Opinion ID: 1132351
Heading Depth: 2
Heading Rank: 2

Heading: Whether the Legislature Intended the EEIDD to Participate in the State Civil Service System

Text: We acknowledge the legislature possesses the power to designate a political subdivision to be an instrumentality of the state, and thus subject to civil service regulation, no matter how local or autonomous the entity might be. LA. CONST. art. X, § 15. [6] In finding EEIDD to be an instrumentality of state, both lower courts relied primarily on the language contained in LA.REV.STAT. ANN. § 33:130.354. Entitled Governmental Functions, EEIDD's enabling legislation reads, in part: The exercise by the board of the powers conferred by this Subpart shall be deemed and held to be essential governmental functions of the state. As the exercise of the powers granted hereby will be in all respects for the benefit of the people of the state, for the increase of their commerce and prosperity, and for the improvement of their health and living conditions, the district shall not be required to pay any taxes, including, but not limited to, sales and use taxes, ad valorem, occupational licencing, income, or any other taxes of any kind or nature.... (emphasis added). Admittedly, phrases such as essential governmental functions of the state and for the benefit of the people of the state could be construed to imply a legislative intent for EEIDD to be considered a state instrumentality. However, we are more persuaded by the legislature's omission of an express declaration that EEIDD shall be considered an instrumentality of the state. Indeed, we have found numerous instances where the legislature has explicitly declared an entity to an instrumentality of the state, often using identical language. Consider for example: (1) Louisiana Stadium and Exposition District (LA. CONST.1921, art. XIV, § 47, continued as a statute by LA. CONST. Art. XIV, § 16(A)(10)) (emphasis added) The District shall constitute an instrumentality of the state of Louisiana exercising public and essential governmental functions, and the exercise by the District of the powers conferred herein shall be deemed and held to be essential governmental functions of the state of Louisiana. As the exercise of the powers granted hereby will be in all respects for the benefit of the people of the State ... the District shall not be required to any taxes or assessments ... (2) Red River Waterway District (LA. REV.STAT.ANN. § 34:2308) (emphasis added) The commission shall constitute an instrumentality of the State of Louisiana exercising public and essential governmental functions; and the exercise by the commission of the powers conferred by this Chapter in the establishment, operation and maintenance of the waterway and the acquisition, construction, operation and maintenance of the various port and related facilities hereinafter authorized shall be deemed and held to be essential governmental functions of the state of Louisiana. As the exercise of the powers granted hereby will be in all respects for the benefit of the people of the state, for the increase of their commerce and prosperity, and for the improvement of their health and living conditions, the commission shall not be required to pay any taxes or assessments.... (3) Iatt Lake Water Conservation District (LA.REV.STAT.ANN. § 38:3085.4) (emphasis added) The board shall constitute an instrumentality of the state of Louisiana, exercising public and essential governmental functions. The exercise by the board of the powers conferred by the Part shall be deemed to be essential governmental functions of the state. Because the exercise of the powers granted hereby will be in all respects for the benefit of the people of the state ... the board shall not be required to pay any taxes or assessments... [7] Because of the weighty consequences that arise when the legislature includes the term of art, instrumentality of the state, i.e., an entity is required to participate in the state personnel management bureaucracy, it is unreasonable to assume our legislature overlooked it, when they made their intent proof positive in the statutes outlined above. See, e.g., Aultman v. Entergy Corp., 98-2244 (La.App. 1 Cir. 11/5/99), 747 So.2d 1151, 1155 (Had the legislature intended to adopt the requirements of the OWBPA, it would have unequivocally set forth those requirements as part of the state statute.). Accordingly, we find the terms essential governmental functions of the state and for the benefit of the people of the state do not necessarily reflect the legislature's intent to subject EEIDD to the State Civil Service Commission. As further convincing support for this finding, we note with significance that the legislature expressly declared the EEIDD, through its board of commissioners, shall have the power to organize and reorganize the executive, administrative, clerical and other departments and forces of the district, and to fix the duties, powers, and compensation of all employees, agents, and consultants of the district. LA.REV.STAT. ANN. § 33:130.353(F) (emphasis added). Had the legislature intended EEIDD to be a state instrumentality, or more specifically, subject to the state civil service regulations, they would have created an impossibility as employee compensation and job classification are governed exclusively by the Civil Service Commission. [8] LA. CONST. art. X(A)(1) ([the state civil service commission] is vested with the broad and general rulemaking and subpoena powers of the administration and regulation of the classified service, including the power to adopt rules for regulating employment, promotion, demotion, suspension, reduction in pay, removal ... employment conditions, compensation and disbursements to employees....). See also Louisiana Dep't. of Agriculture and Forestry v. Sumrall, 98-C-1587 (La.1999), 728 So.2d 1254,1261.