ON APRIL 22, 2024, THE SENATE ADOPTED AMENDMENTS #1 AND #2 AND PASSED SENATE BILL 2968, AS AMENDED.
AMENDMENT #1 makes the following changes:
(1) Vests the East Bank development authority ("authority") with the power to acquire, whether by purchase, exchange, gift, or lease, and develop, improve, maintain, equip, and furnish one or more projects, including all real and personal property that the authority's board of directors ("board") may deem necessary in connection with the project, regardless of whether or not such projects are then in existence;
(2) Vests the authority with the power to procure the delivery of goods and services in such manner as the board must direct; however, the procurement must be conducted in a manner consistent with the powers of the authority as prescribed in the bill;
(3) Vests the authority, subject to the approval of the metropolitan council of the metropolitan government, with the power to serve as a district management corporation in the manner contemplated by the Central Business Improvement District Act; however, the metropolitan government must not delegate any law enforcement powers to the authority;
(4) Vests the authority with the power to do and perform each and every act and things and have an exercise the powers set forth in the bill that the board, in the board's sole discretion, deems necessary, convenient, or appropriate, to accomplish the purposes of the bill. The inclusion of a specific power in the bill does not limit the broad general powers granted to the authority. The exercise of the authority's powers, including the powers with respect to the disposition, development, encumbrance, lease, sublease, or improvement of property, are exclusive and are not subject to further approval, except as expressly provided in the bill;
(5) Requires that the authority be governed by a board of directors, the members of which must reflect a broad range of skills and backgrounds necessary to supervise and carry out the work of the authority, including, without limitation, law, commerce, and community development. The board must consist of nine voting members, each of whom must, by virtue of his or her appointment to membership on the board, be a county and public officer of the metropolitan government carrying out a county purpose, as follows: (i) five members to be appointed by the mayor of the metropolitan government; (ii) two members to be appointed by the metropolitan council of the metropolitan government; and (iii) the commissioner of economic and community development and the commissioner of tourism as ex officio voting members of the board;
(6) Except as set forth in the bill for the initial terms of the members of the board, establishes that the term for a board member is four years, commencing on July 1 and ending on June 30. An appointed board member is eligible for reappointment and may serve a maximum of two full terms, in addition to the initial term; however, an appointment to fill an unexpired term as a result of a vacancy does not constitute a full term. At the expiration of a board member's term, the member may continue to serve until a successor is appointed or until the member is reappointed;
(7) Establishes that five voting board members constitute a quorum for the transaction of business;
(8) Authorizes an appointed board member who is absent from three consecutive meetings to be removed from the board by a majority vote of the board. The mayor may remove a board member appointed by the mayor for cause and the metropolitan council may remove a board member appointed by the metropolitan council for cause;
(9) Grants the authority the power to borrow money and issue bonds, notes, or other debt obligations consistent with the powers of the authority as prescribed in the bill;
(10) Establishes that the metropolitan government is not liable for the payment of the principal of or interest on any bonds of the authority or for the performance of any pledge, mortgage, obligation, or agreement that may be undertaken by the authority. The bonds, agreements, and obligations of the authority must not be construed to constitute an indebtedness of the metropolitan government within the meaning of state law or local ordinance or resolution;
(11) In the event that the board fails or refuses to have the required annual audit of the books and records of the authority prepared, requires the comptroller of the treasury to appoint a certified public accountant or direct the department of audit to prepare the audit, and the cost of such audit must be paid by the authority; and
(12) Prohibits the authority from condemning or exercising the power of eminent domain over any real property located within the East Bank or otherwise. The bill must not be deemed to vest the authority with the power to condemn or exercise eminent domain over real property located within the East Bank or otherwise.
AMENDMENT #2 requires the board of directors governing the East Bank Development Authority to have as members, among others, the speaker of the senate and the speaker of the house of representatives or their designees as ex officio voting members of the board, instead of the commissioners of economic and community development, and tourism.