Louisiana 2014 2014 Regular Session

Louisiana House Bill HB1019 Comm Sub / Analysis

                    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)]
CONFERENCE COMMI TTEE REPORT DIGEST
House Bill No. 1019 by Representative Garofalo
Keyword and oneliner of the instrument as it left the House
DISTRICTS/ECONOMIC DEVEL:  Creates the St. Bernard Parish Economic Development
Commission
Report adopts Senate amendments to:
1. Add provisions that provide that proposed law shall not infringe on the powers of the St.
Bernard Port Harbor and Terminal District and shall not be construed to permit the
commission to engage in port, harbor, terminal, or other maritime actions within the
jurisdiction of the district.
2. Add a requirement that contracts or agreements entered into by the commission's board
comply with state law and public policy.
3. Add provisions that prohibit any action or work undertaken by the commission's board or
any contract or agreement entered into by the board from violating the master plan of the
Coastal Protection and Restoration Authority or any statewide drainage and flood control
plan administered by the Dept. of Transportation and Development.
Report rejects Senate amendments which would have:
1. Added provisions to grant the commission's board the authority to use other means to
acquire property in addition to donation, grant, purchase, exchange, or lease.
Report amends the bill to:
1. None
Digest of the bill as proposed by the Conference Committee Proposed law creates the St. Bernard Parish Economic Development Commission as a political
subdivision of the state for the primary object and purpose of promoting and encouraging
industrial development to stimulate the economy through commerce, industry, and research and
for the utilization and development of natural and human resources of the area by providing job
opportunities.  Provides for territorial jurisdiction of the commission throughout the parish. 
Pursuant to constitutional authority, grants the commission all rights and powers of political
subdivisions for economic development purposes.
Proposed law provides that the commission is governed by a board of commissioners comprised
as follows:
(1)Three members appointed by the governing authority of the parish of St. Bernard.
(2)Two members appointed by the legislative delegation for St. Bernard Parish.
(3)Two members appointed by the board of directors of the St. Bernard Parish Chamber of
Commerce.
(4)Two members appointed by the St. Bernard Parish Economic Development Foundation.
(5)One member appointed by the St. Bernard Kiwanis Foundation.
(6)One member appointed by the St. Bernard Rotary Club.
(7)One member appointed by the Meraux Foundation.
(8)One member appointed by the Business and Professional Women's Club.
(9)One member appointed by the New Orleans Metropolitan Association of Realtors.
(10)Any three of the ten largest employers in the private sector in St. Bernard Parish as
designated by the St. Bernard Economic Development.
(11)The president of the parish of St. Bernard, the superintendent of the St. Bernard Parish
school board, the executive director of the St. Bernard Parish Chamber of Commerce, the
director of the St. Bernard Port, Harbor & Terminal District, the chancellor of Nunez
Community College, or their respective designees, and the executive director of the St.
Bernard Parish Economic Development Foundation.
Provides that board members serve without compensation, but may be reimbursed actual
expenses.  Permits removal of a member for cause upon favorable vote of 2/3 of the members of
the parish governing authority.
Proposed law authorizes the commission to 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)To sue and be sued.
(2)To adopt, use, and alter at will a corporate seal.
(3)To acquire by donation, grant, purchase, or lease all property including servitudes or
rights of use and to hold and use any franchise or property necessary or desirable for
carrying out the objects and purposes of the commission including but not limited to the
establishment, maintenance, and operation of industrial parks.
(4)To receive by grant, donation, or otherwise any sum of money, or property, aid, or
assistance from the U.S., the state, or any political subdivision thereof, or any person,
firm, or corporation.
(5)To enter into contracts for the purchase, acquisition, construction, maintenance, and
improvement of works and facilities necessary in connection with the purposes of the
commission.
(6)In its own name and on its own behalf to incur debt and to issue general obligation bonds,
revenue bonds, certificates, notes, and other evidences of indebtedness and to levy and
cause to be collected ad valorem taxes as provided in proposed law and general law.
(7)To require and issue licenses with respect to its properties and facilities.
(8)To regulate fees and rentals for facilities and services.
(9)To mortgage property and borrow money and pledges to secure loans.
(10)To sell immovable property after notice required by law.
Proposed law provides that the commission shall not be deemed to be an instrumentality of the
state for purposes of the state civil service provisions of the state constitution.
Proposed law authorizes the commission to construct and acquire industrial parks and industrial
plant buildings. Also authorizes the commission to acquire, construct, improve, operate, and
maintain improvements and services necessary therefor.
Proposed law authorizes the commission to sell, lease, or otherwise dispose of, by suitable and
appropriate contract, to any enterprise locating or existing within the jurisdiction of the
commission all or any part of a site, building, or other property owned by the commission. In
determining the consideration for sale of property, authorizes the board to consider its value and
the potential economic impact.  Prohibits the board from disposing of any property of the
commission for less than the fair market value without the prior approval of the State Bond
Commission. Proposed law authorizes the commission to enter into leases having a term, including all renewal
terms, not to exceed 50 years in the aggregate, with provision for rate adjustments. Requires that
the resolution or ordinance authorizing any lease, sale, or other disposition of property to set
forth, in a general way, the terms of the disposition.  Requires publication of any such resolution
or ordinance in the official journal of the commission.  Provides for a 30-day period to contest
any such resolution or ordinance.
Proposed law provides that the commission shall have the following additional powers and
powers incidental thereto:
(1)To acquire and to construct and improve, maintain, equip, and furnish economic
development projects.
(2)To lease or to contract for the use of any or all of its authorized projects and to charge and
collect rent, fees, or charges therefor.
(3)To sell, exchange, donate, and convey any or all of its projects.
(4)To mortgage and pledge any or all of its projects and to pledge the revenues and receipts
therefrom or from any other source.
(5)To enter into any cooperative financing of an economic development project or
cooperative development.
Proposed law authorizes the board, subject to voter approval, to levy annually an ad valorem
tax not to exceed five mills.  Provides that all funds from the tax may be used for any expenses or
purposes of the commission.
Proposed law provides for special accounts to be maintained by the board:
(1)A revolving loan guarantee fund.  Provides for loan guarantees to be made by the
commission.
(2)An economic development operation fund.  Provides for its users.
(3)An account for operation of a governmental procurement center.  Provides relative to the
center.
Proposed law authorizes the commission, subject to voter approval, to incur debt and issue
general obligation ad valorem property tax secured bonds for any commission purpose.
Authorizes the commission to issue revenue bonds for commission purposes.  Further authorizes
the commission to borrow from time to time in the form of certificates of indebtedness.  Requires
that such certificates be secured by the dedication and pledge of monies of the commission
derived from any lawful sources, provided that the term of such certificates shall not exceed 10
years.  Provides that the annual debt service on the amount borrowed shall not exceed the anticipated revenues to be dedicated and pledged to the payment of the certificates of
indebtedness, as shall be estimated by the board.  Authorizes the commission to borrow the
amount of the anticipated ad valorem tax, not to exceed five mills for a period not to exceed 10
years and to issue certificates of indebtedness therefor and dedicate the avails of the tax funded
for the payment thereof for the period of time the certificates are outstanding.
Proposed law exempts the commission, its properties, and income therefrom, and its bonds and
interest and income therefrom from state taxation.
Proposed law provides that proposed law shall not be construed to exempt the commission from
compliance with La. laws pertaining to open meetings, public records, fiscal agents, official
journals, dual officeholding and employment, public bidding for the purchase of supplies and
materials, and construction of public works, the Code of Governmental Ethics, the Right to
Property in Const. Art. I, ยง4, and the La. Election Code.
Proposed law grants the commission the power and right to adopt a program(s) awarding
contracts to, and establishing set-aside goals and preference procedures for the benefit of,
businesses owned and operated by socially or economically disadvantaged persons in accordance
with present law (R.S. 38:2233 and the La. Minority and Women's Business Enterprise Act). 
Requires that the commission present a financial statement to the legislative auditor pursuant to
present law (R.S. 24:513).
Proposed law provides that proposed law shall not infringe on any powers of the St. Bernard Port
Harbor and Terminal District and shall not be construed to permit the commission to engage in
port, harbor, terminal, or other maritime activities within the jurisdiction of the district.
Proposed law prohibits any action or work undertaken by the commission's board or any contract
or agreement entered into by the board from violating the master plan of the Coastal Protection
and Restoration Authority or any statewide drainage and flood control plan administered by
Dept. of Transportation and Development.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 33:130.591.1-130.591.10)