ENROLLED
ACT No. 408
2021 Regular Session
HOUSE BILL NO. 137
BY REPRESENTATIVE DUPLESSIS
1 AN ACT
2 To amend and reenact R.S. 27:243(C)(introductory paragraph), (4)(b), and (5) and
3 248(C)(2)(introductory paragraph), (3), (4), and (5) and to enact R.S. 27:243(C)(6),
4 relative to non-gaming economic development by the casino gaming operator; to
5 provide relative to hotel room taxes; to provide relative to taxation of entertainment
6 and parking; to provide relative to the operating force or personnel level; to provide
7 relative to the employment positions toward the total operating force or personnel
8 level; to provide relative to the amount credited to the casino gaming operator; and
9 to provide for related matters.
10 Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 27:243(C)(introductory paragraph), (4)(b), and (5) and
12 248(C)(2)(introductory paragraph), (3), (4), and (5) are hereby amended and reenacted and
13 R.S. 27:243(C)(6) is hereby enacted to read as follows:
14 §243. Requirements for casino operating contract
15 * * *
16 C. Beginning August 1, 2019, the casino operator is authorized to conduct
17 the following non-casino related activities at the official gaming establishment or at
18 another location subject to the requirements set forth in Paragraphs (1), (2), (3), and
19 (4), (5), and (6) of this Subsection:
20 * * *
21 (4)
22 * * *
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1 (b) Among other things, the memorandum of understanding and agreement
2 with the Greater New Orleans Hotel and Lodging Association dated April 2019, shall
3 provide for the following:
4 (i) Only for those additional rooms authorized by the memorandum of
5 understanding and agreement dated April 2019, advertising of market rates shall be
6 based on average seasonal rates for the preceding year of luxury hotels in the Central
7 Business District, French Quarter, and Warehouse District of the City city of New
8 Orleans, as compiled by a nationally recognized firm.
9 (ii) For rooms existing prior to August 1, 2018, room taxes levied and
10 collected by the city of New Orleans shall be paid by the casino gaming operator on
11 all discounted and complimentary rooms to be paid at the applicable tax rates based
12 upon average seasonal rates for the preceding year of hotels in the Central Business
13 District and French Quarter of the City city of New Orleans, as compiled by a
14 nationally recognized firm. For those hotel rooms added after 2019 and authorized
15 by the memorandum of understanding and agreement dated April 2019, room taxes
16 levied and collected by the city of New Orleans shall be paid by the casino operator
17 on all discounted and complimentary rooms to be paid at the applicable tax rates
18 based upon average seasonal rates for the preceding year of luxury hotels in the
19 Central Business District, French Quarter, and Warehouse District of the City of
20 New Orleans, as compiled by a nationally recognized firm.
21 (iii) Complimentary rooms provided by the casino gaming operator shall not
22 be subject to the state sales and use tax. Room taxes levied and collected by the city
23 of New Orleans, sales and use taxes levied by the state of Louisiana, and sales and
24 use or occupancy taxes levied by any other political subdivision on rooms provided
25 at a discount by the casino gaming operator shall be paid at the applicable rates
26 based on the amount actually paid or charged for the room.
27 (iv) In order to establish and stabilize the amount of occupancy taxes to be
28 paid by the casino gaming operator to the Louisiana Stadium and Exposition District
29 and the Ernest N. Morial-New Orleans Exhibition Hall Authority for complimentary
30 rooms provided by the casino gaming operator, which amount is otherwise uncertain,
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1 the casino gaming operator shall enter into a binding memorandum of understanding
2 with the Louisiana Stadium and Exposition District and the Ernest N. Morial-New
3 Orleans Exhibition Hall Authority to provide for cumulative annual payments for the
4 occupancy taxes of not less than one million three hundred thousand dollars per year,
5 with the first payment beginning on July 1, 2022, and continuing through July 31,
6 2054, the payment to be made on a quarterly basis as may be set forth in the binding
7 memorandum of understanding. Any action related to the enforcement of the
8 binding memorandum of understanding set forth herein and any related agreements
9 shall be instituted in the Civil District Court for the parish of Orleans.
10 (5) The casino gaming operator shall remit state and local sales and use taxes
11 at the applicable tax rates on all complimentary and discounted food, beverage, or
12 entertainment offerings based on the actual value of food, beverage, or entertainment
13 provided. The casino gaming operator shall remit state and local sales and use taxes
14 at the applicable tax rates on all parking provided at a charge to the customer or the
15 general public.
16 (6) The casino gaming operator shall not engage in such activities as are
17 prohibited by the casino operating contract.
18 * * *
19 §248. Non-gaming economic development by casino gaming operator
20 * * *
21 C. As to non-gaming economic development activities:
22 * * *
23 (2) The total operating force or personnel level of the third-party tenants
24 shall be reported to the board quarterly on the following dates every year:
25 * * *
26 (3) The reported operating force or personnel level for the prior quarter shall
27 be determined by taking into account the greater of either the three-month average
28 for the applicable reporting quarter or the highest monthly total during the applicable
29 reporting quarter. The reported operating force or personnel level for the prior
30 quarter shall be credited to the casino gaming operator for purposes of meeting its
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1 obligations under R.S. 27:244(A)(11), provided that such credit shall be limited to
2 four hundred employment positions toward no more than half of the total operating
3 force or personnel level required by R.S. 27:244(A)(11).
4 (4) For purposes of this Section, "operating force or personnel level" shall
5 mean the number of people employed by the casino and any related non-gaming
6 entity, including hotel operations, hospitality outlets, third-party tenants, and
7 corporate employees, and any third-party contractors that work at the casino and any
8 related non-gaming venue, excluding any third-party contractors providing personal
9 or professional services; however, the employees of third-party contractors shall be
10 included only until the capital investment requirement set forth in R.S.
11 27:241(A)(2)(b) has been fulfilled.
12 (5) The casino gaming operator shall be credited an amount equal to the pro
13 rata share of compensation to employees of the third-party tenants. The credited
14 amount shall be applied to the total salary level or compensation reported under R.S.
15 27:244(A)(12) and shall be calculated based on the total operating force or personnel
16 level reported pursuant to R.S. 27:248(C)(2) Paragraph (2) of this Subsection.
17 Section 2. The provisions of this Act shall be effective on July 1, 2021.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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