of hotels to be assessed and the amount7
of the assessment owed by each. The secretary shall mail a notice of referendum8
to each assessed hotel setting forth a description of any assessment, the amount9
of any assessment, any other matters to be voted on in accordance with the10
resolution and the record date and referendum period applicable to the11
referendum. The secretary shall enclose a ballot for voting purposes in the12
notice of referendum. Ballots may be delivered to the secretary during the13
referendum period. If the secretary later determines that the referendum14
period so established does not provide sufficient time for the balloting, the15
secretary may extend the referendum period not more than fifteen additional16
days. At the close of the referendum period, the secretary shall count and17
tabulate the ballots received during the referendum period. A notice of the18
results of the referendum shall be mailed by the secretary to the board and the19
assessed hotels.20
C. If the board fails to send the required resolution to the secretary21
before the date set for a referendum in R.S. 33:130.558(A) of this Subpart, then22
the secretary may proceed, on his own initiative, to call a referendum on the23
continuance or discontinuance of any then-existing assessment.24
D. Referendum Costs. The costs of the initial referendum shall be25
provided by private funding. In the event that the initial referendum fails in the26
first attempt at passage, subsequent attempts at passage of the initial27
referendum shall be permitted. In the event that the initial referendum passes,28
whether on the first attempt at passage or a subsequent attempt at passage, the29 SB NO. 473
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private funders shall be reimbursed for all of their respective initial referendum1
costs from assessments as received. The ongoing referendum costs shall be paid2
by the district.3
§130.559. Civil penalties for false information4
Any person who files false information concerning an assessment is5
civilly liable in an amount of not more than ten thousand dollars in addition to6
any amount owed as the assessment.7
§130.560. Deficiency notice8
A. When the secretary makes a determination that an assessed hotel or9
other person is deficient as to the payment of an assessment levied pursuant to10
this Subpart, the secretary may determine the amount of the deficiency,11
including any applicable penalty, as provided in this Subpart. After giving12
notice that a deficiency determination is proposed and an opportunity for the13
deficient party to file a report or provide supplemental information is provided,14
the secretary may make one or more deficiency determinations of the amount15
due for any reporting period based on information in the secretary's possession.16
B. The secretary shall give notice of the proposed deficiency17
determination by mailing a copy of the deficiency to the assessed hotel or person18
at the current address for that business on file with the district. The giving of19
notice is complete at the time of deposit in the United States mail. In lieu of20
mailing, a notice may be served personally by delivering it to the person to be21
served. Notice of a deficiency determination shall include a payment due date.22
C. Except in the case of fraud or failure to file required information, a23
notice of a deficiency determination shall be given within four years of the24
accrual of the deficiency. When an assessed hotel or other person has25
discontinued its operation, a deficiency determination, and notice mailed, may26
be made at anytime thereafter as to the liability arising out of the operation of27
its business.28
D. The person against whom a deficiency determination is made may29 SB NO. 473
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petition the secretary for redetermination within thirty days after the serving1
of the notice of deficiency determination. If a petition is not filed within thirty2
days, the deficiency determination shall become final.3
E. A petition for redetermination shall be in writing, state the specific4
grounds upon which it is based, and be supported by applicable records and5
declarations under penalty of perjury that the information supporting the6
petition is accurate and complete. If a petition for redetermination is duly filed,7
the secretary shall reconsider the deficiency determination and may grant a8
hearing thereon. The secretary shall, as soon as practicable, make an order on9
redetermination, which shall become final thirty days after service of notice of10
the order of redetermination upon the petitioner. The notice of the order shall11
be served in the same manner as the notice of the original deficiency12
determination.13
F. If any amount required to be paid pursuant to a deficiency14
determination or redetermination is not paid within the time specified in the15
notice thereof, the secretary may, within four years thereafter, file in the civil16
district court for the parish of Orleans a certificate specifying the amount17
required to be paid, the name and address of the person liable as it appears on18
the records of the secretary, and a request that judgment be entered against the19
person in that amount thirty days after the filing. Notice of the filing shall be20
given in the same manner as for the notice of deficiency determination. The21
court shall enter a judgment in conformance with the secretary's certificate22
thirty days after its filing, unless a petition for judicial review has been filed23
within the thirty-day period.24
G. An abstract of the judgment, or a copy thereof, may be filed with the25
recorder of mortgages of any parish. From the time of filing of the judgment,26
the amount of the judgment constitutes a lien upon all of the property in the27
parish owned by the judgment debtor. The lien has the force, effect and28
priority of a judgment lien and shall continue for ten years from the date of the29 SB NO. 473
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judgment, or such longer period if reinscribed in accordance with applicable1
law, unless sooner released or otherwise discharged. The lien imposed by this2
Section is not valid insofar as personal property is concerned against a3
purchaser of value without actual knowledge of the lien.4
H. Execution shall issue upon the judgment upon request of the secretary5
in the same manner as execution may issue upon other judgments, and sales6
shall be held under execution as prescribed in the Code of Civil Procedure.7
I. The person named in a notice of deficiency determination or8
redetermination may, within thirty days of the notice of filing with the court,9
file an action for judicial review thereof, as provided herein, in the civil district10
court for the parish of Orleans. As a condition of staying entry of judgment or11
granting other relief, the court shall require the filing of a corporate surety12
bond with the secretary in the amount of the deficiency stated in the certificate.13
In any court proceeding, the certificate of the secretary determining the14
deficiency shall be prima facie evidence of the fee and the amount due and15
unpaid.16
J. The provisions of this Section are supplemental to any other17
procedures for collection and imposition of fees and penalties provided by this18
Subpart.19
K. In lieu of proceeding pursuant to this Section, the secretary may file20
a petition for collection of unpaid assessments as provided by law.21
§130.560.1. False reports22
It is a violation of this Subpart for any person to willfully render or23
furnish a false or fraudulent report, statement, or record that is required by the24
secretary pursuant to any provision of this Subpart.25
§130.560.2. Costs of enforcement proceeding26
The costs incurred by the secretary, board or district in any suit brought27
by the secretary to enforce any provision of this Subpart shall be paid or28
reimbursed by the defendant in the event the secretary prevails in the action.29 SB NO. 473
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Any money that is recovered shall reimburse the account or accounts used to1
pay the costs.2
§130.560.3. Secretary's collection responsibilities3
A. Upon approval of an assessment by referendum, the secretary shall4
mail an assessment bill to each assessed hotel stating the amount and type of5
such assessment. The secretary shall collect all assessments levied pursuant to6
this Subpart from all assessed hotels monthly in connection with its collection7
of local and state sales and use taxes applicable to the occupancy of hotel rooms,8
and in collecting the assessment the secretary may exercise the police powers9
and bring enforcement actions. The secretary may stagger the assessment10
collection throughout the year, and charge assessed hotels a prorated amount11
of an assessment because of the staggered assessment period. The board12
records kept by the secretary, any assessment bill and related documentation13
evidencing an assessment levied pursuant to this Subpart shall not be public14
records or otherwise subject to the Public Records Law under Chapter 1 of15
Title 44 of the Louisiana Revised Statutes of 1950. The secretary shall not16
disclose the amount of the assessment levied upon any assessed hotel, or the17
result of the votes of any assessed hotel, except as part of such assessed hotel's18
assessment notice or an action to collect such assessment.19
B. Funds collected by the secretary shall be deposited into a deposit or20
other account of the district. This account shall not be an account of the state21
government.22
C. Any costs relating to the collection of assessments incurred by the23
state shall be reimbursed by the district from the proceeds of the assessment.24
§130.560.4. Liberal construction25
This Subpart, being necessary for the welfare of the state, the city, the26
parish and its residents, shall be liberally construed to effect the purposes27
thereof.28
§130.560.5. Severability29 SB NO. 473
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The provisions of this Subpart are severable. It is intended that if any1
provision of this Subpart should be adjudged invalid or unenforceable, then2
such provision shall be ineffective to the extent of such invalidity or3
unenforceability without invalidating the remaining provisions of this Subpart.4
Section 2. This Act shall become effective upon signature by the governor or, if not5
signed by the governor, upon expiration of the time for bills to become law without signature6
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If7
vetoed by the governor and subsequently approved by the legislature, this Act shall become8
effective on the day following such approval.9
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Proposed law creates the New Orleans Hotel Tourism District in the city of New Orleans
comprised of all the property within the parish of Orleans as a political subdivision of the
state granted all of the rights, powers, privileges and immunities accorded by law and the
Constitution of Louisiana to such political subdivisions of the state, subject to the limitations
provided in the proposed law. The district is created for the purpose of providing for the
organized and cooperative collection and use of funds through public-private partnership to
market and promote the district as a destination and to provide for increased economic
activity within the hospitality industry in the district, including increased number of visitors,
hotel occupancy, food, beverage and other retail sales, tourism, including cultural and family
tourism, job creation and other economic development in the district.
Proposed law authorizes the district to levy assessments:
1. For destination marketing or hospitality zone public improvements against assessed
hotels in such amounts as are approved by the board of commissioners (see below)
and ratified by a vote of the assessed hotels in a referendum conducted in accordance
with the proposed law.
The annual assessments either individually or in the aggregate may not yield an
amount in excess of 1.75% of gross hotel room sales receipts of an assessed hotel.
"Hospitality zone" is defined as all territories within the boundaries of Faubourg
Marigny, French Quarter, the Central Business District, the Warehouse District,
Convention Center District, Louisiana Sports and Entertainment District, any
contiguous area between the boundaries of any of those territories and the
Mississippi River and any other contiguous area formally designated by the mayor
of New Orleans as part of the hospitality zone.
"Assessed hotel" means a person operating a hotel and required to pay an assessment
pursuant to the proposed law, and until the first assessment is levied, any person
operating a hotel authorized to vote for the initial referendum.
"Referendum" means any vote by assessed hotels by mailed ballot on measures
proposed by the district pursuant to resolution of the board in accordance with the SB NO. 473
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provisions of the proposed law.
2. With respect to charges for parking by overnight guests of hotels in the hospitality
zone that are reflected on the hotel folio or other itemization of charges furnished to
guests. The assessment must not take effect until 45 days after its enactment and the
New Orleans City Council may by the affirmative vote of a majority of its members
taken at any time within 30 days of its enactment rescind the assessment.
Proposed law provides the proceeds of assessments are to be applied by the board:
1. First, to payment or provision of payment of the costs of referendums, collection
expenses incurred by the secretary of DOR, and other expenses of the district.
2. The remaining proceeds of any assessment up to 1.5% of gross hotel room sales
receipts per assessed hotel must be delivered by the board monthly pursuant to a
cooperative endeavor agreement, one-half to the New Orleans Tourism Marketing
Corporation and one-half to the New Orleans Convention and Visitors Bureau, to be
applied to expenditures for sales, marketing, public relations and promotion of the
hospitality industry in the district.
3. Any assessment yielding in excess of 1.5% of gross hotel room sales receipts per
assessed hotel may be utilized by the board under a cooperative endeavor agreement
with the city for capital improvements on infrastructure, lighting, signage, street or
sidewalk development or repair or other capital expenditures in the hospitality zone
at the discretion of the board. In the absence of a cooperative endeavor agreement
with the city relating to such projects or priorities, those remaining or additional
avails may be allocated equally to the New Orleans Convention and Visitors Bureau
or the New Orleans Tourism Marketing Corporation for destination marketing to be
governed by cooperative endeavor agreement with the board.
Proposed law authorizes an assessed hotel at its discretion to charge some or all of the
assessment on customer folios if the assessment is separately identified or itemized on the
folio or other similar document provided to the customer. Assessments passed on to
customers are not part of gross receipts or gross revenue for any purpose, including the
calculation of hotel occupancy taxes and are not part of income pursuant to any lease;
provided that such assessments that are passed on to customers shall be included in gross
receipts of assessed hotels for purposes of income and franchise taxes.
Proposed law requires any assessment levied to be ratified by a 60% of the votes of the
assessed hotels by written ballot in a referendum. Each assessed hotel has a number of votes
equal to the number of its hotel rooms, but is not eligible to vote unless it has paid all
assessments and fines outstanding as of a record date established by the secretary.
A referendum of all assessed hotels must be called by the secretary of DOR on August 31,
2012, and every 6 years thereafter for the purpose of ratifying any proposed new assessment
and the continuance or discontinuance of any existing assessment. Upon receipt of the
resolution the secretary must establish a referendum period not to exceed 60 days, unless the
secretary determines that the referendum period does not provide sufficient time for the
balloting, then she may extend the period not more than 15 additional days. The secretary
must establish a list of hotels to be assessed, the amount of the assessment owed by each,
and must mail a notice of referendum to each setting forth a description of any assessment,
the amount of any assessment, any other matters to be voted on in accordance with the
resolution. The secretary must enclose a ballot for voting purposes. At the close of the
referendum period, the secretary counts the ballots received, mails a notice of results to the
board and the assessed hotels.
The costs of the initial referendum are required to be provided by private funding. In the
event that the initial referendum fails in the first attempt at passage, subsequent attempts at SB NO. 473
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passage of the initial referendum shall be permitted. In the event that the initial referendum
passes, whether on the first attempt at passage or a subsequent attempt at passage, the private
funders shall be reimbursed for all of their respective initial referendum costs from
assessments as received. The ongoing referendum costs shall be paid by the district.
Proposed law requires the district to be governed by a board of commissioners comprised
of the individuals who are serving as members of the board of directors of the Greater New
Orleans Hotel and Lodging Association, who serve ex officio and have full voting rights.
The members serve without salary or per diem, but the board is authorized to reimburse any
member for reasonable, actual and necessary expenses incurred in the performance of his
or her duties.
The board elects a chair from among its members and may also elect from among its
members a secretary, treasurer and such other board officers as it deems appropriate.
A majority of the board constitutes a quorum for the transaction of business. All meetings
are public meetings subject to the provisions of R.S. 42:14. The domicile of the board is to
be established by the board at a location within the district. The official journal of the
district is the official journal of the city of New Orleans.
Proposed law provides that all administrative duties requiring staff assistance to the board
must be furnished at the option of the board, from the personnel of the Greater New Orleans
Hotel and Lodging Association, Inc., the New Orleans Convention and Visitors Bureau or
the New Orleans Tourism Marketing Corporation.
Proposed law provides that the district acting by and through its board may exercise all
powers of a political subdivision necessary or convenient for the carrying out of its objects
and purposes, including but not limited to the following:
1. All the usual powers given to political subdivisions in legislation, such as to: sue and
be sued; acquire property; enter into contracts, mortgages, and encumbrances;
require and issue licenses ; regulate the imposition of fees and rentals charged by the
district for its facilities and services rendered by it; appoint agents and independent
contractors, prescribe their duties, and fix their compensation.
2. To enter into cooperative endeavor agreements to accomplish the purposes of the
district with any other party, public or private.
Proposed law authorizes an assessed hotel to appeal an assessment to the secretary of the
Department of Revenue DOR by written notice of appeal supported by substantial evidence
submitted to the secretary under penalty of perjury by affidavit or declaration. However, the
assessed hotel must pay the assessments levied under protest pending the appeal.
If the assessed hotel is at fault for the assessment error, the secretary may impose a fee for
reasonable costs incurred by the secretary in correcting the assessment against the assessed
hotel as a condition of correcting the assessment.
Any assessment is a personal debt of each person so assessed and is due and payable to the
secretary of DOR. If any assessed person fails to pay any assessment, the secretary may file
a petition against the person in a state court for the collection of the assessment. Failure to
pay the assessment constitutes a violation of an assessed hotel's license to operate under the
laws of the state of Louisiana and the city of New Orleans, and the city has the right to
suspend or revoke the license on grounds of arrearage of three months or more in payments
of the assessment.
Failure to pay an assessment by the due date authorizes the secretary of DOR to add to the
unpaid assessment an amount not to exceed 10% of the unpaid assessment for the cost of SB NO. 473
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enforcing the collection of the unpaid assessment. In addition, the assessed hotel must pay
to the secretary a penalty equivalent to the penalties prescribed by law with respect to
non-compliance with laws relating to collection and remittance of sales and use taxes,
including R.S. 47:306, 1602, 1604, 1604.1, 1604.2 and 1606.
Proposed law provides that the secretary shall give notice of a proposed deficiency
determination by mailing a copy of the deficiency to the assessed hotel or person at the
current address for that business on file with the district or may be served personally by
delivering it to the person to be served. Except in the case of fraud or failure to file required
information, a notice of a deficiency determination must be given within four years of the
accrual of the deficiency. When an assessed hotel or other person has discontinued its
operation, a deficiency determination, and notice mailed, may be made at anytime thereafter
as to the liability arising out of the operation of its business.
The person against whom a deficiency determination is made may petition the secretary for
redetermination within thirty days after the serving of the notice of deficiency determination.
If a petition is not filed within thirty days, the deficiency determination shall become final.
If a petition for redetermination is duly filed, the secretary must reconsider the deficiency
determination and may grant a hearing thereon. The secretary must, as soon as practicable,
make an order on redetermination, which shall become final 30 days after service of notice
of the order of redetermination upon the petitioner. The notice of the order shall be served
in the same manner as the notice of the original deficiency determination.
If any amount required to be paid pursuant to a deficiency determination or redetermination
is not paid within the time specified in the notice, the secretary may, within four years
thereafter, file in the civil district court for the parish of Orleans a certificate specifying the
amount required to be paid, the name and address of the person liable as it appears on the
records of the secretary, and a request that judgment be entered against the person in that
amount thirty days after the filing. Notice of the filing shall be given in the same manner as
for the notice of deficiency determination. The court shall enter a judgment in conformance
with the secretary's certificate 30 days after its filing, unless a petition for judicial review has
been filed within the 30-day period.
An abstract of the judgment, or a copy thereof, may be filed with the recorder of mortgages
of any parish. From the time of filing of the judgment, the amount of the judgment
constitutes a lien upon all of the property in the parish owned by the judgment debtor. The
lien has the force, effect and priority of a judgment lien and shall continue for 10 years from
the date of the judgment, or such longer period if reinscribed in accordance with applicable
law, unless sooner released or otherwise discharged. The lien imposed by proposed law is
not valid insofar as personal property is concerned against a purchaser of value without
actual knowledge of the lien.
Execution shall issue upon the judgment upon request of the secretary of DOR in the same
manner as execution may issue upon other judgments, and sales shall be held under
execution as prescribed in the Code of Civil Procedure.
The person named in a notice of deficiency determination or redetermination may, within
30 days of the notice of filing with the court, file an action for judicial review thereof, as
provided herein, in the civil district court for the parish of Orleans. As a condition of staying
entry of judgment or granting other relief, the court shall require the filing of a corporate
surety bond with the secretary in the amount of the deficiency stated in the certificate. In any
court proceeding, the certificate of the secretary determining the deficiency shall be prima
facie evidence of the fee and the amount due and unpaid.
Proposed law, in lieu of the above, authorizes the secretary of DOR also to file a petition for
collection of unpaid assessments as provided by law.
Proposed law requires a defendant to reimburse the secretary in the event she prevails in the SB NO. 473
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action. Any money that is recovered shall reimburse the account or accounts used to pay the
costs.
Proposed law provides that it is a violation of the proposed law for any person to willfully
render or furnish a false or fraudulent report, statement, or record that is required by the
secretary. Any person who files false information concerning an assessment is civilly liable
in an amount of not more than $10,000 in addition to any amount owed as the assessment.
Proposed law is to be liberally construed to effect its purposes and the provisions are
severable.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 33:130.551 - 130.560.5)