Louisiana 2018 2018 Regular Session

Louisiana House Bill HB791 Comm Sub / Analysis

                    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 791 Original	2018 Regular Session	Steve Carter
Abstract:  Creates a special taxing district in E. Baton Rouge, W. Baton Rouge, Ascension,
Iberville, and Livingston parishes with authority to levy a 1% sales tax to fund specified
highway construction projects which include a new Mississippi River Bridge.
Proposed law creates the Capital Area Road and Bridge District, hereinafter referred to as the
"district", as a political subdivision of the state composed of all of the territory within the parish
boundaries of E. Baton Rouge, W. Baton Rouge, Ascension, Iberville, and Livingston.  The district
is created to undertake specific transportation infrastructure projects: a new Mississippi River
Bridge, the La. Hwy. 1/La. Hwy. 415 connector, and the connection to and widening of La. Hwy. 30,
all within the district.
Proposed law provides for governance of the district by a board of commissioners comprised of five
members, one appointed by the governing authority of each parish in the district. Provides that
members serve four-year terms.  Provides that a vacancy is filled in the same manner as the original
appointment for the remainder of the unexpired term; if the appointing authority does not fill the
vacancy within 30 days, requires the board to appoint an interim successor to serve until the position
is filled by the parish governing authority. Prohibits compensation of board members but authorizes
reimbursement of expenses. Provides for the selection of officers.  Provides that board action on the
following requires approval by a majority of the total board membership:
(1)Adoption of bylaws and other rules and regulations for conduct of the district's business.
(2)Hiring or firing of the district's chief executive officer.
(3)The incurring of funded, general, or bonded debt, levy of taxes, and call for any tax or other
election.
(4)Adoption or amendment of the annual budget.
(5)Sale, lease, or alienation of immovable property or improvements.
Proposed law provides that the official journal of the district is the same as the official journal of the
governing authority of E. Baton Rouge Parish.
Proposed law authorizes the district to create subdistricts which have the same powers as the district
itself. Proposed law provides that the actions of the district are essential governmental functions and that
the district and bonds issued by the district are exempt from taxation.
Proposed law authorizes the district, subject to the approval of the voters in each parish of the
district, to levy a sales and use tax not to exceed 1%.  Authorizes use of the proceeds of the tax for
costs related to the transportation infrastructure projects that the district is authorized to undertake.
Such related costs include:
(1)Costs of studies, surveys, development of plans and specifications, preparation,
implementation and administration, personnel and professional services costs for
architectural, engineering, legal, marketing, financial, planning, police, fire, public works or
other services incurred by the district directly or on behalf of the district. Proposed law
prohibits basing charges for professional services on a percentage of tax revenues.
(2)Property acquisition and assembly costs, including acquisition of land and other immovable
or movable property or rights or interests therein.
(3)On- and off-site preparation costs, including clearance of any area by demolition or removal
of any existing buildings, structures, fixtures, utilities and improvements and clearing and
grading and including without limitation installation, repair, construction, reconstruction, or
relocation of public streets, public utilities, and other public improvements.
(4)Costs of renovation, rehabilitation, relocation, repair, or remodeling of any existing
buildings, improvements, and fixtures.
(5)Costs of construction of public improvements, including but not limited to buildings,
structures, works, utilities, or fixtures.
(6)Financing costs of the district, including all necessary and incidental expenses related to the
issuance of obligations, payment of any interest on any obligations which accrues during the
estimated period of construction for which such obligations are issued and thereafter, and any
reasonable reserves related to the issuance of such obligations.
Proposed law requires that the levy and collection of the sales and use tax terminate immediately
following the retirement of all debt and obligations attributable to projects included in the
proposition authorizing its levy.
Proposed law authorizes the district to undertake highway construction projects financed entirely or
partially with district funds on the specified highways which are within the state highway system. 
Provides that such projects are subject to the following:
(1)Only projects that are funded by proceeds of a tax levied pursuant to proposed law may be
undertaken.
(2)All work must be done in accordance with and the completed project must meet all applicable standards of the Dept. of Transportation and Development.
(3)The plans for any such project are subject to review and approval by the chief engineer of the
department, who must, within 30 days after submission, review and approve or propose
changes to plans submitted by the district.
(4)The district may proceed with the design and construction portions of the project when it
deems appropriate subject to approval by the chief engineer; however, the construction phase
must be coordinated with the department so as to minimize disruption of the flow of traffic
on and near the site of the project, taking into consideration any other projects the department
may be executing at the same time and rules and regulations of the department.
(5)Upon completion of the project, the section of highway must be maintained by the
department under the same terms and conditions as apply to any other portion of the state
highway system.
Proposed law authorizes the district to issue revenue bonds, subject to the approval of the State Bond
Commission, and provides with respect to such bonds and other debt of the district.
(Adds R.S. 48:771-777)