RÉSUMÉ DIGEST
SB 229 2019 Regular Session Claitor
Proposed law, relative to the city of St. George in East Baton Rouge Parish, would provide
for transition following incorporation, as follows:
(1)Would provide 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)Would define 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 2% sales and use tax levied by the city of St. George.
(f)Parish - East Baton Rouge Parish.
(g)Parish tax - the 2% sales and use tax levied by the city of St. George.
(3)Upon incorporation of the city of St. George, would authorize 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 2% sales and
use tax; or
(b)The municipality levies and collects a 2% 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)Would create the city of St. George Transition District as a special taxing district
with boundaries coterminous with the municipality. Would provide that the district
is a body politic and corporate and a political subdivision of the state with all of the
powers of a political subdivision. Would provide 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.
Would provide 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.
Would require 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.
Would require 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.
Would provide that a majority of the members constitutes a quorum and requires a
majority vote of the quorum to take action. Would provide 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. Would require that the district's domicile be in the parish.
Would provide that members serve without salary or per diem.
(5)Would grant the district all of the rights and powers necessary to carry out and
effectuate the purposes and provisions of proposed law. Would provide 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.
Would specifically grant 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.
(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)Would authorize the district to levy and collect a 2% 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. Would prohibit 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 2%.
Would provide for levy of the tax by district ordinance without the need for an
election, in accordance with present law relative to sales taxes. Would provide that
the tax levy shall be effective and the tax shall be payable beginning on such date as
provided by the district.
Would require 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. Would require the district to contract with the
parish for tax collection and authorizes board rules regarding enforcement and
collection of the tax.
Would provide that proposed law relative to the city of St. George Transition
District and its powers and duties shall be void, 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 2% 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)Would provide for the district and the proposed municipality created to be liable for
its proportionate share of the parish's outstanding debt secured by the parish taxes
incurred before the date of incorporation and its proportionate share of all unfunded
liabilities of the parish, including pension plans incurred before the date of
incorporation and other post employment plans.
(a)Would provide the proposed law will not apply to debt secured by parish
taxes that relates to immovable property not located within the municipality
or to debt secured by parish taxes that relates to moveable property not
transferred to the municipality.
(b)Would provide the proposed law will not apply to unfunded liabilities
associated with employees and retirees who did not provide services to the
area of the parish included in the municipality.
(c)Would provide that, notwithstanding any other provision of law to the
contrary, the municipality will not pay more in any year than the percentage
of the proportionate share of the unfunded liabilities paid by the parish in the
same year.
(d)Would provide that all funds remitted to the parish by the municipality
pursuant to proposed law related to the municipality's proportionate share of
bonded indebtedness will be used by the parish for only the retirement of
bonded indebtedness. All funds remitted to the parish by the municipality
pursuant to proposed law related to the municipality's proportionate share of
unfunded liabilities will be used by the parish for only the retirement of the
unfunded liabilities. No funds remitted to the parish pursuant to proposed law
will be used for any other purpose.
(8)Would provide for an exception that the parish will no longer be responsible for
providing any municipal services as provided by law, unless agreed through a
cooperative endeavor agreement or memorandum of understanding or other
agreement. (9)Would provide that no payments to the parish will be required until the final
incorporation of the municipality, or if contested pursuant to R.S. 33:3(D), until the
judgment is final.
(10)Would provide 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.
Would have become effective upon signature of the governor or lapse of time for
gubernatorial action.
(Would have added R.S. 33:3121-3125)
VETO MESSAGE: "Please be advised that I have vetoed Senate Bill 229 of the 2019
Regular Session.
This bill, as originally drafted, created a transition structure should the voters approve of the
incorporation of the City of St. George in the election that I called for October 12th. While
it is arguable that this legislation is unnecessary at this point in time and presupposes a result
of an election that has yet to take place, the original bill was silent as it related to the future
obligations of any new government in St. George for outstanding debt secured by parish
taxes. Through a negotiated agreement, the bill was amended without objection in Senate
committee to provide for payment of existing debt in proportionate share. However, the bill
was amended on the Senate floor to limit the responsibility of St. George for liabilities and
other bonded indebtedness for services that have been provided to the residents of the St.
George area for decades.
Many in the Baton Rouge community have expressed grave concerns about the finally passed
version of this bill, including Mayor Broome and Baton Rouge Area Chamber. They agree
with me that if the voters do approve of a newly incorporated City of St. George, there should
be a thoughtful, fair, and equitable transition process. This transition structure can be set up
at that time through a cooperative endeavor agreement between the parish and the
municipality. However, that structure should ensure, as proposed in the engrossed bill this
year, that "the proposed municipality created shall be liable for its proportionate share of the
parish's outstanding debt secured by parish taxes and its proportionate share of unfunded
liabilities of the parish, including pension plans and other post-employment plans." This will
ensure that, should the voters approve of the incorporation, St. George, like any other
municipality in the state, pays the bill for the services its residents have received and does
not leave those obligations with those outside of its boundaries."