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 573 Engrossed 2019 Regular Session Abramson
Abstract: Codifies laws pertaining to the Ernest N. Morial-New Orleans Exhibition Hall Authority
and provides relative to revenues and projects of the authority.
Present law creates the Ernest N. Morial-New Orleans Exhibition Hall Authority (convention center
authority) to acquire, construct, reconstruct, extend, improve, maintain, and operate projects within
the city of New Orleans in order to promote the economic growth and development of the city and
its neighboring parishes.
Proposed law incorporates uncodified Acts of the legislature relating to the convention center
authority into the La. Revised Statutes of 1950. The table at the end of this digest indicates the
Sections of Act No. 305 of 1978 R.S., as amended, the most recent expression of the legislature on
each of those Sections or portions thereof, and the placement of those provisions in the proposed
codification scheme in Title 33 of the La. Revised Statutes of 1950.
Proposed law also makes changes to present law as follows:
Present law authorizes the convention center authority to levy hotel occupancy taxes and provides
relative to the use of the proceeds of such taxes after provision is made for the payment of debt
secured by such proceeds. Proposed law provides that such remaining revenue shall be that specified
as such in audited financial statements for each fiscal year. Proposed law requires that payments
required by present law and proposed law shall be made within 30 days of the acceptance of the
audited statements.
Present law, modified by proposed law as indicated, requires use of such hotel occupancy tax
proceeds remaining after payment of debt for the following purposes in the following order of
priority:
(1)Payment of rents due.
(2)Payment of bond service charges.
(3)Payment of administrative and operating expenses.
(4)Payment of the cost of maintaining, improving and operating exhibition or convention
facilities. (5)To establish a reserve fund for replacement and for future needs. Proposed law requires that
such future needs be described with reasonable particularity and prohibits the aggregate
amount held in such reserve funds from exceeding $100 million.
(6)Payments to the city of New Orleans. Present law provides that revenues remaining at the
end of each fiscal year, prior to the issuance of bonds and after the payment of specified
expenses, is considered surplus and may be paid to the city of New Orleans. Proposed law
requires remaining funds in excess of $100 million, at the end of each fiscal year, to be paid
to the city of New Orleans unless the voters of New Orleans authorize the convention center
authority to retain such funds.
Present law authorizes the convention center authority to levy a tax on food and beverages sold by
any food service establishment located within Orleans Parish or in any airport or air transportation
facility owned and operated by the city of New Orleans at a rate not to exceed 1/2%.
Present law authorizes the convention center authority to undertake specified "expansion projects",
one of which is designated Phase IV, which includes construction of a free-standing building across
Henderson Street from the existing convention center, on a site owned by the convention center
authority, containing approximately 1,500,000 square feet under roof, including approximately
500,000 square feet of exhibit space, with accompanying meeting rooms, food service areas, building
service areas, and other facilities functionally related thereto.
Present law authorizes the convention center authority, for the purpose of funding Phase IV, to
impose an additional 1% hotel occupancy tax and a 1/4% tax on food and beverages sold by any food
service establishment located within Orleans Parish or in any airport or air transportation facility
owned and operated by the city of New Orleans.
Present law provides for termination of both food and beverage taxes and the 1% hotel occupancy
tax upon payment in full of obligations secured in whole or in part by proceeds of such taxes.
Proposed law prohibits the convention center authority from refinancing bonds secured by such taxes
or taking any other action that would delay the retirement of such bonds that are outstanding on May
1, 2019. However, proposed law authorizes the convention center authority to levy such taxes and
pledge the avails thereof if such actions are reauthorized by the voters of New Orleans.
Present law requires the convention center authority to prescribe rules to provide for protections for
the rights of minority citizens. Present law requires that such rules include, for any expansion project
("expansion project" is described above in this digest), the setting aside for minority businesses of
not less than 30% of anticipated local procurement of goods and services other than construction and
not less than 20% of the construction contracts. Requires adoption of affirmative action plans.
Proposed law retains present law but makes it applicable to any project undertaken by the convention
center authority.
Present law defines "project" to mean convention, exhibition, and tourist facilities, other than
lodging facilities, and necessary site improvements, infrastructure, furnishings, machinery, equipment, and appurtenances. Proposed law adds acquisition of land and a hotel with multi-story
parking garage and bridge connecting the hotel and the south end of the convention center to the
definition of project. Proposed law becomes effective on July 1, 2020, but only if the convention
center authority enters a cooperative endeavor agreement with the city of New Orleans regarding
certain taxes and other matters.
Effective July 1, 2019, except as otherwise provided by the Act. Section of Act No. 305Source Disposition in Title 33
1- Creation Act 43 of 1992 RS 4710.11(A)
2- Bd of commissioners
(A) Act 1174 of 1997 RS 4710.12(A) and (B)
(B) Act 1174 of 1997 RS 4710.12(C)
(C) Act 572 of 1984 RS 4710.12(D)
(D) Act 572 of 1984 RS obsolete
3- Domicile Act 1174 of 1997 RS 4710.11(B)
3- Bd of commissionersAct 1174 of 1997 RS 4710.12(D)-(H)
4- Powers and duties
4(intro paragraph) Act 557 of 2014 RS 4710.11(C) and (D)
4(A) and (B) Act 305 of 1978 RS 4710.13(1) an (2)
4(C) Act 1176 of 1997 RS 4710.13(3)
4(D) Act 557 of 2014 RS 4710.13(4)
4(E) and (F) Act 305 of 1978 RS 4710.13(5) and (6)
(G) Act 557 of 2014 RS 4710.13(7)
4(H) and (I) Act 42 of 1994 RS 4710.13(8) and (9)
4(J), (K), and (L) Act 305 of 1978 RS 4710.13(10), (11), and (12)
4(M) Act 557 of 2014 RS 4710.13(13)
4(N) and (O) Act 305 of 1978 RS 4710.13(14) and (15)
4(P) Act 1176 of 1997 RS 4710.13(16)
5- Rivercenter
5(A) and (B) Act 305 of 1978 RS 4710.14
5(C) Act 305 of 1978 RS 4710.13(17)
5(D) Repealed; Act 287 of 1982Previously repealed
5(E) Act 9 of 1980 2nd ES 4710.13(18)
6- Hotel occupancy tax Act 305 of 1978 RS 4710.15 6.1- Additional hotel
occupancy tax
Act 42 of 1994 RS 4710.15.1
7- Use of revenue Act 305 of 1978 RS 4710.16
8- Issue bonds
8(1st paragraph) Act 42 of 1994 RS 4710.17(A)
8(2nd paragraph) Act 42 of 1994 RS 4710.17(B)
8(3rd through 7th para)Act 305 of 1978 RS 4710.17(C)-(G)
8(8th paragraph) Act 42 of 1994 RS 4710.17(H)
8(9th and 10th para)Act 305 of 1978RS 4710.17(I) and (J)
9- Authority of legislatureAct 305 of 1978RS 4710.17(K)
10- Obligations solely of
the authority
Act 305 of 1978RS 4710.18
11- Hotel tax revenues Act 305 of 1978RS 4710.19
12- Limit on state authority
to spend funds
Act 43 of 1992 RS 4710.20
13- Exhibitions;
superdome
Act 305 of 1978RS 4710.21
14- Severability Act 305 of 1978RS obsolete
15- Powers of Port of New
Orleans
Act 305 of 1978RS 4710.22(A)
16- Effective date of
original Act
Act 305 of 1978RS obsolete
17- Poydras Street WharfAct 305 of 1978RS 4710.22(B)
18- Hotel occupancy tax
(flat rate)
Act 390 of 1987 RS 4710.15.2
19- Food and beverage taxAct 390 of 1987 RS 4710.23
20- Phase IV expansion;
additional taxes
20(A) Act 557 of 2014 RS 4710.24(A)
20(B) through (E) Act 72 of 02 1ES 4710.24(B)-(F)
20(F) Act 557 of 2014 RS 4710.24(G) 20.1- Service contractor
tax
Act 42 of 1994 RS 4710.25
20.2- Sight-seeing tour taxAct 42 of 1994 RS 4710.26
21- Bonds
21(A) Act 42 of 1994 RS 4710.17.1(A)
21(B) through (F) Act 390 of 1987 RS 4710.17.1(B)-(F)
21(G) Act 42 of 1994 RS 4710.17.1(G)
21(H) through (L) Act 390 of 1987 RS 4710.17.1(H)-(L)
21(M) Act 42 of 1994 RS 4710.17.1(M)
21(N) through (P) Act 390 of 1987 RS 4710.17.1(N)-(P)
22- Pledge of funds to
leases
Act 390 of 1987 RS 4710.27
23- Escrow; certain fundsAct 557 of 2014 RS 4710.28
24- Minority businessesAct 390 of 1987 RS 4710.29
(Adds R.S. 33:4710.11-4710.29)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Add provisions requiring the payment of certain reserve funds to the city of New Orleans
unless the voters of New Orleans authorize the convention center authority to retain such
funds.
2. Add provisions prohibiting the convention center authority from delaying the retirement
of outstanding bonds secured by certain taxes unless the voters of New Orleans
reauthorize those taxes.
3. Add provisions making disadvantaged business provisions of present law applicable to
all projects rather than expansion projects.
4. Add provisions adding a hotel project to authorized projects and provisions making such
addition contingent on a cooperative endeavor agreement with the city of New Orleans.