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Regular Session, 2014
HOUSE BILL NO. 1019
BY REPRESENTATIVE GAROFALO
AN ACT1
To enact Subpart B-31 of Part IV of Chapter 1 of Title 33 of the Louisiana Revised Statutes2
of 1950, to be comprised of R.S. 33:130.591.1 through 130.591.10, to create the3
St. Bernard Parish Economic Development Commission; to provide relative to the4
territorial jurisdiction, purposes, and powers and duties of the commission; to5
provide relative to commission funding, including the authority to levy ad valorem6
taxes; to provide for exceptions; and to provide for related matters.7
Notice of intention to introduce this Act has been published8
as provided by Article III, Section 13 of the Constitution of9
Louisiana.10
Be it enacted by the Legislature of Louisiana:11
Section 1. Subpart B-31 of Part IV of Chapter 1 of Title 33 of the Louisiana Revised12
Statutes of 1950, comprised of R.S. 33:130.591.1 through 130.591.10, is hereby enacted to13
read as follows:14
SUBPART B-31. ST. BERNARD PARISH ECONOMIC DEVELOPMENT15
COMMISSION16
§130.591.1. St. Bernard Parish Economic Development Commission; creation;17
purpose; territorial jurisdiction18
A. The St. Bernard Parish Economic Development Commission, referred to19
in this Subpart as the "commission", is hereby created as a body politic and political20
subdivision of the state of Louisiana, as defined in Article VI, Section 44 of the21
Constitution of Louisiana. Pursuant to Article VI, Sections 19 and 21 of the22
Constitution of Louisiana, the commission, acting through its board of23
commissioners, referred to in this Subpart as the "board", is hereby granted all of the24 ENROLLEDHB NO. 1019
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rights, powers, privileges, and immunities granted to political subdivisions for1
industrial, commercial, research, and economic development purposes, including but2
not limited to the power of taxation, the power to incur debt and issue revenue and3
general obligation bonds, certificates of indebtedness, bond and certificate4
anticipation notes, and refunding bonds, subject to the limitations provided in this5
Subpart.6
B. The commission is established for the primary object and purpose of7
promoting, encouraging, and participating in industrial development to stimulate the8
economy through commerce, industry, and research and for the utilization and9
development of natural, physical, and human resources of the area by providing job10
opportunities.11
C. The territorial limits of the commission shall be coterminous with the12
boundaries of the parish of St. Bernard.13
§130.591.2. Governance of the commission14
A.(1) The commission shall be governed by the board which shall be15
composed as follows:16
(a) The governing authority of the parish of St. Bernard shall appoint three17
members.18
(b) The legislative delegation for St. Bernard Parish shall appoint two19
members.20
(c) The board of directors of the St. Bernard Parish Chamber of Commerce21
shall appoint two members.22
(d) The St. Bernard Parish Economic Development Foundation shall appoint23
two members.24
(e) The St. Bernard Kiwanis Foundation shall appoint one member.25
(f) The St. Bernard Rotary Club shall appoint one member.26
(g) The Meraux Foundation shall appoint one member.27
(h) The Business and Professional Women's Club shall appoint one member.28
(i) The New Orleans Metropolitan Association of Realtors shall appoint one29
member.30 ENROLLEDHB NO. 1019
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(j) The president of the parish of St. Bernard or his designee.1
(k) The superintendent of the St. Bernard Parish school board or his2
designee.3
(l) The executive director of the St. Bernard Parish Chamber of Commerce4
or his designee.5
(m) The director of the St. Bernard Port, Harbor & Terminal District or his6
designee.7
(n) The chancellor of Nunez Community College or his designee.8
(o) The executive director of the St. Bernard Parish Economic Development9
Foundation.10
(p) Any three of the ten largest employers in the private sector in St. Bernard11
Parish as designated by the St. Bernard Economic Development.12
(2)(a) Members serving pursuant to Subparagraphs (1)(b) through (i) of this13
Subsection shall serve three years after serving initial terms as provided in this14
Subparagraph. Three members shall serve an initial term of one year; four shall15
serve two years; and four shall serve three years; as determined by lot at the first16
meeting of the board.17
(b) Members serving pursuant to Subparagraph (1)(a) of this Subsection18
shall serve terms concurrent with the term of the appointing authority.19
(c) Members serving pursuant to Subparagraphs (1)(j) through (n) shall serve20
during their terms of office.21
(d) Any designee serving on the board shall serve at the pleasure of the22
designating authority.23
(e) All appointees and designees shall be residents and qualified voters of the24
parish of St. Bernard.25
B. The board may adopt bylaws or such other rules and regulations as it26
deems necessary for conducting its business affairs. The board may appoint and27
retain all employees it deems advisable and fix the powers, duties, and compensation28
of such employees. The board shall hold regular meetings and may hold special29
meetings as shall be provided in the bylaws.30 ENROLLEDHB NO. 1019
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C. The board shall elect from among its own members a president, a vice1
president, a secretary, and a treasurer, whose duties shall be those usual to such2
offices. At the option of the board, the offices of secretary and treasurer may be held3
by one person.4
D. Board members shall serve without compensation; however, the board5
may reimburse any member for expenses actually incurred in the performance of6
duties on behalf of the commission.7
E. Any member of the board may be removed with or without cause by the8
respective appointing or designating authority.9
F. A majority of the members of the board shall constitute a quorum for the10
conduct of business.11
G. The board shall maintain suitable offices in the parish of St. Bernard.12
H. Members of the board, individually, and members of their immediate13
families are prohibited from bidding on or entering into any contract, subcontract,14
or other transaction that is under the supervision or jurisdiction of the commission.15
§130.591.3. Powers of the commission16
A. The commission, acting by and through its board, shall have and exercise17
all powers of a political subdivision necessary or convenient for the carrying out of18
its objects and purposes, including but not limited to the following rights and powers:19
(1) To sue and be sued.20
(2) To adopt, use, and alter at will a corporate seal.21
(3)(a) To acquire by donation, grant, purchase, or lease, all property22
including servitudes or rights of use; to hold and use any franchise or property,23
immovable or movable, corporeal or incorporeal, or any interest therein, necessary24
or desirable for carrying out the objects and purposes of the commission, including25
but not limited to the establishment, maintenance, and operation of industrial parks.26
(b) Nothing in this Paragraph shall be construed to apply to electric27
cooperatives or investor owned public utilities that are regulated by the Louisiana28
Public Service Commission or the city of New Orleans.29 ENROLLEDHB NO. 1019
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(4) To receive by grant, donation, or otherwise any sum of money, or1
property, aid, or assistance from the United States, the state of Louisiana, or any2
political subdivision thereof, or any person, firm, or corporation.3
(5) To enter into contracts for the purchase, acquisition, construction,4
maintenance, and improvement of works and facilities necessary in connection with5
the purposes of the commission.6
(6) In its own name and on its own behalf to incur debt and to issue general7
obligation bonds, revenue bonds, certificates, notes, and other evidences of8
indebtedness and to levy and cause to be collected ad valorem taxes as provided in9
this Subpart and as may be provided by general law.10
(7) To require and issue licenses with respect to its properties and facilities.11
(8) To regulate the imposition of fees and rentals charged by the commission12
for its facilities and for services rendered by it.13
(9) To mortgage properties constructed or acquired and to borrow money and14
pledge all or part of its revenues, leases, rents, or other advantages as security for15
such loans.16
(10) To sell immovable property owned by the commission after legal notice17
as provided by law for the judicial sale of immovable property.18
(11) To contract, upon such terms as it may agree upon, for legal, financial,19
engineering, and other professional services necessary or expedient in the conduct20
of its affairs.21
(12) To utilize the services of the executive departments of the state upon22
mutually agreeable terms and conditions.23
(13) To do any and all things necessary or proper for the government,24
regulation, development, and control of the business of the commission.25
B. The commission shall not be considered to be an instrumentality of the26
state for purposes of Article X, Section 1 of the Constitution of Louisiana.27
C. Any contract or agreement entered into by the board shall comply with28
state law and public policy.29 ENROLLEDHB NO. 1019
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D. No action or work undertaken by the board or contract or agreement1
entered into by the board shall violate the master plan of the Coastal Protection and2
Restoration Authority or any statewide drainage and flood control plan administered3
by the Department of Transportation and Development.4
§130.591.4. Commercial and industrial development5
A.(1) In order to promote commerce and industry and develop trade by6
inducing manufacturing, industrial, commercial, and other enterprises, including7
those relating to arts, entertainment, and culture, to locate within the jurisdiction of8
the commission, and to attract and retain business and commercial enterprises within9
the jurisdiction of the commission to maintain employment and the economy of the10
area, the commission shall have authority to plan, finance, develop, acquire, own,11
construct, repair, renovate, and improve commercial and industrial parks and plant12
buildings within the jurisdiction of the commission, including sites and other13
necessary property or appurtenances thereto, and to acquire, construct, develop,14
improve, operate, maintain, and provide improvements and services necessary15
therefor, including but not limited to roads, streets, lighting, bridges, rail facilities,16
drainage, sewers, sewerage disposal facilities, plant solid waste disposal facilities,17
water works, and other utilities and related properties.18
(2)(a) The commission shall also have the authority to sell, lease, or19
otherwise dispose of, by suitable and appropriate contract, to any enterprise locating20
or existing within the jurisdiction of the commission all or any part of a site,21
building, or other property owned by the commission.22
(b) In determining the consideration for any contract to lease, sell, or23
otherwise dispose of lands, buildings, or other property of the commission, the board24
may take into consideration the value of the lands, buildings, or other properties25
involved as well as the potential value of the economic impact of the enterprise being26
induced to locate or expand within the jurisdiction of the commission. Such27
economic impact shall include increased employment, increased use of local labor,28
wages and salaries to be paid, consumption of local materials, products, and29
resources, and special tax revenue to be generated by the enterprise acquiring or30 ENROLLEDHB NO. 1019
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leasing lands, buildings, or other property from the commission. In no event,1
however, and under no circumstances shall the board dispose of any property of the2
commission for less than the fair market value of the property as defined in R.S.3
47:2321 without the prior approval of the State Bond Commission.4
(c) The commission shall be empowered to enter into leases having a term,5
including all renewal terms, not to exceed fifty years in the aggregate; provided that6
there shall be a provision for periodic adjustments of the rental rate, commensurate7
with economic conditions, during the fifty-year term.8
(3)(a) The resolution or ordinance adopted by the board authorizing any9
lease, sale, or other disposition of lands, buildings, or other property of the10
commission or any attachment thereto shall set forth, in a general way, the terms of11
the authorized lease, sale, or other disposition, and such resolution or ordinance shall12
be published as soon as possible in one issue of the official journal of the13
commission.14
(b) For a period of thirty days from the date of publication of any such15
resolution or ordinance, any interested person may contest the legality of such16
resolution or ordinance or the validity of the authorized lease, sale, or other17
disposition of commission property, after which time no one shall have any cause of18
action to contest the legality of the authorized lease, sale, or other disposition of19
commission property for any cause whatsoever, and it shall be conclusively20
presumed thereafter that every legal requirement has been complied with and no21
court shall have authority to inquire into such matters after the lapse of thirty days.22
B. The commission shall have the following additional powers, together with23
all powers incidental thereto or necessary to carry out the provisions of this24
Subsection:25
(1)(a) To acquire, whether by purchase, exchange, donation, or lease, and to26
construct and improve, maintain, equip, and furnish one or more economic27
development projects, including all immovable and movable properties which the28
board may deem necessary in connection therewith.29 ENROLLEDHB NO. 1019
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(b) Nothing in this Paragraph shall be construed to apply to electric1
cooperatives or investor-owned public utilities that are regulated by the Louisiana2
Public Service Commission or the city of New Orleans.3
(2) To lease or to contract for the use of any or all of its authorized projects4
and to charge and collect rent, fees, or charges therefor, and to terminate any such5
lease or contractual arrangement upon the failure of the obligations thereof, all as6
may be provided for in the lease agreement to which the commission may become7
a party.8
(3) To sell, exchange, donate, and convey any or all of its projects upon such9
terms and conditions as the board may deem advisable, including the power to10
receive for any such sale the first mortgage note or notes of the purchaser of a project11
representing unpaid installments of the purchase price due by the purchaser to the12
commission whenever the board finds any such actions to be in furtherance of the13
purpose for which the commission was organized.14
(4) As security for the payment of the principal of and interest on any bonds,15
notes, or other obligations of the commission, and any agreements made in16
connection therewith, to mortgage and pledge any or all of its projects or any part or17
parts thereof, whether then owned or thereafter acquired, and to pledge the revenues18
and receipts therefrom or from any other source.19
(5)(a) To enter into any cooperative financing of an economic development20
project between or among the commission and the state of Louisiana, any of its21
political subdivisions or public benefit corporations, the United States or its agencies,22
or any public or private association, corporation, or individual. The methods of23
financing shall include loan guarantees, land write-downs, grants, lease guarantees,24
or any form of financial subsidy or incentive that complies with the provisions of25
Article VII, Section 14 of the Constitution of Louisiana.26
(b) To enter into any cooperative development between or among the27
commission and the state of Louisiana, any of its political subdivisions or public28
benefit corporations, the United States or its agencies, or any public or private29
association, corporation, or individual. The methods of cooperative development30 ENROLLEDHB NO. 1019
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shall include but not be limited to any number of joint development agreements such1
as condominiums and cooperative ownership, limited partnerships, and investment2
syndicates not prohibited by the Constitution of Louisiana. Regardless of the method3
of financing, the commission shall attempt to obtain the most favorable security4
available in order to protect and ensure recovery of sums loaned or paid pursuant to5
such financing.6
(c) "Cooperative endeavor" means any form of economic development7
assistance between or among the commission and the state, any of its local8
governmental subdivisions, political corporations or public benefit corporations, the9
United States or its agencies, or any public or private association, corporation, or10
individual. The term "cooperative endeavor" shall include but not be limited to11
cooperative financing, cooperative development, or any other form of cooperative12
economic development activity.13
§130.591.5. Funding sources; fees and ad valorem tax; borrowing money14
A. The board may, when necessary, levy annually an ad valorem tax not to15
exceed five mills on the dollar of assessed valuation of all property within its16
territorial limits if the amount, term, and purpose of the tax, as set out in a17
proposition submitted to a vote in accordance with the Louisiana Election Code, is18
approved by a majority of the qualified electors within the jurisdiction of the19
commission voting in an election held for that purpose.20
B. All funds derived under this Section may be used for any expenses or21
purposes of the commission. The board shall establish and maintain, in addition to22
all necessary and normal accounts, the following special accounts:23
(1) A revolving loan guarantee fund, to be used to guarantee industrial or24
business terminal development loans to the extent permitted by the Constitution of25
Louisiana under the following guidelines:26
(a) Loan guarantees shall be made only when adequate financing for the27
project is unavailable through normal lending channels and the project represents a28
sound business venture that is financially and economically feasible.29 ENROLLEDHB NO. 1019
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(b) Loan guarantees shall be used to assist an identifiable business concern1
to finance plant construction, conversion, or expansion and to finance acquisition of2
land, existing structures, machinery, or equipment and to provide operational funds.3
(c) The terms and rates shall be compatible with loans offered by local4
lending institutions and the guarantee shall never exceed forty percent of the cost of5
the total project. In addition, the commission shall attempt to obtain the most6
favorable security available under the circumstances to protect and ensure the7
recovery of its commitment under the guarantee.8
(d) Loan guarantees may be evaluated for the economic impact in terms of9
the number and types of jobs created or saved.10
(e) Loan guarantees shall be made to leverage other sources of private and11
public capital to attain the greatest economic impact possible with the limited funds12
available.13
(f) Loan guarantees shall be targeted to export industries, manufacturing14
firms, wholesale distribution firms, and service firms.15
(g) The lending or underwriting principals shall have such demonstrated16
experience, ability, and net worth as would allow for the success, continuation,17
security, and solvency of the program. Prudent lending and underwriting standards18
shall be applied in order to comply with the primary objectives of this Subpart.19
(2) An economic development operational fund, for the development and20
attraction of industries to accomplish the following:21
(a) The operational fund shall be used for operating expenses necessary in22
creation of industrial and commercial development, in hiring sufficient staff to23
accomplish the purposes set out in this Subpart, and other related expenses.24
(b) The operational fund may also be utilized in contracting for services as25
may be required by the board, including but not limited to planning assistance,26
surveys, land use studies, professional and technical services, and other services27
necessary to effectuate a unified industrial development plan.28 ENROLLEDHB NO. 1019
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(3) An account for the maintenance and operation of a governmental1
procurement center to provide necessary information to companies and individuals2
engaged in providing services and goods to accomplish the following:3
(a) Pinpoint and identify potential buying centers and aid in placing the4
company on a bidder's list for these centers and assist companies in obtaining5
specifications for their products or services.6
(b) Provide trained counselors to assist in acquiring solicitation and bid7
packages and conduct seminars designed to disseminate other information needed8
by the target companies and individuals.9
§130.591.6. Obligations of the commission10
A. The commission may incur debt for any one or more of its lawful11
purposes set forth in this Subpart, to issue in its name negotiable bonds, notes,12
certificates of indebtedness, or other evidences of debt and to provide for the security13
and payment thereof.14
B.(1) The commission may in its own name and behalf incur debt and issue15
general obligation ad valorem property tax secured bonds under the authority of and16
subject to the provisions of Article VI, Section 33 of the Constitution of Louisiana,17
Subpart A of Part III of Chapter 4 of Subtitle II of Title 39 of the Louisiana Revised18
Statutes of 1950, when approved by a majority of the qualified voters within the19
jurisdiction of the commission who vote in an election called and conducted under20
the authority of the Louisiana Election Code, including Chapter 6-A of Title 18 of21
the Louisiana Revised Statutes of 1950. General obligation bonds of the commission22
may be issued for any of the purposes for which the commission is created or is23
authorized to act under any provisions of this Subpart, all of which purposes are24
hereby found and declared to be public purposes and functions of the state of25
Louisiana, which are delegated to the commission.26
(2) The commission may in its own name and behalf issue revenue bonds for27
the purposes for which the commission is created or is authorized to act under any28
of the provisions of this Subpart, including industrial and commercial development29
revenue bonds. The bonds shall be issued in the manner as provided for in Part XII30 ENROLLEDHB NO. 1019
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and Part XIII of Chapter 4 of Subtitle II of Title 39 of the Louisiana Revised Statutes1
of 1950.2
(3) The commission may in its own name and behalf borrow from time to3
time in the form of certificates of indebtedness. The certificates shall be secured by4
the dedication and pledge of monies of the commission derived from any lawful5
sources, including fees, occupational license revenues, building permit charges6
dedicated to the commission, lease rentals, service charges, local service agreement7
payments from one or more other contracting parties, the avails of ad valorem8
property taxation, or any combination of such sources of income, provided that the9
term of such certificates shall not exceed ten years and the annual debt service on the10
amount borrowed shall not exceed the anticipated revenues to be dedicated and11
pledged to the payment of the certificates of indebtedness, as shall be estimated by12
the board at the time of the adoption of the resolution authorizing the issuance of13
such certificates. The estimate of the board referred to in the authorizing resolution14
shall be conclusive for all purposes of this Section.15
(4) The commission may borrow the amount of the anticipated ad valorem16
tax, not to exceed five mills, authorized by R.S. 33:130.591.5, for a period not to17
exceed ten years and may issue certificates of indebtedness therefor and may18
dedicate the avails of the tax funded for the payment thereof for the period of time19
the certificates are outstanding.20
(5) The board may adopt all necessary resolutions or ordinances necessary21
for ordering, holding, canvassing, and promulgating the returns of any election22
required for the issuance of general obligation bonds, or limited tax secured23
obligations, or for the voting of a property tax millage, which resolutions or24
ordinances may include covenants for the security and payment of any bonds or25
other evidence of debt so issued.26
(6) For a period of thirty days from the date of publication of any resolution27
or ordinance authorizing the issuance of any bonds, certificates of indebtedness,28
notes, or other evidence of debt of the commission, any interested person may29
contest the legality of such resolution or ordinance and the validity of such bonds,30 ENROLLEDHB NO. 1019
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certificates of indebtedness, notes or other evidence of debt issued or proposed to be1
issued thereunder and the security of their payment, after which time no one shall2
have any cause of action to contest the legality of the resolution or ordinance or to3
draw in question the legality of the bonds, certificates of indebtedness, notes, or other4
evidence of debt, the security therefor, or the debts represented thereby for any cause5
whatever, and it shall be conclusively presumed that every legal requirement has6
been complied with, and no court shall have authority to inquire into such matters7
after the lapse of thirty days.8
(7) The issuance and sale of such bonds, certificates of indebtedness, notes,9
or other evidence of debt by the commission shall be subject to approval by the State10
Bond Commission.11
(8) Such bonds, certificates of indebtedness, notes, or other evidence of debt12
shall have all the qualities of negotiable instruments under the commercial laws of13
the state of Louisiana.14
§130.591.7. Securities15
Bonds, certificates, or other evidences of indebtedness issued by the16
commission under this Subpart are deemed to be securities of public entities within17
the meaning of Chapters 13 and 13-A of Title 39 of the Louisiana Revised Statutes18
of 1950, and shall be subject to defeasance in accordance with the provisions of19
Chapter 14 of Title 39 of the Louisiana Revised Statutes of 1950, and may be20
refunded in accordance with the provisions of Chapters 14-A and 15 of Title 39 of21
the Louisiana Revised Statutes of 1950, and may also be issued as short-term22
revenue notes of a public entity under Chapter 15-A of Title 39 of the Louisiana23
Revised Statutes of 1950.24
§130.591.8. Exemption from taxation25
The commission and all properties at any time owned by the commission and26
the income therefrom and all bonds, certificates, and other evidences of indebtedness27
issued by the commission under this Subpart and the interest or income therefrom28
shall be exempt from all taxation by the state of Louisiana.29 ENROLLEDHB NO. 1019
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§130.591.9. General compliances; enhancement; budget1
A. No provision of this Subpart shall be construed so as to exempt the2
commission from compliance with the provisions of Louisiana laws pertaining to3
open meetings, public records, fiscal agents, official journals, dual officeholding and4
employment, public bidding for the purchase of supplies and materials, and5
construction of public works, the code of Governmental Ethics, the Right to Property6
in Article I, Section 4 of the Constitution of Louisiana, and the Louisiana Election7
Code.8
B. The commission shall have the power and right to adopt a program or9
programs awarding contracts to, and establishing set-aside goals and preference10
procedures for the benefit of, businesses owned and operated by socially or11
economically disadvantaged persons in accordance with any of the provisions of R.S.12
38:2233 and of Chapter 19 of Title 39 of the Louisiana Revised Statutes of 1950,13
entitled "Louisiana Minority and Women's Business Enterprise Act".14
C. The board shall annually prepare a financial statement which shall be15
presented to the legislative auditor pursuant to the provisions of R.S. 24:513. The16
legislative auditor shall thereafter publish his findings in the official journal of the17
commission.18
§130.591.10. Exceptions19
A. Notwithstanding any other provision of law to the contrary, this Subpart20
shall not be construed to infringe upon any powers of the St. Bernard Port, Harbor21
and Terminal District.22
B. Further, nothing contained in this Subpart shall be construed to permit the23
commission to engage in port, harbor, terminal, or other maritime activities within24
the jurisdiction, authority, and powers of the St. Bernard Port, Harbor and Terminal25
District pursuant to Chapter 14 of Title 34 of the Louisiana Revised Statutes of 1950,26
including but not limited to the ownership, operation, and maintenance of27
infrastructure and facilities related to those activities.28 ENROLLEDHB NO. 1019
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Section 2. This Act shall become effective upon signature by the governor or, if not1
signed by the governor, upon expiration of the time for bills to become law without signature2
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If3
vetoed by the governor and subsequently approved by the legislature, this Act shall become4
effective on the day following such approval.5
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: