The original instrument was prepared by James Benton. The following digest, which
does not constitute a part of the legislative instrument, was prepared by Jerry G.
Jones.
DIGEST
SB 459 Reengrossed 2020 Regular Session Reese
Proposed law creates the Vernon Parish Development District (district) as a body politic and political
subdivision of the state of Louisiana. Provides that the district, acting through its board of
commissioners, the governing authority of the district, is granted all of the rights, powers, privileges,
and immunities granted to political subdivisions for economic and industrial development purposes,
including but not limited to the power of taxation, the power to incur debt and issue revenue and
general obligation bonds.
Proposed law provides that the district is established for the primary object and purpose of promoting
and encouraging the development of economic and industrial opportunities, stimulating the economy
through renewed commerce and industry, and for the utilization and development of natural and
human resources of the area by providing job opportunities.
Proposed law provides that the boundaries of the district will be coterminous with the boundaries
of Vernon Parish.
Proposed law provides that the district will be governed by a board of commissioners consisting of
nine members selected as provided for in proposed law. All members shall be qualified voters and
taxpayers within the limits of the district during their term of office.
Proposed law provides that the district, acting by and through its board of commissioners, shall have
and exercise all powers of a political subdivision necessary or convenient for the carrying out of its
objects and purposes, including but not limited to:
(1) To sue and be sued.
(2) To adopt, use, and alter at will a corporate seal.
(3) To acquire by gift, grant, or purchase, any property, including rights of way; to hold and use
any franchise or property, real, personal, or mixed, tangible or intangible, or any interest
therein, necessary or desirable for carrying out the objects and purposes of the district,
including but not limited to the establishment, maintenance, and operation of industrial
parks, ports, harbors, and terminals.
(4) To enter into contracts for the purchase, acquisition, construction, and improvement of works
and facilities necessary in connection with the purposes of the district.
(5) In its own name and on its own behalf to incur debt and to issue general obligation bonds,
revenue bonds, certificates, notes, and other evidences of indebtedness and to levy and cause
to be collected certain taxes.
(6) To require and issue licenses with respect to its properties and facilities.
(7) To regulate the imposition of fees and rentals charged by the district for its facilities and
services rendered by it.
(8) To borrow money and pledge all or part of its revenues, leases, rents, or other advantages as
security for such loans.
(9) To appoint officers, agents, and employees, prescribe their duties, and fix their
compensation.
(10) To engage in public relations, advertising, marketing activities, and to provide and
disseminate information.
(11) To engage in government relations, ombudsman activities, and government liaison.
(12) To provide financial and financing assistance.
(13) To provide tax abatement.
(14) To provide, directly or indirectly, planning and coordination for economic development and
resource utilization, including such functions as industrial and economic research and
industrial programming and solicitation.
(15) To provide industrial training, technical assistance, and technology transfer.
(16) To use public and other legal powers to facilitate development.
(17) To promote transfer mechanisms to take ideas, from their point of origin or development, to
commercially successful utilization by local enterprises.
(18) To foster entrepreneurial activities in Vernon Parish or in the region.
(19) To promote the development of new products, processes, or services or new uses for existing
products, processes, or services manufactured, produced or marketed in Vernon Parish or in
the region.
(20) To support market research aimed at identifying new markets for local or regional products
and processes, including international markets; to determine the characteristics, needs and
preferences of those markets; and to develop new marketing techniques to exploit those
markets.
(21) To foster and support economic and industrial development and education in cooperation
with private business enterprises, financial institutions, educational institutions, nonprofit
institutions and organizations, state government and political subdivisions of the state, the
federal government, and other organizations or persons concerned with research,
development, education, commercial application, and economic or industrial development
in ways that increase the economic base of Vernon Parish or of the region.
(22) The governing authority of the district may enter a cooperative endeavor agreement with the
Vernon Parish Economic Development Foundation or any successor thereof, or the Vernon
Parish government or any other eligible entity pursuant to applicable laws to achieve any of
the lawful purposes of the district.
(23) For purposes enumerated in proposed law and in order to achieve any of the lawful purposes
of the district, the district may engage in whatever activities and projects it deems most
appropriate to encourage and to assist economic growth and development.
Proposed law provides that the district shall have the power to construct, acquire, finance, or lease
facilities, including sites or facilities for industrial, business or commercial parks and plants, and
including the acquisition of sites and facilities and other necessary property or appurtenances thereto
within or outside the district, and to acquire, construct, improve, operate, maintain, and provide
improvements and services necessary therefor, including but not limited to roads, street lighting,
bridges, rail facilities, drainage, sewage disposal facilities, solid waste disposal facilities,
waterworks, and other utilities and related properties. However, in connection with any projects
outside the geographic boundaries of the district, the district must make a determination that such
development provides a substantial benefit to the district, the region or to business and industry of
persons located within the geographic boundaries of the district or region.
Proposed law provides that the district will also have the authority to sell, lease, or otherwise dispose
of, by suitable and appropriate contract, to any enterprise locating or existing within the district all
or any part of a site, building, or other property owned by the district. In determining the
consideration for any contract to lease, sell, or otherwise dispose of lands, buildings, or other
property of the district, the board of commissioners may take into consideration the value of the
lands, buildings, or other properties involved as well as the potential value of the economic impact
of the enterprise being induced to locate or expand within the district. Such economic impact shall
include increased employment, increased use of local labor, wages and salaries to be paid,
consumption of local materials, products, and resources, and special tax revenues to be generated
by the enterprise acquiring or leasing lands, buildings, or other property from the district. The district
shall be empowered to enter into leases.
Proposed law provides that the board of commissioners may, when necessary, levy annually an ad
valorem tax, provided that the amount, term, and purpose of the tax, as set out in a proposition
submitted to a vote in accordance with the Louisiana Election Code, is approved by a majority of the
qualified electors voting in a special election held for that purpose.
Proposed law provides that the board of commissioners may, subject to approval of a majority of the
electors voting at an election held for the purpose, levy and collect a sales and use tax within the
boundaries of the district for such purposes and at such rate as provided by the proposition
authorizing its levy, not exceeding one percent, which tax may exceed the limitation set forth in the
Constitution of Louisiana.
Proposed law provides that the tax will be levied upon the sale at retail, the use, the lease or rental,
the consumption, the distribution and storage for use or consumption of tangible personal property,
and upon the sales of services within the district, all as presently defined in present law.
Proposed law provides that the district will have authority to incur debt for any one or more of its
lawful purposes set forth in proposed law, to issue in its name negotiable bonds, notes, certificates
of indebtedness, or other evidences of debt and to provide for the security and payment thereof.
Proposed law provides that the district may in its own name and behalf incur debt and issue general
obligation ad valorem property tax secured bonds when approved by a majority of the qualified
voters who vote in a special election called and conducted under the authority of the Louisiana
Election Code. General obligation bonds of the district may be issued for any of the purposes for
which the district is created or is authorized to act under any provisions of this Subpart all of which
purposes are hereby found and declared to be public purposes and functions of the state of Louisiana,
which are delegated to the district.
Proposed law provides that the district may in its own name and behalf issue revenue bonds for the
purposes for which the district is created or is authorized to act, including improvement revenue
bonds.
Proposed law provides that Revenue bonds may be issued by the district to accomplish any of the
authorized public functions or purposes set in proposed law. All such bonds are negotiable
instruments and shall be solely the obligations of the district. Such bonds shall be authorized and
issued by resolution adopted by a majority vote of the board of commissioners of the district and are
of such series, bear such date or dates, mature at such time or times, bear interest at such rate or rates,
be in such denominations, be in such form, either coupon or fully registered without coupons, carry
such registration and exchangeability privileges, be payable at such place or places, be subject to
such terms of redemption, and be entitled to such priorities on the income, revenue, and receipts of
the district as the resolution may provide. The bonds shall be signed by such officers as the district
shall determine, and such signatures may be by facsimile.
Proposed law provides that such bonds will be sold by the board of commissioners of the district in
such manner as may be determined by the district to be most beneficial to the district and the district
shall pay all expenses and commissions that it may deem necessary or advantageous in connection
with the issuance and sale of such bonds. Such bonds may, in the discretion of the district, be
additionally secured by a mortgage on all or any part of the projects acquired, constructed, extended,
or improved with the proceeds thereof, and the district shall have full discretion to make such
provisions as it may see fit for the making and enforcement of such mortgage and provisions to be
therein contained.
Proposed law provides that bonds, certificates, or other evidences of indebtedness issued by the
district are deemed to be securities of public entities, and shall be subject to defeasance, and may be
refunded, and may also be issued as short-term revenue notes of a public entity.
Proposed law provides that the district and all properties at any time owned by the district and the
income therefrom and all bonds, certificates, and other evidence of indebtedness issued by the
district under proposed law and the interest or income therefrom will be exempt from all taxation
by the state of Louisiana.
Proposed law provides that the district will be subject to the provisions of Louisiana laws pertaining
to open meetings, public records, fiscal agents, official journals, dual officeholding and employment,
public bidding for the purchase of supplies and materials, and construction of public works, the Code
of Governmental Ethics, the Right to Property and the Louisiana Election Code. Proposed law
provides an exception for the records in the custody of the district pertaining to an active negotiation
with a person for the purpose of retaining, expanding, or attracting economic or business
development in Vernon Parish which shall be confidential.
Proposed law provides that the district will have the power and right to adopt a program or programs
awarding contracts to, and establishing set-aside goals and preference procedures for the benefit of,
businesses owned and operated by socially or economically disadvantaged persons.
Proposed law provides that the financial records of the district shall be subjected to audit by the
legislative auditor.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 33:130.870-878)
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill
1. Removed authority to expropriate.
2. Technical.