LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 481 SLS 24RS 93
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 28, 2024 8:30 PM Author: BOUDREAUX
Dept./Agy.: Lafayette economic development district
Subject: Authorizes an EDD on land owned by UL Lafayette Analyst: Deborah Vivien
SPECIAL DISTRICTS EN SEE FISC NOTE LF RV See Note Page 1 of 1
Provides for the University of Louisiana at Lafayette Economic Development District. (8/1/24)
Proposed law authorizes the creation of a cooperative economic development district or subdistricts for University of
Louisiana - Lafayette (ULL) on land owned or purchased by ULL as a political subdivisions of the state. The district, with a 5-
member board chaired by the ULL President who also appoints the remaining members, shall have all powers of a political
subdivision including to contract, incur debt, levy taxes (ad valorem tax up to 4 mils, sales tax up to 2%, hotel occupancy
tax up to 2%), regulate fees/rental charges and levy special assessments within the district, and acquire property, all
without further local, state or voter approval. Local tax increment financing including hotel occupancy tax is authorized. The
district will develop public improvement projects for the benefit of ULL either through the college or an affiliated private
foundation or non-profit. Taxes levied by the Board may exceed the 3% constitutional local sales tax limitation. Primary
residences are excluded from the district; hotels are included. The district authorization appears to be in effect indefinitely.
The legal description of the district boundaries are included in the bill.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Annual Total
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure. There is no mandate
for LDR to collect taxes or fees on behalf of the new district, should new taxes or fees be authorized. There are no other
collection procedures stipulated in the bill. Thus, it is assumed that the new district will collect all fees, taxes, millages or
other assessments that are approved by the board and incur costs accordingly.
Should debt be incurred by the EDD, which is authorized in the bill, it is assumed the district would increase expenditures for
debt service.
REVENUE EXPLANATION
To the extent the district levies taxes, fees, assessments or TIF funding that are authorized but not mandated in the bill,
local (EDD) revenue would increase. The bill allows the district to be the recipient of TIF funding utilizing existing City of
Lafayette revenue streams but would presumably require local additional approvals before finalization.
New fees, assessments, taxes, etc., will not require local, state or voter approval (only board approval) but do have 30-day
publication and notification requirements. Subsequent legal challenges are not allowed unless a claim is made during the
publication timeframe. State Bond Commission approval will be required if any bonds are sold.
In the bill’s current form, it is not clear to the LFO if these assessments, taxes or fees may be interpreted to include tuition
or other academic fees on services or facilities that fall within the EDD boundaries, which may be limited in other areas of
law. The bill would apparently be considered approval to exceed the 3% constitutional limit on local sales tax rates.
The exact district boundaries are not clear as the legal descriptions are voluminous, and a map was not available at the time
of publication of this note. Properties for residential use are excluded from the district leaving no voters within the district.
Hotels, motels, inns and bed and breakfasts are included in the district.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Alan M. Boxberger
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Legislative Fiscal Officer