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HB 822

DISTRICTS/ECONOMIC DEVEL: Provides relative to nonprofit entities that appoint members to the board of commissioners of certain economic development districts

2026 Regular Session Introduced by Candace Newell

HB 822 imposes a two-year minimum forfeiture of nonprofit appointment authority to economic development district boards in large Louisiana cities if the entity is not in good stand

Effective date: 08/01/2026.
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Bill Summary · HB 822

HB 822 (2026) – Louisiana: Districts/Economic Development – Appointments by Nonprofit Entities

Purpose and Intent

  • The bill restricts the ability of certain nonprofit entities to appoint members to the board of commissioners of economic development districts located in large municipalities.
  • Specifically targets districts within municipalities with populations exceeding 300,000 persons.

Key Provisions and Changes

  • Adds a new statute: R.S. 33:2740.70.11.
  • Provision: A nonprofit entity that is authorized to appoint one or more members to the board of commissioners of an economic development district located in a municipality with a population over 300,000 shall forfeit its authority to make such appointments if that nonprofit is not in good standing with the Louisiana Secretary of State.
  • Enforcement detail (as amended): If a nonprofit forfeits its appointment authority due to lack of good standing, the forfeiture shall exist for a minimum period of two years. This two-year period applies even if the nonprofit later takes actions to regain good standing with the secretary of state.

Geographic and Institutional Scope

  • Applies to economic development districts that are located in large municipalities (pop. > 300,000).
  • Applies specifically to nonprofit entities that currently have the authority to appoint board members to these districts.

Who/What is Affected

  • Nonprofit entities with appointment authority to boards of economic development districts in large municipalities.
  • The boards/commissioners of those economic development districts, insofar as their appointment process can be forfeited.
  • The Secretary of State, as the body determining “good standing” status and enforcing the forfeiture period.

Procedural and Timeline Aspects

  • Effective mechanism: Forfeiture of appointment authority if nonprofit is not in good standing with the Secretary of State.
  • Forfeiture duration: Mandatory minimum of two years, even if the nonprofit subsequently becomes compliant.
  • The bill’s amendments were added during House floor consideration to ensure the two-year ineligibility remains in place.

Amendments and Legislative History (Summary)

  • Original bill: Would remove appointment authority from certain nonprofit entities for large municipalities, tied to good standing.
  • House Floor Amendments: Explicitly require a two-year minimum forfeiture period, even if good standing is regained within that period.
  • Status: Passed the House (final passage on 2026-04-15) and moved to the Senate. Co-sponsor: Candace Newell.

Practical Implications

  • Increases accountability of nonprofit appointment authorities by tying eligibility to good standing with the Secretary of State.
  • Introduces a defined, enforceable punishment period (two years) for loss of appointment rights, potentially affecting how districts recruit or retain qualified appointees.
  • May shift appointment dynamics and governance for economic development districts in largest Louisiana cities, depending on which nonprofits hold appointment authority and their standing with the state.

Summary

HB 822 would deny appointment authority to nonprofit entities not in good standing with the Secretary of State for economic development districts in municipalities with populations over 300,000, with a minimum two-year forfeiture period even if the entity regains good standing during that time. The measure aims to strengthen governance and accountability for major economic development districts.

Compiled from official sources — confirm details with the bill’s official record.

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