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Regular Session, 2014
SENATE BILL NO. 573
BY SENATOR CHABERT
PUBLIC TRANSPORTATION. Creates the office of multimodal commerce in the
Department of Economic Development and transfers certain powers, duties, and resources
from the Department of Transportation and Development to the Department of Economic
Development. (gov sig)
AN ACT1
To amend and reenact R.S. 36:101(B) and (C)(1), the introductory paragraph of2
104(B)(1)(a), 107(A), and 108(A) and to enact R.S. 36:110, relative to the creation3
of an office of multimodal commerce in the Department of Economic Development;4
to provide for a transfer of certain powers, duties, responsibilities, and corresponding5
department employees, equipment, facilities, funding, and statutory entities from the6
Department of Transportation and Development to such office and department; to7
restructure the Department of Economic Development; to create the Multimodal8
Commerce Transition Commission and provide for the creation of a transition plan9
by such commission; and to provide for related matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 36:101(B) and (C)(1), the introductory paragraph of 104(B)(1)(a),12
107(A), and 108(A) are hereby amended and reenacted and R.S. 36:110 is hereby enacted13
to read as follows:14
§101. Department of Economic Development; creation; domicile; composition;15
purposes and functions16
* * *17 SB NO. 573
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B. The Department of Economic Development, through its offices and1
officers, shall be responsible for fostering the growth of industry and other2
commercial enterprises in Louisiana and multimodal commerce that will contribute3
to the overall improvement of the economy of the state. The department shall4
promote the advantages of Louisiana to out-of-state business and industry, facilitate5
the expansion of existing enterprises, administer, provide for, plan, and facilitate6
multimodal transportation, railroad, public mass transit, public transportation,7
and water transportation systems, and coordinate with other state agencies and8
units of local government plans and programs aimed at developing optimum9
conditions for new and expanding industrial and commercial enterprises in10
Louisiana, including effective and efficient multimodal transportation systems11
for such enterprises.12
C.(1) The Department of Economic Development shall be composed of the13
executive office of the secretary, the office of management and finance, the office14
of multimodal commerce, the office of business development, and such other15
offices as shall be created by law.16
* * *17
§104. Powers and duties of the secretary of economic development18
* * *19
B. The secretary shall have the authority to:20
(1)(a) Except as otherwise specifically provided in R.S. 36:110, 801, and R.S.21
36:803:22
* * *23
§107. Assistant secretaries24
A. Each office within the Department of Economic Development, except the25
office of management and finance, and the office of entertainment industry26
development, and the office of multimodal commerce, shall be under the27
immediate supervision and direction of an assistant secretary. The office of28
multimodal commerce shall be under the immediate supervision and direction29 SB NO. 573
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of a commissioner of multimodal commerce. The assistant secretary and the1
commissioner of each such office shall be appointed by the governor with the2
consent of the Senate. Each shall serve at the pleasure of the governor and shall be3
paid a salary which shall be fixed by the governor, which salary shall not exceed the4
amount approved for such position by the legislature while in session.5
* * *6
§108. Offices; purposes and functions7
A. The purposes for which the offices of the Department of Economic8
Development are created shall be as set forth in this Section and R.S. 36:110.9
* * *10
§110. The Department of Economic Development; restructuring; transition11
A. The legislature finds that intrastate transportation is a crucial factor12
in developing the economy of Louisiana, but under the current structure of state13
government is not given the attention it deserves. Under present law, the14
important responsibility of providing, planning, and facilitating multimodal15
transportation, railroads, public mass transit, public transportation, and water16
transportation systems is buried in the structure of the Department of17
Transportation and Development. That large department is tasked with many18
different responsibilities and duties which make it difficult for it to19
administratively focus on all of them and at the same time accomplish its20
important function of providing efficient and cost-effective construction and21
maintenance of roads, highways, expressways, bridges, drainage, and flood22
control systems. Therefore, in order to give higher visibility and action to, and23
allow greater concentration on, the equally important responsibilities of24
administering, providing for, planning, and facilitating multimodal25
transportation, railroad, public mass transit, public transportation, and water26
transportation systems, the legislature hereby expresses its intention to transfer27
those administrative responsibilities to the office of multimodal commerce28
within the Department of Economic Development, restructured as provided for29 SB NO. 573
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in this Section, capable of giving them the close focus they deserve.1
B. Notwithstanding any other provision of law to the contrary, in order2
to implement the intention of the legislature as expressed in Subsection A of this3
Section, the provisions of this Section shall supercede any contrary or4
contradictory provisions of Chapter 11 of this Title or any other law.5
C. All statutory authority for the existence of the Department of6
Economic Development as structured on the initial effective date of this Section7
shall cease as of January 1, 2016.8
D.(1) Except as provided in Paragraph (2) of this Subsection, the powers,9
duties, responsibilities and corresponding department employees, equipment,10
facilities, and funding of the Department of Transportation and Development11
with respect to the function of administering, managing, providing for,12
planning, and facilitating multimodal transportation, railroads, public mass13
transit, public transportation, and water transportation systems, and related14
statutory entities made a part of such department, shall be transferred to the15
office of multimodal commerce of the Department of Economic Development16
as structured in Subsection E of this Section, effective January 1, 2016.17
(2)(a) In order to avoid duplication and extra expense to government,18
and in order to efficiently use existing expertise:19
(i) The transfer of function provided for in Paragraph (1) of this20
Subsection shall not include those employees, equipment, and facilities of the21
Department of Transportation and Development which are concerned with22
engineering and construction of projects, permitting, or the funding necessary23
for costs related to such employees, equipment, and facilities, as determined by24
the Multimodal Commerce Transition Commission and its approved plan25
provided for in Subsection F of this Section. However, the commission's26
approved transition plan shall require the Department of Transportation and27
Development to provide the services and expertise of such employees,28
equipment, and facilities upon the request of the office of multimodal commerce29 SB NO. 573
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of the Department of Economic Development at no cost to such office.1
(ii) The initial level of funding for the employees, equipment, facilities,2
and funding transferred pursuant to this Subsection, and for the administration3
thereof, shall not exceed an amount equal to the percentage that such funding4
bears to the total funding of the Department of Transportation and5
Development in the fiscal year prior to the transfer.6
(b) Any powers, duties, responsibilities and corresponding department7
employees, equipment, facilities, and funding of the Department of8
Transportation and Development with respect to federal programs on rail9
safety and the administration of federal rail safety and hazard mitigation funds10
and the like shall remain with the Department of Transportation and11
Development.12
E.(1) The Department of Economic Development shall be restructured,13
effective January 1, 2016, to be composed of the offices provided for on that14
date and the office of multimodal commerce.15
(2)(a) The office of multimodal commerce shall be under the supervision16
of a commissioner of multimodal commerce, and shall be vested with the17
powers, duties, responsibilities, budgetary authority, employees, equipment,18
facilities, and funding provided for in Subsection D of this Section. The19
commissioner shall be authorized to employ, appoint, remove, assign, and20
promote such personnel as is necessary for the efficient administration required21
in performing these responsibilities, in accordance with applicable civil service22
laws, rules, and applicable laws. The secretary and deputy secretary of the23
department shall have no authority to exercise, review, administer, or24
implement the powers, duties, functions, and responsibilities provided or25
authorized for the office pursuant to this Section. However, the undersecretary26
of the department shall, under the supervision and control of the secretary,27
perform and administer those functions of the office which he is required to28
perform and administer to the extent provided for in this Section.29 SB NO. 573
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(b) Such powers, duties, responsibilities, budgetary authority, employees,1
equipment, facilities, and funding of the office of multimodal commerce shall2
be allocated among the following divisions which shall be provided for by law3
in such office:4
(i) Commercial Road Transportation.5
(ii) Public Transit.6
(iii) Ports and Harbors.7
(iv) Rail.8
(v) Maritime Industry and Waterways.9
(vi) Offshore Terminal Authority.10
(3) Except for the office of multimodal commerce, the remainder of the11
Department of Economic Development shall retain the same organizational12
structure as it has prior to January 1, 2016.13
F.(1) The Multimodal Commerce Transition Commission is hereby14
established within the office of the governor. It shall be composed of the15
following:16
(a) The commissioner of administration, or his designee, who shall be17
chair of the commission.18
(b) The secretary of the Department of Economic Development, or his19
designee.20
(c) The secretary of the Department of Transportation and Development,21
or his designee.22
(d) The chairs of the Senate and House committees on Transportation,23
Highways, and Public Works, or their designees.24
(e) The chairs of the Senate Committee on Commerce, Consumer25
Protection, and International Affairs and the House Committee on Commerce,26
or their designees.27
(f) A representative of the Ports Association of Louisiana selected by its28
board of directors.29 SB NO. 573
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(g) A representative of the Louisiana Association of Waterway Operators1
and Shipyards selected by its board of directors.2
(h) An airport executive selected by the president of the Senate.3
(h) A representative of the Louisiana Motor Transport Association4
selected by its board of directors.5
(i) A representative of the Louisiana Railroad Association selected by the6
speaker of the House of Representatives.7
(j) The chairman of the Louisiana Board of International Commerce, or8
his designee.9
(k) The chairman of the board of the Offshore Marine Service10
Association, or his designee.11
(2) The Multimodal Commerce Transition Commission shall meet and12
develop a transition plan for the 2015 Regular Session of the Legislature for the13
following:14
(a) The orderly and efficient transfer from the Department of15
Transportation and Development to the office of multimodal commerce of the16
Department of Economic Development of the powers, duties, responsibilities17
and corresponding department employees, equipment, facilities, and funding18
with respect to the function of administering, managing, providing for,19
planning, and facilitating multimodal transportation, railroads, public mass20
transit, public transportation, and water transportation systems, and related21
statutory entities made a part of the Department of Transportation and22
Development as provided for in Subsection D of this Section, to become effective23
on January 1, 2016.24
(b) The organizational structure of the office of multimodal commerce,25
with an allocation of the powers, duties, responsibilities, officers, equipment,26
and employees among the specific divisions provided for in Subparagraph27
(E)(2)(b) of this Section, to become effective on January 1, 2016.28
(c) Proposed legislation for the 2015 Regular Session of the Legislature29 SB NO. 573
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necessary to implement the transition plan on January 1, 2016.1
(3) A majority of the members of the commission shall constitute a2
quorum for the purpose of taking any action, and actions of the commission3
may be taken by an affirmative vote of the members of the commission present.4
(4) The transition plan of the Multimodal Commerce Transition5
Commission shall be presented to the Senate Committee on Commerce,6
Consumer Protection, and International Affairs and the House Committee on7
Commerce for their review, amendment, and approval no later than February8
1, 2015.9
Section 2. This Act shall become effective upon signature by the governor or, if not10
signed by the governor, upon expiration of the time for bills to become law without signature11
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If12
vetoed by the governor and subsequently approved by the legislature, this Act shall become13
effective on the day following such approval.14
The original instrument was prepared by Riley Boudreaux. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Nancy Vicknair.
DIGEST
Chabert (SB 573)
Proposed law terminates all statutory authority for the existence of the Department of
Economic Development (DED) on January 1, 2016.
Proposed law requires the transfer to the office of multimodal commerce of the Department
of Economic Development, as created and structured in the proposed law effective January
1, 2016, of the powers, duties, responsibilities and corresponding department employees,
equipment, facilities, and funding of the Department of Transportation and Development
(DOTD) with respect to the function of administering, managing, providing for, planning,
and facilitating multimodal transportation, railroads, public mass transit, public
transportation, and water transportation systems, and related statutory entities made a part
of such department (hereafter called "multimodal functions").
However, in order to avoid duplication and extra expense to government, and in order to
efficiently use existing expertise:
(1)Employees, equipment, and facilities of DOTD, which are concerned with
engineering and construction of projects, permitting, or the funding necessary for
costs related to such employees, equipment, and facilities, as determined by the
Multimodal Commerce Transition Commission and its approved plan (see below)
are not transferred, but the commission's approved transition plan must require
DOTD to provide the services and expertise of such employees, equipment, and
facilities upon the request of the office of multimodal commerce, at no cost to such SB NO. 573
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office.
(2)The initial level of funding for the employees, equipment, facilities, and funding
transferred, and administration thereof, must not exceed an amount equal to the
percentage that such funding bears to the total funding of DOTD in the fiscal year
prior to the transfer.
(3)Any powers, duties, responsibilities and corresponding department employees,
equipment, facilities, and funding of DOTD with respect to federal programs on rail
safety and the administration of federal rail safety and hazard mitigation funds and
the like must remain with DOTD.
Proposed law requires DED to be restructured and re-created, effective January 1, 2016, and
shall be composed of the offices in DED provided for on that date and the office of
multimodal commerce.
Proposed law provides that the office is under the supervision of a Commissioner of
Multimodal Commerce, and is vested with the multimodal functions. The commissioner is
authorized to employ, appoint, remove, assign, and promote such personnel as is necessary
for the efficient administration required in performing those responsibilities, subject to
budgetary control of DED. The secretary and deputy secretary of the department have no
authority to exercise, review, administer, or implement the powers, duties, functions, and
responsibilities provided or authorized for the office pursuant to the proposed law. However,
the undersecretary of DED shall, under the supervision and control of the secretary, perform
and administer those functions of the office that he is required to perform and administer to
the extent provided for in present law.
Proposed law requires the multimodal functions and employees, equipment, facilities, and
funding to be allocated among the following divisions that must be provided for by law in
the office:
(1)Commercial Road Transportation.
(2)Public Transit.
(3)Ports and Harbors.
(4)Rail.
(5)Maritime Industry and Waterways.
(6)Offshore Terminal Authority.
Except for the office of multimodal commerce, the remainder of DED is to retain the same
organizational structure as DED has prior to January 1, 2016.
Proposed law establishes the Multimodal Commerce Transition Commission within the
office of the governor composed of the following:
(1)The Commissioner of Administration, or his designee, who is the chair of the
commission.
(2)The secretary of DED, or his designee.
(3)The secretary of DOTD, or his designee.
(4)The chairs of the Senate and House committees on Transportation, Highways, and
Public Works, or their designees. SB NO. 573
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(5)The chairs of the Senate Committee on Commerce, Consumer Protection, and
International Affairs and the House Committee on Commerce, or their designees.
(6)A representative of the Ports Association of Louisiana selected by its board of
directors.
(7)A representative of the Louisiana Association of Waterway Operators and Shipyards
selected by its board.
(8)An airport executive selected by the president of the Senate.
(9)A representative selected by the Louisiana Motor Transport Association selected by
its board.
(10)A representative of the Louisiana Railroad Association selected by the speaker of the
House of Representatives.
(11)The chairman of the La. Board of International Commerce, or his designee.
(12)The chairman of the board of the Offshore Marine Service Association, or his
designee.
The transition commission must meet and develop a transition plan for the 2015 Regular
Session for the following:
(1)The orderly and efficient transfer from DOTD to the office of multimodal commerce
of the multimodal functions powers, duties, responsibilities and corresponding
department employees, equipment, facilities, and funding with respect to the
multimodal functions of DOTD, to become effective on January 1, 2016.
(2)The organizational structure of the office of multimodal commerce, with an
allocation of the powers, duties, responsibilities, officers, equipment, and employees
among the specific divisions provided for in the proposed law (see above) to become
effective on January 1, 2016.
(3)Proposed legislation for the 2015 Regular Session necessary to implement the
transition plan on January 1, 2016.
Proposed law requires the transition plan to be presented to the Senate Committee on
Commerce, Consumer Protection, and International Affairs and the House Committee on
Commerce for the respective committee's review, amendment, and approval no later than
February 1, 2015.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 36:101(B), and (C)(1), 104(B)(1)(a)(intro para), 107(A), and 108(A); adds
R.S. 36:110)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the original bill
1. Revises name of department from Department of Economic Development
and Multimodal Commerce to Department of Economic Development.
2. Provides that Dept. of Transportation and Development shall provide SB NO. 573
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services and expertise in the transfer of the office of multimodal commerce
at no cost to the office.
3. Authorizes funding for administrative costs.
4. Adds a member to the Multimodal Commerce Transition Commission.
Committee Amendments Proposed by Senate Committee on Finance to the
engrossed bill
1. Technical amendments.
2. Provides for Ports Association of Louisiana designee.
Senate Floor Amendments to reengrossed bill
1. Makes technical changes.
2. Removes the aviation division from the office of multimodal commerce and
all references to aviation.
3. Removes the representative of the Louisiana Airport Managers Association
as a member of the commission.
4. Changes the date required for submission of the commission's transition plan
from prior to the 2015 Regular Session to no later than February 1, 2015.