Louisiana 2018 2018 Regular Session

Louisiana Senate Bill SB279 Comm Sub / Analysis

                    The original instrument was prepared by Thomas L. Tyler. The following digest,
which does not constitute a part of the legislative instrument, was prepared by Laura
Gail Sullivan.
DIGEST
SB 279 Reengrossed 2018 Regular Session	Morrish
Proposed law creates the Calcasieu-Cameron Navigation District in Calcasieu and Cameron parishes
to improve and maintain the Calcasieu River and to serve as agent for the state of Louisiana which
is the local sponsor and nonfederal sponsor for the Calcasieu River and Pass Project (the project).
Proposed law excludes from the district's territory any facility that meets the following conditions:
(1)The facility is not located on the Calcasieu Ship Channel.
(2)The facility neither imports nor exports cargo through the Calcasieu Ship Channel.
(3)The facility is located within a Foreign-Trade Zone.
Proposed law requires the district to function as the single entity responsible for acting to secure
rights-of-way, and to furnish assurances for the construction, operation, and maintenance of the
project as designated by the United States Army Corps of Engineers. Provides for the district to
provide the nonfederal sponsor's local cost share, including requirements presently in effect or in the
future required by law, regulation, or assurance agreements, requirements for new features or project
modifications, and requirements to provide real estate, rights-of-way, and easements for sites to
dispose of dredged materials.
Proposed law provides for the Lake Charles Harbor and Terminal District to continue as the non-
federal sponsor for the project as provided in R.S. 34:218 until such time as an ad valorem tax is
passed by a majority of the qualified electors in each parish within the district and receipt of tax
monies by the district.
Proposed law prohibits the district from engaging in port activities as defined in R.S. 34:218 within
its territory.
Proposed law provides that Calcasieu Parish is the district's domicile, but allows district offices to
be maintained in Cameron Parish. Provides that the district's secretary may reside in Calcasieu or
Cameron Parish and that the district's books and records shall be kept where the secretary resides.
Proposed law provides for the district to governed by a five-member board of commissioners
appointed as follows:
(1)The port director of the Cameron Parish Port, Harbor, and Terminal District, or his designee. (2)The port director of the Lake Charles Harbor and Terminal District, or his designee.
(3) A state-commissioned river port pilot appointed by the Associated Branch Pilots for the Port
of Lake Charles.
(4)Two commissioners appointed by the governor and subject to Senate confirmation,
representing separate facilities that utilize the Calcasieu Ship Channel for commerce
involving deep draft seagoing vessels, one representing a facility located in Cameron Parish
and one representing a facility located in Calcasieu Parish.
Proposed law provides for appointed commissioners to serve four-year terms and not more than three
consecutive terms and to serve without compensation except for payment of necessary expenses
incurred to attend board meetings or to attend to board business.
Proposed law provides for board members to elect a president, vice president, secretary, and treasurer
but allows one member to hold the offices of secretary and treasurer.
Proposed law provides for a regular board meeting each month and for special meetings upon the
president's call or the written request of three members. Provides that a quorum is three members.
Proposed law provides for the powers of the board necessary to maintain and improve the project,
including the collection of reasonable charges to use structures, works, and facilities administered
by the board and services rendered by the board.
Proposed law requires board contracts for construction or purchase of materials to be in accordance
with the Public Bid Law.
Proposed law authorizes the board to levy annually an ad valorem tax not to exceed five mills on the
dollar on property subject to taxation in the district, provided that the levy is authorized by a
favorable vote of a majority of the qualified electors in each parish within the district at an election
called within three years of the effective date of proposed law and held for that purpose according
to existing law.
Proposed law authorizes the board to pledge all or part of its revenues to payment of bonds but
specifies that total annual tax collections shall not exceed $20 million. Additionally, authorizes the
board, provided sufficient monies are received from the ad valorem tax, to make annual payments
as follows:
(1)$500,000 to the Cameron Parish Port, Harbor, and Terminal District.
(2)$500,000 to the Lake Charles Harbor and Terminal District.
(3)$300,000 to the West Calcasieu Port.
(4)$200,000 to the Vinton Harbor and Terminal District. Proposed law provides for sunset of the district on July 1
st
 of the year following an unfavorable vote
to pass and levy an ad valorem tax.
Proposed law authorizes the board to incur debt and to issue tax-secured bonds with approval of the
State Bond Commission in accordance with existing law not to exceed forty years in duration and
to bear interest not to exceed five percent per annum, payable semi-annually, subject to terms of
redemption not to exceed one hundred five percent of bond principal.
Effective August 1, 2018.
(Adds R.S. 34:481-490)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Transportation, Highways, and
Public Works to the original bill
1. Excludes from the district's territory any facility that meets all of the following three
conditions:
 (1)The facility is not located on the Calcasieu Ship Channel.
 (2)The facility neither imports nor exports cargo through the Calcasieu Ship
Channel.
 (3)The facility is located within a Foreign Trade Zone.
2. Requires a favorable vote of a majority of the qualified electors in Cameron and
Calcasieu parishes to levy an ad valorem tax.
3. Authorizes property acquisition by purchase, donation, lease, or expropriation.
4. Changes the limit of ad valorem tax collections from $30 million to $20 million.
5. Makes technical corrections.
Senate Floor Amendments to engrossed bill
1. Remove the authority of the board to acquire property by expropriation.