Plain English Breakdown
The bill summary and digest text do not provide specific details about what happens after a nonprofit entity regains good standing with the secretary of state.
Economic Development Districts and Nonprofit Entities
This act changes the rules for nonprofit entities that appoint members to boards of commissioners for economic development districts in large cities.
What This Bill Does
- Enacts a new law about economic development districts located in municipalities with more than 300,000 people based on the latest federal decennial census.
- Forbids nonprofits from appointing board members if they have not been in good standing with the secretary of state for three consecutive years.
- States that even if a nonprofit entity becomes compliant later, it still cannot appoint board members for at least two years.
Who It Names or Affects
- Nonprofit entities in Louisiana
- Economic development districts located in large cities
Terms To Know
- economic development district
- A special area set up to help businesses grow and create jobs.
- nonprofit entity
- An organization that does not make money for its leaders or members, but works for a cause like helping the community.
Limits and Unknowns
- The bill only affects nonprofits in municipalities with more than 300,000 people based on the latest federal decennial census.
- It is unclear what happens if a nonprofit that lost its right to appoint board members wants to regain this ability after two years.