House Bill No. 822, introduced by Representative Newell, aims to regulate the appointment of members to the board of commissioners of economic development districts in municipalities with populations exceeding 300,000. The bill enacts a new provision, R.S. 33:2740.70.11, which stipulates that a nonprofit entity authorized to appoint board members will lose this authority if it is not in good standing with the secretary of state. This forfeiture of appointment rights will last for a minimum of two years, even if the nonprofit entity takes steps to regain good standing during that period.

The bill emphasizes accountability for nonprofit entities involved in economic development, ensuring that only those in good standing can participate in the governance of these districts. The House amendments further clarify that the two-year ineligibility period applies regardless of any actions taken by the nonprofit to restore its status with the secretary of state within that timeframe. This legislation seeks to enhance the integrity of the appointment process for economic development boards in larger municipalities.