Bill
SB 374
Creates university-linked economic development districts with local ordinances, shared governance, and financing tools (taxes, debt) to boost campus-led development.
Author: Senator Cathey (gov sig)
Session: 2026
Jurisdiction: Louisiana
Purpose and intent
- Establish a statewide, uniform framework to create college economic development districts (CEDDs) associated with campuses within the University of Louisiana System.
- Facilitate cooperative economic and community development among the district, the corresponding college or university, local governments (municipality or parish), the state, and property owners within the district.
- Provide a discrete, legally defined mechanism to finance district initiatives through district-level powers, including debt issuance and targeted tax instruments, while ensuring local authority consent and accountability.
Key provisions and changes
1) Creation and boundaries
- Establishes the University of Louisiana System Economic Development District (the “district”) in which the University of Louisiana System operates.
- Districts are created by ordinance adopted by the appropriate local governing authority (municipality or parish). District boundaries are coterminous with one or more subdistricts within a parish and must not include residential property. Boundaries may be altered over time.
2) Governance
- The district is a political subdivision of the state.
- Board of commissioners (governing board):
- The highest executive officer (president) of the university serves on the board and acts as chair for as long as they hold that office.
- Four additional members appointed by the university’s president.
- At least two board members must be representatives from businesses located in the district.
- Terms: five years for most members; initial terms are set so two members begin with two-year terms and two with three-year terms (by lot). President serves for as long as they remain president.
- Vacancies filled in the same manner as initial appointments; interim appointments if vacancy not filled within 60 days.
- Removal for cause by a three-fourths vote of the board.
- No salary or per diem for board members; reimbursement of reasonable expenses allowed.
- Board officers: president, vice president, secretary, and treasurer (can be combined).
- Regular meetings at least annually; special sessions as needed; quorum is a majority; minutes and district records kept by district officers.
- Domicile and official journal aligned with the parish containing the district’s domicile.
3) Powers and authorities
- The district can exercise all powers necessary or convenient for its purposes, including:
- Sue and be sued; enter contracts; acquire property; develop works and facilities.
- Incur debt and issue various forms of indebtedness (e.g., revenue bonds, notes, certificates) and levy taxes or assessments as provided by law.
- Regulate fees and rentals; borrow money with revenues or other security; hire staff; oversee public improvement projects; and coordinate development with the college and affiliated foundations or nonprofits.
- Exercise powers similar to:
- College economic development districts (e.g., tax increment financing per applicable law).
- Community development districts (including authority to levy certain taxes).
- Create subdistricts with the same powers as the district.
4) Tax Increment Financing and taxes
- The district may levy and collect various taxes and assessments, subject to established procedures and voter approval where required.
- Tax-increment financing (TIF) provisions may apply, including designating increments from designated taxes (sales/use taxes, hotel occupancy taxes, etc.) for district and subdistrict uses.
- If a district expands into an area with qualified electors, taxes in that added area require approval by those electors.
- Districts and subdistricts cannot levy property taxes or fees on properties used or operated for industrial purposes as defined by the bill, protecting exempt entities.
5) Exempt entities
- Establishes exemptions for certain entities (industrial exemption) from sales/use taxes within the district and sets up certificates of exclusion for exempt entities.
6) Bonds and debt
- Districts may issue bonds or other obligations; provisions cover authorization, sale, security, and payment, including standard protections and state oversight (State Bond Commission).
7) Term and dissolution
- The district dissolves upon the later of:
- One year after all debts are paid in full, or
- 50 years from creation.
8) Effective date
- Effective upon the governor’s signature or a gubernatorial action lapse (as provided by law).
Who is affected
- University of Louisiana System campuses and their associated colleges.
- Local governing authorities (parishes/municipalities) where districts are established.
- Businesses and property owners within district boundaries.
- Exempt entities and industrial activities defined by the bill (certain industrial operations receive protections from district levies).
- Taxpayers in districts that pursue TIF-like arrangements (subject to voter approval and state law).
Procedural and timeline notes
- Creation requires an ordinance by the relevant local government.
- Board terms and governance detailed above, with initial staggered terms.
- Tax or assessment levies require appropriate resolutions, public notices, and potential voter approval, depending on the type and scope of tax.
- Dissolution timeline fixed at either debt payoff after up to 50 years, providing a finite lifespan for each district.
Overall assessment
- SB 374 creates a structured, state-wide protocol to establish university-centered economic development districts with defined governance, financing, and oversight. It emphasizes local control (through ordinance creation) and requires voter involvement for certain tax authorities, while enabling financial tools to support university-driven development initiatives.
Compiled from official sources — confirm details with the bill’s official record.
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