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Regular Session, 2014
SENATE BILL NO. 638
BY SENATOR WHITE
TAX/LOCAL. Provides relative to St. George incorporation; creates the St. George
Transition District; and provides for the interim continuation of services and interim
collection of certain sales taxes. (gov sig)
AN ACT1
To enact R.S. 33:382.1(H) and Part IX-A of Chapter 6 of Title 33 of the Louisiana Revised2
Statutes of 1950, to be comprised of R.S. 33:3076.1 through 3076.5, relative to3
government within East Baton Rouge Parish; to provide for the continued collection4
of tax revenue to fund essential public services within the city of St. George; to5
authorize the parish to continue collection of a previously approved two percent sales6
and use tax and to continue providing essential public services within the corporate7
limits of the city of St. George pursuant to intergovernmental agreement; to create8
a St. George Transition District as a taxing district to provide monies for essential9
public services within the municipality; to provide for the board of directors of the10
district; to provide for the duties, powers, and responsibilities of the district; to11
authorize the district to levy and collect a sales and use tax not to exceed two12
percent; to provide time limits for the continuation of such taxes; to authorize13
contracts, intergovernmental agreements, and cooperative endeavors; to provide for14
the number of aldermen in the city; and to provide for related matters.15
Notice of intention to introduce this Act has been published.16
Be it enacted by the Legislature of Louisiana:17 SB NO. 638
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Section 1. R.S. 33:382.1(H) and Part IX-A of Chapter 6 of Title 33 of the Louisiana1
Revised Statutes of 1950, comprised of R.S. 33:3076.1 through 3076.5, are hereby enacted2
to read as follows:3
§382.1. Number of aldermen; election; municipal districts; divisions of the board4
* * *5
H. Notwithstanding Subsection A of this Section, the number of6
aldermen for the city of St. George shall be seven, elected at large, unless7
changed by the board of aldermen by ordinance to another number not less8
than five nor more than nine members.9
* * *10
PART IX-A. CITY OF ST. GEORGE - TRANSITION DISTRICT11
§3076.1. Legislative findings; purpose12
The legislature hereby finds and determines that upon the incorporation13
of the city of St. George within East Baton Rouge Parish a state of emergency14
will exist in the municipality until cash flow can be developed through the levy15
and collection of municipal sales and use taxes to fund the expenses of municipal16
government. As a result of the foregoing, the legislature determines it essential17
and necessary to authorize the continuation of the parish tax within the area18
incorporated, to authorize the continuation of the provision of services by the19
parish within the area incorporated, and to create a financial assistance district20
and provide for it a source of revenue in order that it may engage in cooperative21
endeavors, enter into contracts for the provision of essential public services, and22
raise revenue to assist the municipality in funding the delivery of essential23
public services to its citizens and to assist the municipality in preventing cash24
flow difficulties.25
§3076.2. Definitions26
Whenever used in this Part, unless a different meaning clearly appears27
in the context, the following terms, whether used in the singular or plural, shall28
be given the following interpretations:29 SB NO. 638
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(1) "Board" means the board of directors of the district or any successor1
thereto.2
(2) "District" means the St. George Transition District or any successor3
thereto.4
(3) "Mayor-president" means the mayor-president of the city of Baton5
Rouge and parish of East Baton Rouge.6
(4) "Municipality" means the city of St. George in East Baton Rouge7
Parish.8
(5) "Municipal tax" means the two percent sales and use tax levied by9
the city of St. George as provided in R.S. 33:3076.4(D)(5).10
(6) "Parish" means East Baton Rouge Parish.11
(7) "Parish tax" means the two percent sales and use tax levied in the12
unincorporated areas of East Baton Rouge Parish.13
§3076.3. Continued levy of tax by East Baton Rouge Parish14
Notwithstanding any law to the contrary, upon incorporation of St.15
George, the parish may continue to levy and collect the parish tax within the16
corporate limits of the municipality, pursuant to an intergovernmental17
agreement between the parish and municipality, for the purposes of providing18
continuing, through calendar year 2018, pro-rata funding of parish expenses for19
constitutional public offices and officials required by law and providing20
essential public services to, or funding essential public services for, the citizens21
within St. George until the St. George Transition District levies and collects a22
two percent sales and use tax, the municipality levies and collects a two percent23
sales and use tax, the end of the quarter following the election to impose the24
municipal tax if the proposition is not approved by the electorate, or twelve25
months after the incorporation becomes final, whichever occurs first.26
§3076.4. St. George Transition District; sales tax27
A. In furtherance of the purposes of this Part, the St. George Transition28
District is hereby created as a special taxing district whose boundaries are29 SB NO. 638
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coterminous with the municipality, and it shall be a body politic and corporate1
and a political subdivision of the state with all of the powers of a political2
subdivision and with such further powers and functions as are set forth in this3
Section. It is hereby determined that the creation of the district and the carrying4
out of its public purpose is in all respects a public and governmental purpose for5
the improvement of the health, safety, welfare, comfort, and security of the6
people of the municipality, and that such purposes are public purposes, and that7
the district will be performing an essential governmental function and meeting8
a public obligation in the exercise of the powers conferred upon it by this9
Section.10
B.(1) The district shall be administered and governed by a board of11
directors of seven persons composed of:12
(a) The mayor-president or his designee.13
(b) One member appointed by the senator representing Senate District14
No. 6.15
(c) One member appointed by the senator representing Senate District16
No. 16.17
(d) Two members appointed by a majority of the members of the House18
of Representatives representing the district.19
(e) Two of the chairpersons for the petition for incorporation of St.20
George, as determined by the three chairpersons for the petition, or their21
designees.22
(2) The appointed members shall be selected on the basis of their23
experience in financial matters and their stature and ability to act effectively for24
the best interests of the municipality.25
(3) The board shall elect one of its members as chairman and another as26
treasurer. The board shall appoint a secretary and such other officers as are27
deemed necessary who need not be directors of the district.28
(4) A majority of the directors shall constitute a quorum, and a majority29 SB NO. 638
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vote of the directors constituting the quorum shall be necessary for any action1
taken by the district. No vacancy on the board shall impair the right of a2
quorum to exercise all of the rights and perform all of the duties of the district.3
(5) The board shall fix the place or places at which meetings shall be4
held. The domicile of the district shall be within the parish.5
(6) The members of the board shall serve without salary or per diem6
allowance.7
C. The district shall have all of the rights and powers necessary to carry8
out and effectuate the purposes and provisions of this Part. The district shall be9
subject to the laws pertaining to open meetings, public records, official journals,10
dual office holding and employment, and the Code of Governmental Ethics.11
Without limiting the generality of the foregoing, the district shall have the12
following rights and powers:13
(1) To adopt bylaws and prescribe rules for the regulation of its affairs14
and the conduct of its business.15
(2) To adopt an official seal and alter the same at its pleasure.16
(3) To maintain an office within the parish at such place as it may17
designate.18
(4) To sue and be sued.19
(5) To receive, administer, and comply with the conditions and20
requirements respecting any gift, grant, or donation of any property or money.21
(6) To apply and contract for assistance from the United States or other22
public or private sources, whether in the form of a grant or loan or otherwise.23
(7) To make and execute contracts, intergovernmental agreements, and24
other instruments necessary in the exercise of the powers and functions of the25
district under this Part, including contracts with persons, firms, corporations,26
and others.27
(8) To pledge or assign any contracts or rights of the district.28
(9) To employ such personnel as may be required in the judgment of the29 SB NO. 638
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board and to fix and pay their compensation from funds available to the district1
therefor.2
(10) To transfer, grant, or donate all or any portion of its revenues to the3
municipality in order to assist the municipality in funding the delivery of4
essential public services to its citizens, reducing or eliminating its cash flow5
deficits or remedying cash flow shortfalls, paying obligations in connection6
therewith, or any combination of these.7
(11) To accept the mortgage, pledge, hypothecation, assignment, grant,8
or donation of any properties of the municipality.9
(12) To invest its monies in accordance with R.S. 33:2955.10
(13) To enter into cooperative endeavor agreements or contracts for the11
provision of staff and meeting facilities and for the provision of such assistance12
and such essential public services as the district may require in carrying out the13
intents and purposes of this Part.14
(14) To exercise any and all other powers necessary to accomplish the15
purposes set forth in this Part.16
D.(1) In order to provide funds for the purpose of assisting the17
municipality to fund the delivery of essential public services to its citizens,18
reduce or eliminate its cash flow deficit or remedy cash flow shortfalls, pay19
obligations in connection therewith, or any combination of these, and to20
provide, though calendar year 2018, continuing pro-rata funding of parish21
expense for constitutional public offices and officials required by law, the22
district is hereby authorized to levy and collect a sales and use tax not to exceed23
two percent. However, the district shall not levy or collect a tax if the rate24
thereof, when combined with the rate of the municipal sales and use taxes25
collected within the municipality, exceeds two percent.26
(2) The tax shall be imposed by the district without the need of an27
election and shall be levied upon the sale at retail, the use, the lease or rental,28
the distribution, the consumption, and the storage for use or consumption of29 SB NO. 638
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tangible personal property, and on sales of services in the state, as presently1
defined in and as provided by Chapter 2 of Subtitle II of Title 47 of the2
Louisiana Revised Statutes of 1950, subject to the tax exemptions provided in3
that Chapter. Notwithstanding any provision of law to the contrary, the levy of4
the tax shall be effective and the tax shall be payable beginning on such date as5
shall be provided by the district.6
(3) The proceeds of the tax shall be irrevocably pledged and dedicated7
and shall be transferred in such amounts as may be determined by the district8
to assist the municipality in funding the delivery of essential public services to9
its citizens, reducing or eliminating its cash flow deficit, remedying cash flow10
shortfalls, paying obligations in connection therewith, or any combination of11
these.12
(4) The district shall contract with the parish for the collection of the tax13
under such terms and conditions as the board may deem appropriate, and the14
board may adopt such rules and regulations regarding the enforcement and15
collection of the tax authorized by this Section as it may deem appropriate.16
(5) The provisions of this Section shall be null, void, and without effect,17
the district shall cease existence, and any sales and use taxes levied by the18
district shall expire at such time as the municipality levies and collects a two19
percent sales and use tax or twelve months after the judgments in any suits20
contesting the incorporation of the municipality become final, whichever occurs21
first.22
§3076.5. Liberal construction23
This Part does and shall be construed to provide a complete method for24
the doing of the things authorized by this Part. The provisions of this Part shall25
be liberally construed for the accomplishment of its purposes.26
Section 2. This Act shall become effective upon signature by the governor or, if not27
signed by the governor, upon expiration of the time for bills to become law without signature28
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If29 SB NO. 638
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vetoed by the governor and subsequently approved by the legislature, this Act shall become1
effective on the day following such approval.2
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jerry J. Guillot.
DIGEST
White (SB 638)
Proposed law provides that upon incorporation of St. George (municipality), East Baton
Rouge Parish (parish) may continue to levy and collect the two percent sales and use tax
levied in the unincorporated areas of the parish (parish tax) within the corporate limits of the
municipality, pursuant to an intergovernmental agreement between the parish and
municipality, for the purposes of providing continuing, through 2018, pro-rata funding of
parish expenses for constitutional public offices and officials required by law and providing
essential public services to, or funding essential public services for, the citizens within St.
George until the St. George Transition District (district) levies and collects a two percent
sales and use tax, the municipality levies and collects a two percent sales and use tax, the end
of the quarter following the election to impose the municipal tax if the proposition is not
approved by the electorate, or 12 months after the incorporation becomes final, whichever
occurs first.
Creates the St. George Transition District as a special taxing district whose boundaries are
coterminous with the municipality, as a political subdivision of the state with all of the
powers and functions set forth in proposed law. Provides that the creation of the district and
the carrying out of its public purpose is in all respects a public and governmental purpose
for the improvement of the health, safety, welfare, comfort, and security of the people of the
municipality, and that such purposes are public purposes, and that the district will be
performing an essential governmental function and meeting a public obligation in the
exercise of its powers.
Provides that the district shall be administered and governed by a board of directors of seven
persons composed of:
(1) The mayor-president or his designee.
(2) One member appointed by the senator representing Senate District No. 6.
(3) One member appointed by the senator representing Senate District No. 16.
(4) Two members appointed by a majority of the members of the House of
Representatives representing the district.
(5) Two chairpersons for the petition for incorporation of St. George, as determined by
the three chairpersons for the petition, or their designees.
Provides that the appointed members shall be selected on the basis of their experience in
financial matters and their stature and ability to act effectively for the best interests of the
municipality.
Requires that the board elect one of its members as chairman and another as treasurer.
Provides that the board shall appoint a secretary and such other officers as are deemed
necessary who need not be directors of the district.
Provides that a majority of the directors shall constitute a quorum, and a majority vote of the
directors constituting the quorum shall be necessary for any action taken by the district. SB NO. 638
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Further no vacancy on the board shall impair the right of a quorum to exercise all of the
rights and perform all of the duties of the district.
Requires that the board fix the place or places at which meetings shall be held and that the
domicile of the district be within the parish.
Provides that the board members shall serve without salary or per diem allowance.
Provides that the district shall have all of the rights and powers necessary to carry out and
effectuate the proposed law. Provides that the district shall be subject to the laws pertaining
to open meetings, public records, official journals, dual office holding and employment, and
the Code of Governmental Ethics.
Authorizes the district:
(1) To adopt bylaws and prescribe rules for the regulation of its affairs and the conduct
of its business.
(2) To adopt an official seal and alter the same at its pleasure.
(3) To maintain an office within the parish at such place as it may designate.
(4) To sue and be sued.
(5) To receive, administer, and comply with the conditions and requirements respecting
any gift, grant, or donation of any property or money.
(6) To apply and contract for assistance from the United States or other public or private
sources, whether in the form of a grant or loan or otherwise.
(7) To make and execute contracts, intergovernmental agreements, and other instruments
necessary in the exercise of the powers and functions of the district under proposed
law, including contracts with persons, firms, corporations, and others.
(8) To pledge or assign any contracts or rights of the district.
(9) To employ such personnel as may be required in the judgment of the board and to
fix and pay their compensation from funds available to the district therefor.
(10) To transfer, grant, or donate all or any portion of its revenues to the municipality in
order to assist the municipality in funding the delivery of essential public services
to its citizens, reducing or eliminating its cash flow deficits or remedying cash flow
shortfalls, paying obligations in connection therewith, or any combination of these.
(11) To accept the mortgage, pledge, hypothecation, assignment, grant, or donation of any
properties of the municipality.
(12) To invest its monies in accordance with R.S. 33:2955.
(13) To enter into cooperative endeavor agreements or contracts for the provision of staff
and meeting facilities and for the provision of such assistance and such essential
public services as the district may require in carrying out the intents and purposes of
proposed law.
(14) To exercise any and all other powers necessary to accomplish the purposes set forth
in proposed law.
Provides that in order to provide funds for the purpose of assisting the municipality to fund SB NO. 638
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the delivery of essential public services to its citizens, reduce or eliminate its cash flow
deficit or remedy cash flow shortfalls, pay obligations in connection therewith, or any
combination of these, and to provide, though 2018, continuing pro-rata funding of parish
expense for constitutional public offices and officials required by law, the district may levy
and collect a sales and use tax not to exceed two percent. However, the district shall not levy
or collect a tax if the rate thereof, when combined with the rate of the municipal sales and
use taxes collected within the municipality, exceeds two percent.
Requires that the tax be imposed by the district, without the need of an election, and be
levied upon the sale at retail, the use, the lease or rental, the distribution, the consumption,
and the storage for use or consumption of tangible personal property, and on sales of services
in the state, as presently defined in and as provided by present law, subject to the tax
exemptions provided in present law. Provides that the levy of the tax shall be effective and
the tax shall be payable beginning on such date as shall be provided by the district.
Requires that the proceeds of the tax be irrevocably pledged and dedicated and be transferred
in such amounts as may be determined by the district to assist the municipality in funding
the delivery of essential public services to its citizens, reducing or eliminating its cash flow
deficit, remedying cash flow shortfalls, paying obligations in connection therewith, or any
combination of these.
Requires that the district contract with the parish for the collection of the tax under such
terms and conditions as the board may deem appropriate, and authorizes the board to adopt
such rules and regulations regarding the enforcement and collection of the tax authorized by
proposed law as it may deem appropriate.
Provides that proposed law creating and providing for the district and district tax shall be
null, void, and without effect, the district shall cease existence, and any sales and use taxes
levied by the district shall expire at such time as the municipality levies and collects a two
percent sales and use tax or 12 months after the judgments in any suits contesting the
incorporation of the municipality become final, whichever occurs first.
Provides that proposed law does and shall be construed to provide a complete method for
the doing of the things authorized by proposed law, which shall be liberally construed for
the accomplishment of its purposes.
Present law, relative to Lawrason Act municipalities, provides that the number of aldermen
in a city shall be not less than five nor more than nine.
Proposed law provides that the number of aldermen for the city shall be seven, elected at
large, unless changed by the board of aldermen by ordinance to another number not less than
five nor more than nine members.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 33:382.1(H) and 3076.1-3076.5)