SB 374 — SPECIAL DISTRICTS: Provides for uniform procedure for the creation of college economic development districts for any college or university in any municipality or parish. (gov sig)

(9) To develop public improvement projects for the benefit of the respective college, either directly with the respective college or through one or Page 4 of 12 Coding:

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374 ofENROLLED indebtednessmore andprivate tofoundations levyor andnonprofit causecorporations toaffiliated bewith collectedthe certainrespective taxescollege, asor providedboth. for in this Section and as may be provided by general law.

(6) To regulatetheimposition of feesand rentals charged by the district for the facilities and services rendered.

(7)To borrowmoneyandpledgeallorpartofitsrevenues,leases,rents, or other advantages as security for the loans.

(8) To appoint officers, agents, and employees, prescribe duties, and fix compensation.

(9) To develop public improvement projects for the benefit of the respective college, either directly with the respective college or through one or more private foundations or nonprofit corporations affiliated with the respective college, or both.

F.(1)Itisexpresslyprovidedthatanysalesandusetaxleviedbyacollege economic development district or any subdistrict created by the district may exceed the limitation set forth by Article VI, Section 29(A) of the Constitution of Louisiana and shall be imposed, collected,andcollected, and enforced subject to the terms Pageof 5theresolution imposing thetaxand theprovisions of 15Chapter2of Coding:Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950.

(2)(a) A college economic development district and any subdistrict created by the district may levy taxes or assessments of any type only after the board has adopted an appropriate resolution giving notice of its intention to levythetaxesorassessments.Theresolutionshallincludeageneraldescription of the taxes or assessments to be levied.

The district or subdistrict shall give noticeof itsintention by publication onceperweekfortwoweeksin theofficial journal of the district, the first publication to appear at least fourteen days before the public meeting of the board at which the board shall hear any objections to the proposed taxes or assessments.

The notice of intent so Page 5 of 12 Coding:

SLS 26RS-637 REENGROSSED SB NO.

374 ofENROLLED theresolutionpublished imposingshall thetaxandstate theprovisionsthe ofdate, Chapter2oftime, Subtitleand IIplace of Title 47 of the Louisianapublic Revisedhearing. Statutes of 1950.

(2)(a)(b) AThe collegetaxes economicor developmentassessments districtmay andbe anylevied subdistrictonly createdafter by the districtboard maycalls levya taxesspecial orelection assessmentssubmitting the proposition for the levy of anythe typetaxes onlyor afterassessmentsto the boardqualified haselectorsof adoptedthedistrictorsubdistrict, anas appropriateapplicable, resolutionand givingthe noticeproposition ofreceived itsthe intentionfavorable tovote levythetaxesorassessments.Theresolutionshallincludeageneraldescriptionof a majority of the taxeselectors orvoting assessmentsin tothe beelection. levied.

The district or subdistrict shall give noticeofitsintention bypublication onceperweekfortwoweeksin theofficial journal of the district, the first publication to appear at least fourteen days before the public meeting of the board at which the board shall hear any objections to the proposed taxes or assessments.

The notice of intent so published shall state the date, time, and place of the public hearing.

(b) The taxes or assessments may be levied only after the board calls a special election submitting the proposition for the levy of the taxes or assessments to thequalified electorsof thedistrictorsubdistrict, as applicable, and the proposition received the favorable vote of a majority of the electors voting in the election.

18:402(A)(1)or(B)(1).18:402(A)(1)or (B)(1).

PageG.(1)Acollegeeconomicdevelopmentdistrictmaycreatesubdistrictsas 6provided offor 15in Coding:this Subsection.

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

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374 G.(1)Acollegeeconomicdevelopmentdistrictmaycreatesubdistrictsas provided for in this Subsection.

Each subdistrict shall constitute a political subdivision of thethestateand stateand shall be governed by the board.

(2) The boundaries of a district may be changed in accordance with provisionsPage of6 this Section dealing with the establishment of the12 originalCoding: boundaries.

Ifadistrictisexpandedtoinclude an areawherequalifiedelectors reside, no tax shall be collected in the added area unless the qualified electors of that added area approve the tax in accordancewith Subparagraph (F)(2)(b) of this Section.

H.(1) The district may issue and sell from time to time bonds, notes, renewalnotes,refundingbonds,interimcertificates,certificatesofindebtedness, certificates of participation, debentures,warrants, commercial paper, or other obligations or evidence of indebtedness to provide funds for and to fulfill and achieve its public purpose or corporate purposes, as set forth in this Section, including but not limited to the payment of all or a portion of the costs of a project, to provide amounts necessary for any corporate purposes, including necessary and incidental expenses in connection with the issuance of the obligations, the payment of principal and interest on the obligations of the district, the establishment of reserves to secure the obligations, and all other purposes and expenditures of the district incident to and necessary or convenient to carry out its public functions or corporate purposes, and any Page 7 of 15 Coding:

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374 creditENROLLED enhancementprovisions forof this Section dealing with the obligations.establishment of the original boundaries.

Ifadistrictisexpanded toinclude an areawherequalifiedelectors reside, no tax shall be collected in the added area unless the qualified electors of that added area approve the tax in accordancewith Subparagraph (F)(2)(b) of this Section.

H.(1) The district may issue and sell from time to time bonds, notes, renewalnotes,refundingbonds,interimcertificates,certificatesofindebtedness, certificates of participation, debentures, warrants, commercial paper,or other obligations or evidence of indebtedness to provide funds for and to fulfill and achieve its public purpose or corporate purposes, as set forth in this Section, including but not limited to the payment of all or a portion of the costs of a project, to provide amounts necessary for any corporate purposes, including necessary and incidental expenses in connection with the issuance of the obligations, the payment of principal and interest on the obligations of the district, the establishment of reserves to secure the obligations, and all other purposes and expenditures of the district incident to and necessary or convenient to carry out its public functions or corporate purposes, and any credit enhancement for the obligations.

(3) The obligations shall be authorized, issued, and sold by a resolution ororresolutions resolutions of theboard.the board.

The bonds or obligations may be of thetheseries;bear series;bear the date or dates;

beintheform;carrytheregistrationandexchangeabilityprivileges;bepayable atPage the7 placeof or12 places;Coding:

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

SB NO.

374 ENROLLED at the place or places;

(5) Any obligations of the district may be validly issued, sold, and delivered,notwithstanding thatthatoneormoreoftheofficersof oneormoreoftheofficersoftheboardtheboard signing the obligations, or whose facsimile signature or signatures may be on the obligation shall have ceased to be the officer of the board at the time the obligations have been actually delivered.

(6) Obligations of the district may be sold in the manner and from time to time as may be determined by the board to be most beneficial, subject to approval of the State Bond Commission, and the district may pay all expenses, Pagepremiums, 8fees, ofor 15commissions Coding:which it may deem necessary or advantageous in connection with the issuance and sale thereof.

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

SLS 26RS-637 REENGROSSED SB NO.

374 premiums, fees, or commissions which it may deemnecessary or advantageous in connection with the issuance and sale thereof.

however, no portion of any state sales taxesPage made8 directly available to the district pursuant to an agreement with the state shall be used by the district to pay the costs of constructing12 orCoding: operating any privately owned hotel located within the district without the consent of the Joint Legislative Committee on the Budget or its successor.

(9) For a period of thirty days from the date of publication of the resolutionauthorizingtheissuanceofbonds hereunder,anypersonsininterest shallhavetherighttocontestthelegalityoftheresolutionandthelegalityofthe bond issue for any cause, after which time no one shall have any cause or right of action to contest the legality of the resolution or of the bonds authorized thereby for any cause whatsoever.

If no suit, action, or proceeding has begun contestingthevalidityofthebondissuewithinthirtydays,theauthoritytoissue the bonds and to provide for the payment thereof and the legality thereof and alloftheprovisionsoftheresolutionauthorizingtheissuanceofthebonds,shall be conclusively presumed, and no courtshall haveauthorityto inquire into the matters.

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374 (10)ENROLLED Neithertaxes themade membersdirectly ofavailable to the boarddistrict norpursuant anyto personan executingagreement with the bondsstate shall be personallyused liableby forthe district to pay the bondscosts orof beconstructing subjector tooperating any personalprivately liabilityowned byhotel reasonlocated within the district without the consent of the issuanceJoint thereof.Legislative Committee on the Budget or its successor.

(9) For a period of thirty days from the date of publication of the resolutionauthorizingtheissuanceofbondshereunder,anypersonsininterest shallhavetherighttocontestthelegalityoftheresolutionandthelegalityofthe bond issue for any cause, after which time no one shall have any cause or right of action to contest the legality of the resolution or of the bonds authorized thereby for any cause whatsoever.

If no suit, action, or proceeding has begun contestingthevalidityofthebondissuewithinthirtydays,theauthoritytoissue the bonds and to provide for the payment thereof and the legality thereof and alloftheprovisionsoftheresolutionauthorizingtheissuanceofthebonds,shall be conclusively presumed,and no court shall have authority to inquire into the matters.

(10) Neither the members of the board nor any person executing the bonds shall be personally liable for the bonds or be subject to any personal liability by reason of the issuance thereof.

(11)Allobligationsauthorizedtobeissuedbythedistrictpursuanttothe provisionsprovisionsofthis of this Subsection, togetherwith interestthereof,incometherefrom, and gain upon the sale thereof shall be exempt from all state and local taxes.

any parish, municipality, or other subdivision orinstrumentalityorinstrumentalityofthestate;any ofthestate;anypoliticalsubdivision;politicalsubdivision;

any insurance company or business,Page insurance9 association,of and12 anyCoding: person carrying on an insurance business;andanyexecutor,administrator,curator,trustee,andotherfiduciary;

andanyretirementsystemorpensionfundmaylegallyinvestanysinkingfunds, monies, or other funds belonging to them or within their control in any bonds or other obligations issued by the district pursuant to the provisions of this Subsection, and the bonds or other obligations shall be authorized security for all public deposits.

It is the purpose of this Section to authorize the persons, firms, corporations, associations, political subdivisions and officers, or other entities, public or private, to use any funds owned or controlled by them, including but not limited to sinking, insurance, investment, retirement, compensation, pension, and trust funds, and funds held on deposit, for the purchase of any bonds or other obligations of the district or subdistrict, and that the bonds shall be authorized security for all public deposits.

However, nothingcontainedinthisSectionwithregardtolegalinvestmentsorsecurityfor Page 10 of 15 Coding:

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374 publicdepositsshallbeconstruedasrelievinganyperson,firm,corporation,orENROLLED otherbusiness, entityinsurance fromassociation, and any dutyperson ofcarrying exercisingon reasonablean careinsurance inbusiness;andanyexecutor,administrator,curator,trustee,andotherfiduciary; selecting securities.

I.(1)andanyretirementsystemorpensionfundmaylegallyinvestanysinkingfunds, Notwithstandingmonies, anyor provisionother offunds thisbelonging Section,to athem collegeor economicwithin developmentdistrictandanysubdistrictcreatedbythedistrictshallnotlevyortheir assesscontrol anyin property taxorfeeon any propertywithinbonds the district or subdistrictother thatobligations isissued owned, used, or operated by anthe exemptdistrict entitypursuant asto definedthe inprovisions of this Subsection, and nothe exemptbonds entity shall be subject to any sales or useother taxobligations leviedshall orbe assessedauthorized bysecurity afor districtall orpublic subdistrict.deposits.

It is the purpose of this Section to authorize the persons, firms, corporations, associations, political subdivisions and officers, or other entities, public or private, to use any funds owned or controlled by them, including but not limited to sinking, insurance, investment, retirement, compensation, pension, and trust funds, and funds held on deposit, for the purchase of any bonds or other obligations of the district or subdistrict, and that the bonds shall be authorized security for all public deposits.

However, nothingcontainedinthisSectionwithregardtolegalinvestmentsorsecurityfor publicdepositsshallbeconstruedasrelievinganyperson,firm,corporation,or other entity from any duty of exercising reasonable care in selecting securities.

I.(1) Notwithstanding any provision of this Section, a college economic developmentdistrictandanysubdistrictcreatedbythedistrictshallnotlevyor assessany property tax or fee on any propertywithin thedistrictorsubdistrict that is owned, used, or operated by an exempt entity as defined in this Subsection, and no exempt entity shall be subject to any sales or use tax levied or assessed by a district or subdistrict.

(3)Page For10 purposes of this12 Subsection,Coding: "industrial activities" means manufacturing, refining, fabricating, constructing, assembling, processing, treating, power generation, storage or wholesale distribution of products, commodity, goods, materials, or articles, or procurement or service providers for these activities, including by way of illustration but without limitation:

(a) The processing of raw materials or substances.

(b) The making, manufacturing, or assembling of semi-finished or finished goods, products, or equipment.

(c)The cleaning, servicing,repairing,ortestingofmaterials,goods,and equipmentnormallyassociatedwithindustrialbusinessesorcleaning,servicing, and repair operations to goods and equipment, where the operations have impactsthatwouldmakethemincompatibleinnonindustrialpropertyorareas.

(d) The storage or transshipping of materials, products, goods, and Page 11 of 15 Coding:

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374 equipment.ENROLLED (3) For purposes of this Subsection, "industrial activities" means manufacturing, refining, fabricating, constructing, assembling, processing, treating, power generation, storage or wholesale distribution of products, commodity, goods, materials, or articles, or procurement or service providers for these activities, including by way of illustration but without limitation:

(a) The processing of raw materials or substances.

(b) The making, manufacturing, or assembling of semi-finished or finished goods, products, or equipment.

(c)Thecleaning,servicing,repairing,ortestingof materials,goods,and equipmentnormallyassociatedwithindustrialbusinessesorcleaning,servicing, and repair operations to goods and equipment, where the operations have impactsthatwouldmakethemincompatibleinnonindustrialpropertyorareas.

(d) The storage or transshipping of materials, products, goods, and equipment.

(2) The sales or use tax increment may include hotel occupancy taxes, occupancytaxes,orsimilartaxes,oranycombinationofthesetaxes,leviedupon theuseoroccupancyofhotelroomsifsodesignatedbythegoverningtheuseoroccupancyofhotelroomsifso authoritydesignated by thegoverningauthority ofthedistrictasthetaxrecipiententity,fromtaxpayerslocatedwithinacollege economic development district and subdistrict which exceeds the designated salesorusetaxrevenuesandhoteloccupancytaxes,occupancytaxes,orsimilarPage taxessodesignatedthatwerecollectedintheyearimmediatelypriortotheyear11 inof which12 theCoding: college economic development district and any subdistrict was established.

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

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374 ENROLLED salesorusetaxrevenuesandhoteloccupancytaxes,occupancytaxes,orsimilar taxessodesignatedthatwerecollectedintheyearimmediatelypriortotheyear in which the college economic development district and any subdistrict was established.

A college economic development district shall dissolve and cease to existupon thelatertooccurofthelaterto occur of either one year aftertheafterthedateon date on which all loans, bonds, notes, and other evidences of indebtedness of the district, including refunding bonds, are paid in full as to both principal and interestor fifty years from the creation of the district.

This Act shall become effective upon signature bythe governor or, if not Pagesignedbythegovernor,uponexpirationofthetimeforbillstobecomelawwithoutsignature 12by the governor, as provided by Article III, Section 18 of 15the Coding:Constitution of Louisiana.

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

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374 signedbythegovernor,uponexpirationofthetimeforbillstobecomelawwithoutsignature by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana.

ThePRESIDENT originalOF instrumentTHE andSENATE theSPEAKER followingOF digest,THE whichHOUSE constitutesOF noREPRESENTATIVES partGOVERNOR ofOF theTHE legislativeSTATE instrument,OF wereLOUISIANA preparedAPPROVED: bySenate Legislative Services.

ThePage keyword,12 summary, and digest do not constitute part of the12 lawCoding: or proof or indicia of legislative intent.

[R.S.

1:13(B) and 24:177(E)] DIGEST SB 374 Reengrossed 2026 Regular Session Cathey Proposed law establishes the statewide college economic development district implementationprocedureforthecreationofcollegeeconomicdevelopmentdistrictsforany college or university in any municipality or parish.

Proposed law provides that a college economic and development district, created pursuant to proposed law, shall be created onlyupon the adoption of an ordinancebythe appropriate local governing authority and shall not include any residential property.

Proposedlawprovidesthatthepurposeofthedistrictistoprovideforcooperativeeconomic and community development among the district, the colleges, the parish or municipal governing authority, the state, and the owners of propertyin the district.

Proposed law provides that the parish or municipal governing authority shall establish the boundaries of a district in the ordinance creating it.

Provides that the boundaries of the district shall be coterminous with that boundaries of one or more subdivisions within a parish.

Proposed law provides that the district is governed by a board of commissioners and provides for board composition as follows:

(1) The highest executive officer of the college.

(2) Four persons appointed by the highest executive officer of the college.

Proposed law provides that two of the members of the board shall be representatives from business within the district.

Proposedlawprovidesthatcommissionersservefive-yearterms,withvacanciesfilledinthe manner of the original appointment.

Provides that the president shall serve as long as he is president of the university.

Two members shall serve an initial term of two years, and two members shall serve an initial term of three years, as determined bylot at the first meeting of the board.

Provides that if an appointment to fill a vacancy is not made within 60 days, the board shall appoint an interim successor to serve until the position is filled by the appointing authority.

Authorizes removal of a commissioner for cause by a three-fourths vote of the board.

Provides that commissioners serve without compensation but authorizes reimbursement of expenses.

Proposed law provides that the official journal of the district is the official journal of the parish where the domicile of the board is located.

Provides that a district created pursuant to proposed law is a political subdivision of the state and has the powers of a political subdivision.

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Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

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374 Proposed law provides for the following powers:

(1) To develop public improvement projects for the benefit of the respective college, eitherdirectlywiththerespectivecollegeorthroughoneormoreprivatefoundations or nonprofit corporations affiliated with the respective college, or both.

(2) To exercise the powers granted to a college economic development district established pursuant to present law (R.S.

33:9038.33 and 9038.34).

Present law authorizes the district to utilize increment financing.

Further authorizes a district to levy ad valorem taxes up to five mills, sales taxes up to two percent, and hotel occupancy taxes up to two percent, all subject to voter approval unless there are no voters in the district.

(3) To exercise the powers granted to a community development district established pursuant to present law (R.S.

33:9038.29).

Proposed law provides procedures for the levy of any tax or assessment, including a requirement for voter approval unless there are no voters in the district.

Provides that a districtisexpandedtoincludeanareawherequalifiedelectorsreside,proposedlawprohibits collection of a tax in the added area unless the qualified electors of that added area approve the tax.

Proposed law authorizes the district to create subdistricts which are governed by the board of commissioners and have the same powers as the district.

Proposed law provides that each college economic development district and anysubdistrict createdbythecollegedistrict,andthegoverningboardofcommissionersforthedistrictand subdistrict shall not have any power, authority or right to levy taxes, assessment or fees of anytype or form on anypropertyin anyarea within the district or subdistrict that is used or operated now or in the future for anyindustrial use, as defined in proposed law.

Proposed law defines "exempt entity" and "industrial activities".

Proposed law provides that eachcollege economic development district and anysubdistrict created by the college district may be the recipient of a sales or use tax increment which consist of that portion of the designated incremental sales or use tax collected each year on the sale at retail, the use, the lease or rental, the consumption and storage for use or consumption of tangible personal property, and on sales of services.

Proposed law provides that the sales or use tax increment may include hotel occupancy taxes, occupancytaxes, or similar taxes, or any combination of such taxes, levied upon the use or occupancy of hotel rooms if so designated by the governing authority of the district as the tax recipient entity, from taxpayers located within a college economic development district and subdistrict which exceeds the designated sales or use tax revenues and hotel occupancytaxes, occupancytaxes, or similar taxes so designated that were collected in the year immediately prior to the year in which the college economic development district and any subdistrict was established.

Proposed law authorizes the district to issue bonds and to otherwise incur debt.

Provides requirements and procedures therefor.

Proposed law provides that the district shall dissolve and cease to exist upon the later to occur of either one year after the date on which all debt of the district is paid in full or 50 years from the creation of the district.

Effective upon signature of the governor or lapse of time for gubernatorial action.

(Adds R.S.

33:9731) Page 14 of 15 Coding:

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

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374 Summary of Amendments Adopted by Senate Senate Floor Amendments to engrossed bill 1.

Changes the applicability of proposed law from member institutions under the University of Louisiana System to any college or university in the state of Louisiana.

2.

Makes technical changes.

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