Louisiana House Bill HB617

Louisiana 2019 Regular Session

• Introduced: 5/6/19
• Engrossed: 5/9/19
• Refer: 5/13/19
• Report Pass: 5/20/19
• Refer: 5/21/19
• Report Pass: 5/27/19
• Enrolled: 6/3/19
• Chaptered: 6/7/19
• Passed: 6/7/19

Caption

Provides relative to the Ernest N. Morial-New Orleans Exhibition Hall Authority (EN INCREASE LF EX See Note)

Impact

The bill significantly impacts existing state laws governing the taxation and financing of municipal authorities. It gives the newly established authority broad powers to impose taxes, including an additional hotel occupancy tax and a food and beverage tax, designed to generate revenue for its projects. It also stipulates how these funds can be used, ensuring they contribute directly to enhancing infrastructure for tourism and conventions. The provisions for bond issuance are crucial, as they enable upfront investment in development projects, which is expected to yield long-term economic benefits for the community.

Summary

House Bill 617 establishes the Ernest N. Morial-New Orleans Exhibition Hall Authority, primarily focusing on enhancing economic growth and development through the creation and management of convention and exhibition facilities in Orleans Parish. The legislation allows the authority to levy a hotel occupancy tax and other associated fees to fund projects aimed at promoting tourism and convention-related activities. This includes the potential issuance of bonds secured by these revenues, which will facilitate the acquisition, construction, or improvement of essential facilities for hosting events.

Sentiment

The sentiment surrounding HB 617 is largely positive among pro-business groups who view it as a vital step for stimulating economic activity in New Orleans through enhanced tourism. However, some concerns have been raised about the authority's power to levy taxes and how it may affect existing local businesses and residents. Critics worry about the reliance on additional taxes, particularly in a city that may already struggle with various economic pressures. The ongoing dialogue reflects a careful balancing act between driving growth and maintaining local economic stability.

Contention

Notable points of contention include the authority's ability to levy taxes without direct oversight from the local government, which some see as a potential risk for overreach. The bill also faces scrutiny concerning the equitable distribution of benefits, particularly regarding the involvement of minority businesses in contracts associated with the projects. As the authority implements its plans, the effectiveness of revenue collection methods and their impact on the local economy will likely remain a focal point of public debate.