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Regular Session, 2014
SENATE BILL NO. 617
BY SENATOR AMEDEE
LOCAL AGENCIES. Provides relative to the creation of Ascension Parish Road
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 road infrastructure development districts; to provide relative to the3
authority of such districts to undertake new residential road projects and to finance4
them by levying taxes and assessments and incurring debt; to provide relative to5
taxes, assessments, and debt; to provide for general powers and duties of a district;6
to 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 Road Infrastructure Development Districts11
A. Findings and purpose. (1) At the request of the governing authority12
of Ascension Parish, the legislature finds that the traditional method of13
financing new residential road infrastructure developments by, separate taxes14
or assessments for each individual road improvement project, though very15
appropriate in many cases, may not be the best way to provide for multiple road16
improvement projects in a relatively small geographic area. The legislature17 SB NO. 617
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finds that an effective alternative method of financing new road infrastructure1
improvements in a small geographic area is to finance the entire undertaking2
as a single package. It is the purpose of this Section to authorize the levy of ad3
valorem taxes and non ad valorem assessments for financing only new4
residential road infrastructure improvement projects in Ascension Parish.5
(2) The legislature further finds that given the complexity of such6
projects and the geographic compactness of the areas contemplated for such7
development, the governing authority of Ascension Parish may wish to create8
special taxing districts having the authority to plan and execute the new9
residential road infrastructure development projects and to levy the ad valorem10
taxes and non ad valorem assessments authorized by this Section. Even if the11
governing authority of the parish serves as the governing authority of the12
district, there are proven political and legal advantages to the use of special13
taxing districts for carrying out governmental functions. It is further the14
purpose of this Section to authorize the governing authority of Ascension Parish15
to create special taxing districts authorized to do those things necessary, as16
prescribed in this Section, to finance, execute, and maintain new residential17
road infrastructure development projects such as those described in this18
Subsection.19
B. Creation. Without limiting any authority of the governing authority20
of the parish of Ascension as provided in the government home rule charter, the21
governing authority may create special taxing districts within the parish for the22
purpose of new residential road infrastructure improvement projects subject23
to the provisions of this Section. The parish governing authority may not create24
such a district until it has held two public hearings on the issue. Any such25
district shall be a political subdivision of the state as defined in Article VI,26
Section 44 of the Constitution of Louisiana and shall have all authority granted27
by the constitution, the home rule charter of Ascension Parish, and this Section.28
The parish governing authority shall serve as the governing authority of any29 SB NO. 617
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such special district. The parish governing authority may, at its discretion,1
require as a condition of creation of the road infrastructure development2
district that title to, control of, and responsibility for maintenance of any or all3
road infrastructure projects within the district be transferred to the parish4
governing authority in accordance with its existing ordinances and practices.5
C. Special powers. The district may, subject to applicable regulatory6
jurisdiction and permitting authority of other public entities and officials,7
finance, fund, plan, establish, acquire, construct or reconstruct, enlarge or8
extend, equip, operate, and maintain systems, facilities, and basic road9
infrastructures for the following:10
(1) Bridges or culverts that may be needed across or in any drain, ditch,11
canal, floodway, holding basin, excavation, public highway, tract, grade, fill, or12
cut, and roadways over levees and embankments, and may construct any and13
all of such works and improvements across, through, or over any public right-14
of-way, highway, grade, fill, or cut.15
(2) District roads equal to or exceeding parish specifications and street16
lights.17
D. Taxing authority. (1)(a) The governing authority of a special taxing18
district created as provided in this Section may levy and collect, in the same19
manner and at the same time as all other ad valorem taxes in the parish are20
levied and collected, a special ad valorem tax, not to exceed fifteen mills, upon21
all taxable, immovable property situated within the boundaries of the district.22
The ad valorem tax provided for herein shall be in addition to all other ad23
valorem taxes provided for by law.24
(b) The proceeds of the tax authorized by this Paragraph may only be25
used for road projects within the district.26
(2)(a) To maintain, operate, and preserve the facilities and road projects27
of the district, the district governing authority may levy a maintenance special28
assessment. The district governing authority shall determine the amount of the29 SB NO. 617
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assessment based upon a report of the district's engineer and shall assess lands1
benefitted by the road improvement, such assessments to be apportioned in2
proportion to the benefits received by each tract of land. Benefits received shall3
be determined on a pro rata rate by the amount of road frontage on each lot.4
Assessments shall be collected and enforced by the tax collector in the same5
manner and at the same time as ad valorem taxes. Maintenance special6
assessments shall be a lien on the property against which assessed until paid.7
(b) Any non ad valorem assessments shall be sent to the assessor's office8
no later than April 30
th
for each new district for an assessment for the following9
fiscal year and shall not exceed two hundred dollars per year per lot.10
E. General powers and duties. The governing authority of the district11
shall have the following additional powers and duties:12
(1) To adopt bylaws for the regulation of its affairs and the conduct of13
its business.14
(2) To adopt an official seal and alter the seal at its pleasure.15
(3) To maintain an office at such place as it may designate and to occupy16
space for such purposes as may be made available by the parish governing17
authority.18
(4) To sue and to be sued.19
(5) To receive, administer, and comply with the conditions and20
requirements respecting any gift, grant, guarantee, subsidy, or donation of any21
property or money.22
(6) To acquire, by any lawful means, property, including rights-of-way,23
and to hold and use any franchise or property, whether real, personal, or mixed,24
tangible or intangible, necessary or desirable for carrying out the objects and25
purposes of the district.26
(7) To borrow money and issue bonds or obligations of the district in the27
manner provided by this Section and to refund the same.28
(8) To make and execute contracts and other instruments necessary in29 SB NO. 617
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the exercise of the powers and functions of the district under this Section.1
(9) To pledge or assign any monies, fees, charges, or other revenues and2
any proceeds derived by the district from the sale of bonds and other contracts3
or rights of the district.4
(10) To employ such employees, to make use of such persons as the5
parish governing authority may make available to the district for its use, and6
to employ or otherwise retain the services of accountants, financial advisors,7
underwriters, attorneys, engineers, and such other consultants as may be8
required, in the judgment of the governing authority, and to fix and pay their9
compensation.10
(11) To exercise any and all other powers necessary to accomplish the11
purposes set forth herein.12
(12) Nothing in this Section shall be construed as to vest or confer the13
power of expropriation on the parish governing authority or any special taxing14
district.15
F. Authority to incur debt. (1) For any of its lawful purposes, the16
district governing authority may issue bonds secured by and payable from a17
pledge of the proceeds of the ad valorem taxes and the non ad valorem18
assessments authorized by this Section. The bonds shall have such form,19
characteristics, and details and shall be issued in accordance with this20
Subsection and all other laws applicable to the issuance of bonds by political21
subdivisions including but not limited to Article VI, Section 35 of the22
Constitution of Louisiana and Part IV of Chapter 11 and Chapters 13, 13-A, 14,23
and 14-A of Title 39 of the Louisiana Revised Statutes of 1950.24
(2) The district governing authority shall authorize the issuance of bonds25
by adoption of a resolution. It may not adopt a resolution authorizing the26
issuance of general obligation bonds until a proposition authorizing the funding27
of the tax or assessment into bonds and stating the purpose or purposes for28
which the bonds will be issued is approved by a majority of the qualified district29 SB NO. 617
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electors voting on the proposition at an election held for that purpose and1
conducted in accordance with the Louisiana Election Code.2
(3) The bonds shall be of such series, bear such date or dates, be serial3
or term bonds, mature at such time or times no later than thirty years from4
their date, bear interest at such rate or rates payable on such date or dates, be5
in such denomination, be in such form, carry such registration and6
exchangeability provisions, be payable in such medium of payment and at such7
place or places, be subject to such terms of redemption, and be entitled to such8
priorities on the tax or assessment as the resolution authorizing such bonds may9
provide.10
(4) The bonds shall be executed in the name of the district by the manual11
or facsimile signatures of such official or officials as may be designated in the12
resolution authorizing their issuance. If any officer whose manual or facsimile13
signature appears on any bond ceases to be such officer before the delivery of14
such bonds, such signature nevertheless shall be valid and sufficient for all15
purposes as if he had remained in office until such delivery. The resolution may16
provide for authentication of the bonds by the fiscal agent thereunder.17
(5) The commissioners, officers, or employees of the district or any other18
person executing the bonds of the district, while acting within the scope of their19
authority, shall not be personally liable for the bonds nor be subject to any20
personal liability or accountability by reason of the issuance, sale, and delivery21
thereof.22
(6) The holders of any bonds issued hereunder shall have such rights23
and remedies as may be provided in the resolution authorizing the issuance of24
the bonds, including but not by way of limitation, appointment of a trustee for25
bondholders and any other available civil action to compel compliance with the26
terms and provisions of the bonds and the resolution.27
(7)(a) Until all bonds issued pursuant to this Subsection have been28
retired as to principal and interest or irrevocable provision otherwise made for29 SB NO. 617
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their complete redemption and payment in principal, interest, and redemption1
premium if any, neither the legislature, the district, nor any other authority2
may act to:3
(i) Impair any obligation of contract for the benefit of the holders of the4
bonds.5
(ii) Discontinue or decrease the tax or assessment or permit to be6
discontinued or decreased the tax or assessment in anticipation of the collection7
of which such bonds have been issued.8
(iii) Make any change in the allocation and dedication of the proceeds9
of such tax that would diminish the amount of the tax revenues to be received10
by the district.11
(b) There is hereby vested in the holders of such bonds a contract right12
in the provisions of this Subsection.13
(8) Bonds issued pursuant to this Subsection shall have all the qualities14
of negotiable paper and shall constitute negotiable instruments under applicable15
state law. They shall not be invalid for any irregularity or defect in the16
proceedings for the issuance and sale thereof and shall be incontestable in the17
hands of bona fide purchasers or holders for value.18
(9) All bonds and the income therefrom shall be exempt from taxation19
by the state and any political subdivision thereof. The bonds shall be legal and20
authorized investments for banks, savings banks, insurance companies,21
homestead and building and loan associations, trustees, and other fiduciaries22
and may be used for deposit with any officer, board, or political subdivision of23
the state in any case where, by present or future laws, deposit of security is24
required.25
(10) All bonds issued shall be advertised for sale on sealed bids. The26
district may reject any and all bids. If the bonds are not sold pursuant to the27
advertisement, they may be sold by the commission at private sale within sixty28
days after the date advertised for the reception of sealed bids, but no private29 SB NO. 617
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sale shall be made at a price less than the highest bid received. If not so sold,1
the bonds shall be readvertised as prescribed by this Paragraph.2
(11) The proceeds derived from the sale of bonds shall be used3
exclusively by the issuer for the purpose or purposes for which the bonds are4
authorized to be issued, but the purchasers of the bonds shall not be obligated5
to see to the application thereof.6
G. Exceptions. This Section shall not apply to partitions of family7
property.8
H. Termination of Act. This Act shall terminate on August 1, 2024.9
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 and the following digest, which constitutes no part
of the legislative instrument, were prepared by Michael Bell.
DIGEST
Amedee (SB 617)
Proposed law authorizes the governing authority of Ascension Parish to create special taxing
districts for funding new residential road infrastructure development only.
Proposed law requires that the parish governing authority hold two public hearings before
creating such a district. Provides for the parish governing authority to serve as the governing
authority of such a district. Authorizes any such district to finance, fund, plan, establish,
acquire, construct or reconstruct, enlarge or extend, equip, operate, and maintain specified
road infrastructure projects.
Proposed law authorizes a district to levy taxes as follows:
(1)An ad valorem tax not to exceed 15 mills for any lawful purpose of the district.
Provides that such tax may only be dedicated to or used for any and all road projects
within the district.
(2)A maintenance special assessment to finance maintenance and preservation of the
district's road projects. Provides that the amount assessed against each property in
the district shall be determined by apportioning the costs of the projects according
to benefits received. Further provides that the benefits received are to be determined
on a pro rata rate by the amount of road frontage on each lot and provides that
assessments shall be sent to the assessor's office no later than April 30
th
for each new
district for an assessment for the following fiscal year and shall not exceed $200 per
year per lot. SB NO. 617
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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.
(11)To exercise any and all other powers necessary to accomplish its purposes.
(12)Provides that nothing in proposed law shall be construed as to vest or confer the
power of expropriation on the parish governing authority or any special taxing
district.
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.
Proposed law provides that it shall not be applicable to partitions of family property.
Proposed law provides that it shall terminate on August 1, 2024.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 33:4690.13)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Local and Municipal Affairs
to the original bill
1. Adds provision specifically providing that proposed law shall not be
construed as to vest or confer expropriation authority. SB NO. 617
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2. Adds an exception to proposed law for partitions of family property.
3. Adds a sunset date.