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Summary of Legislation
Passed in the First Extraordinary Session of 2002
Enticements for the Saints and the Hornets
Act 73 (HB 46) changes the dedications of the revenues from
a one-percent hotel occupancy levied in Orleans Parish.
- This legislation redirects the one percent hotel occupancy
tax levied in Orleans Parish that is currently credited to the
New Orleans Area Tourism and Economic Development Fund, which
provides $3.3 million to nine specific tourism and economic
development agencies in Orleans Parish and the remainder to a
legislative grant program administered by the La. Stadium and
Exposition District (LSED).
- The bill redirects the first $2 million of these collections
to the Ernest N. Morial Convention Center Phase IV Expansion
Project Fund for construction of the proposed Phase IV of the
Morial Convention Center. The remaining funds will be credited
to the New Orleans Sports Franchise Fund, administered by the
LSED, to fund contractual obligations of the state relative to
any National Football League or National Basketball
Association franchise located in Orleans Parish.
- The bill further provides that an amount not to exceed $1.75
million will be transferred to the State General Fund from any
unexpended balance from the sports fund for Hornets
transitional and relocation expenses. Any funds remaining
would then be provided to the New Orleans Area Tourism and
Economic Development Fund.
- The legislation prohibits the appropriation of state general
funds for any of the purposes covered by Act 73. In order to
provide funding for anticipated current year expenditures
associated with Saints and Hornets contractual obligations,
the bill provides several sources of funds. These sources
include the funds collected that would otherwise be provided
to the legislative grant program (estimated at $2.5 million),
any surplus or carry forward funds ($2.3 million likely
derived from the Superdome Renewal and Replacement Fund), and
the remainder of unencumbered grant funds from previous fiscal
years ($5.3 million).
Act 152 (HB 103) provides for supplemental appropriations
for the 2001-2002 Fiscal Year.
- This Act provides a supplemental appropriation of $1.75
million in State General Fund for FY02 to the Office of
Business Development within the Department of Economic
Development to reimburse the Charlotte Hornets for their NBA
application fee and for transitional and relocation expenses
incurred in relocating the franchise to New Orleans. The bill
provides for reimbursement to the State General Fund from the
first $1.75 million deposited to the New Orleans Area Tourism
and Economic Development Fund. Should the Charlotte Hornets
fail to gain NBA approval of the relocation to New Orleans,
this appropriation shall be null and void.
Act 153 (HB 144) revises the quality jobs program.
- This legislation expands, with respect to eligibility and
benefits, the Quality Jobs Program administered by the La.
Department of Economic Development. The bill restructures the
program to align eligibility with certain Vision 2020 cluster
industries including medical and biomedical;
micro-manufacturing, software, auto regulation, internet and
telecommunication technologies; environmental technologies,
food technologies; and materials.
- The bill reduces the eligibility requirement for gross
payroll for new jobs from $1 million to $250,000 for a minimum
of five new direct jobs after three years. Other general
aspects of the program include employer payment of 75% of the
total premium for health insurance coverage, pay 1.5 times the
federal minimum hourly wage for a 5% benefit rate, pay 2 times
the federal minimum hourly wage for a benefit rate of 6%, must
create jobs in a distressed region (parish in lowest quarter
of all parishes based on per capita income or in a census
tract group below the state median per capita income), the
distressed region designation is maintained for the period of
the initial quality jobs contract, the employer be categorized
in a traditional or seed cluster.
- With respect to the Hornets memorandum of understanding,
this legislation expands eligibility to include as a
qualifying entity a National Basketball Association Team which
relocates to Louisiana prior to November 1, 2003. A quality
jobs program contract with such teams shall limit the total
tax rebate to $3.65 million in any given year; shall not
include the salary of an owner with greater than twenty-five
percent interest, may be renewed for five years; shall be
awarded with no more than a net benefit rate of five percent;
and shall allow players and coaches to be nonresidents of the
state.
Act 164 (HB 67) amends 2001 Capital Outlay Act to add
projects for NBA upgrades to the New Orleans Arena and for
construction of an indoor football practice facility for the New
Orleans Saints.
- This bill amends the current fiscal year Capital Outlay Act
to appropriate to the Louisiana Stadium and Exposition
District for projects related to possible Hornets and Saints
contractual obligations. The bill provides $10 million in
non-recurring State General Fund for planning and construction
of NBA upgrades to the New Orleans Arena. The bill provides
$6.75 million for the New Orleans Saints Training Facility for
planning and construction of an indoor football practice
facility for the New Orleans Saints, related facilities and
equipment.
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