Committee allows optional use of East Baton Rouge convention fund for operations; hoteliers warn against diversion
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Summary
SB 423 was reported favorably with amendments after proponents said the bill merely adds 'and operations' to permitted uses of the East Baton Rouge Parish Riverside Centraplex fund; hotel industry witnesses warned the change could erode capital funding dedicated to the River Center.
Senator Boyle introduced SB 423 to allow East Baton Rouge Parish to use certain existing hotel occupancy tax funds for operations, not just capital improvements, and the Senate Finance Committee reported the bill favorably with amendments.
Senator Boyle told the committee the fund — already established to support the Riverside Centraplex and related riverfront development projects — would remain in place and the bill only provides local officials with more flexibility on eligible expenditures. He said the change is aimed at helping local institutions during fiscal strain.
Karen Sonniat, introduced by the sponsor as representing the Louisiana Art and Science Museum, clarified that the statute directs funds to East Baton Rouge Parish and that LASM has not historically received direct allocations from the fund. She described the museum’s history and said the bill does not require the parish to send money to the museum.
Hotel industry representatives spoke in opposition. Amanda Acosta, general manager of the Watermark Hotel and president of the Baton Rouge Lodging Association, urged senators to preserve the original dedication of the funds to the River Center and warned that redirecting funds would “betray the intent” of the public and business supporters who approved the funding mechanism. Ralph Ney, general manager of the Baton Rouge Marriott, told the committee capital and operating expenses should remain distinct and cautioned that allowing operations spending could deplete capital resources for major projects.
Senator Boyle and supporters responded that the bill does not force reallocation; it only permits the parish to consider operations as an eligible use if it chooses. After discussion, the committee moved to report the bill favorably with amendments.
The committee did not record a formal roll‑call tally in the transcript; the chair announced the motion carried and the bill will be reported favorably.
