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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 for new residential22
developments within the parish for the purpose of new residential road23
infrastructure improvement projects subject to the provisions of this Section.24
The parish governing authority may not create such a district until it has held25
two public hearings on the issue. Any such district shall be a political26
subdivision of the state as defined in Article VI, Section 44 of the Constitution27
of Louisiana and shall have all authority granted by the constitution, the home28
rule charter of Ascension Parish, and this Section. The parish governing29 SB NO. 617
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authority shall serve as the governing authority of any such special district. The1
parish governing authority may, at its discretion, require as a condition of2
creation of the road infrastructure development district that title to, control of,3
and responsibility for maintenance of any or all road infrastructure projects4
within the district be transferred to the parish governing authority in5
accordance with its existing ordinances and practices.6
C. Special powers. The district may, subject to applicable regulatory7
jurisdiction and permitting authority of other public entities and officials,8
finance, fund, plan, establish, acquire, construct or reconstruct, enlarge or9
extend, equip, operate, and maintain systems, facilities, and basic road10
infrastructures for the following:11
(1) Bridges or culverts that may be needed across or in any drain, ditch,12
canal, floodway, holding basin, excavation, public highway, tract, grade, fill, or13
cut, and roadways over levees and embankments, and may construct any and14
all of such works and improvements across, through, or over any public right-15
of-way, highway, grade, fill, or cut.16
(2) District roads equal to or exceeding parish specifications and street17
lights.18
D. Taxing authority. (1)(a) The governing authority of a special taxing19
district created as provided in this Section may levy and collect, in the same20
manner and at the same time as all other ad valorem taxes in the parish are21
levied and collected, a special ad valorem tax, not to exceed fifteen mills, upon22
all taxable, immovable property situated within the boundaries of the district.23
The ad valorem tax provided for herein shall be in addition to all other ad24
valorem taxes provided for by law.25
(b) The proceeds of the tax authorized by this Paragraph may be used26
only for road projects within the district.27
(2)(a) To maintain, operate, and preserve the facilities and road projects28
of the district, the district governing authority may levy a maintenance special29 SB NO. 617
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assessment. The district governing authority shall determine the amount of the1
assessment based upon a report of the district's engineer and shall assess lands2
benefitted by the road improvement, such assessments to be apportioned in3
proportion to the benefits received by each tract of land. Benefits received shall4
be determined on a pro rata basis by the amount of road frontage on each lot.5
Assessments shall be collected and enforced by the tax collector in the same6
manner and at the same time as ad valorem taxes. Maintenance special7
assessments shall be a lien on the property against which assessed until paid.8
(b) Any non ad valorem assessments shall be sent to the assessor's office9
no later than April thirtieth for each new district for an assessment for the10
following fiscal year and shall not exceed two hundred dollars per year per lot.11
E. General powers and duties. The governing authority of the district12
shall have the following additional powers and duties:13
(1) To adopt bylaws for the regulation of its affairs and the conduct of14
its business.15
(2) To adopt an official seal and alter the seal at its pleasure.16
(3) To maintain an office at such place as it may designate and to occupy17
space for such purposes as may be made available by the parish governing18
authority.19
(4) To sue and to be sued.20
(5) To receive, administer, and comply with the conditions and21
requirements respecting any gift, grant, guarantee, subsidy, or donation of any22
property or money.23
(6) To acquire, by any lawful means, property, including rights-of-way,24
and to hold and use any franchise or property, whether immovable, movable or25
mixed, corporeal or incorporeal, necessary or desirable for carrying out the26
objects and purposes of the district.27
(7) To borrow money and issue bonds or obligations of the district in the28
manner provided by this Section and to refund the same.29 SB NO. 617
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(8) To make and execute contracts and other instruments necessary in1
the exercise of the powers and functions of the district under this Section.2
(9) To pledge or assign any monies, fees, charges, or other revenues and3
any proceeds derived by the district from the sale of bonds and other contracts4
or rights of the district.5
(10) To employ such employees, to make use of such persons as the6
parish governing authority may make available to the district for its use, and7
to employ or otherwise retain the services of accountants, financial advisors,8
underwriters, attorneys, engineers, and such other consultants as may be9
required, in the judgment of the governing authority, and to fix and pay their10
compensation.11
(11) To exercise any and all other powers necessary to accomplish the12
purposes set forth herein.13
(12) Nothing in this Section shall be construed as to vest or confer the14
power of expropriation on the parish governing authority or any special taxing15
district.16
F. Authority to incur debt. (1) For any of its lawful purposes, the17
district governing authority may issue bonds secured by and payable from a18
pledge of the proceeds of the ad valorem taxes and the non ad valorem19
assessments authorized by this Section. The bonds shall have such form,20
characteristics, and details and shall be issued in accordance with this21
Subsection and all other laws applicable to the issuance of bonds by political22
subdivisions including but not limited to Article VI, Section 35 of the23
Constitution of Louisiana and Part IV of Chapter 11 and Chapters 13, 13-A, 14,24
and 14-A of Title 39 of the Louisiana Revised Statutes of 1950.25
(2) The district governing authority shall authorize the issuance of bonds26
by adoption of a resolution. It may not adopt a resolution authorizing the27
issuance of general obligation bonds until a proposition authorizing the funding28
of the tax or assessment into bonds and stating the purpose or purposes for29 SB NO. 617
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which the bonds will be issued is approved by a majority of the qualified district1
electors voting on the proposition at an election held for that purpose and2
conducted in accordance with the Louisiana Election Code.3
(3) The bonds shall be of such series, bear such date or dates, be serial4
or term bonds, mature at such time or times no later than thirty years from5
their date, bear interest at such rate or rates payable on such date or dates, be6
in such denomination, be in such form, carry such registration and7
exchangeability provisions, be payable in such medium of payment and at such8
place or places, be subject to such terms of redemption, and be entitled to such9
priorities on the tax or assessment as the resolution authorizing such bonds may10
provide.11
(4) The bonds shall be executed in the name of the district by the manual12
or facsimile signatures of such official or officials as may be designated in the13
resolution authorizing their issuance. If any officer whose manual or facsimile14
signature appears on any bond ceases to be such officer before the delivery of15
such bonds, such signature nevertheless shall be valid and sufficient for all16
purposes as if he had remained in office until such delivery. The resolution may17
provide for authentication of the bonds by the fiscal agent thereunder.18
(5) The commissioners, officers, or employees of the district or any other19
person executing the bonds of the district, while acting within the scope of their20
authority, shall not be personally liable for the bonds nor be subject to any21
personal liability or accountability by reason of the issuance, sale, and delivery22
thereof.23
(6) The holders of any bonds issued hereunder shall have such rights24
and remedies as may be provided in the resolution authorizing the issuance of25
the bonds, including but not by way of limitation, appointment of a trustee for26
bondholders and any other available civil action to compel compliance with the27
terms and provisions of the bonds and the resolution.28
(7)(a) Until all bonds issued pursuant to this Subsection have been29 SB NO. 617
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retired as to principal and interest or irrevocable provision otherwise made for1
their complete redemption and payment in principal, interest, and redemption2
premium if any, neither the legislature, the district, nor any other authority3
may act to:4
(i) Impair any obligation of contract for the benefit of the holders of the5
bonds.6
(ii) Discontinue or decrease the tax or assessment or permit to be7
discontinued or decreased the tax or assessment in anticipation of the collection8
of which such bonds have been issued.9
(iii) Make any change in the allocation and dedication of the proceeds10
of such tax that would diminish the amount of the tax revenues to be received11
by the district.12
(b) There is hereby vested in the holders of such bonds a contract right13
in the provisions of this Subsection.14
(8) Bonds issued pursuant to this Subsection shall have all the qualities15
of negotiable paper and shall constitute negotiable instruments under applicable16
state law. They shall not be invalid for any irregularity or defect in the17
proceedings for the issuance and sale thereof and shall be incontestable in the18
hands of bona fide purchasers or holders for value.19
(9) All bonds and the income therefrom shall be exempt from taxation20
by the state and any political subdivision thereof. The bonds shall be legal and21
authorized investments for banks, savings banks, insurance companies,22
homestead and building and loan associations, trustees, and other fiduciaries23
and may be used for deposit with any officer, board, or political subdivision of24
the state in any case where, by present or future laws, deposit of security is25
required.26
(10) All bonds issued shall be advertised for sale on sealed bids. The27
district may reject any and all bids. If the bonds are not sold pursuant to the28
advertisement, they may be sold by the commission at private sale within sixty29 SB NO. 617
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days after the date advertised for the reception of sealed bids, but no private1
sale shall be made at a price less than the highest bid received. If not so sold,2
the bonds shall be readvertised as prescribed by this Paragraph.3
(11) The proceeds derived from the sale of bonds shall be used4
exclusively by the issuer for the purpose or purposes for which the bonds are5
authorized to be issued, but the purchasers of the bonds shall not be obligated6
to see to the application thereof.7
(12) The governing authority of a special taxing district shall require all8
developers to notify potential buyers of any property located within a new9
residential road infrastructure development of all potential taxes and fees.10
G. Exceptions. The provisions of this Section shall not be applicable to11
the financing of any road infrastructure projects on any property in which the12
ownership of multiple adjacent parcels of the property resides with a single13
extended family or was inherited from a single family.14
H. Termination of Act. This Act shall terminate on August 1, 2024.15
Section 2. This Act shall become effective upon signature by the governor or, if not16
signed by the governor, upon expiration of the time for bills to become law without signature17
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If18
vetoed by the governor and subsequently approved by the legislature, this Act shall become19
effective on the day following such approval.20
The original instrument was prepared by Michael Bell. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Cathy R. Wells.
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: SB NO. 617
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(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.
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 requires the governing authority of a special taxing district to require all
developers to notify potential buyers of any property located within a new residential road
infrastructure development of all potential taxes and fees.
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 the financial of any road SB NO. 617
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infrastructure projects on any property in which the ownership of multiple adjacent parcels
of the property resides with a single extended family or was inherited from a single family.
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.
2. Adds an exception to proposed law for partitions of family property.
3. Adds a sunset date.
Senate Floor Amendments to engrossed bill
1. Requires all developers to notify potential buyers of any property located
within a new residential road infrastructure development of all potential taxes
and fees that may be levied.
2. Adds provisions that proposed law is not applicable to the financing of any
road infrastructure projects on any property in which the ownership of
multiple adjacent parcels of the property resides with a single extended
family or was inherited from a single family.
3. Makes technical changes.