PRIA Logo™
LouisianaSB 3742026 Regular SessionSenateWALLET

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

Sponsored By: Stewart Cathey Jr. (Republican)

Signed by Governor

Education

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 1 costs, 2 mixed.

State tax breaks for district investors

Bonds and other obligations issued by college economic development districts under this law are exempt from Louisiana state and local taxes. The exemption also covers their interest, income, and gains from sale. An investor's savings depend on their holdings and tax circumstances; the law sets no savings amount.

Industrial firms avoid college district taxes

Qualifying industrial firms and their contractually affiliated entities are exempt from district and subdistrict sales and use taxes. Their owned, used, or operated property is also exempt from district property taxes and fees. Covered work includes listed manufacturing, construction, processing, power generation, storage, wholesale distribution, and related purchasing or service activities. The industrial activity must occur within the district or subdistrict. The district or subdistrict must issue a certificate of exclusion under its adopted rules.

College districts can add local taxes

College districts and subdistricts can levy taxes or assessments, including sales and use taxes above Louisiana's constitutional limit. Before a levy, the board must adopt a resolution describing it and hold a public hearing. Notice must appear in the district's official journal once weekly for two weeks, starting at least 14 days before the hearing. Approval generally requires a majority of voters in a special election; if the voter registrar certifies no qualified voters, local government approval replaces the election. Voters living in an added area must approve a tax before collection starts there.

New development districts around Louisiana colleges

Louisiana municipalities and parishes can create college economic development districts by ordinance to support public improvements and related services. Boundaries must include college-owned property, follow subdivisions on an official plat filed with the parish clerk, and exclude residential property. Districts can create subdistricts, acquire property, charge fees, and borrow money; their debts are backed only by district revenues or pledged assets. Each district must close at the later of two dates: 50 years after creation or one year after all debt is repaid. That repayment rule includes refunding bonds.

College districts redirect growing tax revenues

Districts and subdistricts can receive designated sales and use tax revenue above the amount collected in the year before creation. Covered taxes include those on retail sales, rentals, storage, consumption, and services. Hotel occupancy and similar taxes count only when the district's governing board names the district as the recipient. This directs tax growth toward district projects and debt payments rather than other state or local uses. State sales tax funds provided through a state agreement cannot fund building or running a private hotel without legislative budget committee consent.

Sponsors & Cosponsors

Sponsor

  • Stewart Cathey Jr.

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 131 • No: 10

House vote • 5/18/2026

Read third time by title, roll called on final passage, yeas 85, nays 9. Finally passed, ordered to the Senate.

Yes: 85 • No: 9

House vote • 5/6/2026

Reported with amendments

Yes: 10 • No: 0

Senate vote • 4/15/2026

Senate floor amendments read and adopted. Read by title and passed by a vote of 36 yeas and 1 nays; ordered reengrossed and sent to the House. Motion to reconsider tabled.

Yes: 36 • No: 1

Actions Timeline

  1. Signed by the Governor. Becomes Act No. 499.

    5/29/2026Senate

  2. Effective date 5/29/2026.

    5/29/2026Senate

  3. Signed by the Speaker of the House.

    5/25/2026House

  4. Enrolled. Signed by the President of the Senate.

    5/21/2026Senate

  5. Sent to the Governor by the Secretary of the Senate.

    5/21/2026Senate

  6. Called from the calendar.

    5/18/2026House

  7. Read third time by title, roll called on final passage, yeas 85, nays 9. Finally passed, ordered to the Senate.

    5/18/2026House

  8. Received from the House with amendments.

    5/18/2026Senate

  9. Read by title, returned to the calendar.

    5/13/2026House

  10. Notice given.

    5/13/2026House

  11. Scheduled for floor debate on 05/18/2026.

    5/13/2026House

  12. Scheduled for floor debate on 05/13/2026.

    5/12/2026House

  13. Read by title, amended, passed to 3rd reading.

    5/11/2026House

  14. Reported without Legislative Bureau amendments.

    5/7/2026House

  15. Reported with amendments (10-0). Referred to the Legislative Bureau.

    5/6/2026House

  16. Read by title, under the rules, referred to the Committee on Education.

    4/21/2026House

  17. Received in the House from the Senate, read by title, lies over under the rules.

    4/20/2026House

  18. Senate floor amendments read and adopted. Read by title and passed by a vote of 36 yeas and 1 nays; ordered reengrossed and sent to the House. Motion to reconsider tabled.

    4/15/2026Senate

  19. Read by title. Ordered engrossed and passed to third reading and final passage.

    4/13/2026Senate

  20. Rules suspended. Reported favorably.

    4/8/2026Senate

  21. Introduced in the Senate; read by title. Rules suspended. Read second time and referred to the Committee on Education.

    3/9/2026Senate

  22. Prefiled and under the rules provisionally referred to the Committee on Education.

    2/27/2026Senate

Bill Text

Related Bills

Back to State Legislation