SLS 19RS-244 ORIGINAL
2019 Regular Session
SENATE BILL NO. 229
BY SENATOR CLAITOR
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX/SALES. Provides for continued collection of certain sales taxes within corporate
limits of any municipality incorporated after a certain date. (gov sig)
1 AN ACT
2 To enact Part IX-A of Chapter 6 of Title 33 of the Louisiana Revised Statutes of 1950, to be
3 comprised of R.S. 33:3121 through 3125, relative to government within East Baton
4 Rouge Parish; to provide for the continued collection of tax revenue to fund essential
5 public services within the city of St. George; to authorize the parish to continue
6 collection of a previously approved three percent sales and use tax and to continue
7 providing essential public services within the corporate limits of the city of St.
8 George pursuant to intergovernmental agreement; to create a St. George Transition
9 District as a taxing district to provide monies for essential public services within the
10 municipality; to provide for the board of directors of the district; to provide for the
11 duties, powers, and responsibilities of the district; to authorize the district to levy and
12 collect a sales and use tax not to exceed three percent; to provide time limits for the
13 continuation of such taxes; to authorize contracts, intergovernmental agreements, and
14 cooperative endeavors; and to provide for related matters.
15 Notice of intention to introduce this Act has been published.
16 Be it enacted by the Legislature of Louisiana:
17 Section 1. Part IX-A of Chapter 6 of Title 33 of the Louisiana Revised Statutes of
Page 1 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 229
SLS 19RS-244 ORIGINAL
1 1950, comprised of R.S. 33:3121 through 3125, is hereby enacted to read as follows:
2 Part IX-A. St. George - Transition District
3 §3121. Legislative findings; purpose
4 The legislature hereby finds and determines that in the event of the
5 incorporation of the city of St. George within East Baton Rouge Parish a state
6 of emergency will exist in the municipality until cash flow can be developed
7 through the levy and collection of municipal sales and use taxes to fund the
8 expenses of municipal government. As a result of the foregoing, the legislature
9 determines it essential and necessary to authorize the continuation of the parish
10 tax within the area incorporated, to authorize the continuation of the provision
11 of services by the parish within the area incorporated, and to create a financial
12 assistance district and provide for it a source of revenue in order that it may
13 engage in cooperative endeavors, enter into contracts for the provision of
14 essential public services, and raise revenue to assist the municipality in funding
15 the delivery of essential public services to its citizens and to assist the
16 municipality in preventing cash flow difficulties.
17 §3122. Definitions
18 Whenever used in this Act, unless a different meaning clearly appears
19 in the context, the following terms, whether used in the singular or plural, shall
20 be given the following interpretations:
21 (1) "Board" means the board of directors of the district or any successor
22 thereto.
23 (2) "District" means the St. George Transition District or any successor
24 thereto.
25 (3) "Mayor-president" means the mayor-president of the city of Baton
26 Rouge and parish of East Baton Rouge.
27 (4) "Municipality" means the city of St. George in East Baton Rouge
28 Parish.
29 (5) "Municipal tax" means the three percent sales and use tax levied by
Page 2 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 229
SLS 19RS-244 ORIGINAL
1 the city of St. George as provided in R.S. 33:3124(D)(5).
2 (6) "Parish" means East Baton Rouge Parish.
3 (7) "Parish tax" means the three percent sales and use tax levied in the
4 unincorporated areas of the parish.
5 §3123. Continued levy of tax by East Baton Rouge Parish
6 Notwithstanding any law to the contrary, in the event a majority of
7 voters vote in favor of incorporation of St. George, the parish may continue to
8 levy and collect the parish tax within the corporate limits of the municipality,
9 pursuant to an intergovernmental agreement between the parish and
10 municipality, for the purpose of providing essential public services to, or
11 funding essential public services for, the citizens within St. George until the St.
12 George Transition District levies and collects a three percent sales and use tax,
13 the municipality levies and collects a three percent sales and use tax, the end of
14 the quarter following the election to impose the municipal tax if the proposition
15 is not approved by the electorate, or twelve months after the incorporation
16 becomes final, whichever occurs first.
17 §3124. St. George Transition District; sales tax
18 A. In furtherance of the purposes of this Part, the St. George Transition
19 District is hereby created as a special taxing district whose boundaries are
20 coterminous with the municipality, and it shall be a body politic and corporate
21 and a political subdivision of the state with all of the powers of a political
22 subdivision and with such further powers and functions as are set forth in this
23 Section. It is hereby determined that the creation of the district and the carrying
24 out of its public purpose is in all respects a public and governmental purpose for
25 the improvement of the health, safety, welfare, comfort, and security of the
26 people of the municipality, and that such purposes are public purposes, and that
27 the district will be performing an essential governmental function and meeting
28 a public obligation in the exercise of the powers conferred upon it by this
29 Section.
Page 3 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 229
SLS 19RS-244 ORIGINAL
1 B.(1) The district shall be administered and governed by a board of
2 directors of five persons composed of:
3 (a) The mayor-president or his designee who shall be a registered voter
4 and living in the district.
5 (b) One member, who shall be a registered voter and living in the
6 district, appointed by the senator representing Senate District No. 16.
7 (c) One member, who shall be a registered voter and living in the
8 district, appointed by the member of the House of Representatives representing
9 House District No. 66.
10 (d) The chairpersons for the petition for incorporation of St. George or
11 their designees.
12 (2) The appointed members shall be selected on the basis of their
13 experience in management and relevant knowledge and ability to act effectively
14 for the best interests of the municipality.
15 (3) The board shall elect one of its members as chairman and another
16 as treasurer. The board shall appoint a secretary and such other officers as are
17 deemed necessary who need not be directors of the district.
18 (4)(a) A majority of the directors shall constitute a quorum, and a
19 majority vote of the directors constituting the quorum shall be necessary for
20 any action taken by the district. No vacancy on the board shall impair the right
21 of a quorum to exercise all of the rights and perform all of the duties of the
22 district.
23 (b) Any vacancy which occurs prior to expiration of the term for which
24 a member of the board has been appointed shall be filled for the remainder of
25 the unexpired term in the same manner as the original appointment. Board
26 members shall be eligible for reappointment.
27 (c) Notwithstanding the provision of Subparagraph (b) of this Paragraph
28 to the contrary, if the appointing authority fails to make an appointment within
29 sixty days of the date of a vacancy, the remaining appointed members may
Page 4 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 229
SLS 19RS-244 ORIGINAL
1 appoint an individual who signed the petition to incorporate the city of St.
2 George for the remainder of the unexpired term.
3 (5) The board shall fix the place or places at which meetings shall be
4 held. The domicile of the district shall be within the parish.
5 (6) The members of the board shall serve without salary or per diem
6 allowance.
7 C. The district shall have all of the rights and powers necessary to carry
8 out and effectuate the purposes and provisions of this Part. The district shall
9 be subject to the laws pertaining to open meetings, public records, official
10 journals, dual office holding and employment, and the Code of Governmental
11 Ethics. Without limiting the generality of the foregoing, the district shall have
12 the following rights and powers:
13 (1) To adopt bylaws and prescribe rules for the regulation of its affairs
14 and the conduct of its business.
15 (2) To adopt an official seal and alter the same at its pleasure.
16 (3) To maintain an office within the parish at such place as it may
17 designate.
18 (4) To sue and be sued.
19 (5) To receive, administer, and comply with the conditions and
20 requirements respecting any gift, grant, or donation of any property or money.
21 (6) To apply and contract for assistance from the United States or other
22 public or private sources, whether in the form of a grant or loan or otherwise.
23 (7) To make and execute contracts, intergovernmental agreements, and
24 other instruments necessary in the exercise of the powers and functions of the
25 district under this Part, including contracts with persons, firms, corporations,
26 and others.
27 (8) To pledge or assign any contracts or rights of the district.
28 (9) To employ such personnel as may be required in the judgment of the
29 board and to fix and pay their compensation from funds available to the district
Page 5 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 229
SLS 19RS-244 ORIGINAL
1 therefor.
2 (10) To transfer, grant, or donate all or any portion of its revenues to the
3 municipality in order to assist the municipality in funding the delivery of
4 essential public services to its citizens, reducing or eliminating its cash flow
5 deficits or remedying cash flow shortfalls, paying obligations in connection
6 therewith, or any combination of these.
7 (11) To accept the mortgage, pledge, hypothecation, assignment, grant,
8 or donation of any properties of the municipality.
9 (12) To invest its monies in accordance with R.S. 33:2955.
10 (13) To enter into cooperative endeavor agreements or contracts for the
11 provision of staff and meeting facilities and for the provision of such assistance
12 and such essential public services as the district may require in carrying out the
13 intents and purposes of this Part.
14 (14) To incur debt.
15 (15) To exercise any and all other powers necessary to accomplish the
16 purposes set forth in this Part.
17 D.(1) In order to provide funds for the purpose of assisting the
18 municipality to fund the delivery of essential public services to its citizens,
19 reduce or eliminate its cash flow deficit or remedy cash flow shortfalls, pay
20 obligations in connection therewith, or any combination of these, the district is
21 hereby authorized to levy and collect a sales and use tax not to exceed three
22 percent. However, the district shall not levy or collect a tax if the rate thereof,
23 when combined with the rate of the municipal sales and use taxes collected
24 within the municipality, exceeds three percent.
25 (2) The tax shall be imposed by the district without the need of an
26 election and shall be levied upon the sale at retail, the use, the lease or rental,
27 the distribution, the consumption, and the storage for use or consumption of
28 tangible personal property, and on sales of services in the state, as presently
29 defined in and as provided by Chapter 2 of Subtitle II of Title 47 of the
Page 6 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 229
SLS 19RS-244 ORIGINAL
1 Louisiana Revised Statutes of 1950, subject to the tax exemptions provided in
2 Chapter 2 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950.
3 Notwithstanding any provision of law to the contrary, the levy of the tax shall
4 be effective and the tax shall be payable beginning on such date as shall be
5 provided by the district.
6 (3) The proceeds of the tax shall be irrevocably pledged and dedicated
7 and shall be transferred in such amounts as may be determined by the district
8 to assist the municipality in funding the delivery of essential public services to
9 its citizens, reducing or eliminating its cash flow deficit, remedying cash flow
10 shortfalls, paying obligations in connection therewith, or any combination of
11 these.
12 (4) The district shall contract with the parish for the collection of the tax
13 under such terms and conditions as the board may deem appropriate, and the
14 board may adopt such rules and regulations regarding the enforcement and
15 collection of the tax authorized by this Section as it may deem appropriate.
16 (5) The provisions of this Section shall be null, void, and without effect,
17 the district shall cease existence, and any sales and use taxes levied by the
18 district shall expire at such time as the municipality levies and collects a three
19 percent sales and use tax, the end of the quarter following the election to impose
20 the municipal tax if the proposition is not approved by the electorate, or twelve
21 months after the incorporation becomes final, whichever occurs first.
22 §3125. Liberal construction
23 This Part does and shall be construed to provide a complete method for
24 the doing of the things authorized by this Part. The provisions of this Part shall
25 be liberally construed for the accomplishment of its purposes.
26 Section 2. This Act shall become effective upon signature by the governor or, if not
27 signed by the governor, upon expiration of the time for bills to become law without signature
28 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
29 vetoed by the governor and subsequently approved by the legislature, this Act shall become
Page 7 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 229
SLS 19RS-244 ORIGINAL
1 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Michael Bell.
DIGEST
SB 229 Original 2019 Regular Session Claitor
Proposed law, relative to the city of St. George in East Baton Rouge Parish, provides for
transition following incorporation, as follows:
(1)Provides legislative findings and determinations that in the event of incorporation of
the city of St. George a state of emergency will exist until cash flow can be
developed through the levy and collection of municipal sales and use taxes to fund
the expenses of municipal government and that it is essential and necessary to
authorize the continuation of current sales and use taxes levied by the parish and the
provision of services by the parish within the incorporated area and to create a
financial assistance district and provide a source of revenue for it so it may engage
in cooperative endeavors, contract for the provision of essential public services, and
raise revenue to assist the municipality in funding essential public services and
preventing cash flow difficulties.
(2)Defines terms for purposes of proposed law:
(a)Board - the board of directors of the district or any successor thereto.
(b)District - the city of St. George Transition District or any successor thereto.
(c)Mayor-president - the mayor-president of the city of Baton Rouge and parish
of East Baton Rouge.
(d)Municipality - city of St. George in East Baton Rouge Parish.
(e)Municipal tax - the 3% sales and use tax levied by the city of St. George.
(f)Parish - East Baton Rouge Parish.
(g)Parish tax - the 3% sales and use tax levied by the city of St. George.
(3)Upon incorporation of the city of St. George, authorizes the parish to continue to
levy and collect the parish tax within the city of St. George pursuant to an
intergovernmental agreement between the parish and municipality for the purpose
of providing or funding essential public services until the earliest of the following
occurs:
(a)the city of St. George Transition District levies and collects a 3% sales and
use tax; or
(b)the municipality levies and collects a 3% sales and use tax; or
(c)the end of the quarter following the election to impose the municipal tax, if
the voters do not approve the proposition; or
(d)12 months after the incorporation of the city of St. George becomes final.
(4)Creates the city of St. George Transition District as a special taxing district with
boundaries coterminous with the municipality. Provides that the district is a body
Page 8 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 229
SLS 19RS-244 ORIGINAL
politic and corporate and a political subdivision of the state with all of the powers of
a political subdivision. Provides that the legislature determines that the creation of
the district and the carrying out of its public purpose is a public and governmental
purpose for the improvement of the health, safety, welfare, comfort, and security of
the people of the municipality, that such purposes are public purposes, and that the
district will be performing an essential governmental function and meeting a public
obligation in the exercise of the powers conferred upon it by proposed law.
Provides that the district shall be administered and governed by a five-member board
of directors:
(a)The mayor-president or his designee who shall be a registered voter and
living in the district.
(b)One member, who shall be a registered voter and living in the district,
appointed by the senator representing Senate District No. 16.
(c)One member, who shall be a registered voter and living in the district,
appointed by the House member representing House District No. 66.
(d)The chairpersons for the incorporation petition for the city of St. George or
their designees.
Requires that the appointed members be selected on the basis of experience in
management, knowledge, and ability to act effectively for the best interests of the
municipality.
Requires the board to elect one member as chairman and another as treasurer and to
appoint a secretary and such other officers as it deems necessary who need not be
board members.
Provides that a majority of the members constitutes a quorum and requires a majority
vote of the quorum to take action. Provides that a vacancy shall not impair the right
of a quorum to exercise all of the rights and perform all of the duties of the district.
Requires that the district's domicile be in the parish.
Provides that members serve without salary or per diem.
(5)Grants the district all of the rights and powers necessary to carry out and effectuate
the purposes and provisions of proposed law. Provides that the district is subject to
the laws pertaining to open meetings, public records, official journals, dual office
holding and employment, and the Code of Governmental Ethics.
Specifically grants the district certain rights and powers, including:
(a)To receive, administer, and comply with the conditions and requirements
respecting any gift, grant, or donation of any property or money.
(b)To apply and contract for assistance from public or private sources.
(c)To make and execute contracts, intergovernmental agreements, and other
instruments necessary in the exercise of its powers and functions.
(d)To pledge or assign any contracts or rights of the district.
(e)To employ personnel the board deems to be required and to fix and pay their
compensation from funds available therefor.
Page 9 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 229
SLS 19RS-244 ORIGINAL
(f)To transfer, grant, or donate all or any portion of its revenues to the
municipality to assist in funding essential public services, reducing or
eliminating its cash flow deficits or remedying cash flow shortfalls, paying
obligations in connection therewith, or any combination of these.
(g)To accept the mortgage, pledge, hypothecation, assignment, grant, or
donation of any properties of the municipality.
(h)To invest its monies in accordance with present law (R.S. 33:2955) relative
to investments by political subdivisions.
(i)To enter into cooperative endeavor agreements or contracts for the provision
of staff and meeting facilities and for the provision of such assistance and
such essential public services as the district may require in carrying out the
intents and purposes of proposed law.
(j)To incur debt.
(k)To exercise any and all other powers necessary to accomplish the purposes
of proposed law.
(6)Authorizes the district to levy and collect a 3% sales tax to provide funds to assist
the municipality to fund essential public services, reduce or eliminate its cash flow
deficit or remedy cash flow shortfalls, pay obligations in connection therewith, or
any combination of these. Prohibits such levy if the rate of such tax, when combined
with the rate of the municipal sales and use taxes collected within the municipality,
exceeds 3%.
Provides for levy of the tax by district ordinance without the need for an election, in
accordance with present law relative to sales taxes. Provides that the tax levy shall
be effective and the tax shall be payable beginning on such date as provided by the
district.
Requires that tax proceeds are irrevocably pledged and dedicated and shall be
transferred in such amounts as may be determined by the district to assist the
municipality in funding essential public services, reducing or eliminating its cash
flow deficit, remedying cash flow shortfalls, paying obligations in connection
therewith, or any combination of these. Requires the district to contract with the
parish for tax collection and authorizes board rules regarding enforcement and
collection of the tax.
Provides that proposed law relative to the city of St. George Transition District and
its powers and duties shall be null, void, and without effect, that the district shall
cease existence, and that any sales tax levied by the district shall expire when the
earliest of the following occurs: (a) the municipality levies and collects a 3% sales
tax; (b) the end of the quarter following the election to impose the municipal tax, if
the proposition is not approved by the electorate; or (c) 12 months after the
incorporation becomes final.
(7)Provides that proposed law is to be construed to provide a complete method for the
doing of the things it authorizes and that its provisions shall be liberally construed
for the accomplishment of its purposes.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 33:3121-3125)
Page 10 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.