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Regular Session, 2013
HOUSE BILL NO. 576
BY REPRESENTATIVE BROADWATER
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
DISTRICTS/TAXING: Creates a special taxing district to provide a supplemental means
of financing higher education
AN ACT1
To enact Chapter 23-A of Title 17 of the Louisiana Revised Statutes of 1950, to be2
comprised of R.S. 17:3111 through 3115, relative to special taxing districts; to3
establish the Higher Education Improvement District; to create and provide for the4
purpose and boundaries of the district; to provide for the governance of the district5
and for the authority, powers, duties, and functions of the governing authority of the6
district; to authorize the levy and collection of certain taxes within the district; to7
provide for certain requirements and limitations; to provide for the disposition and8
distribution of the avails of the tax collected in the district; to provide for9
effectiveness; and to provide for related matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. Chapter 23-A of Title 17 of the Louisiana Revised Statutes of 1950,12
comprised of R.S. 17:3111 through 3115, is hereby enacted to read as follows: 13
CHAPTER 23-A. HIGHER EDUCATION IMPROVEMENT DISTRICT14
§3111. Higher Education Improvement District; creation; boundaries; purpose15
A. Creation. Pursuant to the authority of Article VI, Section 19 of the16
Constitution of Louisiana, the Higher Education Improvement District, a special17
district and political subdivision of the state, referred to in this Section as the18
"district" is hereby created. The district shall have all of the powers and functions19 HLS 13RS-392 ORIGINAL
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of a political subdivision and with such further powers and functions as are set forth1
in this Chapter.2
B. Boundaries. The boundaries of the district shall be coterminous with the3
boundaries of the state of Louisiana.4
C. Term of Existence. The district shall have perpetual existence subject5
only to the repeal or amendment of this Section by the legislature.6
D. Purpose. (1) The district is created to aid each public postsecondary7
education institution under the management and supervision of the Board of8
Supervisors of Louisiana State University and Agricultural and Mechanical College,9
the Board of Supervisors of the Southern University and Agricultural and10
Mechanical College, the Board of Supervisors for the University of Louisiana11
System, and the Board of Supervisors of Community and Technical Colleges,12
including but not limited to law schools, medical schools, veterinarian schools, and13
any other professional schools, in establishing an additional revenue source to14
provide for the academic programs at such higher education institutions.15
(2) It is hereby determined that the creation of the district and the carrying16
out if its purpose is in all respects a public and governmental purpose for the17
improvement of the health, safety, welfare, education, comfort, and security of the18
people of the state, and that the stated purpose of the district is a public purpose and19
shall be liberally construed to effect such purpose. The district shall be performing20
an essential governmental function and meeting a public obligation in the exercise21
of the powers conferred upon the board of the district pursuant to the provisions of22
this Chapter.23
(3) The additional revenue source provided for in this Chapter shall not24
displace, replace, or supplant any existing means of finance in higher education25
required in accordance with the state constitution and any other laws of this state.26
Any reduction in means of financing from state general fund dollars shall result in27
a reduction of an equivalent amount of any tax obligation established pursuant to this28
Chapter.29 HLS 13RS-392 ORIGINAL
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§3112. Board of directors; membership; terms of office; vacancy;1
A.(1) In order to provide for the orderly development of the district and2
effectuation of the purposes of the district, the district shall be administered and3
governed by a board of directors. The board shall be composed of five members4
with the consent of the Senate, who are electors of the state. The members shall5
consist of one representative from each of the following: the Louisiana State6
University Board of Supervisors, the University of Louisiana System, the Southern7
University System, the Louisiana Community and Technical College System, and8
the Board of Regents.9
(2) A vacancy occurring prior to the expiration of a term shall be filled for10
the unexpired portion of the term within thirty days after the date on which the11
vacancy occurs by appointment by the governing body whose representative created12
the vacancy, with the consent of the Senate. Within twenty-four hours after being13
informed of a vacancy on the board, the chairman of the board or the officer14
exercising his duties shall notify the appropriate governing board by certified mail15
of the vacancy and the effective date of the vacancy.16
B. The terms of the members shall be for six years. Members shall serve17
until their successors are appointed and take office.18
C. A majority of the members shall constitute a quorum for the transaction19
of business and all official action of the board shall require the favorable vote of a20
majority of the members of the board. The board shall keep minutes of all meetings21
and shall make them available for inspection through the board's secretary. The22
minute books and archives of the district shall be maintained by the board's23
secretary. The monies, funds, and accounts of the district shall be in the official24
custody of the board.25
D. The board shall elect from its own members a president, vice-president,26
secretary, and treasurer, whose duties shall be common to such offices or as may be27
provided by bylaws adopted by the district. All meetings of the board shall be public28
meetings subject to the provisions of R.S. 42:11 et seq.29 HLS 13RS-392 ORIGINAL
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E. The domicile of the board shall be East Baton Rouge Parish.1
F. The board shall adopt bylaws and prescribe rules to govern its meetings.2
G. The members of the board shall serve without salary or per diem but shall3
be entitled to reimbursement for reasonable, actual, and necessary expenses incurred4
in the performance of their duties, which shall be paid by the governing body whom5
they represent.6
§3113. Rights and powers of the board7
The district, acting by and through its board, shall have and exercise all8
powers of a political subdivision and special district necessary or convenient for the9
carrying out of its objects and purposes, including, but not limited to the following:10
(1) To sue and be sued.11
(2) To adopt bylaws and rules and regulations.12
(3) To enter into contracts, agreements, or cooperative endeavors with the13
state, its political subdivisions or political corporations, or any public or private14
organization, person, firm, or corporation for the collection of the tax authorized to15
be levied according to the provisions of this Chapter.16
(4) To appoint or hire an executive director as it deems necessary for the17
purpose of carrying out its day-to-day work operations for convenience and18
effectiveness in the administration of its plans. The board may contract with19
consultants for services as it may require.20
(5) To establish such funds or accounts as are necessary for the conduct of21
the affairs of the district.22
§3114. Authority to levy tax; statewide approval23
A. In order to provide funds for the purposes of the district, subject to24
limitations and prohibitions of the Constitution of Louisiana, the district shall have25
the power to levy within the district up to five (5) mills of ad valorem taxes in26
addition to any other ad valorem taxes in existence or permitted to be in existence27
within the district. All taxes so authorized shall be imposed by ordinance adopted28
by the district, acting by and through its board of directors subject to approval of a29 HLS 13RS-392 ORIGINAL
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majority of the qualified electors residing within the boundaries of the district voting1
on the proposition at an election called for such purpose. The powers and rights2
conferred by this Section shall be in addition to the powers and rights conferred by3
any other general or special law. This Section does and shall be construed to provide4
a complete and additional method for the levy of an ad valorem tax.5
B. Contesting ordinance or resolution; time limit. Any ordinance or6
resolution adopted by the district authorizing the levy and collection of ad valorem7
taxes shall be published at least once in the official journal of the state and in the8
official journal of each parish within the district. For thirty days after the date of9
publication in a parish, any person in interest may contest the legality of the10
ordinance or resolution and of any provision therein made for the levy and collection11
of ad valorem taxes. After that time, no one shall have any cause of action to test the12
regularity, formality, legality, or effectiveness of the ordinance or resolution, and13
provision thereof for any cause whatever. Thereafter, it shall be conclusively14
presumed that every legal requirement for the levy and collection of ad valorem15
taxes, including all things pertaining to the authorizing thereof, has been complied16
with. No cause or might of action shall exist as to any of these matters after the17
thirty day period after publication.18
§3115. Use of tax proceeds; requirements; limitations19
A. If the district adopts an ordinance to levy an ad valorem tax within the20
boundaries of the district, and such proposition to levy the ad valorem tax is21
approved by a majority of the electors in a statewide election, the board may contract22
with or enter into agreements with the tax collector of each parish in order to provide23
for the efficient collection of the tax.24
B. The board shall establish an account wherein all proceeds of the tax shall25
be deposited. The monies in the account shall be distributed to each public26
postsecondary education institution under the management and supervision of the27
Board of Supervisors of Louisiana State University and Agricultural and Mechanical28
College, the Board of Supervisors of the Southern University and Agricultural and29 HLS 13RS-392 ORIGINAL
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Mechanical College, the Board of Supervisors for the University of Louisiana1
System, and the Board of Supervisors of Community and Technical Colleges,2
including but not limited to law schools, medical schools, veterinarian schools, and3
any other professional schools based on a formula which is primarily based on the4
number of students and full-time equivalents registered and attending such5
institutions.6
C. All monies collected pursuant to the levy of an ad valorem tax shall be7
used solely for enhancement of academic programs at each institution. No monies8
received by any such institution pursuant to the provisions of this Chapter shall be9
used for expenses related to salaries or benefits of non-teaching staff, coaches, or10
administrative personnel, construction or maintenance costs for any buildings,11
arenas, sports facilities, or grounds keeping on campus, or for any expenses12
associated with a sports program.13
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)]
Broadwater HB No. 576
Abstract: Creates the Higher Education Improvement District as a means of supplementing
the financing of higher education
Proposed law provides for the creation of the Higher Education Improvement District as a
special district and political subdivision of the state
Proposed law provides that the boundaries of the district are coterminous with the
boundaries of the St. of La.
Proposed law provides that the district shall exist in perpetuity subject only to the repeal or
amendment by the legislature.
Proposed law provides that the district is created to aid each public postsecondary education
institution under the management and supervision of the Bd. of Supervisors of LSU & A &
M College, the Bd. of Sup
ervisors of the So.
University and A & M College, the Bd. of Supervisors for the UL System, and the Bd. of
Supervisors of the LCTCS, including but not limited to law schools, medical schools,
veterinarian schools, and any other professional schools, in establishing an additional
revenue source to provide for the academic programs at such higher education institutions. HLS 13RS-392 ORIGINAL
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Proposed law provides that the district is created to carry out a public and governmental
purpose and that the additional revenue source to carry out such purpose shall not displace
or supplant any existing higher education means of finance in accordance with present law.
Further any reduction in means of financing from state general fund dollars shall result in
a reduction of an equivalent amount of any tax obligation established pursuant to proposed
law.
Proposed law provides the district shall be governed by a board of directors, comprised of
5 members confirmed by the Senate. Further the members shall consist of one representative
from each of the following: Bd. of Supervisors of LSU & A & M College, the Bd. of
Supervisors of the So. University and A & M College, the Bd. of Supervisors for the UL
System, and the Bd. of Supervisors of the LCTCS.
Proposed law provides if a vacancy occurs prior to the expiration of a term, the unexpired
term will be filled within 30 days after the date on which the vacancy occurs by appointment
by the governing body whose representative created the vacancy, with Senate confirmation.
Within 24 hours after being informed of a vacancy, the chairman or the officer exercising
his duties shall notify the appropriate governing board by certified mail of the vacancy and
the effective date of the vacancy.
Proposed law provides for 6-year terms of the members and that members shall serve until
their successors are appointed and take office.
Proposed law provides that a quorum shall be a majority, all official action shall require the
favorable vote of a majority of the members, the minutes shall be kept and made available
for inspection through the board's secretary, and maintained by the board's secretary. The
monies, funds, and accounts of the district shall be in the official custody of the board.
Proposed law provides that the board shall elect a president, vice-president, secretary, and
treasurer and all meetings shall be subject to the provisions of the open meetings law.
Further the board shall be domiciled in EBR Parish and shall adopt bylaws and prescribe
rules to govern its meetings. Further the board members shall serve without salary or per
diem but shall be entitled to reimbursement for reasonable, actual, and necessary expenses
incurred in the performance of their duties, which shall be paid by the governing body whom
they represent.
Proposed law provides that the district, through its board, shall have and exercise all powers
of a political subdivision and special district necessary or convenient for the carrying out of
its purposes, including, but not limited to the following:
(1) To sue and be sued.
(2) To adopt bylaws and rules and regulations.
(3) To enter into contracts, agreements, or cooperative endeavors with the state, its
political subdivisions or political corporations, or any public or private organization, person,
firm, or corporation for the collection of the tax authorized to be levied according to the
provisions of proposed law.
(4) To appoint or hire an executive director for carrying out its day-to-day operations
and may contract with consultants for services as it may require.
(5) To establish such funds or accounts as are necessary for the conduct of the affairs
of the district.
Proposed law provides for authority to levy ad valorem taxes within the district up to 5 mills
in addition to any other ad valorem taxes in existence within the district. Further, such taxes
shall be imposed by ordinance adopted by the district subject to approval of a majority vote
of the voters of the district.
Proposed law provides for publication of the ordinance providing for the levy and collection
of ad valorem taxes at least once in the official journal of the state and in the official journal
of each parish within the district. Further provides that for 30 days after date of publication, HLS 13RS-392 ORIGINAL
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any interested person may contest the legality of the ordinance or resolution and of any
provision therein made for the levy and collection of ad valorem taxes. Further after that
time, no one shall have any cause of action to contest the ordinance and the ordinance shall
be deemed legal and binding.
Proposed law provides that if the ad valorem tax is approved by a majority vote, the board
may contract with or enter into agreements with the tax collector of each parish in order to
provide for the efficient collection of the tax.
Proposed law provides that the board shall establish an account wherein all proceeds of the
tax shall be deposited and the monies shall be distributed to each public postsecondary
education institution under the management and supervision of the Bd. of Supervisors of
LSU & A & M College, the Bd. of Supervisors of the So. University and A & M College,
the Bd. of Supervisors for the UL System, and the Bd. of Supervisors of the LCTCS,
including but not limited to law schools, medical schools, veterinarian schools, and any other
professional schools based on a formula which is primarily based on the number of students
and full-time equivalents registered and attending such institutions.
Proposed law provides that all monies collected from the levy of an ad valorem tax shall be
used solely for enhancement of academic programs at each institution, and shall not be used
for salaries or benefits of non-teaching staff, coaches, or administrative personnel,
construction or maintenance costs for any buildings, arenas, sports facilities, or grounds
keeping on campus, or for any expenses associated with a sports program.
(Adds R.S. 17:3111-3115)