Erdey SB No. 50
Present law (R.S. 47:322.21) creates the Livingston Parish Tourism and Economic
Development Fund as a special fund in the state treasury. Proceeds of the state sales and use
tax on hotel and motel occupancy in Livingston Parish are the source of monies in the fund.
Monies in the fund are subject to annual appropriation exclusively for the purposes of the
Livingston Parish Tourist Commission. Monies in the fund are invested by the treasurer as
are those in the state general fund and interest accrues to the state general fund. Unexpended
and unencumbered monies in the fund at the end of the fiscal year remain in the fund.
Present law (R.S. 47:302.41(B)) requires that the monies in the fund be subject to annual
appropriation and that 50% of the monies in the fund shall be available exclusively for use
by the tourist commission for the purposes of promoting and enhancing tourism activities,
and for supporting all other activities consistent with the authorized mission of such
commission. Provides that the remaining 50% shall be available exclusively for use by the
Livingston Economic Development Council for the purpose of acquisition, development, and
promotion of industrial parks within the parish.
Proposed law would have provided that, except as provided by present law, the avails of the
tax imposed by R.S. 47:321 and as defined by R.S. 47:301 in the Juban Crossing Economic
Development District within Livingston Parish, a special district created by Livingston Parish
Ordinance No. 07-24 pursuant to Part II of Chapter 27 of Title 33 of the LRS, shall be
credited to the Bond Security and Redemption Fund, and after a sufficient amount is
allocated from that fund to pay all the obligations secured by the full faith and credit of the
state which become due and payable within any fiscal year, the treasurer shall pay the
remainder of such funds into a special fund which is hereby established in the state treasury,
and designated as the Juban Crossing Economic Development District Fund.
Proposed law would have provided that the monies in the fund shall be subject to an annual
appropriation by the legislature and all unexpended and unencumbered monies in the fund
at the end of the fiscal year shall remain in the fund. Would have provided for investment
of monies in the fund and that interest earnings be credited to the fund.
Proposed law would have provided that the monies in the fund shall be used for the Juban
Crossing Economic Development District's infrastructure, including but not limited to costs
of construction, on-site and off-site preparation costs, public improvements which are
essential to the preparation for use in accordance with the district's development plans, and
any other improvements as provided by law for such projects.
Proposed law would have provided that monies in the fund may also be pledged to secure
the repayment of bonds, notes, or other indebtedness issued by the district. Would have
further provided that when such bonds or other indebtedness is fully paid, deposits to the
fund shall cease and the fund shall cease to exist.
Proposed law would have limited the amount of the state's funding commitment to $45
million.
Proposed law would have required the Dept. of Revenue to determine the amount of the
avails of the tax and report the amount to the state treasurer. As compensation for its
obligations, the department may collect an amount equal to one percent of the avails, not to
exceed $10,000 in a fiscal year.
Would have become effective July 1, 2013.
(Proposed to add R.S. 47:322.21.1)
VETO MESSAGE: "Senate Bill No. 50 by Senator Erdey diverts dollars away from the
State General Fund to a local real estate development at the Juban Crossing Economic
Development District.
There is an existing process through which a project can receive a State match for local tax
increment financing revenues committed to the project. If the Louisiana Department of
Economic Development (LED) determines that providing a State match for a project will
result in a positive return on investment to the State, LED may submit the project for approval to the Joint Legislative Committee on the Budget. In addition, this project could be
funded through the capital outlay bill.
For these reasons, I vetoed similar legislation last year, have vetoed Senate Bill No. 50 and
hereby return it to the Senate. I encourage the author and the supporters of the Juban
Crossing Project to continue to work with LED and the legislature."