The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Martha S. Hess.
DIGEST
SB 226 Original 2021 Regular Session White
Proposed law sets forth legislative findings and determinations relative to the Hurricane and Storm
Damage Risk Reduction System (Risk Reduction System) which cost approximately $14 billion of
which the state is contractually obligated to pay approximately $3.27 billion over a 30-year term.
Further, Congress has authorized a forgiveness of the interest owed by the state provided the state
makes an initial principal payment of $400 million prior to September 30, 2021, with the remaining
principal to be paid by September 30, 2023, which if exercised, would save the state at least $1
billion.
Proposed law sets forth additional findings and determinations that the state could issue general
obligation bonds in order to take advantage of the Congressional proposal, however, that could affect
the amount of general obligation bonds to be issued to meet the capital outlay needs of the state and
political subdivisions of the state and may affect the state's debt limit.
Proposed law creates a special district to be known as the Southeast Louisiana Taxing District as a
body politic and corporate and a political subdivision of the state with all the powers of a political
subdivision and such other powers and functions as set forth in proposed law.
Proposed law provides that the district shall be composed of those contiguous parishes which have
the following populations, according to the latest U.S. Census, as follows:
Between 23,000 and 23,400.
Between 35,700 and 39,000.
Between 52,500 and 54,500.
Between 300,000 and 400,000.
Between 400,000 and 435,000.
Proposed law provides that the district shall be governed by a board of directors of eleven members
composed of:
(1)The president of the Senate and the speaker of the House of Representatives, or their
designees, who shall be ex officio members of the board with full right to participate in and
vote on all matters.
(2)The state treasurer. (3)The secretary of the Department of Revenue, or the designee of the secretary.
(4)Five members appointed by the governor, one from each of the five parishes which are
included in the district.
(5)Two residents of the state at large selected on the basis of their experience in financial
matters and their stature and ability to act effectively for the best interests of the district and
the state.
Proposed law provides for the selection of officers, the adoption of bylaws and rules, and the
establishment of quorums. Proposed law provides that the domicile of the district shall be in Baton
Rouge.
Proposed law provides that the members of the board shall serve without salary or per diem, but shall
be entitled to reimbursement for actual and necessary expense incurred in the performance of official
duties, but such expenses shall not exceed the rate of expense reimbursement allowed to state
employees.
Proposed law provides for the powers of the district which includes to levy and collect a sales and
use tax not to exceed one percent within the district. The sales and use tax shall be imposed by
ordinance of the district without the need of an election and shall be levied upon the sale at retail,
the use, lease or rental, the consumption, and the storage for use or consumption of tangible personal
property, and on sales of service, all as defined in Chapter 2 of Subtitle II of Title 47 of the Louisiana
Revised Statute of 1950 in the district.
Proposed law provides that the sales tax shall be in addition to all other authorized sales and use
taxes and shall be collected at the same time and in the same manner as set forth in present law. Any
sales and use tax levied by the district shall be excluded from the calculation of total sales and use
taxes levied within an area for the purposes of present law. Proposed law states that the tax shall be
imposed and collected uniformly throughout the district and that the district may contract with the
state for the collection of said sales and use taxes. Proposed law prohibits the district from funding
the sales tax revenues into bonds.
Proposed law provides that proposed law shall be null, void, and without effect, and the district shall
cease existence, and any sales and use taxes levied by the district shall expire at such time that all
bonds issued by the state to pay the USACE for the state's share of the costs of the Risk Recovery
System are paid in full; provided, however, that any delinquent taxes that are paid after the expiration
of the district shall be used for the payment of state debt service on general obligation bonds.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 39:1151-1159)