Provides for uniform procedure for the creation of college economic development districts for any college or university in any municipality or parish. (gov sig)

SB 374 enacts Chapter 51 of Title 33 of the Louisiana Revised Statutes, creating a uniform statewide procedure for establishing college economic development districts associated with institutions in the University of Louisiana System. The legislation creates a framework whereby municipal or parish governing authorities may adopt ordinances establishing special taxing districts within their jurisdictions that are coterminous with University of Louisiana System property. These districts are classified as political subdivisions of the state and may exercise broad powers including the authority to levy ad valorem taxes up to five mills, sales taxes up to two percent, and hotel occupancy taxes up to two percent, all subject to voter approval unless no qualified electors exist in the district. The districts may also utilize tax increment financing mechanisms, incur debt through revenue bonds, create special assessments on property, and establish subdistricts with identical powers. Significantly, the legislation prohibits any district from levying taxes, assessments, or fees on property used or operated for industrial purposes.

University of Louisiana System institutions and their associated boards of commissioners will be directly affected as the legislation requires each district to be governed by a five-member board comprised of the institution's highest executive officer serving as chairman and four persons appointed by that officer, with at least two members representing businesses within the district. Local governing authorities in municipalities and parishes where University of Louisiana System institutions are located will gain the authority to create these districts through ordinance, though doing so requires compliance with specified procedures for tax levies, including public notice requirements and either voter approval or approval by the local governing authority when no qualified electors reside in the district. Property owners within these districts may face new tax obligations and special assessments, with the exception of those operating industrial facilities. The legislation also permits the districts to enter into contracts with private foundations and nonprofit corporations affiliated with colleges.

This legislation operates within the existing framework of economic development districts established under R.S. 33:9038.29, 9038.33, and 9038.34, incorporating by reference the powers granted to college economic development districts and community development districts under those provisions. The bill specifically addresses constitutional constraints by providing that sales and use taxes levied under this statute may exceed the limitation set forth in Article VI, Section 29(A) of the Louisiana Constitution. The districts operate as political subdivisions with the rights, powers, privileges, and immunities afforded to such entities under Louisiana law, subject to the specific limitations enumerated in the statute. The districts must use the official journal of the parish where the board's domicile is located for publication of notices. Each district shall dissolve upon the later occurrence of either one year after all district debt is paid or fifty years from creation, establishing a definite temporal framework for the districts' existence.