DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 1154 Original 2016 Regular Session Broadwater
Abstract: Authorizes state and local governments to enter into cooperative endeavor agreements
with public or private investors which provide for investments in transportation projects in
lieu of state and local taxes.
Proposed law authorizes the state, its political subdivisions, and political corporations to enter into
cooperative endeavor agreements (CEA) with each other, the U. S. government, or with any public
or private association or corporation to negotiate payments in lieu of taxes to be paid by private
corporate taxpayers, where the payments take the form of investment by the taxpayer in
transportation projects that benefit state and local governments and the private corporate taxpayer.
Proposed law requires that prior to the state entering into any CEA that requires state funds to be
used for a transportation project, that the CEA be approved by the House Ways and Means
Committee meeting jointly with the Senate Revenue and Fiscal Affairs Committee and the House
and Senate Transportation, Highways, and Public Works Committees meeting jointly.
Proposed law requires the CEA to contain the following provisions:
(1)A statement of the public purpose served by the agreement, including a detailed description
of the transportation project to which the private corporate taxpayer's investment shall be
applied.
(2)Unless the project has already been included in a state priority program, a conceptual design
of the transportation project including proposed interconnections with existing or planned
transportation facilities.
(3)A feasibility study for the project.
(4)The proposed date for acquisition, construction, or improvement of the transportation project.
(5)The terms of any payment in lieu of tax agreement agreed to between the parties of the CEA
that the parties accept in exchange for the private taxpayer's investment in the transportation
project.
(6)An economic impact statement that justifies the terms of the CEA.
(7)Commitments that the taxpayer donate the completed transportation project to the appropriate public entity after its completion and that the public entity shall accept the
completed project.
(8)The funds committed by the taxpayer to the transportation project and the timing of the funds
being paid to the public entity constructing the project.
(9)Identification of any state or local jurisdiction not a party to the CEA and documentation that
the jurisdiction received a copy of the CEA and does not object to the project.
Proposed law requires DOTD, in cooperation with the Dept. of Revenue to promulgate rules in
accordance with the APA to implement proposed law.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 47:6361)