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Regular Session, 2014
SENATE BILL NO. 278
BY SENATOR AMEDEE
LOCAL AGENCIES. Provides for legislation relative to the creation of Ascension Parish
Infrastructure Development Districts. (gov sig)
AN ACT1
To enact R.S. 33:4690.13, relative to Ascension Parish; to authorize the parish governing2
authority to create infrastructure development districts; to provide relative to the3
authority of such districts to undertake infrastructure projects and to finance them by4
levying taxes and assessments and incurring debt; to provide relative to taxes,5
assessments, and debt; to provide for general powers and duties of a district; to6
provide for an effective date; and to provide for related matters.7
Notice of intention to introduce this Act has been published.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 33:4690.13 is hereby enacted to read as follows: 10
ยง4690.13. Ascension Parish Infrastructure Development Districts11
A. Findings and purpose. (1) The legislature finds that there are12
pockets of Ascension Parish which possess great potential for development or13
redevelopment. However, before such development can take place, basic14
infrastructure must be provided or upgraded in the areas. The legislature finds15
that the traditional method of financing infrastructure development, separate16
taxes or assessments for each individual improvement, e.g. roads, lighting,17 SB NO. 278
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water, sewer, etc., though very appropriate in many cases, may not be the best1
way to provide multiple improvements in a relatively small geographic area.2
The legislature finds that an effective method of financing a spectrum of3
infrastructure improvements in a small geographic area is to finance the entire4
undertaking as a single package rather than levying separate taxes for each5
individual improvement. It is the purpose of this Section to authorize the levy6
of ad valorem taxes and non ad valorem assessments for financing7
infrastructure improvement projects in Ascension Parish.8
(2) The legislature further finds that given the complexity of such9
projects and the geographic compactness of the areas contemplated for such10
development, the governing authority of Ascension Parish may wish to create11
special taxing districts having the authority to plan and execute the12
infrastructure development projects and to levy the ad valorem taxes and non13
ad valorem assessments authorized by this Section. Even if the governing14
authority of the parish serves as the governing authority of the district, there15
are proven political and legal advantages to the use of special taxing districts for16
carrying out governmental functions. It is further the purpose of this Section17
to authorize the governing authority of Ascension Parish to create special taxing18
districts authorized to do those things necessary, as prescribed in this Section,19
to finance, execute, and maintain infrastructure development projects such as20
those described in this Subsection.21
B. Creation. Without limiting any authority of the governing authority22
of the parish of Ascension as provided in the government home rule charter, the23
governing authority may create special taxing districts within the parish for the24
purpose of infrastructure improvement subject to the provisions of this Section.25
The parish governing authority may not create such a district until it has held26
a public hearing on the issue. Any such district shall be a political subdivision27
of the state as defined in Article VI, Section 44 of the Constitution of Louisiana28
and shall have all authority granted by the constitution, the home rule charter29 SB NO. 278
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of Ascension Parish, and this Section. The parish governing authority may1
serve as the governing authority of any such special district or it may provide2
for appointment of a governing authority in the ordinance creating the district.3
The parish governing authority may, at its discretion, require as a condition of4
creation of the infrastructure development district that title to, control of, and5
responsibility for maintenance of any or all infrastructure projects within the6
district be transferred to the parish governing authority in accordance with its7
existing ordinances and practices.8
C. Special powers. The district may, subject to applicable regulatory9
jurisdiction and permitting authority of other public entities and officials,10
finance, fund, plan, establish, acquire, construct or reconstruct, enlarge or11
extend, equip, operate, and maintain systems, facilities, and basic12
infrastructures for the following:13
(1) Water management and control for the lands within the district and14
to connect some or any of such facilities with roads and bridges.15
(2) Water supply, sewer, and wastewater management, reclamation, and16
reuse, or any combination thereof, and may construct and operate connecting17
intercepting or outlet sewers and sewer mains and pipes and water mains,18
conduits, or pipelines in, along, and under any street, alley, highway, or other19
public place or way, and dispose of any effluent, residue, or other byproducts20
of such system or sewer system.21
(3) Bridges or culverts that may be needed across or in any drain, ditch,22
canal, floodway, holding basin, excavation, public highway, tract, grade, fill, or23
cut, and roadways over levees and embankments, and may construct any and24
all of such works and improvements across, through, or over any public right-25
of-way, highway, grade, fill, or cut.26
(4) District roads equal to or exceeding parish specifications and street27
lights.28
D. Taxing authority. (1)(a) The governing authority of a special taxing29 SB NO. 278
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district created as provided in this Section may levy and collect, in the same1
manner and at the same time as all other ad valorem taxes in the parish are2
levied and collected, a special ad valorem tax, not to exceed twenty mills, upon3
all taxable, immovable property situated within the boundaries of the district.4
The ad valorem tax provided for herein shall be in addition to all other ad5
valorem taxes provided for by law.6
(b) The proceeds of the tax authorized by this Paragraph may be used7
for any lawful purpose of the district, including ordinary expenses of the8
district.9
(2) To plan, establish, acquire, construct or reconstruct, enlarge or10
extend, and equip the facilities and projects of the district and to pay expenses11
associated with and related to the issuance of bonds for such facilities and12
projects, the district governing authority may levy a benefit special assessment.13
The district governing authority shall determine the amount of the assessment14
based upon a report of the district's engineer and shall assess lands benefited15
by the improvement, such assessment to be apportioned in proportion to the16
benefits received by each tract of land. The benefit special assessment shall be17
levied and payable in equal annual installments for each year for which bonds18
secured by the assessment are outstanding. The tax collector shall collect and19
enforce assessments in the same manner and at the same time as ad valorem20
taxes. Benefit special assessments shall be a lien on the property against which21
assessed until paid.22
(3) To maintain, operate, and preserve the facilities and projects of the23
district, the district governing authority may levy a maintenance special24
assessment. The district governing authority shall determine the amount of the25
assessment based upon a report of the district's engineer and shall assess lands26
benefited by the improvement, such assessments to be apportioned in27
proportion to the benefits received by each tract of land. Assessments shall be28
collected and enforced by the tax collector in the same manner and at the same29 SB NO. 278
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time as ad valorem taxes. Maintenance special assessments shall be a lien on the1
property against which assessed until paid.2
E. General powers and duties. The governing authority of the district3
shall have the following additional powers and duties:4
(1) To adopt bylaws for the regulation of its affairs and the conduct of5
its business.6
(2) To adopt an official seal and alter the seal at its pleasure.7
(3) To maintain an office at such place as it may designate and to occupy8
space for such purposes as may be made available by the parish governing9
authority.10
(4) To sue and to be sued.11
(5) To receive, administer, and comply with the conditions and12
requirements respecting any gift, grant, guarantee, subsidy, or donation of any13
property or money.14
(6) To acquire, by any lawful means, property, including rights-of-way,15
and to hold and use any franchise or property, whether real, personal, or mixed,16
tangible or intangible, necessary or desirable for carrying out the objects and17
purposes of the district.18
(7) To borrow money and issue bonds or obligations of the district in the19
manner provided by this Section and to refund the same.20
(8) To make and execute contracts and other instruments necessary in21
the exercise of the powers and functions of the district under this Section.22
(9) To pledge or assign any monies, fees, charges, or other revenues and23
any proceeds derived by the district from the sale of bonds and other contracts24
or rights of the district.25
(10) To employ such employees, to make use of such persons as the26
parish governing authority may make available to the district for its use, and27
to employ or otherwise retain the services of accountants, financial advisors,28
underwriters, attorneys, engineers, and such other consultants as may be29 SB NO. 278
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required, in the judgment of the governing authority, and to fix and pay their1
compensation.2
(11) To exercise any and all other powers necessary to accomplish the3
purposes set forth herein.4
F. Authority to incur debt. (1) For any of its lawful purposes, the5
district governing authority may issue bonds secured by and payable from a6
pledge of the proceeds of the ad valorem taxes and the non ad valorem7
assessments authorized by this Section. The bonds shall have such form,8
characteristics, and details and shall be issued in accordance with this9
Subsection and all other laws applicable to the issuance of bonds by political10
subdivisions including but not limited to Article VI, Section 35 of the11
Constitution of Louisiana and Part IV of Chapter 11 and Chapters 13, 13-A, 14,12
and 14-A of Title 39 of the Louisiana Revised Statutes of 1950.13
(2) The district governing authority shall authorize the issuance of bonds14
by adoption of a resolution. It may not adopt a resolution authorizing the15
issuance of general obligation bonds until a proposition authorizing the funding16
of the tax or assessment into bonds and stating the purpose or purposes for17
which the bonds will be issued is approved by a majority of the qualified district18
electors voting on the proposition at an election held for that purpose and19
conducted in accordance with the Louisiana Election Code.20
(3) The bonds shall be of such series, bear such date or dates, be serial21
or term bonds, mature at such time or times no later than thirty years from22
their date, bear interest at such rate or rates payable on such date or dates, be23
in such denomination, be in such form, carry such registration and24
exchangeability provisions, be payable in such medium of payment and at such25
place or places, be subject to such terms of redemption, and be entitled to such26
priorities on the tax or assessment as the resolution authorizing such bonds may27
provide.28
(4) The bonds shall be executed in the name of the district by the manual29 SB NO. 278
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or facsimile signatures of such official or officials as may be designated in the1
resolution authorizing their issuance. If any officer whose manual or facsimile2
signature appears on any bond ceases to be such officer before the delivery of3
such bonds, such signature nevertheless shall be valid and sufficient for all4
purposes as if he had remained in office until such delivery. The resolution may5
provide for authentication of the bonds by the fiscal agent thereunder.6
(5) The commissioners, officers, or employees of the district or any other7
person executing the bonds of the district, while acting within the scope of their8
authority, shall not be personally liable for the bonds nor be subject to any9
personal liability or accountability by reason of the issuance, sale, and delivery10
thereof.11
(6) The holders of any bonds issued hereunder shall have such rights12
and remedies as may be provided in the resolution authorizing the issuance of13
the bonds, including but not by way of limitation, appointment of a trustee for14
bondholders and any other available civil action to compel compliance with the15
terms and provisions of the bonds and the resolution.16
(7)(a) Until all bonds issued pursuant to this Subsection have been17
retired as to principal and interest or irrevocable provision otherwise made for18
their complete redemption and payment in principal, interest, and redemption19
premium if any, neither the legislature, the district, nor any other authority20
may act to:21
(i) Impair any obligation of contract for the benefit of the holders of the22
bonds.23
(ii) Discontinue or decrease the tax or assessment or permit to be24
discontinued or decreased the tax or assessment in anticipation of the collection25
of which such bonds have been issued.26
(iii) Make any change in the allocation and dedication of the proceeds27
of such tax that would diminish the amount of the tax revenues to be received28
by the district.29 SB NO. 278
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(b) There is hereby vested in the holders of such bonds a contract right1
in the provisions of this Subsection.2
(8) Bonds issued pursuant to this Subsection shall have all the qualities3
of negotiable paper and shall constitute negotiable instruments under applicable4
state law. They shall not be invalid for any irregularity or defect in the5
proceedings for the issuance and sale thereof and shall be incontestable in the6
hands of bona fide purchasers or holders for value.7
(9) All bonds and the income therefrom shall be exempt from taxation8
by the state and any political subdivision thereof. The bonds shall be legal and9
authorized investments for banks, savings banks, insurance companies,10
homestead and building and loan associations, trustees, and other fiduciaries11
and may be used for deposit with any officer, board, or political subdivision of12
the state in any case where, by present or future laws, deposit of security is13
required.14
(10) All bonds issued shall be advertised for sale on sealed bids. The15
district may reject any and all bids. If the bonds are not sold pursuant to the16
advertisement, they may be sold by the commission at private sale within sixty17
days after the date advertised for the reception of sealed bids, but no private18
sale shall be made at a price less than the highest bid received. If not so sold,19
the bonds shall be readvertised as prescribed by this Paragraph.20
(11) The proceeds derived from the sale of bonds shall be used21
exclusively by the issuer for the purpose or purposes for which the bonds are22
authorized to be issued, but the purchasers of the bonds shall not be obligated23
to see to the application thereof.24
Section 2. This Act shall become effective upon signature by the governor or, if not25
signed by the governor, upon expiration of the time for bills to become law without signature26
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If27
vetoed by the governor and subsequently approved by the legislature, this Act shall become28
effective on the day following such approval.29 SB NO. 278
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Michael Bell.
DIGEST
Amedee (SB 278)
Proposed law authorizes the governing authority of Ascension Parish to create special taxing
districts for funding infrastructure development.
Proposed law requires that the parish governing authority hold a public hearing before
creating such a district. Provides that the parish governing authority may serve as the
governing authority of such a district or may provide for the appointment of a governing
authority. Authorizes any such district to finance, fund, plan, establish, acquire, construct
or reconstruct, enlarge or extend, equip, operate, and maintain a wide variety of specified
infrastructure projects.
Proposed law authorizes a district to levy taxes as follows:
(1)An ad valorem tax not to exceed 20 mills for any lawful purpose of the district.
Provides that not more than three mills of such tax may be dedicated to or used for
ordinary operating expenses of the district.
(2)A benefit special assessment to finance district facilities and projects. Provides that
the amount assessed against each property in the district shall be determined by
apportioning the costs of the improvements according to benefits received.
(3)A maintenance special assessment to finance maintenance and preservation of
district facilities and projects. Provides that the amount assessed against each
property in the district shall be determined by apportioning the costs of the
improvements according to benefits received.
Proposed law grants a district the following additional powers and duties:
(1)To adopt bylaws.
(2)To adopt and alter an official seal.
(3)To maintain an office and to occupy space made available by the city-parish
governing authority.
(4)To sue and to be sued.
(5)To receive, administer, and comply with the conditions and requirements respecting
any gift, grant, guarantee, subsidy, or donation of any property or money.
(6)To acquire and to hold and use any franchise or property.
(7)To borrow money and issue bonds.
(8)To make and execute contracts.
(9)To pledge or assign any revenues.
(10)To employ such employees, to make use of such persons as the city-parish governing
authority may make available to the district, and to employ or otherwise retain the
services of accountants, financial advisors, underwriters, attorneys, engineers, and
such other consultants. SB NO. 278
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(11)To exercise any and all other powers necessary to accomplish the purposes set forth
herein.
Proposed law authorizes the district to issue bonds secured by the ad valorem taxes and the
non ad valorem assessments. Requires voter approval for the issuance of general obligation
bonds.
Proposed law retains present constitution and present law and provides that bonds issued
pursuant to proposed law shall be in accordance with present constitution and present law.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 33:4690.13)