SLS 12RS-311 ORIGINAL Page 1 of 16 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2012 SENATE BILL NO. 573 BY SENATORS MURRAY, ALARIO AND MORRELL AND REPRESENTATIVE LEGER SPECIA L DISTRICTS. Creates the New Orleans Hospitality and Entertainment District. (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 130.560.2, relative to economic3 and community development in Orleans Parish; to create the New Orleans4 Hospitality and Entertainment District, a political subdivision of the State of5 Louisiana; to provide for the boundaries of the district; to provide for the governance6 of the district; to provide for the authority, powers, duties, and functions of the7 governing body of the district; to allow for the levy and collection of taxes and8 special assessments within the district; to provide for the authority to create9 subdistricts within the district; to authorize the district to issue and sell bonds; to10 provide for the duration of the district; to allow the governing body of the district to11 enter into cooperative endeavor agreements; and to provide for related matters.12 Notice of intention to introduce this Act has been published.13 Be it enacted by the Legislature of Louisiana:14 Section 1. Subpart B-28 of Part IV of Chapter 1 of Title 33 of the Louisiana Revised15 Statutes of 1950, comprised of R.S. 33:130.551 through 130.560.2, is hereby enacted to read16 as follows:17 SB NO. 573 SLS 12RS-311 ORIGINAL Page 2 of 16 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SUBPART B. NEW ORLEANS HOSPITALITY AND1 ENTERTAINMENT DISTRICT2 §130.551. Title3 The provisions of this Subpart shall hereafter be known as the "New4 Orleans Hospitality and Entertainment District Act".5 §130.552. New Orleans Hospitality and Entertainment District; creation;6 territorial jurisdiction7 A. There is hereby created in the city of New Orleans, referred to in this8 Subpart as the "city," the New Orleans Hospitality and Entertainment District,9 a body politic and corporate of the State, referred to in this Subpart as the10 "district," which shall be comprised of all the property within the Parish of11 Orleans.12 B. The district shall be a political subdivision of the state as defined in13 Article VI, Section 44 of the Constitution of Louisiana. Pursuant to Article VI,14 Sections 19 and 21 of the Constitution of Louisiana, the district is hereby15 granted all of the rights, powers, privileges and immunities accorded by law and16 the Constitution of Louisiana to political subdivisions of the state, subject to the17 limitations provided in this Subpart.18 §130.553. Definitions19 As used in this Subpart:20 (1) "Board" means the board of commissioners of the New Orleans21 Hospitality and Entertainment District.22 (2) "City" means the City of New Orleans.23 (3) "District" means the New Orleans Hospitality and Entertainment24 District, created as a body politic and corporate and political subdivision of the25 State of Louisiana comprised of all of the territory in the parish of Orleans.26 (4) "Hospitality zone" means all territories within the boundaries of27 Faubourg Marigny, French Quarter, the Central Business District, the28 Warehouse District, Convention Center District, Louisiana Sports and29 SB NO. 573 SLS 12RS-311 ORIGINAL Page 3 of 16 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Entertainment District, any contiguous area between the boundaries of any of1 the foregoing and the Mississippi River and any other contiguous area formally2 designated by the mayor of New Orleans as part of the hospitality zone.3 (5) "Hotel" means any establishment engaged in the business of4 furnishing or providing rooms intended or designed for dwelling, lodging, or5 sleeping purposes to transient guests where such establishment consists of ten6 or more guest rooms but does not include any hospital, convalescent or nursing7 home or sanitarium, or any hotel-like facility operated by or in connection with8 a hospital or medical clinic providing rooms exclusively for patients and their9 families.10 (6) "Mayor" means the mayor of the City of New Orleans.11 §130.554. Purpose12 The district is created to provide for cooperative economic and13 community development among the district, the city, the state, the organizations14 listed in Section 130.555(A) of this Subpart and the owners of property in the15 hospitality zone, to enhance the development of and improvement to the16 properties within the hospitality zone, to promote tourism within the hospitality17 zone, to provide enhanced public safety and sanitation within the zone, to18 provide for signage and lighting within the hospitality zone, to provide for19 property renewal and repair within the zone and to expand the entertainment20 and leisure activities and facilities within the hospitality zone.21 §130.555. Governance22 A. In order to effect the purposes of the district, the district shall be23 administered and governed by a board of commissioners, referred to in this24 Subpart as the "board," composed of ten members appointed and qualified as25 follows: 26 (1) The chair or holder of equivalent office of each of the Greater New27 Orleans Hotel and Lodging Association, Inc.; the New Orleans Chapter of the28 Louisiana Restaurant Association, Inc.; the New Orleans Convention and29 SB NO. 573 SLS 12RS-311 ORIGINAL Page 4 of 16 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Visitors Bureau; the Louisiana Stadium and Exposition District; the New1 Orleans Tourism Marketing Corporation; and the Ernest N. Morial-New2 Orleans Exhibition Hall Authority, or the successor in function of each, as3 applicable, who shall serve ex officio and shall have full voting rights on all4 matters coming before the board.5 (2) Four residents of Orleans Parish appointed by the mayor, all of6 whom shall be of the full age of majority and registered voters of Orleans Parish7 and none of whom may hold local, municipal, parish, state or federal elective8 office or any local, municipal, parish, state, or federal non-elective office or9 employment, and all of whom shall have substantial business interests related10 directly to tourism in the hospitality zone, either as owners or operators of11 hotels or other tourism or hospitality businesses. The members so appointed by12 the mayor shall serve at the pleasure of the mayor and shall have full voting13 rights on all matters coming before the board.14 B. The members of the board shall serve without salary or per diem.15 The board may reimburse any member for reasonable, actual and necessary16 expenses incurred in the performance of his or her duties pursuant to this17 Subpart.18 C. The mayor shall appoint from among the ex officio members of the19 board a chair of the board to serve for a term of six years and until a successor20 is designated. Any vacancy in the office of chair during the original six-year21 term shall be filled by the mayor from among the ex officio members of the22 board. After the expiration of the original six-year term, the board shall elect23 a chair from among its members. The board may elect from among its24 members a secretary, treasurer and such other board officers as it deems25 appropriate.26 D. The board shall meet in regular session once each quarter and shall27 also meet in special session as often as the chairman of the board convenes the28 board or upon the written request of three members. A majority of the29 SB NO. 573 SLS 12RS-311 ORIGINAL Page 5 of 16 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. members of the board shall constitute a quorum for the transaction of business.1 All such meetings shall be public meetings subject to the provisions of R.S.2 42:14. The board shall keep minutes of all meetings and shall make them3 available for inspection through the board's secretary or secretary-treasurer,4 who shall also maintain the minute books and archives of the district. The5 monies, funds, and accounts of the district shall be in the official custody of the6 board.7 E. The domicile of the board shall be established by the board at a8 location within the district. The official journal of the district shall be the9 official journal of the City.10 F. All administrative duties requiring staff assistance to the board shall11 be furnished from the personnel of the New Orleans Convention and Visitors12 Bureau and New Orleans Tourism Marketing Corporation.13 §130.556. Rights and Powers14 The district, acting by and through its board, shall have and exercise all15 powers of a political subdivision necessary or convenient for the carrying out16 of its objects and purposes, including but not limited to the following in addition17 to the other rights and powers set out in this Subpart:18 (1) To sue and be sued.19 (2) To adopt, use, and alter at will a corporate seal.20 (3) To acquire by gift, grant, purchase, or otherwise all property,21 including rights of way; to hold and use any franchise or property, real,22 personal, or mixed, tangible or intangible, or any interest therein, necessary or23 desirable for carrying out the objects and purposes of the district.24 (4) To enter into contracts for the purchase, lease, acquisition, finance,25 construction, and improvement of works and facilities necessary in connection26 with the purposes of the district, and to mortgage and otherwise encumber its27 properties and enter into leases and other agreements on terms the board28 approves.29 SB NO. 573 SLS 12RS-311 ORIGINAL Page 6 of 16 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (5) To require and issue licenses with respect to its properties and1 facilities.2 (6) To regulate the imposition of fees and rentals charged by the district3 for its facilities and services rendered by it.4 (7) To appoint agents and independent contractors, prescribe their5 duties, and fix their compensation.6 (8) To enter into cooperative endeavor agreements to accomplish the7 purposes of the district with any other party, public or private, including but8 not limited to the State of Louisiana and its agencies, the City, the Louisiana9 Stadium and Exposition District, the Ernest N. Morial-New Orleans Exhibition10 Hall Authority, the New Orleans Convention and Visitors Bureau, the New11 Orleans Tourism Marketing Corporation, and any other recipient of the avails12 of a tax imposed on the sale of services as defined in R.S. 47:301(14)(a) or13 otherwise on the occupancy of hotel rooms within the district.14 (9) Except for the tax authority provided in R.S. 33:9038.39, to exercise15 any and all of the other powers granted to an economic development district as16 if the district were an economic development district established pursuant to17 Part 2 of Chapter 27 of Title 33 of the Louisiana Revised Statutes of 1950,18 including but not limited to the powers of tax increment financing pursuant to19 R.S. 33:9038.33 and 9038.34, provided that any such powers exercised by the20 district shall be subject to the provisions of Part 2 of Chapter 27 of Title 33 of21 the Louisiana Revised Statutes of 1950.22 §130.557. Applicability of Public Bid Laws23 Any purchases or contracts made or entered into by the district shall be24 in accordance with the public bid laws of this State; provided, however, that25 until the date of the 2013 Super Bowl XLVII, such public bid laws shall not be26 applicable to contracts entered into or purchases made by the district and the27 district shall endeavor to solicit at least two proposals for all such contracts and28 purchases and, whenever possible, to obtain the best price available as known29 SB NO. 573 SLS 12RS-311 ORIGINAL Page 7 of 16 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. to the district, considering the quantities required and the quality desired at the1 time available for the delivery, the sources of supply and other commercially2 reasonable considerations.3 §130.558. Levy of Taxes4 A. It is expressly provided that any taxes levied by the district, or any5 subdistrict created by the district, may exceed the limitation set forth by Article6 VI, Section 29(A) of the Constitution of Louisiana and shall be imposed,7 collected and enforced subject to the terms of the resolution imposing the tax8 and the provisions of Chapter 2 of Subtitle II of Chapter 47 of the Louisiana9 Revised Statutes of 1950.10 B. The district is hereby authorized and empowered to levy a tax on the11 occupancy of hotel rooms in the district in an aggregate amount not to exceed12 one and three-quarters percent (1.75%) at any time. The avails any tax so levied13 up to one and one half percent (1.50%) shall be dedicated 50 percent to the New14 Orleans Tourism Marketing Corporation for the advertising, marketing and15 promotion of the hospitality industry in the district and 50 percent to the New16 Orleans Convention and Visitors Bureau for sales, marketing, public relations17 and promotion of the hospitality industry in the district. The remaining avails18 of any tax levied under this Subsection shall be dedicated to the district for use19 in furtherance of its purposes.20 C. The district is hereby further authorized and empowered to levy a tax21 on the sale at retail of food and beverages in the hospitality zone for22 consumption on or off the premises in an aggregate amount not to exceed one23 fourth of one percent (0.25%) at any time. The avails of any tax so levied shall24 be dedicated to the district for use in the furtherance of its purposes.25 D. The district is hereby further authorized to levy a tax with respect to26 in-premises hotel parking and other fees and assessments on activities within27 the hospitality zone that, as a class, benefit directly from tourism or28 tourist-related activities; provided that any such tax, fee or assessment shall not29 SB NO. 573 SLS 12RS-311 ORIGINAL Page 8 of 16 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. take effect until forty-five days after its enactment and further provided that the1 New Orleans City Council may by the affirmative vote of a majority of its2 members taken at any time within 30 days of its enactment, rescind any such3 tax, fee or assessment. The avails of any tax, fee or assessment so levied shall4 be dedicated to the district for use in the furtherance of its purposes.5 E. Any taxes of any type to be levied by the district, district-wide or in6 any subdistrict created by the district, with respect to the occupancy of hotel7 rooms under authority of Subsection B of this Section or the sale of food and8 beverages under authority of Subsection C of this Section shall be levied only9 after the board has adopted an appropriate resolution giving notice of its10 intention to levy such taxes, which resolution shall include a general description11 of the taxes to be levied, and notice of this intention shall be published once a12 week for two weeks in the official journal of the district, the first publication to13 appear at least fourteen days before the public meeting of the board at which14 the board will meet in open and public session to hear any objections to the15 proposed taxes. The notice of intent so published shall state the date, time, and16 place of the public hearing. Such taxes may be levied only after the board has17 called a special election submitting the proposition for the levy of such taxes to18 the qualified electors of the district or subdistrict, as applicable, and the19 proposition has received the favorable vote of a majority of the electors voting20 in the election; however, in the event there are no qualified electors in the21 district or subdistrict, as applicable, as certified by the registrar of voters, no22 such election shall be required. The powers and rights conferred by this Section23 shall be in addition to the powers and rights conferred by any other general or24 special law. This Section does and shall be construed to provide a complete and25 additional method for the levy of any taxes, subject to the limitations of26 Subsection (F). No election, proceeding, notice, or approval shall be required for27 the levy of such taxes except as provided herein.28 F. Any tax levied under this section shall be in addition to all other taxes29 SB NO. 573 SLS 12RS-311 ORIGINAL Page 9 of 16 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. and shall be collected at the same time and in the same manner and pursuant1 to the practices and procedures set forth in the Uniform Local Sales Tax Code2 in Chapter 2-D of Subtitle II of Title 47 of the Louisiana Revised Statutes of3 1950.4 §130.559. Creation of Subdistricts5 The district may create subdistricts as provided in this Section. The6 district shall publish notice of its intent to create a subdistrict in the official7 journal of the district. At least ten days after publication of such notice in the8 official journal of the district, the board shall conduct a public hearing on the9 question of creating such subdistrict. Thereafter, the board may designate one10 or more areas within the boundaries of the district as a subdistrict of the11 district. Each subdistrict shall constitute a political subdivision of the state and12 shall be governed by the board. Each subdistrict shall have the same powers13 and purposes as the district and shall be given a name and designated as "New14 Orleans Hospitality and Entertainment District Subdistrict No. ___" or such15 other suitable name as the board may designate.16 §130.560. Bonds of the District17 A. The district, or any subdistrict created by the district, is hereby18 authorized and empowered to issue and sell from time to time bonds, notes,19 renewal notes, refunding bonds, interim certificates, certificates of indebtedness,20 certificates of participation, debentures, warrants, commercial paper, or other21 obligations or evidences of indebtedness to provide funds for and to fulfill and22 achieve its public purpose or corporate purposes, as set forth in this Subpart,23 including but not limited to the payment of all or a portion of the costs of a24 project, to provide amounts necessary for any corporate purposes, including25 necessary and incidental expenses in connection with the issuance of the26 obligations, the payment of principal and interest on the obligations of the27 district, the establishment of reserves to secure such obligations, and all other28 purposes and expenditures of the district incident to and necessary or29 SB NO. 573 SLS 12RS-311 ORIGINAL Page 10 of 16 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. convenient to carry out its public functions or corporate purposes, and any1 credit enhancement for said obligations.2 B. Except as may otherwise be provided by the board, all obligations3 issued by the district, or any subdistrict created by the district, shall be4 negotiable instruments and payable solely from the revenues of the district or5 subdistrict, as applicable, as determined by the board, or from any other6 sources whatsoever, that may be available to the district or subdistrict, as7 applicable, but shall not be secured by the full faith and credit of the state or the8 city.9 C. Obligations shall be authorized, issued, and sold by a resolution or10 resolutions of the board. Such bonds or obligations may be of such series, bear11 such date or dates, mature at such time or times, bear interest at such rate or12 rates, including variable, adjustable, or zero interest rates, be payable at such13 time or times, be in such denominations and in such form, carry such14 registration and exchangeability privileges, be payable at such place or places,15 be subject to such terms of redemption, and be entitled to such priorities on the16 income, revenue, and receipts of, or available to, the district or subdistrict, as17 applicable, as may be provided by the board in the resolution or resolutions18 providing for the issuance and sale of the bonds or obligations of the district.19 D. The obligations of the district, or any subdistrict created by the20 district, shall be signed by such officers of the board by either manual or21 facsimile signatures as shall be determined by resolution or resolutions of the22 board, and shall have impressed or imprinted thereon the seal of the district, or23 a facsimile thereof.24 E. Any obligations of the district, or any subdistrict created by the25 district, may be validly issued, sold, and delivered, notwithstanding that one or26 more of the officers of the board signing such obligations, or whose facsimile27 signature or signatures may be on the obligations, shall have ceased to be such28 officer of the board at the time such obligations shall actually have been29 SB NO. 573 SLS 12RS-311 ORIGINAL Page 11 of 16 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. delivered.1 F. Obligations of the district, or any subdistrict created by the district,2 may be sold at such price or prices, at public or private negotiated sale, in such3 manner and from time to time as may be determined by the district to be most4 beneficial, subject to approval of the State Bond Commission, and the district5 may pay all expenses, premiums, fees, or commissions, which it may deem6 necessary or advantageous in connection with the issuance and sale thereof.7 G. The board may authorize the establishment of a fund or funds for the8 creation of a debt service reserve, a renewal and replacement reserve, or such9 other funds or reserves as the board may approve with respect to the financing10 and operation of any project funded with the proceeds of such bonds and as11 may be authorized by any bond resolution, trust agreement, indenture of trust12 or similar instrument or agreement pursuant to the provisions of which the13 issuance of bonds or other obligations of the district or subdistrict may be14 authorized.15 H. Any cost, obligation, or expense incurred for any of the purposes or16 powers of the district specified in this Subpart shall be a part of the project17 costs and may be paid or reimbursed as such out of the proceeds of bonds or18 other obligations issued by the district or subdistrict.19 I. For a period of thirty days from the date of publication of the20 resolution authorizing the issuance of bonds hereunder, any persons in interest21 shall have the right to contest the legality of the resolution and the legality of the22 bond issue for any cause, after which time no one shall have any cause or right23 of action to contest the legality of said resolution or of the bonds authorized24 thereby for any cause whatsoever. If no suit, action, or proceeding is begun25 contesting the validity of the bond issue within the thirty days herein26 prescribed, the authority to issue the bonds and to provide for the payment27 thereof, and the legality thereof and all of the provisions of the resolution28 authorizing the issuance of the bonds shall be conclusively presumed, and no29 SB NO. 573 SLS 12RS-311 ORIGINAL Page 12 of 16 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. court shall have authority to inquire into such matters.1 J. Neither the members of the board nor any person executing the bonds2 shall be personally liable for the bonds or be subject to any personal liability by3 reason of the issuance thereof. However, the limitation of liability provided for4 in this Subsection shall not apply to any gross negligence or criminal negligence5 on the part of any member of the board or person executing the bonds.6 K. All obligations authorized to be issued by the district, or any7 subdistrict created by the district, pursuant to the provisions of this Subpart,8 together with interest thereof, income therefrom, and gain upon the sale thereof9 shall be exempt from all state and local taxes.10 L. The state and all public officers, any parish, municipality, or other11 subdivision or instrumentality of the state, any political subdivision, any bank,12 banker, trust company, savings bank and institution, building and loan13 association, savings and loan association, investment company or any person14 carrying on a banking or investment business, any insurance company or15 business, insurance association, and any person carrying on an insurance16 business, and any executor, administrator, curator, trustee, and other fiduciary,17 and any retirement system or pension fund may legally invest any funds18 belonging to them or within their control in any bonds or other obligations19 issued by the district, or any subdistrict created by the district, pursuant to the20 provisions of this Chapter, and such bonds or other obligations shall be21 authorized security for all public deposits. It is the purpose of this Subsection22 to authorize such persons, firms, corporations, associations, political23 subdivisions and officers, or other entities, public or private, to use any funds24 owned or controlled by them, including but not limited to sinking, insurance,25 investment, retirement, compensation, pension and trust funds, and funds held26 on deposit, for the purchase of any such bonds or other obligations of the27 district or subdistrict, and that any such bonds shall be authorized security for28 all public deposits. However, nothing contained in this Subsection with regard29 SB NO. 573 SLS 12RS-311 ORIGINAL Page 13 of 16 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. to legal investments or security for public deposits shall be construed as1 relieving any such person, firm, corporation, or other entity from any duty of2 exercising reasonable care in selecting securities.3 §130.560.1. Liberal Construction4 This Subpart, being necessary for the welfare of the state, the city-parish5 and its residents, shall be liberally construed to effect the purposes thereof.6 §130.560.2. Severability7 The provisions of this Subpart are severable. It is intended that if any8 provision of this Subpart should be adjudged invalid or unenforceable, then9 such provision shall be ineffective to the extent of such invalidity or10 unenforceability without invalidating the remaining provisions of this Subpart.11 Section 2. This Act shall become effective upon signature by the governor or, if not12 signed by the governor, upon expiration of the time for bills to become law without signature13 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If14 vetoed by the governor and subsequently approved by the legislature, this Act shall become15 effective on the day following such approval.16 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 Hospitality and Entertainment 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 to such political subdivisions of the state, subject to the limitations provided in the proposed law. The district is created to provide for cooperative economic and community development among the district, the city, the state, the organizations which have ex officio commissioners on the board of commissioners (see below) and the owners of property in the "hospitality zone", to do the following within the "hospitality zone": enhance the development of and improvement to the properties; promote tourism; provide enhanced public safety and sanitation; provide for signage and lighting; provide for property renewal and repair; and to expand entertainment and leisure activities and facilities. "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. The district is authorized to create subdistricts in one or more areas within the boundaries SB NO. 573 SLS 12RS-311 ORIGINAL Page 14 of 16 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. of the district which are also political subdivisions and are governed by the same board of commissioners that govern the district (see below). The district is required to publish notice of its intent to create a subdistrict in the official journal of the district and conduct a public hearing on the question of creating such subdistrict at least 10 days after publication. of such notice in the official journal of the district. Thereafter, the board may designate one or more areas within the boundaries of the district as a subdistrict of the district. Proposed law specifically authorizes the district to levy the following taxes, fees, or assessments district-wide or in subdistricts: 1. A tax on the occupancy of hotel rooms in the district in an aggregate amount not to exceed 1.75% at any time. "Hotel" is defined as any establishment engaged in the business of furnishing or providing rooms intended or designed for dwelling, lodging, or sleeping purposes to transient guests where such establishment consists of 10 or more guest rooms but does not include any hospital, convalescent or nursing home or sanitarium, or any hotel-like facility operated by or in connection with a hospital or medical clinic providing rooms exclusively for patients and their families. The proceeds from up to 1.5% of the 1.75% tax rate may are dedicated as follows: a. 50% to the New Orleans Tourism Marketing Corporation for the advertising, marketing and promotion of the hospitality industry in the district. b. 50% to the New Orleans Convention and Visitors Bureau for sales, marketing, public relations and promotion of the hospitality industry in the district. The remaining proceeds (from 0.25% of the tax rate) are dedicated to the district for use in furtherance of its purposes. 2. A tax on sale at retail of food and beverages in the "hospitality zone" for consumption on or off the premises in an aggregate amount not to exceed 0.25% at any time. The proceeds are dedicated to the district for use in the furtherance of its purposes. The hotel room occupancy tax and the tax on the sale of food and beverages may be levied only after the board has adopted an appropriate resolution giving notice of its intention to levy the taxes and notice of this intention is published once a week for two weeks in the official journal of the district, the first publication to appear at least 14 days before the public meeting of the board at which the board will meet in open and public session to hear any objections to the proposed taxes. The taxes may be levied only after the board has called a special election submitting the proposition for the levy of such taxes to the qualified electors of the district or subdistrict, as applicable, and the proposition has received the favorable vote of a majority of the electors voting in the election, unless there are no qualified electors in the district or subdistrict as certified by the registrar of voters, then no election is required. 3. A tax with respect to in-premises hotel parking and other fees and assessments on activities within the "hospitality zone" that, as a class, benefit directly from tourism or tourist-related activities. However, any such tax, fee or assessment does 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 any such tax, fee or assessment. The proceeds of any tax, fee or assessment are dedicated to the district for use in the furtherance of its purposes. Any tax levied must be collected at the same time and in the same manner and pursuant to the practices and procedures set forth in R.S. 47:301 through R.S. 47:318. SB NO. 573 SLS 12RS-311 ORIGINAL Page 15 of 16 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Proposed law requires the district to be governed by a board of commissioners of 10 members who serve ex officio and shall have full voting rights as follows: 1. The chair or holder of equivalent office of: The Greater New Orleans Hotel and Lodging Association, Inc. The New Orleans Chapter of the Louisiana Restaurant Association, Inc. The New Orleans Convention and Visitors Bureau. The Louisiana Stadium and Exposition District. The New Orleans Tourism Marketing Corporation. The Ernest N. Morial-New Orleans Exhibition Hall Authority. 2. Four residents of Orleans Parish appointed by the mayor, all of whom must be of the full age of majority and registered voters of Orleans Parish and none of whom may hold local, municipal, parish, state, or federal elective office or any local, municipal, parish, state or federal non-elective office or employment, and all of whom shall have substantial business interests related directly to tourism in the hospitality zone, either as owners or operators of hotels or other tourism or hospitality businesses. The members so appointed by the mayor serve at his pleasure 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 mayor must appoint from among the ex officio members a chair of the board to serve for a term of 6 years and until a successor is designated. Any vacancy is filled by the mayor from among the ex officio members of the board. After the expiration of the original 6-year term, the board elects a chair from among its members. The board may 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. Proposed law provides that all administrative duties requiring staff assistance to the board must be furnished from the personnel of the New Orleans Convention and Visitors Bureau and New Orleans Tourism Marketing Corporation. Proposed law provides that the district (or subdistricts), 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, including but not limited to the State of Louisiana and its agencies, the City, the Louisiana Stadium and Exposition SB NO. 573 SLS 12RS-311 ORIGINAL Page 16 of 16 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. District, the Ernest N. Morial-New Orleans Exhibition Hall Authority, the New Orleans Convention and Visitors Bureau, the New Orleans Tourism Marketing Corporation, and any other recipient of the avails of a tax imposed on the sale of services as defined in R.S. 47:301(14)(a) or otherwise on the occupancy of hotel rooms within the district. 3. To exercise the powers granted to an economic development district as if the district were an economic development district established pursuant to Part 2 of Chapter 27 of Title 33, including but not limited to the powers of TIF financing but excluding the power to levy taxes pursuant to R.S. 33:9038.39. 4. To issue and sell from time to time bonds, notes, and various other obligations or evidences of indebtedness with the usual procedures of, manner of, and limitations provided to entities on such issuance and sale set forth in detail in proposed law including requiring anyone contesting the legality of a resolution authorizing the issuance of bonds or of the bonds authorized to do so within 30 days from the date of publication of the resolution. 5. Any purchases or contracts made or entered into by the district are to be done in accordance with the public bid laws of the state. However, until the date of the 2013 Super Bowl XLVII, the public bid laws are not applicable to contracts entered into or purchases made by the district, but the district must endeavor to solicit at least two proposals for all such contracts and purchases and, whenever possible, to obtain the best price available as known to the district, considering the quantities required and the quality desired at the time available for the delivery, the sources of supply and other commercially reasonable considerations. 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 - 130.560.2)