RÉSUMÉ DIGEST
ACT 320 (SB 459) 2020 Regular Session Reese
New law creates the Vernon Parish Development District (district) as a body politic and
political subdivision of the state. Provides that the district, acting through its board of
commissioners, the governing authority of the district, is granted all of the rights, powers,
privileges, and immunities granted to political subdivisions for economic and industrial
development purposes, including but not limited to the power of taxation, the power to incur
debt, and issue revenue and general obligation bonds.
Provides that the district is established for the primary object and purpose of promoting and
encouraging the development of economic and industrial opportunities, stimulating the
economy through renewed commerce and industry, and for the utilization and development
of natural and human resources of the area by providing job opportunities.
Provides that the boundaries of the district will be coterminous with the boundaries of
Vernon Parish.
Provides that the district will be governed by a board of commissioners consisting of nine
members selected as provided for in new law. All members shall be qualified voters and
taxpayers within the limits of the district during their term of office.
New law provides that the district, acting by and through its board, shall have and exercise
all powers of a political subdivision necessary or convenient for the carrying out of its objects
and purposes, including but not limited to:
(1)To sue and be sued.
(2)To adopt, use, and alter at will a corporate seal.
(3)To acquire by gift, grant, or purchase, any property, including rights of way; to hold
and use any franchise or property, real, personal, or mixed, tangible or intangible, or
any interest therein, necessary or desirable for carrying out the objects and purposes
of the district, including but not limited to the establishment, maintenance, and
operation of industrial parks, ports, harbors, and terminals.
(4)To enter into contracts for the purchase, acquisition, construction, and improvement
of works and facilities necessary in connection with the purposes of the district.
(5)In its own name and on its own behalf to incur debt and to issue general obligation
bonds, revenue bonds, certificates, notes, and other evidences of indebtedness and
to levy and cause to be collected certain taxes.
(6)To require and issue licenses with respect to its properties and facilities.
(7)To regulate the imposition of fees and rentals charged by the district for its facilities
and services rendered by it.
(8)To borrow money and pledge all or part of its revenues, leases, rents, or other
advantages as security for such loans.
(9)To appoint officers, agents, and employees, prescribe their duties, and fix their
compensation.
(10)To engage in public relations, advertising, marketing activities, and to provide and
disseminate information.
(11)To engage in government relations, ombudsman activities, and government liaison.
(12)To provide financial and financing assistance.
(13)To provide tax abatement. (14)To provide, directly or indirectly, planning and coordination for economic
development and resource utilization, including such functions as industrial and
economic research and industrial programming and solicitation.
(15)To provide industrial training, technical assistance, and technology transfer.
(16)To use public and other legal powers to facilitate development.
(17)To promote transfer mechanisms to take ideas, from their point of origin or
development, to commercially successful utilization by local enterprises.
(18)To foster entrepreneurial activities in Vernon Parish or in the region.
(19)To promote the development of new products, processes, or services or new uses for
existing products, processes, or services manufactured, produced or marketed in
Vernon Parish or in the region.
(20)To support market research aimed at identifying new markets for local or regional
products and processes, including international markets; to determine the
characteristics, needs, and preferences of those markets; and to develop new
marketing techniques to exploit those markets.
(21)To foster and support economic and industrial development and education in
cooperation with private business enterprises, financial institutions, educational
institutions, nonprofit institutions and organizations, state government and political
subdivisions of the state, the federal government, and other organizations or persons
concerned with research, development, education, commercial application, and
economic or industrial development in ways that increase the economic base of
Vernon Parish or of the region.
(22)The board may enter a cooperative endeavor agreement with the Vernon Parish
Economic Development Foundation or any successor thereof, or the Vernon Parish
government or any other eligible entity pursuant to applicable laws to achieve any of
the lawful purposes of the district.
(23)For purposes enumerated in new law and in order to achieve any of the lawful
purposes of the district, the district may engage in whatever activities and projects
it deems most appropriate to encourage and to assist economic growth and
development.
Provides that the district shall have the power to construct, acquire, finance, or lease
facilities, including sites or facilities for industrial, business or commercial parks and plants,
and including the acquisition of sites and facilities and other necessary property or
appurtenances thereto within or outside the district, and to acquire, construct, improve,
operate, maintain, and provide improvements and services necessary therefor, including but
not limited to roads, street lighting, bridges, rail facilities, drainage, sewage disposal
facilities, solid waste disposal facilities, waterworks, and other utilities and related
properties. However, in connection with any projects outside the geographic boundaries of
the district, the district must make a determination that such development provides a
substantial benefit to the district, the region, or to business and industry of persons located
within the geographic boundaries of the district or region.
Provides that the district will also have the authority to sell, lease, or otherwise dispose of,
by suitable and appropriate contract, to any enterprise locating or existing within the district
all or any part of a site, building, or other property owned by the district. In determining the
consideration for any contract to lease, sell, or otherwise dispose of lands, buildings, or other
property of the district, the board of commissioners may take into consideration the value of
the lands, buildings, or other properties involved as well as the potential value of the
economic impact of the enterprise being induced to locate or expand within the district. Such
economic impact shall include increased employment, increased use of local labor, wages
and salaries to be paid, consumption of local materials, products, and resources, and special
tax revenues to be generated by the enterprise acquiring or leasing lands, buildings, or other
property from the district. The district shall be empowered to enter into leases. Provides that the board may, when necessary, levy annually an ad valorem tax, provided that
the amount, term, and purpose of the tax, as set out in a proposition submitted to a vote in
accordance with the Louisiana Election Code, is approved by a majority of the qualified
electors voting in a special election held for that purpose.
Provides that the board may, subject to approval of a majority of the electors voting at an
election held for the purpose, levy and collect a sales and use tax within the boundaries of
the district for such purposes and at such rate as provided by the proposition authorizing its
levy, not exceeding one percent, which tax may exceed the limitation set forth in the
Constitution of Louisiana.
Provides that the tax will be levied upon the sale at retail, the use, the lease or rental, the
consumption, the distribution and storage for use or consumption of tangible personal
property, and upon the sales of services within the district, all as presently defined in prior
law.
Provides that the district will have authority to incur debt for any one or more of its lawful
purposes set forth in new law, to issue in its name negotiable bonds, notes, certificates of
indebtedness, or other evidences of debt and to provide for the security and payment thereof.
Provides that the district may in its own name and behalf incur debt and issue general
obligation ad valorem property tax secured bonds when approved by a majority of the
qualified voters who vote in a special election called and conducted under the authority of
the Louisiana Election Code. General obligation bonds of the district may be issued for any
of the purposes for which the district is created or is authorized to act under any provisions
of this Subpart all of which purposes are hereby found and declared to be public purposes
and functions of the state, which are delegated to the district.
Provides that the district may in its own name and behalf issue revenue bonds for the
purposes for which the district is created or is authorized to act, including improvement
revenue bonds.
Provides that revenue bonds may be issued by the district to accomplish any of the authorized
public functions or purposes set in new law. All such bonds are negotiable instruments and
shall be solely the obligations of the district. Such bonds shall be authorized and issued by
resolution adopted by a majority vote of the board and are of such series, bear such date or
dates, mature at such time or times, bear interest at such rate or rates, be in such
denominations, be in such form, either coupon or fully registered without coupons, carry
such registration and exchangeability privileges, be payable at such place or places, be
subject to such terms of redemption, and be entitled to such priorities on the income,
revenue, and receipts of the district as the resolution may provide. The bonds shall be signed
by such officers as the district shall determine, and such signatures may be by facsimile.
Provides that such bonds will be sold by the board in such manner as may be determined by
the district to be most beneficial to the district and the district shall pay all expenses and
commissions that it may deem necessary or advantageous in connection with the issuance
and sale of such bonds. Such bonds may, in the discretion of the district, be additionally
secured by a mortgage on all or any part of the projects acquired, constructed, extended, or
improved with the proceeds thereof, and the district shall have full discretion to make such
provisions as it may see fit for the making and enforcement of such mortgage and provisions
to be therein contained.
Provides that bonds, certificates, or other evidences of indebtedness issued by the district are
deemed to be securities of public entities, and shall be subject to defeasance, and may be
refunded, and may also be issued as short-term revenue notes of a public entity.
Provides that the district and all properties at any time owned by the district and the income
therefrom and all bonds, certificates, and other evidence of indebtedness issued by the district
under new law and the interest or income therefrom will be exempt from all taxation by the
state.
Provides that the district will be subject to the state laws pertaining to open meetings, public
records, fiscal agents, official journals, dual officeholding and employment, public bidding
for the purchase of supplies and materials, and construction of public works, the Code of Governmental Ethics, the Right to Property and the Louisiana Election Code. Provides an
exception for the records in the custody of the district pertaining to an active negotiation with
a person for the purpose of retaining, expanding, or attracting economic or business
development in Vernon Parish which shall be confidential.
Provides that the district will have the power and right to adopt a program or programs
awarding contracts to, and establishing set-aside goals and preference procedures for the
benefit of, businesses owned and operated by socially or economically disadvantaged
persons.
Provides that the financial records of the district shall be subjected to audit by the legislative
auditor.
Effective upon signature of the governor (June 12, 2020).
(Adds R.S. 33:130.870-878)