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Senate committee advances bill letting industrial areas contract for utilities, explicitly names data centers

April 23, 2025 | Commerce, HOUSE OF REPRESENTATIVES, Committees, Legislative, Louisiana


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Senate committee advances bill letting industrial areas contract for utilities, explicitly names data centers
Senate Commerce Committee Chairwoman Mizell reported SB 79 favorably after a brief presentation and questions on April 23.

Sen. Jeremy Bass introduced SB 79, saying the bill updates the definition of industrial purpose to explicitly include construction and operation of data centers and expands cooperative endeavor agreements so industries in industrial areas can contract not only with their host parish or municipality but also with other municipalities, political subdivisions, or private entities. "This provision ensures that industries can secure necessary services and facilities even if the municipality is unable or unwilling to provide them," Bass said.

The bill also requires that industrial areas provide public road access to all plant entrances used by employees, contractors, or for delivery of materials. Bass told the committee the bill is intended to give companies long‑term certainty on land use and access to services so they can expand in Louisiana; it also would allow, for example, a data center to buy water from a nearby municipality rather than build its own system.

Susan Bourgeois, Secretary of Louisiana Economic Development, said the proposal is optional for municipalities and private parties — it "puts another tool in our toolbox" for negotiating deals and recruiting industries. "It's a may not shall," Bourgeois said, stressing that the measure is intended to be permissive and to preserve services for existing residents.

Committee members asked whether the measure covers utilities beyond water, including gas and electric. Bass said the bill would allow agreements where a municipality owns electric service, though he was not aware of municipalities that own gas utilities.

Support was registered on green cards from several economic development groups and chambers; a number of supporters were present but did not speak. Senator Cathy moved SB 79 favorable; Chairwoman Mizell said she saw no objection and the committee reported the bill favorably without a recorded roll‑call vote.

The bill text requires cooperative endeavor agreements to safeguard existing obligations of parishes, municipalities, or political subdivisions to their residents, and it explicitly references modern industrial facilities, such as data centers, as within the industrial purpose definition. The committee did not attach a fiscal note or additional appropriations to SB 79 during the hearing.

The committee's action moves SB 79 to the next legislative step as amended in committee; no committee vote tally was recorded in the transcript.

Votes at a glance: SB 79 — Motion to report favorable made by Senator Cathy; reported favorable by unanimous consent/no objection (roll call not recorded).

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Scribe from Workplace AI
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