Garofalo (HB 1019) Act No. 834
New 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.
New law provides that the commission is governed by a board of commissioners comprised
as follows: three members appointed by the governing authority of St. Bernard Parish; two
members appointed by the legislative delegation for St. Bernard Parish; two members
appointed by the board of directors of the St. Bernard Parish Chamber of Commerce; two
members appointed by the St. Bernard Parish Economic Development Foundation; one
member appointed by the St. Bernard Kiwanis Foundation; one member appointed by the
St. Bernard Rotary Club; one member appointed by the Meraux Foundation; one member
appointed by the Business and Professional Women's Club; one member appointed by the
New Orleans Metropolitan Association of Realtors; any three of the ten largest employers
in the private sector in St. Bernard Parish as designated by the St. Bernard Economic
Development; the president of St. Bernard Parish, 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.
New law provides for the terms and qualifications of board members and requires them to
serve without compensation, but authorizes reimbursement for actual expenses. Permits the
respective appointing or designating authority to remove a member with or without cause.
New 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 authority to sue and be sued, acquire by donation, grant, purchase, or lease all
property including servitudes or rights of use, 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, regulate fees and rentals for facilities
and services, and enter into any cooperative financing of an economic development project.
New 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.
New law authorizes the commission to construct and acquire industrial parks and industrial
plant buildings and to acquire, construct, improve, operate, and maintain improvements and
services necessary therefor.
New 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.
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.
New 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.
New 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.
New 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 the development and
attraction of industries.
(3)An account for operation of a governmental procurement center. Provides necessary
information to companies and individuals engaged in providing services and goods.
New 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. The issuance and sale of bonds and other evidence of debt is
subject to approval by the State Bond Commission.
New law exempts the commission, its properties, and income therefrom, and its bonds and
interest and income therefrom from state taxation.
New law provides that new 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.
New 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 existing law (Small Business Procurement Act and the La. Minority and
Women's Business Enterprise Act). Requires that the commission present a financial
statement to the legislative auditor pursuant to existing law (R.S. 24:513).
New law provides that new 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.
New 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 (June 23, 2014).
(Adds R.S. 33:130.591.1-130.591.10)