la-202609-a044629e29: Louisiana Cultural Districts Program

Department of Culture, Recreation, and Tourism Office of Cultural Development Louisiana Cultural Districts Program (LAC 25:I.Chapter 11) The Department of Culture, Recreation and Tourism, Office of Cultural Development, proposes to amend the rules contained in Title 25, Part I, Chapter 11 of the Louisiana Administrative Code concerning Cultural Districts, pursuant to the authority granted in R.S. 47:6019. The Department of Culture, Recreation and Tourism, Office of Cultural Development proposes to update references and terminology, clarify application reporting, recertification, and termination procedures, revise annual report components, and remove outdated sales tax exemption provisions. The proposed amendments are intended to improve program administration, provide greater clarity to participating local governing authorities, promote consistent statewide implementation of the Cultural Districts Program, and ensure that certified cultural districts continue to advance the purposes established by R.S. 47:6019. The amendments also incorporate technical and organizational revisions intended to improve readability and eliminate obsolete provisions resulting from statutory changes. Title 25 CULTURAL RESOURCES Part I. Office of Cultural Development Chapter 11.Cultural Districts §1101.Purpose and Authority A.This Chapter sets forth the standards and procedures for the creation and management of cultural products districts, also called cultural districts, which may be used by local governing authorities as a mechanism for community revitalization through the creation of hubs of cultural activity. AUTHORITY NOTE:Promulgated in accordance R.S. 47:6019. HISTORICAL NOTE:Promulgated by the Department of Culture, Recreation and Tourism, Office of Cultural Development, LR 34:599 (April 2008), amended LR 52: §1103.Definitions A.The following definitions shall apply for purposes of this Chapter, unless specifically defined otherwise. Assistant Secretary—the Assistant Secretary of the Office of Cultural Development, Department of Culture, Recreation and Tourism. Cultural District—an area designated by a local governing authority and certified by the Department of Culture, Recreation and Tourism in accordance with the statutory and regulatory procedures, standards, and criteria pertaining to such districts, which district shall be created for the purpose of revitalizing a community by creating a hub of cultural activity. Department—the Department of Culture, Recreation and Tourism. Local Governing Authority—the governing authority of the parish in which the Cultural District is located unless the district is located within a municipality, in which case "local governing authority" shall mean the governing authority of the municipality. If the district is located partly in a municipality, "local governing authority" shall mean the governing authority of the parish and the governing authority of the municipality. Secretary—the Secretary of the Department of Culture, Recreation and Tourism. AUTHORITY NOTE:Promulgated in accordance with R.S. 47:6019. HISTORICAL NOTE:Promulgated by the Department of Culture, Recreation and Tourism, Office of Cultural Development, LR 34:599 (April 2008), amended LR 36:469 (March 2010), amended LR 52: §1105.Application A.A local governing authority may submit to the department an application to designate and certify a specified geographic area as a cultural district. B.Applications shall be submitted in accordance with the timetable and in the format provided by department policy. C.If the department, acting through the assistant secretary, deems the application incomplete or requires additional information, the department shall notify the local governing authority through its designated contact, and in such notice, the department shall specify the deficiencies and/or information required to complete the application. 1.If the local governing authority is notified of a deficiency in the application or additional information is requested, the local governing authority shall remedy the deficiency or provide the requested information by the date specified in the notice of deficiency. 2.If the local governing authority does not remedy the deficiency or provide the requested information by the date specified in the notice of deficiency, the application will be deemed incomplete and will not be reviewed further. AUTHORITY NOTE:Promulgated in accordance with R.S. 47:6019. HISTORICAL NOTE:Promulgated by the Department of Culture, Recreation and Tourism, Office of Cultural Development, LR 34:599 (April 2008), amended LR 36:469 (March 2010), amended LR 52: §1107.Criteria A.The assistant secretary shall evaluate the proposed cultural district to determine whether it meets the mandatory criteria set forth in law. B.If the proposed district meets the mandatory criteria, the assistant secretary shall then evaluate the potential of the proposed cultural district to accomplish the following purposes: 1.revitalize a neighborhood or area; 2.stimulate the economy; 3.engage residents; 4.draw tourists; 5.provide a sense of community; 6.serve as a gathering place; 7.encourage creativity; 8.strengthen community partnerships; 9.promote the arts and support artists; 10.develop a positive image for the area; 11.enhance property values; and 12.capitalize on local cultural, economic and social assets. AUTHORITY NOTE:Promulgated in accordance with R.S. 47:6019. HISTORICAL NOTE:Promulgated by the Department of Culture, Recreation and Tourism, Office of Cultural Development, LR 34:599 (April 2008), amended LR 36:469 (March 2010), amended LR 52: §1109.Determination and Appeals A.The department, through the assistant secretary, shall notify the local governing authority in writing whether the proposed cultural district has been certified as proposed, has been certified with amendments, or has been returned with no action. B.The effective date of the certification shall be the date specified in the final written notice of approval. C.Within 30 days of the local governing authority's receipt of the decision of the department, the local governing authority may submit a request for administrative review to the secretary. A request for administrative review shall include the following: 1.identification of the decision to which the request pertains; 2.a statement of the decision sought; 3.a statement of the facts and reasons upon which such relief is requested; and 4.the name and address to which the department will send all communications regarding the request. D.The effective date for determining whether qualifying rehabilitation expenses may be eligible for historic tax credits shall be governed by the federal, state laws, rules and policies of the historic tax credit programs administered by the Division of Historic Preservation. AUTHORITY NOTE:Promulgated in accordance with R.S. 47:6019. HISTORICAL NOTE:Promulgated by the Department of Culture, Recreation and Tourism, Office of Cultural Development, LR 34:600 (April 2008), amended LR 36:469 (March 2010), amended LR 52: §1111.Reporting Requirements A.Each year, the local governing authority shall prepare and submit to the department an annual report on the impact of the certified cultural district with regard to the purposes of the creation of a cultural district. This reporting requirement begins one full year after certification. B.The local governing authority shall submit the annual report in the format set forth by the department. C.The annual report shall reflect the activity of the year. D.The annual report shall also include cumulative data reflecting activity since the date of the creation of the cultural district. E.The annual report shall include information that describes the impact, including the economic impact, of the cultural district on the community. Illustrative examples of relevant information the local governing authority may include in its annual report: 1.The number of businesses, including the net new businesses, located in the cultural districts 2.Evidence of cultural activity in the district, including the number of cultural events and attendees at each F.If the local governing authority fails to submit the annual report for three consecutive years, the department shall require the local governing authority to apply for certification of the cultural district using the procedure set forth in Section 1119 (A)-(B). In the event the local governing authority fails to apply for or obtain recertification, the department shall initiate the procedures to terminate certification set forth in Section 1119(C). AUTHORITY NOTE:Promulgated in accordance with R.S. 47:6019. HISTORICAL NOTE:Promulgated by the Department of Culture, Recreation and Tourism, Office of Cultural Development, LR 34:600 (April 2008), amended LR 36:470 (March 2010), amended LR 52: §1113.Boundaries A.Following adequate public notice and a period for public comment, a local governing authority may submit to the department an application to amend the boundaries of an established cultural district. B.Applications shall be submitted in accordance with the timetable and in the format provided by the department, and shall include: 1.identification of the changes from the current to proposed boundaries; 2.a description of the zoning and/or use of the property that would be included or excluded under the proposed boundary change; 3.the reasons for the proposed change; 4.documentation that the public was notified of the proposed boundary change and had an opportunity to respond in writing to support or oppose the change; 5.all letters, statements, surveys or other indicia of support for the boundary change, including a resolution of support by the local governing entity; 6.all letters, statements, surveys or other indicia of opposition to the proposed boundary change, to the extent such are known or should be known to the local governing authority. C.If the department deems the application incomplete or requires additional information, the department shall notify the local governing authority through its designated contact, and in such notice, the department shall specify the deficiencies and/or information required to complete the application. The local governing authority shall remedy the deficiency as set forth in §1105 C. D.The department shall inform the local governing authority whether the proposed boundary change has been approved as proposed or has been returned with no action. E.Within 30 days of the local governing authority's receipt of the decision of the department, acting through the assistant secretary, the local governing authority may submit a request for administrative review to the secretary by following the procedure outlined in §1109.B. F.The effective date of the approved boundary change shall be the date specified in the final approval from the department. AUTHORITY NOTE:Promulgated in accordance with R.S. 47:6019 HISTORICAL NOTE:Promulgated by the Department of Culture, Recreation and Tourism, Office of Cultural Development, LR 34:601 (April 2008), amended LR 36:470 (March 2010), amended LR 52: §1115.Termination by Local Governing Authority A.Following adequate public notification and a period for public comment, a local governing authority may terminate the existence of an established cultural district by resolution or ordinance. B.At a minimum, the local governing authority shall publish notice of its intent to terminate the cultural district in the official parish journal, and the official website of the local governing authority, and shall take all necessary and reasonable steps to contact all property owners, tenants, the department, and any other organization or individual who have requested to receive such notices. C.The notice shall include: 1.identification of the cultural district to be terminated; 2.the reasons for the proposed termination; 3.the name and contact information for the individual to whom the public may submit comments to support or oppose the termination; 4.the date, time, and location of a public hearing, if any; 5.the deadline to receive public comment. D.The effective date of the termination shall be the date specified in the written notice issued by the local governing authority. AUTHORITY NOTE:Promulgated in accordance R.S. 47:6019. HISTORICAL NOTE:Promulgated by the Department of Culture, Recreation and Tourism, Office of Cultural Development, LR 34:601 (April 2008), amended LR 36:470 (March 2010), amended LR 52: §1117.Procedure for Recertification of a Cultural District A.The department shall provide written notice and instruction to the local governing authority to apply for recertification of a cultural district under any of the following circumstances: 1.the local governing authority has failed to submit the required reports and documentation for the cultural district for at least three consecutive years; 2.the local governing authority has failed to submit the required reports and documentation for the cultural district timely, accurately, or completely for at least three consecutive years; 3.an audit or review conducted or approved by the department reveals that the cultural district no longer meets the mandatory criteria, goals, or objectives; 4.a cost-benefit analysis conducted or approved by the department reveals that the cultural district is no longer in the public interest. B.Following the local governing authority’s failure to apply for or obtain recertification of a cultural district, the department may proceed with the of a cultural district as follows. 1.The department shall provide the public notice of its intent to decertify the cultural district in the official parish journal, publication on the department website, and through written notice by mail to the local governing authority through its designated contact. 2.The notice shall set forth the facts that warrant decertification, the proposed date of decertification, and the procedure and deadline by which a member of the public may submit comment, feedback, or opposition. 3.The department shall issue its final decision no less than ninety days following its initial notice of intent to decertify the district. 4.The effective date of the decertification shall be the date specified in the written notice of intent. 5.Notwithstanding the foregoing, any project approved by the Division of Historic Preservation for a State commercial Part 1 Application withing the five-year period preceding decertification of a cultural district shall remain eligible for a state tax credit pursuant to R.S. 47:6019. However, in accordance with applicable laws, regulations and policies, the project shall lose eligibility if the project is dormant for five years following the approval of the Part 1 Application. AUTHORITY NOTE:Promulgated in accordance with R.S. 47:6019. HISTORICAL NOTE:Promulgated by the Department of Culture, Recreation and Tourism, Office of Cultural Development, LR 34:601 (April 2008), amended LR 36:470 (March 2010), amended LR 52: Family Impact Statement The proposed Rule is not anticipated to have an impact on family formation, stability, and autonomy as described in R.S. 49:972. Poverty Impact Statement The proposed Rule is not anticipated to have an impact on poverty as defined by R.S. 49:973. Small Business Analysis In accordance with R.S. 49:974.5, the impact of this proposed Rule on small businesses has been considered. There is no known adverse impact on the establishment of less stringent compliance or reporting requirements for small businesses; the establishment of less stringent schedules or deadlines for compliance or reporting requirements for small businesses; the consolidation or simplification of compliance or reporting requirements for small businesses; the establishment of performance standards for small businesses to replace design or operational standards required in the proposed Rule; or the exemption of small businesses from all or any part of the requirements contained in the proposed Rule. Provider Impact Statement In accordance with House Concurrent Resolution 170 of the 2014 Regular Session, the impact of this proposed Rule on organizations that provide services for individuals with developmental disabilities has been considered. It does not have any effect on provider staffing levels, qualifications, costs, or overall ability of providers to provide the same level of service. Public Comments Interested persons may submit written comments to Francesca Vega, Office of Cultural Development, Division of the Arts, P.O. Box 44247, Baton Rouge, LA 70804-4247 or via email at fvega@crt.la.gov. The deadline for submitting written comments is at 4:30 p.m. on October 10, 2026. Public Hearing A public hearing to receive comments on the Notice of Intent will be held on October 27, 2026 beginning at 9 a.m. All interested persons will be afforded an opportunity to submit data, views, or arguments, orally or in writing, at said hearing. The hearing will be held at the Louisiana Office of Cultural Development, Division of the Arts, 1051 N. Third Street, Baton Rouge, LA 70802. Carrie Broussard Assistant Secretary FISCAL AND ECONOMIC IMPACT STATEMENT FOR ADMINISTRATIVE RULES RULE TITLE: Louisiana Cultural Districts Program I.ESTIMATED IMPLEMENTATION COSTS (SAVINGS) TO STATE OR LOCAL GOVERNMENT UNITS (Summary) There are no anticipated costs or savings to the Louisiana Department of Culture, Recreation, and Tourism (CRT), other than the cost to promulgate the proposed rule change. There is no anticipated cost or savings to other state agencies or local governmental units as a result of the proposed rule change. The proposed rule change repeals LAC Title 25, Part I, Chapter 11, Section 1113, which governs the sales and use tax exemption formerly administered by the Louisiana Office of Cultural Development. Act 11 of the 2024 Third Extraordinary Session repealed, effective January 1, 2025, the state and local sales and use tax exemption for original, one-of-a-kind works of art sold from established locations within cultural districts. The proposed rule change amends LAC Title 25, Part I, Chapter 11, sections 1101, 1103, 1107, 1111, 1115, and 1117 to clarify language regarding procedures for recertification of a cultural district. The proposed rule change amends LAC Title 25, Part I, Chapter 11, sections 1111 and 1119 to provide updated information on rules for reporting if a district is nonreporting for three consecutive years, rules for recertification, and how state commercial tax credit application periods relate to decertification. II.ESTIMATED EFFECT ON REVENUE COLLECTIONS OF STATE OR LOCAL GOVERNMENTAL UNITS (Summary) The proposed rule change is not anticipated to have an independent fiscal impact on state or local governmental revenues. It conforms CRT's administrative rules to Act 11 of the 2024 Third Extraordinary Session, which repealed the sales and use tax exemption for qualifying original works of art sold in cultural districts, effective January 1, 2025. III.ESTIMATED COSTS AND/OR ECONOMIC BENEFITS TO DIRECTLY AFFECTED PERSONS, SMALL BUSINESSES, OR NONGOVERNMENTAL GROUPS (Summary) There are no anticipated costs or economic benefits to directly affected persons, small businesses, or non-governmental groups as a result of the proposed rule change. IV.ESTIMATED EFFECT ON COMPETITION AND EMPLOYMENT (Summary) The proposed rule change is not anticipated to impact competition or employment in either the public or private sectors. Nancy WatkinsPatrice Thomas UndersecretaryDeputy Fiscal Officer 2609#025Legislative Fiscal Office